Document of The World Bank REPORT No: 24356CM PROJECT APPRAISAL DOCUMENT ONA PROPOSED CREDIT IN THE AMOUNT OF SDR 45.20 MILLION (US$ 56.35 MILLION EQUIVALENT) TO THE REPUBLIC OF CAMEROON FOR DOUALA INFRASTRUCTURE PROJECT June 6, 2002 Country Department 7 Transport Unit Africa Regional Office CURRENCY EQUIVALENTS (Exchange Rate Effective April 23, 2002) Currency Unit = CFA Franc CFAF 730 = US$1 US$1.24862 = SDR 1 FISCAL YEAR January 1 - December 31 ABBREVIATIONS AND ACRONYMS CAC Centimes Additionnels Communaux (Municipalfiscal income) CAS Country Assistance Strategy EMP Environmental Management Plan ERR Economic Rate of Return FDA French Development Agency FY Fiscal Year ICB International Competitive Bidding IDA International Development Agency I-PRSP Interim Poverty Reduction Stratery Paper NCB National Competitive Bidding NPV Net Present Value SAC m Third Structural Adjustment Credit SOTUC Societe de Transports Urbains du Cameroun (Public Compoany for Transportation) UCD Urban Community of Douala SPN Supervision Vice President: Mr. Callisto E. Madavo Country Manager/Director: Mr. Robert Caiderisi Sector Manager/Director: Mrs. Maryvonne Plessis-Fraissard Task Team Leader/Task Manager: Mr. Abdelghani Inal CAMEROON DOUALA INFRASTRUCTURE PROJECT CONTENTS A. Project Development Objective Page 1. Project development objective 2 2. Key performance indicators 2 B. Strategic Context 1. Sector-related Country Assistance Strategy (CAS) goal supported by the project 2 2. Main sector issues and Government strategy 2 3. Sector issues to be addressed by the project and strategic choices 7 C. Project Description Sumnimary 1. Project components 7 2. Key policy and institutional reforms supported by the project 8 3. Benefits and target population 8 4. Institutional and implementation arrangements 9 D. Project Rationale 1. Project alternatives considered and reasons for rejection 9 2. Major related projects financed by the Bank and other development agencies 9 3. Lessons learned and reflected in the project design 10 4. Indications of borrower commitment and ownership 10 5. Value added of Bank support in this project 11 E. Summary Project Analysis 1. Economic 11 2. Financial 11 3. Technical 11 4. Institutional 12 5. Environmental 13 6. Social 15 7. Safeguard Policies 16 F. Sustainability and Risks 1. Sustainability 16 2. Critical risks 16 3. Possible controversial aspects 17 G. Main Loan Conditions 1. Effectiveness Condition 17 2. Other 18 H. Readiness for Implementation 18 I. Compliance with Bank Policies 18 Annexes Annex 1: Project Design Summary 19 Annex 2: Detailed Project Description 21 Annex 3: Estimated Project Costs 27 Annex 4: Cost Benefit Analysis Summary 28 Annex 5: Financial Summary 31 Annex 6: Procurement and Disbursement Arrangements 32 Annex 7: Project Processing Schedule 46 Annex 8: Documents in the Project File 47 Annex 9: Statement of Loans and Credits 48 Annex 10: Country at a Glance 50 Annex 11: Environmental Assessment 52 Annex 12: Government Policy Letter 77 MAP(S) 84 CAMEROON DOUALA INFRASTRUCTURE PROJECT Project Appraisal Document Africa Regional Office AFTTR Date: June 6, 2002 Team Leader: Abdelghani Inal Country Manager/Director: Robert Calderisi Sector Manager/Director: Maryvonne Plessis-Fraissard Project ID: P074490 Sector(s): TY - Other Transportation Lending Instrument: Specific Investmnent Loan (SIL) Theme(s): Transport Poverty Targeted Intervention: N Project Financing Data,, - ] Loan [X] Credit [ ] Grant [ ]Guarantee [ J Other: For Loans/Credits/Others: Amount (US$m): 56.35 (SDR 45.200) Proposed Terms (IDA): Standard Credit Grace period (years): 10 Years to maturity: 40 Service charge: 0.75% Financing,Plan (US$m): . Source' Lcal Foreign Total BORROWER 15.60 0.00 15.60 IDA 5.64 50.71 56.35 Total: 21.24 50.71 71.95 Borrower: REPUBLIC OF CAMEROON Responsible agency: MINISTRY OF PUBLIC INVESTMENTS; URBAN COMMUNITY OF DOUALA. Ministry of Public Investments and Regional Planning Address: Yaounde, Cameroon Tel: Fax: Email: dfotsing@minpat.gov.cm Other Agency(ies): Urban Community of Douala (UCD) Address: Douala, Cameroon Contact Person: Jean Yango, Director, Technical Services Tel: (237) 342 60 50 Fax: (237) 343 08 06 Email: Jeanyango@yahoo.fr Estimated Disbursements ( Bank FYIUS$m): FY 0 0 3 2004 2005> - 20067 ., 200 8 . Annual 1.32 5.08 8.70 12.76 14.48 14.01 Cumulative 1.32 6.40 15.10 27.86 42.34 56.35 Project implementation period: 6 years FY 2003-2009 Expected effectiveness date: 09/30/2002 Expected closing date: 12/31/2008 LO PMD F. I V. NW A. Project Development Objective 1. Project development objective: (see Annex 1) The Project aims to support the Government of Cameroon and the Urban Community of Douala (UCD) to improve the efficiency of Douala's transport system connecting the sub-regional port of Douala and its hinterlands (local, national, and sub-regional). This objective will be achieved through the implementation of an urgent program of rehabilitation of the degradated primary roads connecting the port and the industrial areas; and strengthening the capacity for urban road management and maintenance. Since the economic and transport reforms launched in 1996 after the 1985-95 recession, the city of Douala is recovering its position as the nation's capital for industrial activities and services, and the sub-regional capital for maritime traffic and trade. After the reforms of maritime transport and port operations, and privatization of land transports, the city of Douala needs an efficient transport system and an excellent interface with port/city and port/hinterland to complete the improvement of the whole transport chain and to increase urban, national, and sub-regional (Cameroon, Chad, Central Africa Republic, and Congo) productivity. To this end, in 2001, the UCD prepared a comprehensive traffic scheme, an urgent program of rehabilitation of the main roads to address the most critical urban transport issues, and signed a contract of objectives with the Government to improve the performances of its city management. The project aims to support these activities. 2. Key performance indicators: (see Annex 1) Progress will be monitored using the following key performance indicators: (a) 23 kms of primary roads rehabilitated in Douala; (b) travel times on the rehabilitated roads will be reduced by about 42% (4.7 million hours of cars time will be saved by year); and transport costs on the primary roads of Douala will be reduced by 42.3% (saving of CEAF 21 Billions per year); (c) Douala road maintenance budgets and expenditures; (d) an operational urban road management and maintenance unit in UCD; and (e) preparation and adoption of a sound urban sector policy, including urban transport and investment programs. B. Strategic Context 1. Sector-related Country Assistance Strategy (CAS) goal supported by the project: (see Annex l) Document number: IDA/R2000-95 and progress report Date of latest CAS discussion: June 15, 2000 One of the objectives of the 1996 CAS and the 2000 I-PRSP (IDA/SecM2002-007) is to maintain and develop the road network in both urban and rural areas and improve the port's efficiency and competitiveness. Based on these CAS and PRSP objectives and on the important role of the port and the city of Douala in the economy of Cameroon and the sub-region, the proposed project will support urgently needed improvement of the transport system and rehabilitation, management and maintenance of urban roads to enhance the competitiveness of the port and the city of Douala. 2. Main sector issues and Government strategy: -2 - The 1985-95 economic depression had a negative impact on the transport sector, reducing the volume of public investment and spending on infrastructure maintenance, leading to serious degradation of the transport infrastructure network and loss of competitiveness. The Transport Technical Assistance and the Transport Sector Project, initiated by the Government in 1996 and financed by several donors, launched sector reforms to improve the transport industry and made investments to rehabilitate the transport infrastructure: roads, railway, ports; and land, maritime and air transport. Road and railway transports were privatized and already the results achieved are significant; transport operation and infrastructure are improving dramatically. The port reforms have increased the efficiency of the port of Douala. However, the interfaces port/urban road networks and port/hinterlands have deteriorated in Douala, and have yet to be rehabilitated and adequately maintained. Current situation The city of Douala, with a population of 2 million inhabitants and an area of 300 sq kms, accounts for around 80% of Cameroon's industrial activities. Almost 100% of the port activities (about 6 million tons of traffic a year) for Cameroon, Chad, the Central Africa Republic, and Congo are also located in Douala. Only 450 kms of Douala's 1,800 kms roads are paved. An ambitious program of rehabilitation and new road construction in Douala launched in 1991 was hardly started, due to the economic recession; meanwhile urbanization and traffic have dramatically increased and both the resources of the UCD and the fund transfers from the central government to the UCD had declined sharply. Thus, significant deterioration of the road network has taken place due to the lack of repair and maintenance, especially of roads used by heavy trucks and that are the most important for economic activities. Traffic, especially from and to the port and the industrial areas (average daily traffic of 25,000 to 32,000 vehicles of which about 50% are buses and taxis and about 8% heavy trucks), has become very difficult, costly (average Economic Rate of Return of 76% for the road rehabilitation investment), and time consuming (car speeds of less than 10 to 15 km/hour) for workers, trucks, and goods, reducing the efficiency and competitiveness of the port, and tarnishing the reputation of the economic capital of Cameroon and the port of the region. The natural conditions of Douala (geology, weather, and topography) are very constraining and challenging for the infrastructure, requiring more frequent maintenance, at higher costs. The geological conditions are not well suited to road construction: bad soil with a high concentration of clay. The weather conditions are not better, with abundant rain (4 to 6 meters of rain per year), prone to lush vegetation, that even grows through concrete surfaces, and increases the need for maintenance works, particularly for drainage and sanitation systems. The topography is also problematic: the flat surface of the city prevents water from flowing normally. In addition to the bad natural conditions, the economic depression and the rapid and uncontrolled urban growth have contributed to the degradation of the road network. Until 1988, a certain economic prosperity offered investment capacity that enabled the city of Douala to plan its long-term development, such as an urban master plan in 1993. The Urban Community of Douala was created in 1987, at a time when the economic crisis that dramatically reduced its fiscal revenues was about to take place. Many of the projects identified as priorities for the city of - 3 - Douala, including the completion of the existing road network linking the urban extensions to the inner city, and improving the crossing of the Wouri river, were supposed to accompany a sustainable urban growth, but were delayed, and most of them remain moribond even today. The UCD had no funds (the cities produced 60% of the fiscal resources, and only 1% was transferred back to them) for the development or maintenance of the infrastructure, which suffered rapid and constant degradation; meanwhile the population, and therefore the number of vehicles kept increasing, without additional infrastructure to support growth. The last main reason for the degradation and in some areas the destruction of the road network is the function of certain roads and the traffic: many axes are used by very heavy traffic. It is known that the effects of heavy traffic are even more destructive on urban roads than on inter-urban roads because of the effects of mechanical shearing due to the low speed traffic, traffic congestion, and the many changes in direction. Urban growth is still increasing (it has reached an annual rate of 6-7%, and is expected to continue in the years to come), and Cameroon is recovering from its economic depression and the access to the port and industrial areas are strategic for economic growth, employment and poverty alleviation. Access of industrial areas There are four industrial areas in' Douala: three in the Eastem part (left bank of the Wouri), and one in Bonabrin - Western part of Douala (right bank). The access to the three eastern industrial areas depends on the "carrefour de Ndokoti". This junction was created in 1953, in the outskirts, as an access to the first industrial area. Today, without any remodelling or upgrading, it is the epicenter of the city, structuring the distribution and traffic in all the Eastern part of the city, and providing access to large industrial areas requiring heavy transport means. It is not well-adapted to the traffic and is permanently saturated. The Bonaberi industrial area has quite a few industries, most of which depend on the traffic conditions in the transit itinerary, including the Wouri bridge. The industrial areas are serviced by main axes that are in particularly bad condition; in some cases the pavement has entirely disappeared in large sections, causing mud flows during heavy rain. Port accessibility Four million tons of merchandises a year are transported by road to andfrom the port, using the deteriorated urban road network and two other million tons are transported by railway; 2.5 million tons are for export, mainly wood and agricultural products from Cameroon, Chad, Central Africa Republic and Congo. Most of the traffic with the province, the rest of the country, and the neighboring countries avoids the inner part of the city; it goes through the Eastern road to Yaounde and the "Boulevard Leclerc" before crossing the Wouri bridge towards the Western and Northern parts of the country. On this last axis, crossing Bonaberi often results in problems and serious nuisance. The case of the Wouri bridge The Wouri bridge is the only crossing point over this river in Douala. It enables both sides of the city to conmnunicate and ensures the traffic of goods coming from the West (bananas, various -4 - export goods, and gas) and from the industrial areas of Bonaberi (especially cement). It is equipped with two road lanes and one train track. Built in 1953, this pre-stressed concrete bridge has not been maintained for many years, and studies have evidenced probable degradations that represent major risks to its stability. As the collapse of this bridge would have dramatic consequences for Cameroon's economy, rehabilitation is urgently needed. The bridge carries a very significant volume of traffic and it is an essential point for the organization of the urban and national network. Before launching into the construction of a second bridge, upstream from this one, as recommended in the urban master plan of the city, it is necessary to ensure traffic contnuity. The existing bridge, which has an absorption capacity of 30,000 vehicles, should be reinforced by the UCD and made safer for users. Its rehabilitation, financed by the French Agency for Development, will increase the traffic on all roads linked to it, most of which are included in this project. Urban mobility The rapid urban growth and the degradation of the road network without any extension or maintenance of the existing infrastructure have made the transport of people and goods very difficult. After the liquidation of the urban transport public company, SOTUC, an entire market of public transportation opened, with the emergence of taxis and moto-taxis, contributing to a new type of congestion, with taxis parking everywhere, and mostly in the lanes reserved for circulation. Urban mobility has deteriorated sharply, and many people (especially the poor) cannot afford the transport of their goods or of themselves. Road safety and vehicle operating costs The poor road safety in Camneroon is mainly due to: (i) Defects and/ or absence of road signalling and lighting (pedestrians and vehicles are not always visible); (ii) disrespect of the traffic code; (iii) poor road conditions; (iv) chaotic parking of certain vehicles dangerous for vehicular traffic and pedestrians; and (v) vehicle conditions: the fleet of vehicles is very old. Moreover, the vehicle operating costs are extremely high because of the road conditions: it is possible to break an axletree while riding one of the main roads in Douala. People are reluctant to invest in new vehicles, and have to be constantly repairing the vehicles they own. The frequent need for vehicles repairs reduces the efficiency of the transport system, increases transport costs, and ultimately reduces competitiveness. Air pollution The bad condition of the roads forces drivers of the vehicles to use mostly their first and second gears, which represent the highest fuel consumption and gas ernission. Moreover, road users are not inclined to change or renew their vehicles given such a bad road network. Maintenance of the roads and the drainage systems Certain roads have suffered so much degradation, and have had so little maintenance, if any, that they have become too dangerous and have been closed to traffic. The situation cannot improve without complete rehabilitation, since most of the roads have gone past their life expectancy, and the tons of pozzolana and other materials dumped on the road to enable traffic to move have poured into the gutters and drainage system, blocking an already insufficient system. The - 5.