Uganda - Road Sector Institutional Support Technical Assistance Project

Document of THE WORLD BANK Report No. T-7116-UG TECHNICAL ANNEXES REPUBLIC OF UGANDA ROAD SECTOR INSTITUTIONAL SUPPORT TECHNICAL ASSISTANCE PROJECT August 4, 1997  CURRENCY EQUIVALENTS Currency unit = Ugandan Shilling (U Sh) US$ 1.00 = U Sh 1040 (As at Appraisal, in March 1997) U SH 1.00 = US$0.0009 WEIGHTS AND MEASURES Metric System GLOSSARY OF ABBREVIATIONS BFP Budget Framework Paper CAS Country Assistance.Strategy ERR Economic Rate of Return GOU Government of Uganda ICB International Competitive Bidding IDA International Development Association MOF Ministry of Finance MOLG Ministry of Local Government MOWTC Ministry of Works, Transport and Communications PIP Project Implementation Plan RAFU Road Agency Formation Unit RSDP Road Sector Development Program SDR Special Drawing Rights SOE Statement of Expenditure TAERA Transitional Arrangement for the Establishment of a Road Agency TSIREP Transport Sector Investment and Recurrent Expenditure Plan URC Uganda Railways Corporation GOVERNMENT FISCAL YEAR July 1 - June 30 Vice President: Mr. Callisto Madavo, AFR Country Director: Mr. James W. Adams, AFC04 Technical Manager: Mr. Yusupha Crookes, AFTT1 Task Team Leader: Mr. Yitzhak Kamhi. AFTT1  TABLE OF CONTENTS SECTION A Project Description Background Project Rationale and Objectives Project Components Infrastructure Preparation Studies Sector Policy and Management Studies Institutional Development and Capacity Building Environmental Issues Lessons from Previous Bank Group Involvement Critical Risks Actions to be Agreed SECTION B Project Implementation Implementation Arrangements Project Implementation Plan Procurement Disbursement Accounting and Auditing Monitoring and Evaluation ANNEXES Annex 1 Letter of Road Sector Policy Annex 2 Supervision Plan and Staff Input Annex 3 Project Component and Expenditures by Year Annex 4 Table of Contents for Borrower's Project Implementation Plan Annex 5 Summary of Project Implementation Schedule Annex 6 Estimated Disbursement Schedule Annex 7 Performance Indicators Annex 8 Documents Available in the Project Files   THE REPUBLIC OF UGANDA ROAD SECTOR INSTITUTIONAL SUPPORT TECHNICAL ASSISTANCE PROJECT SECTION A Project Description Background 1. Since the late 1980s, Uganda has been one of the fastest growing economies in Africa. This is due to the implementation of a series of structural and institutional reforms. The Government has developed a comprehensive policy and institutional reform program designed to deregulate the economy, eliminate direct state involvement in all but the essential public services, and improve institutional efficiency. The Government has embarked on a major privatization program, a comprehensive civil service reform and public expenditures reform for both development and recurrent budgets, and a decentralization process. These elements of the Government's reform program provide the background for the design of the proposed Project. 2. As part of the overall strategy to promote growth and poverty alleviation, the Government has prepared a 10-year Road Sector Development Program (RSDP). Consistent with the goals of its reform program, the RSDP pursues important institutional reform objectives, including the privatization of road management and the restructuring of the Ministry of Works, Transport and Communications (MOWTC) towards a regulatory role, including consumer protection in safety and environmental matters. Furthermore, a US$1.5 billion road expenditure program has been identified in support of market integration and export facilitation. One of the primary objectives is to support the institutional reform objectives of the Government in the road sector, and to facilitate the implementation of the investment components of the RSDP. 3. Overall, the Government has made some progress in addressing the major issues identified in past consultation with IDA. The areas where progress has been slower include: (i) financial restructuring of Uganda Railways Corporation (URC) and elimination of arrears from the Government in compensation for the unremunerative services rendered; (ii) definition of a policy for the restructuring and/or privatization of the flag airline; (iii) establishment of an autonomous, and user financed, Road Agency; and (iv) program management and project implementation capabilities, particularly in the road sector. 4. Of the sector issues identified above, the ones related to the road sector would be addressed under the project as agreed with the Government during preparation of the RSDP. Specifically, the project would address the following main issues affecting the performance of MOWTC: (i) allocation of responsibilities and decision-making process within the existing organizational set- up of MOWTC; and (ii) lack of staff incentives, in view of the uncompetitive remuneration regime. 5. The creation of an autonomous Road Agency, by June 1, 2000 would be pursued under the project through a study commencing in December 1997 for the establishment of the Agency. The study will cover the statutory, legal and regulatory framework required for the establishment and operation. It would also assess the funding arrangements for the road sector and for the operation of the Road Agency, including the possibility of a user-managed road fund. Prior to the establishment of the Agency, consultant services for a transitional institutional arrangement in the  form of a Road Agency Formation Unit (RAFU) would be carried out. This institutional arrangement is intended to ensure a more effective program management and project implementation capability in the road sector, thus creating the conditions for the effective implementation of the proposed First Road Sector Project and indeed of the RSDP. Project Rationale and Objectives 6. A primary objective of the Bank's assistance strategy to Uganda is to reduce poverty, through a medium-term strategy focused on private investment-led growth. Lowering transport costs, and improving reliability of access to infrastructure, is assumed in the Country Assistance Strategy (CAS) as a key element to facilitate business development. In this context, the CAS sets up 12 stabilization and structural reform objectives, of which six have important linkages with the proposed project. These areas are indicated below. 7. Strengthen the Budgetary Processes. The project would foster the development and implementation of a Management Information System for the road sector. The system would provide, inter-alia, more timely and reliable information on the implementation of a rolling three- year road expenditure program. As such, the road budget can be appropriately linked to the rolling three-year Transport Sector Investment and Recurrent Expenditure Plan (TSIREP) and to the Budget Framework Paper (BFP), thus contributing to a more effective monitoring framework. Furthermore, and through linkages to the road planning system, it would allow for a more rigorous definition of priority recurrent and capital spending areas, including the trade-off between them. 8. Civil Service Reform. The average annual road expenditure level under the Government 10-Year RSDP is forecasted to increase by almost three times, with respect to current spending levels. This expansion would introduce a major challenge in terms of the needed increase in managerial capability within MOWTC, at a time of reductions in civil service to levels commensurate with essential functions required of Government. The technical assistance to RAFU and the Study on the autonomous Road Agency would be targeted at fostering improved managerial capability through performance-based management and the contracting-out of services which can be more efficiently provided by the private sector. Furthermore, the Study would address the future role of MOWTC after the spin-off of its road execution functions. Consistent with the objectives being pursued by the civil service reform program, it is anticipated that MOWTC's new role would concentrate on technical and economic regulatory functions, sector planning, safety and environmental protection, and budget programming and execution. 