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AFRICAN DEVELOPMENT FUND
TRANS-SAHARA HIGHWAY (TSH) PROJECT
COUNTRY : MULTINATIONAL (ALGERIA/NIGER/CHAD)
PROJECT APPRAISAL REPORT
OITC DEPARTMENT
November 2013
Translated Document
TABLE OF CONTENTS
1 STRATEGIC THRUST AND RATIONALE ............................................................................ 1 1.1 Project Linkages with Country and Regional Strategies and Objectives ................................................. 1 1.2 Rationale for Bank Involvement ............................................................................................................ 1 1.3 Aid Coordination ...................................................................................................................................... 2
2 PROJECT DESCRIPTION ..................................................................................................... 3 2.1 Project Objectives and Components ......................................................................................................... 3 2.2 Technical Solutions Adopted and Alternatives Explored ......................................................................... 5 2.3 Project Type .............................................................................................................................................. 6 2.4 Estimated Project Cost and Financing Arrangements ............................................................................... 7 2.5 Project Areas and Beneficiaries ................................................................................................................ 8 2.6 Participatory Approach to Project Identification, Design and Implementation ...................................... 10 2.7 Consideration of Bank Group Experience and Lessons Learnt from Project Design ............................. 10 2.8 Key Performance Indicators .................................................................................................................... 11
3 PROJECT FEASIBILITY ..................................................................................................... 11 3.1 Economic and Financial Performance..................................................................................................... 11
4 IMPLEMENTATION ............................................................................................................ 14 4.1 Implementation Arrangements ................................................................................................................ 14 4.2 Monitoring/Evaluation ............................................................................................................................ 17 4.3 Governance ............................................................................................................................................. 18 4.4 Sustainability........................................................................................................................................... 18 4.5 Risk Management ................................................................................................................................... 19 4.6 Knowledge Building ............................................................................................................................... 20
5 LEGAL FRAMEWORK ....................................................................................................... 20 5.1 Legal Instrument ..................................................................................................................................... 20 5.2 Conditions Related to Bank Intervention ................................................................................................ 20 5.3 Compliance with Bank Policies .............................................................................................................. 21
6 RECOMMENDATION ............................................................................................................ 21
LIST OF TABLES
No. TITLE Page
Table 2.1 - Project Components .......................................................................................................................................................................... 3
Table 2.2 - Alternative Solutions Explored and Reasons for Rejection .............................................................................................................. 6 Table 2.3 - Consolidated Cost Estimates by Component ................................................................................................................................... 6
Table 2.4 - Estimated Costs by Components and Country .................................................................................................................................. 8
Table 2.5 - Sources of Financing by Country ..................................................................................................................................................... 7 Table 2.6 - Consolidated Costs by Expenditure Categories ................................................................................................................................ 8
Table 2.7 - Allocation of ADF Financing ........................................................................................................................................................... 8
Table 3.1 - Summary of Economic Analysis .................................................................................................................................................... 11 Table 3.2 - Table of the Costs of the Environmental and Social Management Plan
Consolidated Cost Estimates by Component .............................................................................................................................................. …..11
APPENDIX I: COMPARATIVE SOCIO-ECONOMIC INDICATORS
APPENDIX II: TABLES OF BANK PORTFOLIO
APPENDIX III: MAJOR RELATED PROJECTS FINANCED BY THE BANK AND OTHER DEVELOPMENT
PARTNERS
APPENDIX IV: MAP OF PROJECT AREA
ANNEXES: MAJOR ARGUMENTS IN SUPPORT OF THE REPORT
Currency Equivalents May 2013
UA 1 = USD 1.50900
UA 1 = EUR 1.15437
UA 1 = CFAF 757.21708
UA 1 = DZD 118.448
Fiscal Year 1 January - 31 December
Weights and Measures
1 metric tonne = 2,204 pounds
1 metre (m) = 3.28 feet
1 millimetre (mm) = 0.03937 inch
1 kilometre (km) = 0.62 mile
1 hectare (ha) = 2.471 acres
ii
Acronyms and Abbreviations
AADT Annual Average Daily Traffic
AfDB African Development Bank t
ADF African Development Fund
AFD French Development Agency
AMU Arab Maghreb Union
BADEA Arab Bank for Economic Development in Africa
BC Bituminous Concrete
BDEAC Development Bank of Central African States
BOAD/WADB West African Development Bank
BTP Construction and Public Works
CAFER Autonomous Road Maintenance Financing Fund
CBD Competitive bidding documents
CEMAC Economic and Monetary Community of Central Africa
CFAF Franc of the Financial Cooperation in Africa
CLRT Trans-Saharan Road Liaison Committee
CSCP Transport Project Monitoring and Coordination Unit in Chad
CSP Country Strategy Paper
CTS Blood Transfusion Centre
DGGT Directorate General for Public Works
DGR Directorate General for Roads
DGTP Directorate General for Major Works
DTS Trans-Sahara Backbone
DZD Algerian Dinar
EBID ECOWAS Bank for Investment and Development
ECCAS Economic Community of Central Africa States
ECOWAS Economic Community of West African States
ERR Economic Rate of Return
EU European Union
FER Road Maintenance Fund
FSF Fragile States Facility
ICT Information and Communications Technology
IDB Islamic Development Bank
INS National Institute of Statistics
INSEED National Institute for Statistics, Economic and Demographic Studies
JCP Juxtaposed Checkpoint
JTC Joint Technical Committee
KFAED Kuwait Fund for Arab Economic Development
LTS Long-Term Strategy of the African Development Bank
MEQ Ministry of Equipment
MIEP Ministry of Infrastructure and Transport
MTP Ministry of Public Works
NEPAD New Partnership for Africa’s Economic Development
NFSP
NPV
National Food Security Programme
Net Present Value
OFID OPEC Fund for International Development
PDES Economic and Social Development Plan
PIA Project Impact Area
PIDA Programme for Infrastructure Development in Africa
PND National Development Plan (Chad)
PNDT National Transport Development Plan (Algeria)
RISP Regional Integration Strategy Paper
SFD Saudi Fund for Development
SNRS National Road Safety Strategy
SNT National Transport Strategy
STD Sexually Transmitted Diseases
STI Sexually Transmitted Infections
TFPC Technical and Financial Partners' Committee
TSH Trans-Sahara Highway
UA Unit of Account
USD United States Dollar
Veh/D Vehicles per day
VOC Vehicle operating cost
WAEMU West African Economic and Monetary Union
WB World Bank
iii
PROJECT INFORMATION SHEET
Client Information
Donees/Borrowers : Republic of Niger and Republic of Chad
Project : Multinational Trans-Sahara Highway (TSH) Project
Location : Tilaberi and Agadez Regions in Niger; Hadjer Lamis, Lake and
Kanem Regions in Chad; and Tamanrasset Wilaya in Algeria
Executing Agencies : (i) Ministry of Infrastructure and Transport (MIT) in Chad,
acting through the Directorate General for Roads (DGR)
(ii) Ministry of Equipment (MEQ) in Niger, acting through the
Directorate General for Major Works (DGGT)
(iii) Ministry of Public Works (DPW) in Algeria, acting through
the Directorate General for Roads (DGR)
(iv) General Secretariat of the Trans-Sahara Highway Liaison
Committee (CLRT), for the overall cross-cutting project
coordination.
1. Financing Plan
Sources of Financing
Amounts in UA Million Instrument
Chad Niger Algeria Total
ADF-12 Loan (PBA) 8.36 36.48
44.84 Project Loan
ADF-12 Grant (PBA) 8.16 19.71
27.87 Institution Building and
Rehabilitation
ADF grant from cancellation (PBA)
0.38
0.38 Institution Building and
Rehabilitation
ADF-12 loan (RO) 12.54 22.5
35.04 Project Loan
ADF-12 grant (RO) 12.24
12.24 Institution Building and
Rehabilitation
BADEA 6.63 6.63
13.25 Loan
BDEAC 33.02
33.02 Loan
IDB 86.63 9.94
96.57 Loan
KFAED 11.27 9.94
21.21 Loan
OFID 7.95 6.63
14.58 Loan
SFD 16.57
16.57 Loan
Government of Chad 49.24
49.24 Public Investment Budget
Government of Niger
3.83
3.83 Public Investment Budget
Government of Algeria
12.76 12.76 Public Investment Budget
TOTAL 252.60 116.04 12.76 381.40
iv
2. Key ADF Financing Information
Loan/Grant currency Unit of Account (UA)
Interest type N/A
Interest rate margin N/A
Service charge for ADF loans 0.75% per annum on the disbursed loan amount
outstanding
Commitment fee for ADF loans 0.5% on the loan amount not disbursed 120 days
following the signing of the Loan Agreement.
Other costs N/A
Maturity of ADF loans 50 years
Grace period and repayment of ADF
loans
10 years
FRR, NPV (baseline scenario) N/A ERR, NPV (baseline scenario) 15.3% and NPV of CFAF 43 billion
3. Duration - Milestones (expected)
Activities (Month, year)
Concept Note approval May 2013
Project approval December 2013
Effectiveness May 2014
Last disbursement December 2018
Completion December 2018
Last reimbursement May 2064
v
PROJECT SUMMARY
Project Overview
1. This project concerns the Trans-Sahara Highway (TSH) - an infrastructure at the
centre of economic, social, political and security stakes for the continent. The highway is
located on the Algiers/Lagos and Dakar/Djibouti trans-African corridors identified by the
Programme for Infrastructure Development in Africa (PIDA) as priority projects for achieving
NEPAD objectives by 2020.
2. The TSH is 9,022 kilometres long. It serves six countries (Algeria, Mali, Niger,
Nigeria, Chad and Tunisia) and consists of a 4,498 km-long main road (Algiers/Zinder/Lagos)
and three secondary roads: the Tunisian branch (Ghardaïa/Gabès), the Malian branch
(Tit/Kidal-Gao-Bamako) and the Chadian branch (Zinder-Nguigmi/Daboua-Ngouri-
Massakory-Ndjamena). To promote and support the construction of the various sections of
this corridor, the countries involved established the Trans-Sahara Highway Liaison
Committee (CLRT), based in Algiers.
3. The TSH corridor runs through a part of the continent endowed with abundant wealth,
including the fishery resources of Lake Chad, mineral resources such as the uranium being
mined in Arlit, Niger, and underground resources such as the natural gas and oil deposits in
Southern Algeria. The TSH is expected to play a central role in the development of these
resources and, ultimately, contribute to the creation of conditions for improving their
exploitation.
4. The project is expected to: (i) improve TSH service level and increase traffic and trade
between North Africa, West Africa and Central Africa; (ii) reduce the cost of transport and
logistics; (iii) improve the living conditions of residents of the project area and their access to
basic social services (drinking water, schools, health units, etc.); and (iv) contribute to the
overall improvement of security in the Sahara region.
5. The project will last 60 months and cost a total of UA 381.40 million, net of taxes and
customs duties. The Bank Group's contribution stands at UA 120.37 million, or 31.56% of the
total project cost. Other donors are the IDB, BADEA. BDEAC, KFAED, SFD, OFID and the
Governments of Algeria, Niger and Chad.
6. The economic and social benefits of the project directly or indirectly affect all users of
the Trans-Sahara Highway, but mainly the residents of the project impact area (PIA), which
comprises the 32 regions crossed, 74 built-up areas served, spans an area of 4.4 million km²,
and has a population of 60 million inhabitants, shared by Algeria, Tunisia, Mali, Niger, Chad
and Nigeria.
Needs Assessment
7. The Bank is PIDA's executing agency and at seven years from maturity, the
mobilization of resources to meet this programme’s financing needs has only been minimal.
That is why Niger, Algeria and Chad forwarded to the Bank two joint requests, endorsed by
WAEMU, ECCAS and the Trans-Sahara Highway Liaison Committee (CLRT). In addition,
the project is part of Chad’s 2013-2015 National Development Plan (PND) and Niger’s 2012-
2015 Economic and Social Development Plan (PDES). It is consistent with the Bank’s 2013-
2022 Long-Term Strategy (LTS), which prioritizes infrastructure, regional integration and the
private sector, and therefore entails proper use of resources. In this regard, there is an urgent
need for the Bank to act now, following the appraisal mission that it fielded in May 2013.
vi
8. This project complements the initiatives of development partners and various
governments in the region. It mainly complements the great Algerian North/South Gas
Pipeline Development Project, the Drinking Water Supply Project in Southern Algeria and the
creation of two new university cities in the country’s Sahara region. Consequently, the Bank's
involvement in this project meets a genuine need and strongly supports the Government's on-
going initiatives.
Bank Value Added
9. Considering that the Bank is a strategic partner of Africa, in general, and Chad, Niger
and Algeria, in particular, its involvement is necessary to support the development efforts of
these three countries. This is paramount because: (i) given that the Bank has already financed
nine sections of the TSH (one in Algeria, four in Niger, two in Chad, one in Mali and one in
Nigeria), it has the operational experience and technical expertise required for implementing
this project; (ii ) by contributing to the development of the missing links of the TSH, the Bank
will be assuming its role as a major financial institution in Africa and thus be a key player in
the advent of the very first entirely asphalted trans-African highway; (iii) the corridor will
fully play its role as a major channel for inter-regional transit and trade between North Africa,
West Africa and Central Africa; (iv) the feasibility studies to be carried out will provide a
strong case for fibre-optic interconnectivity in Niger, Chad and Algeria; and (v) the project
will provide local residents with access to basic infrastructure and facilitate the marketing of
their products, thereby resulting in de facto inclusive growth in the areas concerned.
10. This project complements the Bank’s earlier initiatives in the Sahel, particularly for
the most vulnerable sections of the population. The initiatives have resulted in Bank budget
support to the Government of Niger in the area of food security. In Chad, the Bank is
supporting Government initiatives in Bol region, particularly in the agricultural sector and in
the overall preservation of Lake Chad. More generally, through its involvement in this
project, the Bank is lending its support to the security measures in the Sahel region, adopted
by the international community and by the various RECs.
Knowledge Management
11. Lessons from the project will be recorded and disseminated through: (i) the project
impact monitoring/evaluation reports that will be provided by Niger’s National Institute of
Statistics (INS) and Chad’s National Institute of Statistics, Economic and Demographic
Studies (INSEED); (ii) assessment by beneficiaries of the socioeconomic impact of the
project post-implementation; and (iii) the activities of the Trans-Sahara Highway Liaison
Committee (CLRT).
vii
Results-Based Logical Framework
Project Name: Trans-Sahara Multinational Highway Project (PMRTS)
Project Goal: Improve the level of overall service on the TSH and the living conditions of residents of the project impact area.
RESULTS CHAIN PERFORMANCE INDICATORS
MEANS OF
VERIFICATION
RISKS/
MITIGATION MEASURES Indicator
(including CSIs) Baseline Situation Target
I
M
P
A
C
T
Contribute to the development of trade and regional integration
between AMU, ECOWAS and
ECCAS
Customs value of goods crossing the land borders
In 2013: Algeria/Niger: CFAF 5
billion
Niger/Chad: CFAF 2 billion
In 2018: Algeria/Niger: CFAF 26 billion
(reflecting an increase of 420%)
Niger/Chad CFAF14 billion (reflecting an increase of 600%)
Source: National Transport Directorates, INS, INSEED,
Customs
O
U
T
C
O
M
E
S
Outcome 1: Overall service level improved on the TSH
Total traffic at the land borders between Algeria, Niger and Chad
In 2013: Algeria/Niger:62
vehicles/day
Niger/Chad: 18 vehicles/day
In 2018: Algeria/Niger: 116 vehicles/day
(reflecting an increase of 87%)
Niger/Chad: 76 vehicles/day (reflecting an increase of 375%)
Risks
(i) Persistence of insecurity in the PIA, especially
in Northern Niger;
(ii) Lack of resources for the timely removal of sand
dunes.
Mitigation Measures
(i) In Algeria and Chad, the security risk is minimal
and relatively contained. In Niger, the
Government has already mobilized military and gendarmerie units in the PIA, and that has
enhanced security in the area and drastically
reduced vandalism and crime. It is envisaged that approximately 120 additional troops will be
mobilized to secure the PIA during the project
construction phase. Thus, UA 1.3 million has been raised to meet security costs. The EU is
also funding the construction of gendarmerie
barracks in the region;
(ii) In Niger and Chad, the Directorates General for
Road Maintenance (DGER) will set up
permanent mobile teams tasked with clearing
sand dunes, as has been done in Algeria with
satisfactory outcomes. It is envisaged that the mobile teams will be provided with sand-
clearing machinery, depending on budget
availability at the end of the works.
