Niger - Public Works and Employment Project

Document of The World Bank FOR OFFICIAL USE ONLY Report No. 9032-NIR STAFF APPRAISAL REPORT REPUBLIC OF NIGER PUBLIC WORKS AND EMPLOYMENT PROJECT JANUARY 11, 1991 Infrastructure Operations Division Sahelian Department Africa Region This document has a restricted distribution and may be used by recipients only in the performance of their official duties. Its contents may not otherwise be disclosed without World Bank authorization.  CURRENCY EQUIVALENTS Currency unit = CFA Franc (CFAF) US$1.0 = CFAF 250 CFAF 1 million US$2,500 SYSTEM OF WEIGHTS AND MEASURES: METRIC FISCAL YEAR July 1 - June 30 ABBREVIATIONS AND ACRONYMS AGETIP Agence d'Execution des Travaux d'Interet Public Contre le Sous-emploi (Senegal) CNREF Commission Nationale des Reformes Economiques et Financieres DSD Direction de la Statistique et de la Demographie GON Government of Niger GTZ Deutsche Gesellschaft fur Technische Zussemmenarbeit (Germany/Allemagne) KfW Kreditanstalt fur Wiederaufbau (Germany/Allemagne) PACSA Programme d'Attenuation des Coats Sociaux de l'Ajustement PESAP Public Enterprise Sectoral Adjustment Program SAL Structural Adjustment Loan SDA Social Dimensions of Adjustment UNDP United Nations Development Program This report is based on the findings of a World Bank mission consisting of Messrs. Leslie Pean (Economist, Mission Leader), Jean-Marie Lantran (Civil Engineer), and Magatte Wade (Consultant), who visited Niger in July 1990 to appraise the Project. Francis Mody and Pierre Nignon provided support for the subprojects' economic analysis. Mr. Patrick Canel was the Lead Advisor for the operation. Mrs. Katherine Marshall and Mr. Peter Watson are the Department Director and managing Division Chief, respectively for the operation. The report was typed by Mrs. Malissa Ngo,Van Duc.  FOR OFFICIAL USE ONLY REPUBLIC OF NIGER PUBLIC WORKS AND EMPLOYMENT PROJECT STAFF APPRAISAL REPORT Table of Contents Page no. Credit and Project Summary . . . . . . . . . .-v I. THE ECONOMIC AND SOCIAL CONTEXT ... . . . . . . . . . . 1 A. Recession, Unemployment, and Urbanization . .... 1 B. Government's Policy and Rationale for IDA Involvement 3 C. The Construction Industry: Performance and Constraints .... . . . . . . . . . . . . . . . . 4 D. The Bank's Previous Role ... . . . . . . . . . . 7 II. THE PROJECT.8 A. Project Objectives. 8 B. Project Description . . . . . . . 9 C. Rationale for Bank Group Involvement 16 D. Status of Project Preparation .17 E. Project Cost and Financing Plan .18 F. Project Implementation .19 G. Procurement .21 H. Disbursement .23 I. Accounting, Auditing, and Reporting .24 J. Supervision Plan .24 K. Economic Analysis . . . .......... . . . 26 L. Benefits and Risks ....... . - ...... . 26 III. AGREEMENTS REACHED AND RECOMMENDATION ... . . . . . . . 27 TABLES IN THE MAIN TEXT Table 2.1 - Estimated Costs Table 2.2 - Financing Plan Table 2.3 - Procurement SUPPORTING ANNEXES, TABLES, CHARTS, AND MAPS 1. The Executing Agency's Statutes and Bylaws 2. The Executing Agency's Procedures Manual 3. Cost Tables 4. Project Execution Schedule 5. Allocation of IDA Credits 6. Economic Analysis This document has a restricted distribution and may be used by recipients only in the performance of their official duties. Its contents may not otherwise be disclosed without World Bank authorization.  - ii - REPUBLIC OF NIGER PUBLIC WORKS AND EMPLOYMENT PROJECT STAFF APPRAISAL REPORT Credit and Project Summary Borrower: Government of Niger Beneficiary: Ministry of Plan Credit Amount: US$20.0 million Terms: Standard IDA terms, with 40 years maturity CofinancinZ: Other donors (US$10.0 million) and Government of Niger (GON) (US$3.3 million) Project Objectives and Description: The main objectives of the project are: (a) to create, at least temporarily, substantial new employment in urban areas as rapidly as possible using the private sector, thereby stimulating small local private contractors and consulting firms; (b) to improve, through execution of the works financed by the project, the individual skills of the workers who will be employed, and the corporate competitiveness of the firms that will carry out works so as to develop their capacity to respond to increased opportunities for sustained employment after completion of the project; (c) to demonstrate the feasibility of labor-intensive projects and test the procedures that will enable the public sector to commission such projects that are economically and socially useful; (d) to review existing public works programs and recast them with the intent of speeding up their implementation and overall performance; and (e) a package of consultant services related to a training program for the beneficiaries and engineering firms on the preparation of feasibility studies and technical project proposals; a program aimed at increasing grassroots participation in urban infrastructure maintenance; and the preparatory work for the establishment of a mutual guarantee company. In pursuing these objectives, the following conditions should be fulfilled: (i) avoiding any increase in civil service employment; (ii) combining low cost and high visibility; (iii) supporting,  - iii - but not replacing, other development programs; and (iv) using transparent but expeditious and flexible procedures for subproject bidding, appraisal, contracting, and disbursements. Justification and Risks: Although the economic rate of return of a labor-intensive public works program is difficult to estimate, economic rates of return have been calculated to be 26 percent and 51 percent, respectively for subprojects of sand removal from public facilities and pavement rehabilitation. The proposed project is further justified by its impact on poverty alleviation and by indirectly securing other development and adjustment undertakings. The design of the project is mainly justified by the fact that the targeted industry (construction, maintenance, and urban services)-- more than any other industry--hires and dismisses labor according to contract opportunities. This maximizes the probability that an increase in the industry's activity will actually result in an increase in employment. Conversely, the project is not expected to directly create permanent jobs. Main risks arise from the possible inability of Niger's economy to develop enough stable job opportunities during the period of program execution, leading to pressure from the Government to extend the program beyond its initial period. Another risk is to jeopardize previous efforts of public sector management improvement, including restrictions on personnel hiring, implemented during recent years by the central and local governments; continued employment for those who would benefit from the program should not take the form of their being hired by local governments when the program ends. Lastly, the control of proper use of funds is more difficult with such a program than with regular investment projects. The implementing arrangements established during project preparation and appraisal and contained in a Procedures Manual (Annex 2), which is attached to the Convention entered into by the Government and the Agency, have been carefully designed to address this risk.  - iv - Estimated Project Costs: LOCAL FOREIGN TOTAL | K I|I FOREIGN (USS million) Component (a): Labor-intensive Civil 22.65 3.38 28.03 13% WorksI Component (b): Services to 1.01 0.49 1.50 32% Contractors Component (c): Monitoring 0.48 0.32 0.80 40% Contract Management Study 0.00 0.30 0.30 100% Mutual Guarantee Co. 0.00 0.10 0.10 100% Training Program for Beneficiaries 0.06 0.20 0.25 80% Grassroot Participation Program 0.10 - 0.10 - Executing Agency Operating Costs 1.74 0.10 1.84 6% PPF and Executing Agency Capital 1.28 0.48 1.76 27X Budget Base Costs 27.30 5.38 32.68 16% Price Contingencies 0.34 0.28 0.82 44% Total Project Costs (1) 27.84 6.88 33.30 17% (1) Numbers may not add due to rounding. Financing Plan % OF LOCAL FOREIGN TOTAL TOTAL PROJECT COST (USS million) l Government 3.3 3.3 10% IDA 16.8 4.4 20.0 80X Other donors (OPEC fund, KfW) (to 8.7 1.3 10.0 30X be determined) Total Project Costs 27.8 6.7 33.3 100%Kl  Estimated Disbursements FY91 FY92 FY93 || Total 2.0 8.9 9.1 Cumulative 2.0 10.9 20.0 Estimated Project Completion Date: March 15, 1994 Memorandum of the President: No. P-5387-NIR MLap: IBRD 16779-R  PUBLIC WORKS AND EMPLOYMENT PROJECT STAFF APPRAISAL REPORT I. THE ECONOMIC AND SOCIAL CONTEXT A. Recession, Unemployment, and Urbanization 1.01 In the past decade, the economy of Niger has been hit by several external shocks creating balance of payment deficits and external disequilibrium. The economy entered a recessionary state, whose magnitude is increasing. Since 1980, per capita GDP fell by at least 25 percent. During the euphoria of the uranium boom, the Government, anticipating continuous revenue inflows, increased the size of the public sector and borrowed externally for its investment program. The economic slowdown, brought about by the drop of world market uranium prices, affected revenues and created a large budget deficit, as public spending continued unabated. In the early 1980s, Niger was left with a budget deficit of 10 percent of GDP, a balance of payments (current account) deficit of 22 percent of GDP and a portfolio of uneconomic investments. The financial situation worsened with rapidly rising debt service as interest on foreign loans came due. In light of the gravity of these economic distortions, the Government adopted a set of austerity measures to deal with the internal and external imbalances and to stabilize the economy. 1.02 In order to face the crisis created by the fall in uranium exports and the repeated droughts that have affected the livestock and agricultural sectors, Niger's Government, for the past seven years, has undertaken reforms to stabilize and adjust the economy. Since 1983, Niger has been engaged in macroeconomic stabilization and adjustment, with the support of the IMF and IDA. So far, progress has been made in rationalizing the public enterprise sector: reducing direct subsidies to the sector from nearly 25 percent to 7 percent of current budget outlays between 1983 and 1989; liberalizing the economy by eliminating most price controls and abolishing some state trading monopolies; strengthening the rural sector by freeing up internal trade in cereals, eliminating export duties for agro- pastoral products, and reducing subsidies. 1.03 Despite these efforts, the economy stagnated with GDP growth averaging 0.5 percent per annum in 1985-89. Rural sector production fluctuated widely because of rainfall patterns, but averaged 1.1 percent growth during the period from 1985 to 1989. Fixed capital investment declined from a record high of 28 percent of GDP in 1980 to about 10 percent in 1988, with public investment down from 18 to 8 percent of GDP between 1980 and 1989 and private investment falling from 10 percent to virtually zero in the same period. Export receipts declined by 25 percent in real terms between 1981 and 1988 due to the fall in uranium exports. Imports declined by 35 percent in real terms in the 1980s, reflecting the stagnation of economic activity and the loss of export earnings. 1.04 The social effects of Niger's economic problems are most visible at the urban level, where population growth and a shrinking modern sector have caused rising unemployment. The rapid growth of the informal sector has been both a result of and a mitigating factor in the process. Unemployment  - 2 - that started as a result of external conditions further increased with the stabilization policies undertaken by the Government of Niger since 1983. The structural and the sectoral adjustment credits from the World Bank (Structural Adjustment Loan (SAL) and Public Enterprise Sectoral Adjustment Program (PESAP)) dealt almost exclusively with public sector enterprise reform. Thirty of these enterprises have been either privatized or liquidated. This program has necessitated layoffs and plant closings. The slow supply response of the private sector meant that these job losses have not been compensated for by new employment opportunities in other industries or sectors. The growth rate of job creation in the public sector (1.6 percent) is far below the annual growth rates for population (3.2 percent) and urban population (5.5 percent). Unemployment has become a very serious problem in Niger, particularly in Niamey, Maradi, Zinder, and other urban centers. In 1986, it was estimated that formal unemployment was running at a level of 9 percent in Niamey. Since then, a number of factors have severely aggravated the situation, some of them directly related to the adjustment process. 1.05 Unemployment has been increasing even though this trend is not well reflected in official statistics that focus more on the formal than on the informal sector. By capturing the dynamics between these two sectors in 1988, it was estimated that in urban centers the number of persons employed in the formal sector (including mining) was 62,000 of which 26,000 were in the private modern sector (parastatals included) and 36,000 were in the civil service. At the same time, 100,000 people were estimated to be full-time workers in the informal sector, with an additional 100,000 working part-time in that sector. 1.06 The informal sector has traditionally been an outlet for absorption of surplus manpower. For the country as a whole, the informal sector supplies 57 percent of non-agricultural employment. It has been estimated that 65 percent of those employed in industry, 84 percent and 39 percent of those employed in commerce and services, respectively, work in the informal sector. For Niamey, the informal sector represents 43 percent of total employment, which has been estimated to represent, in terms of employment by industrial category, 51 percent for industry, 78 percent for commerce, and 22 percent for services. 1.07 The informal sector has been particularly important in the transborder trade with Nigeria, Niger's main trading partner. But in the past decade, this trade has also been negatively affected by monetary fluctuation. Over the 1986-1989 period, the real effective exchange rate of the CFAF is estimated to have appreciated by 30 percent vis-a-vis the naira, making exports to Nigeria less competitive and imports cheaper. This has created a downward pressure on wages in that sector, thereby increasing poverty for large strata of the population. 1.08 The net effects of this situation in the formal and informal sectors have been the rise of unemployment as investments have declined in all sectors. Incomes in the informal sector have also been affected by the economic downturn. A national survey on the informal sector indicates that micro-entrepreneurs are facing a situation in which their incomes are diminishing as demand is shrinking, although their numbers have increased.  1.09 This trend, which reduces employment opportunities on the demand side, is compounded on the supply side by large urban population growth due partly to the demographic structure of Niger's population. Niger has a population of 7.2 million of which more than half is less than 20 years old. Seventy-five percent of the citizenry is under 30. Niger has a high crude birth rate (51 per 1,000) and high fertility rates (more than six children per family). Niger has one of the highest annual population growth rates (3.2 percent) in the Sahel. Eighty-five percent of the population, including 6 percent who is nomadic, lives in the rural areas, but Niger urban centers have been growing at the average annual rate of 5.5 percent. Niamey's growth rate is even higher and is estimated at 10 percent, corresponding to an addition of 30,000 persons per year. Niamey represents 45 percent of total urban population with a population of about 400,000. This high urban population growth rate and the age structure of the population account for the fact that of the 27,000 job-seekers recorded in 1987, more than 15,000 of them or 54 percent were between 18 and 30 years old. 1.10 Until the investment environment is improved, allowing new investments to generate additional jobs, the unemployment problem, which public opinion considers as an adverse effect of adjustment, will pose a growing threat to the Government's ability to sustain the needed reforms. The increasing discontent among the population has created social unrest which finds its leadership among unemployed high school and university graduates, and is fueled by the large number of unemployed urban residents and by the growing number of immigrants from rural areas seeking a better living in the capital city. 1.11 In order to alleviate the social stress in urban areas, especially in Niamey, the Government is eager to complement its adjustment effort with labor-intensive public works projects which would have an immediate impact on employment and would also contribute to Niamey's and other cities' efficiency and attractiveness for investors. The rationale behind such a program is that its results, albeit temporary, will offset increasing short-term unemployment and ease the transition to more sustainable employment creation resulting from the positive effects expected from adjustment in the medium term. B. Government's Policy and Rationale for IDA Involvement 1.12 The Government, seeking ways of dealing with the growing unemployment problem, appointed a coordinating group under the inter- ministerial Commission Nationale des Reformes Economiques et Financieres (CNREF). Noting that the already difficult employment situation had been aggravated by the diminution of aggregate demand brought about by the economic crisis, the Government called on its international partners to take more account of the social dimensions of adjustment and to integrate measures to protect the poor into the macroeconomic and sectorial policies put forward for stabilization and structural adjustment. In October 1989, the Government elaborated a strategy called Programme d'Attenuation des Coats Sociaux de l'Aiustement, known as PACSA. The strategy consists of a shopping list of activities and projects in health, population, education, water supply and sanitation, rural development, environmental protection, public works, and so forth.  - 4 - 1.13 The Bank's response was to argue for a more basic reorientation of existing social programs as a way of creating a more lasting solution to the problem than would be achieved with ad hoc targeted interventions. It was specifically noted that existi,ng education and health programs had undisbursed balances that could be used to bring about fundamental shifts in resources towards disadvantaged groups. In the agriculture sector, the Small Rural Operations Project had available funds; in the infrastructure sector, the quantity of rural roads being built under the Transport Sector Project using labor-intensive techniques could be expanded through the use of small local contractors using intermediate technology. 1.14 One area where a real gap was identified was in the urban sector. Not only is there no ongoing operation but also the effects of unemployment take their most visible form in the cities. In addition, experience elsewhere--from Bolivia to Senegal--has shown that small urban infrastructure works have a high potential for combining useful public works aimed at rehabilitating dilapidated infrastructure with highly visible employment creation. The Senegal model also has high potential for promoting the development of small local enterprises through demand increases and technical assistance. Following extensive discussions and a visit to the Senegal operation, the Government of Niger asked IDA to mount a similar operation in Niger. 1.15 A final element in the equation concerns Government's policy of redirecting investment towards the social sectors and to emphasize maintenance of existing infrastructure in preference to new investment. The Government is trying to improve its poor implementation capacity by dealing with the reasons such as administrative complexity and inefficiency, lack of institutional capacity, and a shortage of counterpart funds for foreign- financed projects that have impeded project implementation. The proposed project, by creating a not-for-profit, independent, and autonomous agency with stream-lined procedures and increased accountability, will provide a clear demonstration of the potential for speeding up project implementation and improving the execution of public works programs. This demonstration, in combination with the administrative and financial audit of public works contracting and contact management procedures that is proposed under the project, will provide a sound base for undertaking corrective actions. The Municipal Infrastructure Project that is under preparation will provide the vehicle both for putting these changes into effect and for continuing the employment creation process on a sustainable basis after the Public Works and Employment Project has come to an end. C. The Construction Industry: Performance and Constraints 1.16 In order to understand the characteristics of the construction industry, a survey of the target enterprises was undertaken to uncover the actual constraints currently faced by them in connection with the labor regulatory framework, credit availability, public sector contracting, and contract administration. In particular, the survey aimed at obtaining a description of the enterprises themselves, including:  (a) overall financial position (fixed capital, working capital, short- and long-term debt, taxes owed, amounts owed by Government); (b) managerial aspects (qualifications of management and workers, proportion of cost overruns and implementation delays in recent contracts, overall orientations of the enterprise in connection with public works); and (c) employment by category (indefinite contract, fixed-term contract, daily laborers) and any hiring/firing practices worth noting. The results indicate that the target enterprises face a number of constraints in the areas of access to financing and training, as well as with respect to bidding procedures and payment delays. The project has been designed to address these issues. 1.17 During the growth years of the uranium boom in the late seventies, when the economy grew annually at 8 percent, the construction industry had an average annual growth rate of approximately 25 percent. Its contribution to GDP went from 4 percent in 1977 to 7 percent in 1980 and the number of its employees grew by 27 percent per year, from 4,166 in 1973 to 10,718 in 1977, reaching 40 percent of the employees of the modern sector, not including Government civil service. At the peak of its activity in 1982, the industry's annual turnover was an estimated CFAF 66.5 billion (US$266 million) for the formal sector and CFAF 47.6 billion (US$190 million) for the informal sector. But since 1982, annual turnover of the formal sector has declined year after year reaching CFAF 28.8 billion in 1985. After a moderate growth in 1986 and 1987, annual turnover reached a low of CFAF 22.4 billion in 1988. During that period, salaries in the modern sector have dropped from CFAF 15.4 billion in 1982 to CFAF 4.0 billion in 1988 while employment diminished from 11.818 to 4.107 for the same period. The informal sector fared better during the 1980s. Since 1982, its annual turnover has increased annually reaching CFAF 74.7 billion in 1988. 1.18 On the demand side, the construction industry market is dominated by the public sector, particularly by the Ministry of Public Works. Most contracts come from that Ministry and are for works ranging from paved roads, unpaved roads, road maintenance, feeder roads, and transportation of construction materials. There are also other ministries, government entities, and local governments such as the Ministry of Rural Development, the Ministry of Hydraulics, and the technical services of municipalities that contribute to demand for public works to be executed by small construction- related firms. This is especially the case for the municipalities whose budgets are too small to undertake large works of sanitation, water supply, and rehabilitation. 1.19 The wage bill in total construction cost varies depending on whether the works are done in the formal or in the informal sector. According to national accounts data published by the Direction de la Statistique et de la Demographie (DSD), the wage bill in the modern sector represents 20 percent of the value of production. Public works done with labor-intensive techniques reveal that two thirds of costs are distributed as  - 6 - salaries against one-third otherwise. In a similar project done in Senegal and executed by Agence d'Execution des Travaux d'Interet Public Contre le Sous-emploi (AGETIP), experience indicates that the wage bill constitutes 30 percent of total construction costs. Based on the above, it is possible to work with the hypothesis that the wage bill in total construction cost is in a range starting from a low 20 percent and reaching a high 40 percent depending on the formality or the informality of the firms used to carry the works. Considering that the wage bill constitutes an average of 30 percent of the total cost of works and that the average typical monthly salary is CFAF 24,200, it is estimated that each additional US$5.0 million (CFAF 1.25 billion) of public investment in the form of public works commissioned to small local contractors represents the creation of 2,200 jobs for a seven-month period, which is the normal time available for construction activities in the dry season. It is expected that small firms and firms in the informal sector are most likely to be the ones to execute the works. 1.20 On the supply side, in 1988, the domestic construction industry in the formal sector encompassed about 150 firms in Niamey, more than 60 percent of which are small- or very small-scale enterprises (less than 50 permanent workers). In addition, the "National Survey of the Informal Sector" reveals the existence of 5,000 jobbers (tacherons). The industry's total permanent manpower is estimated at 6,000 workers. Also, the industry employs an estimated 20,000 temporary workers in the informal sector, of which 12,000 are unskilled laborers. There are also construction firms in other cities like Dosso, Tahoua, Maradi, Zinder, Agadez, etc., especially in the area of transport of construction materials. 1.21 The domestic construction industry is beset by a number of constraints that hamper its capacity to expand and its ability to participate in the construction and maintenance of infrastructure. Even for works which do not require high qualifications and could be efficiently carried out under labor-intensive techniques by local small firms, most of these firms cannot be awarded or even bid for contracts under Government projects, for two main reasons: (a) their low level of sophistication with respect to administrative and financial management does not enable them to submit acceptable proposals and to give evidence of their fulfilling the demanding administrative requirements for the cumbersome procurement procedures in force for public contracts; and (b) current delays experienced by contractors for being paid through the Government's administrative procedures are measured in months in the best cases, and sometimes in years; only large firms with substantial working capital can afford to await payment for such a long time. The result is that a high percentage of works are carried out by foreign contractors.  - 7 - D. The Bank's Previous Role 1.22 Since 1985, the principal objectives of IDA strategy for Niger have been to support the Government's efforts to adjust to the economic difficulties engendered by the slump in uranium prices, improve the management of public resources, liberalize economic activity, and strengthen the basis for long-term growth. IDA has supported the Government's reform program through adjustment and investment operations which focussed on sectoral expenditure programs and policy reform. IDA investment projects also supported long-term growth in priority areas (such as primary education, preventive health care, and agricultural research), maintenance and rehabilitation of existing assets. 1.23 Adiustment Operations. The SAL and PESAP have represented 53 percent of IDA commitments and 55 percent of IDA disbursements in Niger during 1986-1989. They have supported Niger's adjustment efforts to improve the efficiency of public resource use, redirect public expenditure towards the productive and social sectors, and liberalize the economy. The adjustment program supported by PESAP has highlighted the difficulties in deepening the reform process. Reform has been more difficult to achieve in areas which diminish privileges to vested interests in the public and private sectors. Hence, the Government has found it difficult to curb expenditures (especially salaries) in the military establishment and the civil service, and it has been unable to improve revenue collection. 1.24 Project Operations. IDA has also financed a full range of projects in infrastructure, education, health, agriculture (rainfed, irrigated, and livestock), industry, and energy. Since 1980, the commitment of IDA resources for investment projects has steadily increased, averaging one to two projects per year, and, as of mid-FY90, there are 15 ongoing projects with undisbursed commitments of about US$120 million. In supporting the adjustment process, two of the ten sectors where the Bank has ongoing projects have shown encouraging results in improving the efficiency of overall resource use. In education, good progress has been made in supporting a redirection of public resources towards primary education, and establishing the basis for more rapid growth in primary school enrollment ratios. In transport, implementation of physical investment programs have been successful. In other sectors (agriculture, health, industrial finance) project implementation has been poor in terms of physical progress and development of sustainable, replicable systems. Such performance is not limited to IDA projects, and is a general reflection of weak administrative capacity coupled with the difficulty to identify economically sound projects in a country with limited growth potential. 1.25 Other Employment Creation Experience. In addition, since 1988, the Bank and other donors (UNDP, KfW) have financed certain operations geared towards helping the poor through employment creation in other sectors. A small rural operations project (Credit 1890-NIG) has been financed to help increase income, better nutrition, and protect the environment of the beneficiary farmer groups. The project helps the Government to improve its institutional capability to prepare, appraise, execute, and evaluate small rural operations as well as to provide effective extension services once SROs become operational. In addition, the project offers extension services like  - 8 - training and technical assistance as well as investments such as bottomland improvements, small irrigated parameters, soil conservation and watershed management, and social forestry, including village tree nurseries and studies. In the transport sector, the Bank has financed the on-going Transport Sector Project (Credit 1706-NIR) which provides construction for about 900 km of feeder roads, of which 800 km were financed by capital intensive methods, and the balance by labor-based methods. The latter is part of the Government's decision to undertake a pilot program of technical and financial support to communities for labor-intensive rural road construction to construct short access roads connecting to roads being improved by mechanized crews. Main support to this pilot program is provided by UNDP. The labor-intensive unit financed by IDA completed its first 5-km road between Famale and Guegorou in January 1989. The construction standards are the same as with mechanized techniques; namely, a 10-m wide base, and a 6-m wide roadway. The unit employs 103 laborers and has a productivity of 2 km per month. Construction cost is approximately CFAF 7 million on average, or 10 percent more expensive than with capital intensive techniques. But, two thirds of that cost is distributed as salaries, against one third otherwise. Also, nonqualified labor or 70 percent of the unit staffing is hired locally, injecting much needed revenue in poor rural areas. With mechanized techniques, the proportion of local labor is much lower: less than 30 percent. Finally, Deutsche Gessellschaft fur Technische Zussemmenarbeit (GTZ) is assisting the Government of Niger in implementing small projects in rural areas. 1.26 Relevant Experience from Senegal. In order to help solve contract management bottlenecks and to create employment, IDA has financed a similar Public Works and Employment Project in Senegal where an agency with private status named AGETIP has been created and is implementing a labor- intensive civil works program. The project was declared effective on March 7, 1990. AGETIP has constituted a file of 41 maitres d'oeuvre (consulting engineers) and 267 contracting firms, some of which are currently implementing 57 projects, not including the first six pilot projects financed under the PPF. The performance of AGETIP is highly satisfactory especially as it has been able to pay contractors in ten days instead of the 30 days required in the Manual of Procedures guiding the works of the agency, resulting in contract bid prices 15 to 20 percent below estimates. II. THE PROJECT A. Project Objectives 2.01 The main objectives of the project are: (a) to create, at least temporarily, substantial new employment in urban areas as rapidly as possible using the private sector, thereby stimulating small local private contractors and consulting firms; (b) to improve, through execution of the works financed by the project, the individual skills of the workers who will be  -9- employed and the corporate competitiveness of the firms that will carry out works so as to develop their capacity to respond to increased opportunities for sustained employment after completion of the project; (c) to demonstrate the feasibility of labor-intensive projects and to test the procedures that will enable the public sector to commission projects that are economically and socially useful; and (d) to review existing public works programs and recast them with the intent of speeding up their implementation and overall performance. In pursuing these objectives, the following conditions should be fulfilled: (i) avoiding any increase in civil service employment; (ii) combining low cost and high visibility; (iii) supporting but not replacing other development programs; and (iv) using transparent but expeditious and flexible procedures for subproject bidding, appraisal, contracting, and disbursements. B. Project Description 2.02 The components of the proposed project are: (a) a program of public facility and infrastructure rehabilitation and maintenance in urban areas to be carried out under labor-intensive schemes by local contractors; (b) a package of services related to work organization, management, and labor force training to be offered on a voluntary basis to the local contractors who will be awarded contracts under component (a); (c) a supervision and monitoring component in order to closely monitor the progress of the project and to prepare the transition toward locally supported employment of the target group; (d) a selective audit of public works programs to identify bottlenecks and design system improvements; and (e) a package of consultant services related to a training program for the beneficiaries and