Document of The World Bank FOR OFRC£L USE ONLY MICROFI1CHE COPY Report No. :P- 5676 ANG Tyre: (Ptl) Title: TRANSPORT RECOVERY PROJECT ReportNo. P-5676-ANG Author: RAOUIL, OJ Ext. :34313 Raoon:J 1141 Dept. :AF3IN NENWRAN1Du AND RE (O DI OF THlE PRESIDEnT OF T1E INTEATIONAL DEv LOPEI ASSOCIATION ,TO THE ExECUTIVE DIRECTORS ON A pROPOSED CREDIT In HE AMIT EQUIVA T TO SDR 30 )IILLl4IO TO THE PEOPLE'S REPUBLIC OF ANGOLA FOR THE TRANSPORT RECOV PROJECT August 10, 1992 T docament bas a resicted distrto and may be used by recipients only In the perfonmance of thei oicil duties Its contet may tot othenwse be dicoed witbout World Bank authorization. CURRENCY AND EXCHANGE RATES Date Cuffency X,J!t NewKwanza As of April 16, 92 US$1.00 = NKzSSO Base Rate 1! 1/ Applicable to imports and exports, official financial transactions and calculations of custom duties since April 1992. Other transactions may be conducted through the conmercial banks at market rates. In July 1992, the prevailing market rate was about NKzs 1,800 = US$1. YVEIGHTS AND MEASURES 1 hectare (ha) = 2.47 acres 1 kilometer (km) = 0.624 miles 1 kilogram (kg) - 2.2 pounds Ob.) 1 meter (m) 3.28 feet 1 metric ton (m ton) = 2.204 (b.) 1 square kilometer (km) = 0.386 square mile (sq.m.) ABBREVATONS AND ACRONYMS CCCE - French Aid Agency (Caisse Centxale de Coopdration Ecomque) CFL - Luanda Railway (Csminho de Ferro de Luanda) CG - Consultative Group DANIDA - Danish International Development Agency ESW - Economic and Sector Work IDA - International Development Association INEA - Angola Highway Institute (insttuto de Estradas de Angola) IRE - Infrastructure Rehabilitation Engineering Project LPT - Labor Promotion and Training MINPLAN - Ministry of Planning ODA - Official development Assistance PIP - Public Investment Program SDR - Special Drawing Rights SIDA - Swedish International Development Agency SPA - Special Program of Assistance FISCAL YEAR January 1 - December 31 FOR OMCIL USE ONLY ANGOLA TRANSPORT RECOVERY PROJECT CREDIT AND PROJECT SUMMARY B1rme People's Republic of Angola Beneficiaries Ministry of Planing, Ministry of Publio Works and Uiban Development Angola Highway bnstit, Port of Lobito, Luanda Railway, Ministry of Tansport and Communictions Amou SDR 30 million Tarms Standard IDA terms, with 40 years maturty .nancing PlaEn, (US$ million) Percent Local Foreign Total Foreign Totat tDA Credit 0.2 40.8 41.0 99X 63% SIDA 0.0 3.3 3.3 100X 5% CCCE 0.0 3.0 3.0 100X 5S DANIDA 0.0 3.0 3.0 100% 5S Govermment of Angola 14.6 0.0 14.6 OX 22% Total Project 14.8 50.1 64.9 7nx 1002 Eonmic Rate of Return: 302 for caxponents totalling about 90 percent of the project cost. Staff Aorsisa! Report: Angola - Transport Recovery Project, Report No. 10520-AUG MM$s IBRD No. 23568 - R This document has a restricted distribution and ma y be u'r' by recipients only in th verformuae of their official duties. Its contents may not otherwi'e be disct;ised without World Bank authoriztion. MEMORANDUM AND RECOMMENDATION OF THE PRESIDENT OF THE INTERNATIONAL DEVELOPMENT ASSOC'ATION TO TE EXEClUTIVE DIRECTORS ON A PROPOSED CREDIT TO THE PEOPLE'S REPVB.IC OF ANGOLA FOR THE TRANSPORT RECOVERY PROJECT 1. I submit for your approval the following report and recommendation on a proposed development credit to The People's Republic of Angola for SDR 30 million, equivalent to US$41 million on standard IDA terms with a maturity of 40 years to help finance a transport recovery project. The project would be co-fineaned by a grant from the Swedish International Development Authority (SIDA), and would receive parallel financing from France's Caisse Centrale pour la Cooperation Economique (CCCE), and the Danish International Development Agency (DANMIDA) totalling US$9.3 million equivalent.' 