Document of The World Bank FOR OFFICIAL USE ONLY Report No: PAD2478 INTERNATIONAL DEVELOPMENT ASSOCIATION PROJECT APPRAISAL DOCUMENT ON A PROPOSED CREDIT IN THE AMOUNT OF EUR 13.4 MILLION (US$15.0 MILLION EQUIVALENT) TO THE REPUBLIC OF GUINEA-BISSAU FOR THE RURAL TRANSPORT PROJECT June 10, 2019 Transport Global Practice Africa Region This document is being made publicly available prior to Board consideration. This does not imply a presumed outcome. This document may be updated following Board consideration and the updated document will be made publicly available in accordance with the Bank’s policy on Access to Information. CURRENCY EQUIVALENTS (Exchange Rate Effective March 31, 2019) Currency Unit = FCFA FCFA 580 = US$1 EUR0.89099 = US$1 FISCAL YEAR January 1 - December 31 Regional Vice President: Hafez M. H. Ghanem Country Director: Louise J. Cord Senior Global Practice Director: Guangzhe Chen Practice Manager: Aurelio Menendez Task Team Leader: Vincent Vesin ABBREVIATIONS AND ACRONYMS AAAC Autoridade de Avaliação Ambiental Competente (Environmental Impact Evaluation Authority) AfDB African Development Bank BP Bank Procedure C-ESMP Contractor’s Environmental and Social Management Plan CEDAW Convention on the Elimination of All Forms of Discrimination against Women CERC Contingent Emergency Response Component CoC Code of Conduct CPF Country Partnership Framework ESHS Environmental, Social, Health and Safety ESIA Environmental and Social Impact Assessment ESMF Environmental and Social Management Framework ESMP Environmental and Social Management Plan DA Designated Account Direcção Geral das Infraestruturas de Transporte DGIT (Directorate General of Transport Infrastructure) Direcção Geral de Viação e Transportes Terrestres DGVTT (Directorate General of Traffic and Land Transport) EU European Union FM Financial Management FY Fiscal Year GBV Gender-based Violence GRM Grievance Redress Mechanism IBRD International Bank for Reconstruction and Development IDA International Development Association IFAD International Fund for Agricultural Development Inquêrito Ligeiro de Avaliação da Pobreza ILAP (Poverty Assessment Survey) IPF Investment Project Financing IRM Immediate Response Mechanism M&E Monitoring and Evaluation NGO Non-governmental organization OHS Occupational Health and Safety OP Operational Policy PDO Project Development Objective PIM Project Implementation Manual PMU Project Management Unit PPA Project Preparation Advance PPSD Project Procurement Strategy for Development RAP Resettlement Action Plan Rede Nacional de Luta Contra Violência baseada no Gênero e Criança RENLUV (National Network to Fight Gender-Based Violence and Violence Against Children) RPF Resettlement Policy Framework SCD Systematic Country Diagnostic SDR Special Drawing Rights SEA Sexual Exploitation and Abuse STEP Systematic Tracking of Exchanges in Procurement TA Technical Assistance UN United Nations UNDP United Nations Development Programme UNFPA United Nations Population Fund UNICEF United Nations Children’s Fund US$ United States Dollars WADB West African Development Bank WB World Bank The World Bank Guinea-Bissau - Rural Transport Project (P161923) BASIC INFORMATION BASIC_INFO_TABLE Country(ies) Project Name Guinea-Bissau Guinea-Bissau - Rural Transport Project Project ID Financing Instrument Environmental Assessment Category Investment Project P161923 B-Partial Assessment Financing Financing & Implementation Modalities [ ] Multiphase Programmatic Approach (MPA) [✓] Contingent Emergency Response Component (CERC) [ ] Series of Projects (SOP) [✓] Fragile State(s) [ ] Disbursement-linked Indicators (DLIs) [ ] Small State(s) [ ] Financial Intermediaries (FI) [ ] Fragile within a non-fragile Country [ ] Project-Based Guarantee [ ] Conflict [ ] Deferred Drawdown [ ] Responding to Natural or Man-made Disaster [ ] Alternate Procurement Arrangements (APA) Expected Approval Date Expected Closing Date 01-Jul-2019 15-May-2025 Bank/IFC Collaboration No Proposed Development Objective(s) The development objective is to improve the rural population's physical access to markets and social services in selected areas. Components Component Name Cost (US$, millions) Transport infrastructure improvement to enhance mobility in selected areas 10.00 Support to transport sector institutions 2.80 Page 1 of 65 The World Bank Guinea-Bissau - Rural Transport Project (P161923) Operationnal support 2.20 Contingent Emergency Response 0.00 Organizations Borrower: Ministry of Economy and Finance Implementing Agency: Ministry of Public Works, Construction and Urbanism PROJECT FINANCING DATA (US$, Millions) SUMMARY -NewFin1 Total Project Cost 15.00 Total Financing 15.00 of which IBRD/IDA 15.00 Financing Gap 0.00 DETAILS -NewFinEnh1 World Bank Group Financing International Development Association (IDA) 15.00 IDA Credit 15.00 IDA Resources (in US$, Millions) Credit Amount Grant Amount Guarantee Amount Total Amount National PBA 15.00 0.00 0.00 15.00 Total 15.00 0.00 0.00 15.00 Expected Disbursements (in US$, Millions) WB Fiscal Year 2019 2020 2021 2022 2023 2024 2025 Annual 0.00 0.56 0.97 2.09 3.60 4.29 3.49 Cumulative 0.00 0.56 1.53 3.63 7.22 11.51 15.00 Page 2 of 65 The World Bank Guinea-Bissau - Rural Transport Project (P161923) INSTITUTIONAL DATA Practice Area (Lead) Contributing Practice Areas Transport Climate Change and Disaster Screening This operation has been screened for short and long-term climate change and disaster risks Gender Tag Does the project plan to undertake any of the following? a. Analysis to identify Project-relevant gaps between males and females, especially in light of Yes country gaps identified through SCD and CPF b. Specific action(s) to address the gender gaps identified in (a) and/or to improve women or Yes men's empowerment c. Include Indicators in results framework to monitor outcomes from actions identified in (b) Yes SYSTEMATIC OPERATIONS RISK-RATING TOOL (SORT) Risk Category Rating 1. Political and Governance ⚫ High 2. Macroeconomic ⚫ Substantial 3. Sector Strategies and Policies ⚫ Substantial 4. Technical Design of Project or Program ⚫ Moderate 5. Institutional Capacity for Implementation and Sustainability ⚫ High 6. Fiduciary ⚫ High 7. Environment and Social ⚫ Substantial 8. Stakeholders ⚫ Moderate 9. Other 10. Overall ⚫ High Page 3 of 65 The World Bank Guinea-Bissau - Rural Transport Project (P161923) COMPLIANCE Policy Does the project depart from the CPF in content or in other significant respects? [ ] Yes [✓] No Does the project require any waivers of Bank policies? [ ] Yes [✓] No Safeguard Policies Triggered by the Project Yes No Environmental Assessment OP/BP 4.01 ✔ Performance Standards for Private Sector Activities OP/BP 4.03 ✔ Natural Habitats OP/BP 4.04 ✔ Forests OP/BP 4.36 ✔ Pest Management OP 4.09 ✔ Physical Cultural Resources OP/BP 4.11 ✔ Indigenous Peoples OP/BP 4.10 ✔ Involuntary Resettlement OP/BP 4.12 ✔ Safety of Dams OP/BP 4.37 ✔ Projects on International Waterways OP/BP 7.50 ✔ Projects in Disputed Areas OP/BP 7.60 ✔ Legal Covenants Sections and Description Section I.A.1 (a) of Schedule 2: The Borrower, through the Ministry of Public Works, Construction and Urbanism, shall […] (ii) no later than three (3) months after the Effective Date, or such other date as agreed by the Association (but prior to making any payment under Part 3(b) of the Project), select and hire/appoint and thereafter maintain an internal auditor, under terms of reference acceptable to the Association and described in the PIM; Sections and Description Section I.A.1 (a) of Schedule 2: The Borrower, through the Ministry of Public Works, Construction and Urbanism, shall […] (iii) no later than six (6) months after the Effective Date, or such other date as agreed by the Association, select and hire an external Page 4 of 65 The World Bank Guinea-Bissau - Rural Transport Project (P161923) financial auditor under terms of reference acceptable to the Association and described in the PIM. Sections and Description Section I.A.1(b) of Schedule 2: The Borrower, through the Ministry of Public Works, Construction and Urbanism, shall […] no later than three (3) months after the Effective Date, or such other date as agreed by the Association, establish, and thereafter maintain throughout Project implementation, the Project Steering Committee with composition acceptable to the Association and defined in the PIM, to provide strategic guidance and oversight of the Project. Sections and Description Section I.A.4 of Schedule 2: The Recipient shall no later than six (6) months after the Effective Date, or such later date as agreed by the Association, establish and thereafter maintain, throughout Project implementation, a grievance redress mechanism acceptable to the Association so as to enable an adequate monitoring of the issues arising as a result of the implementation of the Project activities. Sections and Description Section I.C.1 of Schedule 2: The Recipient shall ensure that the Project is implemented in accordance with the Environmental and Social Management Framework (ESMF), the Resettlement Policy Framework (RPF), the ESIA/ESMP and the RAP. Except as otherwise agreed by the Association, the Recipient shall not amend, abrogate, waive, or fail to enforce the ESMF, the RPF, the ESIA/ESMP, the RAP, or any of their provisions. Conditions Type Description Effectiveness The Project Implementation Manual has been adopted. Type Description Disbursement Under Category (2), for Emergency Expenditures under Part 4 of the Project, unless and until the Association is satisfied, and has notified the Recipient of its satisfaction, that all of the following conditions have been met in respect of said Emergency Expenditures: (i) the Recipient has determined that an Eligible Emergency has occurred, has furnished to the Association a request to include said Eligible Emergency under Part 4 of the Project in order to respond to said Eligible Emergency, and the Association has agreed with such determination, accepted said request and notified the Recipient thereof; (ii) the Recipient has prepared and disclosed all safeguards instruments required for said Eligible Emergency, and the Recipient has implemented any actions which are required to be taken under said instruments, all in accordance with the provisions of Section I.C of this Schedule; Page 5 of 65 The World Bank Guinea-Bissau - Rural Transport Project (P161923) (iii) the Coordinating Authority has adequate staff and resources, in accordance with the provisions of Section I.B.1(b) of this Schedule, for the purposes of said activities; and (iv) the Recipient has adopted the Emergency Response Operational Manual in form, substance and manner acceptable to the Association and the provisions of the Emergency Response Operational Manual are fully current in accordance with the provisions of Section I.B of this Schedule, so as to be appropriate for the inclusion and implementation of Part 4 of the Project. Page 6 of 65 The World Bank Guinea-Bissau - Rural Transport Project (P161923) GUINEA-BISSAU GUINEA-BISSAU - RURAL TRANSPORT PROJECT TABLE OF CONTENTS I. STRATEGIC CONTEXT ...................................................................................................... 9 A. Country Context ................................................................................................................. 9 B. Sectoral and Institutional Context ................................................................................... 10 C. Relevance to Higher Level Objectives .............................................................................. 12 II. PROJECT DESCRIPTION.................................................................................................. 12 A. Project Development Objective (PDO) ............................................................................ 12 B. Project Beneficiaries ......................................................................................................... 13 C. PDO-Level Results Indicators ........................................................................................... 14 D. Theory of Change ............................................................................................................. 14 E. Project Components ......................................................................................................... 15 F. Project Cost and Financing ............................................................................................... 18 H. Lessons Learned and Reflected in the Project Design .................................................... 19 III. IMPLEMENTATION ARRANGEMENTS ............................................................................ 20 A. Institutional and Implementation Arrangements ........................................................... 20 B. Results Monitoring and Evaluation ................................................................................. 21 C. Sustainability .................................................................................................................... 21 IV. APPRAISAL SUMMARY .................................................................................................. 21 A. Economic Analysis ............................................................................................................ 21 B. Technical Analysis ............................................................................................................. 24 C. Financial Management ..................................................................................................... 25 D. Procurement ..................................................................................................................... 26 E. Environment (including Safeguards) ................................................................................ 26 F. Social (including Safeguards) ............................................................................................ 26 G. World Bank Grievance Redress ....................................................................................... 30 V. KEY RISKS ..................................................................................................................... 31 A. Overall Risk Rating and Explanation of Key Risks ........................................................... 31 VI. RESULTS FRAMEWORK AND MONITORING ..................................................................... 33 ANNEX 1: IMPLEMENTATION ARRANGEMENTS AND SUPPORT PLAN ................................... 39 Page 7 of 65 The World Bank Guinea-Bissau - Rural Transport Project (P161923) ANNEX 2: MITIGATING AND RESPONDING TO GBV, INCLUDING SEA..................................... 48 ANNEX 3: MAPS................................................................................................................... 60 Page 8 of 65 The World Bank Guinea-Bissau - Rural Transport Project (P161923) I. STRATEGIC CONTEXT A. Country Context 1. Guinea-Bissau is a small country in West Africa with a surface area of 36,000 km2 and a population of about 1.8 million. It is one of the least developed countries in the world. It has faced political instability and developmental outcomes remain poor. Almost 70 percent of the population was poor in 2010 and about 33 percent lived in extreme poverty, surviving on under US$1 equivalent per adult t per day (national extreme poverty line).1 Its gross national income per capita is about US$600 (Atlas method 2016), the life expectancy at birth is about 55 years, while the adult literacy rate is about 57 percent. The country ranks 177th out of 189 countries in the 2018 Human Development Index. 2. Guinea-Bissau’s economy remains predominantly rural. Small-holder traditional agriculture accounts for about 40 percent of gross domestic product and employs about 80 percent of the labor force. The agricultural sector consists mostly of subsistence farming using manual labor. The economy relies heavily on the production of cashew nuts, which provide the main cash income for about two-thirds of households and constitutes 85 percent of the country’s exports by value. 3. The delivery of essential public goods, including basic all-weather transport infrastructure, by the Government of Guinea-Bissau remains limited due to its low capacity and constrained budget resources. Public spending related to education, health, water, or roads is almost exclusively expended on salaries, with little or no resources devoted to the rehabilitation of existing or the construction of new infrastructure. 4. The standard of living in rural areas (50 percent of the population) is considerably lower than in the capital Bissau (21 percent of the population). This is a reflection of the lower rural human capital and low agricultural productivity.2 As a result, poverty rates in 2010 were substantially higher in rural Guinea- Bissau than in the capital. The difference in poverty rates between rural and urban areas widened over the 2002-2010 period, with access to markets, credit, agricultural inputs, essential social services and infrastructure remaining a key constraint for the socio-economic development of the increasingly impoverished rural population. 5. Guinea-Bissau is one of the most socio-economically fragile countries in the world. Although the country is endowed with fertile soil, high rainfall, and mineral resources, continued bouts of political instability have seriously held back its economic development. Elections for a new president took place in mid-2014 and created a window of opportunity to re-launch socio-economic development. The Government of Guinea-Bissau drew up a poverty reduction strategy, called Terra Ranka (2015 to 2025), which received the support of international donors in early 2015. Despite continued political instability, successive governments have all endorsed this strategy. 6. Guinea-Bissau also faces high risk of natural hazards aggravated by climate change. Guinea- Bissau is mostly flat, averaging 30 meters above sea level, with an intricate coastline and a dense system 1 Poverty numbers are based on the 2010 poverty assessment survey (Inquêrito Ligeiro de Avaliação da Pobreza, ILAP), which is the last available household survey. 2 World Bank SCD, 2016, Report No. 106725-GB. Page 9 of 65 The World Bank Guinea-Bissau - Rural Transport Project (P161923) of estuaries and rivers. This topography, associated with tropical weather and socio-economic vulnerability, puts Guinea-Bissau at high risk for natural hazards, which are likely to worsen with climate change. Flooding is a recurring natural hazard in Guinea-Bissau, and it has affected more than 60,000 people in the past fifteen years mainly in the eastern regions of the country (Bafata and Gabu). Additionally, coastal erosion is a major environmental problem, especially in northwestern Guinea Bissau, with devastating impacts on ecosystems, farmlands, and infrastructure. Projected heavier rainfall events in the future along with higher tides from a rising sea level will continue to impact the coast and increase the high risk to floods.3 B. Sectoral and Institutional Context Sectoral context 7. Guinea-Bissau’s transport system remains under-developed for the needs of the country. It consists of: (a) 2,700 km of poorly maintained classified roads, of which only 800 km are paved; (b) an unknown number of unclassified unpaved feeder roads; (c) a deep-water port at Bissau; (d) an international airport located at Bissau; and (e) unknown number of small river wharves and coastal ports. Regarding road maintenance, the country has established a Road Maintenance Fund (Fundo de Conservação Rodoviária) since 2009 on the principles of a second-generation fund. The revenues generated by the fund (about US$3.3 million in 2015) are low in comparison to the size of the network. Revenue collection seems problematic as, unlike in neighboring countries, revenues come mainly from tolls, whereas the road user charges (fuel levy) contribute less than 30 percent. Besides, only an average of 50 percent of the fund’s revenues are spent on road maintenance because of high operating costs. Also, there is very limited routine maintenance, as most of the funds are being used for emergency interventions (repairs of existing cut-off points). 