9. Parastatal Reform/Privatization. By addressing the restructuring of road execution functions along business principles through the Road Agency Study, and by fostering the contracting out to the private sector of activities which can be competitively provided, the project would contribute to the corporatisation of an important sector of economic activity and to private sector development. Corporatisation and privatization, in turn, are expected to lead to major efficiency gains in road development and maintenance. 10. Strengthen the Decentralization Process. Through the Feeder Road Study, the project would address issues related to the analysis, financing and execution of rural infrastructure improvements in a decentralized context. This would include the identification and prioritization of projects, the definition of cost-effective feeder road development standards, and the implementation of technical and financial accountability mechanisms. Therefore, this effort would contribute to  - 3 - the decentralization program, particularly through strengthening project preparation and implementation capabilities at subnational levels of Government, 11. Increase Agricultural Output and Improve Environmental Protection. The project would lay the basis for cost-effective investments in connecting main roads and in feeder roads. Such investments have been identified in the CAS as an important element to foster market access, agricultural output growth and diversification. The project would also contribute to a more systematic implementation of national environmental policies in the transport sector, through capacity building and technical assistance to a new Environmental Liaison Unit within MOWTC. 12. Rehabilitate Economic Infrastructure. The feasibility and detailed engineering studies for the physical components under the Project are mostly targeted at the cost-effective rehabilitation and improvement of main road connections. By focusing on institutional strengthening of planning and implementation capacities and on increased private sector participation, studies under the Project would also address areas identified in the CAS as key to the rationalization of infrastructure management. Project Components 13. The project would consist of the following components: (a) institutional development and capacity building; (b) sector policy and management studies; (c) infrastructure preparation studies; (d) external auditing. (a) Institutional Development and Capacity Building 14. This component would include institutional development and capacity building activities to support the rationalization of road administration. A Study on Private/Public Partnership in Road Management commencing in December 1997 would define the future role and organization of an autonomous Road Agency, including the feasibility of introducing a user-based funding system. Recommendations of this Study would cover, inter-alia, the statutory, legal, regulatory, and financing framework for the establishment and operation of the Agency. The future role of MOWTC, after the spin-off of its road execution functions, would also be covered under the Study. In addition, capacity-building and training requirements for the new institutional set-up, including the assessment of MOWTC's financial management capability, would also be identified under the Project. This would contribute to ensure that the road sector has a well functioning capacity system in place before starting implementing an expanded investment program. 15. Consultant services would be provided under this component for staffing of RAFU and its Management Divisions to be created as part of the Nucleus for the Road Agency for a period of three years until the Road Agency is institutionalized. RAFU, through its management division(s) would constitute the nucleus for the future Road Agency during the transition period and would be (i) in charge of road network development and management; (ii) plan and manage network  -4- maintenance; and (iii) oversee the implementation of the Program, with emphasis on technical and financial monitoring and performance evaluation. Terms of Reference for a Study on the operation of the Divisions during the transitional period have already been prepared and proposals invited from a short-list of consulting firns. Basically, this Study has three main objectives: (i) design of the precise organizational arrangements for the creation and operation of the Units, including the interrelationships among them and between them and the existing institutional set-up of MOWTC; (ii) quantify the funding requirements for the operation of the Units during the transitional period; and (iii) recommend an Action Plan for the implementation of the Study recommendations leading to the creation of the Agency by June 1, 2000. 16. In addition, and in order to enable MOWTC to implement the sector elements of national environmental policy, finance would be provided for capacity building for a new Environmental Liaison Unit. (b) Sector Policy and Management Studies 17. Studies under this component would cover sector-wide assessments of road safety and of network management. A Road Safety Audit Study would collect basic data, and analyze it with a view to identify priority actions to reduce the economic and social costs imposed by road accidents. These actions would address road engineering design, technical regulations affecting vehicle operation, and behavioral measures targeted at road users and pedestrians. A Road Network Policy Study would assess issues related to the classification of the road network, and to the definition of engineering standards and administrative responsibilities as a function of the role of the various types of roads. To strengthen MOWTC's capabilities in planning and financial management, the development of a management information system would also be included under the component. Recommendations of the Studies would lead to the systemic formulation of action plans to be implemented under the proposed follow-up operation, First Road Sector Project (FRSP). (c) Infrastructure Preparation Studies 18. Financing would provide under the project for the review supporting the preparation of engineering design, economic feasibility, and environmental impact studies for the paving of 528 km of gravel roads and for the strengthening of about 15 5 km of paved roads integrating the 10,000 km classified road network. These roads have been identified through an economic-based prioritization exercise carried out for the preparation of the RSDP, using the Bank's developed Highway Design and Maintenance Model (HDM-I1). A further 500 km of feeder roads would be identified, and the engineering designs (including basic environmental impact assessment) prepared, through a Feeder Road Study. (d) External Auditing 19. This component will support external audit in respect of the project accounts. Project Costs and Financing 20. The total cost of the project is estimated at US$33.0 million equivalent, excluding taxes and duties broken down by component as detailed above. Of the total cost, about US$29.9 million or 90% would be in foreign costs. Total costs include about US$2.9 million in physical  contingencies