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AFRICAN DEVELOPMENT FUND
STUDY FOR NATIONAL TRANSPORT SECTOR MASTER PLAN UPDATE
COUNTRY : ANGOLA
OITC DEPARTMENT
August 2013
Appraisal Team
Regional Director : Mr. C. OJUKWU, ORSB
Sector Director : Mr. A. OUMAROU, OITC
Team Leader : Mr. T. HARADA
TABLE OF CONTENTS
I – STRATEGIC THRUST & RATIONALE ....................................................................... 1
1.1. Study linkages with country strategy and objectives ...................................................... 1
1.2. Rationale for Bank’s involvement .................................................................................. 1
1.3. Donors coordination ........................................................................................................ 2
II – STUDY DESCRIPTION .................................................................................................. 2
2.1. Background ..................................................................................................................... 2
2.2. Study objective ................................................................................................................ 3
2.3. Study components ........................................................................................................... 4
2.4. Technical solution retained and other alternatives explored ........................................... 4
2.5. Study type ....................................................................................................................... 4
2.6. Study cost and financing arrangements .......................................................................... 4
2.7. Study’s target area and population .................................................................................. 5
2.8. Participatory process for study identification, design and implementation .................... 6
2.9. Bank Group experience, lessons reflected in study design ............................................. 6
2.10.Key performance indicators ........................................................................................... 6
III – STUDY FEASIBILITY ................................................................................................... 6
3.1. Economic and financial performance ............................................................................. 6
3.2. Environmental and Social impacts .................................................................................. 6
IV – IMPLEMENTATION ..................................................................................................... 7
4.1. Implementation arrangements ......................................................................................... 7
4.2. Monitoring ...................................................................................................................... 8
4.3. Governance ..................................................................................................................... 8
4.4. Sustainability ................................................................................................................... 8
4.5. Risk management ............................................................................................................ 8
4.6. Knowledge building ........................................................................................................ 9
V – LEGAL INSTRUMENTS AND AUTHORITY ............................................................. 9
5.1. Legal instrument ............................................................................................................. 9
5.2. Conditions associated with Bank’s intervention ............................................................. 9
5.3. Compliance with Bank Policies ...................................................................................... 9
VI – RECOMMENDATION................................................................................................. 10
Appendix I. Country’s comparative socio-economic indicators
Appendix II. Table of ADB’s portfolio in the country
Appendix III. Key related projects financed by the Bank and other development partners in the
country
Appendix IV. Map of the Study Area
i
Currency Equivalents As of July 2013
Currency Unit = Angolan Kwanza (AON) UA 1.0 = AON 144.13
UA 1.0 = US$ 1.50
US$ 1.0 = AON 95.84
Fiscal Year
01 January – 31 December
Weights and Measures
1metric tonne = 2,204 pounds (lbs)
1 kilogramme (kg) = 2.200 lbs
1 metre (m) = 3.28 feet (ft)
1 millimetre (mm) = 0.03937 inch (“)
1 kilometre (km) = 0.62 mile
1 hectare (ha) = 2.471 acres
Acronyms and Abbreviations
ADB = African Development Bank
ADF = African Development Fund
CSP = Country Strategy Paper
CFB = Caminhos de Ferro de Benguela (Benguela Railway)
EU = European Union
GOA = Government of Angola
JICA = Japan International Cooperation Agency
Pre-F/S = Preliminary Feasibility Study
SADC = Southern African Development Community
TOR = Terms of Reference
UA = Unit of Account
USAID = United States Agency for International Development
ii
Loan Information
Client’s information
BORROWER : The Republic of Angola
EXECUTING AGENCY : Ministry of Transport
Financing plan
Source Amount (UA) Instrument
ADF 2.90 million Loan
Government of Angola 0.38 million Counterpart fund
TOTAL COST 3.28 million
ADB’s key financing information
Loan currency
UA
Interest type N/A
Interest rate spread 1%
Commitment fee 0.5%
Other fees 0.75% on the
amount disbursed
and outstanding
from time to time
Tenor 30 years
Grace period 8 years
FIRR, NPV (base case) N/A
EIRR (base case) N/A
Timeframe - Main Milestones (expected)
Concept Note approval
July 2012
Study approval September 2013
Effectiveness October 2013
Last Disbursement August 2016
Completion August 2015
iii
Study Summary
1. Study Overview
Study for National Transport Sector Master Plan Update comprises 2 components: 1)
National Transport Sector Master Plan Update incorporating existing plans and studies to a)
formulate an overall strategy and policy for the nationwide transport network, composed of
roads, railways, inland waterways, ports and airports in Angola, b) elaborate a nationwide
and integrated transport network for the future, connecting the existing transport
infrastructure, and c) identify and select priority projects with justifications, and 2)
Preliminary Feasibility Study (Pre-F/S) on the Railway Link between the existing railway
named “Caminhos de Ferro de Benguela (CFB)” and Zambia. An optimum route for a
railway link connecting CFB and Zambia among different options will be selected, based on
traffic data, natural, social and economic information, and environmental and social aspects,
as well as economic and financial analysis of the optimum route.
The first component will be completed within 15 months from the beginning of the
consultancy services, whereas the latter will take 6 months. The study will cost UA 3.28
million, of which UA 2.90 million will be an ADF loan.
