Niger - Fourth Highway Project

Document of The World Bank FOR OrnCLAL usE oNLY Rejpwt No 12007 PROJECT COMPLETION REPORT REPUBLIC OF NIGER FOURTH HIGHMY PROECT (CREDIT 1394-NIR) JUNE 23, 1993 MICROFICHE COPY Report No.:12007 NIR Type: (PCR) Title: FOURTH HIGHWAY PROJECT (CR1394 Author: WATKINS, HELEN Ext.:31708 Room:T9102 Dept.:OEDD2 Infrastructure Operations Division Country Department v Africa Region Thi document has a restricted distribution and may be usd by reipients only in the perfomance of hir official duties. Its contents may not otherwise be disclosed without World Bank authorization.  ELENCY EGUIVALENTS Currency Unit = CFA Franc (CFAF) US$ 1.0 (1983) = CFAF 340* US$ 1.0 (1984) = CFAF 437 US$ 1.0 (1985) = CFAF 449 US$ 1.0 (1986) = CFAF 346 US$ 1.0 (1987) = CFAF 301 US$ 1.0 (1988) = CFAF 298 US$ 1.0 (1989) = CFAF 319 USS 1.0 (1990) = CFAF 272 USS 1.0 (1991) = CFAF 303 * rate used in the SAR E1L YEAR October 1 - September 30 (up to 1989) January 1 - December 31 (from 1990 on) A_EsmAR RfMi AfDB African Development Bank CPTP Centre de Perfectionnement des Travax Publics DIP Direction des Travaux Public (Directorate of Public Works) EDF European Development Fund EEC European Economic Community ERR Economic Rate of Retum FAC Fonds d'Aide et de Cooperation FNI Fonds National d'Investissement (Naonal Investment Flund) LNTP Laboratoire Natior,al des Travaux Publics (Niger) MTPU Ministre des Travaux Publics, et de l'Urbanisme (Ministry of Public Works and Hc, -ing) OPEC Org&anization of Petroleum Exporing Countries RMU Road Management Unit RRP Report and Recommendon of the President SAR Staff Appraisal Report SDR Special Drawing Rights TA Technical Assistance  FOR OFFICIAL USE ONLY THE WORLD BANK Washingoo. D.C. 20433 U.S.A Office of Director-General Operations Evaluation June 23, 1993 MEMORANDUM TO TEE EXECUTIVE DIRECTORS AND THE PRESIDENT SUBJECT: Project Completion Report on Niger Fourth Hithwav Proiect (Credit 1394-NIR) Attache' i8 the "Project Completion Report on Niger-- Fourth Highway Project (Credit 1394-NIR)" prepared by the Africa Regional Office. Part 1I contains the Borrower's comments. The Credit (SDR21.9 million of June 1983) was to assist implementation of a road maintenance program and to create a staff training establishment in the Ministry of Public Works and Urbanism. The project was identified in December 1977 and became effective in February 1984, more than six years later. Cofinancing Was not sought and the credit amount was reduced at the last minute. The PCR gives a candid, meticulous and elegant account of how the project unfolded. Particular attention is focussed on weaknesses of IDA's performance; specifically in preparation (economic justification and financing of the Zinder-Agadez Road), and In lack of coordination with other potential lenders. Apparently, the lessons have been useful in the design of subsequent projects. The addition of road works, slow procurement, and local fund shortages caused delays and the project was completed in June 1991, two and half years behind schedule. However, all project objectives were fully realized. Both a road maintenance capacity and a training center were successfully established. Nevertheless, both institutions have deteriorated due to staff turnover and insufficient financial support by the Goyernment. Overall, the project is rated as satisfactory, its sustainability as uncertain, and its institutional impact as substantial. No audit is planned. This dcbK>let has a restricted distributfon and may be used by rec,ipfents only fn the performzrae of thefr offfefal dutfes. Its contents may not otherwfse be dfsc(osed wfthout Wortd Bank authorization.  FOR OMCIAL USE ONLY PR.EF'AC * C1 RDURT D BWM MyXP EQMRIC CONEA92 LRPOR PREFACE ...................................................... i EVALUATRiN SUMIMARY ........................................... H PART I. PROJECT REVIEW FROM BANK'S 9T.CTVE .................. 1 A. P ro j ete1ty .........................................nt i t y 1 B. Project Background 1....................................... C. ProjectObjcdvesanud Descrption ............................. 2 D. Projects D erani gton ...............................an organ zation 3 E. Project l aon ..................................... 4 P. Mjor ResultsoftheProject ................................. 6 G. Icje Sustainability.. 9 R. AssocationPformnc ............. . ...................... 9 1. Borrower Performance. .................................... 11 J. Project Rationship . ...................................... 11 K, Consuling andContat Serices ............................. 12 L. ProjeDc u n ....................................... 12 PART IL PROJECT RE F3NW FROM BORROWR'S .............. 12 PART ML SfATINTCAL PIN RMALTION .................... ........... is A. Reatd Bank Loans d, Credis . ................................ 15 B. PojeaTieable ........................................... 16 C. Creit Data . .............................................. 17 Oi Credi. . ............... 17 (ii)Allocation f CreditProc ees .............................. 18 D. ProjetCosts .............................................. 19 E. Compliatce hCdkCovenn ........ithCrdit........................ 