Travel time of a heavy duty (HD)
truck on the developed sections
In 2013:
Assamakka/Arlit: 2 days
Niger border/Ngouri: 5 days
In 2018:
Assamakka/Arlit: 3.5 hours (down by 93%)
Niger border/Ndjamena: 5.5 hours
(down by 95%)
Average vehicle operating cost
(VOC) for heavy duty trucks on the developed sections
In 2013:
Niger: CFAF 945/km
Chad: CFAF 1.708/km
In 2018:
Niger: CFAF 494/km (down by 48%)
Chad: CFAF 1.326/km
(down by 22%)
Time for the conveyance of goods from Southern European ports to
the cities of Northern Niger (Arlit
Assamakka, Agadez)
In 2013: 40 days
In 2018: 18 days (down by 55%)
Length of daily uptime for facilities for crossing the River
Niger at Farié
In 2013: 12 hours, or 50% availability
In 2018: 24 hours, or permanent availability (100%)
Outcome 2: Improved mobility
and living conditions of PIA residents
Volume of cereal production of
women’s cooperatives
In 2013: 350,000 tonnes
In 2018: 385.000 tonnes, or an
increase of 10%
Source: INS, INSEED
Rural access index In 2013: 5% In 2018: 20%
Jobs created during the construction
In 2013: 0
Chad: 0
Niger: 0 Algeria: 0
In 2018: 75,000 man/days (20% by women)
Chad: 40,000 man/days
Niger: 25,000 man/days Algeria: 10,000 man/days
viii
OU
TP
UT
S
Outcome 1: TSH sections
developed and asphalted in the
three countries
TSH asphalting rate in the three
countries
In 2013: 84.5%
(consolidated)
Algeria: 99.6% (2,350 km)
Niger: 82.8% (1,357 km)
Chad: 26.7% (151 km)
In 2018: 100%
Algeria: 2,360 km Niger: 1,638 km
Chad: 566 km
Source: DGR in Algeria and
in Chad and DGGT in Niger
Risks
(i) Significant escalation of construction costs;
(ii) Failure to provide in a timely manner the
national counterpart funds needed for the works;
(iii) Lack of resources for financing the
maintenance of the structures built.
Mitigation Measures
(i) Estimates based on current unit market prices and detailed engineering studies, with relevant
technical solutions;
(ii) Reduction of Niger's counterpart funding to a
token level (4.6% of the cost of components
in the country). In Chad, the Government has always honoured its commitments and
remains the major donor for on-going road
projects;
(iii) Recent increases in road maintenance resource
allocations: (i) from CFAF 8 billion in 2011 to CFAF 18 billion in 2013 in Chad. The cost of
maintaining the structures built amount to
CFAF 370 million/year, or 2% of the current FER budget; and (ii) from CFAF 8.3 billion in
2012 to CFAF 10 billion in 2013 in Niger.
The cost of maintaining the structures built amount to CFAF 268 million/year, or 2.7% of
CAFER's budget.
Outcome 2: Cross-border
transport and transit facilitation structures commissioned
Number of juxtaposed
checkpoints (JCP) built, equipped and commissioned at the
Algeria/Niger and Niger/Chad
borders
In 2013: 0
In 2018: 2 stations
Algeria/Niger border: 1 JCP
Niger/Chad border: 1 JCP
Source: Customs
Output 3: Related structures
constructed and commissioned
Major related works:
1. Number of school infrastructure
rehabilitated
2. Number of water points
constructed for market gardening
purposes
3. Number of health infrastructure
rehabilitated
4. Length of rural roads
rehabilitated for women’s cooperatives
5. Markets built
6. Cattle loading and unloading
platforms built and commissioned
In 2013:
1. Number = 0
2. Number = 0
3. Number = 0
4. Length = 0 km
5. Number = 0
6. Number = 0
In 2018:
1. 3 schools in Chad and 2 in
Niger
2. 20 water points in Chad and 4 in
Niger
3. 3 health outposts in Chad and 1
in Niger
4. 100 km in Chad
5. 1 market at Farié
6. 15 in Chad and 2 in Niger
Source: DGR in Chad and
DGGT in Niger
Output 4: Crossing structure
commissioned on the River
Niger at Farié
Bridge built on the River Niger at
Farié
In 2013: 0 In 2018: One 543 metre-long
bridge with 3 km of access roads
Source: DGGT in Niger
COMPONENTS RESOURCES (UA MILLION)
1. Road works and environmental measures
2. Related developments and support for securing the area
3. Actions and measures to facilitate transport and transit 4. Institution building to the transport sector
5. Project management
6. Release of the right-of-way
1. Road works: 302.88
2. Related works: 7.72
3.Transport facilitation actions and measures: 13.87 4. Institution building and studies: 3.61
5. Project management: 2.29
6. Release of right-of-way: 0.53 Contingencies: 50.50
TOTAL RESOURCES: 381.40
ix
Implementation Schedule
2019
Qtr 1 Qtr 2 Qtr 3 Qtr 4 Qtr 1 Qtr 2 Qtr 3 Qtr 4 Qtr 1 Qtr 2 Qtr 3 Qtr 4 Qtr 1 Qtr 2 Qtr 3 Qtr 4 Qtr 1 Qtr 2 Qtr 3 Qtr 4 Qtr 1 Qtr 2 Qtr 3 Qtr 4 Qtr 1 Qtr 2
1 GENERAL ACTIVITIES 2 Project appraisal by AfDB and BDEAC
3 Financing approval by the AfDB
4 Signing of financing agreements
5 Effectiveness of loan agreements
6 NIGER COMPONENTS
7
Road Works and Related Developments ( 225
km)
8
Award of contracts for the monitoring of road
works and related developments
9 Road works and related developments
10 Farié Bridge (543 m) and Access Roads (3 km)
11
Award of contracts for the monitoring of bridge
construction works and related developments at
Farié
12
Works on the Farié Bridge and related
developments
13 Institutional Support and Miscellaneous Studies
14
Technical Assistance for the establishment of a
management policy for the corridors
15
Support for the modernisation of the Transport
Data Bank
16 Formulation of the National Road Safety Strategy
17
Analysis of the logistics chain linking Algiers,
Niamey and Ndjamena
18 Accounts Audit (2014-2018 Fiscal Years)
19
Procurement of Goods (vehicles, office
furnishings and IT equipment)
20 CHAD COMPONENTS
21
Road Works, PCJ Chad/Niger and Related Works
(330 Km)
22 Chad/Niger bilateral discussions on the PCJ
23
Award of contracts for monitoring, road works
and related developments
24 Works implemenation
25 Accounts Audit (2014-2018 Fiscal Years)
26 Institutional Support (Miscellaneous Studies)
27 Feasibility study on lake transport
28 Strengthening of the BNF capacity
29
Procurement of Goods (vehicles, office
furnishings and IT equipment)
30 ALGERIA COMPONENTS
31 Road Works (10 Km)
32 Implementation studies
33 Award of monitoring and works contracts
34 Implementation of road works
35 Algeria/Niger Juxtaposed Checkpoint
36 Algeria/Niger bilateral discussions
37 Implementation studies
38 Award of monitoring and works contracts
39 Works implementation
40 CLOSE OF PROJECT
Task External milestones Manual task End only
Splitting External milestones Duration only Maturity
Milestone Inactive task Manual summary report Progress
Summary Inactive milestone Summary of manual tasks
Project summary Summary of inactive task and milestones Duration only
2017 2018
Implementation Schedule
No. Task Name
2013 2014 2015 2016
REPORT AND RECOMMENDATIONS OF MANAGEMENT CONCERNING LOANS AND GRANTS
TO NIGER AND CHAD FOR FINANCING THE ALGERIA/NIGER/CHAD MULTINATIONAL
TRANS-SAHARA HIGHWAY (TSH) PROJECT
Management hereby submits this report and recommendation on the proposed: (i) ADF loans
amounting to UA 20.90 million for Chad and UA 58.98 million for Niger, (ii) ADF grants
amounting to UA 20.40 million for Chad and UA 20.09 million for Niger for financing the
Algeria/Niger/Chad Multinational Trans-Sahara Highway Project.
1 STRATEGIC THRUST AND RATIONALE
1.1 Project Linkages with Country and Regional Strategies and Objectives
The TSH is part of PIDA's priority projects. Endorsed at the January 2012 meeting of African
Union Heads of State and Government, PIDA’s Priority Action Plan (PIDA-PAP) aims to work
towards an integrated continent where the infrastructure and transport services allow the free
movement of goods and people, firstly by improving the connectedness of African capitals and
major centres with modern paved roads and modern rail systems and, secondly, by meeting the
demand for African regional transport infrastructure at the lowest economic cost, with priority
given to landlocked countries. The TSH is also part of the transport sector policies and vision of
ECOWAS, ECCAS, WAEMU and CEMAC.
The Trans-Sahara Highway (TSH) is consistent with Chad’s 2013-2015 National Development
Plan (NDP), which lists transport sector investment, including links with neighbouring countries,
among its main priorities. It is also in line with the 2011-2020 National Transport Strategy (SNT),
whose primary strategic objective is to accelerate economic growth and improve competitiveness
by expanding the network of roads linking the country to the outside world. In Niger, the project is
consistent with the 2012-2015 Economic and Social Development Plan (PDES), the fourth of
whose strategic thrusts is to promote a competitive and diversified economy conducive to
accelerated and inclusive growth, including the development of transport and communication
infrastructure. In Algeria, the TSH is an integrated project encompassing road infrastructure, the
laying of optical fibre cables, the South/North Gas Pipeline and the creation of two new cities in the
south of the country. Thus, TSH is included in the 2010-2025 National Transport Development
Plan (PNDT). To this end, the Second Five-Year Plan (2010-2015) envisages to widen the northern
section of the TSH over a distance of 1,013 km.
1.2 Rationale for Bank Involvement
Bank involvement is justified by the fact that: (i) the project is consistent with the Bank’s Long-
Term Strategy (LTS) for the 2013-2022 period, Pillar 2 of which aims, among others, to provide
affordable access to reliable electricity and transport infrastructure, as part of inclusive growth;
(ii) the TSH is one of the major trans-African corridors promoted by the African Union
Commission as the backbone of the continent's development; and (iii) it plays a leading role in the
implementation of NEPAD activities and has many years of experience in regional project
implementation. The project is also consistent with the Bank’s Strategy Paper for Chad (CSP
2010-2014), whose Thrust 2 (Pillar 2) is “strengthening the road network in order to open up
farming areas and provide a link between Chad and other countries in the sub-region, and
thereby enhance regional integration.” The project is also consistent with Pillar 1 of the 2013-
2017 Country Strategy Paper for Niger, whose goal is to develop basic infrastructure required for
resilience to food insecurity. Finally, the project is consistent with the 2013-2015 Dialogue Note
for Algeria, which aims, under its Pillar 2, to support the diversification of the economy.
2
The project is also justified by the fact that it is in line with the Bank’s Regional Integration
Strategy Paper for West Africa (RISP 2011-2015), whose first pillar is “connection of regional
markets,” given that the integration of transport, energy and telecommunications infrastructure
services is an important complement to policies aimed at integrating markets, goods and factors of
production. Lastly, this project is justified because it fits in with RISP 2011-2015 for Central
Africa, whose first pillar is “development of regional infrastructure.” The project is backed by a
letter of support from WAEMU and joint requests by the governments of Chad and Niger, on the
one hand, and the governments of Algeria and Niger, on the other.
1.3 Aid Coordination
In Chad, donor intervention will be coordinated by the Technical and Financial Partners Committee
(TFPC), currently chaired by the Bank. This Committee brings together all partners involved in
Chad – be it in the area of technical assistance or in investment financing - and works closely with
the Directorate General for International Cooperation in the Ministry of Planning, Economy and
International Cooperation. The Committee includes the Bank, the European Union (EU), the World
Bank (WB), BDEAC, agencies of the United Nations system, Chinese Cooperation and Arab Funds
(IDB, BADEA, SFD, KFAED and OFID). In the transport sector, a thematic group was set up; it
meets quarterly, under EU chair. For this operation, key donors in the sector are: the Bank, Arab
Funds, the EU, the WB and BDEAC. The various partners maintain excellent relations and joint
actions are often initiated. Despite the involvement of these technical and financial partners (TFPs)
in the transport sector, the primary donor, however, continues to be the State which finances more
than half of the projects out of own resources.
In Niger, development assistance is mainly coordinated by the Ministry of Planning, Territorial
Planning and Community Development (MPATDC), acting through the Directorate General for
Planning, where sector projects and programmes are concerned. However, the Directorate’s efforts
are hampered by the lack of qualified human resources and the unavailability of material resources,
including programming and monitoring/evaluation tools. Donors have come together and formed a
TFPC, principally comprising the World Bank, the EU and AFD – all with resident missions in the
country. In the transport sector, a thematic group is not yet available due to the insignificant number
of donor representations in the country. However, many international and regional partners are
involved in the sector. Prominent among these are Chinese Cooperation, the ECOWAS Bank for
Investment and Development (EBID), the West African Development Bank (BOAD/WADB),
AfDB, the EU, Arab Funds (BADEA, IDB, KFAED and OFID), the World Bank and Algerian
Cooperation. AREVA, a mining sector private operator, is also involved in transport infrastructure
financing.
From 2005, Algeria decided to no longer resort to foreign debt for its investment financing. This
situation notwithstanding, a number of donors have continued their cooperation with the country,
notably AfDB, AFD, the EU and the World Bank. The cooperation mainly involves dialogue with
the country on capacity building and technical assistance. Currently, there is no formal framework
for cooperation between donors, and the Government entirely finances all transport sector projects.
However, discussions are underway to explore the possibilities of cooperation with some donors in
transport infrastructure financing. Therefore, the TSH operation could offer some opportunities for
future cooperation with the country.
3
2 PROJECT DESCRIPTION
2.1 Project Objectives and Components
Objectives and Rationale for Key Components
The project essentially concerns the construction and asphalting of the road sections forming the
missing links of the main axis and the Chadian branch of the TSH, over a total distance of 565 km,
the construction of a 543 meter-long bridge on the River Niger at Farié, with 3 km of access roads,
and the construction of infrastructure to ease transport and transit at the Algeria/Niger and
Niger/Chad borders.
Particularly with regard to the Farié Bridge, Farié is a Niger village situated on WAEMU
Community Corridor CU14 linking Ouagadougou and Dori (Burkina Faso) to Tera, Farié and
Niamey (Niger). The Ouagadougou-Dori-Téra-Farié-Niamey corridor has been constructed and
asphalted, and facilitation measures introduced for its Dori-Tera section, with Bank financing.
This project was completed in June 2012 and the roads are in use. However, in the absence of a
bridge on the River Niger at Farié, the river is crossed by means of a ferry boat which operates 12
hours a day (from 6 a.m. to 8 p.m., with a 2-hour break at noon). Acquired in 1994 and managed
by Niger’s Transport Users Council (CNUT), this ferry has a limited capacity as it cannot carry
several heavy-duty trucks at a time. This results in extremely long waiting time for heavy-duty
trucks. Many of such trucks are thus compelled to use a 130 km-long bypass, which adversely
impacts travel and transport overheads. Therefore, Farié Bridge is a strategic structure, easily
connecting the TSH to the ECOWAS road network. Its construction will boost the socio-
economic impacts of the Dori-Tera project and enable Burkina Faso to access Mediterranean
ports from the TSH. Lastly, public consultations found that construction of the Farié Bridge ranks
top among the priorities of local residents. In fact, 87.5% of the region’s inhabitants consider this
structure their highest priority, compared with other development needs. This reflects the urgent
need to substitute the current ferry service with a bridge enabling the free-flow of traffic and
offering a permanent and safe means of crossing the river at Farié.
The project’s sector goal is to contribute to the development of trade by road and regional
integration between the AMU, ECOWAS and ECCAS, in general, and Algeria, Niger and Chad, in
particular. The project's specific objective is to improve the TSH's overall level of service and the
living conditions of the inhabitants of the project impact area. To achieve this objective, the
activities to be carried out have been grouped into the six components summarized in the table
below.
4
Table 2.1
Project Components No. Name of Components Cost
(in UA million)
Description of Component
A
ROAD WORKS
302.88
A.1 - Algeria: (i) Construction and asphalting of 10 km of road
from the Guezamm customs post to the border with Niger; (ii)
Works monitoring and supervision.
A.2. - Niger: (i) Construction and asphalting of 225 km of road
between Arlit and Assamakka on the Algerian border, including
the 2 km slip road leading to Arlit, rest and refreshment areas for
users, allowances for the laying of optical fibre cables,
environmental measures (stabilization of dunes, tree planting,
etc.); (ii) support for security in the region; (iii) construction of a
543 metre-long bridge across the River Niger at Farié with 3 km
access roads; (iv) monitoring and supervision of road works; (v)
monitoring and supervision of bridge construction works; (vi)
raising of public awareness of HIV/AIDS and other pandemics,
environmental protection as well as road safety.
