Malawi - Trunk Road Rehabilitation - Blantyre-Zomba Road Project 2019-06-29¢  iii Project Summary Project

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  • Language: English Original: English

    PROJECT: TRUNK ROAD REHABILITATION: BLANTYRE-ZOMBA

    ROAD PROJECT COUNTRY: MALAWI

    PROJECT APPRAISAL REPORT

    Date: February 2009

    Appraisal Team

    Team Leader: : L. Kiggundu, Senior Transport Engineer, OINF.2 Team Members: D. Gebremedhin, Principal Transport Economist, OINF.2

    N. Kulemeka, Principal Socio-Economist, OINF.2 R. Aron, Socio-Economist, OINF.2

    B. Nkhoma, Infrastructure Specialist, MWFO S. Demissew, Environmentalist/Consultant

    Sector Manager: J. Rwamabuga Sector Director: G. Mbesherubusa Regional Director: F. Black

    Peer Reviewers

    J.S. Kanyarubona, ORPC.2; E. Schroten, OWAS.2, W. Odhiambo, OSAN.3, L. Mukurasi, OSUS

  • TABLE OF CONTENTS Currency Equivalents i Fiscal Year i Weights & Measurements i Acronyms & Abbreviations i Loan Information ii Project Summary iii Result-Based Logical Frameworks iv Project Timeframe viii I. STRATEGIC THRUST AND RATIONALE 1 1.1 Project Linkages with Country Strategy and Objectives 1 1.2 Rationale for Bank’s Involvement 1 1.3 Donors Coordination 2 II. PROJECT DESRIPTION 2 2.1 Project Components 2 2.2 Technical Solution Retained and Other Alternatives Explored 3 2.3 Project Type 3 2.4 Project Cost and Financing Arrangements 4 2.5 Project Target Area and Population 5 2.6 Participatory Process of Project Identification, Design and Implementation 5 2.7 Experiences and Lessons Reflected in Project Design 5 2.8 Key Performance Indicators 6 III. PROJECT FEASIBILITY 6 3.1 Economic and Financial Performance 6 3.2 Environmental and Social Impacts 6 IV. IMPLEMENTATION 8 4.1 Implementation Arrangements 8 4.2 Monitoring 9 4.3 Governance 10 4.4 Sustainability 10 4.5 Risk Management 11 4.6 Knowledge Building 11 V. LEGAL INSTRUMENTS AND AUTHORITY 11 5.1 Legal Instrument 11 5.2 Conditions Associated with Bank’s Intervention 12 5.3 Compliance with Bank Policies 13 VI. RECOMMENDATION 13 Appendices I. Country’s Comparative Socio-Economic Indicators II. Table of ADB’s Portfolio in Malawi III. Similar Projects Financed by the Bank and Other Development Partners in Malawi IV. Project Map

  • i

    Currency Equivalents February 2009

    1UA = MWK209.256 1USD = MWK132.934 1UA = USD1.57413

    Fiscal Year 01 July-30 June

    Weights and Measures 1 metric tonne (t) = 2,205 lbs. 1 kilogram (kg) = 2.205 lbs. 1 meter (m) = 3.281 ft 1 foot (ft) = 0.305 m 1 kilometre (km) = 0.621 mile 1 square kilometre (km2) = 0.386 square mile 1 hectare (ha) = 0.01 km2 = 2.471 acres

    Acronyms and Abbreviations ADB = African Development Bank ADF = African Development Fund ARAP = Abbreviated Resettlement Action Plan BADEA = Arab Bank for Economic Development of Africa CBO = Community based Organization CO2 = Carbon Dioxide CSP = Country Strategy Paper DBST = Double Bitumen Surface Treatment ESIA = Environmental and Social Impact Assessment ESMP = Environmental and Social Management Plan EU = European Union FE = Foreign Exchange GOM = Government of Malawi LC = Local Currency MGDS = Malawi Growth and Development Strategy MWFO = Malawi Field Office NGO = Non Government Organization NPV = Net Present Value RA = Roads Authority RAP = Resettlement Action Plan RBCSP = Results-Based Country Strategy Paper RFA = Roads Fund Administration RFP = Request for Proposals RSP = Road Sector Programme RTRN = Regional Trunk Road Network SADC = Southern African Development Community STI = Sexually Transmitted Infections UA = Units of Account VOC = Vehicle Operating Costs