or about 10% of total base costs; and US$1.0 million in price contingencies or about 4% of total base costs plus physical contingencies. Price contingencies have been calculated on the basis of estimated international inflation of 2.3% from FY1997/98. This inflation rate has been used for both foreign and domestic costs as it has been assumed that any difference between domestic and international price will be offset by equivalent adjustment in Uganda's foreign exchange rate. A summary of the cost estimates is provided in Table 1 below. Table 1: Estimated Project Cost Components Total Cost (US$ million) A) Institutional Development and Capacity Building (i) Consultant Services / Technical Assistance for the Road 14.10 Agency Formation Unit (ii) Capacity Building for a New Environmental Liaison Unit in 0.50 MOWTC B) Sector Policy and Management Studies (i) Study on an Autonomous Road Agency 1.00 (ii) Study and Development of the Management Information 0.30 System (iii) Road Safety Audit and Regulations Study 0.50 (iv) Road Network Management Policy Study 0.50 C) Consulting Services for Physical Components (i) Review / Update of Feasibility Studies, Engineering Design 9.60 and Environmental / Resettlement Assessment for 683 km of main roads (ii) National Feeder Roads Study for 39 districts and detailed 2.55 engineering designs for 500 km of feeder roads D) Others (i) External Auditing 0.08 Sub-Total 29.10 CONTINGENCIES (i) Physical 2.90 (ii) Price 1.00 TOTAL 33.00  -6- Environmental Issues 21. This is considered a Category "C" project, with no environmental risks. The project comprises basically of studies and technical assistance. There are no social, gender or resettlement issues associated with the project. Lessons Learned from Previous IDA Involvement 22. Experience from past projects in Uganda indicates that the main risk has been limited capacity of the implementation agency, in particular, the ability of the implementing agency to efficiently address problems related to contract management, contract administration, and financial and technical monitoring. There are substantial delays in the processing and awarding of contracts, thus incurring substantially higher costs at the initial stages of commencement, delayed completion and loss of investment. The lessons from the modest success of technical assistance provided to develop the implementation and planning capacity of MOWTC is that major policy changes need full commitment by Government to ensure success. The success of any effort to improve public agency performance depends on Government willingness to grant it financial and managerial autonomy and that, in the absence of such a commitment, assistance to strengthen such agency is 1ikely to accomplish little. The main institutional and policy changes, including reorganization and institutional strengthening of road administration, as well as changes in the decision-making process, should be undertaken upfront, before commitment to a proposed major investment project. Other lessons are that updating of engineering designs before commencement of projects are necessary to avoid substantial changes in the field, delays in implementation and cost overruns that have made major negative impacts on road development to date. The need to develop appropriate monitoring indicators to be used as part of project implementation has also emerged as an important lesson in fostering policy and strategic reforms. These lessons have been incorporated in the present project design and will also be included in the design of future projects through sustained consultations between IDA, GOU, MOWTC and the local communities. Project Risks 23. The high risk rating allocated to the institutional structure/Road Agency results mainly from the risks associated with the mobilization of Government funding for its sustained operation, and with the development of the necessary capacity to carry out the RSDP, given the incentive problem and the likely competition for qualified human resources in the sector across the Region. Although this risk would be further assessed under the Study for the creation of the Agency, it is anticipated that by adopting a market-based remuneration system, and by extending contracts on a long-term basis, the appropriate staff would be attracted. 24. There are three key elements in a strategy to manage this risk. The first is an early- warning system, the second is the development of sustained awareness of high-level decision- makers to the implementation of reform, and the third is the involvement of the Ministry of Finance (MOF). The early-warning system would comprise a series of key decisions to be taken by the Government as follows: (i) appointment/employment of the Head of Nucleus for RAFU by Board Presentation; (ii) approval of an Action Plan recommended by the Study on the Transitional Arrangements for the Establishment of the Road Agency (TAERA) by the Credit effectiveness; (iii) compliance with key dated targets under the Action Plan during implementation of the project, and prior to appraisal of the proposed follow-up First Road Sector Project; and (iv) allocation of counterpart funds. The awareness element would be derived from the fact that high-level decision-  - 7 - makers are publicly committed to the achievement of the physical elements of the RSDP, and that they accept that the existing delivery system would not be capable of implementing an expanded road expenditure program. Regarding the involvement of the MOF, it is anticipated that their support in ensuring a sustained flow of funds for the future operation of the Agency would be secured once they are provided with the evidence of the costs and benefits of the proposed institutional arrangement. To this extent, the Bank would work closely with the Government over the next three years of project implementation to find workable solutions to ensure the sustainability of the reform process leading to the creation of the Road Agency. Agreed Actions 25. During negotiations, the following agreements were reached with the Government: (i) MOWTC shall submit to IDA, audited financial statements within six months of the end of each fiscal year; (ii) performance indicators for monitoring the effectiveness of the project implementation. 26. The following are conditions of effectiveness: (i) the terms and conditions of employment of the staff of RAFU as recommended under the Transitional Arrangements for the Establishment of a Road Agency (TAERA) study have been drawn up, and the key staff selected; (ii) approval by the Government of Uganda of the Action Plan recommended by the Study on the Transitional Arrangements for the Establishment of the Road Agency; (iii) the consultants for the studies under the project have been selected; (iv) the Head of RAFU has been selected and appointed; and (v) the budgeting, accounting and auditing systems for the Project have been established.  -8- SECTION B PROJECT IMPLEMENTATION Implementation Arrangements 27. The overall responsibility for the project implementation will be vested in the MOWTC. The project will be implemented as a part of the Govermment's reform program of Road Sector Institutional Development and Capacity Building. MOWTC shall set up a Road Agency Formation Unit (RAFU) as the nucleus of the Proposed Road Agency. RAFU, through the management division(s) identified under the TAERA study would be established outside the present institutional set up of MOWTC but would be accountable to the Permanent Secretary of MOWTC. These Management Divisions would take over direct responsibility for implementing the project and the RSDP. The Ministry of Local Government (MOLG), through its engineering desk and in consultation with the Districts, would provide technical inputs for the Feeder Road Study. A Project Inplementation Plan (PIP) was agreed during negotiations. Project Implementation Plan 28. The project would be implemented in accordance with the implementation and procurement schedules in the PIP. The PIP would serve as a Handbook to assist project implementation agencies in the execution of the project. Annex 4 shows the table of contents for the PIP. The PIP contains the following information: (i) detailed description of the project components, budget and implementation timetable; (ii) schedule of procurement actions including target dates for each step, including standard procurement documents; (iii) schedule of disbursements for each component, including financial reporting and audit requirements; (iv) detailed description of the roles and responsibilities of the implementing agencies; (v) key monitoring and performance indicators for each component; and (vi) schedule of progress reporting and formal of quarterly reports. Procurement 29. The consulting services would be procured in accordance with the Bank's Guidelines for the Use of Consultants by the World Bank and by the World Bank as an Executing Agency, January 1997. Most of the contracts will be awarded following Quality- and Cost-Based Selection (QCBS) procedures. Individuals will be hired based on paragraph 5.01 of the guidelines. Audit services will be procured by least cost selection from amongst independent auditors acceptable to the Association. During project implementation, IDA financed contracts estimated to cost more than US$100,00 for firms and US$50,000 for individuals would be subject to prior review.  However, all sole source contracts and extension above these limits of contracts which were initially not subject to prior review would be now subject to prior review. The terms of reference would require IDA's clearance. The Government would submit signed copies of the contracts to IDA before requesting disbursement. MOWTC has adequate staff to handle the procurement; they will undertake a training on procurement and familiarize themselves on the current procurement guidelines. 30. Standard procurement processing times have been discussed with the borrower and the PIP has been prepared on this basis. The borrower would update the procurement plan annually. Table 2: Summary of Procurement Arrangements (US$ million equivalent) Description ICB/LCB Other Non-Bank Total Financed Institutional Support 16.6 16.6 (15.0) (15.0) Consultant Services 16.4 16.4 TOTAL ~~~~~~~~~33.0 33.0 TOTAL (30.0) (30.0) Note: Figures in parenthesis are the respective amounts financed by IDA Disbursement 31. The IDA Credit would be disbursed against the following categories and on the basis of the estimated disbursement schedule in Annex 6. 55 Table 3: IDA Disbursement Categories (US$ million equivalent) Category Amount of Credit % of Expenditures to be Allocated financed Institutional Strengthening 14.8 90% Consultant Services 13.2 90% Unallocated 2.0 TOTAL 30.0 32. The proposed project is expected to be completed by June 30, 2000, and the Credit Closing Date would be December 31, 2000. All disbursements would be fully documented to the satisfaction of the Association. To facilitate payments from the Credit, the borrower would established a Special Account and would operate and maintained on terms and conditions  - 10 - satisfactory to IDA. The account would have an initial authorized allocation of US$1.0 million, approximately equal to three months of expenditures under the project. The Special Account would be replenished following application by MOWTC, together with appropriate supporting documentation. Statements of Expenditures (SOEs) 33. Disbursement for consulting contracts with firms costing up to US$100,000 equivalent and up to US$50,000 equivalent with individuals would be made against statement of expenditures. Accounting and Auditing 34. MOWTC will maintain appropriate records and accounts for expenditures under the project, including SOEs, as well as the Special Account, in accordance with internationally acceptable accounting standards; that such records and accounts would be audited by independent auditors acceptable to IDA; and that the borrower would provide a certified copy of the auditor's report, including a separate opinion on the SOEs, and the Special Account to IDA within six months of the end of each fiscal year. Monitoring and Evaluation 35. MOWTC and IDA would carry out project monitoring to ensure that the project is implemented in accordance with the project implementation plan. It would be based on quarterly progress reports to be produced by the implementing agencies. The contents and formats of the reports was agreed with the governmenTt during negotiations. IDA would monitor project implementation through field visits, implementation support missions, reviews of progress reports and consultations with the borrower and implementing agencies. Performance indicators (Annex 7), discussed and agreed with MOWTC during negotiations, would form the basis for performance evaluation. Estimates of the timing of IDA missions, areas of focus, skills requirements and inputs are provided in Annex 2. By January 1, 1999, the Government would convene a mid-term review to review the overall status of project implementation, adherence to the PIP, and to determine any required changes in design and implementation arrangement needed to ensure achievement of the project's developmental objectives.  Annex I LETTER OF TRANSPORT SECTOR POLICY  p. T'sPMiS: 134?uoS 410 ULnes) ICanpals Ministry ot Flnanoq Vex; 230163 . ^P.O. Box 6147. VdIe amw 'FPSEC, Kampala, .. . Qw, : ~~~~~~~~Ugatida WI SUww1t~o quote N@. -__ ReEDLa OF UGANDlA EC7 (237, ' 16th JUIy, 1997 ._ 3 U The Country Director f or UgandS Africa Regiort International Development Association. 1818 H Street 14.W Waahington, D.C 20433 U.S.A. .' RE: THR ROAD SNCTOR ]INSTITIUTIONAL SUPPORT THCIKICAL ASSISTANCE PROJBCT - LETTER O SBCTOR POLICY. .wefxorenco is made to section 6(i) of the Agreed Minutes of the Negotiations for the Road sector Institutional Supp6rt Technical Assistanc6 Credit (June 3-6, 1997). Please fit&d enclosed herewitth the Uganda Transport Sector PQlicy, for purposes of the above section. Yours Sinceri y, J. Hayan jIkangi Minister of Work', Transport and CommunicatLons lttIE,JEE.  UGANDA TRANSPORT SECTOR POLICY I. INTRODUCTION The following describes the Govemment of Uganda's medium term Strategy for the Transport Sector and is to serve as the agreed framework within which the Government intends to implement the First Road Sector Project (1997 - 2001) which is the first 5-year phase of the 10-Year Road Sector Developmeint Programme (1997 2006). 