The direct beneficiaries of the study are the Ministry of Transport and the Ministry of
Urbanism and Construction including the transport-related entities under the ministries.
The National Transport Sector Master Plan Update will enable the Government of Angola
(GOA) to timely and properly make decisions and take actions toward better transport
infrastructure and services, while the Pre-F/S on the Railway Link between CFB and Zambia
will provide a basis for the GOA’s next actions for development of the railway link, including
the private sector involvement.
2. Needs Assessment
The Bank’s intervention in the study is timely, because 1) Angola, at the final stage of
rehabilitation, is now urgently requiring new perspectives on a nationwide and integrated
transport network for the future, connecting the existing transport infrastructure, and 2) the
Pre-F/S on the Railway Link should be commenced as soon as possible in light of the
enhanced interests by the both governments of Angola and Zambia and the fact that some
studies have been already done on the Zambian side.
3. Bank’s Added Value
The Bank will be able to support the GOA in the study not only financially but also
technically, having experience of interventions in similar studies for other member countries.
Also, the Bank will be able to provide the GOA with advice for the Pre-F/S on the Railway
Link between CFB and Zambia, as it has on-going interventions in the transport sector in
Zambia.
4. Knowledge Management
The study will unveil the current situation of the transport sector in Angola which is not well
known so far, despite its importance in the regional context. The study is expected to identify
future Bank’s intervention, such as financing for priority projects to be identified in the
National Transport Sector Master Plan Update, as well as financing for the full-scale
feasibility study and detailed engineering design on the Railway Link between CFB and
Zambia whose TOR shall be elaborated by the Pre-F/S.
iv
Result-based Logical Framework
Country and study name: Angola – Study for National Transport Sector Master Plan Update
Purpose of the study : to carry out studies that will provide GOA with a clear vision of transport infrastructure development up to 2025
RESULTS CHAIN
PERFORMANCE INDICATORS MEANS OF
VERIFICAT
ION
RISKS/MITIGATI-ON MEASURES Indicator
(including CSI)
Baseline
[2012] Target
IMP
AC
T
Socio-economic development,
poverty reduction and regional
integration through an improved and
sustainable transport system
GDP growth rate
6.8%
(IMF
forecast)
7.5-8.5 %
(Target of the long-
term strategy “Angola
2025”)
[2015-2025]
GOA’s
statistics
Risk
Failure to allocate enough budgets to develop and
maintain the transport infrastructure
Mitigation measures
GOA’s efforts with the assistance of development
partners
OU
TC
OM
ES
GOA is capable to timely and
properly make decisions and take
actions for the transport sector
Institutional framework in
place to ensure transport
infrastructure development
based on the studies
None
Establishment of the
institutional
framework
[2015]
GOA’s
document
Risk
GOA’s decreasing commitment to implement the
outputs of the studies
Mitigation measures
Regular dialogue and follow-up by the Bank and
other development partners
OU
TP
UT
S
Component 1: National Transport
Sector Master Plan Update prepared
Component 2: the Preliminary
Feasibility Study on the Railway
Link completed
Study reports
None
Study reports
submitted and
approved
Component 1 [2015]
Component 2 [2014]
Study reports
produced
Risk
1. Delays in the procurement
2. Delays in the implementation, not meeting quality
standards
Mitigation measures
1. Realistic contract award plan
2. Precise ToR and efficient monitoring
KE
Y A
CT
IAV
ITIE
S
COMPONENTS INPUTS
Component 1: Preparing the National Transport Sector Master
Plan Update
Component 2: Carrying out the Preliminary Feasibility Study on
the Railway Link between CFB and Zambia
Component 3: Provision of the Technical Assistance
Component 4: Carrying out the Financial Audit
Costs (million UA)
Studies 2.66
Technical assistance 0.19
Financial audit 0.03
Base cost 2.88
Price escalation 0.40
Study cost 3.28
Sources of financing (million UA)
ADF Loan 2.90 [88%]
GOA 0.38 [12%]
Total 3.28 [100%]
v
Study Timeframe
Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct
Board Approval *
Signature of Loan Agreement *
GPN Publication *
TA (Procurement)
Shortlisting
Evaluation
Award of Contract *
Technical Assistance Services 1 2 1 2 3 19
Study
Shortlisting
Issuance of RFP *
Receipt of Proposals *
Evaluation of Proposals
Award of Contract *
Mobilization
Implementation of Study 1 2 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15
TA (Study Management)
Shortlisting
Issuance of RFP *
Receipt of Proposals *
Evaluation of Proposals
Award of Contract *
Mobilization
Technical Assistance Services 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16
Financial Audit
Shortlisting
Issuance of RFP *
Receipt of Proposals *
Evaluation of Proposals
Award of Contract *
Mobilization
Financial Audit Services 1 2 3 4 5 6 7 8 9 10 11 12 13 14
TA: Technical Assistance
20152013 2014
1
REPORT AND RECOMMENDATION OF THE MANAGEMENT TO THE BOARD
OF DIRECTORS ON A PROPOSED LOAN TO THE REPUBLIC OF ANGOLA TO
FINANCE THE STUDY FOR NATIONAL TRANSPORT SECTOR MASTER PLAN
UPDATE
Management submits the following Report and Recommendation on a proposed loan for UA
2.9 million on loan to finance the Study for National Transport Sector Master Plan Update in
the Republic of Angola.