  • ii

    Loan Information

    Client’s information BORROWER: GOVERNMENT OF MALAWI EXECUTING AGENCY: ROADS AUTHORITY Financing plan

    Source Amount (UA) Instrument ADF ADF GOM

    22.980 million 1.124 million 2.609 million

    Loan Grant Counterpart Financing

    TOTAL COST 26.713 million ADF’s key financing information

    Loan /Grant currency

    UA

    EIRR, NPV (base case) (19.3%, NPV: USD 13.94 million)

    *if applicable Timeframe - Main Milestones (expected)

    Concept Note approval February 2009

    Project approval June 2009 Effectiveness November 2009 Completion August 2013 Last Date of Disbursement December 2013

  • iii

    Project Summary Project Overview: The Trunk Road Rehabilitation Project: Blantyre-Zomba road is part of the North-South spine linking the southern part of Malawi to the central and northern regions and further on to Tanzania. The 60 km road is an important link on Route 29 of the SADC Regional Trunk Road Network (RTRN). The project is to be implemented over a five-year period for a total financial requirement of UA26.713 million, comprising UA25.53 million for the Blantyre-Zomba road and UA1.183 million for the feasibility and detailed engineering design of the Ntcheu-Tsangano-Neno-Mwanza road. Beneficiary Participation: The project outputs will directly benefit the people of the three districts of Blantyre, Chiradzulu and Zomba including residents of the two cities. The majority of road users are commuters travelling between the two cities for work, trading, agricultural activities and those seeking social services such as education and medical services. Administrators and social workers will also make use of the road to provide extension and outreach services. Notable impacts on the beneficiaries will include increased economic activities due to improved transport services with reductions in the cost of transport, travel time and improved road safety and ultimately improve the living standards of the communities in the zone of influence. There will be additional benefits from the project through acquisition of jobs during construction and obtaining sub-contracts for supply of goods and services. The communities along the road will also benefit from HIV/AIDS/STI and road safety awareness and campaigns. Project Rationale and Need: The project will contribute to the reduction of poverty by enhancing economic activities in the area and hence achieve the objectives of the Malawi Growth and Development Strategy (MGDS) which is in line with Bank Group Country Strategy Paper under Pillar I. The intervention has been identified by Government as first on the list of priority roads for rehabilitation in the Road Sector Programme (RSP 2007-2011). The project has a high economic rate of return and is environmentally sound and socially desirable. Bank’s Value Added: Bank has considerable experience in the road sector in the region including Malawi. The project has benefited from this experience in reviewing and interpreting the scope of works and detailed engineering design documents; and ensuring execution will be in an environmentally and socially acceptable manner. The Bank will bring, throughout the project cycle, engineering, environmental and economic expertise and experience to realize the objectives ad benefits of the project. Knowledge Management: The in-situ recycling strategy adopted for rehabilitation of the Blantyre-Zomba Road will contribute to knowledge generation on new techniques of best international practice in rehabilitation technology. The project will also support generation of knowledge through the capacity strengthening component.

  • iv

    TRUNK ROAD REHABILITATION PROJECT: BLANTYRE-ZOMBA ROAD

    RESULTS BASED-MATRIX FOR LOAN COMPONENT

    Hierarchy of Objectives

    Expected Results

    Reach (Target Population)

    Performance Indicators Source Method

    Indicative Targets Timeframe

    (Existence of Baseline?) Assumptions / Risks

    Sector Goal: To promote economic growth and poverty reduction through a coordinated transport environment that fosters safe and competitive operation of commercially viable, financially sustainable and environmentally friendly transport services.

    Impact: Improved transport services, enhanced economic activity and improved road safety

    Beneficiaries: The Malawian population, agro- industry and businesses

    Indicators: i. Road condition; ii. Agricultural production. iii. Road fatalities Data Source i. National Economic Reports ii. Roads Fund Administration and Roads Authority iii. Police records

    Target Indicators

    i. Increase in the national road network in fair to good condition from 50% in 2009 to 71% by 2020.

    ii. Smallholder share of GDP increased from 23.6% in 2008 to 34.9% by 2030.

    iii. Fatality rates reduced by XX percentage points from XXX/10,000 vehicles in 2009 to 2018.

    Risks Government’s commitment to the objectives of MGDS. Mitigating Assumptions Government will maintain commitment;

    Project Purpose: Improve the quality of transport services on the Blantyre-Zomba road and improve accessibility by the local communities to markets and social and economic services.

    Medium Term Outcomes Improved transport services with reduction