A.3 - Chad: (i) Construction and asphalting of 330 km of road
between Ngouri and Daboua on the Niger border, including the
slip roads serving surrounding cities (Bol, Baga-Sola and Liwa),
rest and refreshment areas for road users and allowances for the
laying of optical fibre cables; (ii) monitoring and supervision of
road works; (iii) raising of public awareness about road safety,
HIV/AIDS and the environment.
B RELATED
DEVELOPMENTS
7.72 B.1 - Niger: (i) Construction of docks for the loading and
unloading of livestock; (ii) drilling of four boreholes along the
main axis; (iii) construction of one market, one health centre, two
wells and rehabilitation of two schools at Farié; and (iv)
monitoring and supervision of related works.
B.2 - Chad: (i) Dune stabilization and drilling of boreholes; (ii)
rehabilitation of 100 km of rural roads; (iii) rehabilitation of three
schools; (iv) construction of docks for the loading and unloading
of livestock; (v) support towards the security of the area; and (vi)
monitoring and supervision of related works.
C ACTIONS AND
MEASURES TO
FACILITATE
TRANSPORT AND
TRANSIT
13.87 C.1 - Algeria/Niger: (i) Construction and equipment of the
juxtaposed checkpoint (JCP), including a weighing station; (ii)
monitoring and supervision of the JCP construction works.
C.2 - Niger/Chad: (i) Construction and equipment of the
juxtaposed checkpoint (JCP), including a weighing station; (ii)
monitoring and supervision of the JCP construction works.
D INSTITUTION
BUILDING AND
STUDIES
3.61 D.1 - Niger: (i) Technical assistance for the establishment of a
management policy for access corridors and the review of
bilateral road transport agreements; (ii) support for the
modernization of the Transport Data Bank (BDT); (iii)
development of the National Road Safety Strategy (SNSR); (iv)
analysis of the performance of the logistics chain linking the
Algiers port, Niamey and N'Djamena, and development of an
action plan; (v) feasibility study on the Trans-Sahara Backbone
Project (optical fibre).
D.2. - Chad: (i) Capacity building for the National Freight
Authority (BNF) in cargo data collection and processing; (ii)
feasibility study on lake transport and creation of a direct land
link with Nigeria.
E PROJECT
MANAGEMENT
2.29 E.1. - Niger/Chad: (i) Monitoring/evaluation of the project’s
socio-economic impact; (ii) support for project management units
and the Joint Technical Committee (JTC) in Niger and Chad; (iii)
financial and accounts audit; (iv) project technical audit; and (v)
road safety audit.
F CLEARING OF
THE RIGHT-OF-
WAY
0.53 F.1. - Niger: Niger: Compensation of project-affected persons in
the Farié Bridge area.
5
ITC Component of the Trans-Sahara Highway (fibre optics)
The TSH is an integrated project encompassing road development and the laying of optical fibre
cables along the project route. For reasons of availability of technical studies, the two components
were split into two separate but complementary projects. In this phase, feasibility studies were
envisaged on the laying of optical fibre cables over approximately 2,400 km, 600 km of which will
be in Chad and 1,800 in Niger, for an estimated cost of UA 0.61 million. Plans have also been made
to provide facilities under the roadway for the passage of future networks. Once the technical
studies are completed, the works will be implemented as part of the Trans-Sahara Backbone (DTS)
project appraised by OITC.3. In this regard, the Algerian Government is committed to speeding up
the finalization of the feasibility studies on the implementation of the Tamanrasset-Assamakka link,
given that resources for financing the works on Algerian territory have been available for four years
now. The Trans-Sahara Backbone also provides an interconnection between Niger and Nigeria
through the Zinder-Kano link, since like Algeria, Nigeria is financing the Kano-Niger border
section out of own resources.
Transport and Transit Facilitation on the Corridor
The major specificity of this project is that it involves three different economic areas, with disparate
customs practices. In fact, Chad and Niger are members of CEMAC and WAEMU, respectively.
Therefore, harmonizing the customs procedures of both countries with those of a country outside
their respective economic zones will require the prior consent of their Regional Economic
Communities (RECs) and member countries. Discussions to that end are long drawn and very often
lead to political decisions at the level of Heads of State and Government. Since these delays are
incompatible with a project implementation schedule, it seems impossible to harmonize the
customs transit systems of the three countries within the framework of this road project. Therefore,
transport and transit facilitation on the TSH will be implemented in several stages. Only physical
infrastructure is planned for this phase, with consideration of systems harmonization being deferred
until the completion of the study to be conducted by the CLRT with BADEA funding. In the
meantime, the operation of the planned juxtaposed checkpoint (JCP) will be discussed bilaterally
between countries, within their respective joint committees, with possible CLRT and REC
facilitation. In this context, a CLRT/Niger/Algeria joint mission visited the border area from 10 to
14 September 2013, to inquire about the current situation and identify potential JCP sites.
With regard to anomalous practices, the interdepartmental order of 27 February 2013 defines, in
Niger, the types of traffic control, checkpoints and redress mechanisms for minimizing abuses on
corridors. In Chad, the only checkpoint on the TSH is located on the border with Niger. Lastly, the
project provides for analysis of the performance of the logistic chain linking Algiers Port, Niamey
and N'Djamena. The outcomes will be used as a basis for proposing decisions to be taken at the
political level to facilitate transport and transit at the borders.
2.2 Technical Solutions Adopted and Alternatives Explored
In Algeria, the technical solution adopted provides for a 10 metre-wide platform and a two-lane
carriageway, each lane 3.5 metres wide, and a 1.5 metre-shoulder on either side. The carriageway
comprises a 5 cm-thick bituminous concrete (BC) surface course, a base course and a sub-base
course of granitic sand, each with a thickness of 20 cm.
In Chad, technical studies financed by the Government were completed in February 2013. The
proposed cross-section consists of: (i) a 10 metre-wide platform and a two-lane carriageway, each
lane 3.5 metres wide in unpopulated areas; and (ii) a 19 to 21 metre-wide platform with a two-lane
carriageway, each lane 3.5 metres wide - separated by a median - with two 1.5 metre-wide
shoulders and two side drainage ways, in built-up areas. The carriageway structure consists of a 5
cm-thick bituminous concrete (BC) surface course, anti-crack geotextile, a 20 cm-thick concrete
base course and a 20 cm-thick sub-base course of cement-treated loamy soil.
6
In Niger, technical studies were updated in May 2013 with government funding. The selected
cross-section provides for a: (i) a 10 metre-wide platform and a two-lane carriageway, each lane 3.5
metres wide, in unpopulated areas; and (ii) a 19 to 21 metre-wide platform, comprising a two-lane
carriageway, each lane 3.5 metres wide - separated by a median - with two 1.5 metre-wide
shoulders and two side drainage ways, in built-up areas. The carriageway structure comprises a 30
cm-thick forming layer, a base course and a sub-base course of gravel or sand aggregate, each 20
cm thick, and a double-coated wearing course.
Concerning the Farié Bridge, the technical studies were conducted in January 2013 with WAEMU
funding. The projected cross-section is a 543 metre-long and 11 metre-wide deck with two lanes,
each 3.5 m wide, a 0.25 metre gutter-shaped strip and a 2 metre-wide sidewalk on each side. The
infrastructure is a deep foundation composed of eight piles, each 35 metres long, on average. The
superstructure consists of a viaduct-type deck with fourteen 43.8 metre-long free span and pre-
stressed beams (VIPP). The support option is the conventional type with circular drums and the
vertical clearance is sufficient to allow navigation below the future structure. Technical solutions
considered and reasons for rejection are summarized in the table below.
Table 2.2
Alternative Solutions Explored and Reasons for Rejection Alternative Solution Brief Description Reason for Rejection
Chad - Option 1: Sub-base and base
courses of cement-
enhanced gravel, two-
layer surfacing, and
bituminous concrete
(BC) five years later
A 10 metre-wide platform, comprising a two-
lane carriageway - each lane 3.5 metres wide -
and a 1.5 metre-wide shoulder on each side,
with a two-layer surfacing on which
bituminous concrete (BC) will be laid five
years later, when the base course will have
stabilized
State budget annual programming
problems.
Chad - Option 2: Sub-
base course and base
course of crushed granite
and bituminous concrete
surfacing.
The Sub-base and base courses are enhanced
with crushed granite and bituminous concrete
surfacing
High cost due to the scarcity of granite
materials, given that granite deposits
are located 500 km from the works
site.
Niger – Road Option:
Bituminous concrete
(BC) surfacing
Carriageway of unsorted sand or gravel
aggregate with bituminous concrete surfacing
High cost compared to the resources
provided by the Government.
Niger – Bridge
Options:
(i) Bridge with “PSI-OM” type double
concrete steel composite beams under
the deck; (ii) Pre-stressed concrete box
bridge, cantilevered out in successive
sections of constant height; (iii) Pre-
stressed concrete box bridge,
cantilevered out in successive sections
of variable heights.
Higher costs and movement of a
greater number of people.
2.3 Project Type
This project is an investment operation. Donor interventions in transport infrastructure in Chad are
channelled through this type of operation.
7
2.4 Estimated Project Cost and Financing Arrangements
Project Costs by Component
The total project cost, net of taxes and customs duties, stands at UA 381.40 million, equivalent to
CFAF 288.80 billion at May 2013 exchange rate (UA 1 = CFAF 757.21708). It includes a
provision for physical contingencies and price escalation estimated respectively at 10% and 5% of
the base cost.
Table 2.3
Cost Estimates by Components
PROJECT COMPONENTS UA Million CFAF Billion %
F.E. F.E. L.C. Total F.E. L.C Total
A. ROAD WORKS 238.01 64.87 302.88 180.23 49.12 229.35 79%
B. RELATED DEVELOPMENTS 2.89 4.84 7.72 2.18 3.66 5.85 37%
C. TRANSPORT FACILITATION 5.55 8.32 13.87 4.20 6.30 10.50 40%
D. INSTITUTION BUILDING 2.61 1.01 3.61 1.97 0.76 2.73 72%
E. PROJECT MANAGEMENT AND
MONITORING
2.29 2.29 1.73 1.73
F. CLEARING OF THE RIGHT-OF-WAY 0.53 0.53 0.40 0.40
BASE COST 249.05 81.85 330.90 188.59 61.97 250.56 75%
Physical Contingencies 24.64 7.74 32.39 18.66 5.86 24.53 76%
Financial Contingencies 13.68 4.42 18.11 10.36 3.35 13.71 76%
TOTAL COST 287.38 94.01 381.40 217.61 71.19 288.80 75%
Financing Arrangements
In Chad, besides the Bank, other donors are: BDEAC OFID, IDB, BADEA, SFD and KFAED.
BDEAC approved its funding in July 2013, while OFID, BADEA and KFAED have already signed
their loan agreements. SFD and IDB funding decisions are expected in 2014. The national
counterpart funds amount to UA 49.24 million, or 19.49% of the total cost of the project
components in the country. The Bank’s recent transport project financing experience in Chad
shows that raising the national counterpart funds poses no particular problem.
In Niger, all donors (IDB, BADEA and OFID and KFAED) have already signed their loan
agreements, all of which have been ratified. Available resources total USD 50 million, or UA 33.13
million. Given that Niger is eligible for 100% Bank financing for the project (see rationale in
Appendix A-6), the national counterpart funding was limited to UA 3.83 million, or 3.3% of the
total cost of the components in the country.
In Algeria, the project will be financed entirely by the Government, through the public investment
budget, for an estimated total amount of UA 12.76 million, to be raised in 2014.
Table 2.4
Project Costs by Components and Country
PROJECT COMPONENTS ALGERIA NIGER CHAD
In UA
million
In DZD
million
In UA
million
In CFAF
million
In UA
million
In CFAF
million
A. ROAD WORKS 4.16 496.43 94.90 71,862.22 203.82 154,335.77
B. RELATED DEVELOPMENTS 1.98 1,496.25 5.75 4,352.25
C. TRANSPORT FACILITATION 6.93 827.39 6.93 5,250.00
D. INSTITUTION BUILDING 2.11 1,598.17 1.50 1,136.20
E. PROJECT MANAGEMENT AND
MONITORING
1.34 1,017.30 0.94 713.54
F. CLEARING OF THE-RIGHT-OF-WAY 0.53 399.00
BASE COST 11.09 1,323.82 100.86 76,372.94 218.94 165,787.76
Physical Contingencies 1.11 132.38 9.65 7,309.60 21.63 16,376.30
Financial Contingencies 0.55 66.19 5.53 4,184.13 12.03 9,108.20
TOTAL COST 12.76 1,522.40 116.04 87,866.66 252.60 191,272.26
8
Table 2.5
Sources of Project Financing by Country (UA million)
SOURCES OF FINANCING ALGERIA NIGER CHAD TOTAL
ADF
79.07 41.30 120.37
IDB
9.94 86.63 96.57
BDEAC
33.02 33.02
BADEA
6.63 6.63 13.25
OFID
6.63 7.95 14.58
KFAED
9.94 11.27 21.21
SFD
16.57 16.57
Government of Algeria 12.76
12.76
Government of Chad
49.24 49.24
Government of Niger
3.83
3.83
TOTAL 12.76 116.04 252.60 381.40
Table 2.6
Consolidated Cost by Expenditure Category (UA million) EXPENDITURE CATEGORIES F.E. L.C. TOTAL
A. GOODS 0.40 0.40
A. WORKS 234.63 73.33 307.95
B. SERVICES 14.42 6.76 21.18
C. MISCELLANEOUS 1.35 1.35
BASE COST 249.05 81.85 330.90
Physical Contingencies 24.64 7.74 32.39
Financial Contingencies 13.68 4.42 18.11
TOTAL COST 287.38 94.01 381.40
In Niger, the Bank will be in a parallel co-financing arrangement with all the other donors. In Chad,
it will be in a joint co-financing arrangement with BDEAC and in parallel co-financing with other
donors. The Bank will finance the project to the tune of UA 120.37 million, or 31.56% of the total
project cost, by providing a loan of UA 98 million and a grant of UA 20.09 million to Niger (UA
79,07 million), as well as a loan of UA 20.90 million and a grant of UA 20.40 million to Chad (UA
41.30 million). For the Farié Bridge in Niger, the ADF resources will come exclusively from
Niger’s country allocation (grant and loan), given that the resources of the regional envelop is
devoted entirely to the Arlit-Assamakka road section. The table below shows the allocation of ADF
resources used in BDEAC.
Table 2.7
Allocation of ADF Financing
INSTRUMENTS USED CHAD NIGER TOTAL
In UA In CFAF In UA In CFAF In UA In CFAF
ADF-12 Loan (PBA) 8.36 6,330.33 36.48 27,623.28 44.84 33,953.61
ADF-12 Grant (PBA) 8.16 6,178.89 19.71 14,924.75 27.87 21,103.64
ADF-12 Grant (PBA from cancellation)
0.38 287.74 0.38 287.74
ADF-12 Loan (Regional envelop) 12.54 9,495.50 22.50 17,037.38 35.04 26,532.89
ADF-12 Grant (Regional envelop) 12.24 9,268.34
12.24 9,268.34
TOTAL 41.30 31,273.07 79.07 59,873.15 120.37 91,146.22
2.5 Project Areas and Beneficiaries
This project involves the development of three road sections and a connecting road, through Niger,
between the main road and the Malian branch of the TSH. In each case, the area covers sparsely
populated and predominantly pastoral regions, characterized by sand dunes.
9
In Niger, the extended project area covers the Agadez Region, the second least populated region
after Diffa, with 536,000 inhabitants, or 3.3% of the population of Niger. Arlit is the immediate
project impact area, with 164,000 inhabitants, or 30.5% of the population of Agadez. Given that
nearly ¾ of the population of Arlit lives in the commune, the inhabitants of the project impact
area are concentrated in this commune. The area is dominated by uranium mining and
transhumant pastoralism. Access to water is a major challenge, with boreholes reaching depths of
over 700 metres. The project will also finance the construction of a bridge on the River Niger at
Farié, and the development of two access roads stretching from each bank of the river. The PIA
of this bridge is within the Tillabéri Region, which shares borders with Mali to the North,
Burkina Faso to the West and South-West, and Benin to the South. This region has huge natural
and economic potential, with agricultural and livestock production ranking among the most
significant in the country. Its population is estimated at 438,000 inhabitants and 55,000
households.
The national HIV/AIDS prevalence rate (0.7% in 2011) is among the lowest in the sub-region.