engineering firms on the preparation of feasibility studies and technical project proposals; a program aimed at increasing grassroots participation in urban  - 10 - infrastructure maintenance; and the preparatory work for the establishment of a mutual guarantee company; An Executing Agency has been created to execute component (a) of the project. It will serve as a model for other public agencies in terms of achieving low costs and efficient work methods. The Agency will have a small staff including an Executive Director assisted by one Financial Director and one Technical Director. The activities of the Executing Agency will be guided by a Procedures Manual outlining the policies and procedures to be followed in the conduct of its activities (see Annex II). The other components will be executed by the Unite de Coordination of the Ministere du Plan et de la Cooperation. Implementation of a Program of Labor-intensive Civil Works Subprojects 2.03 The subprojects to be executed under component (a) will be submitted by central and local branches of the central Government as well as by local governments. The Executing Agency (see para 2.21 et. seq.) will appraise the proposed subprojects, checking their eligibility in regard to precise criteria which are listed in para II-4-3 of the attached Procedures Manual. In the subproject selection process (Procedures Manual, paras II-3 and II-4), the following will be critical: (a) the subproject should have a proven economic and social utility and be ready for execution without requiring substantial detailed engineering; (b) the subproject implementation should not require the use of sophisticated equipment and should be achievable through labor- intensive methods (i.e., with labor, as a percentage of the total cost, amounting to more than 20 percent); (c) if competing with other subprojects for funds available during a given period, an eligible subproject should have a higher rate of return (and/or a demonstrated higher intangible benefit generation) than its competitors; (d) preference will be given to those subprojects which are likely to improve the skills of the workers involved and/or expose the contractor to an experience that would give him an advantage for future activities; (e) the subproject must fall within the list of eligible "work" or "services" activities mentioned below; (f) the subproject activities on site will start in less than three months from the time of adjudication; (g) employment created by the subproject will be for a time period greater than two weeks;  - 11 - (h) presence of at least two qualified enterprises for the type of works and in the geographical area in which the project will be executed; (i) project has not been eliminated from the public investment program; (j) the beneficiary has proven its financial and technical capacity to maintain the works; and (k) the project is not financed by another donor. Eligible subprojects are expected to include but not be limited to construction and repair of urban infrastructure and public facilities, street and drainage network cleaning (especially sand and garbage removal), as well as services to the population, such as garbage collection (especially in remote or difficult-to-access areas where the existing waste management system is not effective). Provided that the eligibility criteria are met, eligible subprojects will fall into two groups. The first group of subprojects--urban works--, to which at least 60 percent of funds will be allocated, include: (a) works for drainage of low-lying areas, underground water mains, observation platforms, cesspocls, channel headers, retaining walls, etc.; (b) minor infrastructure maintenance and rehabilitation works (filling in ravines, laying out sidewalks, repair of gutters and small sanitation works); (c) works like those under category (b) carried out on a recurring basis and requiring work program organization (e.g., filling in potholes); (d) construction of simple buildings such as schools or clinics; (e) repair of public buildings: this category is subdivided in accordance with the specialized labor involved (plastering and painting, carpentry, plumbing, electrical work, roofing, finishing, minor masonry work); (f) demolition of condemned buildings and recovery of materials; (g) clearing of brush and terracing works (road shoulders, embankments, gabions) requiring construction based on pre- established plans; and (h) works of water and soil conservation. The second category of subprojects--urban services--to which at most 40 percent of all funds will be allocated includes:  - 12 - (a) specific works for cleaning public property: removal of sand from roadways, cleaning of drainage ditches and gutters, garbage collection, etc.; (b) works like those under category (a) carried out on a recurring basis and requiring work program organization; and (c) planting and park works. 2.04 The Agency will submit for IDA's approval, prior to effectiveness, a list of subprojects for the first year of project execution amounting to a total of US$4.25 million (para 3.03(b)). Also, the Agency will submit for IDA's approval a second and a third batch of subprojects totalling US$4.25 million respectively no later than June 1992 and June 15, 1993. Subprojects whose estimated cost will exceed CFAF 125 million (US$500,000) will be subject to IDA's review and approval prior to final selection by the Executing Agency (para II-4-2 of the Procedures Manual). The Agency will, however, carry out the regular appraisal procedure prior to submitting the project and the appraisal report to IDA for approval. 2.05 Once a subproject has been selected, the public agency which has submitted it ("the beneficiary") will enter into an agreement ("Convention de maltrise d'ouvrage deleguee") with the Executing Agency, according to a pre-established model which is attached to section II of the Agency's Procedures Manual. This agreement will include inter alia the following provisions: (a) the Executing Agency is substituted for the beneficiary for the whole execution of the subproject and has full authority, on behalf of the beneficiary, to select the contractors, sign the contracts, supervise the works, acknowledge delivery, and pay contractors; (b) the subproject is financed by the Executing Agency, on the basis of the funds made available to it under the project, and therefore is additional to the beneficiary's own capital budget or investment program. The beneficiary will not be requested to reimburse the cost of the subproject; (c) the beneficiary accepts the responsibility for the ongoing maintenance of the subproject; (d) provisions have also been devised to take care of possible litigation upon delivery of the completed works to the beneficiary; and (e) the Agency will reimburse the beneficiary at a flat rate of FCFA 300,000 for the beneficiary's project technical proposal preparation. It has to be pointed out that the additionality requirement (provision (b)), albeit in contradiction with IDA's usual requirement of cost recovery, is in this case critical to ensure a net increase in the total  - 13 - demand of works, as compared to regular public investment programs, and thus to ensure incremental employment generation. 2.06 In order to start up actual project implementation without delay after effectiveness, a first sample of eligible subprojects has been identified. These subprojects have been reviewed and approved by IDA. Six subprojects ranging from CFAF 9 million (US$36,000) to CFAF 48 million (US$192,000) are being carried out as subprojects with financing provided by a second PPF advance granted after project appraisal. These six subprojects comprise: (a) cleaning of the urban drainage network; (b) pavement, rehabilitation, and maintenance of minor streets; (c) rehabilitation of a public building; (d) building of a small dam; (e) garbage collection; and (f) removal of sand from streets and drains. These subprojects represent six of the main categories of work to be carried out under the project (Annex 2, Section III). 2.07 A major critical feature of the project is the Executing Agency's disbursement procedure. As pointed out above (para 1.21), a condition sine- qua-non for small-scale enterprises to be able to undertake works commissioned by public agencies without ending up in bankruptcy is that disbursement procedures be devised to avoid the delays that are commonplace with regular public procedures. Initial advances to contractors executing the works will be given in exchange for a bank guarantee or a bond covering 100 percent of the amount of the advance that, in any case, will not be more than 20 percent of the total amount of the contract. Payments will be scheduled according to the terms and conditions set in Annex 2, Section V. Furthermore, initial advances to the consultant engineer and the contractor will be paid in a timely manner and in a cashable form. For bid preparations, the consultant engineer will be paid a maximum of five percent of the estimated cost of a subproject. For supervision and monitoring, the engineer will be paid up to a maximum of five percent of the total amount of the works. It is expected that the majority of the engineering services will be provided by Nigerien firms, thus helping to strengthen the local consulting industry. The private legal status of the Executing Agency will allow the director to directly order payments, by signing checks and transfer orders, without being submitted to numerous clearances and without being obliged to surrender actual execution of payments to a Treasury officer ('"principe de la separation de l'ordonnateur et du comptable"). In order to give incentives to the Executing Agency to disburse quickly and not be tempted to invest its cash instead of paying its contractors, timely payment of contractors, not exceeding 30 days between work completion and payment, is considered as a key evaluation criteria of the performance of the Agency.  - 14 - A Package of Services Offered to Contractors 2.08 This component aims at increasing the technical and managerial capacity of small- and medium-scale Nigerien contracting firms in the building and construction trades. The rationale behind this component is twofold: (a) most firms in the target group are expected to show weaknesses, in terms of management, work organization, and technical skills, which might jeopardize the successful implementation of the subprojects that they will be commissioned to carry out: the provision of some technical assistance to contractors is deemed an effective way to address this risk; and (b) conversely, those firms which are going to be awarded contracts under the proposed projects may be expected to be comparatively more efficient than others, if the selection process is effective. Therefore, with a view to strengthening comparative advantages instead of randomly spreading assistance over the whole industry, these firms deserve more than others to be supported to improve the overall efficiency and competitiveness of the industry. 2.09 Three subprograms are proposed under this component: (a) a business administration and financial management program intended for entrepreneurs and their administrative staff; (b) a work organization program primarily designed for foremen; and (c) various technical training courses to improve the skills of basic workers. All three subprograms will be very practical at the "grass-root level" and will take the form of on-the-job assistance and training. Potential beneficiaries will be free to accept or refuse this form of assistance, except in cases where technical assistance will be deemed indispensable for successful implementation of the subproject and will therefore be a condition of contract award. The "Unite de Coordination" at the Ministry of Plan and Cooperation will be responsible for administering the three subprograms but will contract out their implementation. Proiect Monitoring 2.10 The monitoring component will broaden the scope of the regular supervision of any Bank project. Given the wide margin of independence and initiative which is deemed instrumental to ensure the Executing Agency's efficiency and effectiveness, close and continuous ex post supervision and monitoring are essential to prevent the Agency from misusing its autonomous decision power. Moreover, the many innovative and even experimental features of the proposed project call for provisions enabling the Government and the donors to jointly monitor progress of the project toward the proposed objectives and to take expeditious measures if they assess that some  - 15 - misconception has prevailed in the project design and that there is a danger of the objectives being missed. The borrower and IDA will meet at least twice a year during the three-year period of project execution to exchange views with regard to the progress of the project and subprojects, the management of the Agency's operations, the performance of its personnel, including key personnel, the performance by the Agency of its obligations under the Convention between the Government and the Agency, and particularly the procurement practices and procedures being followed by the Agency pursuant to the Procedures Manual. In order to make relevant information available for the above-mentioned meetings, consultant services (e.g., management and financial audits of the Executing Agency, studies of the impact and performance of already implemented subprojects and performance of procurement procedures) will be identified and agreed upon with the Government by regular supervision missions and will be commissioned by the Agency upon request by the Government in order to deliver findings and recommendations in a timely manner for the above meetings. Public Works Contract Management Audit Study 2.11 This component will consist of a study and audit of the Public Investment Program to uncover the bottlenecks in procurement, contracting, works supervision, payments, and audits that impede project implementation (para 2.01(d). In FY89, the Niger Public Investment Program had a disbursement ratio of about 20 percent for project lending. The study will help the Government to document problem areas and will at the same time demonstrate the benefits of alternative procedures and contract administration methods that emphasize efficiency and transparency used by the Public Works Employment Project. The terms of reference for the audit were agreed with IDA at negotiations (para 3.02(d)). It was agreed at negotiations that: (a) within six months of the completion of the study and not later than July 1992, the Government will present to the Bank for its comments an Action Plan to adopt the changes recommended by the study to determine how they will be implemented; and (b) the Government will subsequently implement the agreed Action Plan, not later than January 31, 1993. Training Program for the beneficiaries and engineering firms 2.12 This component would provide support to the beneficiaries and to local engineering firms to prepare the feasibility studies and the technical project proposals that will be submitted to the Executing Agency for funding. An expert will be hired for a two-year period and placed in the Unite de Coordination at the Ministry of Plan to assist the concerned entities in the formulation of technical proposals according to the specifications of the Manual of Procedures.  - 16 - Grassroot participation program 2.13 This component would help organize a program to increase grassroots participation in urban infrastructure project maintenance. This program would disseminate information (using the local languages, logos, appropriate colors and music) to the chefs de quartier, neighborhood committees and to the tacherons and micro-entrepreneurs to increase their awareness of the project as a whole and to increase the level of responsibility that the community feels with respect to project works. In this framework, before project effectiveness, a number of activities will be organized to increase public awareness and support for the project. These activities include an information seminar to distribute documentation and to sensitize the population on the project, a meeting of the general assembly of the Agency, and a week-long campaign in the media. The objective of this effort is to improve communication between the grassroots and local authorities so that the former are consulted on projects that affect their neighborhood, before they are presented to the Agency for funding and implementation. This is particularly important in the case of garbage collection and sewer cleaning, where grassroots participation can make a difference in terms of public hygiene. Preparatory work for the establishment of a mutual guarantee company 2.14 This component would provide assistance to respond to the need expressed by local entrepreneurs for the establishment of a mutual guarantee company. It will give support in terms of logistics, training and preparation of the techniques and procedures for the organization of a mutual guarantee company that would serve the firms that will execute works under the project. C. Rationale for Bank Group Involvement 2.15 IDA's leadership in donor support to structural adjustment results in the Association is considered as Niger's main partner for addressing issues rightly or wrongly attributed to adjustment. In GON's view, the proposed project is a high priority component of the SDA-PACSA program. Meanwhile, IDA's strategy is to support the Government in the urban sector to promote its decentralization policy. An urban project is under preparation to help the Government define and test the effectiveness of its decentralization policy, especially in terms of improving the quality of infrastructure maintenance and urban services. The urban project will also contribute to strengthening municipal institutions and increasing local resource mobilization, allowing the participation of private initiatives in the execution and delivery of urban services. Therefore, a program of labor-intensive public works aimed at improving the urban environment using private enterprises sets the stage to address some of the policy concerns-- such as contracting efficiency and private sector participation--that will be dealt with in the urban project. Broader financial issues--such as cost recovery and municipal financing--will form the policy core of the urban project.  - 17 - D. Status of Project Preparation 2.16 A first US$460,000 PPF advance was granted to finance project preparation which included: (a) a survey of the target firms, intended to provide information needed for designing eligibility criteria and implementation arrangements and to classify engineering firms and contractors in terms of capacity and specialty; (b) the hiring of a law firm to look into the appropriate legal status for the Executing Agency and to make proposals in relation to the Agency's organization, procedures, and bylaws; (c) the short-term consultant services in various fields (law, engineering, accounting, organization, etc.) needed for project preparation; (d) the preparation of a listing of eligible works to be executed, as well as a listing of engineering and construction firms to serve as supervisors and contractors in line with the recommendations of the Manual of Procedures of the Agency; (e) the preparation of bidding documents and engineering designs for the first six pilot subprojects; (f) a mission of Nigerien officials to Dakar to acquaint themselves with a similar organization called AGETIP; and (g) a study of the participation and involvement of the population in the identification and routine maintenance of the public works to be executed under the project. 2.17 All studies have been completed. The project was appraised in June 1990. The future director of the Agency has been selected and approved by IDA in November 1990. He accompanied the delegation at negotiations which were held from November 26 to 30, 1990. He has started working part-time for the project and will work full-time starting January 1, 1991. A draft of the Agency's Procedures Manual has been completed and submitted to IDA at negotiations (para 3.01(b)). The Procedures Manual was reviewed both by the Government and IDA, agreed upon at negotiations (paras 3.02(a) and 3.02(b)) and will be attached to the Convention to be entered into by the Government and the Agency. 2.18 After appraisal, a second PPF advance of US$1.04 million was granted in order to execute six pilot subprojects, hire the staff of the Executing Agency, and fine-tune implementation arrangements (including accounting procedures) before full-scale launching of the project.  - 18 - E. Proiect Cost and Financing Plan 2.19 Project Cost. The project cost is estimated at US$33.3 million equivalent (CFAF 8,325 billion) net of taxes and duties. The estimated foreign exchange component is US$5.66 million, or 17 percent of the total cost. Base cost estimates are in mid-1990 prices. Annual inflation rates have been estimated as follows: 1990 1991 1992 1993 I Local 2.0 2.0 2.0 2.0 Foreign 4.4 4.4 4.4 4.4 Since the volume of local works under the first component will be adjusted according to available funds, price contingencies have not been applied to the estimated local cost of Component (a) which comprises 81 percent of total base costs. Price contingencies on the remaining small components amount to 1 percent of base costs. A summary of cost estimates is presented in Table 2.1. Detailed project costs are provided in Annex 3. Table 2.1: Estimated Costs LOCAL FOREIGN TOTAL X FOREIGN (US$ m7llion) Component (a): Labor-intensive Civil 22.65 3.38 26.03 13% Works Component (b): Services to 1.01 0.49 1.50 32% Contractors . Component (c): Monitoring 0.48 0.32 0.80 40% Contract Management Study 0.00 0.30 0.30 100% Mutual Guarantee Co. 0.00 0.10 0.10 100% Training Program for Beneficiaries 0.05 0.20 0.25 80% Grassroot Participation Program 0.10 - 0.10 Executing Agency Operating Costs 1.74 0.10 1.84 SX PPF and Executing Agency Capital 1.28 0.48 1.76 27% Budget Base Costs 27.30 5.38 32.68 18X Price Contingencies 0.34 0.28 0.62 44% Total Project Costs (1) 27.84 5.86 33.3 17% (1) Numbers may not add due to rounding.  - 19 - 2.20 Financing Plan. The proposed IDA credit of US$20.0 million will finance 60 percent of project costs net of duties and taxes. This will cover approximately US$4.4 million of foreign costs and US$15.6 million of local costs. All subprojects to be carried out by the Executing Agency will be exempt from duties and taxes. A US$3.3 million local contribution-- 10 percent of project costs--will be provided to the Executing Agency from Government budgetary resources to finance new subprojects (in addition to those financed by IDA and other codonors) (para 3.02(e)). It was agreed at negotiations that the Government will: (a) cause the Executing Agency to execute new subprojects to the aggregate value of US$3.3 million equivalent before December 30, 1993, of which subprojects totalling the equivalent of at least US$1.65 million would be completed by December 31, 1992; and (b) make available to the Executing Agency, out of its own resources, all the funds necessary for the execution of those subprojects (see para 3.02(e)). Cofinancing totalling US$10.0 million equivalent (30 percent of total project costs) has been identified during appraisal and will be finalized with OPEC Fund and KfW. Based on the discussions held in Niamey with the representative of the European Community, the project is likely to receive additional financing from the FED of FCFA 3.4 billion f or the next two years. The FED will also supply technical assistance to the Executing Agency to monitor project activities that will be executed with its funding primarily in peri-urban areas.The proposed financing plan is set out in Table 2.2: Table 2.2: Financing Plan %OF LOCAL FOREIGN TOTAL TOTAL PROJECT ____ ____ __ _ ____ ___ COST (USS mi lion) Government 3.3 __ 3.3 10% IDA 15.6 4.4 20.0 80% Other donors (OPEC Fund, KfW) 8.7 1.3 10.0 30% (to be determined) I Total Project Costs 27.6 5.7 33.3 100% F. Project Implementation 2.21 The implementing arrangements are deemed critical for effective fulfillment of the project's objective: the Executing Agency has been created as a temporary "self-destructing" body, with private legal status, fulfilling a condition for negotiations (para 3.01(a)). Such an agency will be able to avoid the cumbersome, slow, and inefficient procedures that public institutions are obliged to follow for calling for bids, awarding contracts  - 20 - and disbursing, and which result in de facto discrimination against small contractors. The Agency's operating procedures and internal organization have been carefully and precisely designed during project preparation and appraisal and are contained in a Procedures Manual that will be attached to the Convention to be entered into by the Government and the Agency for the execution of the project. A condition of project effectiveness would be that the Convention be signed by the Borrower and the Executing Agency (para 3.03(c)). As described above (paras 2.03 to 2.06), the Procedures Manual will include: (a) eligibility criteria for selecting subprojects submitted by local and central administrations for implementation under the proposed project; (b) procedures for selecting contractors, calling for bids, and awarding contracts; (c) disbursement procedures; and (d) internal organization for work supervision, control, and delivery of completed works. 2.22 In order to ensure expeditious implementation of the program, the Executing Agency has full authority--and will not be submitted to any exante clearance--for carrying out the whole process of project execution. In particular, the public institutions which will propose subprojects will have to surrender their authority for execution of the subproject up to delivery of completed works. In return, they will get the works financed by the project in addition to their own investments budgets. 2.23 The Executing Agency will be submitted to close ex post supervision by the Government and will have to furnish detailed activity reports every other month. The Government and IDA will meet at least twice every year during the period of project execution to exchange views comprehensively on the project execution performance. Resources of the Executing Agency will be replenished only upon presentation of properly documented records of the use of funds. The above-mentioned meetings between the Government and IDA may result in proposing and implementing any measure that will be deemed useful to ensure actual fulfillment of the project's objectives, including hiring and dismissal of the Agency's staff. 2.24 The professional experience of the Agency's staff shall be acquired mainly from private sector. Any staff member from the public sector would have to resign or be placed on "leave without pay" status before accepting a position in the Agency. During negotiations, assurances were obtained from the Government concerning its responsibilities to ensure that any change in the director of the Executing Agency will be acceptable to the Association (para 3.02(f)). The compensation offered to the staff will be high enough to make it attractive to top-level professionals. The Agency Director has been selected and participated in the negotiations. He is a Nigerien with a strong private sector background.  - 21 - 2.25 The creation of the Executing Agency was a condition of negotiations. The recruitment of the Executing Agency staff, in particular its Technical Director and Financial Director with the qualifications and experience acceptable to the Association, will be a condition of effectiveness (para 3.03(a)). 2.26 The project will be executed over a period of three years. G. Procurement 2.27 The procurement procedures according to which the Executing Agency will select contractors and award contracts are another important feature of the project. They have been discussed during appraisal, agreed upon with the Government at negotiations (para 3.02(g)), and are included in the Agency's draft Procedures Manual (Sections III and IV). 2.28 The Agency will maintain a roster of contractors eligible for Local Competitive Bidding (LCB). The Executing Agency at the beginning of its activities will select an initial list of eligible contractors and engineering firms according to procedures acceptable to IDA and spelled out in Section III of the Procedures Manual. When applying for registration, the contractors will provide once and for all the administrative data regarding the firm and a list of references. Applications will specify the category or categories of works for which the firm applies (according to a pre- established list of categories provided in para III-1 of the Procedures Manual), the geographical area in which the firm is prepared to carry out works, and references relative to the types of works sought. Prior to effectiveness, the Agency will be required to broadly advertise a call for applications to initiate the roster. IDA will review and approve this initial selection and satisfy itself that the procedures agreed upon at negotiations within the Procedures Manual have been satisfactorily followed. This prequalification of eligible contractors and engineering firms is a condition of effectiveness (para 3.03(d)). The roster will stay open during project execution so as to allow additional applications at any time. Large firms using modern equipment are not likely to be interested by the type and size of most subprojects proposed, but they are not precluded from participation in the process. The purpose of preregistration will be to determine the contractors who can demonstrate their ability to carry out the proposed labor-intensive works effectively and will, therefore, be eligible to bid. Besides the fulfillment of administrative and legal requirements, the firms' references will be critical for them to be preselected. Later on, actual performance of the contractors who are awarded contracts by the Agency will provide the basis for the Agency to reassess their registration and upgrade or downgrade it.  - 22 - Table 2.3: Procurement 1/ PROCUREMENT METHOD l PROJECT ELEMENT ICB LCB CONS. N.A. TOTAL Civil Works 0.00 26. 03 26.03 (12.73)(2) (12.73) Services to Contractors 1.50 1.50 (1.60) (1.S0) Monitoring 0.80 0.80 (0.80) (0.80) Contract Management Study 0.30 0.30 ____________ (0.30) (0.30) Mutual Guarantee Co. 0.10 0.10 . . _______ . (0.10) (0.10) Training Program for Beneficiaries 0.25 0.25 l_________ _ _(0.25) (0.25) Graseroot Participation Program 0.10 0.10 I___________ . . .___ (0.10) (0.10) Executing Agency Operating 1.84 1.84 Costs (1.84) (1.84) PPF and Executing Agency 0.26 1.50 1.76 Equ ipment __ _ (0.26) (1.50) (1.72) TOTAL 0.00 26.25 2.95 3.44 32.68 ________ ___ (12.99) (2.95) (3.44) (19.38) (1) Figures exclude price contingencies. (2) Figures in parentheses are the respective amounts financed by IDA. 2.29 The target group of firms for technical assistance comprises primarily small-scale enterprises, which are more likely than large ones to bid for labor-intensive projects. However, given the low level of sophistication of these firms in regard to administrative and financial management, they are currently discriminated against by the procurement procedures in force for public contracts. This is one of the basic reasons why it has been deemed necessary to establish a special agency, with private legal status, to implement the project. Basically, the objective of the standard procurement procedure is to ensure fair competition among eligible contractors without requiring from them the preparation of a complex proposal, including detailed calculations of price. The core of the procurement procedure will be local advertisement among registered contractors of a proposed contract for a given subproject. All contractors registered in the roster for the category of works and the area concerned by the subproject will be invited to bid. The contract, which will be written in simple language and will describe the scope and nature of the works, proposes a reference price with some straightforward explanations about its calculation (unit prices and quantities). Contractors will be invited to bid by way of discounts either on the total price or on the unit prices. Among eligible bidders, the winner will be selected on the basis of the proposed discount and other criteria (such as timeliness of performance)--if  - 23 - any is specified in the bidding documents--and invited to sign the proposed contract. The contract awarding committee (para IV 1-2 of the Procedures Manual) will have full authority to select the winner. However, it will have to justify in writing, in the minutes of the meeting, and in reference to the explicit criteria listed in the bidding documents, any decision not to select the lowest bid. The contracting awarding committee will open the bids in public and the bidding firms or their representatives can be present at that meeting. For all contracts for which there are less than five bidders or for contracts with an estimated cost equal to or greater than CFAF 62.5 million (US$250,000), the awarding committee will submit its decision to IDA for approval prior to notifying the winning bidder. 2.30 It is anticipated that all the civil works contracts will be below CFAF 125 million (US$500,000). In case any contract is higher than this value, International Competitive Bidding procedure (ICB) will be followed for such procurement. 2.31 Consultant services for training, technical assistance, and project monitoring will be procured according to IDA guidelines, spelled out in Guidelines Use of Consultants by World Bank Borrowers and by The World Bank as Executing Agency. 