2. GENERAL PRINCIPLES Th.e Government's medium term transport strategy hinges on the promotion of cheaper, efficient and reliable transport services as the means of providing elctive support to increased agricultural and industrial production, trade, tourism, social and administrative services. This would ensure an efficient transport sector and would play a critical role for the development of an integrated and self-sustaining economy to promote growth in Government's strategy for the alleviation of poverty and the economic integration of the country as a whole. To implement this sector policy empbasis will be placed on the prornotion of active public sector participation and the provision of a technically sound, economically justified and financially sustainable infrastructure. The Government will not, as a rule, directly participate in the provision of transport services, except in the case of strategic activities. Its role with respect to the supply of transport services is to provide policy guidelines and to clearly defi4e by law and efficiently exercise its non-economic regulatory povers ensuring the establishing of a level playing field for the competitive provision of services. In this context, the Govemment will continue the policy of defacto free access to the transport sector market and of letting the market forces determine the tariffs. The Government will also continue to place emphasis on the implementation of Axle Load Control and transport safety measures for minimisation of road damages and accidents respectively. These will be co-ordinated with neighbouring countriies through the East African Co-operation Arrangement and the Northem Comdor Transit Agreement to ensure efricient and safe use of the road infrastructure. However, the Government will continue to play a dominant role in the provision and cost effective development of transport infrastructure. In order to sustain this effort, appropriate priority is given to the preservation of existing infiastntcture assets. For roads, the implementation of Govenunent strategy would also lead 'to an incrased participation of the private sector in the preparation, execution and supervision of road works, in tandem with efforts to develop the domestic construction and consulting industry.  -2- 3. ISSUES AND ACTIONS 3.1 Transport Planning Govermment has already commenced on the process of establishing a long-term multi- modal transport master plan to guide tie rational and complementary development of all the transport modes, namely: road, rail, water and air transport. The process will examine the realistic complementality and the appropriate maintenance and improvement measures of the various transport modes in terms of safety, efficiency, and cost effectiveness for the mobility of people and their goods. The Government will coniinue to select and prioritise transport sect6r investmnents and recurrent expenditure in a rational manner. This is particularly necessary at this stage, when many ongoing and new projects are competing for very limited resources. Govenunent will continue to utilise the Public Investment Plan to define its priority investment reqfuirements. The Public Investment Plan is reviewed annually and additions to this plan is made only after thorough analysis of the socio/economic and technical feasibiliiy and viability of the project and the resource package availability, safety precautions and: environmental consideration. 3.2 The Road Network The key element in the implementation of the Government's Transport Sector Strategy is the 10-Year Road Sector Development Progranme (RSDP) (1997 - 2006). The RSDP, to be reviewed and updated on an annual basis, focuses on (I) providing an efficient, safe and sustainable road network in support of market integration and poverty alleviation over a 10-Year period from Fiscal Year 1996/97 - 2005/06, (ii) improving managerial and operational efficiency of road administration; and (iii) developing the domestic construction industry. The RSDP has been developed aftet a thorough optimisation and rationalisation process by viewing road network maintenance and improvement as a single process aimed at mniininsing total transport costs in the road sector. Realistic and efficient implementation mechanisms have been developed to ensure maximum implementation efficiency of the programme's managerial and operational functions. The full RSDP for the main roads component is estimated to cost approximately USS1,500 million and its expenditure and financing programme reflects invescment requirements and economic priorities in the context of the macro-economic constraints as expressed in terms of domestic cotnterpart fimding and inflows of donor assistance. The RSDP has the following three major components:  - 3 - i) Main Road Maintenance and rehabilitation to optimise the investment in roads and to reinstate and preserve the road network to required level of services; ii) Improvement of parts of the main road network to meet trafie demand safety and environmental requirements; and iii) Capacity building in road administration and the local construction industry. The RSDP will be implemented in two phases each of 5 years. The First Road Sector Project (FRSP) covers the first 5 years of the RSDP from fiscal year 1996/97 to 2000/2001. 3.2.1 Main Roads Maintenance and Rehabilitation With respect to main roads maintenance, the outstanding operations of the Four Year National Priorities Main Roads Maintenance Program for FY95-98 is being phased out into FRSP. Financing the mainEenance of main roads is basically the Government's responsibility. Accordingly, under the FRSP Government will finance all routine maintenance costs with effect from FY 98/99 and seek donor support for continued road rehabilitation and periodic maintenance operations. The table below indicates the financing plan of the FRSP Road Maintenance and Rehabilitation Component. GOU FUNDING COMMITMENT TO RSDP ___________________ Activity Schedule (in UShs. '000) _____ Projects & 96/97 97/98 98/99 99/00 00/01 Activities ROUTINE MAINTENANCE . GOU 12,681,640 16,124,700 16,694,300 115,018,800 25,105,500 Donor 892,560 1,384,000 1,992,400 974,700 0 TOTAL 13,574,200 17,508,700 18,686,700 115,993,500 25,105,500 PERIODIC MAINTENANCE GOU 3,214,200 3,697,000 3,286,000 3,439,680 3,100,914 Donor 10,945,700 15,943,369 10,499,766 10,319,039 9,302,742 TOTAL 14,159,900 19,640,369 13,785,766 13,758,719 12,403,656 REELABILITATION X GOU 4,438,300 4,028,300 7,869,700 15,161,500 9,949,500 Donor 2,036,100 4,294,100 7,628,700 1__5,494,000 5,228,400  -4- TOTAL 6.474,400 8,322,400 115,498,400 120,655,500 15,177,900] Until the envisaged establishment of the user financed Road Authonity / Agency by June 1, 2000, the Goverunent will continue to release budgeted main roads maintenance funds through normal budget procedure. 3.2.2 Feeder Roads Rehabilitation and Maintenance With respect to the rehabilitation of feeder roads countrywide, the Govermnent is pursuing in the first instance improvement of selected roads to all weather road surface standard. Priority will be given to those roads which could first unlbck areas with potentiaUy high agricultural surplus. Social considerations such as improved access to schools and health centres would be supplementary considerations. The strategy for feeder roads rehabilitation and maintenance will be reviewed and updated under the RSDP to bring it in line with the recent constitutional and legislative changes. The responsibility for maintaining feeder roads is already vested in the respective districts. The Central Govemnment will continue to match the District contributions for local costs of routine manual maintenance through block grants to the districts, Plans are underway to develop a prioritised feeder and urban roads' investment plan siniiar to that of the main roads. 3.2.3 Road Improvement Programme Under the RSDP, parts of the road network will be upgraded and iniproved as economically justified to standards commensurate with the projected traffic demand, safety and environmental protection requiremnents. The programme puts emphasis on drawing up of a feasible, integrated maintenance and improvement programme for the road network in consistence with the overaLl national development oojectives. Under the programme various parts of the road network will receive the following measures: (i) capacity improvement to ease congestion; (ii) strengthening of weak pavements: (iii) upgrading from gravel to bitumen standards; (iv) upgrading of about 2000 km of priority feeder roads to the classified road network standards; (v) strengthening of bridges and (vi) provision of road safety facilities. A new by-pass of Kampala will also be constructed. 