However, there are significant disparities between regions and especially between social groups. In
the Agadez Region, which is located in the project impact area, the prevalence rate stands at 21%
for sex workers, while other categories concerned are the police and migrants (Agadez is a transit
zone for migrants bound for Europe and an outpost where military units have been stationed
because of the unrest in the region). Therefore, HIV/AIDS awareness campaigns should be targeted
at these vulnerable groups (sex workers, migrants and defence forces). It is envisaged that these
campaigns will be carried out in tandem with voluntary testing and road safety awareness activities.
In Chad, the extended area spans four regions: Hadjer Lamis, Barth El Ghazal, Lac and Kanem.
The population of these four regions account for 14% of the total population of Chad. However, it
should be noted that the project road runs through the following cities/urban centres: Massakory,
Ngouri, Bol, Baga-Sola, Liwa, Rig-Rig and Daboua. More than 40 communities are crossed by this
section of the TSH totalling 1,334,000 inhabitants, or 12.1% of the population of Chad. The project
will build on existing initiatives in the PIA funded by various partners, including the Bank.
However, targeted activities will be carried out to raise awareness of HIV/AIDS and other STDs.
There are also plans for road safety awareness campaigns. With regard to environmental protection,
the population, with the help of NGOs, will be involved in dune-stabilization operations along the
main axis.
In Algeria, the project impact area covers Guezzam (7,000 inhabitants), a commune of the
Tamanrasset Wilaya (192,000 inhabitants), in the far-south of the Algerian Sahara, endowed with
abundant natural gas reserves and mining potential (gold, tin, tungsten, etc.).
The project will have a significant positive impact on the activities of PIA residents, in general, and
on those of women and young people, in particular, as it will improve their employability, increase
job opportunities in the public works and civil engineering sector, strengthen commercial activities,
enhance access to socio-economic infrastructure, and reduce travel time and general transportation
costs, as well as improve drinking water access. The most significant expected positive outcomes
are : (i) improvement of transport conditions and access to basic social services, markets and
production zones for the conveyance of products and goods through roads, road networks, rural
roads and structures rehabilitated by the project; (ii) better knowledge of best practices relating to
road safety, reproductive health, micro-business management techniques, environmental safety and
risk of the spread of STI through the awareness campaigns planned; (iii) increase in the income of
young people and women as a result of training and creation of employment opportunities; and (iv)
alleviation of the water-fetching chore.
10
2.6 Participatory Approach to Project Identification, Design and Implementation
During the feasibility studies as well as the preparation and appraisal missions, involvement of all
stakeholders was a concern. While security conditions made it impossible to organize visits to the
entire project impact area, meetings were held with most of the services and structures involved in
the project implementation in Algeria, Niger and Chad. Field trips were organized in Chad and
Niger (Farié Bridge). The various meetings organized helped to validate the objectives, components
and key related activities to be carried out as part of this project. During the appraisal mission, a
meeting of donors was held in Niamey, which helped to finalize the allotment of works contracts
and agree on a final financing plan for Niger. During the project execution phase, the participatory
approach will be used notably during coordination meetings. This approach will also be preferred
when conducting studies envisaged for monitoring/evaluation of the socio-economic impact. At
Farié, surveys have shown that after the bridge, the development of health centres and hospices,
construction of educational and training institutions and drinking water supply are among the
priority needs of the population. The ancillary facilities address these needs.
2.7 Consideration of Bank Group Experience and Lessons Learnt from Project Design
The Bank's active portfolio in Chad has fifteen (15) operations, including three (3) multinational
projects. According to the last portfolio review conducted in July 2013, the percentage of at-risk
projects dropped from 33% at end-2012 to 15.4% at 30 June 2013. The transport sector has only
one project representing 23% of the volume of operations in the country, with a disbursement rate
of 86%. A multinational project was recently closed on schedule and supervision missions have
confirmed the performance of the project underway. The main difficulties are long procurement
delays. The active portfolio in Niger consists of 19 projects representing 11 operations. The main
lessons from the last portfolio review in May 2013 concern the quality at entry of projects,
particularly technical studies, and the importance of timely recruitment of executing agency staff,
preferably prior to financing approval. The transport sector with one project takes up 9.6% of
financing. The difficulties encountered in its implementation mainly concern delays in providing
counterpart funds and in procurement. In Algeria, the Bank currently has four technical assistance
projects in its active portfolio.
The Bank has already financed 66 transport operations in the six TSH countries, including nine
regional operations and 57 national projects, for a total UA 2 billion. In the road sub-sector, these
funds have contributed to the execution of 52 projects for the construction of 10 888 kilometres
of roads. Nine (9) projects directly concerned the TSH for UA 157 million, contributing to the
rehabilitation of 1 668 km of roads.
The project drew on the Bank’s experience in implementing national and multinational
infrastructure projects whose main challenges emanate from: (i) the multiplicity of actors who
usually have low technical and operational capabilities; (ii) weaknesses in procurement,
mobilization of counterpart funds (Niger) and performance monitoring; and (iii) poor
performance of RECs in implementing components related to the JCP works.
To overcome these weaknesses, this project plans to: (i) set up a Joint Technical Committee
(JTC) to coordinate the project at regional level under the CLRT that has already proven its worth
in coordinating operations on the TSH; (ii) provide targeted support to existing project
management units in each country and JTC; (iii) use Advance Contracting; (iv) scale down
Niger’s counterpart contribution; (v) set a works completion deadline that is consistent with the
complexity of the structures; and (vi) construct the JCP exclusively under the aegis of countries
(Algeria and Chad) instead of the RECs.
11
2.8 Key Performance Indicators
The main project achievements include: (i) the length of paved roads between Arlit-Assamakka (in
Niger) and Ngouri-Daboua-Niger border (in Chad); (ii) the length of access roads developed at the
Farié Bridge; (iii) the length of rehabilitated rural roads; (iv) the number of persons made aware of
HIV/AIDS, environmental protection and road safety; (v) the area of stabilized sand dunes; (vi) the
number of rehabilitated socio-economic infrastructure; (vi) the number of boreholes; (vii) Farié
Bridge built; and (viii) the number of juxtaposed checkpoints built and operational.
In terms of expected outcomes, the following key indicators will be measured: (i) total traffic at the
Algeria/Niger and Niger/Chad borders; (ii) vehicle operating costs on the Niger and Chad sections;
(iii ) time spent by a truck on the Niger and Chad sections and at border crossings; (iv) goods
delivery times in the cities of Northern Niger; (v) agricultural output in Bol region in Chad; (vi)
daily uptime for means of crossing the Niger River at Farié; (vii) the TSH asphalting; and (viii) jobs
created (75,000 man/days). Other indicators to be measured include: (a) rural access index; (b)
average household and gender income; (c) job creation rate; (d) price level of agricultural and staple
products; and (e) change of behaviour related to HIV/AIDS, environmental protection and road
safety. Besides these performance and outcome indicators contained in the logical framework,
project implementation performance indicators will also be monitored. Such indicators were
selected in relation to Bank institutional performance indicators and mainly concern: (i) timeframes
for effectiveness and fulfilment of conditions precedent to first disbursement of funds; (ii)
procurement timeframes; (iii) average implementation progress (IP) indicator; and (iv)
disbursement rate. These indicators will be monitored during supervision missions and day-to-day
management of the project and the outcomes disclosed through the implementation status and
results (ISR) reports.
3 PROJECT FEASIBILITY
3.1 Economic and Financial Performance
The economic assessment was performed on the HDM IV model, based on cost/benefit analysis
between the “with and without” project situations, over a period of 20 years and a 12% discount
rate. This assessment yielded economic rates of return (ERR) for sections ranging from 12.1% to
19.8% (with a 15.3% consolidated ERR) and a Net Present Value (NPV) varying from CFAF 0.2
billion to 25.9 billion according to sections (with a consolidated CFAF 43 billion NPV). The details
per section are provided in the table below. By conducting a sensitivity test (increase the project
cost by 10% and reduce benefits by 10%), the average ERR stood at 12.7%. The project is therefore
economically viable for the community.
Table 3.1
Summary of Economic Analysis
Economic Elements
Analysed
Arlit-
Assamakka
(Niger)
Ngouri-Bol
(Chad)
Bol/Baga-
Sola (Chad)
Baga-Sola/Rig-
Rig (Chad)
Rig-Rig/Daboua
(Chad)
Overall
Project
ERR 14.9% 19.8% 17.0% 12.2% 12.1% 15.3%
NPV in CFAF million 7,357 25,895 9 033 571 216 43 072
ERR economic sensitivity
test 12.0% 16.9% 14.3% 10.0% 9.8% 12.7%
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3.2 Environmental and Social Impacts
Environment
Taking into account the nature and volume of work to be undertaken, the Bank has classified the
project under Category 1. Detailed environmental and social impact assessments (ESIA),
accompanied with Environmental and Social Management Plans (ESMP) were developed and
validated by the Chad and Niger ministries responsible for the environment. The summary of the
environmental impact assessment approved by the Bank’s Environmental and Social Safeguards
was posted on 13/08/2013. The construction of the TSH will foster socio-economic development
through the opportunities it offers for the sale of agro-pastoral products, ease of transporting freight,
passenger comfort and medical evacuations.
The implementation of this project will engender negative environmental impacts: (i) potential
health impacts, mainly the risk of spread of HIV/AIDS in urban areas crossed by the project; (ii)
safety impacts related to site management, the organization of the movement of vehicles, road
traffic users and handling of explosives at quarry sites, etc.; (iii) alteration of the landscape and the
living environment by waste and scrap produced at the base camp, soil erosion due to operation of
equipment at quarry sites and borrow areas; (iv) loss of vegetation, cropland and woody vegetation;
and (v) soil pollution by solid and liquid waste from construction sites and quarries and borrow
areas. Since tree density is very low, except in flood zones and built-up areas in these localities,
trees will be avoided as much as possible to minimize the quantities of trees felled (in the first
portion of Chadian section, in the flood and built-up areas). The destruction of these plants will be
limited largely to herbaceous plants and a few spontaneous shrubs without high ecological value.
All these negative impacts are, however, moderate and mitigation measures are provided to limit
their scope. Trees on the right-of-way will be pre-marked with paint before earthworks. Wood
cleared from the road will be used as firewood. However, it is recommended that this activity be
strictly monitored by the local forestry service to prevent abuse. The service will educate people
beforehand on the fact that the activity is short term and unique, and will end with the works.
Moreover, given the limited firewood resources, the afore-mentioned service will educate people on
the use of economic cooking techniques (e.g. improved stoves). However, because wildlife is rare
in the project operation area, it will only be slightly affected.
To mitigate and/or improve the various negative and/or positive impacts of the project, a number of
measures aimed at reducing or eliminating impacts on the various components of the biophysical
(soil, air, water resources, flora and fauna) and human environment (human health and safety, land
and agriculture, income-generating activities, infrastructure, etc.) have been recommended,
including: (i) the interruption of road traffic during the construction period; (ii) recruitment of
casual labour, particularly workers, for worksite purposes; (iii) water abstraction for site purposes
should never jeopardize the water supply of the local population. If necessary, new water supply
sites will be built and placed at the disposal of the residents after the site winds up; (iv) marking of
sites with signs to be visible both day and night, especially in residential sections; (v) spraying of
water on the soil at the crossing of built-up and borrow areas to avoid excessive dust emissions; (vi)
provision of appropriate security measures on the site to protect workers; (vii) development of a
rapid response plan to be implemented in the event of accidents on site, including hazardous waste
spill; (viii) disposal of all solid and liquid waste generated by the site, including packaging and food
waste, at an appropriate landfill. In particular, waste oil will be carefully collected in sealed
containers to be deposited in places where they do not threaten the environment and will in no
event be discharged into side ditches; (ix) use of existing tracts by construction machinery and
vehicles to access the site, and avoidance of close proximity to homes; (x) raising the awareness of
workers and site personnel to the risk of spread of STDs/HIV/AIDS, beginning from the stage of
recruitment of site workers and lasting throughout the construction period; (xi) verification of
hazardous materials stored in appropriate places and rapid response measures in case of accident,
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contained in the terms of reference of the successful company contracted for the works; (xii)
involvement of the security and national defence forces in enforcing road construction safety
arrangements; (xiii) provision of site workers with protective gear that must be worn; (xiv)
establishment of temporary tags and marking signs at road sections with on-going works; and (xv)
establishment by the successful contractor of an occupational health and safety service.
An environmental monitoring programme was prepared per project component; it also aims to
ensure that all commitments and obligations, including environmental mitigation measures, are
applied during construction. The following table shows the cost of the Environmental and Social
Management Plan (ESMP) by work area.
Table 3.2
Table of ESMP Costs (in CFAF) Work Areas Total
Ngouri-Bol-Daboua-Niger border (Chad) 8,775,250,000
Arlit-Assamaka (Niger) 1,771,750,000
Farié Bridge on the River Niger (Niger) 728,000,000
Grand Total 11,275,000,000
In Niger, the road follows the course of a track extending the RN25 from Arlit to Assamakka and In
Guezzam in Algeria. This section is entirely beyond the northern limit of cropland. Since there are
no built-up areas along the road corridor except at its ends (Arlit and Assamakka), the project will
not affect residents in the area. Regarding the Farié Bridge, the planned works will cause the
displacement of 79 people and two community facilities. In Chad, the project road is a west branch
of the Ndjamena/Faya-Largeau highway from Massakory towards Bol and the Niger border. It is an
already existing stabilized earth road, with a well-defined 50 metre-wide regulatory right-of-way,
whose construction will not result in any population displacement.
Climate Change
The impact of climate change may be gauged in terms availability of water resources in boreholes,
drought and wind erosion, resulting in increased dune mobility and road silting, as well as the
survival of trees that will be planted to stabilize the dunes. The project packaging took these aspects
into account. Hence, dune stabilization and water point construction activities have been factored
into the project. Besides, considering that the road runs through isolated and open desert areas, it
should not contribute significantly to the production of greenhouse gas emissions and climate
change.
Gender
Despite efforts by the various Governments concerned, gender disparities persist. Moreover, the
desert conditions prevailing in the project impact area (PIA) further complicate the living
conditions of women, who face serious problems of access to basic social services, especially water
and health care. Sandy tracks and the lack of appropriate means of transport greatly limit their
mobility. In the Arlit area, for example, girls devote almost a whole day to water-fetching. In this
part of Niger, boreholes may be as deep 700 metres and are, in many cases, equipped with human-
powered mechanisms. Therefore, women in this region are understandably overburdened. Both in
Niger and Chad, the main income-generating activities for PIA women and their groups revolve
around market gardening, spirulina and livestock production. In response to the expressed needs,
the project provides for specific actions under related developments designed to impact the lives of
women. These are: (i) drilling of 24 boreholes to meet the drinking water and market gardening
needs; (ii) rehabilitation of socio-economic infrastructure; and (iii) rehabilitation of 100 km of rural
roads. These developments, estimated at UA 5.81 million (or 1.52% of total project cost), will ease
the chore of water fetching and diversify income-generating activities for women.
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Social Impact and Impact on Youth Employment
The success of the project will eventually have a very strong social impact not only on the local
population, but also on all road users in terms of time savings, better access to basic social services
for poor households, better evacuation of agricultural produce and especially easy access to
drinking water, which is a scarce commodity in the PIA. The project will also have a direct impact
in reducing essential commodity prices in the PIA since the improved road conditions will lead to
greater use of the competitive corridor. It will further have an economic impact on neighbouring
villages in terms of enhancement of economic potential, which will help to create jobs and increase
income. Ultimately, the project will have some positive impacts relating to: (i) job creation in the
construction (75,000 man/days with 20% for women) and operation phases as well as subsequent
road maintenance phases; (ii) reduction in travel time; (iii) reduction in accident rates; (iv)
improvement in agricultural production and income; and (v) reduction in commodity prices in the
PIA.
Forced resettlement
The project will result in the displacement of 79 people and two community facilities in Farié. All
persons affected by the works have been identified and compensation measures are provided in the
Summary Resettlement Plan. The payment of compensation by the Government and the
transmission to the Bank of evidence relating thereto shall be a condition precedent to
commencement of construction of the Farié Bridge.
4 IMPLEMENTATION
4.1 Implementation Arrangements
Executing Agencies
At the national level, each country will implement its own components independently. The
ministries responsible for equipment, public works and/or infrastructure, acting through the
Directorate General for Major Works (DGGT in Niger) or Roads (DGR in Chad and Algeria), will
be the executing agencies and project owners.