- rehabilitation of certain road sections in the project is an urgent necessity: the infrastructure should be rehabilitated to provide the service that it was meant for; and this service must be continued after rehabilitation. Financial and institutional devices should be set up to guarantee the sustainability of the works and ensure maintenance. A contract on objectives, prepared with assistance of the FDA, has been signed on December 1999 by the UCD and the Government to provide an action plan for CUD finances improvement, set up of a road maintenance account, preparation of a multi year road maintenance program, coordination with other utility institutions using the road network, and institutional support. This has enabled the setting up of a road maintenance account, jointly replenished by the local communities and the Government, and the modalities of participation of the communities in infrastructure maintenance. Maintenance will also be required for the drainage system, to avoid flooding of houses along the roads, and the stagnation of water that could lead to health and sanitation problems. In the fiscal year 01/02 the Road Fund provided to UCD an amount of CFAF160 million and UCD allocated an amount of CFAF1,000 million for road maintenance. The UCD total budget of the FY 1999/2000 was CFAF12 billion, and the current expenditures CFAF6.7 billion. If the "Centimes Additionnels Communaux" (CAC) are transferred adequately by the Government to UCD, financing of road maintenance would not be an issue. In addition, the Government committed an amount of four billions CFAF to rehabilitate the most deteriorated and circulated segment of the Boulevard Leclerc. The Government and the UCD prepared an emergency rehabilitation program of the most strategic roads to unlock the port and the industrial areas of Douala, and to improve the road traffic, environment, and safety. This program would be supported by an improvement in UCD management, timely transfer of the legally due fiscal resources from the central government to the UCD, allocation of adequate resources for urban road maintenance including the drainage system, and efficient execution of maintenance. The Government and the UCD committed themselves to allocate the following amounts for road maintenance (Government Policy Letter dated February 1st 2002) during the following fiscal years (Base costs 2002, to be updated annually depending on the inflation rates in Cameroon) - 2002: CFAF 1,105 Million; 2003: CFAF 2,545 Million; 2004: CFAF 3,810 Million; 2005: CFAF 5,205 Million; 2006: CFAF 5,955 Million. A mechanism to secure funds for the replenishment of the road maintenance account will be set up by the Government before Credit Effectiveness. This mechanism will be based on the successful experience of the Road Fund. - 6- 3. Sector issues to be addressed by the project and strategic choices: The main sector issues to be addressed by the proposed project are transport efficiency (local, national and sub-regional), urban mobility in Douala, road rehabilitation of the primary urban roads, safety, environment, and building institutional capacity, including sustainable financing, and efficient management and maintenance of roads in Douala, including drainage system. The roles of the various ministries in charge of urban development, cities, and transport and roads, and the UCD should be clarified. Detailed social and environmental aspects, in addition to safety improvement, will be included in final subproject design and works execution. About 10% of the resources of the Road Fund, set up in 1999, are to finance urban road maintenance. This percentage should be reviewed based on studies to be carried out. The municipal resources should also finance maintenance of urban infrastructure, and traffic management units should be set up at the municipal level in the main cities to handle urban traffic and road network management and maintenance. Adequate transfer of resources from the central Government to UCD and close monitoring will ensure maintenance of the road network and project sustainability. The Policy Letter of the Government dated February 1st, 2002 spells out its policy on this subject. C. Project Description Summary 1. Project components (see Annex 2 for a detailed description and Annex 3 for a detailed cost breakdown): The project would consist of three components: (a) Execution of an urgent urban road rehabilitation program in Douala. The program would cover about 23 km of existing primary roads connecting the port and the industrial areas to the other districts of the city and to the intercity road network; the pavement will be rebuilt; intersections, sidewalks and the drainage system rehabilitated and improved; parking places for buses and taxis, traffic lights, road signs will be installed, and safety improved. (b) Provision of technical assistance for program implementation, audits and monitoring, project management, capacity building for urban road management and maintenance, and preparation of an urban development strategy and program for Douala and other cities, including city development strategies, and financial and organisational audits of UCD. (c) Support to the project unit, the PCC and the Environment Unit in the Ministry of Public Works for project implementation and monitoring. - 7- (a) Rehabilitation program Highways 58.13 80.8 46.50 82.5 (b) Technical Assistance, audits and Urban Transport 12.86 17.9 9.00 16.0 training (c) Support to PU, PCC and EU for Urban Transport 0.35 0.5 0.25 0.4 project implementation and monitoring (d) PPF Refinancing 0.60 0.8 0.60 1.1 Total Project Costs 71.94 100.0 56.35 100.0 Total Financing Required 71.94 100.0 56.35 100.0 2. Key policy and institutional reforms supported by the project: Promote improved management and financing of urban road maintenance in Douala. The project would introduce a new mechanism for road maintenance financing and execution in urban areas. This mechanism will help to mobilize and secure adequate resources for road maintenance and build the road management capacity of the city. 3. Benefits and target population: The project is designed to benefit the urban population at large, especially the users and operators of the transport system, the port, and the industrial areas. Major benefits would include: (1) reduced travel time and congestion; (2) reduced vehicle operating costs by the users of both freight and passenger vehicles; (3) improved road safety; (4) improved environment and reduced air pollution; and (5) improved management and maintenance financing of the urban road network. The project will also benefit producers, especially in the agriculture sector, making the transport of their production cheaper and faster. Target Population: Project benefits would accrue to three main groups. First, road users would benefit from traveling over a well-maintained network, especially buses and trucks which account for an estimated 20% of total road users. Second, the general population would benefit from the increased economic activity and trade between the economic and consumption centers served by the improved road corridors, and improved environment and safety. Third, the construction industry would benefit from the works to be implemented under the project which in turn would generate employment opportunities, many of them requiring medium and low skills, which are suited to the poor. -8 - 4. Institutional and implementation arrangements: The project will be implemented by the UCD, with appropriate technical support. The credit would be transferred as a grant by the Borrower to the UCD. A Project Coordinating Committee, including representatives of the UCD, the City Ministry, the Public Works Ministry and its environment unit, the Ministry of Finance, the Ministry of Investments, the Road Fund, and representatives of the Port of Douala and of the Industrial and transport unions would monitor project implementation. UCD will set up a project unit to ensure project implementation. This unit will include 3 highways engineers and an accountant and will be supported by technical assistance for works supervision and capacity building on road maintenance, and by a local accounting firm for financial management. A detailed financial and accounting procedures manual with an internal financial control, including an appropriate accounting plan, will be completed before Credit Effectiveness. The Credit special account and the project account will be opened on the name of the "Caisse Autonome dA'mortissement" (CAA) of the Ministry of Finance. The special Account will be opened at a commercial bank. All project payments by UCD will be made through the CAA. Project financial statements will be prepared every six months, and an independent auditor's opinion and report satisfactory to IDA will be provided every year. An annual audit of UCD will be also carried out. Project technical audits will be carried out annually. D. Project Rationale 1. Project alternatives considered and reasons for rejection: An Adaptable Program Loan was contemplated but abandoned as the program is an urgent program to avoid further damage in the existing road network that would paralyze the road traffic and the port of Douala. An urban project addressing other urban management and decentralization issues was also considered, but the preparation and adoption of a sound sector policy on urban development and city development strategies to guide the Government and donors interventions in the urban and municipal sector and the preparation of an urban program will require more time. These preparations will be carried out during the implementation of the proposed project, with a technical assistance subcomponent that will finance the needed studies. 2. Major related projects financed by the Bank and/or other development agencies (completed, ongoing and planned). . . J . , ,-Y.e *, > ; *- >, '',~ ','L>atXest Supevsi6on ~.˘ ,_._._.._-_____________._,_,_=_, . (aLnk-wflnacedAproJe&t ouiiy}; Sectorils6uei-.. Project:{sjaug Implementation Development Bank-financed Progress (IP) Objectie (DO) Road investment Fourth Highway Project Road construction Fifth Highway Project S S Road investment program Transport Sector Project S S Adjustment program Third Structural Adjustment S S Credit Technical Assistance Transport Technical Assistance S S Project l -9- Other development agencies European Union Several projects French Agency for Development Several projects African Development Bank Several projects IP/DO Ratings: HS (Highly Satisfactory), S (Satisfactory), U (Unsatisfactory), HU (Highly Unsatisfactory) 3. Lessons learned and reflected in the project design: The most significant lessons learned from the Transport Sector Technical Assistance Project (ICR No 20044, February 14, 2000) are the following: (a) Continuity in Bank support strategy, through successive projects (investments and macroeconomic or sectoral adjustments), is essential for supporting the different phases of reforms and for consolidating those achieved under previous projects. This project would consolidate and complete the reforms implemented under the Third Structural Adjustment Credit (SAC III), and the Transport Sector Project, especially those related to port reform and the Road Fund. (b) In the absence of adequate incentives, structural reforms could not have been implemented. This project would provide leverage for improving the financing and management of urban road maintenance. (c) Implementation of distinct phases of separate sub-sector reforms, each targeting a set of priority objectives, is more realistic for the UCD than the implementation of an integrated program with multiple objectives. Thus, the project objectives are limited to improving urban road management and maintenance, adapting the successful experience of the Road Fund. Other lessons learned from Cameroon and other countries consider that the financing of maintenance and appropriate management and execution of maintenance are the key elements for road projects sustainability. 4. Indications of borrower commitment and ownership: The Government has demonstrated a strong commitment to implementing the transport sector reforms. Several operations have already been initiated with donors, HIPC funds and the Road Fund to start the rehabilitation of the road network in Douala and improve the land transport system. The transfer of resources from the central Government to the UCD has dramatically increased. A special account for road maintenance has been set up at the UCD and this account is replenished regularly. The Road Fund has also mobilized and increased dramatically the allocations for urban road maintenance. The UCD has initiated, in addition to the studies carried out for improving the road traffic system and for the program of rehabilitation, several operations of road maintenance and drainage network cleaning. The commitment of the UCD and the Government to results and benchmarks are formalized in the contract of objectives they have agreed upon. The monitoring of this contract is financed by AFD. 5. Value added of Bank support in this project: IDA's participation in this project will help achieve the CAS and PRSP's objectives, and - 10 - consolidate the transport reforms already irnplemented for port operations and land transport. Improvement of Douala port operations, supported by the SAC III, depends also on the efficiency of its interface with land transport, especially so as the port of Douala plays an important role for regional integration as it also serves as the port for Chad, Central Africa Republic, and Congo. IDA supported the creation of the Road Fund which finances only part of urban road maintenance. Bank support in this project would ensure continuity of improvement in the whole transport chain, in addition to benefits from its experience in urban transport projects and capacity to leverage donors' financing support with policy reforms and capacity building in the sector. The Bank review of public expenditures and the set up of secure financing mechanism for road maintenance will ensure adequate transfers of funds to UCD for road maintenance. E. Summary Project Analysis (Detailed assessments are in the project-file, see Annex 8) 1. Economic (see Annex 4): * Cost benefit NPV=US$62.82 million; ERR = 32 % (see Annex 4) O Cost effectiveness O Other (specify) The cost benefit analysis has been conducted on the entire road network to be rehabilitated. The benefit of the project includes reduced vehicle operating costs and time saving costs, and the costs include investment, regular and periodic maintenance costs. The discount rate of 12% has been considered as the current discount rate in Cameroon and applied to the calculation of the Net Present Value (NPV). This analysis does not take into account the project's impact on the national and sub-regional economy. The result of the economic analysis shows that NPV of US$ 62.83 million and ERR of 32% for the entire network to be rehabilitated. The assumptions used for the calculation are very conservative and the indirect benefits to be brought to the non-rehabilitated road sections and to the economic activities of the city are not taken into account. Both NPV and ERR will be much higher if those indirect benefits are properly quantified and reflected in the calculation. It is therefore judged that the project is feasible. The sensitivity analysis also confirms the economic feasibility of the project. 2. Financial (see Annex 4 and Annex 5): NPV=US$ million; FRR = % (see Annex 4) NA Fiscal Impact: NA 3. Technical: The preliminary rehabilitation studies were carried out recently. The project consists of rehabilitation of existing roads and their drainage systems, improvement of intersections, and installation of road signs, traffic lights, and parking spaces for taxis and buses. The design for the pavement reconstruction is based on past experience. Other labor intensive alternatives for pavement such as paving stones or paving with concrete, will be considered during the preparation of detailed engineering studies for low traffic roads and parking. 4. Institutional: 4.1 Executing agencies: UCD is the executing agency. It has the minimum capacity to manage the road network and the project. UCD will set up a project unit to implement the project. 4.2 Project management: UCD will manage the project with the support of consulting finns for technical and financial aspects. A Coordinating Committee and the Environment Unit of the Ministry of Public Works will monitor project execution. 4.3 Procurement issues: UCD will handle procurement matters. Its procurement capacity will be enhanced by technical assistance (consultant in charge of works supervision). The new Cameroonian Decree on procurement (Decree 2002/030 dated January 28, 2002) allows the UCD to set up its own " Commission de passation des marches", and requests clearance from the national "Commission specialisee de contr6le des Marches". The Decree allows less than 14 days to the Conmmision de controle to provide its clearance or comments. Based on this rule, it is expected that procurement will be carried out without delay. However, if the legal durations for review are not respected, IDA will suspend the project untill appropriate actions are taken by the Borrower. 4.4 Financial management issues: The UCD will set up a small project unit (PU) to assure project implementation. The PU will be part of the "Services Techniques de la CUD". It will include an accountant and will be supported by a local accounting finn. The establishment of a good financial management system acceptable to IDA and the appointment of a qualified accountant is a condition for Credit effectiveness. A firm will be recruited to assist the UCD in setting up a reliable and efficient financial management system in the PU. Its mission comprises: (i) preparing administrative, budgetary, accounting, and financial procedures; (ii) assisting the UCD in choosing and installing the software; and (iii) supporting the PU in financial and accounting management during the first year of the project. A detailed financial and accounting procedures manual with an internal financial control, including an appropriate accounting plan, will be completed before Credit effectiveness. The special Account and the Project Account will be opened on the name of the Caisse Autonome. Project Counterpart funds will be mobilized annually up front (for project account and for road maintenance account replenishment). Financial reports produced would include: (a) financial statements expressed in CFAF (drawn up in accordance with generally accepted Cameroonian accounting practices); (b) financial statements for the project in US dollars, and in Special Drawing Rights; (c) reports on the Special Accounts; and (d) statements of expenditures. Reports will be produced in accordance with accounting principles acceptable to IDA (International Accounting Norms are acceptable to IDA). Financial statements would be produced each year. Project financial statements would be prepared every six months. An independent auditor's opinion and report satisfactory to IDA, on statements and reports will be provided within six months of the close of the fiscal year for the annual reports. Special Accounts, Project Accounts, and SOEs will be included in the audits and specifically addressed in - 12 - the audit reports. The auditor's report will also include a statement on the adequacy of the accounting systems and internal controls, the reliability of SOEs as a basis for Credit disbursements, and compliance with financial covenants. The foregoing accounting, financial reporting, and auditing arrangements should provide adequate and timely information to IDA for project supervision. Auditors acceptable to IDA, with TORs acceptable to IDA and in accordance with the Bank document "General Accounting Manual - Financial Information and Audits - FARAH" dated January 1995, will be appointed prior to Credit effectiveness. 