2. CntrSectorBakgrond. Angola, one of the largest countries south of the Sahara with an area of 1.2 million sq.knm., a population of 10.6 million (growing at 2.8% per year), and a GNP per capita estimated at $620 (1989), has excellent long-term development potential due to its fertile land and abundant mineral resources, oil in particular. Since Independence in 1975, however, the economy has become highly distorted because of inadequate economic policies, a mass exodus of skldled manpower, and civil war. Agricultural production and distribution have been disrupted by war. Prior to Independence, Angola was an important net exporter of ariculural products, but in recent years has become increasingly dependent on food imports, and food aid, to supply urban populations which have burgeoned in part because of insecurity in the countryside. 3. Th" Angolan infrastructure sector was a major casualty of the long lasting civil strife and poor economic management. Transport infrastructure is severely deteriorated as a result of war destruction, and lack of adequate maintenance, in urn due to insufficient funding and weak institutional capacity. Consequently, inadequate infrastructure has become a major bottleneck to the resumption of economic activity. Existing assets are in urgent need of maitenance and rehabilitaon to avoid their loss. The country needs a sizable assistance program for rehabilitation investments, organizational restructuring, human resource development, and managerial and operations improvement, and a large part of this is urgent. 4. Project Objectives. Consistent with the Bank's strategy for Angola and as a complement to the Infrastructure Rehabiliation Engineering (IRE) project approved on July 16, 1991, the objectives of the proposed project would be to: (i) restore and preserve surface access to large portions of the country by addressing the most urgent infrastructure rehabilitation and maintenance needs; (-d) promote employment in the private sector through the development of small and medium enterprises using labor intensive technologies in road maintenance activities; iTh cUtY 1abkW atmtg ix Angola wasd iussedda th Bsd meettig of Januy 6, 1992. Ihe reo will mfvi ta Yata *owing ge electidon to be hd on Septetb28-29, 1992. It wi ptent a rve aftegy to th BoWd bit In te 6a yo togw ttpp. -2* (iii) assist In Improving and developing an adequate institutional framework- for the sector, especially for the management of main roads and the operations of the Luanda railway and the port of Lobito; and (iv) introduce appropriate sectoral policies, especially with regard to cost recovery and transport facilitation. S. Eroject Description lThe proposed project-as described in Schedule A and in the SAR- would support the folowLag high priority components of an emergency Transport Recovery Program including the rehabilitation of roads and bridges, the port of Lobito and the Luanda Railway and institutional development. 6. The road and bridge rehabilitation conwonent provides for the rehabilitation and preservation of 700 km of the paved highway network and the repair of about 25 wardamaged bridges, in strategic locations on the main road network with the objective of early reopening of the primary road network. Support would be provided to a labor W gnr jmond training (LM sub-component through the creation and operation within the Angola Highway Institute (INEA) of a training unit for contract management for the execution of labor intensive road maintenance works. Initay, the tasks will include clearing of vegetation along the roads rehabilitated under the project, and along the main roads within the city of Luanda. The objectives are to train and promote small and medium enterprises for road works and generate employment in road maintenance activities. 7. The Lobito Port operations aims to Improve port operations and transport services for a region with a high potential for agriculture. It consists of insttutional assistance for the port's operations and management to help with the implementation of an action plan with appropriate performance targets; procurement of spare parts and equipment; and minor structural repairs. S. Ibe WI= rehabnk ationWMRQnt provides the minimum assistance required to enable the Luanda Railway (CFL) to sustain and increase commercial traffic between Luanda and Malange. The project would include an action plan based on performance targets, including insttutional assistance, track and structure rehabilitation, and overhaul of equipment and rolling stock. 