8. The poor state of transport infrastructure hinders the country’s socio-economic development. Especially in rural areas, where the majority of the poor live, basic mobility needs of the population are largely unmet. Existing road infrastructure allows acceptable mobility only on the paved road network connecting the main urban areas, and to a lesser extent, within the urban area of Bissau. Conversely, in rural areas served by unpaved roads, mobility is severely reduced by the poor condition of the road network, parts of which have not been maintained in decades. Furthermore, inland water transport, which could serve as an alternate mode of transport in many areas, is also hampered by the poor condition of the river wharves used as loading and unloading facilities. 9. Vulnerability of transport infrastructure to natural hazards is high. This is due to its poor condition and high exposure to floods and costal erosion worsened by the projected increase in precipitation and rise in sea level. The combination of high vulnerability and exposure to floods results in frequent and severe disruption of rural mobility. More specifically, each year during the five-month rainy season (from June to October), a large part of the rural road network becomes impassable for motorized vehicles and in some cases even for non-motorized vehicles, leaving a significant portion of the rural 3 By the end of the 21st century, many climate models project mean precipitation over West Africa to increase during the rainy season with a small delay in the start of the rainy season and a slight increase in the number of days with extreme rain. Sea level is projected to rise throughout the 21st century and increase by 0.4 m (low emissions scenario, RCP2.6) to 0.7 m (high emissions scenario, RCP8.5) by 2100. http://sdwebx.worldbank.org/climateportalb/home.cfm?page=country_profile&CCode=GNB&ThisTab=Overview Page 10 of 65 The World Bank Guinea-Bissau - Rural Transport Project (P161923) population isolated from the rest of the country. This means that large swathes of the rural population can only move on foot during the rainy season, thereby severely limiting their access to markets, tube wells, schools, health centers, and other social services. Loss of access to services and disruption of rural mobility may become more frequent in the future owing to the projected increase in precipitation. 10. Poor quality of rural transport network reduces production and productivity of agricultural sector. The poor quality of the rural road network in Guinea Bissau results in significant wastage of agricultural produce en-route to markets, and so reduces its cash value for farmers. Another important impact of poor rural road access is on transport costs. The reason is that, in agricultural supply chains, the ton-km costs of moving produce on unimproved or poorly maintained roads can be two to three times higher than for subsequent movements on improved or well-maintained roads.4 11. Furthermore, bad road connectivity in rural areas limits the ability of rural households to transport in a timely fashion agricultural production, to benefit from higher prices when demand is high, and to diversify away from cashew nut production. More specifically, households with easier access to a local market or public transit were less poor on average than households with difficult access. Overall, households within short commutes to markets have better diversified sources of income.5 12. Finally, surveys in Guinea-Bissau consistently point out that better transport infrastructure is essential for women to save time, be more productive, and to provide relief to their physical burdens. 6 In addition, the poor condition of roads in rural areas hamper the access of women to health care, and thereby contribute to the country’s very high ratio of maternal mortality (549 deaths per 100,000 live births in 2015). Furthermore, long distance commutes to school appears to be a critical barrier for girls to attend school in Guinea-Bissau. Institutional context 13. The Ministry of Public Works, Construction and Urbanism is responsible for planning, promoting, regulating, controlling and coordinating activities contributing to the development of all transport modes. It is also responsible for road transport infrastructure. The ministry includes: (a) five general directorates; (b) eleven technical directorates; (c) three autonomous directions; and (d) three other organizations under its authority. The Directorate General of Transport Infrastructure (Direcção Geral das Infraestruturas de Transporte - DGIT) is responsible for strategically and operationally managing all road infrastructure and river ferries. 14. The Ministry of Transport and Telecommunication is responsible for formulating, proposing, coordinating and executing government policy in the fields of inland transport, shipping and air and maritime security, mail, telecommunications and meteorology. The ministry includes a general secretariat and a Directorate General of Traffic and Land Transport (Direcção Geral de Viação e Transportes Terrestres - DGVTT) and oversees eleven bodies.7 4 Sustainable Mobility for All, Global Mobility Report 2017. 5 World Bank SCD, 2016, Report No. 106725-GB. 6 Country Gender Profile: Guinea-Bissau, AfDB, 2015. 7 The Telecommunications Regulatory Authority; the Port Maritime Institute; the National Institute of Meteorology; the Civil Aviation Agency of Guinea-Bissau; the National Chargers Council; the Port Authority of Guinea-Bissau; Guiné Telecom; Guinétel; the Post Office of Guinea-Bissau; the Maritime Transport Society; and the Airport Assistance Service. Page 11 of 65 The World Bank Guinea-Bissau - Rural Transport Project (P161923) C. Relevance to Higher Level Objectives 15. The Government’s strategy Terra Ranka (2014) acknowledges that the development of transport infrastructure, especially roads, should be a priority. The reason is that an efficient transport and logistics system is critical to support the four engines of economic development identified by the strategy - agriculture/agribusiness, fishing, mining, and tourism. The strategy is also consistent with the World Bank’s 2015 Country Economic Memorandum for Guinea-Bissau, which highlights the following: “Farmers report considerable constraints in marketing their goods, especially during the rainy season when roads are flooded or even washed away. Secondary and tertiary roads are in particularly bad condition, yet these are the roads which tend to be most important for the poorest populations. Rural access roads require considerable rehabilitation work to connect producers with markets, increasing the gains from exports, in the case of cashews, and improving competitiveness with imports for domestic rice.” 16. In 2016, the World Bank’s Systematic Country Diagnostic8 (SCD) confirmed that poor transport infrastructure remains one of the main constraints to accelerate inclusive and sustainable growth in the country. The diagnostic informed the Country Partnership Framework9 (CPF) for the period FY18-FY21 endorsed by the World Bank Board of Directors on June 13, 2017. The framework proposes a selective program of investments focused on: (a) increased access to quality basic services; and (b) expanded economic opportunities and enhanced resilience. The proposed project is consistent with this framework by supporting: (a) increased access to and quality of primary education, maternal and child services; (b) expanded economic opportunities and resilience; and (c) improved logistics for market access. 17. Several activities proposed under this project aim to enhance the resilience of the transport sector to the impacts of climate change, namely increased extent and frequency of river and coastal flooding, as well as coastal erosion associated with more frequent and intense periods of heavy rainfall, sea-level rise, and higher storm surges. The project aims in particular to avoid the loss of access to social services by the rural population and to reduce the risk of disrupted transport of agricultural products to markets during the rainy season. II. PROJECT DESCRIPTION A. Project Development Objective (PDO) 18. The project development objective is to improve the rural population’s physical access to markets and social services in selected areas. 19. Project impact area. The proposed project impact area covers the north of the country in the regions of Cacheu and Oio (see maps 1 to 6 in Annex 3). It has been selected for the following reasons: • Complementarity with interventions of other development partners in the road sector. The European Union (EU) and the International Fund for Agricultural Development (IFAD) focus on the improvement of rural roads in the south of the country (regions of Tombali and Quinara). The West African Development Bank (WADB) finances improvement of urban roads in Bissau and plans to 8 Report No. 106725. 9 Report No. 114815. Page 12 of 65 The World Bank Guinea-Bissau - Rural Transport Project (P161923) improve roads in the west of the country. The Government of China may start financing road improvements in the east (region of Gabú). This means that the proposed project focuses on an area not currently covered by any other development partner. • Cross-sectoral synergies with other World Bank funded projects in the project impact area. The project aims to complement other World Bank projects in the area such as the Rural Community- Driven Development Project (P090712), which has recently financed the construction of several wells and schools in this area. Another project in the area is the Private Sector Rehabilitation and Agribusiness Development Project (P127209), which has provided support to a cashew processing factory, as well as warehouse facilities and farmers capacity building efforts in the project impact area. In addition, three other projects intervene in the regions of Cacheu and Oio in the sectors of health, education, and social protection: Strengthening Maternal and Child Health Service Delivery Project (P163954), Quality Education for All Project (P160678), and Safety Nets and Basic Services Project (P163901). The proposed project is also expected to use the same participatory approach to select feeder roads for funding as was developed under the Rural Community-Driven Development Project to determine the infrastructure priority needs of the local population. • Integration with regional transport corridor. The proposed project area is located along the border with Senegal and the trunk road to be rehabilitated by the project connects with the paved road going from Bissau to Ziguinchor (Senegal), which is currently the main transport corridor linking Guinea-Bissau and Senegal. • High population density. The proposed project impact area has a population density above average since Cacheu and Oio are respectively the third and second most densely populated regions of the country. The populations of Cacheu and Oio were 193,000 and 225,000 respectively in 2009. • High poverty rates. The regions of Cacheu and Oio, with poverty rates of 80.5 and 73.2 percent respectively, are among the poorest in the country.10 • Chronic food insecurity. The regions of Cacheu and Oio are also among the regions suffering most from food insecurity.11 • Agricultural production and potential. The proposed project area is one of the most productive agricultural areas of the country, with cashew nuts and rice accounting for 65 percent of the total agricultural production value. Furthermore, the proposed project area has the agro-ecological potential for producing other higher value crops to diversify the agricultural sector. B. Project Beneficiaries 20. The proposed project is expected to directly benefit about 30,000 people in the targeted rural areas living within 2 km of the roads to be improved. Indirect beneficiaries are users of social services and markets located in the project impact area. 10 World Bank SCD, 2016. 11 World Food Program, 2016. Page 13 of 65 The World Bank Guinea-Bissau - Rural Transport Project (P161923) 21. The project beneficiaries are mostly farmers engaged in subsistence agriculture who occasionally sell any agricultural surplus. Most households are also involved in livestock raising (cattle, sheep, and goats), and fishing in the Farim area is practiced by one third of households. Some women in the project impact area are engaged in salt harvesting during the dry season. Other beneficiaries are households engaged in commercial farming, and particularly in the production of cashews and peanuts. The project impact area is one of the most important regions in the country for growing cashews, peanuts, casava, and beans, which are the main cash crops for the country. C. PDO-Level Results Indicators 22. Achievement of the project development objective will be assessed through the following PDO indicators: 1) Number of markets accessible all year by road; 2) Number of schools and health centers accessible all year by road; 3) Number of direct beneficiaries; D. Theory of Change 23. The proposed project activities will focus on civil works in the north of the country (Cacheu and Oio regions) and on technical assistance. The proposed civil works aim to improve about 110 km of road infrastructure to enhance mobility in rural areas. Technical assistance will enhance the capacity of the Government of Guinea-Bissau to more effectively manage transport infrastructure investments, road maintenance, road safety, and develop a national plan for transport and logistics. 24. The theory of change for the proposed project is described in the figure below. Page 14 of 65 The World Bank Guinea-Bissau - Rural Transport Project (P161923) Figure 1: Theory of Change Problem statement: poor physical access to markets and social services hinders the socio-economic development of the rural population. Components Activities Outputs PDO Outcomes Long Term Outcomes Availability and good performance of construction firm Government implements road 110 kilometers of maintenance programs improved trunk and Component 1: Rehabilitation feeder roads in Transport of rural trunk rural areas infrastructure and feeder improvement roads Increased (US$10.0 million) access to primary education, National maternal and Improved physical strategy for road child services access to markets and TA on road maintenance social services for the maintenance prepared Expanded rural population in & safety economic selected areas opportunities and resilience Component 2: Improved Support to logistics for transport sector National plan for market access institutions transport and TA to develop (US$2.8 million) logistics a National Plan prepared for Transport and Logistics PMU will function autonomously and without political interference Low political instability Critical assumptions in italic E. Project Components Component 1: Transport infrastructure improvement to enhance mobility in selected areas (about US$10.0 million equivalent, 100 percent IDA) 25. This component will mostly finance the rehabilitation and maintenance of about 110 km of unpaved trunk roads and connecting feeder roads in rural areas in the regions of Cacheu and Oio, between the towns of Ingoré and Farim using the spot improvement method when appropriate. The planned civil works will entail constructing or reconstructing culverts, drainage structures, and small bridges to: (a) prevent road closures during the rainy season; (b) improve all-weather passability; and (c) enhance resilience of rural transport infrastructure to climate change. 26. This component will also finance the construction or rehabilitation of a small river ramp on the northern bank of the river Cacheu in Binta, a village served by one of the project roads and where a health center is located. The ramp will ease the loading and unloading of passengers and cargo transported by motorized or non-motorized canoes. The ramp will thus encourage intermodal transport, which should Page 15 of 65 The World Bank Guinea-Bissau - Rural Transport Project (P161923) enhance resiliency to climate change through redundancy in the transport network and reduce greenhouse gas emissions. 27. Furthermore, this component will also support the reforms planned to strengthen the programming and management of road maintenance (see Subcomponent 2.1 below) by financing: (a) the routine maintenance of about 110 km of unpaved roads (after the completion of their rehabilitation); and (b) the erection and management of rain barriers to improve the durability of the unpaved infrastructure. Improving the maintenance systems should also decrease the vulnerability of the road network to climate change. The total amount estimated for the routine maintenance works is expected to be around US$750,000. 28. Finally, in addition to the above civil works, other activities to be financed under this component include: (a) technical engineering studies, social and environmental safeguards studies for the civil works, and bidding documents; (b) supervision of civil works; and (c) technical audits. Component 2: Support to transport sector institutions (about US$2.8 million equivalent, 100 percent IDA) 29. This component will provide a holistic support package to the institutions responsible for transport infrastructure and services in Guinea-Bissau (Ministry of Public Works, Construction and Urbanism, Ministry of Transport and Telecommunication, and Road Maintenance Fund). It is divided into two subcomponents and aims to reinforce the sustainability of the road rehabilitation works financed under Component 1. Subcomponent 2.1: TA on road project management, maintenance and safety (US$1.6 million equivalent) 30. This subcomponent will support the DGIT within the Ministry of Public Works, Construction and Urbanism. The TA will focus on technical, administrative and financial management of road projects. It will also focus on the training of DGIT staff on procurement and management of contracts; elaboration of a manual of operational procedures for the design, supervision and evaluation of road projects; and support the follow up of the road works and supervision contracts financed under Component 1. 31. Furthermore, it will strengthen the programming and management of road maintenance by: (a) analyzing current implementation modalities; (b) determining maintenance needs and defining a strategy to meet these needs with the available resources; (c) elaborating a program of maintenance works; (d) supporting the implementation of such program; (e) setting the groundwork to create a road database; and (f) supporting the Road Maintenance Fund to increase its financial revenues and the DGIT to improve the use of these revenues. 