5. Environmental: Environmental Category: B (Partial Assessment) 5.1 Summnarize the steps undertaken for environmental assessment and EMP preparation (including consultation and disclosure) and the significant issues and their treatment emerging from this analysis. The project consists of the rehabilitation of existing urban roads. The impact of the works is expected to imnprove the traffic conditions, safety, and reduce air pollution. The project is a straightforward infrastructure project of mainly repaving and rehabilitating the existing urban roads. For the rehabilitation of roads, earth from quames (existing or new) might be needed. Environmental Standard Operating Procedures developed by Environment Unit of the Ministry of Public Works for road construction will be applied to the project, including the presence of an environmental specialist for work supervision. The contractor has to include an environmental management plan (EMP) in the project design and in the program of works. This EMP should be approved by the Environmnent Unit. The discharge of waste oil from car engines is most likely one of the major pollutants in Douala. There are no feasible alternatives for existing urban road rehabilitation programs. Standard construction techniques will be used, as applied worldwide by road contractors. The quarries that would be used would be managed according to the rules established by the Direction d'environnement on the subject. The Environment Unit of the Ministry of Public Works for road construction will be fully involved in monitoring the environmental/social aspects of the rehabilitation works. A pilot approach will be tested to minimize the pollution caused by the discharge of waste oil from car engines through an analysis of feasible collection and recycling mechanisms. The project will improve road safety by several means, i.e., traffic lights, special areas for bus stops and taxi parking, and improvement of side walks. The Unit in charge of the road maintenance will handle the drainage network. In addition, the project will finance a study to review the solid and liquid waste management system for the whole city. Implementation of a solid and liquid waste management plan will be included in the upcoming urban management project. Air pollution is expected to be reduced as the consumption of gasoline will decrease with the improvement of the pavement and the vehicle speeds. However, this issue will be reviewed during the detailed engineering studies following the recommendations of the Urban Air Quality Management Initiative. - 13 - Key stakeholders are people living and having their businesses along the roads to be rehabilitated and other city road users and other transporters. The roads to be rehabilitated are major urban arteries. The Environmental Analysis for the project was made available for comments to the people located along the roads to be rehabilitated. Its availability was announced in the newspapers on January 7, 2002. The EMP was also sent to the Bank Infoshop on January I1, 2002. 5.2 What are the main features of the EMP and are they adequate? A separate Enviromnental Assessment (EA) is available and includes a simple and straightforward EMP. This EMP includes the environmental actions to be undertaken during project implementation, who will be responsible, the environmental and social monitoring arrangements, reporting mechanisms, and a budget to finance its implementation. The proper implementation of the EMP would be a legal requirement,- and be included in the legal documents. The final EMP was sent to IDA on March 13, 2002 The implementation arrangements for the execution of the EMP are already established by another World Bank-financed project with the Cameroon Ministry of Public Works (Roads Department) which have been judged satisfactory by World Bank environmental staff. 5.3 For Category A and B projects, timneline and status of EA: Date of receipt of fmal draft: EMP received by the Bank on January 3, 2002; disclosed in the country on January 7, and sent to the Bank Infoshop on January 11, 2002. Final report received on March 13, 2002 and sent to Infoshop. 5.4 How have stakeholders been consulted at the stage of (a) environmental screening and (b) draft EA report on the enviromnental impacts and proposed environment management plan? Describe mechanisms of consultation that were used and which groups were consulted? Consultation of public at large. The information and consultation regarding the execution of works and their environmental impact had been largely disseminated in the city houses of the Urban Commnunity of Douala, the local radio, TV, and newspapers. Public postages had also been in the streets of Douala. Records were opened in the city houses to allow the public to provide their feedback. The assessment of the feedback shows a very large and positive consensus and approval for the proposed works. The consultation, the first one for the CUD projects in Douala, was very well appreciated by the population of Douala. 5.5 What mechanisms have been established to monitor and evaluate the impact of the project on the environment? Do the indicators reflect the objectives and results of the EMP? Satisfactory environmental and social monitoring arrangements are being made and will be put in place to monitor the proper execution of the EMP. Environmental standard operating procedures have been developed for the road sector in Cameroon. These are at present being applied to all road rehabilitation and construction activities in Cameroon, including the monitoring of the environmental issues in the present project. - 14 - 6. Social: 6.1 Summarize key social issues relevant to the project objectives, and specify the project's social development outcomes. There are no key social issues. This project is expected to improve the living conditions of people living along these roads as well as the opportunities of small business people located along these roads. 6.2 Participatory Approach: How are key stakeholders participating in the project? Consultations with the transport unions, representatives of the industry sector, the Port of Douala, and traders were carried out during the prelimninary studies. 6.3 How does the project involve consultations or collaboration with NGOs or other civil society organizations? See above. 6.4 What institutional arrangements have been provided to ensure the project achieves its social development outcomes? Institutional arrangements for road management and maintenance. 6.5 How will the project monitor performance in terms of social development outcomes? Surveys and traffic studies. 7. Safeguard Policies: 7.1 Do any of the following safeguard policies apply to the project? ' - '> ' "'',',",', Policy i , ,,s ' z , S '"9" I''''Applicabilityl. Environmental Assessment (OP 4.01, BP 4.01, GP 4.01) * Yes 0 No Natural Habitats_OP 4.04, BP 4.04, GP 4.04 0 Yes 0 No Forestry (OP 4.36, GP 4.36) 0 Yes * No Pest Management (OP 4.09) 0 Yes 0 No Cultural Property (OPN 11.03) 0 Yes 0 No Indigenous Peoples (OD 4.20) 0 Yes 0 No Involuntary Resettlement (OPIBP 4.12) 0 Yes * No Safety of Dams (OP 4.37, BP 4.37) 0 Yes 0 No Projects in International Waters (OP 7.50, BP 7.50, GP 7.50) 0 Yes 0 No Projects in Disputed Areas (OP 7.60, BP 7.60, GP 7.60)* 0 Yes * No 7.2 Describe provisions made by the project to ensure compliance with applicable safeguard policies. The Ministry of Public Works, with support from the World Bank and the.European Union, has prepared a set of environmental recommendations and guidelines to be used in road design, construction, and maintenance. In addition, the project sponsors have prepared an Environmental Assessment and an EMP which describes the environmental management measures to be implemented during project construction. - 15 - F. Sustainability and Risks 1. Sustainability: The sustainability of this project depends on adequate financing and execution of urban road maintenance. Financing is related to the sustainabiity of: (i) the Road Fund, and thus to the consumption of petroleum products, the road user taxes, the collection of these taxes, their transfer to the Road Fund, and allocation of sufficient funds from the Road Fund for urban road maintenance; (ii) transfer of other taxes and funds from the central Government to the municipalities and to the UCD, especially for urban road maintenance; and (iii) the set up of replenishment mechanism of the road maintenance account. The Road Fund created in 1999 is operating very well, as the consumption of petroleum products increased with the recovery of the economy, and the taxes are collected and allocated regularly. Transfer of the taxes "additional centimes" from the central Govermment to municipalities has improved with the economic recovery. The UCD is willing and has agreed to strengthen the transport and road management unit and improve road maintenance. The road maintenance account, set up by UCD, is similar to the Road Fund. Its adequate replenishment by the Government and the UCD with a secure mechanism, and the improvement of urban road management will insure the sustainability of the project. 2. Critical Risks (reflecting the failure of critical assumptions found in the fourth column of Annex 1): Risk . 4ii. k- , RlskRatn .it latIon Measure- From Outputs to Objective Inadequate allocation of funds for S PIP, Budgets, Public Expenditure Reviews, maintenance secure mechanism of replenishment of the road maintenance account, and Road Fund Reviews by IDA and IMF mitigate this risk Inefficient execution of road maintenance M Strengthening UCD capacity, supervision and use of competent consultants Insufficient capacity of the road M Provision of technical assistance if needed to management unit enhance the unit capacity From Components to Outputs Non-allocation of project counterpart S PIP, Budgets, and Public Expenditure Reviews funds on a timely manner Funds mobilized up front, annually. Environmental and social aspects not M Project design and bidding documents will addressed include these aspects, and close supervision by the Environment Unit of the Ministry of Public Works Overall Risk Rating M Risk Rating - H (High Risk), S (Substantial Risk), M (Modest Risk), N(Negligible or Low Risk) 3. Possible Controversial Aspects: None. - 16 - G. Main Loan Conditions 1. Effectiveness Condition The Project conditions of effectiveness are: - The Project Account has been opened and replenished with the initial deposit of CFAF 1,000,000,000; - UCD has adopted a Project Implementation Manual, including financial management procedures, acceptable to IDA; - JUCD has hired an accounting firn, acceptable to IDA, for project financing management and set up an appropriate system for project finance management; - Appointment by UCD of auditors acceptable to IDA; - Submission by UCD of bidding documents for the civil works to be carried out under the Project, in form and substance satisfactory to IDA; - The Consultant for work supervision and control and technical assistance has been appointed by UCD; - The subsidiary agreement between the Borrower and UCD transferning the Credit funds as grant to UCD has been signed; and - UCD has established the Project Unit as part of its technical services, with fuctions for the implementation of the Project acceptable to IDA, and a Project Unit Manager, a Financial Specialist, a Procurement Specialist and two Civil Engineers. 2. Other [classify according to covenant types used in the Legal Agreements.] - UCD will maintain the Road Maintenance Account on terms and conditions satisfactory to IDA; - Not later than November 30, 2002 the Borrower will deposit into the Road Maintenance Account an amount equivalent to CFAF 1,105,000,000; - Thereafter, the Borrower will replenish such account with an amount satisfactory to IDA, and sufficient for and applied to the financing of maintenance of the roads included in the Urban Roads Network of Douala. H. Readiness for Implementation 1z 1. a) The engineering design documents for the first year's activities are complete and ready for the start of project implementation. OI 1. b) Not applicable. 1 2. The procurement documents for the first year's activities are complete and ready for the start of project implementation. 1 3. The Project Implementation Plan has been appraised and found to be realistic and of satisfactory quality. OI 4. The following items are lacking and are discussed under loan conditions (Section G): An interim Project Implementation Manual has been reviewed during appraisal and the framework for the final Manual has been approved. The existing technical studies allow the Prequalification of contractors to be finished before effectiveness. Detailed engineering studies will be ready by effectiveness. - 17 - Technical assistance for finance management, procurement, and technical aspects will be recruited and operational befor effectiveness. Several studies on urban development will be launched before effectiveness, based on the results of the ongoing sector work on urban development. 1. Compliance with Bank Policies 1 1. This project complies with all applicable Bank policies. O 2. The following exceptions to Bank policies are recommended for approval. The project complies with all other applicable Bank policies. Project audit contracts are under category "Services" for procurement and disbursement percentage reasons. ,;sL~~~ A L C4 Abdelghani Inal M, voe s s-Fraissard Robert Calderisi Team Leader SflorManager/Director Country Manager/Director - 18 - Annex 1: Project Design Summary CAMEROON: DOUALA INFRASTRUCTURE PROJECT. Sector-related CAS Goal: Sector Indicators: Sector/ country reports: (from Goal to Bank Mission) Maintain and develop the Status of the networks Sector reports Programming would not focus road network in both urban Expenditures on road Public Expenditure Reviews on the poorest regions. This and rural areas. maintenance. risk could be mitigated by balancing the programming between economic growth and poverty-alleviation subprojects. Funds for counterpart and for maintenance would not be made available. This risk is mitigated by the Public Expenditure Reviews and secure mechanisms of financing. Improve port efficiency and Transport costs and transit Port management and traffic Improvement will not directly economic competitiveness time reduced (indicators data (audits) benefit the poor. monitored through the SAC IlI Project) Project Development Outcome I Impact Project reports: (from Objective to Goal) Objective: Indicators: Improve the efficiency of 23 Km of primary roads Supervision (SPN) reports, Other important roads not Douala's transport system rehabilitated technical and financial audits rehabilitated or maintained. connecting the port and the Travel times on the main surveys A follow-up urban project will industrial areas and their roads reduced by 42% after be prepared focusing on the hinterlands rehabilitation whole network and on the Vehicle operating costs poorest neighborhoods. reduced by 42.3% after roads rehabilitation Strengthen urban road Institutional framework SPN, audits Insufficient maintenance management and maintenance enhanced (funding and execution) Maintenance financing secured (Budgets and expenditures) see para. below Competent staff recruited in the road management unit (at least 3 highways engineers) Output from each Output Indicators: Project reports: (from Outputs to Objective) Component: Urban roads rehabilitated 23 Km of main roads SPN, audits Other roads connecting the port and industrial area to their hinterlands are not rehabilitated Technical Assistance Staffing: finance, SPN, audits Road management not procurement and technical strengthened Urban strategy and specialists Upgrading activities for the investment program whole city are not possible Studies carried out on institutional aspects, city development strategies, slum upgrading, provision of basic services to the poor,... Project Components I Inputs: (budget for each Project reports: (from Components to Sub-components: component) Outputs) Road Rehabilitation 58.13 (46.50) SPN, audits Counterpart funds not available Technical assistance 12.86 (9.00) SPN, audits Support for implementation 0.35 (0.25) SPN, audits and monitoring (lJS$million) ( ) IDA financed Replenishment of the Road Maintenance Account and expenditures on road maintenance during the following fiscal years: 2002: CFAF 1,105 Million; 2003: CFAF 2,545 Million; 2004: CFAF 3,810 Million; 2005: CFAF 5,205 Million; 2006: CFAF 5,955 Million; and the following fiscal years CFAF 6,000 Million per year. - 20 - Annex 2: Detailed Project Description CAMEROON: DOUALA INFRASTRUCTURE PROJECT. Detailed Description The city of Douala, with a population of 2 million inhabitants and an area of 300 sq kms accounts for around 80% of Cameroon's industrial activities. Almost 100% of the port activities (about 6 million tons of traffic a year) for Cameroon, Chad, and the Central Republic of Africa, are also located in Douala. Only 450 kms of Douala's 1,800 kms of roads are paved. The roads in the city are mostly in poor condition, due to heavy traffic; very hot and humid weather, marked by a lot of rains; and a lack of financial resources for maintenance since the economic depression. The lack of resources has caused the neglect of maintenance of roads and the drainage and sanitation systems. The increase in traffic without any construction of new roads has caused heavy traffic congestion, especially with the increase of road deterioration. The current situation of the main roads connecting the port and the industrial area to their hinterlands inhibits the transport of people and goods from and to the port and the industrial areas, all the more since some excessively deteriorated road sections have been closed to traffic. With the support of the French Cooperation and the French Development Agency, the Government and the Urban Community of Douala (UCD) prepared an emergency rehabilitation program of the most strategic roads to unlock the port and the industrial areas of Douala. After technical (a traffic and circulation study was also carried out, including parking areas, and public transportation), environmental, and economic and social assessments conducted in a participatory manner with the most affected stakeholders (transport, port, and industrial unions, and workers), a first rehabilitation program including the roads below has been identified: . Section A: Boulevard de la Besseke - Pont Joss 2,000 m . Section B: Pont Joss - Place Leclerc 600 m . Section C: Boulevard portuaire - Entree pont sur le Wouri 600 m . Section D: Ndokoti - Av. Japoma - Bd de l'unite - Place Leclerc 2,300 m from PK 1.9 to PK 4.2 . Section E: Rue de Japoma (Camp Yabassi - Ndokoti) 3,900 m . Section F: "Penetrante Est" (KP 10 to KP 14) 4,050 m . Section G: Rue de Japoma (Ndokoti - Logbaba - Japoma) 6,000 m . Section H: Carrefour Ndokoti - Axe lourd Douala - Yaounde 2.900 m (PKl . 