I. STRATEGIC THRUST & RATIONALE
1.1. Study linkages with country strategy and objectives
1.1.1 The strategic pillars of the Country Strategy Paper (CSP) 2011-2015 are Pillar I:
Stimulus to the Competitiveness of the economy and Pillar II: Support to Economic
Infrastructure Development. Transport is one of the two sectors which are given priority in
terms of financing infrastructure development. The outcome of the study will enable the
Government of Angola (GOA) to timely and properly make decisions and take actions for the
transport infrastructure development which will enhance the competitiveness of the economy
of Angola and the region. The study area including the railway link is identified in the CSP
2011-2015.
1.1.2 Angola does not have a Poverty Reduction Strategy Paper (PRSP) but launched a
long-term strategy named “Visão 2025” in 2010. Another long term vision named “Angola
2025”, published by the Ministry of Planning, articulates the vision of transport infrastructure
development: “construction of an integrated transport network at the national level based on a
comprehensive and integrated level of road, rail, maritime and air transport...”. The proposed
study is to elaborate a nationwide and integrated transport network for the future, connecting
the existing transport infrastructure, which is in line with the foregoing vision.
1.2. Rationale for Bank’s involvement
1.2.1 The Bank will be able to support the GOA in the studies not only financially but also
technically, having experience of interventions in similar studies for other member countries.
Also, the Bank will be able to provide the GOA with advice for the Preliminary Feasibility
Study (Pre-F/S) on the Railway Link between Caminhos de Ferro de Benguela (CFB) and
Zambia, as it has on-going interventions in the transport sector in Zambia. Close
communication between the Bank and the GOA through the presence of Angola Country
Office will be favourable for the smooth implementation of the studies.
1.2.2 The intervention in the studies is timely, because 1) Angola, at the final stage of
rehabilitation, is now urgently requiring new perspectives on a nationwide and integrated
transport network for the future, connecting the existing transport infrastructure; and 2) the
Pre-F/S on the Railway Link should be commenced as soon as possible in light of the
enhanced interests by the both governments of Angola and Zambia and the fact that some
studies have been already done on the Zambian side.
2
1.3. Donors coordination
1.3.1 The Bank has not yet provided support for the transport sector in Angola. The World
Bank financed a program named “Emergency Multi-sector Recovery – Phase2” which
includes rehabilitation of 150 km of trunk roads and 600km of feeder roads. EU financed the
“Feasibility Study Western Part TAH 9 Beira Lobito” including a feasibility study that covers
a 1,161-km road section on Lobito Corridor within Angola and the Democratic Republic of
Congo (DRC). JICA carried out a study to prepare a rehabilitation project in Port of Namibe,
including a preliminary design, implementation plan and cost estimates, based on which a
grant aid for development of a multi-purpose terminal is currently under consideration. Most
of the railway rehabilitation has been funded by China.
1.3.2 Donor activity in Angola has shifted in the last two years to an increased presence in
cross-cutting areas such as environment, decentralization, private sector development, and
regional integration. There is no formal donor coordination, but informal meetings are held
occasionally. A thematic Working Group meets when needed. With the opening of the
Bank’s Country Office in Angola, the Bank aims to play a bigger role in this Working Group.
Table 1.1
Overview of Major Donor Assistance in Angola
Sector or subsector*
Size
GDP Exports Labor Force
Transport N/A N/A N/A
Players - Public Annual Expenditure (2008-2011 average)**
Donors Amount(US$ mil.) %
EU 64.0 33.3
USAID 44.5 23.1
World Bank 35.8 18.6
Italy 26.2 13.6
Norway 21.9 11.4
Total 192.4 100.0
Level of Donor Coordination
Existence of Thematic Working Groups Y
Existence of SWAPs or Integrated Sector Approaches N
ADB's Involvement in donors coordination*** M****
* as most appropriate , ** The figures are for all sectors (the figure for the transport sector is not
available), *** for this sector or sub-sector, **** L: leader, M: member but not leader, none: no
involvement
II STUDY DESCRIPTION
2.1. Background
2.1.1 Transport sector in Angola: After 27 years of conflict that ended in 2002, political
stability and peace set the ground for an economic boom in Angola fuelled by increased oil
production. The increasing revenues have enabled Angola to intensively rehabilitate its
transport infrastructure, namely roads, railways, ports and airports up to now. However,
Angola is still facing shortage of transport infrastructure and low service quality despite the
intensive rehabilitation. Thus, it seems to be reaching a turning point from the era of
3
rehabilitation of deteriorated infrastructure into the era of development of infrastructure
required for the country’s further economic growth in future.