Within the Chadian Ministry of Infrastructure and Transport (MIT), project monitoring will be
provided by the AfDB/World Bank/EU Joint Unit (CSCP), which has the necessary staff and is
already satisfactorily implementing the on-going Koumra-Sarh Project. The key CSCP staff
assigned to the project comprise a coordinator, three field engineers, an accountant, an
environmental engineer with experience in climate change and a procurement officer. CSCP
operating expenses were included in project costs and will be funded entirely by BDEAC through a
special account to be opened by the Government.
In Niger, the project’s executing agency was established by Order No.
080/ME/SG/SGA/DRH/DAP of 13/09/2013 of the Ministry of Equipment. It comes under the
responsibility of the Directorate General for Major Works (DGGT) and comprises: a coordinator
(civil engineer general), a public works chief engineer, head of the Arlit/Assamakka Road Unit, a
senior structural engineer, head of the Farié Bridge Unit and three technicians (one for each works
package). This body will be supplemented by an administrative and finance officer with thorough
mastery of private accounting, who will be recruited through ADF financing under technical
assistance, an accountant, an environmental engineer with sound experience in climate change, a
procurement officer and support staff. The resources necessary for the proper functioning of the
executing agency will be provided by the ADF (logistics and other equipment), the IDB and the
Government (operating costs). Operating costs will be managed through a special account to be
opened to the satisfaction of the IDB.
15
In Algeria, the DGR is the project’s executing agency. The Algerian Government has provided it
with the necessary resources for the project.
At the multinational level, the CLRT General Secretariat will provide overall project coordination,
in accordance with its statutory duties. This coordination will be ensured through the JTC
consisting of the directors in charge of roads and transport, representatives of the Ministries of
Planning and Economy (Cooperation-Planning) and Finance (Customs), representatives of the
Ministries in charge of Foreign Affairs, Trade, Immigration, project coordinators, directors in
charge of transport and infrastructure from ECOWAS/WAEMU, ECCAS/CEMAC, AMU, as well
as representatives of haulers. The JTC will be established by a decision taken by the CLRT General
Secretariat and sent to donors. Given Algeria’s specificity in the project (neither borrower nor
recipient), it was agreed that the JTC may be established as soon as Chad and Niger officially
release the names of their CLRT members.
The Chair of the JTC will be held by the CLRT, which will convene its meetings. The Committee
will meet at least twice a year, alternately in one of the three countries. For budget management and
agenda issues, one of the annual meetings of the JTC may take place in conjunction with the CLRT
statutory meeting held every April in Algiers, in which the directors general responsible for roads
already participate. The CLRT will play an interface and coordination role between the executing
agencies at the national level and the various RECs. It will ensure the collection and dissemination
of data on TSH performance indicators, dialogue with the three countries for the effective
implementation of transport facilitation measures, and awareness of corridor users and
professionals. The CLRT’s operation will be covered by its allocated budget, while expenses
related to the participation of JTC members in Committee activities have been included in the
operating budget of the executing agencies at the national level in Chad and Niger. In Algeria, the
operation of the executing agency will be covered by the DGR budget while JTC members’
expenses will be borne by their respective government services.
Road Safety and Securing of the Project Area
Road safety is a major issue that could jeopardize the achievement of set objectives. Remedial
measures to be taken include: (i) compliance with norms and standards in the design and
construction phases; (ii) the need for traffic control at all times; and (iii) user awareness.
In Algeria, the lanes are well developed, user awareness is continuing, and vehicle inspection is
mandatory and carried out with state-of-the-art equipment. Resources have also been put in place,
through mobile motorized brigades (regional pools), to restore traffic in the shortest possible time
and evacuate the injured, if need be.
In Chad and Niger, road safety is a real problem, considering the number of accidents on national
roads, the scarcity of awareness and difficulties in evacuating the injured. To enhance road safety
on the sections to be constructed, the project design made provision for: (i) compliance with
technical regulations and standards for road signs and signals, slopes and slope deviations; (ii)
construction of clearance areas for temporary parking of vehicles and drivers' rest (one rest area in
Niger and three in Chad); (iii) public awareness campaigns on road safety involving users and local
populations; and (iv) road safety audit at project start-up and completion. Lastly, the project
includes the development of a national road safety strategy (SNSR) in Niger, with the aim of
making a diagnosis of road safety in the country, proposing measures to address the challenges
encountered and supporting the Niger Road Safety Agency (ANISER) being established.
Although the security risk is real in Algeria and Chad, it is more or less contained by the
Governments. In Niger where the security risk is higher, the army and the gendarmerie are already
deployed across the North where they have sufficient staff. These measures have helped to
drastically reduce the vandalism that once prevailed on the TSH. During construction, additional
16
staff (about 120 men) will be deployed and made available to companies for the security of workers
and equipment. In accordance with the legal provisions in the country, the companies will take over
the running of mobilized units (fuel, canteen, allowances for working in remote locations, etc.)
through the allocation of UA 1.32 million incorporated in the cost of works. This allocation covers
transport and communication logistics (pick-up trucks, walkie-talkie, etc.), accommodation
facilities (tents, beds, etc.) and other costs mentioned above. A contract will be concluded between
the company and the Ministry of Defence for this support. During the operating phase, mobile
teams will be available to ensure the safety of users at all times. These units will be backed up by
the facilities that the European Union will build in the area for the National Gendarmerie.
Arrangements Concerning the Procurement of Goods, Works and Services
Any procurement of goods, works and services financed by the ADF will be done in accordance
with the Bank Rules and Procedures for the Procurement of Goods and Works or Bank Rules and
Procedures for the Use of Consultants, as the case may be, using appropriate Bank bidding
documents.
In Chad, works was divided into four lots: Ngouri/Bowl (lot 1: 99 km), Bol/Baga-Sola (Lot 2: 58
km), Baga-Sola/Rig-Rig (Lot 3: 80 km) and Rig-Rig/Daboua/ Niger border (Lot 4: 93 km). Lot 1
will be financed by the KFAED, SFD, OFID, BADEA and the State, while Lots 2 and 3 will be
financed by the IDB and the State. Lot 4 will be financed by the Bank together with BDEAC and
the State; this lot also includes related developments and the Chad/Niger JCP.
In Niger, the work was divided into three lots: Arlit-PK118 (Lot 1: 120 km), PK118-Assamakka
(Lot 2: 105 km), Farié Bridge (Lot 3). Lot 1, which also includes the 2 km ramp to Arlit, will be
jointly financed by the IDB, BADEA, OFID, KFDEA and the State. The Bank and the Government
will co-finance Lot 2 which also includes related developments, while Lot 3 and related
developments at Farié will be fully financed by the Bank.
As part of the joint financing of Lot 4 works in Chad, BDEAC agreed to follow the Bank's
procurement procedures. Other procurements entirely financed by national counterpart funds and/or
other donors will comply, as appropriate, with the procedures of each country or donor.
The Bank has granted its approval for Chad and Niger to use the Advance Contracting (AC)
procedure method for works, monitoring and supervision. The process is underway for the
recruitment of contractors and monitoring missions.
Disbursement and Audit
The direct payment method will be used for disbursements in respect of Bank-funded consultancy
services, works and goods. This method will be used to pay suppliers and consultants based on
contracts signed between them and the Governments. Disbursements will be done in accordance
with the project expenditure schedule as well as the list of goods and services, and Bank rules and
procedures. A disbursement letter defining all disbursement guidelines will be reviewed and
accepted by both parties during the negotiation of loans and grants.
Project accounts in Chad and Niger will be audited independently. The annual financial statements
and financial monitoring reports prepared by the executing agencies and their respective internal
oversight systems will be audited annually by reliable, competent and independent auditors, based
on criteria satisfactory to the Bank. The terms of reference for auditors will be adopted at the
negotiating meeting with each Government. The external audit will be tailored to the specific
project risks. Each financial audit will cover a fiscal year ending December 31, in accordance with
the rules in force in Niger and Chad. However, the first audit may cover the first 18 months of the
project where the first disbursement was made in the second half of the year of the first
17
disbursement. This same principle will be applicable to the last audit of the project, if the closing
date falls in the first six months of the fiscal year concerned. The audited financial statements for
each financial year will be submitted to the Bank no later than six months after the end of the year
to which they relate. The report will include an opinion report and an internal oversight letter.
Financial Management
In view of the institutional arrangement, the funding method and the implementation procedure
adopted for the TSH, this project is a set of three separate entities from the legal, administrative and
financial standpoint. Indeed, project activities will be carried out by independent executing agencies
specific to each country. Financial management in Niger and Chad will thus be performed by the
Directorate General for Major Works of the Ministry of Equipment (DGGT) and the Project
Coordination and Monitoring Unit (CSCP) of the Ministry of Infrastructure and Transport,
respectively. Under these conditions, the project cannot have a single account. Each entity will
separately oversee the administrative, accounting and financial activities within its area of
responsibility, so it is not necessary to consolidate their accounts. The Bank carried out an appraisal
of the existing financial management systems in Chad and Niger in May 2013 and June 2013,
respectively, using the Bank methodology laid out by ORPF.0, in June 2010, in its kit on the
“Financial Management of Projects Funded by the African Development Bank” The appraisal was
further enriched by the lessons learned from CSCP and DGGT experiences in the implementation
of Bank-funded projects. The objective is to ensure that project resources are effectively and
efficiently used, and solely for their intended purposes.
It is clear from this appraisal that the residual overall fiduciary risk is deemed “substantial” for
Niger and “moderate” for Chad. The proposed mitigation measures should ensure that the financial
management arrangements laid down for the project will be sufficient to provide timely accurate
and reliable information, allow the preservation of project assets and enable the conduct of the
accounts audit within the agreed timeframe. These conditions require the recruitment of qualified
and dedicated financial management staff, adaptation of administrative, accounting and financial
procedures, procurement of appropriate accounting software and effective conduct of internal and
external audit by private firms. Executive summaries of financial management appraisals in both
countries are appended. It is worth noting that the financial management system in Algeria was not
appraised because the Algerian part of the project is self-financed.
4.2 Monitoring/Evaluation
The implementation of all project components will be monitored by the various executing agencies,
depending on the activities under their control. They will produce quarterly and annual monitoring
reports. Supervision missions of line ministries and the Bank will also contribute to the appraisal of
main project achievements and the problems faced by various teams. Annual technical and
financial audit missions will supplement the mechanism to be established to monitor project
progress.
It is worth noting that in addition to implementation monitoring, a specific mechanism will be
established to ensure monitoring/evaluation of the socio-economic impact (SEIS) of this project.
Discussions were held with officials of the National Institute of Statistics (INS) of Niger and the
National Institute of Statistics, Economic and Demographic Studies (INSEED) of Chad in view of
strengthening national capacity in this field. In each of these countries, the institutes are the only
authorities responsible for producing national statistics. They conducted the last census in each
country as well as poverty monitoring studies. In July 2010, the INS (Niger) conducted a study on
the "Impact of Transport Infrastructure on Poverty Reduction and Attainment of the MDGs in
Niger" while INSEED is already in charge of monitoring and evaluating the socio-economic impact
of the Koumra/Sarh Road Project financed by the Bank, a mandate it has completed to the
satisfaction of the Chadian Government and the Bank. Therefore, the two institutes have the
18
expertise and human resources to monitor/evaluate the socio-economic impact of the TSH, based
on agreements to be signed with each government, as follows: (i) INS for the Arlit/Assamakka
section and the Farié Bridge in Niger; and (ii) INSEED for the Ngouri/Bol/Niger border section. In
each case, three studies will be conducted: the establishment of the baseline before the start of
works, the assessment of the socio-economic impact at the end of the project, using substantially
the same methodology, and assessment of the socio-economic impact by the beneficiaries. The
terms of reference, detailed budgets and key impact indicators to be monitored were specified
during project preparation.
4.3 Governance
In Chad, appraisal of the business climate shows that the country had declined on all indicators. The
country ranks last (183rd
out of 183) among the economies rated in the Doing Business overall
rankings for 2012, as against 182nd
out of 183 in 2011. To remedy this situation, the Government in
2010 adopted a charter to improve the business environment, but it is yet to be implemented. In
2011, corruption in the administration was considered the second factor hindering the conduct of
business in Chad. According to The Global Competitiveness Report 2011-2012 report, the country
ranks last globally (142nd
) for irregular payments and bribes. To help the country improve its
governance, the Bank is currently considering funding the Business Climate Improvement and
Economic Diversification Project (PACADET), for UA 4.8 million.
Niger’s economic and financial governance and transparency indicators are still unsatisfactory,
although the trend is improving. Over the period 2010-2011, the appraisal of policies and
institutions, based on the Bank’s CPIA indicators, showed a substantial improvement in economic
management and governance indicators, which exceeded the West African average. This resulted in
an increase in Niger’s ADF-12 country allocation by 14.43% and 4.52% in 2012 and 2013,
respectively. However, structural, social inclusion and equity policy indicators have not progressed.
With respect to transparency and corruption control, the country has evolved positively from an
initial deteriorated situation. According to the Transparency International 2012 report, the
corruption perception index has improved. Niger ranked 113 out of 176 countries in 2012, against
134 in 2011, showing an increase of 21 places. The Mo Ibrahim Foundation African governance
indicators for Niger for 2011 underscore the urgent need to carry out reforms.
4.4 Sustainability
The sustainability of the roads and the bridge will depend on the following factors: (i) the quality of
technical studies; (ii) the quality of work performed; (iii) the operation of the infrastructure; and (iv)
maintenance level and quality.
With regard to technical studies, extensive studies were carried out on the project in 2013 in Chad
and Niger. The technical solutions proposed to this end were deemed satisfactory. General
contractors will be selected by international competitive bidding on the basis of Bank-approved
competitive bidding documents (CBD). The special technical clauses will specify all the technical
specifications of the materials to be used and the criteria for the acceptance of structures. The
companies selected will then establish the works execution dossiers to be submitted for approval to
the monitoring mission. To ensure compliance with quality standards, works monitoring and
supervision will be conducted by consulting engineering firms familiar with similar projects,
selected from among the most qualified, in accordance with Bank rules and procedures. Lastly the
fact that the project will be supervised by the Bank and technical audits performed by independent
consultants will make for better technical monitoring of works and mitigate workmanship risks.
Concerning the operation of infrastructure, especially the roadway, the bridge and their
dependencies, the three countries have asset protection laws and regulations. Since Niger is almost
no longer affected by this phenomenon, in light of the latest control results (less than 5% of trucks
are in violation), only Chad will need to make significant efforts to preserve its road assets.
19
The measures taken by the Government of Chad in connection with road maintenance have helped
to increase the road maintenance fund (FER) budget from CFAF 8 billion in 2011 to CFAF 18
billion in 2013, following the increase in the amount of oil royalties. This resource level should lead
to an acceptable routine maintenance of the classified road network. The estimated additional costs
for the maintenance of the TSH sections amounted to an average CFAF 370 million annually, or
2% of the current FER budget. In Niger, the instruments in force until February 2013 provided for
indexing the road user fee (RUR) to imported petroleum products. In fact, products from the
national refinery (SORAZ) were not included in the CAFER funding mechanism. At the request of
donors, the Government recently enacted new instruments, including petroleum products from the
refinery, in the indexing base of oil royalties. Accordingly, the CAFER annual budget should
increase from CFAF 8.3 billion in 2012 to CFAF 10 billion in 2013, making it possible to cover
classified road network routine maintenance needs. The estimated additional costs for routine
maintenance of the Arlit-Assamakka section amounted to an average CFAF 268 million per year, or
2.7% of the CAFER budget. In Algeria, maintenance of the structuring road network, which
includes the TSH, is incorporated into the annual investment budget of the DGR, which covers all
needs.
4.5 Risk Management
The security situation in the region, particularly in Northern Mali and beyond, is the main risk faced
by the project. This could delay the execution of works on the Arlit Assamakka section and later
hamper trade development on that road. However, the risk is mitigated by the military action taken
by the Government of Niger to secure the northern part of the country, with permanent pre-
positioning of military units in the region. This has helped to drastically reduce acts of vandalism
that once prevailed along the TSH. During construction, approximately 120 additional troops will
be deployed and made available to companies for the security of workers and equipment.
Companies will be responsible for the running of the units mobilized through the allocation (UA
1.32 million) that was incorporated in the cost of works. This allocation covers transport and
communication logistics, housing and operating costs. During the works operation phase, mobile
teams will be set up to ensure the safety of users at all times through regular patrols. These units
will avail themselves of the facilities to be built by the EU in the area for the national gendarmerie.
Lastly, a range of diplomatic initiatives undertaken by the United Nations, the African Union and
ECOWAS are on-going. This should eventually lead to the mitigation of security risk in the Sahel-
Saharan region.