1 to 4.00) Intersection I: intersection Section H - Axe lourd Douala Background The natural conditions of Douala (geology, weather, and topography) are very constraining and challenging for the infrastructure, requiring more frequent maintenance, at higher costs. The geological conditions are not suited to road construction: bad soil with a high concentration of - 21 - clay. The weather conditions are no better, with abundant rain (4 to 6 meters of rain per year), prone to bush vegetation, that grows even through concrete surfaces, and increases the need for maintenance works, particularly for drainage and sanitation systems. The topography is also problematic: the flat surface of the city prevents water from flowing down normally. In addition to the bad natural conditions, the economic depression and the rapid and anarchic urban growth have contributed to the degradation of the road network. Until 1988, a certain economic prosperity offered investment capacity that enabled the city of Douala to plan its long-terrn development, such as an urban master plan in 1983. The Urban Community of Douala was created in 1987, at a time when the economic crisis that dramatically reduced its fiscal revenues was about to take place. Many of the projects identified as priorities for the city of Douala, including the completion of the existing road network, to link the urban extensions to the inner city moribund, and improving the crossing of the Wouri river, were supposed to accompany a sustainable urban growth, but were delayed, and most of them remain even today. The UCD had no funds (the cities produced 60% of the fiscal resources, and only 1% was transferred to them) for the development or maintenance of the infrastructure, which suffered rapid and constant degradation; meanwhile the population, and therefore the number of vehicles kept increasing, without additional infrastructure to support this growth. The last main reason for the degradation and in some areas the destruction of the road network is the function of certain roads and the traffic they carry: many axes are used by heavy traffic. It is known that the effects of heavy traffic are even more destructive on urban roads than on inter-urban roads because of the effects of mechanical shearing due to the low speed traffic, congestion, and the many changes in direction. Current situation Urban growth is still increasing (it has reached a rate of 6-7%, and is expected to continue in the years to come), and Cameroon is recovering from its economic depression and the access to the port and industrial areas are strategic for economic growth, employment, and poverty alleviation. Access of industrial areas There are four industrial areas in Douala: three in the Eastern part (left bank of the Wouri), and one in Bonab6ri - Western part of Douala (right bank). The access to the three eastern industrial areas depends on the "carrefour de Ndokoti". This junction was created in 1953, in the outskirts, as an access to the first industrial area. Today, without any remodeling or upgrading, it is the epicenter of the city, structuring the distribution and traffic in all the Eastern part of the city, and providing access to large industrial areas requiring heavy transport means. It is not well-adapted to the traffic and is permanently saturated. The Bonaberi industrial area has quite a few industries, most of which depend on the traffic conditions in the transit itinerary, including the Wouri bridge. The industrial areas are serviced by main axes that are in particularly bad condition; in some cases the pavement has entirely disappeared in large sections, causing mud flows during heavy rain. Port accessibility Most of the traffic with the province, the rest of the country, and the neighboring countries (Chad and Central African Republic) avoids the inner part of the city; it goes through the Eastern road to - 22 - Yaounde and the "Boulevard Leclerc" before crossing the Wouri bridge towards the Western and Northern parts of the country. On this last axis, crossing Bonaberi often results in problems and serious nuisance. The case of the Wouri bridge The Wouri bridge is the only crossing point over this river in Douala. It enables both sides of the city to communicate and ensures the traffic of goods coming from the West (bananas, various consumier goods, and gas) and from the industrial areas of Bonaberi (especially cement). It is equipped with two road lanes and one train track. Built in 1953, this pre-stressed concrete bridge has not been maintained for many years, and studies have evidenced probable degradations representing major risks to its stability. Rehabilitation is urgently needed as the collapse of this bridge would have dramatic consequences for Cameroon's economy. The bridge carries a significant volume of traffic and it is an essential point to the organization of the urban and national network. Before launching into the construction of a second bridge, upstream from this one, as recommended in the master plan of the city, it is necessary to ensure traffic continuity. The existing bridge, which has an absorption capacity of 30,000 vehicles, should be reinforced by the UCD and made safer for users. Its rehabilitation, financed by the French Agency for Development, will increase the traffic on all roads linked to it, most of which are included in this project. Urban mobility The rapid urban growth and the degradation of the road network without any extension or maintenance of the existing infrastructure have made the transport of people and goods very difficult. After the liquidation of the urban transport public company, SOTUC, an entire market of public transportation opened, with the emergence of taxis and moto-taxis, contributing to a new type of congestion, with taxis parking everywhere, and mostly in the lanes reserved for traffic. Urban mobility has deteriorated sharply, and many people (especially the poor) cannot afford the transport of their goods or of themselves. Road safety and vehicle operating costs The poor road safety in Cameroon is mainly due to: (i) defects and/ or absence of road signaling and lighting (pedestrians and vehicles are not always visible); (ii) the disrespect of the traffic code; (iii) poor road conditions; (iv) chaotic parking of certain vehicles dangerous for vehicular traffic and pedestrians; and (v) vehicle conditions: the fleet of vehicles is very old. Moreover, the vehicle operating costs are extremely high because of the road conditions: it is possible to break an axletree while riding one of the main roads in Douala. People are reluctant to invest in new vehicles, and have to be constantly repairing the vehicles they own. The frequent need for vehicle repair reduces the efficiency of the transport system, increases transport costs, and ultimately finally reduces the competitiveness. Air pollution - 23 - The bad condition of the roads forces drivers of vehicles to use mostly their first and second gears, which represent the highest fuel consumption, and gas emission. Moreover, road users are not inclined to change or renew their vehicles given such a bad road etwork. Maintenance of the roads and the drainage systems Certain roads have suffered much degradation, and have had so little maintenance, if any, that they have become too dangerous and have been closed to traffic. The situation cannot improve without complete rehabilitation, since most of the roads have gone past their life expectancy, and the tons of pozzolana and other materials dumped on the road to enable traffic to move have poured into the gutters and drainage system, blocking an already insufficient system. The rehabilitation of the certain road sections in the project is an urgent necessity: the infrastructure should be rehabilitated to provide the service that it was meant for, and this service must be continued after rehabilitation. Financial and institutional devices should be set up to guarantee the sustainability of the works and ensure periodic maintenance. A contract on objectives, prepared with assistance of the FDA, has already been signed between the UCD and the Government. This has enabled the setting up of a road maintenance account, jointly replenished by the local communities and the Government, and the modalities of participation of the communities in the infrastructure maintenance. Periodic maintenance will also be required for the drainage system, to avoid flooding of houses along the roads, and the stagnation of the water that could lead to health and sanitation problems. Description of the road rehabilitation program The rehabilitation and development of the infrastructure in the project are part of a complete structural and functional road program to improve the communication and access to the port and industrial areas of Douala. Intersections All the intersections for each section have been reviewed in detail, according to the traffic study, and in consultation with the stakeholders. There are 16 main intersections, which will be improved and equipped with traffic lights. In addition, the signaling system will be reviewed and upgraded to improve traffic safety. Parking The lack of parking has forced road users to use existing roads as parking spaces, reducing road capacity and traffic. Parking is mainly forbidden along the main axes, parking paces are projected in certain areas, especially for taxis and minibuses, which are for the moment entirely disorganized, and forced to park illegally everywhere to satisfy their clients. It should be noted that the volume of taxis represents more than 50% of Douala's traffic on certain axes. Parking, and stopping at any time, and everywhere can be extremely dangerous for road users; once the parking will have been provided for the taxis, it will be the responsibility of the city of Douala to ensure that it is respected. - 24 - Street Lighting The lighting of the road network covered by the project will also be rehabilitated, completed, and modemized to ensure the security of road users. This also represents an important improvement for the inhabitants of Douala, who will feel more secure at night. Drainage All the drainage system for the roads under the project will be improved and part of it will be redesigned to avoid flooding, and will improve the current situation dramatically. The best solution for the drainage and sanitation is the treatment and removal of the mud in the natural drains, and to have a nonnal functioning of the systems. This solution would also have a positive impact on the public health in Douala through coverage of the districts kept unhealthy by the presence of the muddy drains, often full of polluted water, and a source of malaria and endemic diseases. Road rehabilitation costs Based on the preliminary study carried out, the project civil works costs included taxes are as follows: To be fi nanced Sectlon Secfion length Desctiptlon of itinerary DA Govemment Total A 2,000 Besseke - Fbnt Joss 2,060 515 2,575 B 1,200 Pont Joss - Place Leclerc 714 179 893 C 600 Bd portualre - Pont sur le Wourl 1,008 252 1,260 D 6,300 Ndokotf - Place marechal Leclerc 1,706 427 2,133 E 3,900 Rue de Japoma (Camp Yabassi - Ndokoff) 3,934 984 4,918 F 4,050 Pen6trante Est (KP 10 to KP 14) 4,232 1,058 5,290 G 6,000 Rue de Japomna (Ndokob - Japoma) 5,961 1,490 7,451 H 4,000 Ndokofl - Axe lourd Douala - Yaound6 5,950 1,488 7,438 Echangeur axes 10 - axe lourd 2,727 682 3,409 Total Works (tax-free) 28,292 7,073 35,365 Contingencies 5,658 1,415 7,073 _______ Total Included taxes 33,950 8,488 42,438 . ____ US$ million 46.51 11.63 58.12 By Component: Project Component I - US$58.13 mililon IDA financing US$46.50 million Roads rehabilitation (see table above) Project Component 2 - US$12.86 million IDA financing US$9.00 million -25 - Provision of technical assistance for - Road rehabilitation design and supervision with the support of an international consulting firm (two senior engineers) US$4.30 million - Technical assistance to strengthen UCD for road management and maintenance and environment US$0.50 million - Audits and project financing management support US$0.40 million - Preparation of an urban strategy and project, the studies to be carried out will be agreed upon with IDA, depending on the objectives of the urban strategy; US$3.50 million - Training on road management, maintenance, accounting, and procurement US$ 0.3 million Project Component 3 - USS 0.35 million IDA financing US$0.25 million Support to the units on charge of project implementation (UCD project unit, PCC and Environmental unit of the M1NTP) financing the incremental operating costs. -26 - Annex 3: Estimated Project Costs CAMEROON: DOUALA INFRASTRUCTURE PROJECT. 1. Roads rehabilitation 4.63 39.24 43.87 2. Technical Assistance 4.76 8.10 12.86 3. Support to the Project Unit 0.11 0.25 0.36 Total Baseline Cost 9.50 47.59 57.09 Physical Contingencies 0.59 6.54 7.13 Price Contingencies 0.59 6.54 7.13 Total Project Costs' 10.68 60.67 71.35 Total Financing Required 10.68 60.67 71.35 Goods 0.01 0.09 0.10 Works 16.28 41.85 58.13 Services 4.76 8.10 12.86 Operating costs 0.10 0.16 0.26 Total Project Costs 21.15 50.20 71.35 Total Financing Required 21.15 J 50.20 71.35 Identifiable taxes and duties are 0 (US$m) and the total project cost, net of taxes, is 71 95 (US$mn). Therefore, the project cost sharing ratio is 78.32% of total project cost net of taxes -27 - Annex 4: Cost Benefit Analysis Summary CAMEROON: DOUALA INFRASTRUCTURE PROJECT. Unit: Billion CFA Francs [For projects with benefits that are measured In monetary terms] ffTaxes 1&jA. .' Benefits: 222.4 Costs: 80.4 Net Benefits: 45.9 IRR: 32% If the difference between the present value of financial and economic flows is large and cannot be explained by taxes and subsidies, a brief explanation of the difference is warranted, e.g. "The value of financial benefits is less than that of economic benefits because of controls on electricity tariffs." Summary of Benefits and Costs: The cost benefit analysis has been conducted for the entire network to be rehabilitated. The traffic volume including induced and diverted traffic is based on the traffic survey conducted in September 2000. The investment cost is based on the project design and its estimate. The reduction in travel time and vehicle operating costs is considered as the benefit. A discount rate of 12% has been utilized. This analysis does not take into account the project's impact on the national and sub-regional economics. The result of economic calculation shows that the project is economically feasible, and that of sensitivity analysis also shows the same conclusion. In this analysis, the assumptions employed for the calculation are judged to be conservative, and the indirect benefits, such as the effect on the other roads in the city, have not been considered. These elements further reinforce the economic feasibility of the project. Main Assumptions: Within the framework of the feasibility study of this project, a traffic survey was conducted in the city of Douala in September, 2000. The major activity of this survey included traffic counting, original to destination (OD) survey. The traffic counting posts placed in the sections of the roads to be rehabilitated under the project. The traffic survey only includes the road sections to be rehabilitated and does not include the entire road network of the city. The daily traffic is estimated between 26,000 to 30,000 vehicles in the majority of the major axes, except the one which combines the intersections at Ndokoti (Carrefour Ndokoti) and with Douala-Yaounde highway (Axe lourd Douala Yaounde). The daily traffic is 8,560 vehicles in that - 28 - section. The low volume traffic is also observed in the major axes serving to the suburban areas of Douala. The traffic volume was 3,500 vehicles on the old road to Yaounde (ancienne route de Yaounde) and 6,600 vehicles on Avenue Japoma. It was estimated that the night time traffic (between 8PM and 6AM) would be around 12% of the day time traffic. The traffic survey revealed the type of vehicle and its volume of traffic. It is observed that 50% to 70% of the traffic comprises taxis and minibuses. It is even higher at the exit of the city. The traffic of heavy trucks are concentrated in the major axes. In the other sections, it