9. Besides assistance to relevant transport entities described above, the project would include studies on (i) privatition and liberalization in road transport, and (ii) intemodl transport facilitation, including the regulatory framework of maritime transport, port institutions, customs operations and do ation, and the freight-forwarding and insurance industries. Lastly, technical assistance will be provided to assist the Ministy of Planning (MNPLAN) with overall project coorinaidon. 10. Pje kpemnation. The project would be implemented under the coordination and monitoring of the existing proje*x coordination unit of MINPLAN-under the same arrangements as for the IRE project. Each project component will be the responsibility of a component coordinator. The reponsible ministries will (i) give individual component coordinators ample authority to manage, monitor; arrange for audit, and report on the execution of their respective component, and (ii) delegate to the agencies concerned the responsibility for technical management of their component Theses agencies: INEA for the road and bridge component, Port of Lobito for the port component, and CFL for the rail component will be given -3 - responsibility by their respecive ministries for the management of their component (bidding preparadon and processing, contract monitoring) and will report to the project coordination uwit. 11. Projc.L Sustalnabil.. Overall, the project would contribute to the sustainable recovery of the country's economy by reconneting its various regions and allowing resettlement of war- displaced populations in areas with high agricultural potential. It also would contribute substaially to the development of the transport sector, and especially of the commercial transport agencies-Port of Lobito and CFL-by improiing their performance, especially cost recovery. In the road sector, the project would promote maintenance, labor- intnsive techniques under contract, and resource mobilization which in turn are indispensable first steps toward long- term sustalnability. 12. Lessons Learned from Pevious IIDA hnvolvement. The proposed project is the second investment in physical infrastructure supported by the Bank Group in Angola, after the Lobito Benguela Urban Infrastructure Rehabilitation Project approved on January 7, 1992. Therefore, there are no direct lessons to draw from prior Bank experience in this country. However, lessons have been drawn from other experiences elsewhere: with regard to implementation, existing institutional structures will be strengthened instead of relying on ad hoc project implementation units; it is also proposed that the role of the implementing agencies be limited to that of contract management for civil works, with supervision through technical assistance, rather than attempting to perfm implementation tasks directly. 13. Rationale for IDA Involvement. The proposed project addresses one of Angola's highest priority needs - the rehabilitaion of the country's battered infrastructure base - and is a prerequisite to the economy's recovery. It fits well into the Bank Group's strategy for the country, which stresses reconstruction. This project would complement the on-going IRE project which was conceived prior to the peace agreement in 1991, and was not intended to start the actual rehabilitation of infrastructure in the interior of the country. It would strengthen existing institutions in the infrastructure sector and introduce basic principles of cost recovery. The Bank bas a unique catalytic role to play in assisting the government in the design, financing and implementation of this high priority recovery program. The project would enable the Bank to play an important coordinating role in the transport sector where donor interest is strong, but so far not well coordinated. 