Other relatively minor risks that could jeopardize the outcomes or sound implementation of the
project include:
Increased cost of works compared to the estimated budget: this risk is mitigated by
the availability of detailed implementation studies recently updated in Chad and
Niger, the review of the technical solutions adopted, a realistic cost estimate based
on similar works contracts in progress or completed over the past two years and
the provision for physical and financial contingencies;
Failure of the countries to provide counterpart funds in time: this risk is mitigated
by the fact that the Government of Chad has always honoured its commitments,
while for Niger, the national counterpart funding is only a token amount;
Lack of road maintenance resources: this risk is mitigated by the commitment of
the countries to provide the necessary funding for routine maintenance of the
classified network, amounting to CFAF 18 billion and CFAF 10 billion for Chad
and Niger, respectively;
20
Poor understanding of sand dune movements: this risk is mitigated by the fact that
measures will be taken by the Directorates General for Road Maintenance of Niger
and Chad to dispatch permanent mobile teams responsible for dealing with silting
phenomena.
4.6 Knowledge Building
In order to draw lessons from this project, a monitoring/evaluation mechanism will be set up to
record project outcomes and impacts. This will allow for drawing lessons in terms of both project
implementation performance and level of achievement of expected project outcomes and impacts.
The assessment of the project impact by the beneficiaries will provide details on the population’s
evaluation of the outcomes and the degree to which their expectations from the project have been
met. This knowledge and the lessons will be posted on the OITC Department website, and
disseminated through reports and publications as well as workshops and seminars.
5 LEGAL FRAMEWORK
5.1 Legal Instrument
A loan agreement and a grant protocol agreement will be signed between the Bank and the
Republic of Chad, as well as with the Republic of Niger.
5.2 Conditions Related to Bank Intervention
A. Conditions precedent to the effectiveness of the ADF grants and loans to Niger and
Chad
The effectiveness of the ADF grants is subject to the signing of the related Protocol Agreements
between the Bank and the Governments of Niger and Chad.
The effectiveness of the ADF loans is subject to the fulfilment by the Borrowers of the conditions
specified in Section 12.01 of the General Conditions.
B. Conditions precedent to the first disbursement of the ADF grants and loans
For the Republic of Chad: None.
For the Republic of Niger: Niger shall provide, to the satisfaction of the Fund, evidence of
payment of a total amount of CFAF 143 million into a secure account belonging to the national
counterpart, as its contribution to the operating budget of the Project Executing Agency.
C. Other ADF grant and loan conditions
For the Republic of Chad:
(i) Chad shall provide, to the satisfaction of the Fund, no later than 31 December of each
year, the FER annual budget, which should amount to a minimum of CFAF 18
billion;
For the Republic of Niger: Niger shall provide to the satisfaction of the Fund:
(i) No later than December 31 of each year, the CAFER annual budget, which should
amount to a minimum of CFAF 10 billion;
21
(ii) No later than the beginning of the construction of the Farié Bridge, evidence of
compensation of persons affected by the bridge construction, in accordance with
the Fund's policies and guidelines in this regard, the Environmental and Social
Plan Management Plan (ESMP) and Compensation and Resettlement Plan (CRP).
D. Undertakings
For the Republic of Chad: Chad undertakes, to the satisfaction of the Fund: (i) to implement the
Project and the Environmental and Social Management Plan (ESMP), and ensure the
implementation of same by its contractors in accordance with national legislation, the
recommendations, requirements and procedures laid out in the ESMP, as well as the Fund’s
relevant rules and procedures; and (ii) to provide the Fund with quarterly reports on the ESMP
implementation, including, where appropriate, the weaknesses and the corrective measures taken
or to be taken.
For the Republic of Niger: Niger undertakes, to the satisfaction of the Fund: (i) not to start the
construction of the Farié Bridge without ensuring that the affected persons of the area have been
fully compensated; (ii) to implement the Project, the Environmental and Social Management Plan
(ESMP) and the Compensation and Resettlement Plan (CRP), and ensure the implementation of
same by its contractors in accordance with national legislation, recommendations, requirements
and procedures laid out in the ESMP, the CRP as well as the Fund’s relevant rules and
procedures; and (iii) to submit to the Fund quarterly reports on the ESMP implementation,
including, where appropriate, the weaknesses and the corrective measures taken or to be taken.
5.3 Compliance with Bank Policies
This project complies with all applicable Bank policies.
6 RECOMMENDATION
Management recommends that the Board approve the proposed award of: (i) ADF loans of UA 20.90
million to the Republic of Chad and UA 58.98 million to the Republic of Niger; (ii) ADF grants of
UA 20.40 million to the Republic of Chad and UA 20.09 million to the Republic of Niger for this
project and on the terms and conditions set forth in this report.
APPENDIX I
Comparative Socio-Economic Indicators
Indicators Year Niger Chad Algeria Africa Developing
Countries
Developed
Countries
Basic Indicators
Area ('000 Km²) 2011 1 267 1 284 2 382 30 323 98 458 35 811
Total Population (millions) 2012 16.6 11.8 37.3 1 070.1 5 807.6 1 244.6
Urban Population (% of Total) 2012 17.4 28.7 73 40.8 46.0 75.7
Population Density (per Km²) 2012 12.7 9.0 15.7 34.5 70.0 23.4
GNI per Capita (US $) 2011 360 690 4 450 1 609 3 304 38 657
Labour Force Participation - Total (%) 2012 32.0 37.7 32.1* 37.8 68.7 71.7
Labour Force Participation - Female (%) 2012 31.2 45.2 15 42.5 39.1 43.9
Gender -Related Development Index Value 2007-2011 0.308 0.380 …. 0.502 0.694 0.911
Human Development Index (Rank among 186 countries) 2012 186 184 93 ... ... ...
Population Living Below $ 1.25 a Day (% of Population) 2008-2011 43.6 61.9 N.A 40.0 22.4 ...
Demographic Indicators
Population Growth Rate - Total (%) 2012 3.5 2.6 1. 4 2.3 1.3 0.3
Population Growth Rate - Urban (%) 2012 4.4 4.6 3.1 3,4 2.3 0.7
Population < 15 years (%) 2012 48.9 45.2 27 40.0 28.5 16.6
Population >= 65 years (%) 2012 2.3 2.8 5 3.6 6.0 16.5
Dependency Ratio (%) 2012 104.8 92.6 77.3 52.5 49.3
Sex Ratio (per 100 female) 2012 101.3 99.0 102.4 100.0 103.4 94.7
Female Population 15-49 years (% of total population) 2012 21.6 22.7 28.2* 49.8 53.2 45.5
Life Expectancy at Birth - Total (years) 2012 55.1 49.9 76.4 58.1 67.3 77.9
Life Expectancy at Birth - Female (years) 2012 55.6 51.4 75.7 59.1 69.2 81.2
Crude Birth Rate (per 1,000) 2012 47.9 43.7 24.78 33.3 20.9 11.4
Crude Death Rate (per 1,000) 2012 12.3 15.7 4.41 10.9 7.8 10.1
Infant Mortality Rate (per 1,000) 2012 86.5 124.9 23.1 71.4 46.4 6.0
Child Mortality Rate (per 1,000) 2012 145.1 197.3 26.8 111.3 66.7 7.8
Fertility Rate (per woman) 2012 7.0 5.8 2.87 4.2 2.6 1.7
Maternal Mortality Rate (per 100,000) 2010 590.0 1100.0 97 417.8 230.0 13.7
Women Using Contraception (%) 2012 13.7 6.4 31.6 62.4 71.4
Health & Nutrition Indicators
Physicians (per 100,000 people) 2004-2010 1.9 4.0 120.7 49.2 112.2 276.2
Nurses (per 100,000 people) 2004-2009 13.7 28.0 134.7 187.6 730.7
Births attended by Trained Health Personnel (%) 2006-2010 17.7 22.7 95.2 53.7 65.4 ...
Access to Safe Water (% of Population) 2010 49.0 51.0 83 67.3 86.4 99.5
Access to Health Services (% of Population) 2000 30.0 30.0 95 65.2 80.0 100.0
Access to Sanitation (% of Population) 2010 9.0 13.0 98* 39.8 56.2 99.9
Per cent. of Adults (aged 15-49) Living with HIV/AIDS 2011 0.8 3.0 0.1 4.6 0.9 0.4
Incidence of Tuberculosis (per 100,000) 2011 108.0 400.0 90 234.6 146.0 14.0
Child Immunization Against Tuberculosis (%) 2011 61.0 53.0 N.A 81.6 83.9 95.4
Child Immunization Against Measles (%) 2011 76.0 28.0 95 76.5 83.7 93.0
Underweight Children (% of children under 5 years) 2006-2011 39.9 33.9 N.A 19.8 17.4 1.7
Daily Calorie Supply per Capita 2009 2 489 2 074 3500* 2 481 2 675 3 285
Public Expenditure on Health (as % of GDP) 2010 5.2 1.1 3.9* 5.9 2.9 8.2
Education Indicators
Gross Enrolment Ratio (%)
Primary School - Total 2010-2012 70.8 101.0 109* 101.9 103.1 106.6
Primary School - Female 2010-2012 64.3 86.1 107* 98.4 105.1 102.8
Secondary School - Total 2010-2012 14.4 25.4 102* 42.3 66.3 101.5
Secondary School - Female 2010-2012 11.3 15.4 38.5 65.0 101.4
Primary School Female Teaching Staff (% of Total) 2011 45.2 15.3 43.2 58.6 80.0
Adult literacy Rate - Total (%) 2005-2010 28.7 34.5 72.6 67.0 80.8 98.3
Adult literacy Rate - Male (%) 2005-2010 42.9 45.0 N.A. 75.8 86.4 98.7
Adult literacy Rate - Female (%) 2005-2010 15.1 24.2 N.A. 58.4 75.5 97.9
Percentage of GDP Spent on Education 2008-2011 4.5 2.9 4.8** 5.3 3.9 5.2
Environmental Indicators
Land Use (Arable Land as % of Total Land Area) 2011 11.8 3.4 3.2 7.6 10.7 10.8
Annual Rate of Deforestation (%) 2000-2009 3.7 0.6 N.A 0.6 0.4 -0.2
Annual Rate of Reforestation (%) 2011 0.9 9.2 0.6 23.0 28.7 40.4
Per Capita CO2 Emissions (metric tons) 2009 0.1 0.0 3.2 1.2 3.1 11.4
*=2011; **=2008; N.A. = Not Applicable Source: ADB Statistics Department, from national and international sources.
* Most recent year. Last update: May 2013
APPENDIX II
- 2 -
On-going Bank Portfolio in Chad as at 30/06/2013
No. Project Name Effectiveness
Date
ADF
Commitment
(UA)
Amount
Disbursed (UA)
%
Disbursed
Closing
Date
Agricultural Sector
1
Natural Resource Management and Development Project (PGRN) LOAN 16/02/2006 4 270 000 3 086 023.30 72.27 31/03/2014
Natural Resource Management and Development Project (PGRN) GRANT 19/05/2005 2 000 000 1 463 519.91 73.18 31/03/2014
Natural Resource Management and Development Project (PGRN) additional
LOAN 31/01/2011 9 570 000 0.00 0.00
30/10/2014
2 Lake Chad Basin Sustainable Development Programme / MULTINATIONAL
GRANT 19/12/2008 30 000 000 5 757 936.25 19.19 31/12/2015
3 Cotton Sector Support Project /MULTINATIONAL GRANT 08/02/2007 5 000 000 1 820 848.92 36.42 31/12/2013
4 Rural Infrastructure Support Project LOAN 07/06/2011 5 200 000 180 959.67 3.48 31/12/2016
Rural Infrastructure Support Project GRANT 07/06/2011 5 200 000 639 662.16 12.30 31/12/2016
5 Fisheries Development Project (PRODEPECHE) GRANT 23/11/2005 10 000 000 9 081 021.78 90.81 30/12/2013
Total Agricultural Sector 71 240 000 22 029 972 30.92
Water and Sanitation Sector
6 DWSS Programme 15 secondary centres GRANT 17/07/2012 6 900 000 50 307.73 0.73 31/10/2017
DWSS Programme 15 secondary centres GRANT RWSSI 04/10/2012 2 603 331 101 864.59 3.91 31/10/2017
DWSS Programme 15 secondary centres LOAN 17/07/2012 10 710 000 0.00 0.00 31/10/2017
Total Water and Sanitation Sector 20 213 331 152 172 0.75
Transport Sector 7 Koumra- Sahr Road Asphalting Project GRANT 02/06/2009 31 610 000 27 785 672.82 87.90 31/12/2013
Total Transport Sector 31 610 000 27 785 673 87.90
Social Sector (Education and Health)
8 Lake Chad Basin Initiative Support Project (PAIBLT) MULTINATIONAL GRANT
10/11/2006 10 000 000 7 387 483.43 73.87 31/12/2013
Total Social Sector
10 000 000 7 387 483 73.87
1 NFSP Round Table 29/11/2011 139 326 133 092.02 95.53 30/06/2013
2 STATISTICS 22/11/2011 1 000 000 506 776.48 50.68 31/12/2013
3 Public Finance Capacity Building 14/01/2013 1 450 000 0.00 0.00 31/10/2014
4 General Livestock Census 02/12/2010 587 245 236 827.00 40.33 31/12/2013
5 Capacity Building in Extractive and Oil Industries 14/01/2013 1 350 000 0.00 0.00 31/10/2014
6 Cholera Emergency Aid 19/04/2012 630 517 630 517 100.00 30/06/2013
Sub-Total Institution and Capacity Building
5 157 088 1 507 213 29.23
Overall Total 138 220 419 58 862 513 42.59
On-going Bank Portfolio in Niger as at 30/06/2013
Project Approval
Date Closing Date
Loan/Grant Disbursement
Rate Amount
Tibiri-Dakoro and Madaoua Bouza Roads Project 19/12/2005 30/09/2013 22 000 000.00 66.08
Sub-Total Infrastructure - OITC
22 000 000.00 66.08
Niger- PPCR pilot Programme 24/09/2012 01/06/2014 6 170 353.72 0
Niger- PPCR pilot Programme 24/09/2012 01/06/2014 2 272 288.21 0
PPCR-Niger PROMOVARE Project 25/09/2012 01/10/2016 8 118 886.48 0
PPCR-Niger PROMOVARE Project 25/09/2012 01/10/2016 6 170 353.72 0
Maradi, Tahoua and Zinder Mobilization Project 20/09/2011 31/12/2016 9 340 000.00 3.5
Maradi, Tahoua and Zinder Mobilization Project 20/09/2011 31/12/2016 21 433 860.30 0
Tillabéry, Diffa Region Water Mobilization Project 05/10/2006 31/12/2012 13 000 000.00
KANDADJI Programme Phase I 29/10/2008 31/12/2015 20 000 000.00 12.58
KANDADJI Programme Phase I 29/10/2008 31/12/2015 20 000 000.00 15.71
Sub-Total Agriculture - OSAN
106 506 742.43 12.97
DWSS Project in 3 regions 21/02/2007 30/11/2012 10 351 947.98
DWSS Project in 3 regions 21/02/2007 30/11/2012 3 000 000.00
RDWSS Project Phase II 20/09/2011 31/12/2015 16 000 000.00
RDWSS Project Phase II 20/09/2011 31/12/2015 3 300 956.45
Sub-Total Water and Sanitation –OWAS
33 320 617.69 37.92
Education and Vocational Training Development Support 15/12/2012 31/12/2016 17 630 000.00
Education and Vocational Training Development Support 15/12/2012 31/12/2016 7 870 000.00
Sub-Total Social – OSHD
25 500 000.00 0.95
Domestic Resource Mobilization Support Project 26/01/2012 31/12/2016 10 000 000
Inclusive Growth and Food Security Enhancement Support Project 14/11/2012 31/12/2014 21 560 000.00
Total
230 038 240.12 18.8
APPENDIX III
- 3 -
Key Related Projects Financed by the Bank and other Partners in Chad
No. Project Description Source of Financing
Cost (in CFAF
million Net of
Taxes)
1 Sarh/Kyabe Road Asphalting Project EDF 55,229
2 Koumra/Sarh Road Asphalting Project ADF 56,170
3 Massakory/Ngouri Road Asphalting Project IDB 55,393
Key Related Projects Financed by other Partners in Niger
No. Project Description Source of Financing
Cost (in CFAF
million Net of
Taxes)
1 Development of access roads to the 2nd Bridge in Niamey China 6,000
2 Rehabilitation of the Dosso-Bella II Road EDF 27,350
3 Bella-Gaya Road BIDC/WADB/OFID 26,965
4 Tibiri-Dakoro and Madaoua-Bouza-Tahoua Road ADF/WADB 32,658
5 Niamey-Namaro-Farié Road WADB 18,519
6 Gouré-Djajiri Road BADEA 2,500
7 Tahoua-Filingue Road WADB /BIDC 37,257
8 Tahoua-Arlit Road AREVA 173,000
9 Implementation of the Programme to build 273 km of Feeder Roads EDF 9,352
10 Paved Roads Programme – EDF-10 EDF 54,583
11 Transport Sector Programme Support Project IDA 13,500
12 Renewal of CPTP Equipment Algeria 2,115
13 Rehabilitation of Roads EDF-11 EDF 87,489
14 Establishment of 22 new Toll Gates EDF 6,700
15 Say-Tapoa Road IDB 14,528
16 Baléyara-Filingue Road Rehabilitation EDF 11,500
17 Kelle-Goure and Kollo-Kirtachi Road IDA 33,257
- 4 -
APPENDIX IV
Map of the Project Area
- 5 -
ANNEXES
KEY ARGUMENTS IN SUPPORT OF THE REPORT
A.1. DETAILED PROJECT COST ESTIMATE
PROJECT COMPONENTS Amount
(CFAF) Amount (UA)
A. ROAD WORKS 229 347.99 302.88
1. Chad: Development and asphalting of the 330 km-long Ngouri/Bol/Baga-Sola/Rig-Rig/Daboua/ Niger Border road,
including refreshment areas and environmental safeguards
146 819.78 193.89
2. Niger: Development and asphalting of the 225 km-long Arlit/Assamakka/ Algeria Border road, including refreshment areas, environmental safeguards and 2 km-long secondary roads
43 796.09 57.84
3. Niger: Construction of the 543 km Farié bridge, including 3 km-long access roads 24 002.79 31.70
4. Algeria: Development and asphalting of the 10 km-long Customs Post/ Niger Border road 3 000.00 3.96
5. Chad: Monitoring and supervision of road works 7 340.99 9.69
6. Niger: Monitoring and supervision of road works 2 600.70 3.43
7. Niger: Monitoring and supervision of construction works on the Farié Bridge 1 200.14 1.58
8. Algeria: Monitoring and supervision of road works 150.00 0.20
9. Chad: Road safety, HIV/AIDS and environmental protection awareness 175.00 0.23
10. Niger: Road safety, HIV/AIDS and environmental protection awareness 262.50 0.35
B. RELATED WORKS 5 848.50 7.72