2.1.2 Needs of a master plan for the transport sector: The recent rehabilitation of
transport infrastructure has been implemented based on the Public Investment Plan (PIP) with
a list of a number of facilities to be rehabilitated. However, the transport infrastructure
development in Angola from now on will not be the same as the rehabilitation which was to
return the existing infrastructure once deteriorated to its previous condition. It should be well
planned and implemented with a clear strategy, priority and justification based on thorough
surveys and analysis, with which GOA will effectively allocate the state budget, induce the
private sector’s investment, and obtain the development partners’ fund as needed. In addition
to transport infrastructure development, it is required to improve the transport service and its
sustainability by addressing various issues, such as transport safety, road maintenance, the
serious traffic jam in Luanda and so on. One of the major reasons why the transport sector is
still facing a lot of problems despite the country’s considerably high economic indices is
limited capacity of government institutions. For the reasons above, an integrated national
transport sector master plan, built on existing plans and studies, is highly required,
highlighting improvement in the transport infrastructure and services, so that GOA will be
able to timely and properly make decisions and take actions for the transport sector.
2.1.3 Railway link between CFB and Zambia: CFB is a railway connecting Port of
Lobito and a DRC border named Luau. Currently, the section between Lobito and Huambo is
operational, whereas the remaining section is under rehabilitation and will be operational by
the end of 2013. GOA and Government of Zambia (GOZ) intend to establish a direct railway
link between CFB and an existing railway in Zambia, whose length will be roughly 300 km
in Angola and 554 km in Zambia. The railway link, which would boost the growth of Port of
Lobito, facilitate Zambia to export its mineral resources through an alternative route, as well
as facilitate Angola to export its oil products from Lobito to Zambia, is a very important and
urgent issue for Angola in the light of the political commitment where the Lobito Corridor
development has reached an advanced consensus between the two governments. However, no
study has been carried out so far on the Angolan side, whereas in Zambia a concessionaire
has already carried out a pre-feasibility study on some sections within the missing link. In this
situation, GOA is now very keen on a study on the railway link, so as to have a basis for the
GOA’s next actions for development of the railway link, including the private sector
involvement.
2.1.4 It is on this basis that GOA requested the Bank in December 2012 for assistance in
carrying out a study to prepare an updated National Transport Sector Master Plan as well as a
preliminary feasibility study on the railway link between CFB and Zambia.
2.2. Study objective
The study objective is to provide GOA with an integrated master plan built on
existing plans and studies with a clear strategy, priority and justification in terms of transport
infrastructure development including the Railway Link between CFB and Zambia, so that
GOA can have a clear vision of infrastructure development up to 2025, the target year of the
“Visão 2025”.
4
2.3. Study components
The study components are summarized below:
Table 2.1
Study Components
No. Component Name Estimated
Cost
(UA mil.)
Component Description
1 National Transport
Sector Master Plan
Update
2.14 formulate an overall set of strategies and policies for the
nationwide transport network, composed of roads, railways,
inland waterways, ports and airports
elaborate a nationwide and integrated transport network for
the future, connecting the existing transport infrastructure,
along the strategies and policies mentioned above, and
identify and select priority projects with justifications
2 Pre-F/S on the
Railway Link between
CFB and Zambia
0.52 select an optimum route for a railway link connecting CFB
and Zambia among different options, based on traffic data,
natural, social and economic information, and
environmental and social aspects, as well as economic and
financial analysis of the optimum route
3 Technical Assistance 0.19 [Procurement] assist the executing agency in procurement
process for the study
[Study management] assist the executing agency in
monitoring study activities and reviewing various reports
prepared
4 Financial Audit
0.03 An audit by external independent auditors to express an
opinion on the financial statements provided to the Bank
and provide reasonable assurance that the funds have been
applied for the intended purposes with due attention to
economy and efficiency
2.4. Technical solution retained and other alternatives explored
The proposed study will provide GOA with tools for making decisions and taking
actions required for improvement of transport infrastructure and services.
2.5. Study type
The study is a standalone operation that will be financed by a loan from the ADF,
through the lending facilities of the Bank's windows for performance-based country
allocations (PBA).
2.6. Study cost and financing arrangements
2.6.1 The estimated cost of the study, net of taxes and customs duty, will amount to UA
3.28 million, of which UA 2.94 million (90% of the study cost) payable in foreign currency
and UA 0.34 million (10% of the study cost) payable in local currency. This cost includes
13.7% provision for price escalation. It was estimated on the basis of the unit prices of similar
studies approved lately by the ADF. The estimated study cost is summarized in Table 2.2.
2.6.2 The study will be financed by the ADF and GOA. ADF financing will not exceed UA
2.90 million. This financing represents 88% of the total cost and will cover 98% of the
foreign currency cost and 3% of the local currency cost. ADF financing will cover the
financial audit and part of the expenditure on the study 1, study 2 and the technical assistance.
GOA will contribute UA 0.38 million to study financing, representing 12% of the total cost
and will cover 2% of the foreign currency cost and 97% of the local currency cost. The
contribution of GOA will cover part of the expenditure on the study 1 and 2 and the technical
assistance.
5
Table 2.2
Study Cost Estimates by Component [amounts in million UA equivalents]
Components
Foreign
Currency
Costs
Local
Currency
Costs
Total
Costs % Foreign
Study1 - National Transport Sector Master Plan Update 1.91 0.23 2.14 89%
Study2 - Pre-F/S on the Railway Link between CFB
and Zambia
0.46 0.06 0.52 88%
Technical Assistance 0.18 0.01 0.19 95%
Financial audit 0.03 0.00 0.03 100%
Total Base Cost 2.58 0.30 2.88 90%
Price Contingency 0.36 0.04 0.40 90%
Total Study Cost 2.94 0.34 3.28 90%
Note: Exchange rates are provided in the introduction of this report (page (i)).