32. Finally, it will also support the DGVTT within the Ministry of Transport and Telecommunication by financing road safety sensitization campaigns in villages and schools located along the roads to be improved by the project under Component 1. It will also finance the dissemination of the new highway code, support the reform of the driving test, and it will provide the necessary equipment to properly equip the driving test’s facility in Bissau. 33. The above road safety activities will complement an ongoing TA provided by the World Bank through the Africa Transport Policy Program (SSATP) to the Ministry of Transport and Telecommunication Page 16 of 65 The World Bank Guinea-Bissau - Rural Transport Project (P161923) and dedicated to road safety; this TA’s objectives are to identify key issues and challenges and to propose a national strategy, including the strategic axes for interventions (based on the Safe System approach) and the most appropriate institutional option to manage road safety in Guinea-Bissau, taking into account the country’s capacity and resources. Subcomponent 2.2: National plan for transport and logistics (US$0.6 million equivalent) 34. This subcomponent will support the development of a national plan for transport and logistics for Guinea-Bissau. The plan will cover infrastructure and services related to road and urban transport, maritime and river transport, and air transport. It will aim at guiding major investments and sectoral policies for the short, medium and long-term horizons. It will include an analysis of the potential impacts of climate change on the transport and logistics sector and suggest measures to better adapt the sector to climate change. This part of the plan will build on Guinea-Bissau’s National Action Program for Adaptation to Climate Change (NAPA). Subcomponent 2.3: Other TA, studies and audits (US$0.6 million equivalent) 35. This subcomponent will finance: (a) TA to the Project Management Unit (PMU) for project preparation and elaboration of the Project Implementation Manual (PIM); (b) monitoring and evaluation (M&E) studies (mid-term review, completion report, and impact evaluation); (c) the recruitment of an non-governmental organization (NGO) specialized in the prevention and treatment of violence against women and children and an NGO to promote women’s participation in road rehabilitation and maintenance works; (d) training and support to PMU’s staff; (e) external financial audits; and (f) other audits if needed (e.g. environmental, social, etc.). Component 3: Operational support (US$2.2 million equivalent, 100 percent IDA) Subcomponent 3.1: Project management (US$2.1 million equivalent) 36. Activities to be financed under this subcomponent include: (a) salaries and travelling expenses of the staff of the PMU; and (b) operating costs and equipment of the PMU. Subcomponent 3.2: Compensations in case of involuntary resettlement (US$0.1 million equivalent) 37. Where required, this subcomponent will finance any cash or in-kind compensation to project- affected people for the potential loss of small strips of land and assets (mainly crops, trees, and fences) located in the right-of-way or loss of income (see details in Section VI. Appraisal F. Social). Component 4: Contingent Emergency Response (US$0 equivalent, 100 percent IDA) 38. This component, known as the Immediate Response Mechanism (IRM) Contingent Emergency Response Component (CERC), can be activated should the need arise to redirect some of the project resources to respond to an emergency. These resources would be pooled with resources coming from other projects financed by the World Bank in the country. An IRM Operational Manual will have to be prepared separately and approved by the World Bank, in line with guidance provided under paragraph 12 Page 17 of 65 The World Bank Guinea-Bissau - Rural Transport Project (P161923) of World Bank Policy on Investment Project Financing (IPF). In case this component is used, the project will be restructured to reallocate funds. F. Project Cost and Financing 39. The proposed project will be financed by an IDA credit of US$15 million equivalent. There will be no counterpart funding from the Government. As per the Africa Regional Vice-Presidency’s approval, the compensations for involuntary resettlement will be paid by the IDA credit, given the importance of ensuring the timely completion of resettlement activities in a low capacity environment, the lack of counterpart funding due to the precarious financial situation of the country, and the fragile situation of the country (classified as a country affected by fragility, conflict and violence (FCV) by the World Bank) and thus of the project implementation context. The detailed costs are shown in the table below. Table 1: Project Cost Project components Project cost IDA funding 1. Transport infrastructure 10.0 10.0 improvement 2. Support to transport sector 2.8 2.8 institutions 2.1 TA on road project management, maintenance, and 1.6 1.6 safety 2.2 National plan for transport and 0.6 0.6 logistics 2.3 Other TA, studies and audits 0.6 0.6 3. Operational support 2.2 2.2 3.1 Project management 2.1 2.1 3.2 Compensations in case of 0.1 0.1 involuntary resettlement 4. Contingent Emergency Response 0.0 0.0 Total Costs 15.0 15.0 40. A project preparation advance (PPA) of US$1 million was provided by the World Bank to the Government on July 13, 2017. This advance has been used: (a) to carry out the required Environmental and Social Management Framework (ESMF), Resettlement Policy Framework (RPF), Environmental and Social Impact Assessment (ESIA)/Environmental and Social Management Plan (ESMP), and Resettlement Action Plan (RAP); (b) to prepare the required techno-economic studies, detailed engineering studies, and bidding documents; (c) to prepare the PIM; and (d) to recruit the staff and cover the operating costs and some equipment of the PMU. Page 18 of 65 The World Bank Guinea-Bissau - Rural Transport Project (P161923) G. Rationale for World Bank Involvement and Role of Partners Rationale for World Bank Involvement 41. The World Bank involvement is justified by the World Bank’s deep expertise and longstanding experience in the rural roads sub sector in many countries over several decades. The World Bank thus ensures the application of reliable procurement and FM procedures, environmental and social safeguards, adequate technical standards, proper quality control and supervision, and efficient M&E systems Role of Partners 42. Development partners involved in the transport sector. The EU, the WADB, and the AfDB have been extensively consulted during preparation to ensure complementarity of the proposed project with their transport projects in Guinea-Bissau. The same partners will play a critical role during the preparation of the national plan for transport and logistics to ensure full buy-in from both the Government of Guinea- Bissau and the development community of the findings of the study. 43. United Nations (UN) Women and national NGOs. During project preparation, UN Women was extensively consulted to identify national NGOs that could deliver sensitization campaigns and trainings to stakeholders to prevent GBV, and that could participate in the grievance redress mechanism to collect complaints from the potential survivors of such violence and provide support to them. H. Lessons Learned and Reflected in the Project Design 44. The proposed project design fully takes into account lessons learned in preparing and implementing projects in Guinea-Bissau and other similar countries affected by fragility, conflict and violence (FCV), as well as lessons learned from international good practice in the preparation and implementation of rural roads projects. Furthermore, since the proposed project would be the first World Bank-financed transport project being implemented in Guinea-Bissau in more than twenty years, particular attention has been given to quality at entry and implementation support. What follows are some of the key lessons learned and applied to the proposed project. • Simple preparation and implementation arrangements. This lesson has been reflected in the project design as follows: (a) focus on one large investment component in a focused geographical area (Component 1); (b) limited number of procurement activities; (c) six-year project implementation period; and (d) provision of hands-on implementation support (TA under Component 2) to the newly created PMU within the Ministry of Public Works, Construction and Urbanism with no experience in implementing World Bank-financed projects. • Streamlined project design and scope. The project will finance civil works that are relatively simple, since it is the most effective way to rapidly restore minimal connectivity on roads that have not been maintained for several years. Maximum use will be made of local labor and low- cost, easily-obtainable materials. The project area is also limited in size and located not too far from the capital Bissau (about 100 km), which should make supervision easier. Page 19 of 65 The World Bank Guinea-Bissau - Rural Transport Project (P161923) • Participatory planning for infrastructure investments. The feeder roads to be rehabilitated have been selected using a prioritization methodology involving the rural communities. • High quality at entry and implementation readiness. High quality technical studies carried out during preparation are essential to avoid delays and cost overruns during implementation and to ensure implementation readiness. • The preparation and implementation of the activities to address GBV risks, including sexual exploitation and abuse (SEA) risks, draw heavily from prior projects and international experience. Activities, ranging from prevention to support to survivors of any GBV incidents, will be based on the approach recommended by the “Good Practice Note on Addressing Gender- Based Violence in Investment Project Financing involving Major Civil Works” issued by the World bank in September 2018. III. IMPLEMENTATION ARRANGEMENTS A. Institutional and Implementation Arrangements 45. Ministry of Public Works, Construction and Urbanism. The proposed project will be housed at the Ministry of Public Works, Construction and Urbanism, which is in charge of road infrastructure, including rural roads. The ministry will be responsible for the: (a) coordination and facilitation of the implementation of the project; (b) resolution of any conflicts that may arise between the different entities involved in the implementation of the project; and (c) follow-up on the orientations and recommendations of the Project Steering Committee. 46. Steering Committee. A Project Steering Committee, including high-level representatives of the ministries and entities concerned by the project (Ministry of Economy and Finance, Ministry of Public Works, Construction and Urbanism, Ministry of Transport and Telecommunication, and Road Maintenance Fund) will be maintained throughout the implementation of the project and will be responsible for providing strategic guidance for the project. The Steering Committee will be chaired by the Ministry of Public Works, Construction and Urbanism. 47. PMU. A dedicated PMU is already staffed and operational to prepare and implement the proposed project activities. The unit reports directly to the DGIT within the Ministry of Public Works, Construction and Urbanism and will be responsible for the day-to-day management of the project. The unit will include a coordinator, a procurement specialist, a financial management specialist, an environmental safeguards specialist, a social safeguards specialist, and an accountant. 48. DGIT and DGVTT. The DGIT will have the technical responsibility for the road works implemented under Component 1, while the DGVTT will have the technical responsibility for road safety activities implemented under Component 2. Page 20 of 65 The World Bank Guinea-Bissau - Rural Transport Project (P161923) B. Results Monitoring and Evaluation 49. Results monitoring. Monitoring will be based on the agreed results framework and arrangements described in Section VII below. The PMU will regularly update the indicators and will produce progress reports every six months. 50. Impact evaluation. A rigorous impact evaluation is planned through the “IE Connect for Impact” program developed between the World Bank’s Transport Global Practice and the World Bank’s Development Impact Evaluation Unit (DIME). The proposed impact evaluation will focus on the access of women to social services and economic opportunities (see Section VI. Appraisal F. Social for detail). C. Sustainability 51. Maintenance is the key issue to ensure the sustainability of rural road investments in Guinea- Bissau. Accordingly, the proposed project includes TA under Subcomponent 2.1 to the DGIT and the Road Maintenance Fund to enhance their ability to better finance, program, and manage road maintenance works in the country. This TA will have a close look at the governance of the Road Maintenance Fund and at the use of the collected funds by the DGIT. In addition, to support these reforms, the proposed project will finance routine maintenance works on unpaved roads in the proposed project area. The proposed project will also support the installation and management of rain barriers on the roads to be improved under Component 1. These rain barriers will be closed during strong rainfall events to preserve the wet unpaved road surfaces from damage caused by heavy vehicles. 52. Climate change is an emerging issue for the sustainability of the road sector in Guinea-Bissau. Thus, as previously mentioned, the national plan for transport and logistics (Subcomponent 2.2) will include an analysis of the potential impacts of climate change on the transport and logistics sector and suggest measures to better adapt the sector to climate change. IV. APPRAISAL SUMMARY A. Economic Analysis Road identification and selection 53. A socio-economic inventory and a technical assessment were conducted in the project area and identified 425 km of unpaved roads, including three classified trunk roads (130 km) and a series of unclassified connecting feeder roads (295 km). The roads to be improved by the proposed project were then selected based on a multi-criteria analysis considering the following criteria: population served, agricultural production, presence of markets and facilities for social services (education and health care), level of traffic, resilience and all-weather passability, network effect, and inclusion into the community development plans established under the World Bank-financed Rural Community-Driven Development Project.12 The analysis led to the selection of 60 km of unpaved trunk road (National Road 3) and of about 12Each plan was developed along participatory principles, is regularly updated, and reflects each community’s priority needs in terms of infrastructure (e.g. drilling a water well, building a school, rehabilitating a feeder road, etc.). Page 21 of 65 The World Bank Guinea-Bissau - Rural Transport Project (P161923) 50 km of feeder roads13 that are connected to the trunk road and have been identified by communities as a high priority in their development plans. The project roads are displayed on map 8 in Annex 3. 54. The project will not intervene on the last section (about 10 km) of the National Road 3 west of the town of Farim because most of this section is planned to close as a consequence of the possible construction of a phosphate mine project that would be financed by the private sector and that is known as the “Farim Phosphate Project”.14 The phosphate project is expected to build a bypass road to replace the closed section. The phosphate project is not related to the proposed project, given that one does not need the other to be viable, and vice versa. The roads to be rehabilitated and maintained by the proposed project will not be used to transport the phosphate produced from the mine site to the port facility. Cost-benefit analysis 55. Methodology. A cost-benefit analysis was done for the trunk road (National Road 3), which represents about 83 percent of the total cost of the road rehabilitation works to be financed by the project—the remaining 17 percent being absorbed by the feeder roads. Given that it is an unpaved road with relatively low traffic, the Road Economic Decision Model (RED) version 4.0 was used to perform the analysis, using the consumer surplus approach to estimate project benefits in terms of road user costs savings (vehicle operating costs plus travel time costs) and carbon dioxide (CO2) emissions costs. 56. Road condition. The current condition of the road corresponds to an average vehicle speed of 20 km/hour and a roughness (IRI) of 14 m/km. After the project, it is assumed that the roughness would improve to 10 m/km, corresponding to an average velocity of 50 km/hour. 57. Traffic. The current normal traffic amounts to about 525 motorized vehicles per day, of which 91 percent are motorcycles. The evaluation considered an annual traffic growth rate of 5.0 percent per year during the evaluation period for all vehicles.15 The generated traffic, due to the decrease in transport costs caused by the road improvements, was assumed to be around 14 percent of the normal traffic. Induced traffic was not considered in the economic evaluation. 58. Costs. The average initial investment cost to improve the road into an all-weather road is about US$100,000 per km. The initial investment would be followed by a recurrent annual routine maintenance of about US$2,500 per km, and periodic maintenance every seven years of about US$14,000 per km. 13 This length may decrease once the detailed engineering design is completed and the estimated costs of the rehabilitation works are known more precisely. 14 The Farim phosphate project has been under preparation since 2006 and would consist of three main components: a mine site, a product transport route, and a port facility to export the product to customers. The mine site is located just west of the town of Farim and the port facility would be located east of Bissau on the river Geba (see Map 7 in Annex 3). The project’s construction is expected to last around two years and the operation around 25 years. The private company owning the mine is finalizing resettlement studies to relocate the 175 households currently living at the mine site. The start date of construction remains highly uncertain because the mining company has not yet secured the US$200 million required for the initial capital investment and there is no anticipated date by which this funding will be secured. Regardless, the Farim phosphate project is an independent, privately financed project and, as such, is not a related activity or within the project’s area of influence as per World Bank policy. For these reasons, World Bank’s safeguards do not apply to the above-referenced mining project. 15 Guinea-Bissau’s GDP is expected to increase at 5 percent per year from 2019 to 2023 (IMF, World Economic Outlook, October 2018). Page 22 of 65 The World Bank Guinea-Bissau - Rural Transport Project (P161923) 59. Results. The analysis was performed for a 20-year evaluation period, adopting a discount rate of 6 percent and the high scenario of unit social cost of carbon, in US$ per CO2 ton equivalent, based on the recommendations of the World Bank’s Shadow Price of Carbon Guidance Note.16 The overall economic internal rate of return (EIRR) is 13.7 percent and the net present value (NPV) is US$4.1 million corresponding to a benefit-cost ratio of 1.8. The investment is therefore economically justified. Normal traffic benefits account for 83 percent of the total benefits and generated traffic benefits for 17 percent. A high economic return for the proposed road works is expected because these works would reduce greatly the IRI of the unpaved road (and therefore the road user costs) with a relatively low-cost investment. 