1. Chad: Rehabilitation of 100 km of feeder roads to open up agricultural production areas 2 000.00 2.64
2. Chad: Rehabilitation of social infrastructure in Liwa and Daboua (schools, health centres, water points, loading docks
for livestock)
2 145.00 2.83
3. Chad: Monitoring and supervision of related works 207.25 0.27
4. Niger: Related works on roads (water points, loading docks for livestock, etc.) 1 195.00 1.58
5. Niger: Related works on the Farié Bridge 230.00 0.30
6. Niger: Monitoring and supervision of related works in Farié 11.50 0.02
7. Niger: Monitoring and supervision of related works on the road 59.75 0.08
C. TRANSPORT AND TRANSIT FACILITATION 10 500.00 13.87
1. Construction of an equipped juxtaposed checkpoint at the Algeria/Niger border, including a weighing station 5 000.00 6.60
2. Monitoring and supervision of construction works on the Juxtaposed Checkpoint (JCP) at the Algeria/Niger border 250.00 0.33
3. Construction of an equipped juxtaposed checkpoint at the Niger/Chad border, including a weighing station 5 000.00 6.60
4. Monitoring and supervision of construction works on the Juxtaposed Checkpoint (JCP) at the Niger/Chad border 250.00 0.33
D. INSTITUTION BUILDING AND STUDIES 2 734.37 3.61
1. Chad: Institution building of the National Freight Office (BNF) in the collection and processing of freight data 136.20 0.18
2. Chad: Feasibility study on lake transport and the establishment of a direct land connection to Nigeria 1 000.00 1.32
3. Niger: Technical assistance for the establishment of a management policy on access corridors and review of bilateral
road transport agreements
223.00 0.29
4. Niger: Support for the modernization of the Transportation Data Bank (BDT) 500.00 0.66
5. Niger: Formulation of the National Road Safety Strategy (SNSR) 200.00 0.26
6. Niger: Analysis of the performance of the logistics chain between the Port of Algiers, Niamey and N'Djamena, together with the development of an action plan
216.00 0.29
7. Niger: Feasibility study on the Trans-Saharan Backbone (DTS) for the Algeria/Niger/Chad/Nigeria fibre optics 459.17 0.61
E. PROJECT MANAGEMENT & MONITORING 1 700.04 2.25
1. Financial and accounting audit of the project in Niger and Chad 175.00 0.23
2. Technical and road safety audit in Niger and Chad 120.00 0.16
3. Monitoring-evaluation of the socio-economic impacts of the project in Niger and Chad 324.44 0.43
4. Niger: Technical assistance to the Executing Agency for keeping the project’s accounts 180.00 0.24
5. Niger: Functioning of the Project's Executing Agency and Joint Technical Committee (JTC) 507.80 0.67
6. Chad: Functioning of the Project's Executing Agency and Joint Technical Committee (JTC) 392.80 0.52
F. CLEARANCE OF RIGHT-OF-WAY 399.00 0.53
BASE COST 250 560.70 330.90
Provision for Physical Contingencies 24 525.90 32.39
Provision for Price Escalation 13 712.33 18.11
TOTAL COST 288 798.93 381,40
- 6 -
A.2. ARRANGEMENTS RELATING TO THE PROCUREMENT OF GOODS AND SERVICES FINANCED BY THE ADF IN CHAD
Type of Procurement
Total
Amount
(UA Million)
ADF-12 Loan ADF-12
Grant
Procurement
Method Remarks
1. GOODS
2. WORKS
2.1 Development and asphalting of road including related works and the
juxtaposed checkpoint at Chad/Niger border 205.97 [18.10] [12.77] ICB
Includes road works, recreational areas, related
works, environmental protection measures and the
juxtaposed checkpoint at the Chad / Niger border.
Works are broken down into 4 lots.
3. SERVICES
3.1 Monitoring and supervision of road works and related works 8.24 [2.95] Short List (SL) SBQC
3.2 Road safety awareness activities 0.23 [0.23] SL NGO only
3.3 Institution building of the National Freight Office (BNF) in the collection
and processing of freight data 0.18 [0.18] SL SBQC
3.4 Feasibility study on lake transport and the establishment of a direct land
connection to Nigeria 1.32 [1.32] SL SBQC
3.5 Financial and accounting audit of the project 0.10 [0.10] SL SMC
3.6 Technical audit of the project 0.05 [0.05] SL Individual Consultant
3.7 Road safety audit 0.03 [0.03] SL Individual Consultant
3.8 Monitoring-evaluation of the socio-economic impacts of the project 0.25 [0.25] Direct
Negotiation INSEED
Legend: The amounts in brackets [ ] are financed with ADF resources.
- 7 -
A.3. ARRANGEMENTS RELATING TO THE PROCUREMENT OF GOODS AND SERVICES FINANCED BY THE ADF IN NIGER
Type of Procurement
Total
Amount
(UA Million)
ADF-12
Loan ADF-12
ADF Grant
Cancellation
Procurement
Method Remarks
1. GOODS
1.1 Procurement of six vehicles for the Project's Executing Agency 0.198 [0.198] NCB
1.2 Procurement of office furniture 0.007 [0.007] Shopping for
Contractors (SC)
1.3 Procurement of IT equipment 0.01 [0.01] SC
1.4 Procurement of accounting software 0.03 [0.03] SC
2. WORKS
2.1 Development and asphalting of road including related works on the road 59.30 [30.38]
ICB
Includes road works, recreational areas, related
works, and environmental protection measures.
Works are broken down into 2 lots, given that lot 2
is financed by the ADF
2.2 Construction of the Farié Bridge and related works 32.00 [16.21] [15.46] [0.33] ICB
Includes the construction of the bridge, access roads,
related works and environmental protection
measures
3. SERVICES
3.1 Monitoring and supervision of construction works on the road and related
road works 3.51 [1.52]
Short List (SL) SBQC
3.2 Monitoring and supervision of construction works on the bridge and
related works in Farié 1.60 [1.60]
SL SBQC
3.3 Technical assistance for the establishment of a management policy on
access corridors and review of bilateral road transport agreements 0.29 [0.29]
SL SBQC
3.4 Support for the modernization of the Transportation Data Bank (BDT) 0.66 [0.66] SL SBQC
3.5 Formulation of the National Road Safety Strategy (SNSR) 0.26 [0.26] SL SBQC
3.6
Analysis of the performance of the logistics chain between the Port of
Algiers, Niamey and N'Djamena, together with the development of an
action plan
0.29 [0.29]
SL SBQC
3.7 Financial and accounting audit of the project 0.13 [0.05] SL SMC
3.8 Technical assistance to the Executing Agency for keeping the project’s
accounts
0.24
[0.24]
SL Individual Consultant
3.9 Technical audit of the project 0.05 [0.05] SL Individual Consultant
3.10 Road safety audit 0.03 [0.03] SL Individual Consultant
3.11 Monitoring-evaluation of the socio-economic impacts of the project 0.18 [0.18] Direct
Negotiation INS
3.12 Road safety, HIV/AIDS and environmental protection awareness activities
on the road and in Farié 0.35 [0.35]
SL NGO only
3.13 Feasibility study on the Trans-Saharan Backbone (DTS) for the
Algeria/Niger/Chad/Nigeria fibre optics 0.61 [0.61]
SL SBQC
Legend: The amounts in brackets [ ] are financed with ADF resource
- 8 -
A.4. PROJECT FINANCIAL MANAGEMENT
Niger:
The current financial management system at the Directorate General for Major Projects (DGGT) of the
Ministry of Equipment (MEQ) was appraised in June 2013 in accordance with the Bank's methodology.
The objective is to determine whether: (i) the project's Executing Agency has the acceptable and
appropriate financial management capacity to ensure the judicious, efficient and economical use of
project funds; (ii) project financial reports will be prepared in an accurate, reliable and timely manner;
and (iii) project assets will be saved and accounts audited within the agreed timeframe.
It is clear from such review that the financial management system in place is not appropriate for the
financial management of the project due to the lack of human and material resources necessary for
proper accounting and financial management, particularly the lack of an accountant with adequate
qualifications and experience, suitable accounting software, and a procedures manual. Under these
circumstances, the overall fiduciary risk is considered “high”. However, the risk can be reduced to
“substantial” through the timely implementation of the measures contained in the table below:
Financial Management Action Plan
Actions Responsibility Maturity
Prepare an administrative, accounting and
financial procedures manual acceptable to the
Bank in all significant aspects.
DRA/MEQ Prior to first disbursement.
Recruit, at the local level, a Project Administrative
and Financial Officer (AFO) with qualifications
and experience satisfactory to the Bank.
DRA/MEQ Not later than three (3) months after
the first disbursement.
Appoint a project accountant from among the civil
servants (DGGT, if possible) with minimum
requisite qualifications in accounting to support
the AFO, who will build his/her capacity with a
view to ensuring the sustainability of
achievements for the management of future
projects.
DRA/MEQ Prior to first disbursement.
Establish a computerized accounting and financial
management system comprising the procurement
of computers and accounting software, software
configuration and the training of staff on the said
software.
DRA/MEQ Not later than six (6) months after the
first disbursement.
Agree on the formats and frequency of the
financial monitoring report. DRA/BAD At negotiation
Agree on the TOR of the External Auditor. MEQ/AfDB/IDB At negotiation
Recruit the external auditor to ensure that annual
audit reports are prepared and submitted to the
Bank in a timely manner.
DRA Not later than six (6) months after
Project effectiveness
Include, in the Work Programme for 2014 of the
CC or IGF or IG of ME, the review of project
activities and field at least one mission / half year.
MEQ/MF/CC Field the first mission six months
after the first disbursement.
The actions and deadlines indicated above are commitments and obligations for the Borrower.
The DGGT/MEQ is the project management and coordination organ, and is responsible for its financial,
accounting and administrative management. This is the same directorate which, through a Management
Unit, is currently in charge of managing the Tibri-Dakoro, Madaoua-Bouza-Tahoa Road Construction
Project financed by the Bank. Under the TSH project, DGGT will be supported by: (i) the
Arlit/Assamakka Project Management Unit (PMU) comprising a civil engineer, Head of Unit, a senior
technician and support staff; (ii) the Farié Bridge Management Unit, which will also comprise an
engineer and a technician; and (iii) administrative and financial management staff, a
monitoring/evaluation expert and an environmentalist. Such staff should be appointed from among the
civil servants of the MEQ. Given the lack of qualified accounting professionals within the MEQ, the
Administrative, Accounting and Financial Officer (AFO) will be recruited through a competitive
process at the local level. He/she will be assisted by an accountant appointed from among the civil
- 9 -
servants of the supervisory ministry. The DGGT will prepare a procedures manual acceptable to the
Bank in all significant respects and have it adopted prior to project implementation. A multi-project
accounting software will be procured at project start-up on ADF resources to enable the establishment
of an appropriate computerized accounting and financial management system - not later than six (6)
months after the first disbursement. The IDB will finance part of the operating budget of the project,
given that the balance will be paid by the national counterpart contribution.
The DGGT manages several projects funded by bilateral financial partners. It currently manages the
Tibri-Dakoro, Madaoua-Bouza-Tahoa road construction project. It will use this experience to better
implement the TSH Project activities. The weaknesses ensuing from this experience concern mainly the
quality of financial information and its production deadlines, owing to the lack of suitably qualified
financial management personnel. Project account audits are produced with many delays with respect to
requisite timeframes. For instance, the audit for fiscal year ending 31 December 2012 has not yet been
undertaken. The conduct of such audit shall be a condition precedent to the first disbursement of the
project under review.
The accounting software currently used at DGGT does not allow for the simultaneous management of
multiple projects, and the procedures manual is specific to the Tibri-Dakoro Project. Under the
management of the TSH Project, the DGGT will procure, with ADF resources, appropriate software for
the concurrent management of several projects with multiple funding sources and recruit, at the local
level, an Administrative and Financial Officer (AFO) with a view to offsetting the inadequacy of
relevant skilled human resources at the MEQ. The procedures manual should be updated to incorporate
new aspects of management induced by the advent of the TSH Project.
For the moment, the performance of the State's internal audit system is unsatisfactory. During the five
years of implementation of the Tibri-Dakoro, Madaoua-Bouza-Tahoa Project financed by the Bank, no
internal control mission of State supervisory bodies was conducted. Under the TSH Project, the mission
recommends the establishment of a programme for internal audit missions (at least one per half year) of
one of the State services empowered to conduct audits, in particular the General Inspectorate of MEQ,
the Court of Auditors or the General Inspectorate of Finance. The reports of these missions will be sent
to the Bank and kept in the project’s archives for purposes of information needed by external auditors.
The external audit of the TSH Project accounts in Niger will be conducted by an external auditor
acceptable to the Bank. An external audit report, together with a letter to management, will be
submitted to the Bank within six months after the end of each fiscal year. However, the first audit will
cover the first 18 months of the project where the first disbursement was made in the second half of the
first disbursement. This same principle applies to the last audit of the project, if the closing date is
within the first six (6) months of the said fiscal year. The cost of the audit will be borne by the project.
Only the direct payment method is retained for ADF disbursements. Financing by the IDB and possibly
the Government will cover the financing needs of the project management component. To achieve this,
the DGGT will open a special account in local currency (CFA Franc) with a bank to receive funds
exclusively from the IDB. Under this project, counterpart funds from the State will be disbursed only
through the direct payment method.
There is still substantial inherent risk. Hence, the project will be subject to two on-site supervision
missions per year. This frequency and the risk related to the overall financial management of the
project, including the risk of non-control, will be reviewed immediately after effectiveness. Supervision
missions will endeavour that the entire system remains operational throughout the project duration.
They will include visits to sites, offsite reviews and building the capacity of the project’s accounting
and financial staff.
Chad:
The financial management system in place at the Project Monitoring and Coordination Unit (PMCU) of
the Ministry of Infrastructure and Transport (MIT) was assessed in May 2013 in N’Djamena, in
accordance with the Bank’s methodology adopted by ORPF.0 in June 2010 in its kit on “Financial
Management of Projects funded by the African Development Bank.” Furthermore, the appraisal was
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enriched by the lessons learned from the implementation, by the CPSC, of two road projects financed
by the Bank. The objective is to ensure that project resources are used effectively and efficiently, and
solely for their intended purposes.
This appraisal revealed that the financial management system in place at the PMCU is not sufficiently
appropriate, owing mainly to the lack of an administrative, accounting and financial procedures manual
and accounting software for project financial management. The overall fiduciary risk is deemed
substantial. The mitigation measures proposed below should ensure that financial management
arrangements in place for the project will be sufficient to provide timely, accurate and reliable
information, and allow the preservation of project assets and the conduct of accounts audit within the
agreed timeframe.
