ICRR 10054
                                                                                               Report Number : ICRR10054
                    ICR Review
                    Operations Evaluation Department




1. Project Data :
             OEDID :
             OEDID:     C2065
         Project ID :   P001770
      Project Name :    Beira Transport Corridor Project
            Country :   Mozambique
             Sector :   Other Transportation
       L/C Number :     C2065-MOZ
  Partners involved :   CIDA, OECF, Spain
       Prepared by :    Binyam Reja, OEDST
      Reviewed by : Hernan Levy
    Group Manager : Roger H. Slade
       Date Posted : 06/04/1998

2. Project Objectives, Financing, Costs and Components :
Objectives : The primary objective of the project was to assist the Government of Mozambique to rehabilitate and
upgrade the Beira Transport Corridor in order to restore its cost efficient transit functions . The secondary objectives
were to: (i) help the Government achieve its objective of providing cheap transport for the agricultural, productive
areas along the Beira Corridor, and (ii) facilitate capacity building by developing semi -skilled, skilled, and managerial
staff with a view to gradually replacing the technical assistance program, and introduce effective financial
management in the Mozambique Central Railways (CFM(C)).
Components : (a) Capacity building, (b) Removing operational capacity constraints, and (c) Improving financial
performance.
Cost:
Cost : Total project cost: Appraisal, US$ 74 million; Actual, US$ 64 million. IDA Credit: US$ 40 million, of which 9.8
million is canceled. Co-financed by Canada, Japan, and Spain .

3. Achievement of Relevant Objectives :
The project achieved its primary and secondary objectives . The Corridor was rehabilitated and upgraded and its
transit functions have been largely restored . Small farmers and herders along the Corridor also benefited from the
rehabilitation. The objective of developing local semi -skilled, skilled and managerial capacities was also substantial
achieved. The training program was successfully carried out and at project closing all expatriate technical
assistance experts have been replaced by local staff .

4. Significant Achievements :
The project substantially achieved its institutional development and public sector management objectives by
undertaking focused and well -designed measures including organizational restructuring, training, staged technical
assistance program, and upgrading of operating and management system . These measures greatly increased the
institutional capacity of the targeted agencies and the technical skills of the railway and port staff .

5. Significant Shortcomings :
The project came short of achieving (i) the staff rationalization program as planned, in part due to the demobilization
of the armies that followed the peace agreement, and (ii) fully delegating power from CFM headquarters in Maputo to
CFM(C) office in Beira.


6. Ratings :             ICR                       OED Review                Reason for Disagreement /Comments
               Outcome : Satisfactory              Satisfactory
     Institutional Dev .: Substantial              Substantial
         Sustainability : Likely                   Uncertain                 (i) the railways have inadequate capacity
                                                                             to maintain locomotives and derailments
                                                                             have been increasing, (ii) the Port of Beira
                                                                             has not yet been able to attract large
                                                                             percentage of neighboring countries'
                                                                           international traffic of goods, and (iii)
                                                                           future donor and private sector
                                                                           participation in the Corridor is uncertain .

   Bank Performance : Satisfactory                Satisfactory
      Borrower Perf .: Satisfactory               Satisfactory
       Quality of ICR :                           Satisfactory


7. Lessons of Broad Applicability :
The key lesson from this project is that institutional development through multi -pronged measures are likely to be
more effective if they are well sequenced and adapt to changing circumstances .

8. Audit Recommended?        Yes      No

9. Comments on Quality of ICR :
The ICR is of satisfactory quality and covers all aspects of project implementation experience and achievement of
objectives. It exercised fair judgment and identified useful lessons .