20 F. UseofBankReources ....................................... 21 (l Staff lnpusbyStageof ProjecCydceinStaff Wees ..... .......... 21 i MissionDat ................... ..................... 22 G. E nomic Revation of the Paved Road Maln ana nPtm .... ....... 23 This document has a restricted distdibution and may be ued by recipients only in the performance of their ofcial duties. its contents may not othemwie be disclosed without World Bank authoization.  PROJECT COMPLEnON REPORT REPUBUC OF MGER FOURTH HIGHWAY PROJECT CREDT 1394-NMR 1. This is a Project Completion Report (PCR) for the Fourth Highway Project for which Credit 1394-NIR In the amount of SDR 21.9 million or US$23.6 milliov equivalet was approved on June 28, 1983. Ibo Credit was closed oL June 30, 1991, two year behind scheue. k was fully disbursed, wit te last disbursement on Apri 26, 1991. 2. The PCR was prepared by the Infaucture patio Dision of the Sahelian Deatmet, Africa Regio 3. Preparion of the PCR is based on the m and of the Presient, the Staff Appraisal Report, the Credit Ae n supervsion report, the correspondence files and nevie with Bank staff. Part II, requested in a letter dated June 25, 1991, was evtintuaily sbmittd on May 20, 1992. 4. No co-donrs wee involved in fiancing the Project  il PROJECT COMPLITION REPORr REPUBC OF NIGER FOUH HIGHWAY PROJECT CREDIT 1394NIR ALUAflQK&aXu i. The objecdves of the Project woe to: a) bstiute and begin implen of pram of planned prevenive and to sat up a Road Management Uni (MWU) in tho Miistre des Travau Publics at de L'Urbaciwe (MTPU); and b) to esutblish the trng of fTPU employees on a permanetm basis (para. 7). ii. Execution of dte Project got off to a fast starL However, the adlition of extrroad work to the Project scope, dlow pmro ent and a shortage of loca fig over the latter years of the Projea delayed competon (pas. 17-19). Il. Mhe objecte of th Projec were fiy reaizd. Addiiona roatd wor we cied out over d thatfor atappl. Two Impoa InIttutdos, the RMU ad the training center (CPTP), were succesiy establishe ',aras. 23-25). IV. A study of a large in the Zlw-Apdez road which the Govermen had undertaken to bouild wi fei financing, wa added to the ProjcL TI study showed a low to natie ra of retun, but despit the son objections of the Association, th Govme.t we ahead with the conucdion of hs road (paws. 27-36). V. Te re d economic re of retur islowe thn estied at appraisal (32% compad to 43%) but still high eough to fimly establish the econoic justification of the Project (pa 37). vi. TIh emphas pacd an Institution buling unde the Proect led tD the succoisl estblismnt of the RMU d CPTP. Unfotunay, both have nrw ove h Ias two yes and will hv t be sotregthd If they are to pla y roles In the exacto of th on-going and prposed project (p 38). vU. ITh Project dtd d a mti-co ponen project an be successy mecuted by a coopeatve Borowe, If th project is wel prepared, closy onhored by IDA and spevised by compt consultants (pam. 41).  iii viii. The Asociadon should avoid long delays in the preparation of its projects (pi. 42). ,x. lho Associ4tion was remiss in not ensurng more extensive inquiries in the donor community which might have avoided the failure to obtain needed co-financing or the Project (Par. 43). x. Ihe lack of cooper-ion among divisions responsible for project doumentauon which was evident during the preparation of this Project should not be encounted in the future, as the Bank re- organiion in 1987 placed responsibility for Project management under a single unit (paras. 43 and 44). xi. The Association should not make last minte reductions in the amount of a creit which Is about to be negoiated, without jstfiable caus (parw. 45 and 46). xii. The Bak's beatd response to the fiaing of the 74ider-Agadez road sem to indicate that the Association might have coordinated more closdy with other donors (parn. 47).  MUBLC OF NIE FOURTH }IGHWAY PROJECT CREDIT 1394-NEL PROJECT COMPLErION REPORT PART I. EBW= REE FM BNK fi A. frUdontUt Project Name: Fourth Highway Project Credit No.: Credit 1394-NIR RVP Unit: Africa, Sahelian Deptmet Inrastructure Operations Division Country: Ropublic of Niger Sector: Transportaion - h<2Sec Bacsemdlr 1. Niger is a landlocked country with a resultant high cost of transport. Most of the population I cnentated along its soutiern border where the rainfall is generaly sufficit for some agricutural producton and livestock, although a severe and long drout took place from 1970-75. A uraim boom started in the mid 1970's but eased during the early 1980's. Uranihm proved windfall reves which were largely uned over to the Fonds National d'nvesissemet (FNI) for the development of the agricultural sector, and improvement of basic infastucture and soal development. 