Financial Management Action Plan
Actions Responsibility Maturity
Update the procedures manual to
make it more comprehensive,
incorporating the management
context, by PMCU, of several projects
financed by various partners and
acceptable to the Bank.
PMCU Prior to first disbursement
(Resources are provided for in the
2013 budget of the PMCU).
Procure and configure the multi-
project accounting software, and train
staff on the said software.
PMCU Not later than three (3) months
after the first disbursement.
Implement a comprehensive,
computerized financial management
system for project activities.
PMCU Not later than six (6) months after
the first disbursement.
Open a special account (FR/BDEAC) PMCU Prior to first disbursement
Agree on the formats and frequency of
the financial monitoring report.
MIT/ PMCU /Bank At negotiation
Agree on the TOR of the External
Auditor.
MIT/ PMCU /Bank/BDEAC At negotiation
Recruit the external auditor to ensure
that annual audit reports are prepared
and submitted to the Bank in a timely
manner.
PMCU
Not later than six (6) months after
Project effectiveness.
Provide funding for the PMCU after
the end of 2015, the date of the last
disbursement of IDA funding.
MIT/Bank Prior to the date of the last
disbursement of IDA funding.
Chang the TOR of the internal auditor
and the internal audit charter to
incorporate aspects of Bank financing.
PMCU Not later than six (6) months after
the first disbursement.
The actions and deadlines indicated above are commitments and obligations for the Borrower.
The PMCU/MIT is the project Executing Agency and is in charge of financial management. It scored
satisfactory results in implementing transport facilitation projects along the Douala-N'Djamena corridor
and the Koumra-Sarh Road Construction Project financed by the Bank. Institutional anchoring is also
suitable for the project, given that it is within the ministry in charge of the project and interacts with
specialized services of the said Ministry to implement its activities. It has a fiduciary team comprising a
chief accountant, an accountant, an internal auditor and a procurement officer. The latter position was
vacant at the time of the mission. The procurement officer will be recruited in the course of 2013
through a competitive process on the local market, similar to that of aforementioned colleagues who
have been in place for several years and are familiar with the Bank's financial management procedures.
Fees and staff bonuses are provided for under IDA financing and the operating budget of the PMCU.
The project will provide additional funding.
However, weaknesses were identified in the course of managing the above-mentioned road projects.
These include significant delays in the audit firm’s recruitment process, which did not allow the timely
submission of annual audit reports. These delays were eliminated and the project was able to submit the
final report due in fiscal 2012 on time. It was also noted that owing to the lack of appropriate
accounting software, the accounts of Bank-financed projects were maintained on Excel. The PMCU
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procedures manual was not adapted to the context of managing multiple projects with several different
partners. To meet the requirements of financial management that complies with the requisite minimum
standards, the PMCU will need to update its administrative, accounting and financial procedures
manual and procure software that will take into account the context of the Unit’s management of
several projects funded by several financial partners.
The scope of monitoring activities of the internal auditor of PMCU will be expanded to include
financing aspects of the Bank and other donors involved in funding the Chad component of the TSH
Project. In addition to its daily activities, the Internal Auditor will conduct at least one appraisal per
quarter of the current control system, culminating in an internal audit report to be approved by the
Project Coordinator and submitted to the Bank. The implementation of these appraisal
recommendations should be monitored through an action plan matrix with timelines and specific
activities as well as parties responsible for undertaking such tasks. The implementation status of
recommendations of internal and external audits will be included in the internal auditor's report.
The external audit of the Chad component of the Algeria Niger-Chad TSH Project will be conducted by
an external auditor acceptable to the Bank. An external audit report with a letter to Management will be
submitted to the Bank within six months following the end of each fiscal year. However, the first audit
report will cover the first 18 months of the project where the first disbursement was made in the second
half of the year of the first disbursement. This same principle applies to the last audit of the project, if
the closing date is within the first six (6) months of the said fiscal year. The cost of the audit will be
borne by the project.
Only the direct payment method is retained for ADF disbursements. Funding from BDAEC and
possibly the Government covers the financing needs of the project management component, which
requires the special account method. To achieve this, the PMCU will open a special account in local
currency (CFA Franc) with a bank to receive funds exclusively from BDEAC. Under this project, the
counterpart funds from the State will be disbursed exclusively through the direct payment method.
There is still substantial inherent risk. Hence, the project will be subject to two on-site supervision
missions per year. This frequency and the risk related to the overall financial management of the
project, including the risk of non-control, will be reviewed immediately after effectiveness. Supervision
missions will endeavour that the entire system remains operational throughout the project duration.
They will include visits to sites, offsite reviews and building the capacity of the accounting and
financial staff of the project.
A.5. DETAILED PROJECT ECONOMIC ANALYSIS.
The works concern three road sections of a total length of 565 km, including 10 km in Algeria, 225 km
in Niger (including the ramp leading to Arlit) and 330 km in Chad. Given the low volume of work to be
performed on Algerian territory, the economic appraisal of the project was conducted only on the Niger
and Chad sections. To ascertain the economic performance of the project, the entire section was divided
into five homogeneous traffic sections as follows: Arlit/Assamakka in Niger; Ngouri/Bol, Bol/Baga-
Sola, Baga-Sola/Rig-Rig and Rig-Rig/Daboua/Niger Border in Chad.
Weighing checks carried out in Chad show that 26% of trucks have at least one axle exceeding the
maximum load of 13 tonnes, which severely contributes to rapid road deterioration. In Niger, only
4.31% of the trucks were controlled for overloading. Counting campaigns were organized in Chad in
2010 and Niger in 2006. Given the impossibility of carrying out fresh counting campaigns in 2012, due
to security risk in northern Niger, the data collected in 2006 were extrapolated for 2013, based on
normal circumstances. The estimated data lead to an AADT (annual average daily traffic) per section
summarized in the table below:
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Sections Studied Length
in km PV
Pickup
Truck Bus
2-Axle Truck
3-Axle
Truck
Overal
l
Articul
Total % HV
Arlit/Assamakka (Niger) 223 9 16 3 7 20 7 62 54.9
Ngouri/Bol (Chad) 99 48 95 0 7 6 4 160 10.4
Bol/Baga-Sola (Chad) 58 32 51 0 7 6 6 102 18.6
Baga-Sola/Rig-Rig (Chad) 80 24 18 0 4 4 2 51 18.6
Rig-Rig/Niger Border
(Chad) 93 7 6 0 2 1 1 18 26.7
The extrapolated AADT on the Arlit/Assamakka section is consistent with the counts made in 2013 by
DGR in Algeria, in Tamanrasset (5000 veh/day, 60% of which are HVs (Heavy Vehicles)) and at In
Guezamm (200 veh/day, 55% of which are HVs). It is obvious that a substantial portion of this traffic,
especially at In Guezamm, is heading for the Arlit region in Niger.
The road is expected to be commissioned starting 2017, given that works would be executed over the
period 2014-2016.
At commissioning, account was taken of traffic induced in Niger that will account for 15% of normal
traffic for LV (Light Vehicle) and HVs. Furthermore, account was taken of a diverted traffic that
corresponds to the transportation of 135,300 tons of freight and an additional mining traffic of 13
vehicles per day, mostly trucks, in light of on-going mining projects in the region and relevant
information provided by AREVA. The annual growth rates used for normal traffic are 5% and 6% for
LVs and HVs. With respect to induced traffic and additional mining traffic, the annual growth rate
stands at 3% for all categories of vehicles.
In Chad, the induced traffic was estimated at 35% of normal traffic for light vehicles and 25% for HVs.
Furthermore, account was taken of a diverted traffic of LV on the Ngouri /Bol section, given that other
sections are open. In addition, international traffic was considered in relation to the prospect of opening
the country to ports on the West African coast and the Mediterranean fringe. The annual growth rates
used for normal traffic stand at 5.5% for LVs and 5% for HVs. With respect to induced traffic and
international traffic, the annual growth rate stands at 3% for all categories of vehicles. Traffic estimated
at the road commissioning in 2017 will be as follows:
Sections Studied Length
in km PV
Pickup
Truck Bus
2-Axle
Truck
3-Axle
Truck
Overal
l
Articul
Total % HV
Arlit/Assamakka (Niger) 223 12 22 4 9 28 41 116 67.1
Ngouri/Bol (Chad) C 88 168 38 11 18 33 357 17.5
Bol/Baga-Sola (Chad) 58 55 87 26 11 18 36 234 28.2
Baga-Sola/Rig-Rig (Chad) 80 41 30 18 6 15 31 140 36.4
Rig-Rig/Niger Border
(Chad) 93 12 10 10 4 11 29 76 57.4
The first economic benefit of the project is the reduction of vehicle operating costs (VOC). According
to the HDM IV model, the VOC was calculated for six categories of new vehicles in the “with and
without” project situation over a period of 20 years from the year of commissioning. VOC gains are
economic benefits. The project will also result in travel time gains for users and better access to
production areas and /or flow of goods. Thus, in the Chadian section, agricultural and agro-pastoral
surplus was taken into account, in light of benefits from the opening of the project area at the
completion of works and the high probability of increase in agricultural production or in the selling
price of livestock.
The economic cost of investment is the cost at constant prices, net of taxes. They are spread over the
period 2014-2016. The residual value of investment after twenty (20) years is limited to 20% due to
heavy vehicle traffic forecast and subsequent structural damage, in the absence of regular maintenance.
The road maintenance policy implemented in Niger under the current situation (“without project”)
recommends annual routine maintenance, the cost of which stands at CFAF 0.4 million/km (for earth
roads) and regular maintenance performed every 5 years, at the cost of CFAF 60 million/km. In the
“situation with project”, the road maintenance policy provides for routine annual maintenance in the
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amount of CFAF 1.2 million/km, given the age and quality of the pavement structure. Routine
maintenance will be performed every 7 years, at the cost of CFAF 90 million/km. Such routine
maintenance will involve resuming the two-layer surface coating over the entire width of the road,
including shoulders and restoring sanitation facilities. The table below shows the VOC with and without
the project:
Parameters Vehicle Operating Cost in 2017 Before and After the Project in CFAF per Veh/km
Private
Vehicle Minibus Bus
2-Axle
Truck
3-Axle
Truck
Overall
Arti. Total Avr.
LV
Avr.
HV
Avr.
VOC Without the Project (in
2017) 302 404 507 541 1 039 1 265 4 059 677 404 945
VOC With the Project (in
2017) 182 203 263 290 539 654 2 132 355 216 494
The road maintenance policy implemented in Chad under the current situation (“without project”)
recommends annual routine maintenance, the cost of which stands at CFAF 3 million/km (for earth
roads) and regular maintenance performed every 5 years, at the cost of CFAF 20 million/km. In the
“situation with project”, the road maintenance policy provides for routine annual maintenance in the
amount of CFAF 3.7 million/km, given the age and quality of the pavement structure. Routine
maintenance will be performed every 15 years, at the cost of CFAF 80 million/km. Such routine
maintenance will involve resuming the two-layer surface coating over the entire width of the road,
including shoulders and restoring sanitation facilities. The table below shows the VOC “with and
without project”.
Parameters Operating Cost in 2017 Before and Vehicle After Project in CFAF per Veh/km
Private
Vehicle Minibus Bus
2-Axle
Truck
3-Axle
Truck
Overall
Arti. Total Avr.
LV
Avr.
HV
Avr.
VOC Without the Project (in
2017) 544 727 913 974 1 871 2 278 7 307 1 218 728 1708
VOC With the Project (in
2017) 366 402 423 1 196 1 259 1 326 4 972 829 397 1261
The economic benefits derived from project implementation during the period of analysis (2017-2036)
entail the following ERR and NPV by road section.
Economic
Parameters
Analysed
Arlit/Assamakka
(Niger)
Ngouri/Bol
(Chad)
Bol/Baga-Sola
(Chad)
Baga-Sola/Rig-Rig
(Chad)
Rig-Rig/Daboua
(Chad) Entire Project
ERR 14.9% 19.8% 17.0% 12.2% 12.1% 15.3%
NPV in
CFAF million 7 357 25 895 9 033 571 216 43 072
ERR Sensitivity
Test (10%
variation in costs
and benefits)
12.0% 16.9% 14.3% 10.0% 9.8% 12.7%
A.6. RATIONALE FOR REDUCING NIGER’S COUNTERPART CONTRIBUTION
Niger's eligibility for 100% financing on ADF resources is justified since it is compliant with the Bank's
policy on eligible expenditure with respect to the three essential criteria mentioned below (Arrangement
4.2.2 of the Bank Group's Policy on Eligible Expenditure: ADB/BD/2007/106/Rev.1, revised version of
19 March 2008).
1. The country's commitment to implement its development programme
It is worth noting that the Government's development programme is based on the Economic and Social
Development Plan (PDES) for 2012-2015, which remains the sole baseline framework for investment
planning. The PDES vision is based on building an emerging country, undergirded by a dynamic,
diversified and sustainable economy harmoniously distributed on the national territory. Its objective is
to promote the economic, social and cultural welfare of the Nigerien population.
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Five strategic pillars have been identified to meet the challenges and issues of economic and social
development, as follows: (i) consolidation of the credibility and effectiveness of public institutions; (ii)
sustainability conditions for balanced and inclusive development; (iii) food security and sustainable
agricultural development; (iv) a competitive and diversified economy for accelerated and inclusive
growth; and (v) promotion of social development. These strategic pillars are complementary and
interdependent. They form a coherent whole whose implementation will allow Niger to achieve the
expected objectives and outcomes.
The Bank's country strategy in preparation will be aligned with PDES that the Government has
undertaken to implement. Such commitment was reasserted to development partners at the International
Roundtable on Financing PDES that the Government organized in May 2012 in Paris. During the
roundtable, the Government committed to fund approximately 72.1% of the cost of implementing the
PDES on internal resources and the Bank, like other FTPs, reaffirmed its commitment to support
Government efforts in this direction.
2. Funds allocated by the country to sectors targeted by Bank assistance
The Nigerien Government's transport sector policy has undergone massive changes through the
adoption, in June 2012, of the National Transport Strategy (NTS) for 2011-2025. Indeed, it came to
replace the NTS 2005-2010, which concerned only the road sub-sector. The new strategy therefore
affirms the multimodal and multi-sector perspective of government policy on transport. However, the
road sub-sector remains dominant, given that road transport accounts for 95% of the country's overall
transport demand, and investments in this sub-sector monopolize 74% of the total cost of the NTS. In
addition, the road sub-sector also receives almost all the funding mobilized by donors, thereby
highlighting the phenomenal interest taken therein.
3. The country’s budgetary position and debt level
At the end of 2010, Niger's public debt level was low: the total public debt (domestic and external)
accounted for about 19.8% of GDP. This resulted from debt relief under the HIPC Initiative and the
MDRI Initiative enjoyed by Niger in 2004 and 2006. In addition, since then, Niger had also
implemented a prudent management of its debt under the aegis of various economic and financial
programmes, especially those agreed with the IMF. In addition, a comprehensive inventory of domestic
debt drawn up by the authorities and the signing, in July 2010, of an agreement with the BCEAO on the
repayment of bank loans had improved the State’s financial situation. However, since 2011, public debt
has increased. The debt sustainability analysis revealed a deterioration of ratios, with the risk of over-
indebtedness moved from “low” to “moderate.” The stock of external debt rose from 17.4% of GDP in
2010 to 25.8% of GDP in 2011 and 27.1% in 2012. This is due to the State-provided guarantee to loans
granted to the oil refinery (SORAZ) and the contraction of a loan to finance the State’s participation in
the Imouraren uranium mine. As a result, Niger upgraded from the status of essentially a loan country
over the period 2011-2012 of ADF-12 to a loan and grant country over year 2013. It is recommended
that Niger resort to concessional financing and implement a prudent debt policy. Despite the favourable
medium-term economic outlook with a growth trend of 6% or even 7%, the budgetary constraint will
remain strong due to the impact of the Malian crisis on public finances. Indeed, as a result of the Malian
crisis and threats from extremist groups along the other borders (Nigeria, Libya), the security and
defence budget almost doubled in 2012. This trend is expected to continue in 2013 and the next few
years at the expense of certain types of expenditure.
In this context, it is recommended that the counterpart funds expected from the Government of Niger
for the projects be minimized, particularly in the case of this road project. The use of national resources
only translates the desire of ownership by the authorities.
Sub-section 5.1.1 of the Policy further states that the Bank will use the Country Financing Parameters
(CFPs) already developed for 38 countries by the World Bank.