60. Sensitivity analysis. The investment remains economically justified even if rehabilitation costs are 20 percent higher or if benefits are 20 percent lower, or both. If rehabilitation costs were 20 percent higher and benefits were 20 percent lower, the EIRR would drop to 8.0 percent. Switching values analysis shows that rehabilitation costs would have to increase by 86 percent for the EIRR to reach 6 percent. 61. Alternative analysis. The alternative of paving the project trunk road with a bituminous layer (double surface dressing) at a cost of US$300,000 per km and reducing the average roughness of the road to 3 m/km was considered. The evaluation yielded an EIRR of 2.5 percent, below the 6 percent threshold, and a negative NPV of -US$4.41 million. The low four-wheel traffic on the road (41 vehicles per day) does not economically justify such high investment. In addition, paving the road would allow for higher driving speed and would therefore require some changes in the current road alignment to ensure road safety. These alignment changes would likely result in increased negative environmental and social impacts. 62. CO2 emissions. The total gross CO2 emissions over the 20-year evaluation period under the without-project scenario are estimated at 48,654 tons and under the with-project scenario at 53,085 tons, resulting in a net increase of CO2 emissions of about 4,431 tons, or 222 tons per year. The increase in emissions can be attributed to the generated traffic. Long-term outcomes 63. By improving the selected roads, it is expected that the proposed project will reduce transport time and costs, which would promote connectivity to markets and would positively affect social well- being, with better access to healthcare and education. Decreased travel time to and increased accessibility of social services and markets should in turn lead to better long-term outcomes in terms of health and consumption. Reaching a health facility faster could mean accessing care before health has deteriorated significantly, which should mean better vital signs and better long-term outcomes. Additionally, improved road conditions could lead to more diverse goods reaching markets, as well as lowered prices for goods or potentially the ability of individuals to travel to further markets that have lower prices. It also means the possibility for producers to access lower priced inputs or additional inputs, as well as to access more markets where they can sell their goods. These could lead to changes in the consumption basket of households if they can purchase more goods with the same amount of money, and also purchase a more diverse array of goods. 16http://documents.worldbank.org/curated/en/621721519940107694/Guidance-note-on-shadow-price-of-carbon-in- economic-analysis. Page 23 of 65 The World Bank Guinea-Bissau - Rural Transport Project (P161923) Justification for public sector financing 64. Public sector financing is appropriate to finance rural roads because their traffic volumes are low and largely of vehicles used by poor agricultural producers or members of lower-income families and highly unlikely to attract the interest and financing of the private sector of their improvement and management. In addition, public investment in road infrastructure is a way for the Government to play a key role in the economic development of a poor and lagging region by enhancing access to markets and social services (schools and health units, in particular). Justification for using World Bank’s resources 65. Using World Bank’s resources for this proposed project is justified by the World Bank’s deep expertise and longstanding experience in the rural roads sub sector in many countries over several decades. The World Bank thus ensures the application of reliable procurement and FM procedures, environmental and social safeguards, adequate technical standards, proper quality control and supervision, and efficient M&E systems. B. Technical Analysis 66. Rural roads improvement works. The proposed road works on the trunk road are expected to restore and ensure all-weather traffic conditions for motorized and non-motorized vehicles. The focus of the road rehabilitation works will be on the improvement of minor bridges, drainage structures such as culverts and side drains, as well as on the restoration of the road profile. Where absolutely required, bridge and culvert structures will be reconstructed to modern weather resilient standards. Small widenings and alignment corrections may also be needed to improve road safety. The proposed road works will also support infrastructure required for the long-term sustainability such as rain barriers, which are very effective in preserving unpaved roads after rainfall events. The average unit cost is estimated to be US$100,000 per km inclusive of all costs and the average design speed for motorized vehicle after completion of the road works will be about 60 km per hour. 67. Concerning the proposed feeder road works, they will focus on all-weather passability rather than on full-scale rehabilitation using the spot improvement approach.17 The road works will be localized on priority sections along the selected feeder roads, which are often cut off during rainy season, dangerous and at risk of deterioration in the future. Road sections which are in good condition will not be treated. Works will especially concentrate on the construction or reconstruction of small bridges, drainage structures such as culverts and concrete submersible slabs, side ditches, and partial earthwork on critical locations to ensure continuity of the road profile. The average unit cost for feeder road works is estimated to be US$25,000 per km inclusive of all costs. 68. Routine maintenance works. The envisaged routine maintenance works should mainly allow the cleaning of ditches and culverts twice a year, in addition to some localized repairs on the roadway of the 17This approach substantially reduces the cost of road works per km and therefore allows more beneficiaries per dollar spent. It has been successfully tested and implemented by the World Bank in neighboring countries, elsewhere in Sub-Saharan Africa and around the world. This approach is appropriate for rural roads in Guinea-Bissau as traffic count studies show that most traffic on these roads is composed of intermediate means of transport (motorcycles, motorized three-wheelers, animal carts, bicycles) rather than of more sophisticated motor vehicles (cars, buses, trucks). Page 24 of 65 The World Bank Guinea-Bissau - Rural Transport Project (P161923) unpaved roads rehabilitated by the project. The average unit cost is estimated to be about US$2,500 per km of road rehabilitated per year. C. Financial Management 69. A PMU created by ministerial decree has been established at the Ministry of Public Works, Construction and Urbanism. The unit will report directly to the DGIT and will be responsible for the day- to-day management of the project. An FM assessment of the PMU has been conducted to determine whether it has set up acceptable FM arrangements to manage the proposed project funds, and to ensure that the proposed project proceeds would be used only for the intended purposes, with due attention to economy and efficiency. The FM assessment was carried out in accordance with the Financial Management Practices Manual issued by the Financial Management Board on March 1, 2010 and retrofitted on February 4, 2015. 70. A PIM including fiduciary procedures is being prepared and the FM officer has been recruited with funding from the PPA. Once the manual has been completed and the rest of the FM staff recruited (i.e. accountant and internal auditor), the FM system of the PMU should satisfy the World Bank’s minimum requirements under the World Bank Policy and Directive on IPF effective in 2017. To ensure readiness for implementation and maintain an adequate FM system, the following measures should be taken: (a) the completion and adoption of a PIM including fiduciary procedures by effectiveness; (b) the recruitment of an accountant and the purchase and customization of an accounting software for the bookkeeping of the project by three (3) months after effectiveness; (c) the recruitment of an external auditor by six (6) months after effectiveness; and (d) the recruitment of an internal auditor before the payment of cash compensation or by three (3) months after effectiveness (whichever comes first) to conduct ex-post quarterly reviews. It is also recommended that the project coordination unit of the Rural Community- Driven Development Project which is responsible for the implementation of the PPA will continue to provide oversight of the project FM activities during the first year of implementation. Further detail is provided in Annex 1 (Institutional arrangements). 71. Resettlement costs related to the implementation of the RAP will be paid under the proposed project. Given the risk of fraud and corruption inherent to the payment of cash compensations, additional FM arrangements will be taken to mitigate the risk. The PMU will notify the individual project affected people (PAPs) of the dates and time for issuing the payment vouchers/checks, as well as their resettlement entitlements, with a detailed breakdown of compensation and other assistance in cash due in connection to involuntary resettlement under the project. The PIM will specify the administrative process and accountabilities and responsibilities for use of IDA financing to pay compensation. An in-depth review of all payments will be carried out every semester during FM implementation support missions in addition to the quarterly reviews to be conducted by the internal auditor of the project. In addition to the regular financial audits of the project, a special opinion of cash compensation will be issued by the external auditor. To increase transparency with regard to information dissemination, the PMU will inform beneficiaries through appropriate channels and update regularly the World Bank by providing comprehensive information including the internal audits reports and budgets. Page 25 of 65 The World Bank Guinea-Bissau - Rural Transport Project (P161923) D. Procurement 72. Procurement activities under the project will be carried out in accordance with the World Bank’s “Procurement Regulations for IPF Borrowers”, dated July 2016 and revised in November 2017 and August 2018; the World Bank’s “Guidelines on Preventing and Combating Fraud and Corruption in Projects Financed by International Bank for Reconstruction and Development (IBRD) Loans and IDA Credits and Grants”, revised as of July 1st, 2016; and the provisions stipulated in the Legal Agreement. Further detail is provided in Annex 1 (Institutional arrangements). E. Environment (including Safeguards) 73. The project is classified as Category B for environmental assessment purposes because, although some activities supported by the proposed project may induce adverse impacts, they are of moderate impact and fairly easy to mitigate. The potential negative environmental impacts include limited vegetation clearing, soil degradation, air and water pollution, road accidents, temporary nuisances to people living near civil works sites (dust, noise, etc.), increased access to or through potentially sensitive habitats, damage to physical cultural resources. Three safeguard policies related to environment are triggered by the proposed project: (a) OP 4.01 on environmental assessment; (b) OP 4.04 on natural habitats; and (c) OP 4.11 on physical cultural resources. 74. As some of the roads to be improved by the proposed project were unknown at the onset of preparation, the Government of Guinea-Bissau prepared an ESMF, which was disclosed in Guinea-Bissau on May 24, 2018, and on the World Bank’s website on May 25, 2018. During preparation, all the roads to be improved by the project were selected and a site-specific ESIA/ESMP was therefore prepared, reviewed, consulted upon and disclosed in Guinea-Bissau on March 28, 2019 and on the World Bank’s website on April 1, 2019. 75. The PMU will hire an environmental safeguards specialist and a social safeguards specialist to oversee all safeguards aspects of the project. The specialists will ensure that all project-affected groups and local NGOs are adequately consulted on the project’s environmental and social aspects. 76. There is a possibility that a privately-funded phosphate mining project could be developed near Farim a few kilometers from the end of the trunk road to be rehabilitated under the proposed rural transport project. Both projects are independent, and their physical locations are distinct and not adjacent. Given that the privately-funded phosphate mining project is not related to the World Bank’s proposed project, World Bank safeguards do not apply to the phosphate mining project. F. Social (including Safeguards) 77. The proposed project is expected to have significant economic and social benefits by enhancing access to markets and social services for rural communities in the project impact area. More specifically, the improvements in transport infrastructure will be highly relevant to some of the poorer segments and vulnerable groups, who are particularly affected by the lack of access and mobility. 78. Impact on women. The proposed project is expected to benefit women. An analysis based on available data shows gender inequalities related to access to school and health services, as well as to Page 26 of 65 The World Bank Guinea-Bissau - Rural Transport Project (P161923) economic opportunity for women. In Guinea-Bissau, health and education outcomes are particularly weak for women: 43 percent of girls enrolled in primary school dropped out before completion based on Multiple Indicator Cluster Survey (MICS4) data from 2010, and only 19.9 percent of girls attended secondary school as compared to 27.3 percent of boys, based on data from UNICEF. The lack of proper sanitary facilities and long distances to school are thought to be critical barriers to educational participation, especially for girls (14‐20 percent of poor children must travel 60 minutes or more to reach school). In 2010, Guinea-Bissau had the 7th highest maternal mortality rate in the world, that is partly due to the lack of transport to health centers, according to a Ministry of Health report, but also to the low quality of care provided. The AfDB’s Guinea-Bissau Gender Profile indicates that “roads in rural areas (…) are unpaved and pot-holed and transport is limited, making access to any health facilities that exist all but impossible, especially for pregnant women”. Data shows that improving the quality of roads serving schools and health centers would contribute to improving women’s access to these services and hence reduce the gender gap.18 Furthermore, the project is expected to improve physical access to health centers that will be supported under the World Bank-financed Strengthening Health Service Delivery Project (P163954) that aims at improving coverage and quality of essential maternal and child health services in Guinea-Bissau. 79. Additionally, a high percentage of women in Guinea Bissau engage in economic activity, with over 80 percent of women over age 15 being economically active. Many engage in agriculture, specifically cashew farming, but also fish-vending, both of which can benefit from better transport infrastructure (more details in Annex 2). Evidence presented in the SCD shows that women do not benefit as much as men from the economic returns even though about half of the cashew workforce is female. Cashews account for 26 percent of income (net of remittances) for female-headed households compared to 35 percent for male-headed households.19 Providing alternative job opportunities for women would contribute to women’s revenue diversification. National statistics show that less than 3 percent of construction jobs (including roads works jobs) in Guinea-Bissau are occupied by women20, although women would probably be interested in this type of employment according to members of the civil society supporting women’s rights and empowerment. 80. The proposed project will contribute to reduce these education, health and revenue gender gaps with the following activities: (a) increasing women’s accessibility to health and education facilities through the rehabilitation and maintenance of selected all-weather roads; and (b) promoting women’s participation in road rehabilitation and maintenance works through gender sensitization of local communities, contractors and the Government. For this promotion, it is planned to hire an NGO, which could for example work with contractors to develop a gender-sensitive recruitment and communication plan to help hiring women from the local population and meet the target set in the results framework. 81. An impact evaluation will be carried out for the project with a focus on women’s access to social services and economic opportunities. The impact evaluation will be designed to help better understand the dynamics behind the main gender gaps identified in the SCD and CPF, namely (a) gender inequities in educational outcomes - with girls less likely than boys to attend secondary schools; (b) gender inequities in health outcomes, with an emphasis on maternal mortality; and (c) access to land and other productive assets constraining the productivity of female farmers. The impact evaluation will help quantify the 18 Guinea-Bissau Gender Profile, AfDB, 2015. 19 ILAP, 2010. 20 Institute of National Statistics, 2009. Page 27 of 65 The World Bank Guinea-Bissau - Rural Transport Project (P161923) impact of better road infrastructure on women and will inform policy makers in Guinea-Bissau about whether the infrastructure is leading to equitable access for all or if additional interventions are necessary to increase the impact of road rehabilitation on women. Future road projects can then be designed to maximize the impact on women and help to decrease the gender gaps. 82. Social safeguards. While the majority of social impacts are expected to be positive, there are a few risks associated with the proposed project. As the road rehabilitation works will, in certain areas, temporarily or permanently require the acquisition of small parcels of land along the right-of-way, the safeguard policy OP 4.12 on involuntary resettlement is triggered, and a RPF was prepared to establish the procedures and entitlements for compensation in case of resettlement, and disclosed in Guinea- Bissau on April 12, 2018, and on the World Bank’s website on April 18, 2018. Afterward during preparation, all the roads to be improved by the project were selected and a site-specific RAP was therefore prepared, reviewed, consulted upon, and disclosed in Guinea-Bissau on February 7, 2019 and on the World Bank’s website on February 11, 2019. Ninety-two households are expected to be affected by the project through the loss of small strips of land and assets (mainly trees, crops, and fences), which will need to be removed from the right-of-way. Also, 84 traders using makeshift stalls at a market may temporarily loose some income during road works near the market. The amount of financial compensation needed for implementing the RAP is around US$100,000. 