2.32 These procurement procedures have been used for one year under a similar project in Senegal and have worked well. As in the Senegal project, only parallel financing is envisaged. Should joint financing occur, it will be done in accordance with IDA Guidelines. H. Disbursement 2.33 The proposed IDA Credit is expected to be totally disbursed by June 30, 1994 (Table 2.4). Disbursements will be made on the basis of 100 percent of total expenditures for the Association's share of civil works and 100 percent for all other categories. This procedure has been selected to ensure the independence of the Executing Agency. Table 2.4: Disbursement by Categories CATEGORIES AMOUNT PERCENTAGE FINANCED ____ ___ ___ ___ ___ ___ ____ ___ ___ ___ ___ ___ (MILLION) _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ 1) Civil Works 13.734 100% of expenditures 2) Services to Contractors 1.500 100% of expenditures 3) Operating Costs of the 1.844 100% of expenditures Agency 4) Equipment for Executing 1.080 100% of expenditures Agency__ _ _ _ _ _ _ _ _ _ _ _ _ _ S) Consultant Services 1.150 100% of expenditures 6) Unallocated 712 TOTAL 20.0  - 24 - 2.34 To expedite project implementation, a Special Account denominated in CFAF will be opened at a commercial bank and maintained and operated on terms and conditions acceptable to IDA. The authorized allocation will be US$1.3 million equivalent in CFAF, representing anticipated eligible expenditures financed by IDA for a four-month period. The Special Account will be replenished monthly provided requests exceed US$100,000 equivalent in CFAF. The Special Account will be used for all expenditures of less than US$20,000 equivalent in CFAF. 2.35 All withdrawal applications will be accompanied by full documentation, except for contracts for civil works valued at less than US$250,000 equivalent in CFAF and for goods and services valued at less than US$20,000 equivalent for which disbursements will be made on the basis of Statements of Expenditures (SOEs). In such cases the relevant documentation will be retained by the Executing Agency for review by IDA supervision missions and the project's external auditors. I. Accounting, Auditing, and Reporting 2.36 The project accounting system is being set up under the PPF. Consolidated project accounts will be maintained by the Executing Agency. These accounts will be audited at the end of each of the first two quarters, and every six months thereafter by independent auditors acceptable to IDA according to terms of reference agreed by IDA. Auditors will express separate opinions on statements of expenditures. The terms of reference for auditors were agreed at negotiations (para 3.02(c)). The selection of the auditors will be a condition of effectiveness (para 3.036, 3(e)). Project accounts and auditors' reports will be submitted to IDA within one month of the close of each of the first two quarters and thereafter within two months of the close of each semester. The Executing Agency will submit monthly progress reports and prepare a Project Completion Report (PCR) within three months of the closing date. It was agreed at negotiations that there will be a mid-term preview of the management of the operations of the Executing Agency, the performance by the Executing Agency of its obligations under the Convention (including procurement procedures), and the performance by the Executing Agency and Implementing Enterprises of their respective obligations under Subproject Agreements, to be carried out by the Association and the Borrower no later than January 31, 1993 (para 3.02(h)). J. Supervision Plan 2.37 Project supervision will be done every four months. The supervision plan will consist of field trips to visit work sites to review financial and management practices, bidding, and payments procedures, micro- and small-enterprise participation as well as maximization of employment creation. A detailed supervision plan is presented in Table 2.5.  - 25 - Table 2.5: Supervision Plan APPROXIMATE DATE ACTIVITY EXPECTED SKILLS (SWl March 1991 Supervision Mission rrojeCt Lalunch or shop Objectives: a) Explain to beneficiaries, enterprises and Operations government, project objectives. Officer (1) b) Detailed workshops on procurement and Engineer (1) disbursements. Disbursements (1) c) Review effectiveness: Procurement (1) i) Achievement of credit effectiveness. Lawyer (1) ii) Review accounting and management information system. July 1991 Supervision Mission Operations a Review project progress. Officer b) Review outstandina issues. Enaineer November 1991 Supervision Mission Operations a Review project progress. Officer b Review outstanding issues. Engineer February 1992 Supervision Mission Operations a Review project progress. Officer b) Review outstanding issues. Engineer June 1992 Su pervision Mission a eview project progress. b Review outstanding issues. Operations c Review action plan of public works contract Officer _________ ___ _ management studY Encineer November 1992 Joint-Bank/Government Mid-Term Review a) eview indings of FubIic Works Management Contract and Action Plan. Operations bc Review progress in implementing reforms. Officer Review overall project progress and adequacy of Engineer institutional arrangements. d) Review project accounting. SOE and disbursements. March 1993 Supervision Mission a) Keview project progress and implementation of recommendations from the Mid-Term Review. Operations b~ Review outstanding issues. Officer c Review progress implementation of reforms in area Engineer of contract management. July 1993 Supervision Mission a) Review project progress and implementation of recommendations from the Mid-Term Review. Operations bc ~ Review outstanding issues. Officer Review progress implementation of reforms in area Engineer of contract management. November 1993 Supervision Mission a) Review project progress and implementation of recommendations from the Mid-Term Review. Operations b) Review outstanding issues. Officer c) Review progress implementation of reforms in area Engineer of contract manacement. February 1994 Final Supervision Mission a Dscussion with GUN Preparation for writing PCR. Operations c Discussion and initiation of preparatory work for Officer future project. Engineer  - 26 - K. Economic Analysis 2.38 Although the justification of the project cannot be expressed solely in terms of economic feasibility, an economic analysis has been carried out for a sample of typical subprojects on the basis of a comparison of discounted economic costs and benefits over time. Specific benefits depend on the type of subproject, but include among other things: (a) reduction in vehicle operating costs (in the case of urban road maintenance or rehabilitation subprojects); (b) reductions in the cost of services, in the case of labor- intensive garbage collection which would otherwise be undertaken by more mechanized technologies; and (c) avoided cost of reconstruction (in the case of subprojects involving maintenance or rehabilitation of infrastructure and/or buildings that would otherwise deteriorate). In the cases of removal of sand from public facilities and pavement rehabilitation, economic rates of return have been calculated to be 26 percent and 51 percent, respectively. Annex 6 presents the details of these analyses. 2.39 An estimated 33 percent of the US$26.03 million direct cost of the civil works will be distributed as salaries. On the basis of an average daily wage of US$4.40 (CFAF 1,100) and since this type of work can only be implemented during the dry season of seven months, this will provide employment for approximately 4,224 persons per year under the project. The average direct cost per job per year is less than US$2,034 per man-year. This calculation is based on the minimum wage rate (Salaire Minimum Interprofessionnel Garanti (SMIG)) of CFAF 19,000; however, since the SMIG is actually not generally honored by the small firms in construction industry, especially with temporary workers, the quantity of temporary employment created by the project is likely to be significantly higher than the above figure. Our survey indicates that while the average monthly salary paid by large enterprises is CFAF 19,000, medium and small enterprises pay an average monthly salary of CFAF 12,000 for a 22-day month. To the extent that these last two categories of enterprises are the ones executing the works, the project may well create up to 8,524 new temporary jobs per year, at an average direct cost of US$1,008. L. Benefits and Risks 2.40 Those who suffer most from unemployment or underemployment are the urban poor. Thus, the project has been designed to have a substantial impact on poverty alleviation, in addition to its economic benefits. The ultimate direct beneficiaries will be the low-paid temporary workers in the building and construction trades. Since these workers tend to spend their wages close to home, substantial multiplier effects on the local economy can be expected, although they cannot be quantified. Indeed, the focus of the project is further justified by the fact that the targeted industry (building,  - 27 - construction, maintenance, and urban services)--more than any other industry--hires and dismisses labor according to contract opportunities. This maximizes the probability that an increase in the industry's activity will actually result in an increase in employment. The proposed project is justified by indirectly securing other development and structural adjustment objectives through its contribution to the creation and maintenance of a favorable climate for the Government to continue pursuing adjustment policies. The project will also help the Government in the area of program management. It will demonstrate the possibility of efficient private sector management in public works execution. 2.41 Works to be financed under the project will be small and scattered and their cumulative impact on the physical environment is expected to be minor. Many of the eligible subprojects, both works and services, will have a net positive impact on the urban environment. This is particularly true of subprojects such as soil and water conservation works, drainage improvements and terracing, sanitation improvements, planting and park works, and solid waste collection. The project is classified as Category C. 2.42 The main risks arise from the possible inability of Niger's economy to develop enough stable job opportunities during the period of program execution, leading to pressure from the Government to extend the program beyond its initial period. This risk cannot be addressed within the proposed project but should be alleviated if the ongoing adjustment process is implemented successfully. Another risk is that continued employment for those who would benefit from the program should not take the form of their being hired by local governments when the program ends. Such continuation of employment would jeopardize previous efforts of public sector management improvement, including restrictions on personnel hiring, implemented during the recent years by the central and local governments. Last, the control of proper use of funds is more difficult with such a program than with regular investment projects. The implementing arrangements have been carefully designed to minimize this risk. III. AGREEMENTS REACHED AND RECOMMENDATION 3.01 The following were fulfilled prior to negotiations: (a) creation of the Executing Agency (para 2.21); and (b) submission to the Bank of drafts of the Procedures Manual and the Convention (para 2.17); 3.02 During negotiations, agreements were reached with the Government: (a) on the proposed Procedures Manual (para 2.17); (b) on the proposed Convention (para 2.17); (c) on the terms of reference for the public works audit (para 2.36);  - 28 - (d) on the terms of reference for the auditors (para 2.11); (e) on issues that the borrower would (para 2.20): (i) cause the Executing Agency to execute new subprojects aggregating the equivalent of US$3.3 million (10 percent of project costs) before December 30, 1993, out of which subprojects totalling the equivalent of at least US$1.65 million shall be completed before December 31, 1992; and (ii) make available to the Executing Agency out of its own resources all the necessary funds needed for the execution of these subprojects; (f) that the nomination or change of the directors of the Executing Agency will be agreeable to the Association (para 2.24); and (g) on the conditions of procurement (paras 2.27 to 2.32). (h) that a mid-term review of the management of the operations of the Executing Agency, the performance by the Executing Agency of its obligations under the Convention (including procurement procedures), and the performance by the Executing Agency and Implementing Enterprises of their respective obligations under Subproject Agreement, will be carried out by the Association and the Borrower not later than January 31, 1993 (para 2.36). 3.03 The following will be conditions of effectiveness: (a) the Executing Agency has been staffed and a Technical Director and a Financial Director have been employed with qualifications and experience acceptable to the Association (para 2.25); (b) the Executing Agency shall have selected subprojects whose aggregate estimated cost is equivalent to US$4.25 million or more and the Association shall have approved the selection of such subprojects (para 2.04); (c) a Convention acceptable to the Association has been signed between the Borrower and the Executing Agency describing the Government's and the Executing Agency's obligations and prerogatives (para 2.21); (d) the Executing Agency has prequalified an initial list of enterprises and engineering firms that is acceptable to the Association (para 2.28); and (e) the Executing Agency has selected auditors acceptable to the Association (para 2.36).  - 29 - 3.04 Subject to the above conditions, the proposed project is suitable for a Credit of US$20.0 million equivalent to the Republic of Niger on standard IDA terms.  - 30 - ANNEX L CONSULTATION JURIDIQUE SUR LE PROJET T.I.P.E. ___E_E __AUS_E_____ A__ PROJET DE STATUTS DE L'ASSOCIATION  - 31 - ANNEX 1 I. Generalites Article 1 : Denomination I1 est cree, conformement aux lois et reglements en vigueur au Niger, entre les personnes morales et physiques ayant adhere aux statuts, une association denommee "Agence de travaux d'interet public pour ltemploi". Article 2 : Siege Le siege de l'association est fixe a Niamey, a la chambre de commerce, dlindustrie, d'artisanat et d'agriculture. Article 3 : Durie La duree de l'association est de 99 annees. Article 4 : Objectifs Dans le cadre de la gestion du projet, et en dehors de tout but lucratif, l'association a pour but au Niger, d'engager toute action en vue de realiser des travaux et operations d'interet public susceptibles de creer des emplois pour la main-d'oeuvre non qualifiie ou peu qualifiee. A cet effet, l'association se fixe les objectifs principaux suivants : (a) la creation, au moins temporaire, d'un grand nombre d'emplois en particulier dans les zones urbaines, aussi rapidement que possible; (b) le renforcement des capacites des entreprises, par une amelioration de leur productivite et de leur competitivite; (c) la realisation de travaux d'interet collectif, economiquement et socialement utiles, a des conditions de coat et de qualite au moins equivalentes aux travaux realises sous d'autres formes; (d) la demonstration de la faisabilite dans certains domaines de projets a haute intensite de main-d'oeuvre et la mise a l'essai de procedures applicables par le secteur public dans la realisation de ce genre de projets. Article 5 : Fondateurs de l'association L'association se compose des membres fondateurs suivants 1. Personne physique : M. .............. 2. Personnes morales : (a) l'Union syndicale des travailleurs du Niger (U.S.T.N) representee par son secretaire general ou son representant dument mandate et choisi parmi les dirigeants de l'union; Siege Social : Bourse du travail Niamey. (b) Le Syndicat national des petites et moyennes entreprises du Niger (SYNAPEMEN) represente par son secretaire  - 32 - ANNEX 1 general ou son representant dument mandate et choisi parmi les dirigeants du syndicat; Siege Social : ............ Niamey (c) L'Association des villes et communes du Niger (A.V.C.N) representee par son president ou son representant dument mandate et choisi parmi les dirigeants de l'association; Siege Social : ............ Niamey. Article 6 : Acquisition de la qualite de membre L'adhesion de nouveaux membres se fait par cooptation sur proposition d'un ancien membre. L'adhesion d'une personne morale doit etre demandee au president de l'assemblee generale. La personne morale doit communiquer par ecrit au president le nom et l'adresse de son representant dans les instances de l' association. L'assemblee generale, prevue a l'article 10, doit ratifier l'adhesion. L'adhesion prend effet a partir de sa notification ecrite a 19interesse par le president de l'association et apres versement de la cotisation de nouveau membre. Article 7 : Perte de la qualite de membre La qualite de membre se perd par (a) deces d'un membre personne physique; (b) dissolution d'un membre personne morale; (c) demission ou radiation pour motif grave prononcee par l'assemblee generale; l'appreciation du motif grave est de la competence de cette derniere. Article 8 : Demission d'un membre Un membre peut demissionner a tout moment en avisant le president par ecrit. La demission prend effet des que l'information est parvenue au president, s'il n'y a pas d'indication contraire dans la lettre de demission; il n'est pas necessaire que cette demission soit acceptee pour la rendre effective sauf si l'assemblee generale juge qu'il est necessaire de surseoir a statuer. La dimission n'affecte pas, le cas echeant, l'obligation du membre de verser ses cotisations pour l'annee au cours de laquelle sa demission prend effet. L'assemblee generale procede a la radiation de tout membre dont la conduite porte prejudice a l'association.  - 33 - ANNEX 1 La radiation fait l'objet d'une notification ecrite au membre par le president de l'assemblee. Article 9 : Ressources Les ressources de l'association se composent (a) des cotisations annuelles de ses membres, fixees a 5000 FCFA, i verser avant le 31 mars de chaque annee, par virement au compte bancaire de l'Agence; (b) des subventions et/ou liberalites qui pourraient lui etre versees par 1'Etat du Niger ou par tout organisme ou pays etranger; (c) des produits des prestations effectuees pour l'execution des travaux entrant dans le cadre de ses objectifs. II. Assemblee generale Article 10 : Composition de l'assemblee generale L'association est administree par une assemblee generale compos~e des membres a jour de leur cotisation. Article 11 : Fonctionnement de l'assemblee generale L'assemblee generale elit, parmi ses membres personnes physiques, un president. Elle peut le revoquer pour motif grave. Le president qui veut presenter sa demission doit le faire devant l'assemblee generale. L'assemblee generale qui prononce la revocation du president ou qui recoit sa demission doit immediatement elire un nouveau president a titre interimaire ou permanent. Le president convoque les membres de l'assemblee et dirige les debats. L'assemblee generale ne peut valablement deliberer que si les 2/3 des membres de l'association sont presents ou representes. Les decisions sont prises a la majorite de 2/3 des voix des membres presents ou representes. Le president peut proposer a l'assemblee la presence de toute personne autre que ses membres slil l'estime necessaire. Le president doit faire rediger apres chaque seance un proces- verbal de la reunion de l'assemblee. Article 12 : Pouvoirs de l'assemblee generale Lassemblee est l'organe souverain de l'association. Elle est chargee de la realisation de ltobjet social.  - 34 - ANNEX 1 L'assemblee generale ordinaire se reunit au mois de janvier de chaque annee pour statuer sur le rapport moral et financier relatif a l'exercice qui slest ecoule entre le ler janvier et le 31 decembre de l'annee precedente. Une assemblee generale extraordinaire se reunit, 45 jours au plus tard apras chaque audit, pour statuer sur ses resultats. Pour toute reunion, les convocations sont envoyees au moins 15 jours a l'avance par lettre recommandee avec accuse de reception ou par cahier de transmission et indiquent la date, le lieu et l'ordre du jour de la reunion. Au cas ou, pour des raisons independantes de l'association, un membre n'aurait pas recu sa convocation, il ne pourra pas declencher de procedure d'annulation des dtcisions prises lors de ladite reunion. Un membre de l'association peut donner procuration ecrite a un autre membre a l'effet de le representer aux reunions de l'assemblee. Aucun membre ne peut detenir plus d'une procuration. III. Gestion des activites de l'association Article 13 : Direction generale de l'association Le president assure les fonctions de directeur general de l'association. A ce titre, il est habilite a prendre toute decision necessaire a l'exercice des pouvoirs definis a l'article 14 ci-dessous : Le directeur general est lie a l'Agence par un contrat de travail approuve par l'assemblee generale. Article 14 : Pouvoirs du directeur general Le directeur general a les pouvoirs les plus etendus pour assurer le bon fonctionnement de l'association et pour l'execution de la mission qui lui est confiee par l'assemblee. Le directeur general peut confier a des consultants externes specialises les missions qui lui semblent necessaires pour l'execution des differentes taches qui lui sont assignees. Le directeur general a l'entiere responsabilite des fonds mis a sa disposition. I1 doit, conformement aux normes comptables genaralement admises et aux usages uniformement appliques, tenir des livres de comptes et des dossiers relatifs a sa gestion. La gestion de l'association par le directeur general doit atre conforme aux dispositions du manuel de procedures ci-joint. Le directeur general a l'entiere responsabilite du recrutement du personnel de l'Agence. I1 est charge de veiller a la bonne application du reglement interieur de l'Agence.  - 35 - ANNEX 1 Article 15 : Revocation du directeur general En cas de raanquement grave a ses obligations, le directeur gZneral est revoque par dtcision de l'assemblee generale. Lors du vote de la decision de revocation, la voix du directeur general n'est pas prise en compte. La revocation est signifiee au directeur general par lettre recommandee avec accuse de reception par le president interimaire. Elle entralne d'office la perte de sa qualite de membre de l'association. IV. Modifications des statuts et dissolution Article 16 : Les presents statuts ne peuvent etre modifies que par l'assembl~e generale dans les conditions de quorum et de majorite des deux tiers des membres presents ou representes. L'association est dissoute a l'expiration de la duree prevue a l'Article 3 - alinea ler. En cas de dissolution, l'assemblee generale dtsigne une personne, exterieure i 1'association, qui sera chargee de la liquidation de ses biens. L'eventuel boni de liquidation sera devolu a l'Etat du Niger. Fait a Niamey, le ..................  - 36 - ANNEX 1 CONSULTATION JURIDIQUE SUR LE PROJET T.I.P.E. PROJET DE REGLEMENT INTERIEUR DE L'ASSOCIATION  - 37 - ANNEX 1 I. Generalites Article 1 : Dispositions generales Le present reglement interieur, etabli conformement aux dispositions de la loi 62-12 du 13 juillet 1962 instituant au NIGER un code du travail, et a la convention collective interprofessionnelle du 15 decembre 1972, reglemente au sein de l'Agence T.I.P.E. (a) 1'organisation technique du travail, (b) la discipline, (c) l'hygiene, la securite et le service medical. I1 est applicable a toute personne engagee par l'Agence T.I.P.E., quel que soit son statut. Au moment de son engagement, le salarie atteste avoir pris connaissance du reglement, qui doit faire l'objet d'affiche selon la reglementation en vigueur. Article 2 : Liberte d'opinion Aucun agent ne devra etre inquiete ou subir un prejudice de carriare en raison de sa position syndicale et de ses options politiques et religieuses. II. Organisation technique Article 3 : Objectifs L'organisation technique de l'Agence doit etre conSue de facon a atteindre les objectifs fixis a la section I paragraphe I.1. du manuel des procedures. Article 4 : Organigramme anx L'organigramme de l'Agence est etabli conformement au tableau annexe. Article 5 : Repartition des fonctions du personnel d9encadrement. * Le Directeur financier est responsable de la bonne marche des services comptables, financiers, de l'administration generale et du materiel. I1 coordonne l'ensemble des actions du service comptable, de l'administration generale et du materiel. Il est responsable de la tenue de la comptabilite du projet selon les normes en vigueur au NIGER. I1 est responsable de la comptabilite et de la tresorerie. * Le Directeur technique est charge du suivi de l'administration et de la reception des chantiers. I1 coordonne les actions du departement des projets.  - 38 - ANNEX 1 * Le controleur de gestion est responsable du controle budgetaire. Il assure le controle permanent de la regularite de toutes les operations ypassees par l'Agence; il est tenu d'informer le Directeur general de toute irregularite qu'il constate. Il est charge des relations avec les cabinets comptables et d'audits externes. Les fonctions du conseiller en communication et du juriste seront precisees ulterieurement. III. Organisation du travail Section I. Representation du personnel Article 6 : Le(s) delegue(s) du personnel Si l'Agence occupe plus de dix travailleurs, il est obligatoirement prevu, dans les conditions fixees par la loi et les reglements en vigueur, l'election des delegues du personnel titulaires et des delegues suppleants. Les conditions d'exercice de la fonction des delegues du personnel sont celles prevues par la reglementation en vigueur. Section II. Les horaires de travail Article 7 : La dur"e journali;re et hebdomadaire de travail. La dur~e hebdomadaire de travail est fixe a 40 heures. La duree journaliare est fixee ainsi 7h30 a 12h30 et 15h30 a 18h30 du ler mars au 30 septembre 15h00 a 18hOO du ler octobre au 28 ou 29 fevrier. La semaine de travail va du lundi au vendredi. Les horaires de travail font l'objet d'affiche. I1 en est de meme en cas des modifications de ces horaires. Une permanence peut atre assuree le samedi matin par le personnel d'encadrement et par rotation; dans le cas oa elle est assuree, un calendrier de permanence sera etabli. Article 8 : Heures supplementaires Les heures supplementaires ne peuvent etre effectuees qu'avec l'accord du superieur hierarchique et de l'inspecteur du travail. Le Directeur general de l'Agence doit en atre informi. Ainsi reglementee, toute heure travaillee en sus de la duree fixie a l'article precident constitue une heure supplimentaire et ouvre droit a une remuneration calculee selon la ligislation du travail.  - 39 - ANNEX 1 Section III. Les absences Article 9 : Les absences - maladies ou conventionnelles Pour toute absence, le Directeur general de l'Agence ou le chef de departement concerne doit etre informe. Les absences pour maladies sont reglementees par les articles 24 et 25 de la convention collective interprofessionnelle. Les absences conventionnelles admises sont celles prevues par les articles 23 et 60 de la convention collective interprofessionnelle. Article 10 : Les conges legaux Le droit de jouissance au conge est acquis par le travailleur apres une periode effective de douze mois appelee "periode de reference". I1 entraine d'office le depart en conge de l'interesse. Cependant la jouissance peut etre reportee d'accord partie, sous reserve de six jours ouvrables a prendre obligatoirement. Le Directeur general de l'Agence ou ceux des autres services dressent un calendrier des departs en conges du personnel place sous leurs ordres. Article 11 : Autres cas d'absence Les autres cas d'absences admis par la legislation du travail suivent le regime prevu par la reglementation en vigueur. IV. Discipline Section I. Retards - Absences de courte durie Article 12 : Retards Les retards i la prise du service doivent etre justifies aupres du superieur hierarchique. Article 13 : Absences de courte duree Le travailleur ne peut quitter ou s'eloigner de son poste de travail sans autorisation. S'il doit le faire pour des raisons de service, il en avise au prealable son superieur hierarchique. Section II. Comportement Article 14 : Acces aux locaux - secret professionnel Dans l'enceinte du lieu de travail comme pendant les heures ouvrables, l'agent doit eviter les comportements susceptibles de perturber le travail. Aucune personne ne peut avoir acces aux locaux si cela nlest exige par les besoins du service.  - 40 - ANNEX 1 L'agent est soumis au secret professionnel et ne peut divulguer i des tiers des informations dont il a eu connaissance dans l'exercice de ses fonctions. De maniere generale, le personnel est soumis i une obligation de reserve, d'impartialite et de discipline. Les ouvriers et les chauffeurs sont tenus de ranger les outils, engins et voitures apres les heures de travail. I1 est formellement interdit aux chauffeurs de transporter des personnes etrangeres au besoin du service. Section III. Sanctions Article 15 : Principales sanctions Les sanctions prevues pour infraction au present reglement interieur sont : (a) l'observation verbale devant temoins (b) l'avertissement ecrit (c) le blame (d) la mise a pied temporaire sans salaire d'une duree maximum de 4 jours. (e) le licenciement. Article 16 : Prise de la mesure de sanction Les sanctions prevues a l'article 20 sont prises apres que l'interesse, assiste sur sa demande de son delegue, aura fourni des explications ecrites ou verbales. Les sanctions prevues aux a, b, c peuvent atre prises par le superieur hietarchique du travailleur fautif, apres information prealable du Directeur general. Le licenciement ne peut etre prononce que par le Directeur general. V. HyRiene, securite et service medical Section I. Hyziane et securite Article 17 : Consigne de securite et d'hygiene Tout travailleur est tenu d'observer la reglementation relative a la preventation des accidents du travail et des maladies professionnelles en se conformant notamment aux consignes de securite et d'hygiene. Les consignes de securite sont affichees sur les lieux de travail afin que le personnel en prenne connaissance. Article 18 : Violation des consignes Toute violation des consignes entraine une sanction disciplinaire comme il est prevu a l'article 20.  - 41 - ANNEX 1 Article 19 : Accident de travail En cas d'accident de travail, la victime ou tout autre travailleur est oblige d'en informer immediatement le responsable au sein de l'Agence. Ce dernier se charge des formalites sanitaires et des demarches aupres de la Caisse de Securite Sociale. Section II. Service medical Article 20 : L'hospitalisation du travailleur malade En cas d'hospitalisation du travailleur pour une raison autre qu'un accident du travail ou une maladie professionnelle, les dispositions de l'article 65 de la convention collective interprofessionnelle sont applicables. Article 21 : Dispositions diverses Conformement aux dispositions en vigueur, le present reglement interieur sera communique aux travailleurs par voie d'affiche et soumis a l'inspection du travail et de la securite sociale ainsi qu'a toute autre autorite prevue par la reglementation en vigueur. Fait a Niamey, le ................... Le P.D.G. de 1'AGENCE.  - 42 - ANNEX 1 ORGANIGRAMME DE L'AGENCE T.I.P.E. Assemblee Generale Secretaire de President-Directeur General Direction Conseiller en Conseiller Communication Juridique 1 Juriste // Direction D4artement Direction Financiere du Controle Technique * 1 Directeur de Gestion * 1 Directeur * 2 Secretaires (audit interne) * 3 Ingenieurs Service Adm. Gener. Adminis- Controle de Comptabilite et Materiel tration des * 1 Comptable * 1 Chef de Service des Chantiers informaticien Chantiers * 1 Standardiste * 2 Chauffeurs * 1 Planton  - 43 - ANNEX 2 REPUBLIQUE DU NIGER PROJET DE TRAVAUX D'INTERET PUBLIC POUR L'EMPLOI Projet de Manuel des Procedures de l'Agence D'Execution Section I Principes deontologiques generaux applicables aux activites de l'ARence I-1 Rappel des oblectifs de l'Agence Les principaux objectifs du Projet de Travaux d'Interet Public pour Emploi sont les suivants : (a) creer au moins a titre tempuraire un nombre significatif dl'emplois nouveaux principalement dans les zones urbaines le plus rapidement possible; (b) ameliorer, a travers l'execution des travaux finances dans le cadre diu projet, le savoir-faire de la main-d'oeuvre employee, la competitivite des entreprises qui seront chargees des chantiers, et l'efficacite des institutions publiques impliquees, de facon a divelopper une meilleure capacite de reponse de l'economie i des opportunites de creation d'emplois durables au-dela de la periode d'execution du projet; (c) demontrer la possibilite d'elargir le champs d'application des travaux a haute intensite de main-d'oeuvre et mettre au point des procedures qui pourraient etre reprises par le secteur public pour poursuivre des activites de mame nature; et (d) executer des travaux dont le resultat sera economiquement et socialement utile. Dans la poursuite de ces objectifs generaux, les objectifs specifiques de l'Agence en tant que telle sont les suivants : (a) eviter un accroissement des effectifs de la fonction publique; (b) concilier une limitation des coats, une "visibilite" de la structure d'execution du projet, et une efficacite mesurable des modalites d'execution; et  - 44 - ANNEX 2 (c) mettre en oeuvre des procedures transparentes et controlables mais neanmoins simplifi"es, expeditives, et flexibles pour identifier et evaluer les operations a executer, passer les marches et payer les entreprises. I-2 Principes de reference Collegialement et individuellement le personnel de l'Agence est appele i exercer son jugement en reference aux principes suivants : (a) Independance : Seul le Directeur General est habilite a donner, directement ou par la voie hierarchique, des instructions au personnel de l'Agence. Les relations de l'Agence avec l'Administration sont regies par la convention qu'elle a signie avec 1'Etat. Aucune autorite exterieure a l'Agence ne peut se prevaloir, vis-a-vis des activites de l'Agence, de prerogatives autres que celles qui se referent explicitement a des engagements contractuels de l'Agence dans le cadre de la convention susmentionnee ou a des lois et reglements de droit commun applicables aux personnes morales de droit prive. (b) Impartialite : Dans ses relations avec des tiers, qu'il s'agisse des beneficiaires de l'activite de l'Agence, de ses fournisseurs et prestataires de services, ou de toute personne ou institution interessee a quelque titre que ce soit a l'activite de l'Agence ou aux resultats de celle-ci, l'Agence ne pratique aucune forme de discrimination ou de traitement preferentiel et applique exclusivement les procedures de decision et de choix decrites dans le present manuel. (c) Efficacite : La recherche de l'efficacite maximale, par rapport aux objectifs generaux decrits aux paragraphe I-1, doit guider en toute chose les decisions a tous les echelons de la hierarchie et l'application pratique des procedures de l'Agence. (d) Economie : Sous reserve du principe d'efficacite ci-dessus, la minimisation des couts doit etre une preoccupation constante de l'Agence et de chaque membre de son personnel. En particulier aucune consideration de prestige ne peut justifier l'emploi ou l'acquisition de moyens ou d'equipements et le recours a des services autres que ceux qui sont strictement necessaires a l'efficacite de l'activite de l'Agence. I-3 Conflits d'interets Le personnel de l'Agence ne peut detenir, directement ou par personne interposee, aucun interet dans des entreprises ou exercer des responsabilites dans des institutions publiques ou privees appelees a entretenir des relations commerciales avec l'Agence ou a beneficier de ll'activit de celle-ci. I1 ne peut percevoir aucune remuneration, commission ou honoraire de la part de ces memes entreprises ou institutions. Tout agent  - 45 - ANNEX 2 est tenu lors de son recrutement par l'Agence de remplir une declaration etablissant la liste de ses engagements, interets ou participations susceptibles d'entrer en conflit avec la ragle ci-dessus. I1 dispose alors d'un delai d'un mois pour se liberer de tels engagements, interets ou participations. L'accomplissement de cette obligation est une condition expresse de son recrutement definitif. I-4 Obligations des membres du personnel de l'Agence vis-i-vis de l'exterieur En application de la convention qu'elle a signee avec l'Etat du Niger, l'Agence est investie d'une mission de service public. A ce titre, le personnel est soumis a une obligation de reserve d'impartialiti et de discipline similaire a celle qui s'impose aux agents de la fonction publique (voir Section X). Le personnel de l'Agence ne peut publiquement se livrer a une critique ouverte de ses superieurs hierarchiques ou des autorites publiques. I1 ne peut pas se livrer a une propagande politique ou religieuse dans l'exercice de ses fonctions. Le personnel de l'Agence est tenu a une impartialite absolue. I1 se doit de traiter de maniere egale les usagers du service public qu'elle assume, en l'occurrence les beneficiaires des travaux ou operations et les entreprises. Le personnel de l'Agence doit enfin faire preuve envers l'Etat de la loyauta exigee des concessionnaires de service public.  - 46 - ANNEX 2 Section II Procedures de soumission des prolets a l'Agence par les beneficiaires II-1 Qualite des beneficiaires Est designee sous le terme de beneficiaire toute institution ou collectivite publique proprietaire, i titre public, d'ouvrages faisant l'objet d'interventions de l'Agence. La qualite de beneficiaire resulte de l'acceptation par l'Agence, en application de la procedure decrite ci-apres, d'un projet propose par et a l'initiative de l'institution ou de la collectivitt concernee. Les droits et obligations attaches a cette qualite font l'objet pour chaque projet d'une convention de maltrise d'ouvrage deleguee (cf II-8). Le statut de l'institution ou de la collectivite n'a pas d'influence sur l'eligibilite a la qualite de beneficiaire; en revanche la capacite de l'institution ou de la collectivite a assurer un entretien satisfaisant des ouvrages et a les utiliser efficacement apres leur remise entre dans les criteres d'evaluation des projets (cf II-3). II-2 Informations a fournir lors de la soumission d'un projet Le candidat benificiaire soumet a l'Agence un dossier comportant les pieces suivantes : II-2-1 Sur le beneficiaire (a) identification du beneficiaire, statut, champs de competences, siege ou adresse, numero de teliphone, nom de la personne responsable du projet, nom et qualite de la personne habilitee a signer la convention de maltrise d'ouvrage deleguee; (b) budgets annuels de l'institution au cours des trois derniers exercices : investissement, fonctionnement; part de chacune des deux sections de ce budget consacree aux services concernes par le projet presente; et (c) nature et repartition des ressources financieres de l'institution (par exemple fiscalite directe, facturation de services, credits budgetaires de l'Etat). II-2-2 Sur le prolet present: (a) designation du projet; description sommaire; localisation (plan de situation); (b) objectifs et justifications du projet; (c) evaluation sommaire quantitative et qualitative des benefices attendus du projet;  -47 - ANNEX 2 (d) contenu du projet : composantes; description des ouvrages a realiser; phasage propose; (e) etat d'avancement des etudes et/ou dossiers techniques prealables; date a laquelle toutes les conditions techniques pourraient etre remplies pour demarrer les travaux; (f) copie des dossiers techniques disponibles; et (g) coCit estime du projet et decomposition sommaire de ce cout par nature -- materiaux (doat materiaux importes), main-d'oeuvre, materiel, autres frais -- et le cas echeant par phase. II-3 Criteres d'evaluation des proiets Les projets sont evalues par l'Agence au regard des criteres correspondant aux indicateurs suivants (a) coat total estime du projet; (b) etat de preparation du projet : dtlai et cout des activites et demarches prealables au lancement du chantier; (c) part de la main-d'oeuvre dans le cout estim dtu projet; (d) duree moyenne des emplois crees par l'execution du projet; (e) nature et disponibilite du materiel a mettre en oeuvre pour executer les travaux; (f) part eventuelle des materiaux importes dans le cout estime du projet; (g) niveau de qualification requis des entreprises appelees a executer les travaux; (h) benefices quantifiables, economiques et sociaux, attendus du resultat des travaux; (i) complementarite des objectifs du projet par rapport a ceux d'autres projets en cours dtexecution ou de preparation et notamment des projets inscrits au Programme d'Investissements de l'Etat (P.I.E.); et (j) capacite financiere et technique du beneficiaire a entretenir le resultat des travaux et a assurer la maintennace des equipements mis en place.  - 48 - ANNEX 2 II-4 Modalites d'evaluation des proiets; criteres d'eligibilite II-4-1 A partir du dossier fourni par le beneficiaire, la direction technique de l'Agence evalue chacun des indicateurs enumeres au paragraphe II-3. Une commission composee du Directeur General de l'Agence, du Directeur Technique, du Directeur Financier, et le cas echeant d'un ou plusieurs experts invites a l'initiative du Directeur General, se reunit le premier et le troisieme mardi de chaque mois - ou, s'ils sont feries, le premier jour ouvrable suivant - pour examiner les dossiers de projets inscrits a son ordre du jour par la direction technique. Sauf cas de force majeure, le delai entre la soumission d'un projet et son examen par la commission ne doit pas exceder un mois. Le Directeur General priside les dibats. La decision d'acceptation ou de rejet est prise a la majoriti absolue; en cas de partage igal des voix, celle du prisident est priponderante. II-4-2 Les projets dont le coat estimi depasse 125 millions de FCFA seront soumis a l'IDA pour approbation avant d'etre difinitivement acceptes. A cette fin, l'Agence communique au Reprisentant risident de la Banque mondiale le dossier du projet accompagni du proces-verbal de la commission (cf II-4-4 infra). En l'absence de reponse de l'IDA dans un delai d'un mois, le projet est riputi approuvi. L'IDA approuvera les premiers sous-projets jusqu'a un cout total de US$4.25 millions. II-4-3 Pour etre iligible, un projet doit respecter les conditions suivantes : (a) atre inclus dans le classement des travaux de la Section III; (b) avoir une utiliti economique et sociale demontrie; (c) coat total inferieur au reliquat des credits disponibles de l'Agence; (d) delai de lancement du chantier inferieur a trois mois; (e) coat des activites prialables au lancement du chantier inferieur a 10% du coat total estimi du projet; (f) part de la main-d'oeuvre (charges comprises) superieure a 20Z du coat total estime du projet; (g) duree moyenne des emplois criis par l'execution du projet superieure a deux semaines; (h) presence d'au moins deux entreprises classies (cf section III) pour la qualification requise et la zone giographique d'exicution du projet;  - 49 - ANNEX 2 (i) possibilite de mobiliser sans coat supplementaire le materiel requis sur le lieu du chantier dans les delais prevus pour le lancement de celui-ci; (j) absence de double emploi avec un autre projet dont le financement est deji assure; (k) projet n'ayant pas ete elimine du P.I.E.; (1) capacite financiere et technique du beneficiaire a entretenir le resultat des travaux et a assurer la maintenance des equipements mis en place; et (m) repartition equitable des projets entre les differentes regions du pays. II-4-4 Les travaux de la commission font l'objet d'un proces-verbal. Les motifs d'acceptation ou de rejet des projets examines sont consignes explicitement dans le proces-verbal. Ils se referent obligatoirement aux criteres enumeres au paragraphe II-3 et dans toute la mesure du possible a des indicateurs quantifies de ces critares. II-5 Relations avec le beneficiaire au cours de l'evaluation La direction technique est habilitee i demander au beneficiaire des renseignements complementaires ou des precisions au cours de l'evaluation et i prescrire un delai de reponse en fonction de son planning de soumission des projets a la commission. Lorsqu'elle constate que le dossier presente est manifestement incomplet, elle peut renvoyer ce dossier au beneficiaire et demander que le dossier complete soit soumis a nouveau a l'Agence dans les memes formes que le dossier initial. L'absence de reponse par le beneficiaire a des demandes d'informations compl&mentaires dans les dilais prescrits peut etre un motif de rejet du projet. II-6 Notification de l'acceptation ou du relet du projet A l'issue de chaque seance de la commission, le Directeur General notifie par ecrit a chacun des beneficiaires des projets examines, la decision relative au projet qui le concerne et precise les motifs essentiels de cette decision en cas de rejet. II-7 Recours du beneficiaire Le beneficiaire d'un projet ayant fait l'objet d'un rejet peut demander communication du proces-verbal de la commission et du dossier d'evaluation du projet rejet;. En cas de contestation du bien-fonde de la decision, il expose par ecrit les arguments precis mettant en cause les motifs de la decision. A reception de cette lettre, le Directeur General de l'Agence peut decider d'inscrire a l'ordre du jour de la plus prochaine commission un reexamen du dossier. I1 reste neanmoins seul juge en la  - 50 - ANNEX 2 matiere et tout rejet a l'issue d'un second examen par la commission est definitif. II-8 Signature de la Convention de Maltrise d'Ouvrage Delegu~e L'acceptation definitive d'un projet est subordonnee a la conclusion entre le Benificiaire et l'Agence d'une convention de maitrise d'ouvrage deleguee conforme au modele-type annexe a la presente section. La convention est signee dans les meilleurs delais apres la seance de la commission ayant decide l'acceptation du projet. Le cas echeant des conventions annexes reglent des dispositions particulieres relatives a l'intervention du beneficiaire dans l'execution du projet. Ces conventions peuvent notamment concerner la mise a disposition de materiel (cf annexe 2 a la presente section), l'execution par le beneficiaire de certains travaux complementaires a ceux du projet, ou la participation du beneficiaire au controle des travaux. Les conventions annexes sont signees en meme temps que la convention de maltrise d'ouvrage delguee. Elles doivent avoir ete preparees au cours de l'evaluation du projet et versees au dossier examine par la commission.  - 51 - ANNEX 2 Section II - Annexe 1 CONVENTION-TYPE DE MAITRISE D'OUVRAGE DELEGUEE ENTRE , represente par , denomme ci-apres "le Beneficiaire"; ET L'Agence T.I.P.E., representee par son Directeur General M. denommee ci-apres "l'Agence"; il a ete convenu ce qui suit : Article 1 : La presente convention fixe les conditions d'execution du projet suivant (designi ci-apres "le Projet") situe a , (ou qui concerne la zone delimitee au plan annexe). Ce projet est classe dans la categorie _ , selon la classification figurant a la section III-1 du Manuel des Procedures de 1 'Agence. Article 2 : Le Beneficiaire delegue a l'Agence, qui accepte l'ensemble des prerogatives, droits et obligations afferent a la maltrise d'ouvrage des travaux, etudes et autres prestations necessaires a l'execution du Projet. L'Agence assume en particulier a ce titre les responsabilites suivantes : choix des maltres d'oeuvre et supervision des etudes prealables, preparation des dossiers de consultation des entreprises ou d'appels d'offres, choix des entreprises (sous reserve des dispositions de l'Article 3 ci-apres), signature des marches, controle et reception des travaux, paiement des entreprises. Article 3 : Le Beneficiaire peut se faire representer en qualite d'observateur aux commissions d'attribution des marches relatifs au Projet. La date et le lieu de reunion de ces commissions lui sont notifies par l'Agence au moins cinq jours ouvrables avant la reunion. Toutefois, l'absence du representant du Beneficiaire n'empeche pas la commission de sieger et de faire valablement son choix. Article 4 : Le Beneficiaire doit assister a la reception definitive des travaux dont la date lui est notifiee par l'Agence au moins cinq jours ouvrables avant cette reception. L'avis du representant de l'Agence est toutefois preponderant pour accepter ou refuser la reception. Toutefois, les  - 52 - ANNEX 2 reserves eventuelles du beneficiaire doivent atre portees sur le proces- verbal de reception. Article 5 : L'Agence ou les maltres d'oeuvre engages par elle pour l'execution du Projet peuvent a tout moment consulter le Beneficiaire ou requerir l'exercice des prerogatives administratives de celui-ci pour des questions interessant l'execution du Projet. Le Beneficiaire fait diligence pour repondre a ces consultations ou requetes. Article 6 : Le Beneficiaire s'interdit toute intervention autre que celles mentionnees aux articles 3, 4 et 5 ci-dessus, dans l'execution du Projet et notamment dans le deroulement des travaux et les relations avec les entreprises. Article 7 : Le beneficiaire slengage a se doter des moyens financiers et techniques necessaires a l'entretien du resultat des travaux et a la maintenance des equipements mis en place; Article 8 : L'Agence est seule responsable vis-a-vis des tiers impliques dans l'execution du Projet. Elle prend ou fait prendre toutes les assurances nicessaires pour couvrir les risques correspondants. Article 9 : La prisente convention prend fin lors de la remise des ouvrages au Binificiaire prevue a titre indicatif a la date du . Au cas ou cette date serait reportie de plus de trois mois, l'Agence en avise le Binificiaire dans les meilleurs dilais. Le Binificiaire est tenu d'accepter la remise des ouvrages en l'eat. Les garanties iventuelles en vigueur a la date de remise des ouvrages sont transferies au Benificiaire. Article 10 : L'ensemble des coats affirent a l'execution du Projet est a la charge de l'Agence. Fait a le Pour le Beinificiaire : Pour l'Agence :  - 53 - ANNEX 2 Section II - Annexe 2 CONVENTION DE MISE A DISPOSITION DE MATERIEL ENTRE , represente par , denomme ci-apres "le Beneficiaire"; ET L'Agence T.I.P.E., representee par son Directeur General M. , denommee ci-apres "l'Agence"; il a ete convenu ce qui suit : Article 1 : La presente convention complete la Convention de Maltrise d'Ouvrage Deleguee en date du _ entre le Beneficiaire et l'Agence pour l'execution du projet suivant (designe ci-apres "le Projet") Article 2 : Le Beneficiaire met i la disposition de l'Agence pour une periode de et a titre gratuit le materiel suivant L'etat de ce materiel fait l'objet d'un proces-verbal annexe a la presente convention. Article 3 : A l'issue de la periode de mise i disposition il est dresse un nouveau proces-verbal de l'etat du materiel. L'Agence garantit la restitution du matiriel dans l'etat auquel il se trouvait lors de la mise i disposition. Cette obligation de restitution est regie par les articles 1880 a 1886 du code civil applicables i celle dont est tenu l'emprunteur a usage. Article 4 : L'Agence peut confier l'utilisation du materiel i l'entreprise chargee de l'execution des travaux du Projet. Elle prend les dispositions necessaires pour faire assurer l'entretien de ce materiel et couvrir l'ensemble des risques relatifs i l'utilisation de celui-ci.  - 54 - ANNEX 2 Article 5 t Tous les frais afferent i la mise en oeuvre du materiel (notamment personnel, carburants et autres matieres consommables, entretien, materiaux) sont a la charge de L'Agence. Article 6 : La prolongation eventuelle de la periode de mise a disposition fixee a l'Article 2 fait l'objet d'avenants a la presente convention. Fait a le _ Pour le Beneficiaire : Pour l'Agence :  - 55 - ANNEX 2 Section III Procedure de preselection et de classement des entreprises III-1 Classement des travaux : Les travaux susceptibles d'etre executes dans le cadre du projet sont classes en deux categories de sous-projets : (1) Les sous-projets "Travaux" pour lesquels 60% des fonds seront alloues comprendront : (a) travaux de drainage des points bas comportant la realisation d'avaloirs, aqueducs enterres, regards, puisards, tetes de buse, perres, etc...; (b) petits travaux d'entretien et de rehabilitation d'infrastructures (comblement de ravines, amenagement de trottoirs, reparation de caniveaux et de petits ouvrages d'assainissement); (c) travaux similaires i ceux de la categorie (b) executes sur une base periodique et necessitant de ce fait une organisation de tournees (comblement de nids de poules); (d) construction d'edifices simples; (e) reparation de batiments : cette categorie est elle-meme subdivisee par corps de metiers (enduits et peinture, menuiseries, electricite, couverture, petits travaux de ma9onnerie); (f) demolition de batiments mena9ant ruine avec recuperation de materiaux; (g) travaux de debroussaillage et de terrassement (accotements, talus, gabions) impliquant la realisation de profils pre-etablis; et (h) travaux de conservation des eaux et des sols (C.E.S.) et de defense et de restauration des sols (D.R.S.). (2) Les sous-projets "Services" pour lesquels 40Z des fonds seront alloues, comprendront : (a) travaux ponctuels de nettoyage (curage) d'elements du patrimoine public : desensablement de voies, curage de fosses et de caniveaux de drainage, ramassage ponctuel d'ordures accumulees, etc;  - 56 - ANNEX 2 (b) travaux similaires a ceux de la categorie (a) executes sur une base periodique et necessitant de ce fait une organisation de tournees; et (c) travaux de plantations et d'espaces verts. III-2 Classement des entreprises III-2-1 Au debut de ses activites, l'Agence assure au Niger, par voie de presse, de radio et de television, une large publicite a ses objectifs et ses modalites d'action et notamment aux conditions dans lesquelles une entreprise peut se mettre en situation d'executer des travaux pour le compte de l'Agence (cf II-2-2 ci-dessous). III-2-2 A tout moment une entreprise peut demander a etre inscrite au registre des entreprises qualifiees pour executer des travaux entrant dans une ou plusieurs des categories definies en III-1. A cet effet, l'entreprise doit fournir un dossier comportant : - la raison sociale de l'entreprise, son statut, son siege social, son numero d'inscription au registre du commerce, le montant de son capital social et le nom et l'adresse de la personne habilitee a representer l'entreprise; - tune attestation bancaire precisant sous quelles conditions l'entreprise peut beneficier d'une caution; - tune declaration certifiant que les dirigeants de la societe ne tombent sous le coup d'aucune interdiction d'exercer; - la delimitation, sous forme d'une liste de departements, de la zone geographique sur laquelle I'entreprise est prete a intervenir; - tune liste de references relatives aux categories de travaux pour lesquelles Ilentreprise demande son classement comme entreprise qualifiee; chaque reference sera accompagnee des indications suivantes : * Description sommaire des travaux et corps d'etat traites par l'entreprise; * Partie contractante et proprietaire des ouvrages; * Montant du marche et type de marche; * Duree du chantier depuis l'ordre de service initial; * Statut du chantier (en cours, termine, receptionni provisoire, receptionni difinitif); * Date privue ou constatee de fin de chantier; * Statut du marchi (soldi ou non); * Une liste indicative du matiriel dont dispose l'entreprise en propre et en location ou pret.  - 57 - ANNEX 2 III-3 Examen des demandes de classement Une commission composee du Directeur General de l'Agence, de son Directeur Technique et de son Directeur Financier, statue sur les demandes d'inscription des entreprises. Elle decide librement de les accepter ou de les rejeter. Un proces-verbal de chaque reunion eat redige. Le Directeur General notifie la decision de la commission et, le cas echeant, les motifs du rejet dans un delai d'un mois a compter de la reception de la demande. Une entreprise ayant fait l'objet d'un rejet ne peut presenter de nouvelle demande pour la meme categorie avant un dilai de six mois. III-4 Reclassements et declassements A l'issue ou au cours de l'execution par l'entreprise de travaux confies par l'Agence, celle-ci peut proceder a un reexamen du classement de l'entreprise pour etendre ou reduire la liste des categories de travaux pour lesquels l'entreprise est classee. La decision est prise et sa notification faite dans les memes formes que celles qui s'appliquent lors du classement initial et implique les memes consequences. 11I-5 Droits des entreprises classees Toute entreprise regulierement inscrite, a la date de lancement d'une consultation, au registre des entreprises qualifiees pour la categorie de travaux faisant l'objet de la consultation et pour une zone geographique comprenant le lieu d'execution des travaux est invitee par lettre i venir retirer un dossier de consultation soit au siege de l'Agence, 8oit aupres d'un representant local de l'Agence nommement designe. L'entreprise peut renoncer a presenter une offre sans que ceci remette en question son classement ni les droits y afferent.  - 58 - ANNEX 2 Section IV Procedures d'attribution des marches et contrats de prestations de services Sous-Section IV-1 Procedure standard Marches dont le montant estime est inferieur a 125 millions de FCFA IV-1-l Consultation des entreprises Dossiers de consultation Le dossier de consultation est prepare sous la responsabilite de l'Agence avec l'assistance technique du maitre d'oeuvre (cf section V) et comporte les pieces suivantes : (1) Un projet de contrat cor.forme a un modele-type (cf Section IV, Annexe 1) qui precise notamment la description, l'organisation et la localisation des travaux a realiser, la duree prevue du chantier, le montant estime du marche et l'echeancier des paiements. (2) Le bordereau des prix qui est un document contractuel prioritaire sur les autres ou figure une description precise des prestations et suj&tions comprises dans chacune des taches faisant l'objet d'un prix particulier lii a une unite de reference (m2, m3, etc.). (3) Le detail estimatif des travaux, assorti d'un metre des quantites, d'un planning des travaux, de plans de situation ou de plans types eventuels; le montant estime figurant au projet de contrat resulte de l'application des prix unitaires au quantitatif. (4) Le cahier des dispositions de la consultation qui mentionne notarment : (a) la liste des criteres que la commission d'attribution des marches prendra en consideration pour faire son choix lors du depouillement de la consultation; (b) la date limite des depots des soumissions contre recepisse au siege de l'Agence ou aupres de son representant local; et (c) la date de la commission d'attribution.  - 59 - ANNEX 2 Les pieces (1), (2) et (3) sont destinies a devenir, apres amendement eventuel, les pieces contractuelles du marche; la piece no 2 (bordereau des prix) est prioritaire sur les autres et ceci est precise dans le contrat. Soumission des offres Les soumissions prennent la forme d'une lettre de soumission signee par le representant autorise de l'entreprise et accompagnee des trois pieces contractuelles (projet de contrat, bordereau des prix, detail estimatif) paraphees apres amendement eventuel; les soumissions sont deposees sous pli cacheti au siege de l'Agence ou aupres du representant local de celle-ci, dans les delais prevus. Les soumissions doivent obligatoirement preciser - le montant du rabais propose par l'entreprise sur le prix de reference estime pour l'ensemble des travaux; - toute proposition eventuelle de modification des prix unitaires mentionnes dans le bordereau des prix; - toute proposition evenL_elle de modification de la duree ou du planning du chantier et/ou de l'echiancier des paiements; - la description des modifications eventuelles proposees par rapport a llorganisation et au planning des travaux, en fonction des quantites de travaux du detail estimatif; - les soumissions seront ouvertes en public et les soumissionnaires ou leurs representants peuvent atre presents. Toute disposition du contrat ou des autres documents figurant au dossier de consultation qui ne ferait pas l'objet d'une proposition de modification dans la soumission est reputee acceptee par l'entreprise. IV-1-2 Attribution des marches La commission La commission d'attribution se reunit, sous la presidence du Directeur General de l'Agence ou de son representant au siege de 1'Agence ou a tout autre endroit prealablement designe par decision ecrite du Directeur General. La commission est composee de son president, du Directeur Technique de l'Agence ou de son representant, du Directeur Financier de l'Agence ou de son representant. Les decisions sont prises a la majorite absolue, la voix du president etant preponderante en cas de partage egal des voix. La commission peut se faire assister d'un representant du maltre d'oeuvre designe pour assurer le controle des travaux. Ces derniers ne participent pas au vote.  - 60 - ANNEX 2 Prerogatives de la commission La commission choisit librement l'offre qu'elle juge la plus interessante. Toutefois si cette offre n'est pas la moins disante, la commission motive sa decision en reference aux criteres enumeres dans le dossier de consultation. Les motifs de la decision sont consignes au proces-verbal de la reunion. Des que la commission a fait son choix, l'Agence avise tous les autres soumissionnaires du rejet de leurs offres et amende le contrat et les pieces annexes proposes dans le dossier de consultation en fonction des dispositions de l'offre retenue sans ouvrir aucune autre forme de negociation avec ltentreprise attributaire. Le contrat est signe immediatement par les deux parties. Au cas ou aucune offre n'est jugee satisfaisante, la commission peut declarer la consultation infructueuse et proceder a une negociation directe avec une entreprise de son choix parmi les entreprises consultees, que celle-ci ait ou non presente une soumission. Dans les cas precis ou il y aurait moins de cinq soumissionnaires ou pour tout marche dont le coat estimatif est inferieur a 125 millions de FCFA, la commission soumettra sa decision a l'IDA pour approbation avant notification de sa decision a l'entreprise retenue.  - 61 - ANNEX 2 Sous-Section IV-2 Procedure de l'Appel d'offres international Marches dont le montant estime est superieur ou etal a 125 millions de FCFA Les marches dont le montant estime depasse 125 millions de FCFA sont passes en application de la procedure d'appel d'offres international, conformement aux dispositions des "Directives pour la passation des marches finances par des prets de la Banque mondiale ou des credits IDA" publie par la Banque mondiale et l'Association internationale de daveloppement en mai 1985. Sous-Section IV-3 Procedures applicables pour les prestations de consultants, et les contrats d'ingenierie et de maitrise d'oeuvre IV-3-1 La procedure applicable aux prestations de consultants est celle qui est d&erite dans les "Directives pour l'emploi des consultants" publiee par la Banque mondiale et l'Association internationale de developpement en aout 1981. IV-3-2 La procedure applicable aux contrats d'ingenierie et de maltrise d'oeuvre est decrite a la section V-4 ci-apres.  - 62 - ANNEX 2 Section IV - Annexe 1 Marche-type de travaux Marche No .. .............. ................... passe apres appel d'offres restreint du .... ...... /19 ... concernant le Sous-Projet designe sous l'appellation : ...................... ........................................js....... @ SOUSCRIT LE : ....................................... APPROUWVE LE : ...........................0............ NOTIFIE LE : ...................................... ENREGISTRE LE : .................................. ENTRE : l'Agence T.I.P.E., denommie ci-apres "1'AGENCE", representee par son Directeur General M. M d'une part, ET .... ........ .. **.* ................ .*v... . . . . .. . . . . .. . . . . . Represente par ................................................ agissant en qualite de . ................. ... .au nom et pour le compte de ladite entreprise et disigne ci-apres "L'ENTREPRENEUR"; d'autre part, IL A ETE CONVENU CE QUI SUIT : ARTICLE 1 : OBJET DU MARCHE Le present marche a pour objet 1'execution de travaux de * *...................................................... decomposes en ........... ..... taches distinctes faisant chacune 1'objet d'un prix unitaire calculi sur la base d'une unite de quantite correspondante, conformement au Bordereau de pix joint en annexe.  - 63 - ANNEX 2 ARTICLE 2 : LOCALISATION DES TRAVAUX Les travaux decrits i l'article 1 se derouleront dans la (les) commune(s) de : ............................................................ ........................au(x) lieu(x) ditos : .................................... ARTICLE 3 : MONTANT DU MARCHE Le montant hors taxes du marche, tel que mentionne au Detail estimatif, s'eleve a la somme de : ............ FCFA sur la base de prix au . . . .19... Les prix indiques au Bordereau des prix ont ete evalues en tenant compte des couts de revient de la main-d'oeuvre, y compris les charges sociales, du coat total hors taxes des fournitures rendues sur le chantier, du coat de revient du materiel de chantier, y compris les provisions pour amortissement, ainsi que des frais d'installation du chantier, des frais generaux et divers de chantier, sujt&ions d'execution, aleas et benefices. Le montant TTC du marche est de ARTICLE 4 : ORGANISATION ET DUREE DES TRAVAUX Les travaux se deroulent selon la decomposition en ..... taches decrites a l'Article 1. Pour chacune de ces taches, l'execution est confiee a un nombre determine d'equipes composees de manoeuvres et d'ouvriers de qualification differente. La composition et le nombre d'equipes necessaires, en fonction du volume de travaux et des rendements estimes, sont donnes en annexes du present document (schema d'organisation). (Le soumissionnaire est invite a controler ce schema. a le modifier eventuellement et a le compliter afin de fournir un plan d'organisation concret et detaille du chantier). En se fondant sur un nombre moyen de .......... jours travailles par mois, le present marche est conclu pour un delai d'exicution de ........... mois, i compter de la date de l'ordre de service fixant le commencement des travaux commandes. La date prevue d'achevement des travaux est le .... ......... ou toute autre date agreee entre l'Agence et l'Entrepreneur.  - 64- ANNEX 2 ARTICLE 5 : PENALITES DE RETARD En cas de retard dans l'execution des travaux par rapport aux delais fixes dans l'ordre de service, l'entrepreneur est passible d'une penalite de 1/1 OOOe par jour de retard sur le montant des travaux ordonnes, sauf cas de force majeure. Dans ce cas, l'Agence apprecie et notifie a l'entreprise le delai supplementaire accorde. ARTICLE 6 : REGLEMENTS ET ECHEANCIER DES PAIEMENTS I1 est prevu d'etablir des decomptes mensuels sur la base de situations de travaux ou apparaitront clairement le montant des travaux realisis dans le mois considere, ainsi que le montant cumule des travaux realises au dernier jour de ce mois. Ces montants de travaux sont calcules par reference aux prix du Bordereau des prix, par application i ces prix des quantites reellement exicutees, apres controle du maitre d'oeuvre designe par l'Agence. Les paiements ont lieu i Niamey par les soins de la direction financiere de l'Agence sur presentation de decomptes vises par la direction technique et accompagnes de situations de travaux certifiees par le maltre d'oeuvre. Le delai de paiement ne peut exceder trente (30) jours a compter de l'acceptation du decompte mensuel de 1'Entrepreneur, par les responsables de la direction technique de l'Agence. ARTICLE 7 : ACTUALISATION ET REVISION Le marche ne prevoit pas d'actualisation et de revision de prix, compte tenu des delais de realisation prevus.  - 65 - ANNEX 2 ARTICLE 8 : AVANCE AU DEMARRAGE DES TRAVAUX Une avance au demarrage des travaux cautionnee a 100% ne depassant pas 20% du montant du marche est accordee i l'Entrepreneur, au moment de la notification de l'ordre de service. Cette avance est repartie a part egale sur les deux (2) premiers mois de travaux, soit un versement i hauteur de 50Z du montant accorde, au moment du demarrage effectif du chantier constate par la direction technique de l'Agence. Le solde, soit 50% du montant accorde, vient alors s'ajouter au reglement de la premiere situation de travaux, apres controle du maitre d'oeuvre designe par l'Agence et visa de la direction technique. Ce versement du solde de l'avance au demarrage est ainsi lii a l'acceptation des montants presentes dans la premiare situation, dont le total ne peut en aucun cas atre inferieur a : ................. FCFA, soit ..... Z du montant total du marche. - Le remboursement de l'avance au demarrage est echelonne sur une pnriode de travaux comprise entre le mois ou le montant cumuli de travaux realisis atteint 50% du montant du marche, et la date d'achevement du chantier. Le montant mensuel de remboursement de l'avance au demarrage est constant et igal au rapport du montant total de l'avance par le nombre de situations restant a itablir pendant la piriode de rifirence. Ce remboursement vient en diduction des situations restant a itablir. ARTICLE 9 : RESPONSABILITE DE L'ENTREPRENEUR L'Entrepreneur est directement et personnellement responsable vis-a -vis de l'Agence, de la bonne marche et de la qualiti des travaux. L'Entrepreneur s'engage a fournir au maltre d'oeuvre disigni par l'Agence, tous les renseignements, metres, calculs et tous justificatifs qui pourraient lui etre demandis. ARTICLE 10 : CONTROLE DES TRAVAUX Les travaux sont places sous le controle du maitre d'oeuvre disigni par l'Agence. L'Entrepreneur doit difirer a tous les ordres icrits ou verbaux du maltre d'oeuvre, a charge pour lui de formuler iventuellement ses reserves dans un dilai de dix (10) jours ouvrables. L'ordre verbal sera confirmi par la suite par icrit dans un delai raisonnable. ARTICLE 11 : Main-d'oeuvre - HYGIENE L'Entrepreneur est soumis pour 1'emploi de la main-d'oeuvre, aux regles qui resultent des textes en vigueur au moment de l'exicution des travaux et en particulier a la convention collective interprofessionnelle du 15 dicembre 1972 et ses annexes.  - 66 - ANNEX 2 ARTICLE 12 : CONTESTATIONS ET LITIGES Si au cours des travaux, des difficultes s'elevent entre les representants du maitre d'oeuvre designe par l'Agence et l'Entrepreneur, il est prevu d'en referer au responsable du maltre d'oeuvre qui fait alors connaitre sa decision. Si l'Entreprise n'accepte pas cette dicision, chacune des parties, a savoir l'Agence d'une part et 1'Entrepreneur d'autre part, sloblige a solliciter l'avis d'un arbitre; en cas de desaccord des deux arbitres, ceux-ci disignent un troisieme arbitre qui doit trancher en derniere instance selon les regles en vigueur au Niger. ARTICLE 13 : DOCUMENTS CONTRACTUELS L'ensemble des documents inumeres ci-dessous, dont l'Entrepreneur assure avoir pris connaissance, constitue un tout difinissant les conditions du marchi. - Le prisent Projet de contrat - Le Bordereau des prix - Le Detail estimatif - Le Cahier des dispositions ARTICLE 14 s Le prisent contrat entre en vigueur des sa signature par les deux parties. LU ET ACCEPTE Niamey, le .............19.. L'ENTREPRENEUR LE DIRECTEUR GENERAL DE L'AGENCE  - 67 - ANNEX 2 Secction IV - Annexe 2 Lettre de soumission Appel d'offres du .........19.. concernant le Projet Je soussigne...................................................... agissant en qualite de ..................................... .au nom et pour .................................................. denomme ci-apres "L'Entrepreneur", inscrit au registre du commerce de ................... sous le numero ................ domicilie a l'adresse suivante : *.*v**@@.................................... v ......... *+......... **...... + telephone ............ et dont le numero de compte contribuable est le suivant ~~... ......................... ......... .* .. v Apres avoir pris connaissance du dossier d'appel d'offres relatif aux travaux mentionnes ci-dessus, et notamment des quatre documents - Projet de contrat - Bordereau des prix - Detail estimatif - Cahier des dispositions de l'appel d'offres Apres avoir apprecie a mon point de vue et sous ma responsabilite, la nature et les difficultes de l'entreprise. Accepte sans restriction toutes les dispositions du Cahier des dispositions de l'appel d'offres. Remets, revetu de ma signature, un Bordereau des prix rempli par moi conformement au modele qui m'a ete remis. M'engage, en tant qu'entrepreneur, a executer les travaux designes ci-dessus, conformement aux prescriptions du Bordereau des prix. Remets, revetu de ma signature un Projet de contrat, incluant mes propositions de modifications des dispositions de ce contrat. L'Agence d'Execution se liberera des sommes dues par elle et constatees dans les dacomptes de situations de travaux, en faisant crediter le compte bancaire ouvert au nom de : ............ sous le N