Mozambique - First Road & Coastal Shipping Project

 ICRR 10685 Report Number : ICRR10685 ICR Review Operations Evaluation Department 1. Project Data: Date Posted : 08/17/2000 PROJ ID : P001790 Appraisal Actual Project Name : First Road & Coastal Project Costs 144.7 188.5 Shipping Project US$M ) (US$M) Country : Mozambique Loan/ US$M ) 74.3 Loan /Credit (US$M) 74.3 Sector (s): Highways Cofinancing 49.5 88.5 US$M ) (US$M) L/C Number : C2374 Board Approval 92 FY ) (FY) Partners involved : UNDP, SIDA, BADEA, Closing Date 06/30/1998 12/31/1999 EEC, FRANCE, UNCDF, SWISS, NORAD, AfDB, DANIDA, GERMANY, RSA, SPAIN, USAID Prepared by : Reviewed by : Group Manager : Group : 2. Project Objectives and Components a. Objectives The objectives of the project were to provide assistance for: (i) developing human resource capacity in roads and coastal shipping sub-sectors; (ii) strengthening government institutions, state enterprises and local private companies to enable them to cost-effectively manage transport infrastructure and services; (iii) implementing policy reforms for effective management of national resources and increased involvement of the private sector in road rehabilitation and maintenance, small-port management, and the provision of adequate trucking and cabotage transport services; and (iv) supporting the government's Priority Districts Program (PDP) to remove transport related obstacles that were hampering employment generation, poverty alleviation, self sufficiency in food production, expansion of exports, and improvement in business mobility. b. Components To achieve the above objectives, the project comprised two components: Roads component and Small Ports and Coastal Shipping component. Roads Component included the following sub-components: (a) institutional support to strengthen planning and supervisory capabilities for road rehabilitation and maintenance; (b) manpower development and training; (c) economic and feasibility studies for the rehabilitation or improvement of roads; (d) development of local contractors capable of undertaking road maintenance; (e) Feeder Roads Program (FRP); and (f) studies to strengthen the trucking industry. Small Ports and Coastal Shipping Component included the following sub-components: (a) institutional support and policy reform; (b) manpower development and training; (c) credit line to finance investments in small ports;  (d) rehabilitation or upgrading of both marine and land infrastructure; and (e) trade facilitation. The Development Credit Agreement (DCA) was amended three times (April 1993, August 1994 and March 1999) due to changing circumstances. The original objectives were not changed. The revisions included: cancellation of the credit line to finance investments in port and shipping; rehabilitation or construction of offices of the National Directorate of Roads and Bridges (DNEP), the Industrial Institute of Maputo (IIM), the Industrial Institute of Beira (IIB) and the Road Training Center in Chimoio; implementation of an emergency roads program; strengthening institutional capacity of the Ministry of Transport and Communications (MTC); and implementation of an emergency urban street repair program. c. Comments on Project Cost, Financing and Dates The actual cost of the project is US$ 188.5 million compared to appraisal estimate of US$ 144.7 million. The additional costs were financed by the existing donors, addition of two new donors (Department for International Development and World Food Program) and GOM. The credit was fully disbursed. The project was extended twice and closed on December 31, 1999, eighteen months later than the original closing date of June 30, 1998. 3. Achievement of Relevant Objectives: The project achieved all of its major objectives. It assisted in the development of human resource capacity to improve the management of transport sector. With the establishment of Roads Technical Training Center (CTE), more than 9,600 staff from DNEP, Provincial Department of Roads and Bridges (DEP) and Provincial State Enterprise for Construction and Maintenance of Roads (ECEMPs) were trained. More than 114 engineers and technical specialists were trained at universities in Mozambique and abroad. The project improved the institutional framework within which the transport sector was organized: (i) an autonomous road agency, the National Administration of Roads (ANE) was created to maintain and manage the main road network. (ii) ten Provincial State Enterprises (ECMEPs) were consolidated into three publicly owned regional companies, each having an independent management board. (iii) MTC was restructured and new directorates for Shipping and Ports, Land Transport (covering rail and road transport) and Economics were created. The project assisted in implementing policy reforms to increase private sector participation in construction and maintenance of transport infrastructure and promotion of effective management and maintenance of the road network. The project supported PDPs through the rehabilitation of extensive network of feeder roads. More than 3500 kms of feeder roads were rehabilitated and more than 2000 kms maintained, far exceeding the SAR estimate of 2600 kms. 4. Significant Outcomes/Impacts: The significant impacts of the project are: promotion of private sector participation in (a) construction and rehabilitation of infrastructure, and (b) establishment of air and shipping transport companies. improvement of feeder roads network, thereby removing transportation bottlenecks in agriculture production and distribution. 5. Significant Shortcomings (including non-compliance with safeguard policies): The main shortcoming of the project is that it does not provide a maintenance plan for the vastly improved feeder roads network. 6. Ratings : ICR OED Review Reason for Disagreement /Comments Outcome : Satisfactory Satisfactory Institutional Dev .: Substantial Substantial Sustainability : Likely Likely Bank Performance : Satisfactory Satisfactory Borrower Perf .: Satisfactory Satisfactory Quality of ICR : Satisfactory NOTE ICR rating values flagged with ' * ' don't comply with OP/BP 13.55, but are listed for completeness. NOTE: 7. Lessons of Broad Applicability: The ICR identifies the following lessons of broad applicability: (a) training programs designed to improve human resource capacity should be based on local needs and environment; and (b) donor community needs to develop a common strategy for successful implementation of institutional reforms. 8. Assessment Recommended? Yes No 9. Comments on Quality of ICR: The overall quality of the ICR is satisfactory.