is the light trucks which comprise the large part of the truck traffic. The trucks account for 1% to 2% of the total traffic in those sections. The current travel time of the traffic on the road section to be rehabilitated is based on the actual measurement in the traffic survey. The travel time after the rehabilitation has been calculated based on the design. On the other hand, the travel costs and time on the detour route were estimated, taking into consideration the surface condition and the traffic level. The traffic volume in the entire network is estimated to increase at 4% per annum. Larger increase of traffic is expected from the areas where further urbanization is foreseen. It is expected that the degree of urbanization in suburban areas will certainly be accelerated with the improvement of access roads under this project. The diverted traffic has been taken into consideration for three routes. The first one is Avenue Japoma between Ndokoti and Cite SIC intersections (Section 6). The current traffic using this section is expected to divert to the parallel avenue located in the north of Avenue Japoma. The second diversion is in Boulevard du President Amadou Ahidjo (Section 6), between Boulevard de la Republique and Place Leclerc. The vehicles will divert either to the north of Boulevard du President Amadou Ahidjo via Boulevard de la Republique or to the south through Boulevard de la Libert& The third diversion is between Ndokoti intersection and Axe lourd Douala Yaounde (Section 10). However, the majority of the vehicle is expected to come back to that road section through Boulevard des Nations Unies. Estimate of Economic Costs Time saving and the vehicle operating costs are the benefits considered in this economic analysis. The hourly cost of the labor of a person was calculated based on the differences of the GDP per capita value between France and Cameroon. It is considered that this amount underestimates the real time value of the people traveling within the city. The vehicle operating cost (VOC) is quoted from the other traffic studies conducted in the same region (Central African Republic and Congo-Brazzaville). The notion of "personal vehicle unit (unite de voiture particuliere; uvp)" has been introduced in order to calculate the VOC of the categories of vehicles other than the personal vehicle which is a four-door sedan. The VOCs of those vehicle have been calculated by multiplying the "personal vehicle unit". This assumption underestimates the benefit, as the reduction of VOC of the heavy trucks will be proportionally - 29 - greater than a simple multiplication of "personal vehicle unit". The result of the Economic Analysis The NPV of the project is 45.9 billion CFA Francs (US$ 62.8 million) and the Economic Rate of Return of the entire network is 32%. This result exceeds the current discount rate. The basis of the economic calculation is considered to be very conservative, because of the limited availability of data. In addition, the benefits of the rehabilitation used in the calculation do not include the other benefits, such as the decrease in travel time and economic cost of the traffic in the other section of the road network, as well as the reduction of maintenance costs for the road sections which are currently utilized as the detour. If these benefits are appropriately quantified and integrated in the economic calculation, it is expected that both NPV and ERR will be much higher. It can therefore be concluded that this project is economically feasible. Sensitivity analysis / Switching values of critical items: The sensitivity analysis has been conducted for the entire network for the following three cases; first, the increase of construction cost by 10%, second, no increase in traffic after rehabilitation; and third, the combination of the two. The following table summarizes the result of sensitivity analysis. (Unit: Billion CFA franc, %/o) NPV ERR 10% increase in costs 42.9 29 0% increase in future traffic 28.6 27 Combination of the two 25.6 25 conditions I_I The result of the sensitivity analysis also justifies the economic feasibility of the project. - 30 - Annex 5: Financial Summary CAMEROON: DOUALA INFRASTRUCTURE PROJECT. Years Ending (US$million) Year I I Year 2 | Year 3 | Year 4 | Year5 I Year 6 Year 7 Total Financing Required Project Costs lnvestmnent Costs 1.7 6.5 11.1 16.3 18.5 17.9 0.0 Recurrent Costs 0.0 0.0 0.0 0.0 0.0 0.0 0.0 Total Project Costs 1.7 6.5 11.1 16.3 18.5 17.9 0.0 ,Total Financing 1.7 6.5 11.1 16.3 18.5 17.9 0.0 Financing IBRDIIDA 1.3 5.1 8.7 12.8 14.5 14.0 0.0 Govemment 0.4 1.4 2.4 3.5 4.0 3.9 0.0 Central 0.0 0.0 0.0 0.0 0.0 0.0 0.0 Provincial 0.0 0.0 0.0 0.0 0.0 0.0 0.0 Co-financiers 0.0 0.0 0.0 User Fees/Beneficlarles 0.0 0.0 0.0 0.0 0.0 0.0 0.0 Other 0.0 0.0 0.0 0.0 0.0 0.0 0.0 Total Project Financing 1.7 6.5 11.1 16.3 18.5 17.9 0.0 Main assumptions: - 31 - Annex 6: Procurement and Disbursement Arrangements CAMEROON: DOUALA INFRASTRUCTURE PROJECT. Procurement General A Country Procurement Assessment Review (CPAR) has been done in 2000 in Cameroon. The national procurement system needs a major reform. Procedures for procurement of works, goods, and services are weak in several areas. The Government seems to be ready to make changes in this regard and is considering the Bank's assistance to help in the preparation of a new procurement code, which is scheduled to be completed by the end of 2002. In the meantime, Cameroon's procurement laws and regulations do not conflict with IDA Guidelines. No special exceptions, permits, or licenses need to be specified in the Credit since Cameroon's procurement practices allow IDA procedures to take precedence over any contrary provisions in local regulations. Guidelines Works and Goods. Contracts for works will not exceed two or three important contracts for road rehabilitation. Contracts for goods concern only procurement of vehicles, computers, etc, for the project unit. Contracts financed by IDA will be procured in accordance with Bank's Guidelines under IBRD Loans and IDA Credits published in January 1995 revised in January and August 1996,September 1997, and January 1999. The Bank's Standard Bidding Documents, and Standard Evaluation Report will be used for ICB. Under shopping procedures, the procedures should ensure that: (i) methods used in evaluation of bids and the award of contracts are made known to all bidders and not applied arbitrarily; (ii) any bidder is given adequate response time (four weeks) for preparation and submission of bids; (iii) bid evaluation and bidder qualification are clearly specified in bidding documents; (iv) no preference margin is granted to domestic manufacturers ; (v) eligible firms are not precluded from participation; (vi) award will be made to the lowest economically evaluated bidder in accordance with pre-determined and transparent methods; (vii) bid evaluation reports will clearly state the reasons for rejecting any non-responsive bid; and (viii) prior to issuing the first call for bids, draft standard bidding documents prepared as annexes to the Project Implementation Manual are submitted to IDA and found acceptable before the Credit effectiveness. Consultant Services. Contracts financed by IDA will be procured in accordance with the Bank's Guidelines for the Selection and employment of Consultants by World Bank borrowers published in January 1997 revised in September 1997, and January 1999. The Standard Request for Proposal, as developed by the Bank, will be used for appointment of consultants. Simplified contracts will be used for short-term assignments, i.e those not exceeding six months, carried out by firms or individual consultants. Advertising - 32 - Given the urgency of the project, a General Procurement Notice(GPN) for the first year of operations has been prepared during the appraisal and will be issued in the United Nations Development Business(UNDB) as well as in the local newspapers to advertise for any ICB for Civil Works, and major consulting assignments to obtain expression of interest. The detailed GPN for the subsequent years will be prepared for the project and published in UNDB. Specific Procurement Notices (SPN) and Expressions of Interest (EOI) for large contracts for consultants services (above US$ 200,000 equivalent) will also be advertised in Development business and sufficient time will be allowed for responses to such specific notices (minimum 30 days) before preparing the short-list. Procurement Implementation Arrangements The overall responsibility for the implementation of the DOUALA Infrastructure Project is with the Project Unit (PU). The PU is responsible for carrying out the procurement for all the Project Components. To ensure proper implementation, the PU will include a project coordinator, specialists to coordinate implementation of project components, one procurement officer and one financial management specialist. The PIM (Project Implementation Manual) will define and specifie the 'procedures for the internal control of procurement actions, the technical specifications in each case, as well as reference to the model contracts as per the Bank's Standard Bidding Documents. Procurement Capacity Assessment of the UCD to implement procurement An assessment of procurement capacity of the UCD has been done, and helped set parameters for prior review limits and the frequency of procurement supervision. Several members of UCD' staff are reportedly not familiar with the Bank's guidelines for procurement and disbursement procedures. It would be necessary for the staff UCD to have main procurement training. An action plan has been established during the preparation of project to reinforce the UCD with his new PU of DOUALA Infrastructure Project. This action plan has been discussed during negotiations to correct any management deficiency in the implementation agency's capacity to administer procurement in an efficient and transparent way. The action plan consists of: (i) recruitrnent of a procurement proficient staff befor project effectiveness; (ii) procurement workshop training under supervision of Bank procurement specialist based at the Cameroon Country office and/or HQ; (iii) procurement training at the Regional procurement center Dakar(Senegal);and (iv) under exceptional circumstances basis, hiring of short-term consultants. RISKS The risks identified in the assessment include: lack of a procurement officer clearly responsible for project procurement; lack of procurement planning and lack of staff with planning skills; some external influence on the appointment of individual consultants. The PU will take actions to mitigate these risks, such as: revise PU staffs responsibilities and functions; appoint a qualified procurement consultant for an initial period of twelve months and to provide further assistance - 33 - through short-term visits during project implementation; and favor the appointment of consulting firms over individual consultants. In addition, the technical specialists in the PU must submit a six-month procurement plan each semester to the PU s procurement proficient staff to facilitate project implementation. Procurement Plan The procurement plan for the first year was prepared during appraisal. It is based on the initial needs of the project's components. A draft of procurement plan developed by the Borrower for project implementation which provides the basis for the aggregate amounts for the procurement methods have been revised by bank procurement staff during the appraisal's mission. This plan will be adjusted as necessary with the assistance of the procurement consultant to be appointed by the PCU before the credit effectiveness. Procurement Methods The methods to be used for the procurement described below and the estimated amounts for each method, are summarized in Table A. The threshold contract values to be used for each method are fixed and shown in Table B. Works Works contracts (2 or 3) concem the rehabilitation of urban roads; they would be carried out under ICB. Goods Goods procured under this project will include computer equipment and software, electronic information systems, other office equipment and materials, training material and publications, vehicles and office locally available at economical price and costing less than US$ 30,000 per contract, up to an aggregate amount of US$ 0.10 millions will be procured through National Shopping under procedures acceptable to IDA. These procedures would be based on a model request for quotations satisfactory to the Association. For contract estimated to cost more than US$30,000, per contract, ICB procedure will be used. - 34 - Consultants Services and Training Consulting services financed by IDA would be for: (i) Consultancies on technical assistance to strengthen UCD for road management and maintenance; (ii) Road rehabilitation design and supervision; (iii) External's Audit and Project financing management; (iv) Preparation of an urban strategy and project and, (v) Training. Consultants financed by IDA, totaling US$ 12.86 millions, would be hired in accordance with Guidelines: Selection and Employment of Consultants by World Bank Borrowers, January 1997 revised September 1997, January 1999 (Consultant Guidelines). Selection would be based on competition among qualified short-listed firms through Quality-and cost-Based selection (QCBS) by evaluating the quality of the proposals before combining quality and cost evaluation by weighting and adding the quality and cost scores. The PU would ensure widely publicized expression of interest to get candidacy from consultants. Based on agreed upon criteria, the implementation unit will maintain and update a list of consultants which will be used to establish short-lists. Short-Lists of consultants for contracts estimated under US$ 50.000 may be comprised entirely of national consultants, if a sufficient number of qualified firms(at least three)are locally available at competitive costs. This would particularly apply to contracts for auditing services. However, if foreign firms have expressed interest for those contracts, they will not be excluded from consideration. Firms With respect to each contract for the employment of consulting firms estimated to cost the equivalent of US$ 100,000 or more, the procedures set forth in paragraphs 1,2 (other than the third subparagraph of paragraph 2(a)) and 5 of Appendix 1 to the Consultants Guidelines shall apply. Individuals With respect to each contract for the employment of individual consultants estimated to cost the equivalent of US$ 50,000 or more, the qualifications, experience, terms of reference and terms of employment of the consultants shall be furnished to the Association for its prior review and approval. The contract shall be awarded only after the said approval shall have been given. IDA Reviews. The review process would cover about US$58.13 millions of the contract amount for Works, Goods (US$80,000), and consultants (US$12.8 millions). See Table B below. Selective post-review of contracts awarded below the threshold level will be applied to about one in three contracts and will be carried out by Bank staff or Using Consulting' firms as necessary (audits, and other consultants). Bank staff will also review the selection process for the hiring of consultants proposed by the - 35 - Borrower. Prior IDA review for the selection of consultants will include the review of budgets, short-lists, selection procedures, requests for proposals, evaluation reports, contract awards, and negotiated contracts. Prior IDA review will not apply to contracts for the recruitment of consulting firms and individuals estimated to cost less than US$ 100.000 and US$ 50.000 equivalent, respectively. For all consultant contracts subject to prior review(estimated above US$ 100.000), opening the financial envelopes will not take place prior to receiving the Bank's no-objection on the technical evaluation. Documents related to procurement below the prior review thresholds will be maintained by the borrowers for ex-post review by auditors and by IDA supervision missions. For training abroad. The program, containing names of candidates, costs estimates, content of courses, periods of training and selection of training institutions- will be reviewed by IDA annually. Frequency of Procurement Supervision Frequency of procurement supervision missions proposed. One supervision mission to be carried out by the Association, every six months will include special procurement supervision for post-review/audits in addition to the prior review supervision. This proposal is based on the capacity assessment of the PU in accordance with the overall risk assessment. This review should cover a sample of not less than 1 in 5 contracts signed. Modification or waiver of the scope and conditions of contracts. Before agreeing to any material extension, or any modification or waiver of the conditions of contracts that would increase aggregate cost by more than 15% of the original price, the Borrower should specify the reasons thereof and seek IDA' s prior non-objection for the proposed modification Status of the Project Implementation Manual (PIM) As a condition for effectiveness, the PU will finalize and submit to IDA: (a) a Project Implementation Manual with a specific section on procurement, detailing (i) procedures for planning, calling for bids, selecting contractors, suppliers and consultants, and (b)a Project Implementation Plan and a Procurement Plan for the first years of operations;(ii) intemal organization will be incorporate to better serve as a practical guide describing procedures agreed upon the DCA. It will: (i)for supervision and control, including operational guidelines defining the role of each executing agency and reporting requirements and (ii) disbursment procedures. The procedures Manual will be examined and adopted before credit effectiveness. It will be a condition of credit effectiveness. The draft Project Implementation Manual (PIM) developed by the Borrower will be sent to Bank approval before the credit effectiveness. After negotiations and before the credit effectiveness, the Government will review and agree with IDA on: (a) a draft procurement plan; (b) standard bidding documents to be used under NCB - 36 - procedures for goods; and (c) a plan for training. The Government will also give assurance that it will (a) use the Project hnplementation Manual;(b) use the Bank's Standard Bidding Documents for ICB, the Standard Request for Proposals for the selection and employment of consultants, and the Standard Bid Evaluation Reports; (c) apply the procurement procedures and arrangements outlined above;(d) update the procurement plan on a regular basis during annual reviews with IDA and others donors, to compare target times and actual completion, and transmit it to'IDA, during implementation, with all procurement-related documents; and (e) carry out, during annual reviews, an assesment of the effectiveness of bidding procedures and perfornance, as they relate to the program's procurement experience, and propose for IDA and other donors for consideration any modification to the current procedures to the extent that would accelerate procurement, while still maintaining compliance with the Bank's Procurement Guidelines and adequate control over contract awards and payments. In addition, the decrees on procurement enacted in 2001 ensure that procurement phases do not exceed the following target time periods: Procurement Phases Maximum number of Weeks Preparation of Bidding Documents 4(6 for large contracts) 4(6-10 for ICB) Preparation of Bids by Bidders 2(4 for large contracts) Bid Evaluation 2 Signature of Contracts 3 Payments - 37 - Prior Review Thresholds The proposed thresholds for prior review are based on the procurement capacity assessment of the project implementing unit and are summarized in Table B. Procurement methods (Table A) Table A: Project Costs by Procurement Arrangements (US$ million equivalent) 1. Works 58.13 0.00 0.00 0.00 58.13 (46.50) (0.00) (0.00) (0.00) (46.50) 2. Goods 0.00 0.00 0.10 0.00 0.10 (0.00) (0.00) (0. 