83. Gender-based Violence. As the ESMF and ESIA/ESMP have shown, another potential social risk is the risk of GBV, in particular SEA, which could be induced by the temporary influx of labor resulting from the project. About 250 workers are expected to be mobilized during the road rehabilitation works. However, given the nature of the works, it is expected that most of the labor will be hired from the local population, thus limiting external flows of labor. With a total population of about 30,000 along the proximity of the road works, the labor-influx is assessed as medium. With this and other country and projects determinants, the overall GBV risk is rated low for the proposed project based on the World Bank’s GBV risk assessment tool.21 To further address the project’s GBV risk, there was close collaboration during preparation with the World Bank-funded initiative entitled “Guinea-Bissau: Creating Awareness Towards Reducing GBV” (P168898).22 84. The project will follow the World Bank’s recommendations highlighted in the “Good Practice Note For Addressing Gender Based Violence in IPF involving Major Civil Works“ (September 2018)23 and the “Labor Influx Guidance Note” (December 2016).24 The approach followed to mitigate GBV/SEA risks include: (a) the review of risks for the project areas and availability of prevention and support services as needed; (b) the hiring of a specialized NGO to provide additional support services for GBV prevention and referral of survivors; (c) addressing GBV/SEA risks through the procurement process with the adoption of 21 A tool for task teams to assess the risk of GBV, particularly SEA, has been developed by the World Bank and can be found online. The tool helps tasks teams understand the issues and risks of GBV in the project areas. It takes into consideration both project-specific details, such as labor influx levels, as well as the country context where the project takes place—such as situations of conflict. Through 25 questions, 12 to be answered by the task team and 13 that are prepopulated, the tool draws on information to give each project a risk ‘score’ based on the responses to the questions. 22 This advisory services and analytics activity aimed at undertaking: 1) targeted GBV risk assessment of the country portfolio; 2) country mapping of resources for addressing GBV, including identifying and mapping out the legal framework for protection, support systems and mechanisms for assistance to survivors of GBV throughout the country; 3) awareness raising and capacity building activities for relevant stakeholders, including consolidating materials and organizing and delivering workshops focusing on addressing GBV. 23 http://pubdocs.worldbank.org/en/399881538336159607/Good-Practice-Note-Addressing-Gender-Based-Violence.pdf 24 http://pubdocs.worldbank.org/en/497851495202591233/Managing-Risk-of-Adverse-impact-from-project-labor-influx.pdf Page 28 of 65 The World Bank Guinea-Bissau - Rural Transport Project (P161923) codes of conduct by any contractor working on the project; (d) the requirement that the contractor, the supervision consultant, and the PMU will each have social safeguards specialists with terms of reference including proactive actions to minimize negative social impacts, particularly GBV; and (e) the setting up of a monitoring framework in coordination with the communities and the specialized NGO in order to monitor GBV/SEA incidents and to ensure access to services by survivors. This will require adapting the project’s grievance redress mechanism specifically to respect confidentiality in coordination with local partners. The overall proposed approach includes activities that go beyond what is required by the World Bank’s Good Practice Note for a project with a low GBV risk defined by the application of the World Bank’s GBV risk assessment tool. Annex 2 provides details of the project’s approach. 85. Occupational health and safety (OHS). All civil works contracts will include clauses on OHS, in accordance with the latest World Bank’s Standard Bidding Documents. The contractors will submit an OHS management plan as part of their C-ESMP. The OHS management plan will be reviewed and cleared by the supervision consultant, who will then monitor its implementation. Furthermore, bidding documents will require that an Environment, Social, Health and Safety (ESHS) specialist be part of the key staff of both the contractor and the supervision consultant. Also, OHS will be covered in the codes of conduct to be signed by any contractor working on the project. 86. Citizen engagement and GRM. The project will include the principles of citizen engagement through the development and implementation of a communication strategy supported through the ESMF, RPF, ESIA/ESMP and RAP. A citizen engagement indicator has been included in the results matrix. Citizen engagement is being facilitated by the clear identification of beneficiaries (children, men and women, communities, NGOs, local and central administration) during preparation, implementation, and evaluation. Throughout the project, citizens will be consulted, and opportunities will be provided to collaborate with the project and participate in the sustainability of the investments. 87. The proposed project is committed to a proactive citizen engagement approach and is collaborating in this regard with the ongoing TA on mainstreaming citizen engagement in Guinea-Bissau. The main element of citizen engagement in the project will be a robust beneficiary feedback and GRM having a two-tier structure, involving as a first layer traditional and existing community organizations as a conduit for feedback and grievances. Where necessary, a project-based national layer will address those complaints that cannot be resolved at the community-level. Emphasis will be given to culturally appropriate access to the GRM, especially for women and other vulnerable groups. The GRM will help gather GBV-related grievances. The project has identified a local NGO, which will be mobilized as an entry point to the GRM, will help address potential grievance from survivors of GBV in a confidential manner, and will refer survivors to relevant service providers. 88. The GRM is a critical part of the project’s citizen engagement efforts. During implementation, complaints may arise with respect to breach of laws, landownership and land use issues, pollution and nuisance, and choice of beneficiaries, among others. A project-level GRM is outlined in the safeguard documents. It is designed to be a mechanism that is trusted by all relevant partners. It will facilitate the redress of any grievance and conflict that may arise from the project and will be supported by the social and environmental specialists of the project. The GRM should complement and facilitate access to independent judicial or administrative remedies outside the specific context and will resolve grievances using traditional and administrative mechanisms or the law courts at national, regional and community levels. The PMU will be notified of any disputes in the project area. Project field staff should work closely Page 29 of 65 The World Bank Guinea-Bissau - Rural Transport Project (P161923) with the communities and the community leaders to clarify and resolve any misunderstanding that could give rise to conflicts. Where the dispute cannot be resolved at the community level, the affected persons or party shall be advised to lodge a complaint at the national level. The project will develop a clear plan and procedures for the GRM, including complaint collection and processing procedures, reporting formats, database and records specifications, and committee membership. Public participation and consultation will be a key part of the process at all times to promote understanding and prevent unnecessary complaints and disputes. 89. The first tier of the GRM will be made up by village-level grievance redress committees. They will receive all complaints in person, in writing or by phone and register them in a standardized grievance register. The committees will be composed of representatives of the customary authorities, of women's and youth organizations and other community members. After registration, the committees will analyze the facts, deliberate, and attempt to find a solution to the grievance. Where no solution can be found, the case gets escalated to the second tier. 90. This second tier is represented by a grievance redress cell within the PMU. The cell will consist of the project coordinator, the environmental and social safeguards specialists, a representative of the Project Steering Committee, and a representative of the Environmental Impact Evaluation Agency (Autoridade de Avaliação Ambiental Competente – AAAC). The cell will have regular meetings and will rely on a central register of complaints, including the solutions reached. Where no agreement can be reached at the level of the cell, the complainants will be provided guidance on accessing judiciary means. 91. The operational details of the GRM will be developed during project preparation and will draw on international good practice and reflect the conditions and capacities on the ground. The PIM will codify these procedures, and information about the GRM will be widely disseminated to the project-affected communities. 92. There is a possibility that a privately-funded phosphate mining project could be developed near Farim a few kilometers from the end of the trunk road to be rehabilitated under the proposed rural transport project. Both projects are independent, and their physical locations are distinct and not adjacent. Given that the privately-funded phosphate mining project is not related to the World Bank’s proposed project, World Bank safeguards do not apply to the phosphate mining project. G. World Bank Grievance Redress 93. Communities and individuals who believe that they are adversely affected by a World Bank (WB) supported project may submit complaints to existing project-level grievance redress mechanisms or the WB’s Grievance Redress Service (GRS). The GRS ensures that complaints received are promptly reviewed in order to address project-related concerns. Project affected communities and individuals may submit their complaint to the WB’s independent Inspection Panel which determines whether harm occurred, or could occur, as a result of WB non-compliance with its policies and procedures. Complaints may be submitted at any time after concerns have been brought directly to the World Bank's attention, and Bank Management has been given an opportunity to respond. For information on how to submit complaints to the World Bank’s corporate Grievance Redress Service (GRS), please visit http://www.worldbank.org/en/projects-operations/products-and-services/grievance-redress-service. For information on how to submit complaints to the World Bank Inspection Panel, please visit www.inspectionpanel.org. Page 30 of 65 The World Bank Guinea-Bissau - Rural Transport Project (P161923) V. KEY RISKS A. Overall Risk Rating and Explanation of Key Risks 94. The overall risk rating is high. The higher risks relate to political and governance, institutional capacity for implementation and sustainability and fiduciary. The macroeconomic, sector strategy and policies as well as environmental and social risks are all rated substantial. 95. High political and governance risk. Political instability and weak governance are major risk factors that could impact project implementation. To mitigate the risk of political instability, the PMU within the DGIT is set up to function as an autonomous entity with full administrative and financial independence. This arrangement should ensure the effective day-to-day implementation of project activities even during periods of political turbulence. Furthermore, the proposed project activities continue to enjoy strong support from the Government of Guinea-Bissau, ensuring their likely support during implementation. 96. High institutional capacity for implementation and sustainability risk. The PMU is already operational and will support the Government of Guinea-Bissau in the implementation of project activities. The PMU staff has received training from the World Bank and has benefited from ad-hoc support from a well-established project coordination unit of another World Bank project. Although the DGIT does not have recent experience with World Bank-financed projects, it is preparing and implementing projects financed by the EU and the WADB. In addition, the DGIT will benefit from extensive TA under the proposed project, which will support, among others, the execution of the civil works under Component 1. 97. High fiduciary risk. The country’s systemic FM issues and weak accountability mechanisms can lead to collusive behaviors between actors (contractors, supervision consultants, DGIT, and the PMU itself) and undermine the fair and transparent contracting and implementation of works. Weaknesses in control system and poor coordination resulting from various stakeholders involved in the project can weaken the fiduciary environment and delay implementation of activities. As a mitigation measure, external independent financial and procurement auditors will be recruited to perform annual audits of the project’s financial statements and procurement activities. As for resettlement compensation, the FM risk is substantial given the involvement of multi-layered approval processes and potential deviations inherent to the payment of cash compensation. Additional arrangements of the flow of funds will be proposed in the operational manual to ensure that the right amount will be paid to the right beneficiaries at the right time and proper books of accounts and supporting documents will be kept in respect of all expenditures. 98. Substantial macro‐economic risk. Although economic growth has been relatively robust over the last few years, the country’s economy remains vulnerable to shocks. First, fluctuations in international cashew prices constitute an important source of macro-economic risk given Guinea-Bissau’s high export concentration in cashew, with significant implications on fiscal revenue and the current account balance. In addition, risks associated with banking instability (high non-performing loans, undercapitalization, and unresolved bank bailout controversy) are a threat to macro-financial stability. Furthermore, a steep increase in oil prices would put pressure on the current account balance and leave less resources for Page 31 of 65 The World Bank Guinea-Bissau - Rural Transport Project (P161923) priority spending. To mitigate the macro-economic risk, the project will finance 100 percent of all project activities. 99. Substantial sector strategies and policies risk. The risk is substantial because of the absence of a Government’s transport strategy and because of political instability. To mitigate this risk, the proposed project will finance the preparation of a national plan for transport and logistics and support the Government for the programming and management of road maintenance. 100. Substantial environmental and social risk. The risk is substantial owing to low capacity for safeguards in the country. The effective management of compensation caused by road rehabilitation works could pose a challenge. There is also potential for GBV resulting from labor influx. To mitigate these risks, an ESMF and RPF have been prepared, as well as site-specific ESIA/ESMP and RAP, with strong mechanisms to ensure a satisfactory implementation of resettlement compensation and specific measures to prevent and respond to GBV. Furthermore, the bidding documents and contracts will include specific clauses that will require contractors and supervising consultants to demonstrate capacity to implement mitigating measures in line with the World Bank “Good Practice Note For Addressing Gender Based Violence in IPF involving Major Civil Works “ (September 2018) (including, signing of codes of conduct with all employees, robust grievance redress mechanism (GRM) systems, and working with a specialized NGO to provide additional support services for GBV prevention and referral of survivors). . Page 32 of 65 The World Bank Guinea-Bissau - Rural Transport Project (P161923) VI. RESULTS FRAMEWORK AND MONITORING Results Framework COUNTRY: Guinea-Bissau Guinea-Bissau - Rural Transport Project Project Development Objective(s) The development objective is to improve the rural population's physical access to markets and social services in selected areas. Project Development Objective Indicators RESULT_FRAME_T BL_ PD O Indicator Name DLI Baseline Intermediate Targets End Target 1 Improved physical access to markets for the rural population in selected areas Number of markets accessible all year by road 0.00 5.00 5.00 (Number) Improved physical access to social services for the rural population in selected areas Number of schools and health centers accessible 0.00 29.00 29.00 all year by road (Number) Improved physical access to markets and social services for the rural population in selected areas Number of direct beneficiaries (Number) 0.00 30,000.00 30,000.00 PDO Table SPACE Page 33 of 65 The World Bank Guinea-Bissau - Rural Transport Project (P161923) Intermediate Results Indicators by Components RESULT_FRAME_T BL_ IO Indicator Name DLI Baseline Intermediate Targets End Target 1 1.Transport infrastructure improvement to enhance mobility in rural areas Roads rehablitated (CRI, Kilometers) 0.00 110.00 110.00 Roads rehabilitated - rural (CRI, Kilometers) 0.00 110.00 110.00 Travel time on National Road 3 connecting with 3.50 1.25 1.25 regional transport corridor (Hours) Rural roads benefiting from routine maintenance 0.00 0.00 110.00 in the project area (Kilometers) Percentage of sensitive areas benefiting from physical measures of speed reduction 0.00 100.00 100.00 (Percentage) Share of women employed in rehabilitation and routine maintenance road works (Percentage) 0.00 5.00 10.00 2. Support to transport sector institutions Preparation of a national strategy for road maintenance (Yes/No) No Yes Yes Preparation of a national plan for transport and No No Yes logistics (Yes/No) 3. Operational support Grievances responded and/or resolved within the stipulated service standards for response time 0.00 90.00 90.00 (Percentage) Percentage of workers that have signed the GBV code of conduct (Percentage) 0.00 100.00 100.00 IO Table SPACE UL Table SPACE Page 34 of 65 The World Bank Guinea-Bissau - Rural Transport Project (P161923) Monitoring & Evaluation Plan: PDO Indicators Methodology for Data Responsibility for Data Indicator Name Definition/Description Frequency Datasource Collection Collection Number of markets that have become accessible all year round as a result of the project (Ingore, Barro, The supervision Bigene, Binta, and Guidaje). Supervision consultant counts all These markets existed Number of markets accessible all year by Annual consultant's markets along improved Supervision consultant before the project and road report roads and records the were located along the number in its report. project roads but were not accessible all year round due to poor condition of the roads, hence the baseline’s value of zero. Number of schools and health centers that have become accessible all year