14. Acions Agreed upon. During negotiations, agreements were reached on the following matters: (i) submission to IDA of INEA's annua road work program and budget, each year by November 1; and of a three-year Public Investment Program for the transport sector by November 1, 1993, and yearly by November 1, thereaft for review, comments and agreement; (i) organization of a first-year review no later than twelve months after credit effectiveness to monitor project implementation and performance of the agencies concerned, (ill) proposals to control truck axle loads; (iv) plans of action concening the CFL railway mnd fte Port of Lobito, including tariff measures; (v) action plan for fuel taxation to improve cost recovery; and (vi) implementation of a program for removal of land mines on the project work sites. 15. Conditions of Effectiveness would be: (i) implementation of fuel taxadon measures to ensure collection of the equivalent of at least $US15 million per year, of an action plan to contol truck axle loads and vehicle control at selected locations, and of action plans for the operation of Port of Lobito and CFL, including performance objectives and tariff measures; (ii) signing of -4 - implementation agreements with the various agencies and ministries Involved In project implementation; (Mii) signing of a letter of Transport Sectr Policy; and (iv) opening of a project account and initial deposit of US$1 million equivalent. Conditions of Dibursement for the civi works would be the hiring of consultants for work supervision, and certification of legal ownership of land for the training unit. 16. gmir monme l Ag,ets. An environmental analysis was carried out with the ass!stance of a consultant for the road component during project preparation Its findings were that: ithe project would have a substantial positive social and environmental impact by (a) Improving road drainage, which in turna would limit the erosion risks, and (b) removing war-caused wrecks and scrap metal left alongside the roads and on the sites of destroyed bridges. However, the study r6ecommended that arennin be paid to the design and execution of civil works to alleviate the potential risk of disttrbances caused to people and/or the natural environment as a result of these works; this concem has been duly reflected in the project detailed desigp. 17. PaQ Teive Categories. The project would contribute to the following categories: (i) public secor refnrm would be supported through improved management and cost recovery; (ii) employment generation would contribute to poverty alleviation; (iii) privatzation and private sector promotion would be achieved by training in management and labor-intensive techniques in road rehabiLitation and mainenance; (iv) food security would be improved by encouraging agricultura pursuits and improving transport conditions; and (v) environmental conditions would be improved by repairs to road drainage, and removal of war-caused wrecks and scrap metal alongside roads, and also by the removal of mines along the roads and on bridge sites which is necessaryI prior to undertaking the project civil works. 18. Prqbc Benefit. Ihe rehabilitation of the transport sector is a prerequisite to economic recovery of Angola. Direct economic benefits would be sharply reduced operaing costs in road transport, and reestablishment of traffic tc the interior of the country. The overall project beneficiaries would be a large proportion of the Angolan people who would have restorAd access to large areas of the country, the agricul.ure sector, and the inhabitants of major cities and semi- urban rural centers hroughout the country who would enjoy the benefits of enhanced food security and cheaper food prices. Immediate direct beneficiaries of the project would be the people (mostly unilled workers) who would be hired to execute project works: (1) about 4-5,000 workers would be employed by contractors over two years, and (ii) over the medium/long tem, an additional 4,000 workers could be employed by small and medium enterprises trained under the project (LPT sub-omponent). The overall project Economic Rate of Return is 30%. A risk analysis was carried out for individual project componens to test the rate of return's sensitivity to construction costs, traffic growth rate and induced traffic. Test results show that under worst case assumptions, the rate of return of individual sub-components would generaly remain well above the opportunity cost of capital estimated at 10%. 