2. While the Govenment's pa ansport policy was aimed mainly at expanding and upgrading the major trunk roads in the south of the country, its goas by mid 1970's were broadened. Ihey inced: (a) completion of linking the major urbn centes and mining areas to the main paved road network; (b) consolidation of th exitng fce account capability of the Ministre des Travaux Publics et de l'Urbanisme (MIPU) for the mantena of the earth roads network; (c) esblishment of an adequate capability witin the MTPU for e preparation, suprvision and execution of periodic maintenance works on the paved road network; (d) extension of the feeder roads system in a where nrul deveopmet projet are being (e) nizaon of the fleet of Air Niger, the domestic air line; (M deveopment of the training cacity of the MTPU; and (g) support of the development of a local constction industry trugh highway ptojec. Sou.: RRP sad SAR dor Pow* Hghuy Proct  2 3. The Bank supported the Govenment In the realization of thes goals. The Third Highway Project and the Feeder Road Project addressed goals (b), (d), (f) and (g), while the Fourth Highway Ptoject chiefly addressed goals (c) and (f). As reards (a), Air Niger was eventuaily liquidated under the Public Enterprise Sector Adjusnt Ptogram. 4. IDA lending for highways in Niger began over 25 years ago. The First Highway Project provided for the cxnstucdon of 60 km of lateit roads in grWodu producing areas. Ihe Highway Mantenance Project provided for a phased re-organzaon of the road maintenan and equipment serices, aning and dimination of the bacidog of ddered maintenne. The Second Highway Project financed the construction of 140 km of roads prqeared under the previous ptojec. S. Te Third Highway Projet (Credit612-NIR, US$6million, 1976) with co-fincing from othes, included equipmet technical assitance and training of to DirAon des Tra=axu Publics (DTP) in the MTPU for regaveling and routine maintenance; road constuction; and a suvey of the domesti; consruBon industy. The Feeder Road Project (Crdit 886-NIR, US$10 million 1979) consIed of a three year program of improvement, consucon a4 sequmnt of about 1000 miles of feeder roads. This project included the creation of a feeder road techical secdon in th DTP, as well as training and technical assistan. 6. Ths Fourth Highway Project wasentay a n of the road works taning and tech asdsi which had boee succflly initiated under the two earlier projects descrid in para 5. he Fourth Highway Project ws prepd in part ud eo t Ir Highway Project trugh an exteion of the scope of wodr to cover prepatoy sdies. Protous leng for highway is giva in Table A of Part M. C. EJL Iran d 7. P;oject Objecdves. The objectives of th project were: (a) to isdtto and begin i"I lotadn of a progm of planed preventive peiodic and to M up a Road M_gem Unit MU) in DTP; and (b) to establish tho atr of DTP eaployees an a prmane bais. 8. Projec Decription. Mm project fianced the followi ites: (a) strengthenig andlor resurfacg of 374 km of the eisting bimino netwaoi by conftract (b) die estlishmet and oqupping of the Road Mnagement Unit; (c) construedon and equippig of a atr cent (Centr de Pert des Tra Publics, (C!P?) for DTP employee, and the opa of the centr over a three yea period and  3 (d) cical assia for th supervision of works in items (a), (b) and (c) and the provision of Uafflc coonting, pavement roughnes measuring, line markng and road maintenance equipment, and veicles for items (b) and (c). D. etWo Degi anhaIu 9. An attWmpt was made in Decembr 1977 to idenfy the Fourth Highway Ptoject but the mission concluded wiat on-going sudies for taning, maintnance, road works and tranart be completed f-st bd;oi9 the scope of the prwposed project could be detemined. These studies were being finnced by other donors aceve in the Nigeren Tasport Sector. As noted in para. 6, ddiond studies were also carried out under the Tird Highway Project o prepar oCponets for the next Project. he most important study was a survey of the entire network with the peparion of a master plan from which a proga of perioc maitnce would be developed. A study of the domesdt construction idustry was also carried out under the Tlird Highway Project. 10. The identification mision of May 1980 made good progres in identifying a Fourth Hgway Project. ITe scope of the project and the related issues were dearly spelled out in a ProJect Brie dated August 29, 1980. The mission polnted out that prvious projects had concentrated on latedie road rebilittion and biminou road constucdon, and noted that in the light of trffic gowth I was w time to plan the approach to periodic , and upgrding and s trenof the 1800 km paved networ. To complemntm the pgmam,. the msion al80 posibl tecid a and fnanWal auistace to the domesdc contcon industy, and a e fdft to epand Waining of DTP personnel Initiad under earlier projects. 11. In Octobr 1980, a preparon mission fd tat a first draft of the paved road study had just been completed but that a contract for the stdy of the domestic consructn industry had only just been signed. Accding to the pre-p mission of May 1981, the latter study ro ed massive ehn assistanc to a contactor's advisory bureau, and the establishmet of eight new specaized compani for surface _Qabnnt, emulsion produo and eartworks. Tli study faied to gal the conide, and hence ifomain, from the largest d healthiet privaht conacor in Niger. Futeme, the Govem which had been involved in the ownehip of a lag 'Soci Mixte company, but had d withdrawn, was rductat to discu the repot or Is policy towards the domestic constuctio dusre. In view o