The supervision round as a result of the consultant counts all project. These facilities Supervision schools and health Number of schools and health centers existed before the project Annual consultant's Supervision consultant centers along improved accessible all year by road and were located along the report roads and records the project roads but were not number in its report. accessible all year round due to poor condition of the roads, hence the baseline’s value of zero. PMU identifies all the People living within 2 km of 2009 national Annual villages located in the 2- PMU Number of direct beneficiaries the rural roads improved census. kilometer buffer zone by the project. along the project roads. Page 35 of 65 The World Bank Guinea-Bissau - Rural Transport Project (P161923) The population of these villages is then drawn from the 2009 census and adjusted for an average annual population growth of 2.45%. A project road is accounted for in the indicator only after the improvement works for this road have been completed. ME PDO Table SPACE Monitoring & Evaluation Plan: Intermediate Results Indicators Methodology for Data Responsibility for Data Indicator Name Definition/Description Frequency Datasource Collection Collection DGIT's works Annual acceptance PMU Roads rehablitated reports DGIT's works Annual acceptance PMU Roads rehabilitated - rural reports Travel time on the trunk Annual PMU measures the road improved by the after travel time by pick-up Travel time on National Road 3 project from Ingoré to the completion Timer from one end of the PMU connecting with regional transport river Caur (60 km). In of road to the other, during corridor Ingoré, this trunk road rehabilitati the rainy season, on a connects with the paved on works working day, in daytime. Page 36 of 65 The World Bank Guinea-Bissau - Rural Transport Project (P161923) road going from Bissau to Ziguinchor (Senegal), which is currently the main transport corridor linking Guinea-Bissau and Senegal. Cumulative kilometers of DGIT's unpaved roads in the maintenance Rural roads benefiting from routine Annual DGIT project area that receive program maintenance in the project area routine maintenance (twice reports a year) Cumulative number of schools and villages that have benefited from Field visit of DGVTT to Percentage of sensitive areas benefiting physical speed calming Periodic verify that physical Annual DGVTT from physical measures of speed measures financed by the survey speed calming measures reduction project, divided by the have been implemented cumulative number of villages and schools located along the project roads. Ratio between the number of person-days worked by Supervision women and the total Supervision Share of women employed in consultant disaggregates number of person-days Annual consultant's Supervision consultant rehabilitation and routine maintenance the number of worked worked during the reports road works person-days by gender. rehabilitation and routine maintenance road works financed by the project. Project A national strategy for road Preparation of a national strategy for road Annual progress PMU maintenance has been maintenance reports prepared under the project Preparation of a national plan for A national plan for Annual Project PMU transport and logistics transport and logistics has progress Page 37 of 65 The World Bank Guinea-Bissau - Rural Transport Project (P161923) been prepared under the reports project. Share of all grievances Register of PMU analyzes time received by the Grievance Grievances responded and/or resolved complaints taken to address Redress Mechanism (GRM) Annual PMU within the stipulated service standards for established by grievances received that have been addressed response time PMU through the GRM within the stipulated timeframe of one month. share of workers employed by the contractor and the Supervision Percentage of workers that have signed supervision consultant and Annual consultant's Supervision consultant the GBV code of conduct present on-site who have reports signed the GBV individual code of conduct ME IO Table SPACE Page 38 of 65 The World Bank Guinea-Bissau - Rural Transport Project (P161923) Annex 1: Implementation Arrangements and Support Plan 1. Role of the Project Coordination Unit of the Rural Community-Driven Development Project. Established in 2009 within the Ministry of Economy and Finance, this unit was responsible for the PPA. During project preparation, it managed the recruitment of the core staff of the PMU and the procurement of the technical and safeguard studies. FINANCIAL MANAGEMENT 2. A FM assessment was conducted in accordance with the Financial Management Manual issued by the Financial Management Sector Board in March 2010. Its objective is to determine whether the Borrower has acceptable and adequate FM arrangements to ensure (a) reliability of financial reporting; (b) effectiveness and efficiency of operations; and (c) compliance with legal covenants, laws, and guidelines. 3. A PMU has been created by ministerial decree and is being established through the PPA managed by the Rural Community-Driven Development Project which is fully operational and familiar with World Bank fiduciary procedures. The PMU will report directly to the DGIT within the Ministry of Public Works, Construction and Urbanism and will be responsible for the day-to-day management of the project. The FM staff would include a Finance and Administrative Officer and an accountant with adequate and relevant experience with World Bank procedures. The FM staff would be responsible for collecting and controlling invoices, maintaining the books, entering data in the accounting software, managing the project’s bank account, keeping the books of account and preparing the financial reports as well as the withdrawal and direct payments applications. An internal auditor will be recruited before the payment of cash compensation or by three (3) months after effectiveness (whichever comes first) to conduct ex-post quarterly reviews. 4. The World Bank’s FM assessment of the Ministry of Public Works, Construction and Urbanism concluded that the project’s FM arrangements will satisfy the World Bank’s minimum requirements under World Bank Policy and Directive on IPF effective in 2017 once the proposed mitigation measures are met. Given the capacity constraints with the DGIT and the fact that the FM system is not yet in place, the overall FM residual risk rating for the project is rated as Substantial. 5. The FM action plan below outlines the mitigating measures which, if implemented, would strengthen the FM arrangements. Table 1.1: Financial Management Action Plan Action Date due by Responsible 1 Completion and adoption of an Implementation By effectiveness DGIT Manual including fiduciary procedures 2 Recruitment of an Accountant dedicated to the Within three months of PMU project effectiveness 3 Purchase and customization of accounting Within three months of PMU software effectiveness 4 Recruitment of a consultant for the internal Within three months of PMU audit function effectiveness or before payment of Page 39 of 65 The World Bank Guinea-Bissau - Rural Transport Project (P161923) Action Date due by Responsible compensation (whichever comes first) 5 Appointment of an external auditor completed Within six months of PMU and contract signed effectiveness Project Financial Management Arrangements 6. Budgeting. The Project budgeting process will be defined in the PIM. The budget would be reviewed and adopted by the Project Steering Committee, before the beginning of each fiscal year. Annual draft budgets would be submitted to IDA’s non-objection before adoption and implementation. Any changes in the budget and work plans would be approved by the Steering Committee and receive a World Bank non-objection. The Steering Committee would also: (i) discuss and review the quarterly budget execution report; and (ii) monitor and assess the implementation progress and results of the project. 7. Accounting and Reporting. SYSCOHADA is the West African Economic and Monetary Union’s accounting system applicable in Guinea-Bissau. Project accounts would be maintained on a cash basis, supported with appropriate records and procedures to track commitments and to safeguard assets. Annual financial statements would be prepared by the PMU in accordance with the SYSCOHADA, taking into account IDA requirements and specificities related to external financed investment projects. Accounting and control procedures are documented in the PIM. The PMU would prepare Quarterly Interim Unaudited Financial Reports (IFRs) reflecting operations of the designated account (DA) and submitted to the World Bank, within 45 days after the end of each calendar quarter. The IFR format would comprise the following: (i) report on the sources and use of funds by disbursement category and by component, in a cumulative basis (project-to-date; year-to-date) and for the period, showing budgeted amounts versus actual expenditures, including a variance analysis; and (ii) forecast of sources and uses of funds. An accounting software will be purchased and customized to accommodate the bookkeeping of the project. 8. Internal control and internal auditing arrangements. The PIM describes the FM and disbursement arrangements, including the internal controls mechanism, budgeting process, assets’ safeguards, and clarifies the roles and responsibilities of all stakeholders. The Project Steering Committee, including high-level representatives of the concerned ministries and entities (Ministry of Finance, Ministry of Public Works, Construction and Urbanism, Ministry of Transport and Telecommunication, Road Maintenance Fund) will be maintained throughout the implementation of the project and will be responsible for providing strategic guidance and oversight for the project. The Steering Committee will be chaired by the Ministry of Public Works, Construction and Urbanism. A consultant will be recruited for the internal audit function. He will conduct ex-post quarterly reviews. Funds Flow and Disbursement Arrangements 9. Designated account. A DA would be opened at a commercial bank acceptable to IDA. Its ceiling would be determined in the disbursement letter based on the disbursement forecast for the first four months. The PMU Coordinator and the Finance and Administrative Officer would be jointly the signatories of the DA. The account would be set up to fund eligible expenditures based on the approved annual budget and work program. Disbursements would comply with specific procedures included in the PIM prepared for this project. Page 40 of 65 The World Bank Guinea-Bissau - Rural Transport Project (P161923) 10. Disbursement methods and processes. Disbursements under the project would be transaction- based. In addition to making advances to the DA, other disbursement methods would be available for use under the project, such as reimbursement, direct payment and special commitment. Further instructions on disbursement and details on the operations of the Withdrawal Applications and Direct Payments would be outlined in the Disbursement Letter (DL). Figure 1.1: Funds Flow and Disbursement Arrangements IDA CREDIT DA - Commercial Bank Bissau Direct Payments Contractors, Consultants, Suppliers accounts for the amounts above 20 percent of the DA All expenses below 20 percent of the DA Table 1.2: Eligible Expenditures Category Amount of the Credit Percentage of Expenditures to Allocated (expressed in EUR) be Financed (inclusive of Taxes) (1) Goods, works, non-consulting services, consulting 12,500,000 100% services, Operating Costs and Land Acquisition and Compensation under Parts 1, 2 and 3 of the Project (2) Emergency Expenditures under Part 4 of the Project 0 100% (3) Refund of Preparation Advance 900,000 Amount payable pursuant to Section 2.07 (a) of the General Conditions TOTAL AMOUNT 13,400,000 11. Annual Financial Audit. An auditor with qualifications and experience acceptable to IDA would be recruited to carry out annual audits of the project’s financial statements. The auditor would express an opinion on the Annual Financial Statements and perform the audit in compliance with International Standards on Auditing (ISAs). The auditor would be required to prepare a management letter detailing observations and comments, providing recommendations for improvements in the accounting system and Page 41 of 65 The World Bank Guinea-Bissau - Rural Transport Project (P161923) the internal control environment. The external auditor will also issue a special opinion on cash compensation. The audit report on the annual project financial statements and activities of the Designated Account would be submitted to IDA within six months after the end of each project fiscal year. 12. Implementation Support Plan. Based on FM residual risk which is Substantial at the preparation stage, the following implementation support plan is proposed. The objective of the implementation support plan is to ensure the project maintains a satisfactory FM system throughout the project’s life. Table 1.3: Implementation Support Plan FM Activity Frequency Desk reviews Interim financial reports review Quarterly Audit report review of the project Annually Review of other relevant information such as interim internal Continuous as they become control systems reports. available On site visits Review of overall operation of the FM system Twice per year (Implementation Support Mission) Monitoring of actions taken on issues highlighted in audit As needed reports, auditors’ management letters, internal audit and other reports Transaction reviews (if needed) As needed Capacity building support FM training sessions During implementation and as and when needed. PROCUREMENT Applicable regulations, guidelines, and provisions 13. Procurement activities under the project will be carried out in accordance with the World Bank’s “Procurement Regulations for IPF Borrowers”, dated July 2016 and revised in November 2017 and August 2018; the World Bank’s “Guidelines on Preventing and Combating Fraud and Corruption in Projects Financed by IBRD Loans and IDA Credits and Grants”, revised as of July 1, 2016; and the provisions stipulated in the Legal Agreement. 14. All goods, works, and non-consulting services will be procured in accordance with the requirements set forth or referred to in the “Section VI. Approved Selection Methods: Goods, Works and Non-Consulting Services” of the World Bank’s “Procurement Regulations for IPF Borrowers”, dated July 2016 and revised in November 2017 and August 2018. All consulting services will be procured in accordance with the requirements set forth or referred to in the “Section VII. Approved Selection Methods: Consulting Services” of the World Bank’s “Procurement Regulations for IPF Borrowers”, dated July 2016 and revised in November 2017 and August 2018. 15. Procurement activities will also be carried out in accordance with the Project Procurement Strategy for Development (PPSD) and the Procurement Plan approved by the World Bank. Page 42 of 65 The World Bank Guinea-Bissau - Rural Transport Project (P161923) Summary of the PPSD 16. Key issues and associated mitigation measures that have been discussed and agreed upon are shown in the table below. Table 1.4: Summary of Findings and Actions (Risk Mitigation Matrix) Responsible and Time Severit Frame y and (All Actions to # Issue/Risk Impact Mitigation Measures Be Taken on within the Project First Year of the Loan Approval) 1 Environmental, physical High Clarifications provided in the TORs of the PMU/DGIT and geographical technical and safeguards studies. constraints: - rainy season (June- Close monitoring by PMU/DGIT of geotechnical, October), topographical, hydraulic, environmental and - rarity of quarries social studies. - swampy areas - possible presence of Temporary external technical support provided cashew trees in the right- to PMU/DGIT (financed by PPA) if necessary. of-way of the roads targeted by the project Allotment of works in one lot 2 Preparation of the High PMU/DGIT contracts: Supervision consultant: - Virtual conflict of Compliance with the transparency and fairness interest inside DGIT charter (confidentiality, fraud, corruption, etc.) - Physical failure of key to be developed in the PIM experts proposed by Close contract management by PMU the consultant Works: delay in delivery, poor quality, high cost Technical specifications appropriate to the nature of the work; post-qualification requirements must not be too high, nor too low, but sufficient to protect the client against all contractors that would not have the technical capacity to execute the contract. 3 Unavailability of qualified High Recruitment and deployment of qualified PMU procurement staff at procurement staff from neighboring countries if World Bank national level needed. Staff 4 Very slow and frequently Substanti Technically and on the short term, there are no PMU disrupted internet access al mitigation measures, except using a dedicated World Bank does not always allow computer at the World Bank’s Country Office to Country Office Page 43 of 65 The World Bank Guinea-Bissau - Rural Transport Project (P161923) Responsible and Time Severit Frame y and (All Actions to # Issue/Risk Impact Mitigation Measures Be Taken on within the Project First Year of the Loan Approval) PMU to use Systematic enter the data in STEP. Tracking of Exchanges in Procurement (STEP) to request World Bank’s no- objection 6 Frequent rotation of key Substa PMU staff and political ntial Planned procurement of goods and services by World Bank uncertainty affect project avoiding last minute requests. Country Office implementation 7 Lack of experience in High Regular quality training in World Bank’s PMU/World World Bank’s procurement procurement procedures. Induction of regular Bank procedures procurement capacity enhancement training for both staff on the World Bank’s New Procurement Framework. 8 Awarding contracts High Elaboration of international bidding documents PMU/DGIT for rural road works Works: Limited number of local companies technically qualified in terms of equipment and personnel and likely to be interested 9 Works execution High Set up a steering committee to overcome any Minister of - Delay in obstacles that may arise during project Public Works compensation to the implementation people affected by the project - Political and social crisis - Administrative bureaucracy 10 Collusion between Substa Ensure widespread advertising. PMU contractors during the ntial Delete criteria that are too restrictive. preparation and Check with the evaluation that the prices are submission of bids competitive. 11 Errors in the definition of Low Use standard technical specifications or have PMU technical specifications. them validated by a consulting firm or the technical department concerned, in the preparation phase of the technical bidding document. Actively involve the DGIT technical department Page 44 of 65 The World Bank Guinea-Bissau - Rural Transport Project (P161923) Responsible and Time Severit Frame y and (All Actions to # Issue/Risk Impact Mitigation Measures Be Taken on within the Project First Year of the Loan Approval) to identify the needs for geotechnical, hydraulic, environmental, etc. studies. 12 Award of the contract Low Ensure conformity and quality control of the PMU based on falsified evaluation reports and all other related information or under documents, before transmission for opinion to political pressure. the General Direction of Public Procurement. 