19. RikI. Ihe risks inherent in the project result from (i) government's limited capacity to ensure adequate local fincing for the project, and (ii) weak institutional capacity to manage the project, both of which may cause delays in project impl io and thus permit further deterioration of trasport infrastructure and services. Unfamiliarity of project stff with Bank procedures, and a potentially unstable political environment could also lead to significant delays. The project design reduces the potential consequences reated to these risks. As for the counterpart funding issue, government would provide for the local costs only, the lager part -5- being for road maintenance activities, and cost recovery mechanisms would be developed to help generate the resources needed. As for the weak institttional capacity, the bulk of project- financed road works would be carried out under contract and supervised by consultants, which would limit the risk associated with INEA's current insdtutional weakess. 20. Recommendation. I am satisfied that the proposed credit would comply with the Articles of Agreement of the Association and recommend that the Executive Directors approve it. Lewis T. Preston President Washington, D.C. August 10, 1992 -6- Schedule A& Page 1 of I ANGOLA TRANSPORT RECOVEYY PROJECT ProJeet Cost Estimtes Fo.elgn Percent Local Foreign Total Of Total Total I ROADS Road civil work 5.6 22.4 28.0 aox 43.1K Bridge structures 0 6 2.4 3.0 eox 4.6X Bridge work a.2 0.5 2.7 17X 4.2K Supervision of work 0.8 2.5 3.4 75X 5.2K Road studies 0.2 0.9 1.1 77X 1.7X Labor promotion 1.2 1.0 2.2 46X 3.4K Subtotal 10.7 29.6 40.4 73X 62.1X It LUANDA RAILWAY - Track rehabilitation 0.1 1.5 1.6 64X 2.5K - Other civit works 0.2 0.2 0.4 38X 0.6X - Equipot & spr. parts 0.3 2.? 3.0 91X 4.6X Technical Assistance 0.2 0.5 0.7 76X 1.1K subtotal 0.8 4.9 5.7 87X 8.8K III PORT OF LOBITO - eivillelectr. Works 0.4 1.8 2.2 846 3.4K - Equipmt & spr. parts 0.0 2.2 2.2 100K 3.4K design/supervision 0.0 0.4 0.4 96X 0.6X - Technical Assistance 0.3 1.3 1.6 80e 2.5S Subtotal 0.7 5.7 6.4 89e 9.9X IV STUDIES & COORDINATION Transport studies 0.3 0.8 1.1 73X 1.7K Technical Assistance 0.1 0.2 0.3 80e Project Coordination 0.0 0.7 0.7 100O 1.1X Subtotal 0.4 1.7 2.1 83X 3.2X V PPF 0.0 0.3 0.3 100X 0.5X VI Total Base Cost 12.5 42.3 54.9 77X 84.5X Physical contingencies 0.7 2.4 3.1 78X 4.8K Price contingencies(a) 1.6 5.4 7.0 77X 10.82 Total project cost 14.8 50.1 64.9 77X 100.02 (a) Price contingencies are based on estimated international inflation over the life of the project, averaging 3.9K p.s. as per recent IDA guidelines. Base costs include taxes on locally procured goods estiiated at US$1.3 miltion equivalent, financed entirely by Goverument. Financing Plan CM sitlion) Percnt Local Forenig Total Foreiln Total IDA Credit 0.2 40.8 41.0 99K 63X SIDA 0.0 3.3 3.3 100l 5K CCCE 0.0 3.0 3.0 100l 5K DANIDA 0.0 3.0 3.0 100 5X Government of Angola 14.6 0.0 14.6 OX 22Z Total Project 14.8 50.1 64.9 77K lOOX -7- Schiule 81 ANGOLA TRANSPORT RECOVERY }PROJCT Procuement Arangements (usS mllion) Percent of Project Elents ICB Le Other U. .F Total Total 1. Works 1.1 Road & bridges component 36.9 0.0 36.9 (27.9) (27.9) 62.91 1.2a Track rehabilitation 1.9 0.0 1.9 (1.2) (1.2) 2.8X 1.2b Other civil work for 0.5 0.0 0.5 railway component (0.2)(b) (0.2) 0.4X 1.3 Port component 2.5 2.5 2. Labor Promotion 2.1 Buitdings 0.6 0.6 (0.6) (0.6) .3X 2.2 Equipment; 0.2 0.2 (c) 0.4 (0.11 (0.1) (0.2) O.51 2.3 Technical assistance 0.8 (a) 0.8 (0.6) (0.6) 1.41 2.4 Operating expenditures 1.0 1.0 (salaries) 3. Materials 3.1 Bridges strct. for road 3.6 3.6 (2.9) (2.9) 6.5X 3.2 Bridges strct. for rail 0.3 0.3 (0.3) (0.3) 0.7X 3.3 Supplies, equip.