Table 2.3
Sources of financing [amounts in million UA equivalents]
Sources of Financing
Foreign
Currency
Costs
Local
Currency
Costs
Total Costs % Total
ADF Loan 2.89 0.01 2.90 88%
GOA 0.05 0.33 0.38 12%
Total 2.94 0.34 3.28 100%
2.6.3 The study cost by category of expenditure and the expenditure schedule are shown in
Table 2.4 and 2.5 below respectively.
Table 2.4
Study cost by category of expenditure [amounts in million UA equivalents]
Categories of
expenditure
Foreign
Currency
Costs
Local
Currency
Costs
Total Costs % Foreign
Consultancy Services 2.58 0.29 2.87 90%
Goods - 0.01 0.01 0%
Total base cost 2.58 0.30 2.88 90%
Price Contingency 0.36 0.04 0.40 90%
Total study cost 2.94 0.34 3.28 90%
Table 2.5
Expenditure schedule by component [amounts in million UA equivalents]
Components 2014 2015 Total
Study 1.33 1.33 2.66
Technical Assistance 0.10 0.09 0.19
Financial Audit 0.01 0.02 0.03
Total base cost 1.44 1.44 2.88
2.7. Study’s target area and population
Since the study will deal with the whole national transport sector of Angola, the study
area is the entire country and the direct study beneficiaries is the Angolan nation who will
enjoy the transport infrastructure and services to be developed and improved based on the
outcomes of the study.
6
2.8. Participatory process for study identification, design and
implementation
The transport-related private sector was interviewed and their views and opinions
have been incorporated in the study components and the implementation arrangement. The
study will require significant consultation especially about project priority and environmental
and social aspects, through workshops and public consultations with all relevant stakeholders.
The working group to be mentioned in 4.1.2 will be responsible for facilitating all workshops
and public consultations.
2.9. Bank Group experience, lessons reflected in study design
2.9.1 Some of the lessons learned pointed out in the current CSP were reflected in the study
preparation and design. Regarding the “limited Government interest, capacity and ownership”
mentioned in the CSP, the mission team met high officials of the Ministry of Transport and
the Ministry of Planning, including the ministers, and confirmed that the study was urgent
and of a matter of great interest to GOA.
2.9.2 For the counterpart funds issue, the mission team met the Ministry of Planning and
explained the counterpart fund required for this study. On the other hand, the mission team
confirmed with the Ministry of Transport, the executing agency, that the ministry would take
necessary action to secure the counterpart fund registering under the Public Investment Plan
(PIP).
2.9.3 As for the dissemination of the Bank’s procedures to GOA officials, the Bank will
have to elaborately explain and disseminate the Bank’s procedures to the executing agency,
since the study will be the first intervention of the Bank in the transport sector in Angola.
2.10. Key performance indicators
The key performance indicators and expected outcomes upon study completion are
indicated in the results-based logical framework. The indicators for the impact and outcomes
are: i) the GDP growth rate as a measure of “Socio-economic development, poverty reduction
and regional integration through an improved and sustainable transport system” and ii)
Establishment of the institutional framework, such as an inter-ministerial committee, to
ensure transport infrastructure development based on the National Transport Sector Master
Plan Update and Pre-F/S on the Railway Link between CFB and Zambia, as the capability to
timely and properly make decisions and take actions for the transport sector. These indicators
will be followed and evaluated during the study implementation based on economic reports
and GOA’s documents.
III STUDY FEASIBILITY
3.1. Economic and financial performance
Not applicable in case of study in case of study, but economic and financial analysis
will be considered in the Study for National Transport Sector Master Plan Update in
particular the pre-F/S on the railway link between CFB and Zambia.
3.2. Environmental and Social impacts
Environment
3.2.1 The category of the Bank’s environmental and social assessment procedures is not
applicable for studies.
7
3.2.2 Environmental aspects related to priority projects will be considered in the National
Transport Sector Master Plan Update. During the Pre-F/S on the Railway Link between CFB
and Zambia, environmental aspects will be identified, if any, for each optional route of the
railway link. Also, the Pre-F/S will elaborate Terms of Reference (TOR) for ESIA to be
carried out during the full-scale feasibility study subsequent to the Pre-F/S.
Climate change
3.2.3 National Transport Sector Master Plan Update will refer to how climate change
(mitigation and adaptation) is being and should be addressed in the transport sector. The Pre-
F/S on the Railway Link between CFB and Zambia will identify some components related to
climate change resilience to be addressed in the full-scale feasibility study for the railway link.
Gender / Social / Involuntary resettlement
3.2.4 Gender/social/resettlement issues related to priority projects will be considered in the
National Transport Sector Master Plan Update. During the Pre-F/S on the Railway Link
between CFB and Zambia, gender/social/resettlement issues will be identified, if any, for
each optional route of the railway link. Also, the Pre-F/S will elaborate TOR for ESIA and
RAP to be carried out during the full-scale feasibility study subsequent to the Pre-F/S.