3.2.4 Institutional Arrangements The role of the Government in the development and management of transport infrastructure is mostly discharged through MOWTC, and in the case of rural feeder and community roads, by the Ministry of Local Government (MOLO). In line with Government policy of rationalising the management of sector agencies and of reforming the civil service, the potential of the commercialisation of road administration, including the involvement of users and other stockholders in road management and  fnncing, is being assessed. As a result, the Government has already decided to establish an autonomous Road Agency/Authority by June 1, 2000. The Agency will be responsible for the management, operation, development and maintenance of the road network in Uganda. However, as an immediate step towards the establishment of the Road Agency/Authority, the Government will establish a Road Agency Formnaion Unit (RAFUT). The RAFU consisting of management division(s) will be created as a transitional institutional set up until the establishment of the Road Agency, and will be established outside the present organisational set-up of the MOWTC but accountable to the MOWTC. The division(s) will be staffed by Uganda Experts supportcd by Management Consultants personnel commercially hired, and will form the nucleus of the future Road Agency/Authority. 3.2.5 Domestic Construction Industry Govemrnment recognises the shortage of technical and management skills in the local construction industry both in the public and prvate sectors. The MOWITC Public Works,. Training Centre and the Training Production Unit will be strengthened in order to meet the training needs of both the public and private sectors of the industry. Efforts to develop the domestic construction industry include implementation of measures conducive to market creation through contracting out of road works including maintenance. Currently, all manual routine maintenance and 60% of mechanised maintenance and all periodic maintenance is by contract. Targets for the share of contractor executed road maintenance works as contrasted to Force Account Works are as tabulated below: Private Sector share of the total road maintenance operations budget 1996/97 1997/98 1998/99 1999/2000 2000/01 65% 70% 75% 85% 85% To improve the domestic contractors access to equipment measures tQ facilitate equipment pooling on a commercial basis and ptant acquisition through leasing alTangements will be implemented. 3.3 Commercial Orientation and Improved Financial Autonomy for Uganda Railways Corporation (URC) Considerate progress has been made in recent years in rehabilitating Uganda Railways Corporation's system. However, recent developments in other areas of Goverrunent policy will constrain the future size and pattern of URC operadons. Firstly, the extensive  - 6 - rehabilitation of the trunk road network has significantly reduced road transport costs. Secondly, Government's policy of liberalising the marketing and export of agricultural commodities is likely to lead to a reduction in the role of large parastals and to smaller consignments. Thirdly, the liberalisation of coffee and fuel trasit traffic would affect URC's competitiveness with truckers. It will become increasingly important that for URC to effectively compete witti other transport modes, it has to be a viable conunercial organisation. Particularly with the continued operations of profitable extemal ferry services on Lake Victoria. The Goverxment considers URC a strategic transport agency which should remain in the public sector but operate as a commercially oriented, increasingly fiuancially autonomous entity. It is imperative that a level playing field for the competition provision of services is set. This has involved a concemn towards an equitable user taxation policy and the provision of targeted service subsidies, wherever deemed required anxd as spelt out in the Performance Agreement signed between URC and the Government in 1994. A study on the Comparative Taxation and Cost Recovery in the Road and Rail Modes of Transport is to be initiated in the RSDP. Government has also taken steps to pay TRC subsidies for operating non-commercial services as from July 1994 to September 1996 when the opation of loss making services were stopped. Government recognises the urgent need to strengthen the import/export route of the railways. Plans are underway to secure funds to rehabilitate the penranent way between Kampala and Malaba. Government will also explore the possibility of rehabilitating the Kampala-Kasese railway line. Considering the role that Railways play in regional integration and development, these projects are priority regional projects and candidates for regional funding. 3.4 Air Transportation Government's current Air Transportation Policy takes into account changes in the global air transport industry that include liberalisation, privatisation, globalisation, anti-trust immunities and airline mergers. In broad terms the policy aims at promoting and helping the achievemcnt of Uganda's strategic goal of providing safe and efficient air transport services. In this regard, the Civil Aviation Authority was established in 1994 with the aim to provide a safe, secure and efficient aviation industry; and create an enabling environment through appropriate legislative and institutional framework to enhance private sector participation in all aspects of air transport. In line with the Public Enterpnses and Reform and Divestiture Statute. of 1993, the national airline, Uganda Airlines has already been slated for privatisation. Consistent with this statute and with the various international commitments such as Yammouskro Declaration which recommend pooling of its market with markets of other countries in  - 7 - the region in order for its industry to become viable, Govemnment is presently working out the most viable Divestiture Plan. .  ANNEX 2 Page 1 of 2 IMPLEMENTATION SUPPORT AND STAFF INPUT 1. The Borrower's supervision activities would be carried out by the Ministry of Works, Communications and Transport (MOWTC). MOWTC would coordinate project implementation.. Their supervisory functions would involve the following: (a) initial review, recording and forwarding of: (i) all procurement orders (ii) all disbursement requests (iii) special accounts expenditures/reimbursements (b) preparation of an annual project implementation budget (c) preparation of bidding and other project contract documents (d) preparation of monthly financial statements (e) preparation of semi-annual progress reports to IDA in February/March of each year on all aspects of project implementation (f) preparation of annual project accounts (g) monitor key performance indicators (h) arranging for the annual audits of project accounts and SOEs (i) liaising with all Bank Implementation Support missions 2. In addition to the regular implementation support missions to be carried out by IDA in accordance with the schedule set out below, IDA staff would spent time at headquarters on dealing with correspondence, reviewing and commenting on procurement documents, disbursement requests, half-yearly reports and audited accounts. The amount of time estimated is as follows: HO Time Field Time Total Time Project Year 1 10 sws 10 sws 20 sws Project Year 2 11 sws 10 sws 21 sws Project Year 3 11 sws 10 sws 21 sws 3. Mid-term Review by MOWTC and IDA would be held not later than April 1, 1999. The terms of reference and background papers for the review would be prepared by MOWTC with IDA staff assistance as may be necessary. The principal objective of the implementation review would be to examine the status of implementation of the project progress in procurement, disbursements, feasibility studies and institutional strengthening. It would also include a review of quantitative and qualitative review anticipated from the project.  