13 Limited number of High Ensure wide international or sub-regional PMU companies, notably for the advertising and encourage outsourcing to local road works. companies. 14 Delayed payment of bills Low Once the invoice has been certified as compliant Contractors, and has the "Coupon to Pay", the payment will suppliers, and be made within a period usually not exceeding service one week. Subsequently the processing time will providers be specified in the PIM. Procurement Plan 17. The Borrower has prepared the PPSD which formed the basis for a procurement plan for the first 18 months of the project’s life and which also provides the basis for the procurement methods. This plan was agreed between the Borrower and the project team and will be available at the PMU. It will also be available in the project’s database and on the World Bank’s external website. The procurement plan will be updated by the project team annually or as required to reflect the actual project implementation needs and improvements in institutional capacity. The Borrower shall submit to the World Bank, for its review and approval, any updates of the procurement plan approved by the World Bank. The Borrower shall use the World Bank’s online tool STEP to prepare, clear, and update its procurement plan and conduct all procurement transactions. Procurement arrangements and value for money 18. The procurement arrangements provided under the PPSD for this project aim at attaining value for money in the procurement of goods, and services under the project. 19. The main investment interventions under the project are for the rehabilitation of about 60 km of unpaved trunk road and about 50 km of connecting unpaved feeder roads. 20. Consultancy services are the following: (i) supervision of civil works; (ii) development of a national plan of transport and logistics; (iii) TA on road projects, maintenance, and safety; and (iv) GBV prevention and response to be carried out by a local and qualified NGO National Network to Fight Gender-Based Violence and Violence Against Children (Rede Nacional de Luta contra Violência Baseada no Gênero e na Page 45 of 65 The World Bank Guinea-Bissau - Rural Transport Project (P161923) Criança, RENLUV) because of its involvement and knowledge of local issues, community needs, and participatory approaches. Procurement risk analysis 21. In the PPSD prepared for the Rural Transport Project, a risk analysis of the procurement and associated services was carried out and risks were identified. Based on the identified risks, measures are proposed to mitigate the risks associated with the procurement of works, goods and services. The local market for some critical activities of the project is not considered competitive since there are a limited number of qualified local enterprises. Local NGOs should however be involved to manage prevention and response to GBV. 22. The Minister of Public Works and the DGIT have previous experience in implementing road projects. Nevertheless, there is still a risk in properly implementing procurement activities as per the agreed World Bank procurement procedures due to a lack of personnel proficient in procurement, a high level of staff turnover, and political instability. To address the risk related to limited proficiency, the PMU has hired a procurement officer and staff shall be provided with quality training on World Bank procurement procedures. Offering of regular training is also important to mitigate the risk of high staff turnover. Procurement arrangements 23. The procurement arrangements for the high or substantial risk contracts within the project are provided in the table below. The procurement plan for the project is agreed with the Client and is provided in the PPSD. Table 1.5: Procurement arrangements for the high and substantial Risk Contracts Contract Title, Description Risk rating World Procurement Selection Evaluation and Category Bank Approach / Methods Method Oversight Competition Rehabilitation of about High Prior International RFB Lowest 60 km of unpaved trunk Evaluated road and 50 km of Cost unpaved feeder roads Supervision of civil works Substantial Prior Open RFP Technical and financial scores combined Development of a national Prior Open RFP Technical and plan for transport and financial Substantial logistics scores combined Technical assistance on Prior Open RFP Technical and road project management, financial Substantial maintenance, and safety scores combined Note: RFB = Request for Bids, RFP = Request for Proposals Page 46 of 65 The World Bank Guinea-Bissau - Rural Transport Project (P161923) Procurement management 24. The PMU, which reports directly to the DGIT within the Ministry of Public Works, Construction and Urbanism will be responsible for procurement implementation under the project. The PMU has recruited a Procurement Officer, who will work closely with the Accredited Procurement Specialist of the World Bank Office. The Procurement Officer will benefit from procurement clinics and training organized by the World Bank or other recognized institutions to become familiar with the World Bank’s new procurement framework. The Procurement Officer will be technically supported by an expert / consultant recruited under the project. Record keeping system 25. All procurement documents have been temporarily kept in the office of the Project Coordination Unit of the Rural Community-Driven Development Project until now but should now be relocated to the new PMU’s office. Risk rating 26. The Procurement Risk Assessment System Questionnaire was completed in September 2017 and updated in April 2018. The overall procurement risk related to the PMU has been rated high. Oversight 27. The World Bank would provide oversight of procurement activities through prior reviews, which would be based on the risk level assessed during appraisal and would be updated annually. Based on the risk rating, the Borrower would seek the World Bank’s prior review for contracts of values detailed in the table below. In addition, the PMU would (i) appoint an independent procurement auditor to have the procurement activities of the project audited annually and (ii) submit the procurement audit report to the World Bank for its review. Table 1.6: Prior Review and Procurement Approaches and Methods Thresholds (in US$ million) Procurement Methods Thresholds Prior Review Threshold Short List of National Category Open Open RFQ Consultants International National Consulting Engineering Services and Construction Supervision Works ≥5.0 ≥3.0 <3.0 ≤0.2 n.a. n.a. Goods, IT, and non- ≥1.5 ≥0.3 <0.3 ≤0.1 n.a. n.a. consulting services Consultants (Firms) ≥0.5 n.a. n.a. n.a. ≤0.2 ≤0.2 Individual ≥0.2 n.a. n.a. n.a. n.a. n.a. Consultants Note: RFQ = Request for Quotations Page 47 of 65 The World Bank Guinea-Bissau - Rural Transport Project (P161923) Annex 2: Mitigating and Responding to GBV, including SEA 1. The project’s approach to mitigate GBV risks, including SEA risks, is based on the lessons learned from other projects and the World Bank’s “Good Practice Note for Addressing GBV in IPF involving Major Civil Works” (September 2018)25 and “Labor Influx Guidance Note” (December 2016).26 A specialized NGO will be recruited to implement GBV and SEA prevention measures identified for the project. The measures, roles, and responsibilities for addressing GBV risks under the project’s phases are described in the Table 2.1 below. Risk assessment Country context 2. Guinea-Bissau women face many forms of gender discrimination, bias, and denial of human rights as the country emerges from years of government instability and institutional failure.27 The National Policy for Gender Equality and Equity (PNIEG) found that women and girls had been especially disadvantaged by years of political crisis and were considered to a secondary status in all spheres of household, community, and national life.28 The PNIEG also found that women and girls had limited access to scarce resources such as credit and land, as well as education, and that they had. to assume the double role of performing the tasks of housewives while having to feed their families. As a result, they often run small businesses in the markets to contribute to their household income. In addition, women and girls were also found at risk of maternal mortality and abuses such as domestic violence, female genital mutilation, and early and/or forced marriage.29 3. Gender roles continue nonetheless to be strongly influenced by cultural and religious beliefs. There are three official religions: animism (40 percent), Islam (50 percent) and Christianism (10 percent). The 2015 Country Gender Profile30 reports that religious beliefs have been used to justify the inferior status of women, including for the acceptance of violence against women and the practice of female genital mutilation. Also, the report notes that most Bissau-Guineans live in rural settings where ethnic group traditions have beliefs and practices that restrict women’s roles and rights. According to the country laws (article 1674 of the civil code), family structure is based on a patriarchal model, whereby the husband is the head of the household and does represent his wife in public, and (article 1686 of the civil code) wives are impeded from engaging in trading activities without the husband’s consent. In some ethnic groups customary laws do not allow women from inheriting property, which would instead pass to a male heir. Some groups practice widow inheritance by which widowed women marry a male relative to the deceased husband. The results of the 2010 MICS survey (MICS-4/IDRS-2010) found that 50 percent of women in unions are in polygamous marriages.31 25 http://pubdocs.worldbank.org/en/399881538336159607/Good-Practice-Note-Addressing-Gender-Based-Violence.pdf 26 http://pubdocs.worldbank.org/en/497851495202591233/Managing-Risk-of-Adverse-impact-from-project-labor-influx.pdf 27 Country Gender Profile: Guinea-Bissau, AfDB Group, 2015. 28 Politique nationale pour l’égalité et l’équité entre les hommes et les femmes ( Política Nacional para a Promoção da Igualdade e Equidade de Género), 2014. 29 Country Gender Profile: Guinea-Bissau, AfDB Group, 2015. 30 Ibid. 31 Deuxième Document de Stratégie Nationale pour la Réduction de la Pauvreté (DENARP II).2011-2012. République de Guinée- Bissau. Ministère de l’Économie, de la Planification et de l’Intégration Régionale. Page 48 of 65 The World Bank Guinea-Bissau - Rural Transport Project (P161923) 4. Health and education outcomes are particularly poor for women. In a 2012 study, it was estimated that 43 percent of girls enrolled in primary school dropped out before completion, and only 19.9 percent of girls attended secondary school as compared to 27.3 percent of boys.32 Pregnancy and early marriage were the most common reasons for girls to drop out of secondary school (17 percent and 17.2 percent respectively) while boys mostly drop out for work (38.6 percent). 5. The lack of proper sanitary facilities and long distances to school are barriers to educational participation, especially for girls. The 2015 Country Gender Profile estimated that, depending on the region, between 14 percent and 20 percent of girls had to travel 60 minutes or more to reach a school. The average net rate of enrollment in secondary education for the period 2008-2012 was 27.3 percent for boys and 19.9 percent for the girls.33 In 2010, Guinea-Bissau had the 7th highest maternal mortality rate in the world, that is partly due to the lack of transport to health centers, according to a Ministry of Health report, but also to the low quality of care provided. The 2015 African Development Bank (AfDB) Guinea- Bissau Gender Profile indicates that “roads in rural areas (…) are unpaved and pot-holed and transport is limited, making access to any health facilities that exist all but impossible, especially for pregnant women”. Women point out that better transport infrastructure is essential for them to save time, be more productive, and to provide relief to their physical burdens.34 6. A 2010 ILO report showed that a high percentage of women in Guinea-Bissau engage in economic activity, with over 80 percent of women over age 15 being economically active, but still at an economic disadvantage. Many engage in agriculture, specifically cashew farming, but also fish vending, both of which can benefit from better transport infrastructure. There are food gardens in several villages, managed mostly by women who have their gardens either around water sources (ponds, wells, or boreholes) or in their own compound. Vegetables such as okra and tomatoes are intercropped with the main field crops. Women make up over half of those engaged in the informal sector and are involved in cross-border trade with Guinea and Senegal. Evidence presented in the SCD shows that women do not benefit as much as men from the economic returns even though about half of the cashew workforce is female. Cashews account for 26 percent of income (net of remittances) for female-headed households compared to 35 percent for male-headed households.35 Providing alternative job opportunities for women would contribute to women’s revenue diversification. GBV risks identified under the project 7. Violence against women is widespread and socially accepted.36 The most common form is domestic violence perpetrated by spouses and intimate partners. A study conducted in 201137 indicates that reported cases are highest in Bissau, Bafata, Gabu and Oio. Among women surveyed, 44 percent indicated having been victims of physical violence and 43 percent of sexual violence. The respondents gave the following factors as contributing to their experience of violence: 49 percent said that women are 32 Deuxième Document de Stratégie Nationale pour la Réduction de la Pauvreté (DENARP II).2011-2012. République de Guinée- Bissau. Ministère de l’Économie, de la Planification et de l’Intégration Régionale. 33 Country Gender Profile: Guinea-Bissau, AfDB Group, 2015. 34 Ibid. 35 ILAP 2010 (Inquérito ligeiro para avaliação da pobreza Guiné-Bissau, 2010), República da Guiné-Bissau, Ministério da Economia, do Plano e Integração Regional. 36 PNIEG 2014, Plano Nacional de Accao 2011, Roque 2011. 37 Roque 2011 Page 49 of 65 The World Bank Guinea-Bissau - Rural Transport Project (P161923) considered inferior to men; 34 percent that the Government does not defend or protect victims; and 33 percent that women do not have economic assets. 8. Despite high levels of domestic violence in the country, the GBV risk for the project is considered low. This evaluation is based on the World Bank’s GBV risk assessment tool.38 It is anticipated that the project will not lead to a significant influx of male workers in the project areas, with an approximate 250 workers that will be mobilized during implementation of the project, but likely most of them hired from the local communities. The key determinants of the low risk rating are the legal context, the absence of conflict or humanitarian situation, the virtual absence of GBV-related concerns raised by the local population during consultations about the project, and the relative ease of supervision due to the small size of the project area and its proximity to the capital Bissau (about 100 km). Legal framework for addressing GBV 9. Guinea-Bissau has adopted a set of laws and regulations that provide guarantees of right and protection for women.39 The latest being the Gender Parity Quota Law adopted on September 12th, 2018 by the National Assembly that will allow women to get a fairer representation in political office. The country also has a PNIEG and has adopted the Convention on the Elimination of All Forms of Discrimination against Women (CEDAW). Ministries and institutions in charge of implementing the CEDAW include the Ministry of Women, Family and Social Cohesion, the Ministry of Education, the Ministry of Justice, local authorities, the Judicial Police, the Institute of Mother and Child (IMC), as well as the Special Committee on Women and Children's Issues and the National Assembly.40 The Gender Theme Group (GTG) of the UN Bureau for Consolidation of Peace in Guinea-Bissau (BINUGBIS) ensures the coordination and dissemination of strategies and gender programs implemented by various UN agencies such as UNDP, UNFPA, UNICEF and UN Women. Information campaigns at the national level funded by international organizations such as Plan International, SwissAid, UNICEF, UN Women, and the EU have also taken place. 10. Despite the adoption in 2013 of a law against domestic violence, the PNIEG cites three factors that may deter women from seeking legal recourse: (a) the ignorance or lack of information of women about laws prohibiting violence as well as their legal rights; (b) the fact that state structures, especially the police, are not competent and have not been trained on matters related to violence against women; and (c) the lack of capacity of public entities, institutions and non-profit organizations in providing advice and protection for the survivors. There is also a lack of resources and capacity from the government institutions that play a crucial role for the promotion of gender equality. Stakeholder engagement and capacity to respond to GBV 38 A tool for task teams to assess the risk of GBV, particularly SEA, has been developed by the World Bank and can be found online. The tool helps tasks teams understand the issues and risks of GBV in the project areas. It takes into consideration both project-specific details, such as labor influx levels, as well as the country context where the project takes place—such as situations of conflict. Through 25 questions, 12 to be answered by the task team and 13 that are prepopulated, the tool draws on information to give each project a risk ‘score’ based on the responses to the questions. 39 Roque 2011. 40 National Policy for Promotion of Equality and Gender Equity. 