IV IMPLEMENTATION
4.1. Implementation arrangements
Study implementation
4.1.1 Ministry of Transport will be the executing agency for the study. Gabinete de Estudos,
Planeamento e Estatistica (GEPE), Ministry of Transport, will be the focal point liaising with
the consultants and the Bank. A Study Coordinator with the relevant experience who is
responsible for the day-to-day management of the studies shall be nominated. Technical
assistance by a consultant to be hired under ADF, who assists the executing agency in
monitoring study activities and reviewing various reports prepared, will be provided to
address the capacity constraint. To address the capacity constraint in the area of procurement
management a procurement specialist would be recruited under ADF. The Ministry of
Transport shall designate a suitably qualified officer to handle financial management aspects
of the study.
4.1.2 A working group comprising various authorities and entities involved in road, rail,
inland waterways, maritime and air transport sectors including the private sector, will be
established. The working group will be responsible for providing technical guidance on the
study, monitoring the implementation of the study, reviewing the consultant’s reports and
facilitating the consultant’s activities. The GEPE will be the secretariat for the study, and will
lead the working group.
Procurement
4.1.3 All procurement of goods and works and acquisition of consulting services financed by
the Bank will be in accordance with the Bank's Rules and Procedure for Procurement of Goods
and Works(May 2008 edition, revised July 2012) and Rules and Procedure for the Use of
Consultants (May 2008 edition, revised July 2012), using the relevant Bank Standard Bidding
Documents. The Ministry of Transport, through GEPE as focal point, will be responsible for
the procurement of goods and consulting services. A detailed procurement arrangement is
shown in Technical Annex IV.
8
Disbursement
4.1.4 The Direct Payment method shall be used to disburse funds, i.e, the consultancy services
for the study, the technical assistance consultant, the external auditors and suppliers of identified
IT equipment (computers and printers) shall be paid directly by ADF upon requisite of all
necessary documentation.
Financial audit
4.1.5 Study financial statements shall be prepared and audited on annual basis. The audit
shall be conducted in accordance with Bank approved auditor TOR, and the audited study
financial statements shall be submitted within 6 months after year end.
4.2. Monitoring
4.2.1 Monitoring will comprise technical monitoring conducted by GEPE and the working
group mentioned in 4.1.2, supplemented with an individual consultant (technical assistance
for study management and monitoring) and supervision missions from the Bank. The
timeframe is as shown below.
Timeframe Milestone Monitoring Process /
Feedback loop
Q3-2013 Study launch Launching mission
Q1/Q3-2014
Q1-2015 Study works Supervision missions
Q3-2015 Study completion Project Completion Report
4.3. Governance
In the current CSP, “civil society access to information on public affairs” is raised as
one of the governance issues, although the CSP recognizes improvements in it. This study
will further improve the civil society access to information on public affairs by improving the
transport statistics.
4.4. Sustainability
4.4.1 It is recommended that the Bank maintain a dialogue with GOA concerning the
establishment of the institutional framework such as an inter-ministerial committee, as well
as endorsement of the outputs of National Transport Sector Master Plan Update as GOA’s
official master plan, to ensure transport infrastructure development based on this study.
4.4.2 It is recommended that the sector department of the Bank review the outputs of the
Pre-F/S on the Railway Link between CFB and Zambia upon its completion, and prepare as
appropriate for the Bank’s funding for a full-scale feasibility study and detailed engineering
design on the railway link, so that GOA will be able to proceed to the next step by fully
making use of the results of this study.
4.5. Risk management
4.5.1 There is a risk of GOA not committing adequate budget to develop and maintain the transport infrastructure as per the recommendations of the studies. As mitigation measures, GOA is expected to continue to give the transport sector high priority, as well as seek funds from development partners as necessary.
9
4.5.2 There is a risk of GOA underutilizing the outputs of the studies although GOA has demonstrated its commitment to develop the transport sector. As mitigation measures, the Bank together with other development partners will maintain regular dialogue with GOA and encourage to set up an institutional framework within the government to be responsible for the implementation of the study output. In addition, the participation of stakeholders in the Study for National Transport Sector Master Plan Update will ensure the ownership and mitigate this risk.
4.5.3 There is a risk of delays in the procurement and implementation of the studies, due to limited capacity of executing agency and poorly qualified consultants. As mitigation measures, technical assistance is included as a component. Also, GOA needs to prepare precise TOR, carefully evaluate the technical proposals by candidate consultants, and efficiently monitor the study progress, supported by the Bank as needed.
4.6. Knowledge building
The Study for National Transport Sector Master Plan Update will unveil the current
situation of the transport sector in Angola which is not well known so far, despite its
importance in the regional context. Although the Bank has not undertaken sector intervention
in Angola, the study, as an upstream activity, is expected to identify future Bank’s
intervention, such as financing for priority projects to be identified in the National Transport
Sector Master Plan Update as well as financing for the full-scale feasibility study and detailed
engineering design on the Railway Link between CFB and Zambia whose TOR shall be
elaborated by the Pre-F/S.
V LEGAL INSTRUMENTS AND AUTHORITY
5.1. Legal instrument
The project will be financed pursuant to an ADF loan agreement between the
Republic of Angola and the ADF.
5.2. Conditions associated with Bank’s intervention
Conditions Precedent to the Entry into Force of the Loan Agreement
5.2.1 The Loan Agreement will enter into force upon fulfillment by the Borrower of the
provisions of Section 12.01 of the General Conditions.