& sp. parts 2.3 1.0 3.3 for railway (2.0) (1.0)(d) (3.0) 6.8% 3.4 EquipA sp. parts for port 2.5 2.5 4. Other consultancies 7.7 (a) 2.8 10.5 (7.2) (7.2) 16.2X 5. PPF 0.3 (a) 0.3 (0.3) (0.3) 0.7X Total 45.0 1.2 10.0 8.7 64.9 (34.3) (0.8) (9.2) (44.3) 100.01 ICB s Intoernatonal Competitive Bidding LCB : Local Competitive Bidding N.B.F. : Not Bank Financed Note : Figures in parentheses are the amounts financed by the IDA Credit and by the SIDA grant to be administrated by the Bank. (a) Services to be procured in accordance with World Bank Guidelines : Use of Consultants by World Bank Borrowers and by the World Sank as Executing Agency (b) Reconstruction of small bridges, embankbent and station building. (c) Local shopping (d) Limited internationat bidding for locomotive, spre parts, as there are only a few well known suppliers Rem: due to rounding, figures may not total exactly -8- Page 2 "f 2 ANGOLA TRANSPORT RECOVERY PROJECT Disbursements under IDA Credit (US$ million) Anurt aattr Category Atlocated to be Finw"ced Road and Bridge Rehabilitation Civil works 21.17 80X GOods 2.87 1002 of foreign expenditures and 702 of local experditures Consultants' services 3.4 100X Lobito Port Operations Rehabilitation Goods 0.14 100X of foreign expenditures and M-X of locat exzpenditures Consultants' services 0055 X of 0.69 Railw Rehabilitation Civil works 1.43 802 Coods 2.73 1002 of foreign expenditures 702 of local expenditures Consultants' services 0.55 1002 4.51 Insfftutionat &*Wt Consultants' services 0.82 1002 Studies 1.37 1002 2.19 PPF 0.30 Unallocated 5.86 Total 41.00 All disbursements will be fully documented. Estimated Disbursements (US$ million) FY93 FY94 FY95 FY96 Total Co-financing 2.2 4.7 2.1 0.4 9.3 IDA 9.3 20.8 9.3 1.6 41.0 Government 3.3 7.4 3.3 0.6 14.6 Total 14.7 33.0 14.6 2.6 64.9 Percent 232 51X 232 42 1002 IDA Cuautative 9.3 30.1 39.4 41.0 Percent of Total 232 73% 962 1002 -.9- Schdule C Page I of 1 ANGOLA TRANbPORT RECOVERY PROJECT Timetable of Key Project Processing Events 1. Time taken to prepare: 7 months 2. Prepared by: Govemment with assistance from the Bank, SIDA, CCCE, France and Portugal. 3. First IDA mission: Identification, October 1991 4. Appraisal mission: February 1992 S. Negotiations: May 1992 6. Planned Effectiveness: December 1992 Bank Priect appraisal team included: Messrs J.J. Raoul (Task Manager/Sr. Highway Engineer), B. Bostrom (Sr. Economist), A. Garaud (Engineer, Consultant), A. Jouron (Research Assistant), S. KarIsson (Port Engineer), Y.P. Kedia (Railway Engineer), Ph. de Naurois (Financial Analyst), P. Taborga (Sr. Economist), P. Vandenheede (Disbursement Officer) and Mme T. Genta-Fons (Lawyer). Peer Reviewers were: Messrs. B. Chatelin (Sr. Economist). C. Alvarez (Transport Engineer), and Louis Thompson (Railway Advisor). Division Chief: Mr. Marc Blanc. Department Director: Mr. F. Aguirre-Sacasa. - 10 - chiedulen Page 1 of 2 ANGOLA TRANSPORT RECOVERY PROJECr U_&MU OF DAMK GROUP OPERATIONS IN AGL A. STATEMENT OF BANK LOA IS AND - ITS Juie 30, 1992 Amount f1n USS mf'lE0 Loan or (teas cantelltion) Credit Fiscal umbe r Brror PurosgB IgO DA (1) U ndfa Cr. 2274 91 ANGOLA Ecnoic Mgmt.Cap.Sldg. 23.00 23.73 Cr. 2289 92 ANGOUL Infrastructure Rehab.Eng. 37.70 38.24 Cr. 2326 92 ANMGLA Lobito Benguela Urb. Emw. Rehab.