2012-20015. BMI. Institute for Women and Child. Ministry of Family, Social Affairs and Solidarity. Page 50 of 65 The World Bank Guinea-Bissau - Rural Transport Project (P161923) 11. There are many organizations working to promote gender equality in Guinea-Bissau. The organizations surveyed include the following ones: PPM (Plataforma Política das Mulheres - Women’s Policy Platform), REMSECAO (Rede Paz and Segurança para as Mulheres do Espaço da Comunidade Económica dos Estados da África Ocidental - Peace and Security Network for Women of the Economic Community of West African States), RENLUV, AMAE (Associação das Mulheres com Actividades Económicas - Association of Women with Economic Activities), CNMT (Conselho Nacional das Mulheres Trabalhadoras - National Council of Women Workers), Plataforma of Organização de Sociedade Civil (Platform of Civil Society Organization) (Bafatá), Intervenção Feminina (Female Intervention) (Gabú), APALCOF (Associação das Produtoras Agricolas e para a Luta Contra o Fome - Association of Agricultural Producers and the Fight Against Hunger) (Contubuel), CNPN (Comite Nacional para o Abandono das Práticas Nefastas - National Committee for the Abandonment of Nefarious Practices), Djinopi, Sining Mira Nassiquê, and Voz di Paz. There are also associations dealing with specific aspects of the activities of women, for example women selling under the umbrella association of women economically active, namely AMAE. 12. In coordination with representatives from UN Women in Bissau, the project team has identified and reviewed the capacity of civil society organizations, including national NGOs, that are specifically active in the prevention and response to GBV. The main actor identified is the NGO RENLUV, a Bissau- Guinean network of organizations specializing in the fight against violence against women and children. RENLUV is a long-standing implementation partner of UN Women in Guinea-Bissau and the most representative civil society umbrella organization in fighting GBV. RENLUV has emerged out of a group of nine Guinean NGOs focused on human rights named 'Fight Against Violence Dynamics' in 2004. A year later a general assembly transformed this group into a network. The RENLUV network today is composed of 46 member organizations. RENLUV has focal points in all regions of the country and has promoted 40 vigilance committees in the regions of Bafata, Oio and Cacheu in order to increase the participation of women in decision-making processes as well as in conflict management and mediation. RENLUV has been an active partner in implementing several contracts with UN Women and with a good level of compliance with UN rules and procedures. RENLUV operates through a network of volunteers across the country and has regional offices, including in Ingoré, Mansabá and Bissorã in the project area. 13. The mapping of the service providers available in Bissau also showed that there are medical facilities that provide care in the project area as well as some support services in psychosocial care. There is one hospital in Mansoa and two health centers in Ingore and Farim that can provide the minimum health benefits package and GBV support services; and more than 10 centers for ambulatory care (only HIV/AIDS program). However, health services continue to be very expensive for women, and the fees charged in hospitals tend to dissuade patients from seeking appropriate services, making them resort to traditional medicine instead.41 Psychosocial care is provided through a network of female workers from both the formal and informal sectors. Mitigation, reporting and monitoring measures 14. Safeguards. The project’s safeguards documents (ESMF and ESIA/ESMP) have also been prepared to consider GBV/SEA risks and provide mitigations measures for addressing these risks. The ESIA/ESMP for the project, which covers 110 km of roads in the Cacheu and Oio regions includes specific recommendations for mitigating GBV/SEA risks and requirements to address these risks, as well as other 41 Civil Society Organizations Report for the Universal Periodic Review of Guinea Bissau 2010-2014. Page 51 of 65 The World Bank Guinea-Bissau - Rural Transport Project (P161923) ESHS risks. 15. Procurement process and contractor’s responsibilities. GBV risks will be addressed through the procurement process by setting specific requirements for the contracts of the works contractor and the supervision consultant. In practice, the bidding documents will reflect the findings and requirements of the ESIA/ESMP to address GBV risks and other ESHS risks and occupational health and safety (OHS) risks. As road works under the project will induce some labor influx, there is a risk of GBV, in particular SEA incidents. To mitigate this risk, labor influx will be minimized and the contract documents for works and supervision will require that all workers adhere to a code of conduct (CoC) and that GBV mitigation measures are included in the Contractor’s Environmental and Social Management Plan (C-ESMP). Bidding documents will clearly define GBV mitigation measure requirements and expectations, as well as the staffing requirements to ensure close and sustained attention to the mitigation of risks. 16. GBV support services. The project has identified the local NGO RENLUV with experience and expertise in GBV to train workers and inform communities to mitigate the risk of GBV, as well as to provide support funded by the project to survivors who request assistance and/or referrals to support services, as appropriate. RENELUV is a network of organizations that promotes awareness-raising, training, information, advocacy, prevention, protection and monitoring of GBV and child-based violence, as well as care, referral and follow-up of cases. Services provided include psychological, legal and medical support to survivors. Preliminary consultations with RENLUV indicated that, in the project area, women and girls can be exposed to domestic violence, early marriage and female genital mutilation. 17. Establishing GBV-specific protocols in the GRM and community participation. The proposed project’s GRM will have multiple channels to ensure that GBV-related complaints are registered in a safe and confidential manner. The GBV dimensions of the GRM will be handled by the NGO RENLUV in coordination with the PMU to ensure that any GBV complaint receives immediate care and appropriate referral in a confidential and survivor-centered approach. RENLUV will provide training to village focal points who will serve as entry point for GBV survivor communication and referral support in the project area. RENLUV will also be required to adequately and promptly address, in coordination with the PMU, any potential grievance from survivors of GBV. 18. Capacity building, community dialogue and awareness raising. The project will finance capacity building for the PMU and DGIT on environmental and social safeguards. RENLUV will provide training on GBV aspects from risks assessment to GRM operational procedures. In addition, with support from RENLUV, the project will seek to promote behavioral change by organizing information campaigns that will aim to raise GBV awareness in the project area. Indeed, it was reported during project preparation consultations with RENLUV and UN Women that GBV grievances are often resolved amicably by village leaders in an informal way and not always in the best interest of the survivor. The campaigns will include information on GBV related legal rights and mitigation measures as well as the availability of a project GRM and referral services for GBV survivors. 19. Monitoring. The supervision consultant will be required to have adequate social and environmental expertise. The consultant will monitor the fulfilment of GBV-related obligations by the contractor in its C-ESMP that include a CoC and ESHS and OHS standards. The NGO RENLUV will also monitor regularly that provisions and responses to GBV are put in place by the contractor and functioning. Page 52 of 65 The World Bank Guinea-Bissau - Rural Transport Project (P161923) Table 2.1: Actions to address project-induced GBV risks No. Phase Action to Address GBV Risks Timing for Who is Status at appraisal Action Responsible for Action 1. Identification Sensitize the Ministry of Public Works, • Preparation • Task Team • Complete for preparation stage /Appraisal Construction and Urbanism (DGIT) and the • Implementation • During the January 2018 preparation mission, PMU as to the importance of addressing GBV the task team briefed the director of DGIT on on the project, and the mechanisms that will GBV risks, especially SEA risks, and on the need be implemented. to set up a strong grievance mechanism with the involvement of one or several organizations specialized in addressing GBV-related grievances and with the capacity to provide services to survivors. • During the August 2018 and September 2018 preparation missions, the task team organized meetings between the local NGO RENLUV, the DGIT, and the newly formed PMU to reinforce the importance of addressing GBV in the project. The task team also presented the measures recommended by the World Bank’s Good Practice Note and draft codes of conduct and GBV action plan, in view of their adoption by the project. Page 53 of 65 The World Bank Guinea-Bissau - Rural Transport Project (P161923) No. Phase Action to Address GBV Risks Timing for Who is Status at appraisal Action Responsible for Action 2. Identification The project’s social assessment to include • Preparation • PMU for social • Complete /Appraisal assessment of the underlying GBV risks and assessment and • The task team used the GBV risk assessment tool social situation, using the GBV risk ESMP. in June 2018 and again in January 2019: the assessment tool to provide guidance and • Task Team for project risk was rated “low”. keeping to safety and ethical considerations GBV Risk • The consultant in charge of the project’s social related to GBV data collection. No Assessment assessment participated at the August 2018 prevalence data or baseline data should be Tool. meeting with the task team, RENLUV, the DGIT collected as part of risk assessments. and the PMU to ensure that the consultant would cover all dimensions of GBV in the assessment. • ESIA/ESMP prepared in November 2018 assessed GBV risks and social situation in the project area based on existing studies (e.g. country gender profile), public consultations with authorities and local communities, and estimated labor influx induced by project 3. Identification Map out GBV prevention and response • Preparation • PMU • Complete for preparation stage /Appraisal actors in project adjoining communities. This • Implementation • During the January 2018 preparation mission, should incorporate an assessment of the the task team met with UN Women to identify capabilities of the service providers to GBV prevention and response actors. UN Women provide quality survivor centered services recommended the local NGO RENLUV. The team including GBV case management, acting as a then met with RENLUV which presented its past victim advocate, providing referral services and ongoing programs, as well as its needs. to link to other services not provided by the • In September 2018, the World Bank social organization itself. safeguards specialist organized a round table with RENLUV to assess its capacity and carried out a field visit in the project area to localize other services providers. Subsequently, the PMU and the consultant in charge of ESIA/ESMP mapped out the GBV prevention and response actors in the project area. Page 54 of 65 The World Bank Guinea-Bissau - Rural Transport Project (P161923) No. Phase Action to Address GBV Risks Timing for Who is Status at appraisal Action Responsible for Action 4. Identification Have GBV risks adequately reflected in all • Preparation • PMU for social • Complete for preparation stage /Appraisal safeguards instruments (i.e., Project ESMP, • Implementation assessment and • GBV risks and possible mitigation measures are C-ESMP)—particularly as part of the (before civil ESMP. reflected in the ESMF. The PMU coordinator assessment in the ESIA. Include the GBV works • Contractor for raised the issue of GBV risks during public mapping in these instruments. commence) C-ESMP. consultations on the ESMF held in Bigene, Farim, and Bissora in March 2018. • GBV risks and proposed mitigation measures are reflected in ESIA/ESMP and were discussed during public consultations held in Ingore, Bigene, Farim, Bissora and Olossato in November 2018. • ESIA/ESMP will be included in bidding documents so that contractor reflects GBV risks and mitigation measures in its own ESMP (C-ESMP), which will have to be cleared before civil works can start. 5. Identification Develop a GBV Action plan including the • Preparation • PMU • Complete for preparation stage /Appraisal Accountability and Response Framework as • Implementation • The ESIA/ESMP for the project will include GBV part of the ESMP. The (before civil risk mitigation measures. The procurement contractor/consultant’s response to these works process will ensure that a GBV action plan is requirements will be required to be reflected commence) defined for the project, reflected in the C-ESMP, in their C-ESMP. and adhered to by contractors and supervision consultants. 6. Identification Review the PMU’s capacity to prevent and • Preparation. • Task Team • Complete for preparation stage /Appraisal respond to GBV as part of Safeguard • Implementation. • PMU will be trained and assisted by a specialized Preparation. local NGO to reinforce its capacity to prevent and respond to GBV Page 55 of 65 The World Bank Guinea-Bissau - Rural Transport Project (P161923) No. Phase Action to Address GBV Risks Timing for Who is Status at appraisal Action Responsible for Action 7. Identification As part of the project’s stakeholder • Consultations • PMU • GBV risks and project activities were discussed /Appraisal consultations, those affected by the project need to be during public consultations held for preparation should be properly informed of GBV risks continuous of safeguards documents. These consultations and project activities to get their feedback on throughout the were attended by a variety of stakeholders, project design and safeguard issues. project cycle, including women, youth and community leaders. Consultations need to engage with a variety not just during • During implementation, a specialized NGO will of stakeholders (political, cultural or religious preparation. carry out awareness raising campaigns towards leaders, health teams, local councils, social local population to sensitize them on GBV risks, workers, women’s organizations and groups project GRM, and referral pathways in case of working with children) and should occur at GBV incidents. the start and continuously throughout the implementation of the project. 8. Identification Make certain the availability of an effective Prior to PMU, but • During preparation, PMU prepared a note /Appraisal GRM with multiple channels to initiate a contractor discussed and describing the GRM in detail, including specific complaint. It should have specific procedures mobilizing. agreed upon procedures for complaints related to GBV. The for GBV including confidential reporting with with the Task description of the GRM will be included in the safe and ethical documenting of GBV cases. Team. PIM. • The specialized NGO selected to provide GBV support services will train village focal points to facilitate reporting of GBV incidents and adequate referral of GBV survivors in a swift and confidential manner. Page 56 of 65 The World Bank Guinea-Bissau - Rural Transport Project (P161923) No. Phase Action to Address GBV Risks Timing for Who is Status at appraisal Action Responsible for Action 9. Procurement Clearly define the GBV requirements and Procurement PMU • The project will use the latest version (October expectations in the bid documents. 2017) of the World Bank’s standard procurement documents for international competitive procurement, which will clearly define GBV requirements and expectations, as well as staffing requirements. These documents will be used to procure both the works contractor and the supervision consultant. The TOR of the supervision consultant will have specific requirements on GBV, along with the broader supervision requirements. • Draft bid documents and TOR will be reviewed by task team 10. Procurement Based on the project’s needs, the World Procurement PMU • GBV Codes of Conduct have been proposed for Bank’s Standard Procurement Documents adoption by the project. They will be included in (SPDs), and the PMU’s policies and goals, the bid documents and presented as define the requirements to be included in the requirements to be met by bidders. bidding documents for a CoC which addresses GBV. 11. Procurement The procurement documents should set out Procurement PMU • Draft bid documents will be reviewed by task clearly how adequate GBV costs will be paid team for in the contract. This could be, for example, by including: (i) line items in bill of quantities for clearly defined GBV activities (such as preparation of relevant plans) or (ii) specified provisional sums for activities that cannot be defined in advance (such as for implementation of relevant plan/s, engaging GBV service providers, if necessary) Page 57 of 65 The World Bank Guinea-Bissau - Rural Transport Project (P161923) No. Phase Action to Address GBV Risks Timing for Who is Status at appraisal Action Responsible for Action 12. Procurement Clearly explain and define the requirements Procurement. PMU • A special note to bidders will be issued with the of the bidders CoC to bidders before bid documents to highlight the requirements of submission of the bids. the codes of conduct 13. Implementation Review C-ESMP to verify that appropriate • Implementation. • PMU • Task team will assist the PMU in the review mitigation actions are included. 14. Implementation Review that the GRM receives and processes • Implementation. • Task Team. • The review of the GRM will be done with the complaints to ensure that the protocols are • PMU support of the specialized NGO being followed in a timely manner, referring • Public consultations will be carried out to ensure complaints to an established mechanism to design of GRM is culturally appropriate and review and address GBV complaints. follows a survivor centered approach. Village focal points will be trained to support reporting mechanism of the GRM. 15. Implementation Codes of Conduct signed and understood • Initiated prior to Contractor, • The specialized NGO will ensure proper contractor Consultant, dissemination and explanation of codes of • Ensure requirements in CoCs are clearly mobilization and PMU conduct to all workers with physical presence on understood by those signing. continued site. NGO will also inform surrounding • Have CoCs signed by all those with a physical during communities of existence of codes of conduct presence at the project site. implementation. • Supervision consultants will monitor that • Train project-related staff on the behavior workers have signed codes of conduct and been obligations under the CoCs. trained. Monthly supervision reports will be • Disseminate CoCs (including visual provided to PMU and task team. illustrations) and discuss with employees and surrounding communities. 16. Implementation Have project workers and local community • Implementation. • PMU, • The specialized NGO will provide this training on undergo training on SEA and SH. Contractors, SEA and SH at the same time as training on codes Consultants of conduct Page 58 of 65 The World Bank Guinea-Bissau - Rural Transport Project (P161923) No. Phase Action to Address GBV Risks Timing for Who is Status at appraisal Action Responsible for Action 17. Implementation Undertake regular M&E of progress on GBV • Implementation. • PMU, • M&E will be carried out through monthly reports activities, including reassessment of risks as Contractors, of supervision consultant and continuous appropriate. Consultants. monitoring of GRM by PMU supported by the specialized NGO Page 59 of 65 The World Bank Guinea-Bissau - Rural Transport Project (P161923) Annex 3: Maps Map 1: Regions of Guinea-Bissau and project area Map 2: Travel time to urban markets Page 60 of 65 The World Bank Guinea-Bissau - Rural Transport Project (P161923) Map 3: Health facilities Map 6: quintiles of absolute poverty Page 61 of 65 The World Bank Guinea-Bissau - Rural Transport Project (P161923) Map 4: Agricultural production for rice, cashew nuts, and all products Page 62 of 65 The World Bank Guinea-Bissau - Rural Transport Project (P161923) Map 5: Agricultural potential for rice, cashew nuts, and all products Page 63 of 65 The World Bank Guinea-Bissau - Rural Transport Project (P161923) Map 7: Farim Phosphate Mining project and trunk road of Rural Transport Project Page 64 of 65 The World Bank Guinea-Bissau - Rural Transport Project (P161923) Map 8: Roads to be improved by the project Page 65 of 65