Conditions Precedent to First Disbursement of the Loan
5.2.2 The obligation of the Bank to make the first disbursement of the Loan shall be
conditional upon the entry into force of Loan Agreement and the fulfillment by the Borrower,
in form and substance satisfactory to the Fund, of the following conditions:
(i) Provide evidence of the appointment of the study coordinator, whose qualifications
and experience shall be acceptable to the Fund; and
(ii) Provide evidence of the designation of a suitable officer to handle financial
reporting, whose qualifications and experience shall be acceptable to the Fund.
5.3. Compliance with Bank Policies
This study complies with all applicable Bank policies.
10
VI RECOMMENDATION
This study is to facilitate the Government of Angola’s sound administration, decision-
making and timely action for development of transport infrastructure that is crucial for further
economic growth of the country which is now transitioning from the infrastructure
rehabilitation phase to the new development phase. Moreover, this study, which will be an
entry point for the Bank’s intervention in the transport sector in Angola, may identify
transport infrastructure projects for further Bank’s intervention.
Management therefore recommends that the Board of Directors approve the proposed
ADF loan of UA 2.90 million to the Republic of Angola for the purposes and subject to the
conditions stipulated in this report.
I
Appendix I. Country’s comparative socio-economic indicators
Year Angola Africa
Develo-
ping
Countries
Develo-
ped
Countries
Basic Indicators
Area ( '000 Km²) 2011 1,247 30,323 98,458 35,811Total Population (millions) 2012 20.2 1,070.1 5,807.6 1,244.6Urban Population (% of Total) 2012 60.2 40.8 46.0 75.7Population Density (per Km²) 2012 15.7 34.5 70.0 23.4GNI per Capita (US $) 2011 4 060 1 609 3 304 38 657Labor Force Participation - Total (%) 2012 36.6 37.8 68.7 71.7Labor Force Participation - Female (%) 2012 45.8 42.5 39.1 43.9Gender -Related Dev elopment Index Value 2005-2011 0.439 0.502 0.694 0.911Human Dev elop. Index (Rank among 186 countries) 2012 148 ... ... ...Popul. Liv ing Below $ 1.25 a Day (% of Population)2000-2011 54.3 40.0 22.4 ...
Demographic Indicators
Population Grow th Rate - Total (%) 2012 2.7 2.3 1.3 0.3Population Grow th Rate - Urban (%) 2012 4.1 3.4 2.3 0.7Population < 15 y ears (%) 2012 45.9 40.0 28.5 16.6Population >= 65 y ears (%) 2012 2.5 3.6 6.0 16.5Dependency Ratio (%) 2012 93.9 77.3 52.5 49.3Sex Ratio (per 100 female) 2012 98.2 100.0 103.4 94.7Female Population 15-49 y ears (% of total population) 2012 23.0 49.8 53.2 45.5Life Ex pectancy at Birth - Total (y ears) 2012 51.5 58.1 67.3 77.9Life Ex pectancy at Birth - Female (y ears) 2012 53.0 59.1 69.2 81.2Crude Birth Rate (per 1,000) 2012 40.2 33.3 20.9 11.4Crude Death Rate (per 1,000) 2012 13.7 10.9 7.8 10.1Infant Mortality Rate (per 1,000) 2012 96.8 71.4 46.4 6.0Child Mortality Rate (per 1,000) 2012 156.6 111.3 66.7 7.8Total Fertility Rate (per w oman) 2012 5.2 4.2 2.6 1.7Maternal Mortality Rate (per 100,000) 2010 450.0 417.8 230.0 13.7Women Using Contraception (%) 2012 14.4 31.6 62.4 71.4
Health & Nutrition Indicators
Phy sicians (per 100,000 people) 2004-2010 8.0 49.2 112.2 276.2Nurses (per 100,000 people)* 2004-2009 135.0 134.7 187.6 730.7Births attended by Trained Health Personnel (%) 2007-2010 47.3 53.7 65.4 ...Access to Safe Water (% of Population) 2010 51.0 67.3 86.4 99.5Access to Health Serv ices (% of Population) 2000 24.0 65.2 80.0 100.0Access to Sanitation (% of Population) 2010 58.0 39.8 56.2 99.9Percent. of Adults (aged 15-49) Liv ing w ith HIV/AIDS 2011 2.1 4.6 0.9 0.4Incidence of Tuberculosis (per 100,000) 2011 310.0 234.6 146.0 14.0Child Immunization Against Tuberculosis (%) 2011 88.0 81.6 83.9 95.4Child Immunization Against Measles (%) 2011 88.0 76.5 83.7 93.0Underw eight Children (% of children under 5 y ears) 2007-2011 15.6 19.8 17.4 1.7Daily Calorie Supply per Capita 2009 2 079 2 481 2 675 3 285Public Ex penditure on Health (as % of GDP) 2010 2.9 5.9 2.9 8.2
Education Indicators
Gross Enrolment Ratio (%)
Primary School - Total 2010-2012 124.5 101.9 103.1 106.6 Primary School - Female 2010-2012 111.6 98.4 105.1 102.8 Secondary School - Total 2010-2012 31.3 42.3 66.3 101.5 Secondary School - Female 2010-2012 25.5 38.5 65.0 101.4Primary School Female Teaching Staff (% of Total) 1998-2011 24.5 43.2 58.6 80.0Adult literacy Rate - Total (%) 2010 70.1 67.0 80.8 98.3Adult literacy Rate - Male (%) 2010 82.7 75.8 86.4 98.7Adult literacy Rate - Female (%) 2010 58.1 58.4 75.5 97.9Percentage of GDP Spent on Education 2008-2010 3.5 5.3 3.9 5.2
Environmental Indicators
Land Use (Arable Land as % of Total Land Area) 2011 3.3 7.6 10.7 10.8Annual Rate of Deforestation (%) 2000-2009 0.2 0.6 0.4 -0.2Forest (As % of Land Area) 2011 46.8 23.0 28.7 40.4Per Capita CO2 Emissions (metric tons) 2009 1.4 1.2 3.1 11.4
Sources : AfDB Statistics Department Databases; World Bank: World Development Indicators; last update :
UNAIDS; UNSD; WHO, UNICEF, WRI, UNDP; Country Reports.