10) (0.00) (0. 1 0) 3. Services 0.00 0.00 12.86 0.00 12.86 (0.00) (0.00) (9.00) (0.00) (9.00) 4. Miscellaneous 0.00 0.00 0.26 0.00 0.26 Operating costs (0.00) (0.00) (0.15) (0.00) (0.15) Total 58.13 0.00 13.22 0.00 (46.50) (0.00) (9.25) (0.00) (55.75) "Figures in parenthesis are the amounts to be financed by the IDA Credit. All costs include contingencies. 2'Includes goods to be procured through national shopping, consulting services, services of contracted staff of the project management office, training, technical assistance services, and incremental operating costs related to managing the project. The total amount of 55.75 does not include the PPF amount (0.6) - 38 - Table Al: Consultant Selection Arrangements (optional) (US$ million equivalent) A. Firms 11.43 0.00 0.00 0.00 0.00 0.71 0.00 12.14 (8.00) (0.00) (0.00) (0.00) (0.00) (0.50) (0.00) (8.50) B. Individuals 0.00 0.00 0.00 0.00 0.00 0.72 0.00 0.72 (0.00) (0.00) (0.00) (0.00) (0.00) (0.50) (0.00) (0.50) Total 11.43 0.00 0.00 0.00 0.00 1.43 0.00 12.86 (8.00) (0.00) (0.00) (0.00) (0.00) (1.00) (0.00) (9.00) 1\ Including contingencies Note: QCBS = Quality- and Cost-Based Selection QBS = Quality-based Selection SFB = Selection under a Fixed Budget LCS = Least-Cost Selection CQ = Selection Based on Consultants' Qualifications Other = Selection of individual consultants (per Section V of Consultants Guidelines), Commercial Practices, etc. N.B.F. = Not Bank-financed Figures in parenthesis are the amounts to be financed by the Bank Credit. -39- Prior review thresholds (Table B) Table B: Thresholds for Procurement Methods and Prior Review' 1. Works above 200 equivalent ICB 58.13 All contracts 2. Goods below 30 national shoping 0.10 above 30 ICB for both, the first three contracts, every year 3. Services Firms above 100 QCBS 11.43 below 50 Single source 0.71 Individuals above 50 Single source 0.43 below 50 Single source 0.29 4. M iscellaneous ____________________ ____________________ S. Miscellaneous 6. Miscellaneous Total value of contracts subject to prior review: US$ 71.09 million Overall Procurement Risk Assessment Average Frequency of procurement supervision missions proposed: One every six months (includes special procurement supervision for post-review/audits) XThresholds generally differ by country and project. Consult OD 11.04 "Review of Procurement Documentation" and contact the Regional Procurement Adviser for guidance. -40 - Disbursement Allocation of credit proceeds (Table C) 1. The credit will be disbursed over a period of six years. As disbursements are made under traditional disbursement procedures (as opposed to the Project Management Report -PMR- based disbursements), they will be fully documented at the time of submission of withdrawal applications, except for expenditures made against SOEs. A Disbursement Schedule appears in Table C below. The disbursement percentages should be applied to amounts with taxes. Table C: Allocation of Credit Proceeds 1. Works 38.75 80.00% 2. Goods 0.10 100% of foreign expenditures 80% of local expenditures 3. Consultants, audits and training 9.00 70% 4. Operating costs 0.15 70% 5. Refinancing PPF 0.60 6. Unallocated 7.75 Total Project Costs 56.35 Total 56.35 "Operating costs" means the incremental expenditures incurred on account ofproject implementation, management and monitoring including office supplies, administrative support, communications, utility services, travel, accomodation and supervision costs, but excluding salaries of officials of the Borrower's civil service. Special account: 2. Under traditional Procedures: In order to facilitate project implementation, the Government will open in a local commercial bank a Special Account "SA". The authorized allocations will be CFAF 300,000,000. The authorized allocation will cover four months' eligible expenditures. Upon effectiveness, an amount representing 50 percent of the authorized allocations will be deposited in the special account untill the aggregate amount of withdrawals from the Credit Account plus the total amount of all outstanding special commitments entered into by the Association pursuant to Section 5.02 of the General Conditions shall be equal to or exceed the equivalent of SDR 10 millions Replenishment applications will be submitted at least monthly by the agencies. Counterpart Funds and Project Account 3. The Borrower will open in a local commercial bank a Project Account in which he will deposit an initial amount of CFAF 1,000 million to finance its contributions to the expenditures required under the project. It will, thereafter, during each following quarter, deposit into the Project Account the amount required to cover the Borrower's counterpart contribution for each such following quarter, as deternined by the Borrower and the Association; and ensure that the funds deposited into the Project Accounts will be used exclusively to finance expenditures under the project other than those financed from the proceeds of - 41 - the Credit. The Project Account will be operated under terms and conditions satisfactory to IDA. Use of Statements of Expenditures (SOEs) 4. All replenishment requests will be fully documented except for: (a) contracts of less than US$200,000 equivalent for civil works; US$100,000 equivalent for goods; US$100,000 equivalent for consulting firm services, and US$50,000 equivalent for individual consulting services; and (b) operating costs which may be claimed on the basis of SOEs. All supporting documentation for SOEs would be retained by implementing agency for periodic review by IDA supervision rnissions and external auditors. Financial Management Assessment Accounting and Auditing 5. In December 2001, an accredited FMS reviewed the existing accounting system of CDU (the implementing entity) to assess whether CDU is able to maintain a financial management system including accounting, financial reporting, adequate to ensure that they provide the Bank with accurate and timely information regarding the use of project resources and expenditures. The review led to the following conclusions: (i) CDU has in place an adequate procedures manual, accounting staff, accounting database and software, (ii) a specific Project Unit (PU) will have to be created in CDU to handle project resources and expenditures separately from those of CDU, (iii) CDU's procedures manual and software will have to be adapted for the purposes of the project. A consultant has been recruited to implement the following action plan: (i) adapt the procedures manual of CDU for the project, (ii) select/adapt an appropriate accounting software for the project, (iii) provide training for the UCP/UP accounting staff responsible for the project implementation. 6. The Project Unit (UP) set-up by CDU would be a small project unit which will be part of the "Services Techniques de la CDU" to ensure project implementation. It will include an accountant who will receive support from a local accounting firm during at least the first year of the project implementation. The following will be conditions of effectiveness: (i) establishment of a financial management system for the project acceptable to IDA, including a detailed financial and accounting procedures manual with an internal financial controls and an appropriate accounting plan, (ii) the appointment of a qualified accountant for the project. 7. An independent auditor's opinion and report satisfactory to IDA on project financial statements will be provided within six months of the close of the fiscal year for the annual reports. Special Accounts, Project Accounts, and SOEs will be included in the audits and specifically addressed in the audit reports. The auditor's report will also include a statement and a specific report on the adequacy of the accounting systems and internal controls, the reliability of SOEs as a basis for Credit disbursements, and compliance with financial covenants. Auditors acceptable to IDA will be recruited by the project and the audits will be carried out based on TORs acceptable to IDA. Recruitment of auditors will be a condition of Credit effectiveness. Monitoring and Reporting 8. The World Bank is introducing an initiative to change loan administration in the World Bank Group-financed projects, the Financial Management Guidelines (FMR). This initiative assists projects to put in place sound financial management, procurement, and output monitoring systems. Disbursements, however, will be made on traditional basis of supporting documentation and SOEs.. -42 - 9. The foregoing accounting, financial reporting, and auditing arrangements should provide adequate and timely information to IDA for project supervision. Financial reports to be produced annually and denominated in FCFA would include: (a) project financial statements drawn up in accordance with accounting principles acceptable to IDA (International Accounting Norms are acceptable to IDA); (b) reports on the Special Accounts; and (c) statements of expenditures (SOE). In addition, project Financial Monitoring Reports (FMRs), in line with the FMR, will be produced half yearly in accordance with the Bank guidelines and submitted to the Bank not later than three months after the close of the reporting period. Action Plan Action Date Due Respondbillty _. Recruitment of accounting firm June 2002 UCD 2. * Preparation of Manuals of procedures describing Job Consulting Firm/ description of key staff, Administrative, Accounting & Government/ Financial accounting systems and procedures, internal IDA controls, and funds flow processes: * First draft for IDA comments; August 2002 * Final draft incorporating IDA comments September 2002 * training of staff 3. Appointement of key staff July 2002 * Accountant specialists UCD 4. Installation of Program Financial Management system September 2002 Consulting firm * Consulting at least 3 software vendors; and UCD * Receive and evaluate bids and select winners; * Seek IDA on selected winners; * Installation of software, "Param6trage" and agreement on financial reporting format/content; * Training on selected software. 5. Appointment of ExternalAuditors September 2002 UCD/IDA * Agreement on terms of reference for external audit * Recruitment process of Auditors Firm: * Finalize bidding documents; * Seek IDA no objection; * Publish bids; * Receive and evaluate bids and select winners; * Seek IDA on selected winners. 6. IDA Financial Management Specialist (FMS) carries out the September 2002 IDA final Assessment of the Project Financial Management system 7. Project Effectiveness September 30, 2002 UCD/IDA -43 - Final Phase 1 First Project financial statement prepared January 31, 2003 UCD 2 Transmission of project audit report to IDA December 31, 2003 UCD 3 Review Project audit reports and follow on implementation January 2004 IDA _ of recommendations. - 44 - Report on the Assessment of Project for PMR-Based Disbursements Cameroon. Douala Infrastructures Proiect ID: P074490 Ineligible for PMR-Based Disbursements Financial Management System: I have reviewed the financial management system relating to this project. The objective of the review was to determine whether the project has in place an adequate financial management system as required by the Bank/IDA under OP/BP 10.02. My review, which included visits to the project implementing agency, was based on the Bank's guidelines for "Review of Financial Management System", and focused on the assessment of the project's accounting system, internal control, planning, budgeting and financial reporting system, selection of an auditor as well as the format and contents of the Project Management Report (PMR) to be submitted by the borrower in support of Withdrawal Applications. I confirm that the project satisfies the Bank's minimum financial management requirements. However, in my opinion, the project does not have in place an adequate project financial management system that can provide, with reasonable assurance, accurate and timely information on the status of the project as required by the Bank/IDA Guidelines for FMR-Based Disbursements. I have detailed in the attachment an agreed action plan by the Borrower-UCD to remedy the situation. Signed by: Abdoulaye COULIBALY Financial Management Specialist - AFMML -45 - Annex 7: Project Processing Schedule CAMEROON: DOUALA INFRASTRUCTURE PROJECT. Time taken to prepare the project (months) . First Bank mission (identification) 09/24/2001 07/21/2001 Appraisal mission departure 02/19/2002 02/13/2002 Negotiations 04/02/2002 04/24/2002 Planned Date of Effectiveness 09/30/2002 Prepared by: Urban Community of Douala and the World Bank Preparation assistance: Financing of preparation studies from the French Agency of Development Bank staff who worked on the project Included: Abdelghani Inal Highway Engineer, Urban, TT Hitosbi Shoji Economist Robert Robelus Environment Kristine Ivarsdotter Social Development Abdoulaye Coulibaly Financial Management Guy Joseph Malembeti Procuremnent Miakikula Bamvi-Koua Program Assistant Nicolas Gohel Intern Agnes Albert-Loth Disbursement Officer Edith Ruguru Mwenda Lawer Roberto Chavez Peer Reviewer Mohammed Feghoul Peer Reviewer Bertrand de Chazal Sr. Financial Management Specialist Faustin Koyasse Operations Officer -46 - Annex 8: Documents in the Project File* CAMEROON: DOUALA INFRASTRUCTURE PROJECT. A. Project Implementation Plan B. Bank Staff Assessments C. Other Road Rehabilitation Preliminary Studies (Avant-Projet sommaire au 1/500) Traffic studies Contrat d'objectifs Communaute Urbaine de Douala/Gouvemement et rapports de suivi Environmental Assessment Economic Analysis *Including electronic files -47 - Annex 9: Statement of Loans and Credits CAMEROON: DOUALA INFRASTRUCTURE PROJECT. 03-Jan-2002 Dierence between expected and actt4al Original Amount In USS Millions disbursements Project ID FY Purpose IBRD IDA GEF Cancel. Undisb. Orig Frm Rev'd P073065 2001 Mudasectoral HIVIAJDS Prcod 0.00 5000 0.00 0.00 4542 -3 80 000 P051059 2000 CHAD/CAM PIPE (CAM) 53.40 0.00 0.00 0 00 40.73 0 53 000 P048204 2000 ENVIRONMENTOILTA 00W 577 000 000 5.32 0.14 0.00 P065927 2000 PubliciPivate Psrtnershp. Growth 000 20.90 0.00 0.00 1656 7.03 000 P045348 1999 AGEXT&RES.SUPPORT 0.00 1510 0.00 0.00 9.43 6.35 000 P055684 1998 Higher Education (LIL) 0.00 4 90 0.00 0.00 3 39 3.34 323 P054443 1998 SACIII 000 16000 0.00 000 81.02 6282 52.22 P000393 1996 TRANSPORT SECTOR 000 60.70 0.00 0.00 1661 20.31 281 P000311 1995 BIODIVERSITYCONSERV 0.00 000 600 0.00 0.61 1.13 0.00 Total: 5340 337.37 600 000 219.07 9785 5826 - 48 - CAMEROON STATEMENT OF IFC's Held and Disbursed Portfolio OCT-2001 In Millions US Dollars Committed Disbursed IFC IFC FY Approval Company Loan Equity Quasi Partic Loan Equity Quasi Partic 1995 AEF Comp Avicole 0.24 0.00 0.00 0.00 0.24 0.00 0.00 0.00 2000 AEF Hobec 0.33 0.00 0.00 0.00 0.13 0.00 0.00 0.00 1996 AEF Notacam 0.62 0.00 0.00 0.00 0.62 0.00 0.00 0.00 1994/96 AEF Proleg 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 1999 AEF Saicam 0.00 0.00 0.33 0.00 0.00 0.00 0.33 0.00 2000 BICEC 0.00 0.67 0.00 0.00 0.00 0.00 0.00 0.00 1986 CICAM 1.72 0.00 0.00 0.00 1.72 0.00 0.00 0.00 2000 COTCO 86.10 0.00 0.00 86.10 11.41 0.00 0.00 11.41 1992/94/97/98 Pecten Cameroon 22.09 0.00 0.00 69.95 6.59 0.00 0.00 20.87 Total Porffolio: 111.10 0.67 0.33 156.05 20.71 0.00 0.33 32.28 Approvals Pending Commitment FY Approval Company Loan Equity Quasi Partic 2000 AEF Complexe In 0.00 0.00 0.17 0.00 2002 AEF FME-GAZ 0.00 0.31 0.00 0.00 Total Pending Commitment: 0.00 0.31 0.17 0.00 -49 - Annex 10: Country at a Glance CAMEROON: DOUALA INFRASTRUCTURE PROJECT. POVERTY end1 SOCA AL Saharan Lp - . Crmuroem - Abre. InCOM: Development diamond' Populaon. mi-yervfohtUWj 1- 2-5 LUfe expectancy GNI (Alias metIrid. USS banqli : 0.6 313--s1.0 AVWUUU annual growth. IONIC - - Pdpulatlon 1961 GN2.7Gr6o1. Labofrfamce(6 M 2.8 2.6- -2.4: 0N Gos Moat recent eatini -~~~~~~~~~~~~ - -- - ~~~Pef primary Mostrecnt U Ia cpit enrollment Poverty 66 ar noAulalin baIb( ow p. oyer fine) - ... Urtban Dopultlo (49 34dli2 - I- . - 32 Life ezoectancy at blfi(er)- t 47 6 InfgfnI mortaatV 1100i I.o-? v77ftr - 92' Child rnaftntltrlflo (76 of car .j0-ider ~)22 Access lo improved water source Acces to an trIWRtMvd WM0erseu,cW(%1f7 6 O'oulAft"o 62 55 70 tifteracy (76 Ofousl4t~) 24 38 3 Cameroon GroesDrlm auny n - -t'- 78 6- LwIcm ru Male . - 88~~~~~~~~~~~~~S 102 Lo-noegu Female- . .. 