(2) 45.58 47.91 Cr. 2375 92 ANOLA Education I. (2) 27.10 28.37 Cr. 2385 93 ANGOLA Atgola Pouer Sctor Rahb. (2) J im.2 Sub-Total active projects: 166.88 173.18 Total less cancellations: 0.00 166.88 of uhich has been repaid 0.00 0.0 Totat held by Bank and IDA: 0.00 166.88 (1) Total urdisbursed: 0.00 173.18 (1) The sum of total undisbursed is higher than total due Dank and IDA because of depreciation of the USS. (2) Became effective on February 20, 1992. (3) Not yet effective. S. STATEMENT Of IFC INVESTENTS No IFC investments to date. - 11 - ScheduleD Page 2 of 2 C. BANK GQ&JJP'S INMTIAL EXPERIENCE 1. Angola joined the Bank, IFC and MIGA in September 1989. The Barl s initial approawh has been to nuirture trust between Angola and the Bank so as to develop wue type of mature partnership that the Bank has with other Borrowers; to help strengthen the coutry's weak institutions; to assist in the rehabilitation and reconstruction of infrastructure by carying out pre- investment studies aimed at addressing evident, high-prionty bottlen.cks; and, finally, to initiate a dialogue on policy reform priorities and reconstruction needs. IDA lending to Angola in FY91- 92 was planned before the political and economic policy breakthroughs of 1991 and 1992, and in the context of a "start-up' IDA assistance program of limited scope, with emphasis on capacity building, along with preparation work for high-priority projects for rehabilitation of physical and social infrastructure. Concurrendy, the Bank began an active economic and sector work program to build knowledge of the economy and identify the main policy reform priorities. The projects approved in FY91-92 consist of a Credit for Economic Management and Capacity Buildin:,, an Infrastructure Rehabilitation Engineering Project, an Urban Environment Project for the Lobito- Benguela area (the second largest urban area in Angola), an Education Project, and a Power Rehabilitation Project. 2. The Economic Management and Capacity Building Credit became effective in December 1992. It was off to a slow start, partly because of inexperience and lack of familiarity with Bank procedures and pardy because of objective difficulties in the working environment and logistic supports. The project is now staffed with a good team of competent and dedicated professionals; the office is reasonably well organized; satisfactory work procedures have been established; and implementation is underway. Some key components, notably human resource development, are on target, while others, such as the studies on economic liberalization, are just starting. Credit disbursements are about five months behind appraisal projections, but are expected to accelerate in the first half of 1993 after several large contracts are signed. The Infrastructure Rehabilitation * Engineering Credit became effective in February 1992, and implementationhas been satisfactory though disbursements are about three months behind schedule because of delays in processing payments and disbursement applications. 3. Project implementation will receive the attention that the Borrower's relative inexperience and institutional weakness require. Consequently, in order to build the implementation capacity of this Borrower who is relatively unfamiliar with Bank procedures, and to help ensure that operations get off to a good start, the allocation of resources for supervision planned for PY93-95 is about 30% higher than the regional average. Country procurement assessment and training wil be given high priority. The first Country hnplementation Review (CIR) is planned for 1993. The Bank's Resident Mission, which is in the process of being established, is expected to make a major contribution in project implementation and supervision. S MAP SECTION I I8RD 235"R OABON / ANGOLA ZA L ^ TRANSPORT RECOVERY PROJECT lemAAAY PJECEP t COMPONENTS: o SELCTE TOWNS All< ttk ) ANGOLA LJO A (j) R CAPTALS oce -IA a-COND PCOUY ROADS9 NANONA CAP 1 1 J L 1 1 - W~~~~~~~~~~~~~~~~~~~~~~~~~~~AIN ROAD11 . _ALWAYS TO810 RENABILUI --4 3IbYWAYS ROADS IN 0000 ONOON, 4 FRT # . 0 nom~~~~~~~~~~~~~~~~~~~OU + AR¢RTS 7 > 12 j S - 16 BRM0 T REBILTTDW r P_ FROVINCE BOUNOARES - fINTERTIWONAL BOUNO-JES C Q gI t l« Q 10 : 200 300 ZAI ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~24 104mo~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ \\ < 7 ~~~~~~UIGE ZAIRE 1,0 NAJv'JBWA 04d i h ATUbmC ~~~~~CUANZA NORT o7 TMWol AAtMC HIAr a t rew_ NAMIBIA ,4, -5--~~~~~~~BI NMEte e2* ; It~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~e HUIL