Note : n.a. : Not Applicable ; … : Data Not Available.
May 2013
0
20
40
60
80
100
120
2004
2005
2006
2007
2008
2009
2010
2011
2012
Infant Mortality Rate( Per 1000 )
Angola Africa
0
500
1000
1500
2000
2500
3000
3500
4000
450020
03
2004
2005
2006
2007
2008
2009
2010
2011
GNI Per Capita US $
Angola Africa
0.0
0.5
1.0
1.5
2.0
2.5
3.0
3.5
4.0
2004
2005
2006
2007
2008
2009
2010
2011
2012
Population Growth Rate (%)
Angola Africa
1
11
21
31
41
51
61
71
2004
2005
2006
2007
2008
2009
2010
2011
2012
Life Expectancy at Birth (years)
Angola Africa
II
Appendix II. Table of ADB’s portfolio in the country
On-Going Portfolio In Angola (UA millions)
PROJECT SECTOR APPROVAL
DATE
EFFECTIVE
DATE
CLOSING
DATE
TOTAL
COST
TOTAL
DISBU
RSED
%
DISBUR
SEMEN
T
Bom Jesus Calenga Rural
Development Project
P-AO-A00-001
Agriculture
and Rural
Development
24/11/2005 14/09/2006 31/12/2012 17.20 7.8 45.66%
Environmental Sector
Support Project
P-AO-CZO-001
Environment 11/03/2009 17/12/2009 31/12/2015 12.00 2.2 18.46%
Financial Support
Management Project
P-AO-KFO-002
Finance 14/11/2007 04/09/2008 31/12/2012 5.90 0.4 7.81%
Sumbe Water Supply
Sanitation And
Institutional Support
Project
P-AO-E00-003
Water and
Sanitation 28/11/2007 04/04/2009 30/06/2013 12.00 0.7 6.10%
Institutional Capacity
Building Poverty
Reduction Project
Governance 23/02/2011 May 2011 30/07/2013 5.17 0.2 4.17%
GRAND TOTAL COMMITMENT 52.27 11.04 16.44%
III
Appendix III. Key related projects financed by the Bank and other
development partners in the country
(1) Study on Urgent Rehabilitation Program of Ports: JICA (2005 - 2006)
A study team conducted surveys and compiled a report, which proposed a short term port
rehabilitation plan for 2010, an urgent rehabilitation program of port facilities, and an
action program for the improvement of port management and operation. The study report
concluded with a variety of recommendations such as: (a) rehabilitation and
modernization of ports, (b) strengthening port administration, management and operation,
(c) future development of Port of Luanda, and (d) preparation of Master Plan of Angolan
Ports.
(2) Grant Aid for Urgent Rehabilitation of Ports in Angola: Japan (2008-2010)
Development of a multi-purpose terminal as the urgent rehabilitation program in Port of
Namibe based on the above study.
(3) Angola Emergency Multi-sector Recovery – Phase 2 : The World Bank
(Effective in 2008 – Closing in 2013)
A program to assist the government to: (a) facilitate agricultural marketing in specific
areas with high agricultural potential that have been affected by the conflict, (b)
reconstruct and rehabilitate critical infrastructure, and (c) strengthen capacity of
participating ministries and agencies for improved governance and transparency and of
local governments for future decentralization. The program includes rehabilitation of
150km of trunk roads and 600km of feeder roads, and Sector Strategy (Water, Power and
Transport) to be produced by the ministries involved.
(4) Preparatory Study on Namibe Port Rehabilitation: JICA (2010 –2011)
A study to prepare a rehabilitation project in Port of Namibe, including a preliminary
design, implementation plan and cost estimates. A grant aid for development of a multi-
purpose terminal is under consideration.
(5) Feasibility Study Western Part TAH 9 Beira Lobito: EU (2011 –2012)
This study is composed of (a) feasibility study of the selected road sections including
comprehensive environmental and social impact report, (b) recommendation for trade and
transport facilitation measures for the corridor, (c) recommendation for program to
implement regionally approved standards, policy and financing system of road
maintenance in the region and for vehicle and axle load regulations and management, (d)
development of a proper structured infrastructure database for the SADC region. The
feasibility study covers the road section Kuito – Luena – Luau – Angola/DRC border –
Mutshatsha – Kolwezi (1,161 km) .