71 6.. . -.. KEY ECONONIC RTOSI.d1LOMO"-TE1k TREWDS 8 18119 1900 1909-, 2!1- - - , Ecenomic rnati& GDP JUSS bUND--- 47 12 - 9.2 . L9. Gross doirjestG1ci stnehlG -21'0 - 78 167. - - .4 Trade Emort of ooawia sev)qip -; 22 02 244 - 30.7-- gross domeetic ssidnaslG 21 2q.7 14 * Gross national "aVInaGP . .51 18 1 1 1. Current contbelepcsjGOP 451, 18 Domfestic Investment tntareettavnentalIVIP-. savings. ~ TOta debt 961v~elx13Rfte 14.6 2, 45.2 20. Praesetvalue 01 iWODP 71 Prosseitvalue fdelezot 292.6 .- Indebtedness taa~~W 199040 190Il 2000 2090-04 (average el?itOsh GDP. ~ ~ ~ ~ ~ 4 17 4A 4.2 ~~~~~~ - - Cameroon GDP iur ceorda - 1 8 3 . Low-Income group xparm4 of qiads andaserls .I~3 2 4 9 -2.2 7-. --*-. - 9- STRUCTURE of the ECONOMY 1080 1900 1009 2000 FGrowtht of investment and GDP (I6) (76 of GOP) 20 Agriculture 31.3 24.8 43.5 43.8 Industry 25.6 29.5 20.2 20.3 110 ManufacturIng 9.6 14.5 10.9 10.9 40 Services 43.1 48.0 36.2 35.9 90 97 9o s9 0 Private consumption 68.6 66.6 71.6 69.5 General government consumption 9.7 12.8 10.0 10.2 ootI -OGDP imports 01 goods end services 27.4 17.3 24.7 26 8 I (average annual growth) 1000lss-00 1990-00 1999 2000 Growtht of exports and Imports (I6) Agriculture 2.2 5.6 6.8 6.5 Industry 5.9 .0.8 6.3 7.7 1 Manufacturing 5.0 1.4 9.4 11.3 I Services -0.5 0.2 .0.2 2.8 4 Private consumption 3.5 2.9 -1.2 12.9 00 5 55 gy as g General government consumDtion 6.8 0.7 10.6 7.3 -10. Gross domestic investment -2.6 0.9 7 0 0.9 _ Ex;xrts ---mports imports of goods and services 3.6 5.1 2.9 15.8 Note 2000 data are preliminary estimates. IThe diamonds show four key Indicators In the country (in bold) comoared with Its Income-group average, If date are missing, the diamond wilt be Incompiete. - 50 - Cameroon PRICES and GOVERNMENT FINANCE 1980 1SS0 19S 2000 MIladn %) Doesi pdo so. Consume prices 9.5 1.1 2.9 0.8 20 ImplIct GDP delator 142 1.6 -1.2 3.5 1 Govwnment fnnemu 1% of GDP, Ihduds cuent gransb) 95 95 97 se as Cuwent revenue 18A 14.3 16.7 18.8 :o Current budget balance 5.6 -1.8 0.4 4.2 - GDP ddsator - Ci' Overan surplualdeflct OA -7.8 -3.2 1.4 TRADE 1980 1990 199S 2000 Expo. and Import lmb (US$ mfIL) Total exdports (fob) 1,506 1.882 1,682 2,124 2o Fuel 398 823 529 989 2 . cocoa 289 156 157 119 Manufcrwe 96 359 399 381 1..9 Total Impors (dn 1,452 1.A53 1.483 1,538 , Food 82 190 169 162 Fuel and enenv 187 16 12 24 5 Capil goods 388 452 407 412 o Expot ipce index (1995100) 81 s0 88 128 94 95 es 97 00 Import price Index (1995=100) 72 51 100 101 *EPOwn s l Tes of tade(1995=100) 112 99 88 124 BALANCE of PAYMENTS (USS mel Cuirnt account balance to GDP Exports of goods and services 1,880 2,251 2,241 2,719 o Imports of goods and serAces 1,829 1,931 2.267 2,376 Resource balance 51 320 -26 343 Not axlme -479 *478 -468 -594 -2*. Netcurrenttratsfers 83 -39 117 97 Current account baance 348 -196 -376 -163 FInandna Items (net) 508 252 380 395 *41 Changes In net reseves -162 -65 -4 -242 - A1emo: Reserves IncudWn god aJS$ mls) .. .. 4 212 Conversion rate (DEC. tocUS$) 209.2 300.7 588.5 658.2 EXTERNAL DEBT and RESOURCE FLOWS 1980 1990 1999 2000 (USS mIlons) ComposItion of 2000 dobt (UBS mDll.) Total debt outsanding and disbursed 2,513 5,158 9,444 9,929 IBRD 152 651 276 218 A:218 9.:769 IDA 146 238 749 769 0:2,040 C: 235 Totaldebtservice 280 522 549 561 D 392 IBRD 17 91 91 75 IDA 2 4 11 12 Composition of not reoUrCe flows F 647 Offcial grants .. Ofkicl crsedltrs 221 461 28 33 Private creditors 279 -12 -51 -52 Foreign direct Investment .. Portfoio equty .. .. .. .. E:5.628 World Bank program CommItments 0 0 138 91 A - IBRD E - BtltarW Dibursements 47 75 67 56 B-IDA D -Other muIsAral F - Rtvete Prbnipe repaimets 5 44 71 60 C - iF G - Short-term Net flows 43 30 4 -5 Interest paymwents 14 51 32 27 Net ransfbes 29 -20 -3 -32 Developmnt EconomIcs 101r2i01 - 51 - Additional Annex 11: Environmental Assessment CAMEROON: DOUALA INFRASTRUCTURE PROJECT. MINISTRY OF PUBLIC INVESTMENTS AND REGIONAL DEVELOPMENT GENERAL SECRETARIAT DEPARTMENT OF ECONOMIC AND TECHNICAL COOPERATION Yaounde, 4 December 2001 No. 02586/MINPAT/SG/DCET/BN/BN1 To: Mr. Robert CALDERISI, Director of Operations for Cameroon, World Bank Africa Region Through: The Resident Representative of the World Bank in Cameroon, Yaounde Subject: Transmission of the report of the environmental impact study of the project for rehabilitation of the access routes to the industrial zones of Douala Sir, In accordance with the principal decisions of the latest IDA mission for supervision of the Transport Sector Project, pre-appraisal of the project for rehabilitation of the access routes to the industrial zones of Douala and post-appraisal of the railway concession project, which visited Cameroon from 17 November to 1 December 2001, I have the honor to attach herewith the report on the environmental impact study for the project for rehabilitation of the access routes to the industrial zones of Douala, which has been approved by the Republic of Cameroon. Yours faithfully, Martin OKOUDA Minister of Public Investments and Regional Development Copy: - Urban Community of Douala - Transport Sector Project Unit - 52 - -53 - URBAN COMMUNITY OF DOUALA REPUBLIC OF CAMEROON TECHNICAL SERVICES DEPARTMENT PEACE - WORK - FATHERLAND ENVIRONMENTAL IMPACT STUDY OF THE PROJECT FOR THE REHABILITATION OF THE ACCESS ROUTES TO THE INDUSTRIAL ZONES OF DOUALA November 2001 -54- SUMMARY 1. INTRODUCTION 2. INSTITUTIONAL AND LEGISLATIVE FRAMEWORK FOR ENVIRONMENTAL MANAGEMENT 2.1. JURIDICAL AND LEGAL FRAMEWORK 2.2. INSTITUTIONAL AND POLITICAL ENVIRONMENTAL CONTEXT 2.3. LEGAL CONTEXT FOR ENVIRONMENTAL IMPACT STUDIES 3. INITIAL CONDITION AND DIAGNOSIS OF THE ENVIRONMENT 3.1. PHYSICAL SURROUNDINGS 3.1.1. Condition of the highway 3.1.2. Climate 3.1.3. Rainfall 3.1.4. Hygrometry 3.1.5. Winds 3.1.6. Relief 3.1.7. Soil characteristics 3.1.8. Hydrology 3.2. NATURAL SURROUNDINGS 3.1.1. Flora 3.1.2. Fauna 4. THE PROJECT 4.1. NATURE OF THE WORK 4.2. DESCRIPTION OF THE PROJECT 4.3. INTERCHANGES 4.4. PARKING 4.5. LIGHTING 4.6. DRAINAGE 4.7. MAINTENANCE AND PROPORTIONING 5. ENVIRONMENTAL IMPACT OF PROJECT INVESTMENTS 5.1. METHODOLOGY 5.1.1. Identification of impacts 5.1.2. Description of impacts - 55 - 5.2. IMPACT ON THE PHYSICAL ENVIRONMENT 5.2.1. Negative impacts 5.2.2. Positive impacts 5.3. IMPACT ON THE NATURAL ENVIRONMENT 5.3.1. Flora 5.3.2. Fauna 5.4. IMPACT ON THE SOCIO-ECONOMIC ENVIRONMENT 5.4.1. Negative impacts 5.4.2. Positive impacts 6. ENVIRONMENTAL MANAGEMENT PLAN 6.1. GENERAL PRINCIPLES AND MEASURES TO MITIGATE NEGATIVE ENVIRONMENTAL IMPACTS 6.2. ADOPTION OF PALLIATIVE MEASURES AND ACCOMPANYING MEASURES - 56- SUMMARY Implementation of the project for rehabilitation of the access routes to the industrial zones and port of Douala has several positive impacts and some negative impacts to be offset by various measures. Because the negative impacts are mainly observed during the work period and measures to offset and eliminate them have been recommended, they are minor and, more importantly, temporary. - The negative impacts can be summarized asfollows: I . Deterioration of air quality 2. Pollution of surface water 3. Noise pollution 4. For the soil, risks of erosion, modification of soil surface properties and risks of pollution through accidental oil spills 5. Modification of the pattern of surface water runoff after the work 6. Disruption of urban and intercity traffic 7. Safety problems for users and residents 8. Problems of access to various utilities, markets, schools and medical establishments and to factories located alongside the routes affected by the project 9. Temporary intenrmptions in services (water, electricity, telephone, ...) 10. Loud noise of construction machinery. - In order to offset these inconveniences, various palliative measures will be taken: I . Regular hosing of earthwork pathways and zones, particularly near dwellings 2. Speed limits 3. Maintenance of below-ground runoffs as close as possible to their original condition during the work 4. Protection of erodable surfaces with revegetation (after top soil grading) or with masoned water-wing or riprap (slope) during the execution of earthwork 5. No dumping of rubble or debris within 15 meters of a stream 6. Psychological preparation/inforrnation 7. Public safety -57 - 8. Scheduling of work 9. Temporary diversions. On the other hand, the most important impacts are positive and lasting and involve the comfort, health and well-being of the inhabitants of the city of Douala after the actual completion of the project. - Thus the major positive impacts of the project are: 1. Improvement of air quality and public health (decrease in gas emissions from vehicles moving at higher speeds, considerable decrease in dust). 2. Improvement of the drainage system Improvement of the drainage system has a number of consequences: * ~Decrease in waterbome diseases * Decrease in risks of erosion in areas bordering the highway * Improved preservation of the road surface * Improved conditions for pedestrian and vehicular traffic 3. Longer lifetime and lower running costs for vehicles 4. Improved traffic flow and less stress for drivers 5. Increased mobility of inhabitants and decrease in commuting time, so that the problems of daily life can be solved more rapidly and with less fatigue 6. Improved access to utilities, markets, schools, medical centers and factories located alongside the routes affected by the project. 7. Positive effect on the economy of the city of Douala and of the country in general through improved exchanges and transport of goods and people 8. Improved appearance of the city, enhancing its image and boosting the people's morale and self-esteem. 1. INTRODUCTION The Urban Community of Douala (1.5 million inhabitants) accounts for about 75 to 85 per cent of Cameroon's industrial activities and almost all of its port activities. The road network serving Douala's industrial and port zones is therefore a basic economic necessity for the country and also for Chad and the Central African Republic, which depend on Cameroon for their access to the sea. In addition, pending construction of a city bypass, certain arteries proposed in the project also run through the city, linking the highways from YAOUNDE and EDEA in the east to the arteries to LIMBE and NKONGSAMBA in the west. - 58 - Douala extends over about 190 square kilometers in an almost completely flat area of lagoons and former swamps. Drainage of rainwater and wastewater poses considerable problems because of the silting of the Wouri River and the lack of cleaning and maintenance of the city's many natural channels and drains. The city roads, whatever their use, are generally in very poor condition. This is mainly because of the hot and very humid climate with heavy and frequent rainfall, the chronic lack of maintenance for many years, the lack or inadequacy of water treatment systems, which are often poorly proportioned, and the increase in heavy and light vehicle traffic. This report is taken from the feasibility study which is part of the project for rehabilitation of the access routes to the industrial zones of Douala. This mission was financed by the Agence Francaise de Developpement and executed by the Scetauroute/SCET-Cameroun/Ecta BTP group. The contractor is the Urban Community of Douala. 2. INSTITUTIONAL AND LEGISLATIVE FRAMEWORK FOR ENVIRONMENTAL MANAGEMENT 2..1 Juridical and legalframework Cameroon's arsenal of legislation on the environment, which was quite limited in the period before Stockholm (1972), has been gradually expanding with the increasing importance being accorded to environmental problems. Thus several legal instruments on the protection of the environment have been signed and ratified at the international, regional and national levels. At the national level: The basic legal instrument on the protection of the environment is Act No. 96/12 of 5 August 1996 promulgating the Framework Law on environmental management. This general instrument is supplemented by specific laws such as the Act on Forests, Fauna and Fishing (No. 94/01 of 20 January 1994), the Act governing Water (No. 98/005 of 14 April 1998) and the Act on Establishments Classified as Dangerous, Unhealthy or Unsuitable (No. 98/015 of 14 July 1998), etc. 2.2 Institutional and political environmental context Before the creation of the Ministry of the Environment and Forests in 1992, there was a proliferation of institutions (technical ministries and public, semi-public and other agencies) with primary or subsidiary responsibility for natural resources management and monitoring of certain activities potentially harmful to the environment, with no definite structure to coordinate the various actions. Faced with wide-ranging environmental problems and with this inefficient approach, following the Rio summit in 1992 Cameroon took a number of measures designed to make environmental protection a more integral part of government policy and to provide better coordination of activities in this area. With this aim, the following actions were taken: - Creation of a Ministry of the Environment and Forests to provide an institutional framework for environmental planning and management. - Formulation of a National Environmental Management Plan (NEMP) providing basic strategic - 59 - guidance for the protection of the environment and the rational exploitation of natural resources for sustainable development. - Incorporation of environmental protection in the Constitution (Fundamental Law). - The Ministry of Public Works has developed environmental guidelines on highway construction and maintenance and established a unit with a staff of 11 to deal with environmental issues involving highways. 2.3. Legal contextfor environmental impact studies Section 2 of the Act on the Environment is devoted to environmental impact studies. This section specifies that projects which may have an effect on the environment must first be the subject of an impact study. In particular, the following issues must be dealt with: 1. Initial state of the site and of its environment; 2. Reasons for selecting the site; 3. Identification and evaluation of impacts on the natural and human environment; 4. Description of the measures planned to eliminate, reduce and/or offset negative impacts; 5. Presentation of altematives and reasons for the selection of the project. In addition, Act No. 94/01 of 20 January 1994 containing regulations goveming forests, fauna and fishing also requires a prior environmental impact study for all projects with biodiversity implications. Although the implementing decrees for the Framework Law on the Environment listing projects requiring prior environmental impact studies have not yet been signed, the transport sector - and particularly road transport - is clearly one of the sectors in which impacts on the environment are inevitable. Accordingly, in its transport strategy, the Government has committed itself to preserving the environment when road works are undertaken. The main objective of this strategy is to guarantee greater efficiency and sustainable development of the transport sector so that it can contribute to the country's economic growth, to poverty relief and to environmental protection. In order to focus specifically on the environmental issues connected with road projects, the Ministry of Public Works has established an "environmental protection" unit. 3. INITIAL CONDITION AND DIAGNOSIS OF THE ENVIRONMENT Framework Law No. 96/12 of 5 August 1996 conceming environmental management defines "the environment" as all the natural or artificial elements and the bio-geochemical balances of which they are a part, as well as the economic, social and cultural factors which promote the existence, transformation and development of surroundings, living organisms and human activities. Thus the environment, which is so to speak the setting for our lives, consists of the physical surroundings -60 - (water, air, soil, etc.), the natural surroundings (flora, fauna) and the human surroundings. 3.1. Physical surroundings 3.1.1. Condition of the highway Some of the roads affected by the project are is relatively good condition (sections I and 2, partially, and 4) and need isolated repairs. Others are completely dilapidated and will need to be rebuilt (sections 8, 9 and 10). Lastly, sections 3, 5, 6 and 7 mainly have to be rehabilitated. In its present condition and over its various sections, the highway has a number of features that are harmful to public health, to the comfort of the human population, to the economy and to the salubriousness of the city as a whole. These features are the poor or non-existent drainage system and the serious deterioration of the road surface. These features have varying negative effects on the environment. a. Poor condition of the road svstem This creates various problems, including: - Slow traffic flow (traffic jams) - Difficulty of reaching various utilities, shops and companies and resulting waste of time - Rapid depreciation of vehicles and high cost of running them - Atmospheric pollution by emissions of carbon oxides, nitrous oxides, lead, dust and volatile organic compounds, with harmfil effects on public health. - Stress and nervous disorders. b. Poor or non-existent drainage Poor rainwater drainage causes a number of serious problems. An incomplete list follows: - Waterbome diseases (malaria, typhoid, viral hepatitis, hookworm, ...) - Problems for vehicular traffic during periods of flooding, which are very frequent - Rapid deterioration of road surfaces - Problems for pedestrian movement during the rainy season in areas without sidewalks or shoulders - Risks of erosion -61 - - Unsightly appearance. 3.1.2. Climate The city of Douala is located on the banks of the Wouri River, 30 kilometers from the sea, on the Gulf of Guinea in a humid equatorial zone. Douala has two seasons: a dry season from mid-November to the end of July and a humid season from the beginning of March to mid-November. June marks the beginning of the main rainy season and July and August are the two most rainy months. The concept of "dry season" used here requires the following clarification. Over the past ten years, there have been only forty-two (42) consecutive days without rain: the dry season could thus be more accurately called "the less humid season". 