ANNEX 2 Page 2 of 2 BANK IMPLEMENTATION SUPPORT INPUT (STAFF WEEKS) INTO KEY ACTIVITIES Fiscal Year Approximate Date Activity Expected Skills Staff Input (SW) FY1997/98 October 1997 Implementation Sr. Highway Engineer 6.0 Support Mission Financial Analyst Institutional Specialist March 1998 Implementation Sr. Highway Engineer 8.0 Support Mission Highway Engineer Financial Specialist Operations Analyst FY1998/99 October 1998 Implementation Sr. Highway Engineer 6.0 Support Mission Operations Analyst Institutional Specialist April, 1999 Mid-Term Review Sr. Highway Engineer 6.0 Financial Specialist Operations Analyst FY1999/00 October 1999 Implementation Sr. Highway Engineer 6.0 Support Mission Highway Engineer Institutional Specialist March 2000 Implementation Sr. Highway Engineer 6.0 Support Mission Highway Engineer __________ _Institutional Specialist FY2000/01 October 2000 Preparation Work for Sr. Highway Engineer 6.0 Implementation Highway Engineer Completion Report Institutional Specialist _____________________________ Operations Analyst  Annex 3 UGANDA ROAD SECTOR INSTITUTIONAL SUPPORT TECHNICAL ASSISTANCE PROJECT PROJECT COMPONENTS AND EXPENDITURES BY CALENDAR YEAR Total Including Contingencies (US$'000) Components 1998 1999 2000 Total A. Institutional Development and 4,879.0 8,318.0 3,404.0 16,601.0 Capacity Building B. Sector Policy and Management 736.0 1,254.0 513.0 2,503.0 Studies C. Feasibility Studies and Engineering 4,055.0 6,915.0 2,830.0 13,800.0 Designs for Selected Roads C. External Auditing 32.0 33.0 35.0 100.0 Total Project Costs 9,702.0 16,520.0 6,782.0 30,004.0  Annex 4 Page 1 of 2 UGANDA Road Sector Institutional Support Technical Assistance Project Project Implementation Plan Table of Contents 1. INTRODUCTION................................................................................................................................. 1.1. SUMMARY OF PROJECT DEVELOPMENT OBJECTIVES.............................................................. 1.2. SUMMARY OF PROJECT DESCRIPTION AND COMPONENTS....................................................... 1.3. LETTER OF ROAD SECTOR POLICY.......................................................................................... 2. LEGAL AGREEMENTS ...................................................................................................................... 2.1. DEVELOPMENT CREDIT AGREEMENT.................................................................................... 3. DETAILED PROJECT DESCRIPTION ............................................................................................... 3.1. PROJECT COMPONENTS AND BUDGET..................................................................................... 3.2. PROJECT FINANCING PLAN.................................................................................................... 3.3. MAJOR LOAN COVENANTS AND TARGET DATES..................................................................... 4. PROJECT IMPLEMENTATION STRUCTURE................................................................................... 4.1. ORGANIZATION STRUCTURE................................................................................................... 4.2. PROJECT MANAGEMENT ....................................................................................................... 4.3. RoLEs, OBJECTIVES AND REsPoNsiBILITIEs OF MOWTC....................................................... 5. PROJECT PLANNING AND IMPLEMENTATION ............................................................................ 5.1. CONSOLIDATED PROJECT IMPLEMENTATION SCHEDULE SUMMARY........................................ 5.2. IMPLEMENTATION SCHEDULE FOR EACH COMPONENT............................................................ 5.2.1. Procurement Plan for Feasibility Studies for a few Selected Roads........................... 5.2.2. Procurement Plan for Sector Policy & Management Studies..................................... 5.2.3. Procurement Plan for Institutional Development & Capacity Building...................... 5.3. IMPLEM ENTATiON, SUPERVISION AND QUALFrY CONTROL..................................................... 6. PROCUREMENT GUIDELINES AND ARRANGEMENTS................................................................ 6.1. GENERAL OVERVIEW............................................................................................................. 6.2. IDA PROCUREMENT GUIDELiNES........................................................................................... 6.3. GOU PROCuREMENT GUIDELINES.......................................................................................... 6.4. PROCUREMENT PROCESS, PROCUREMENT CYCLE AND EXPECTED LAPSED TIME.................... 7. FINANCIAL MANAGEMENT............................................................................................................. 7.1. INTRODUCTIoN....................................................................................................................... 7.2. FUNDS ALLOCATION AND PROCEDURES................................................................................. 7.3. DISBURSEMENT ACCOUNTS.................................................................................................... 7.4. SCHEDULE OF DISBURSEMENT FOR EACH COMPONENT.......................................................... 7.4.1. Feasibility Studies for Selected Roads..................................................................... 7.4.2. Sector Policy Management Studies .......................................................................... 7.4.3. Institutional Development and Capacity Building.................................................... 7.5. WoRK CERTIFICATE AND PAYMENT PROCEDURES................................................................. 7.6. DESCRIPTION OF RISKS (INTERNAL AND EXTERNAL)............................................................... 7.7. FINANCIAL REPORTING AND AUDIT....................................................................................... 8. MONITORING AND PROGRESS REPORTING................................................................................. 8. 1. KEY IMPACT INDICATORS FOR DEVELOPMENT PROJECT OBJECTIVES.....................................  Annex 4 Page 2 of 2 8.2. KEY PHYSICAL INDICATORS FOR IMPLEMENTATION OF THE PROJECT..................................... 8.3. KEY FINANCIAL INDICATORS.................................................................................................. 8.4. MONITORING AND EVALUA TION ............................................................................................ 8.5. REPoRTING RouTINEs............................................................................................................ 8.5.1. Audit Reports....................................................................................................... 8.5.2. Progress Reports..................................................................................................... 8.6. FORMAT OF CONSOLIDATED PROJECT PROGRESS SUMMARY REPORT . ................................... 8.7. IMPLEMENTATION COMPLETION REVIEW................................................................................ 9. CATALOG OF ANNEXES - PROJECT DOCUMENTS ......................................................................  Annex 5 SUMMARY OF PROJECT IMPLEMENTATION SCHEDULE  1996] 1997 11998 11999] 2000 2001 2002 2003 2004 2005 2006 12007 2008 ID Task Name Duration 96 '97 '98 |99 '00 j01 '02 | '03 '04 | '05 '06 '07 '08 I Institutional Support Credit 1130.5d 2 Pre-Procurement 421 d 3 Bank Processing 421d 8 Engagement of Consulting Services 1130.5d _ - 9 Consulting Services for Physical Components 451.5d 10 Feasibility Studies 451.5d 11 Project Appraisal & Consultant Shortlisting 135d 15 IDA No Objection to TOR & Shortlisted Consultan 10d 20 Evaluate Proposals & Award 65d 32 Consultancy Services 200d 38 Feeder Road Study 451 d 39 Project Appraisal & Consultant Shortlisting 135d 43 IDA No Objection to TOR & Shortlisted Consultan 10d 48 Evaluate Proposals & Award 65dow 60 Consultancy Services 200d 66 Sector Policy and Management Studies 389d 67 Road Safety Improvement & Audit Study 389d 68 Project Appraisal & Consultant Shortlisting 179d 72 IDA No Objection to TOR & Shortlisted Consultan 10d 77 Evaluate Proposals & Award 65d _ 89 Consultancy Services 100d _ 93 Road Network Management Policy Study 328d Task _|Summary geRolled Up Progress Date: 4/24/97 Progress Rolled Up Task _g_lli Milestone *Rolled Up Milestone X Page I  1996 1997 1998 1999 2000 [2001 2002 2003 [2004 2005 2006 2007 2008 ID Task Name Duration '96 '97 |'98 '99 ! 00 '01 '02 '03 [ '04 '05 '08 94 Project Appraisal & Consultant Shortlisting 118d 98 IDA No Objection to TOR & Shortlisted Consultan 10d 103 Evaluate Proposals & Award 65d 115 Consultancy Services 100d 119 Institutional Development and Capacity Building 934.5d _ _ 120 Consultant Services for the Road Management Unit(s) 934.5d y 121 Project Appraisal & Consultant Shortlisting 20d 125 IDA No Objection to TOR & Shortlisted Consultan 10d 130 Evaluate Proposals & Award 85d 143 Study on the Autonomous Road Agency 405d 144 Project Appraisal & Consultant Shortlisting 135d 148 IDA No Objection to TOR & Shortlisted Consultan 10d 153 Evaluate Proposals & Award 66d 165 Consultancy Services I100d 169 Study and Development of the MIS 317d 170 Project Appraisal & Consultant Shortlisting 135d 174 IDA No Objection to TOR & Shortlisted Consultan 10d 179 Evaluate Proposals & Award 65d 191 Consultancy Services 100d . 195 Capacity Building for New Environmental Liaison Uni 384d 196 Project Appraisal & Consultant Shortlisting 200d 200 IDA No Objection to TOR & Shortlisted Consultan 10d Task _ w _ Summary _ Rolled Up Progress 2 Date: 4/24/97 Progress Rolled Up Task Milestone *Rolled Up MilestoneX Page 2  1996 1997|998[ 1999 |2000 2001 2002 2003 2004 200S [2006 | 2007 2008 ID Task Name Duration '96 '97 98 '99 J '00 '01 '02 '031 '04 '05 '06 ['07 '08 205 Evaluate Proposals & Award 95d 217 Consultancy Services 100d 221 Other 847d Task Summary _ Rolled UpProgress Project: Project Implementation Plan Date: 4/24/97 Progress Rolled Up Task . Milestone *Rolled Up Milestone Page 3  Annex 6 Estimated Schedule of IDA Disbursement Fiscal Year Ending Disbursement Cumulative Cumulative (US$ Million) Disbursement Disbursement (%) (US$ Million) Fiscal Year 1998 June 30 5.3 5.3 23% Fiscal Year 1999 December 31 5.4 10.7 36% June 30 8.0 18.7 55% Fiscal Year 2000 Deceber 31 7.5 26.2 80% June 30 3.8 30.0 100%  Annex 7 Page 1 of 4 Key Indicators for Development Project Objectives OBJECTIVES INPUTS OUTPUTS RISKS AND CRITICAL OUTCOMES AND ASSUMPTIONS IMPACTS Improve institutional IDA Credit (US$30 million) Study on the establishment of Implementation of a Creation of an autonomous efficiency of the road sector GOU Funds (US$3 million) the Road Management Units performance-based staff Road Agency by June 1, remuneration system in the 2000. Agency may face difficulties in view of the need to ensure resource flows for its operation. Redefine of the role of Government White Paper on Usurping of MOWTC's Spin-off executing functions MOWTC the new role and functions of regulatory functions by from MOWTC by June 1, MOWTC, focusing on parastatals and autonomous 2000. economic and technical sector agencies. regulation, sector planning, Strengthening of budget management, and MOWTC's role in sector monitoring of sector agencies planning,, economic by June 1, 1999. regulation, budget management, and monitoring of parastatals. Rehabilitate economic Increased private Private participation may be Commencement of physical infrastructure participation. seen by MOWTC as not investments in support of contributing to speed up economic growth and subproject implementation. market integration by September 1999. Increased volume of road works to be contracted out to the private sector, increasing to 85% of the total in 2000/2001 from 65% in 1996/97. _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _o_  Annex 7 Page 2 of 4 OBJECTIVES INPUTS OUTPUTS RISKS AND CRITICAL OUTCOMES AND ASSUMPTIONS IMPACTS Improve efficiency through 100% of total new Private participation may be Increasing efficiency in the the involvement of the construction and seen by MOWTC as not execution of road works. private sector rehabilitation works contributing to fostering continued to be contracted out capacity building. and increase contracted maintenance to 5% annually Improve environmental Establishment of new Possible contradiction between Improved coordination protection Environmental Liaison Unit enviromnental protection between national within MOWTC by July 1998 requirements and rural environmental policy and development needs. implementation of road programs. I4J >  Annex 7 Page 3 of 4 Key Physical Indicators for Implementation of the Project OBJECTIVES INPUTS OUTPUTS RISKS AND CRITICAL OUTCOMES AND ASSUMPTIONS IMPACTS Preparation of road IDA Credit (US$30million) Completion of studies and Delays in appointment of Commencement of physical strengthening and upgrading GOU Funds (US$3 million) designs for strengthening and consultants and undue investments by September subprojects. improvement of 683 km of influence of the implementing 1999. paved roads by October 1998 agencies. Preselection, feasibility studies and engineering designs of 500 km of feeder roads subprojects Speed up on efficient Lack of sufficient qualified Establishment of the Road Establishment of a Road management of road works. local staff and possible Agency by June 1, 2000. Agency Formation Unit opposition of the implementing agencies. Outcome and Involvement of private/public Implementation of the Strengthen road management recommendations of the stakeholders. recommendations of the capacity studies carried out under the studies by the implementing project. Undue influence of the agencies. implementing agencies and donors. h.g 4  Annex 7 Page 4 of 4 Key Financial Indicators OBJECTIVES INPUTS OUTPUTS RISKS AND CRITICAL OUTCOMES AND ASSUMPTIONS IMPACTS Strengthen Budgetary IDA Credit (US$30million) Implementation of the Road Difficulty in achieving a Institutional capability of Process GOU Funds (US$3 million) Management Information balance between central MOWTC to allocate funds System and articulation with expenditure management and for and audit performance of TSIREP and the Budget sector planning functions. road operations. Framework Paper Proficiency of staff to operate Project funds will be Establishment of a financial the system. properly budgeted, system for project accounted for and audited management. within a satisfactory system of intemal control. Timely availability of local Timely budgetary transfers Failure of the central Timely project counterpart funds government to allocate funds to implementation. the project. _~ ~ ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~4 mP 14  Annex 8 Document Available in the Project F'iles 1. Project Implementation Plan  ___________________________________ I I * I _______________________ IBRD 25052R K ,' -1~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ /"~~---------If - 30' .-< 32' 34' j' 36 SUDAN