3.1.3. Rainfall In general, the project is located in a humid equatorial zone, characterized by very abundant rainfall of about 4,000 to 6,000 mm a year, with an average of 200 days of rain a year. The inter-annual average module (average total rainfall each year in the city) is 4,200 mm. The following table gives the average monthly rainfall recorded over four consecutive years (1975-1979) at the Douala meteorological station. Table 1: Average monthly rainfall (in mm) in Douala between 1975 and 1979 IJan | Feb |March April |May |June |July I AugustSept |Oct |Nov |Dec 58 79 1 208 239 325 520 749 783 649 385 154 48 3.1.4. Hygrometry The atmospheric humidity in Douala is particularly high. Saturation point is reached during most of the humid season and even during the least humid months. The minimum relative humidity figure of 80 per cent is attained in February. The hot climate (average annual temperature of 270 degrees with a temperature range of only 204, is conducive to evapotranspiration and evaporation. 3.1.5. Winds Like the rest of Cameroon, Douala is affected by two winds blowing from two anticyclones: the harmattan from the Azores anticyclone situated in the Sahara and the monsoon from the St. Helena anticyclone situated in the Atlantic. The harmattan is a hot dry wind which, because it blows from the Sahara, carries sand particles. It appears during the dry season. However, its influence is quite small in the project zone. - 62 - The monsoon is a hot humid wind, which predominates during the rainy season and may cause heavy rainfall. In general, the winds in Douala are weak and south-westerly in direction, corresponding to the direction in which the monsoon blows. 3.1.6. Relief The city of Douala is flat with some valleys. It includes zones with hills measuring from 0.2 m to 32 m CGN.** Measuring system of the Centre G6ographique National, in which zero is equivalent to the mean sea level, i.e. 1.41 m above the level measured by the tide gauge. Since the highest waters of the Wouri River reach a level of 2.7 m CGN, it is clear that many parts of the city are liable to flooding. 3.1.7. Soil characteristics The urban area consists mainly of sandy-clayey and clayey-sandy formations. Specifically, Douala is built on two types of land: - Firstly, low land composed of recent slightly consolidated deposits; these soils retain water, creating swamps. - Secondly, sedimentary hills and plateaux formed of consolidated deposits, interspersed with valleys composed of recent poorly consolidated deposits. To a depth of about 100 meters, these plateaux and hills are formed of relatively clayey sand and quartz gravel alternating with multi-colored sandy clays. 3.1.8. Hydrology The Wouri River is the final destination of all the waters of Douala. Its characteristics are as follows: - Maximum flood level: 1,825 m3/s - Ten-year low water level: 83 m3/s - Mean annual discharge: 321 m3/s The city is bordered by two rivers: - The Dibamba (ten-year low water level: 6.5 m3/s) on the left side, flowing into the Wouri River downstream of Douala - The Mungo (ten-year flood level: 1,000 m/s; ten-year low water level: 32 m3/s) on the right side, also flowing into the Wouri River downstream of Douala. The tidal waters from the Cameroon estuary flow into these two rivers, as well as into the Wouri River. In addition, a number of streams flow through various sections of the project zone. They are: - The Bessoussoukou, the Nguete, the Mbopi, the Tongo Bassa, the Drain Magzi and the Mbanya. The Bessoussoukou, a tributary of the Besseke, flows through section 1. Section 5 is crossed by the Mbanya upstream and the Nguete downstream. The Mbopi and the Tongo Bassa flow through section 6, -63 - and sections 7 and 10 are crossed by the Mbopi and the Drain Magzi, respectively. 3.2. Wildlife 3.2.1. Flora The project can be divided into two separate parts; The first part (zone 1), located entirely in the urban sector (sections 1-7 and section 10), has no particular plant life. The second part (zone 2), located outside the city almost completely in the countryside (sections 8 and 9), has ordinary herbaceous plants, mainly grass (Pennisetum purpureum), some trees showing signs of anthropization (Elaeis guineensis, Cocos nucifera, Mangifera indica, ...) and some plantations (macabo and plantain bananas). 3.2.2. Fauna The project is situated in the middle of an urban zone and does not include any protected area or hunting zone. However, in zone 2 located almost completely in the countryside, nests of some common birds (sparrows, swallows, ...) have been identified. 4. THE PROJECT The project involves rehabilitation of the access roads to the industrial zones of Douala. The arteries concemed have been divided into the following sections: - Section 1: Besseke Boulevard - Joss bridge (2,000 ml) - Section 2: Joss bridge - Leclerc Square (1,200 ml) - Section 3: Leclerc Boulevard: Leclerc Square - Dakar market roundabout (1,800 ml) - Section 4: Port boulevard - Dakar roundabout - bridge over the Wouri (800 ml) - Section 5: Reunification boulevard: Wouri bridge - Japoma boulevard (2,600 ml) - Section 6: Artery from Ndokoti intersection - Leclerc Square (6,300 ml) - Section 7: Yabassi camp - Ndokoti (3,850 ml) - Section 8: PK 10 to PK 14 (4,050 ml) - Section 9: Ndokoti-Japoma (5,950 ml) - Section 10: Ndokoti-Truck route from Yaounde to Douala 4.1. Nature of the work The work will consist of rehabilitation of the main arteries of Douala with some specific improvements. It will also, at the request of the contractor, involve resurfacing to complete the conversion to 2 x 2 lanes in the sections from Besseke boulevard to the bridge over the Wouri (sections 1, 2, 3 and 4) and complete renovation of the road system outside the city (PKIO - PK14 and the Ndokoti-Japoma artery), almost completely in the countryside. Thus the project covers two zones in which the work will be somewhat different: - 64 - In the first zone, located entirely within the city (sections 1-7 and section 10), the work will consist of rehabilitation of the existing road system, isolated repairs and, for certain parts of the route, widening of the existing lanes by covering over the gutters. In the second zone, locatedoutside the city (PK 10 - PK 14 and the Ndokoti-Japoma artery), the surface has deteriorated to become like a path over most of the route and has to be completely remade, with construction of embankrnents, excavations and modification of the longitudinal profile but not of the cross-section. 4.2. Description of the project The proposed infrastructure rehabilitation and development are only one part of the project for structural and functional development of the highways, in order to improve communications and access to the port and industrial zones of Douala. 4.3. Interchanges All the interchanges have been studied in detail for each section, on the basis of the traffic survey and with the agreement of the various parties involved. There are 16 main interchanges, which will be reorganized and equipped with traffic lights. In addition, the system of traffic signs will be reviewed and updated to improve user safety. 4.4. Parking The lack of parking space has obliged drivers to park on the highways, reducing the capacity of the highway and slowing down traffic. The demand for parking space depends on the type of occupation and activity in the urban zone and supply depends on the contour and state of the highway. Parking is generally prohibited along the main arteries, particularly for taxis and mini-buses, which for now are completely disorganized and have to park illegally and haphazardly in order to meet their customers' needs. It should be noted that taxi volume represents over 50 per cent of the traffic in Douala on certain arteries. Parking and stopping haphazardly at any time may be extremely dangerous for highway users: once the necessary parking spaces have been provided for taxis, it will be the responsibility of the municipality of Douala to ensure that they are respected. 4.5. Lighting The lighting of the network in question will also be restored, supplemented and modernized for user safety. This also represents a major improvement for the inhabitants of Douala, who will feel safer at night. 4.6. Drainage All drainage systems on the highways affected by the project will be improved or redesigned to preclude any flooding and to improve the existing situation, which is disastrous. The best drainage solution is to treat and remove the mud in natural drains, so that these systems can function normally. This solution could also have a positive impact on public health in Douala, since these treatments would be used in districts which are unhealthy because mudslides often pollute the water, spreading malaria and other endemic diseases. - 65 - 4.7. Maintenance and proportioning On the basis of geotechnical surveys, recommendations have been made for the maintenance and proportioning of the highways to be rehabilitated and for the choice of the techniques and materials to be used. 5. ENVIRONMENTAL IMPACT OF PROJECT INVESTMENTS 5.1. Methodology The Leopold Matrix was used to identify and categorize the environmental impacts of the project. 5.1.1. Identification of impacts For each environmental factor (rows of the matrix), the Leopold matrix method identified the effect of the different actions involved in the project (columns). Actions The actions were placed under two different headings: actions during the work and actions after the work (presence and use of the upgraded highway). Effects The effects were divided into three groups: effects on the physical environment (4 factors), on the natural environment (2 factors) and on humans and their economic and social environment 5 (factors). The 11 factors will be identical for all components of the project in order to achieve a uniform analysis. Soil Surface water Effects on the physical environment Acoustic environment Air quality - 66 - - Soil Project impacts on the soil will mainly occur during the second and third phases of the project. These impacts are: i. Risks of erosion ii. Modification of soil surface properties iii. Risks of pollution from accidental oil spills. After the work - Change in surface water runoff pattern The physical presence of the upgraded highway creates a waterproofed zone which changes the direction and increases the flow of runoff water into surrounding streams, generally with a low flow rate. Thus the presence of the highway, particularly during the rainy season, will alter the surface water runoff pattern. 5.2.2. Positive impacts After the work - Improvement of air quality and of public health and noise reduction By decreasing the amount of dust and gaseous pollutants emitted, the highway improvement will undoubtedly improve air quality and thus decrease the risk of airbome diseases. 5.3. Impact on the natural environment 5.3. 1. Flora The project does not include any zone with rare flora. In the project's first zone (section 1-7 and section 10), the impact of the project on vegetation is very limited. In the project's second zone, however, where there will be more extensive earthworks and widening of the platform, the impact on flora will be more marked, albeit limited to destruction of very common vegetation (grass) and of some trees showing signs of anthropization (Elais guineensis, Cocos mucifera, Mangifera indica, etc.). Although they are located within the road right-of-way, possible damage to a very small number of plantations represents the most important impact on vegetation. 5.3.2. Fauna Since the project is in an exclusively urban zone, it does not involve any protected or hunting zone. However, in its second zone (sections 8 and 9), the project may destroy the habitats of some common birds, which will thus be obliged to seek shelter elsewhere. In general, the project impact on fauna is extremely limited. 5.4. Impact on the socio-economic environment As in the case of the physical environment, the impacts on the socio-economic environment will be felt both - 67 - during and after the work. The "negative" impacts will be felt during the construction work and the positive impacts will occur after the work. 5.4.1. Negative impacts During the work During this period, a number of negative impacts may be noted. These are: - Disruption of urban and intercity traffic The situation will vary depending on whether the work is in the first, second or third phase. During the first phase, when there will be isolated repairs, without enlargement of right-of-way, traffic disruption will be minimal. On the other hand, for enlargements of right-of-way, traffic will at times be practically halted. - Safety problems for users and residents - Problems of access to various utilities, markets, schools and medical establishments and to factories located alongside the routes affected by the project - Temporary interruptions in services (water, electricity, telephone) - Work-related noise. These negative impacts will be minor and temporary, because they will occur only during the work and because measures to eliminate or palliate them can be recommended. 5.4.2. Positive impacts After the work The positive impacts of the project are the most important and result from the completion of the project. These impacts are: - Improvement of drainage. The major consequence is the solution of all problems resulting from non-existent or poor-quality drainage. - Upgrading of road system. The consequence is the solution of all problems connected with the poor quality of the road system, improved safety, reduction of travel time and transport costs. - Increased population mobility for the solution of various problems - Positive effect resulting from easier transport of goods and persons - Improvement of the city's appearance Nevertheless, mention must be made of possible traffic dangers resulting from failure to respect speed limits. - 68 - 6. ENVIRONMENTAL MANAGEMENT PLAN 6.1. Generalprinciples and measures to mitigate negative environmental impacts This part describes technically feasible measures to eliminate or mitigate negative impacts. In this connection, a distinction is made between two types of measure: - Palliative measures: recommended when the project design cannot completely rle out a negative impact (or its probability). - Compensatory measures: restore satisfactory environmental conditions in specific negatively impacted areas. 6.1.1. Physical environment Palliative measures In order to mitigate impacts on the physical environment, the following measures are recommended: - Regular hosing down of earthwork pathways and zones, particularly near dwellings - Speed limits - Maintenance of below-ground runoffs as close as possible to their original condition during the work - Protection of erodable surfaces with revegetation (after top soil grading) or with masoned water-wing or riprap (slope) during the execution of earthwork. - No dumping of rubble or debris within 15 meters of a stream. Recommendations - Proportioning of hydraulic outlets from the highway to prevent flooding of adjacent vulnerable areas (dwellings, crops, etc.) - Collection and incineration of worksite debris - Cleaning and proportioning of channels to evacuate waste water to the Wouri River 6.1.2. Socio-economic environment - Palliative measures These concern safety, scheduling of work on the various sections of the project and psychological preparation/information for the public. - Psychological preparation/information - 69 - Local residents must be made aware of the inconveniences relating to the temporary interruption of services which they will experience during the work. - Public safety This has several aspects, and the main goal is accident prevention. It concerns the safety of children and young schoolchildren, as well as older children and adults. It involves horizontal and vertical road signs. Vertical signs will announce work sites and temporary diversions, in order to avoid accidents during the work. Both types of sign will then be used to indicate entrances to educational establishments, markets and health centers, with speed limit signs. - Scheduling of work In order to minimize the effect of the work on traffic (traffic jams), its timing and location will be carefully scheduled. Detailed preliminary surveys should made it possible to set a time-table for work on the various routes affected by the project. - Temporary diversions In order to limit the effect of the work on the flow of traffic, temporary diversions of a suitable number and type will be designed and introduced at appropriate locations. 6.2. Adoption of palliative measures and accompanying measures A program of palliative and accompanying measures has been proposed to protect the environment. The environmental management program (EMP) brings together in a coherent whole all the measures needed for the harmonious insertion of the project in its environment The following table shows this environmental management program during and after the work. It is subdivided into three main thematic areas: - Physical environment: soil, water quality, water runoff, air quality, noise, appearance and landscaping; - Biological environment: flora and fauna; - Socio-economic environnent: human activities, archeological heritage, public health, safety, housing and pollution, culture and society. Certain specific goals are common to the three thematic areas: - Creation among residents and workers of an awareness of the importance of environmental protection; - Drafting of an Environmental Insurance Plan; - Formulation of rules concerning respect by enterprise staff of environmental work rules. Other goals are specific to individual thematic areas. This plan is accompanied by an estimate of the costs of the environmental measures to be adopted outside the work but within the project, on the understanding that the costs of the environmental measures to be - 70 - included in the work will be taken into account in the contract awarded to the enterprise selected to perform the work. - 71 - ENVIRONMENTAL MANAGEMENT PLAN (EMP) FOR THE PROJECT FOR REHABILITATION OF THE ACCESS ROUTES TO THE INDUSTRIAL ZONES OF DOUALA OVERALL OBJECTIVE: To reconcile project benefits with environmentalprotection EMP COMMON TO ALL THEMATIC AREAS Specific Results Activitles Implementation Actors Objectively Means of Cost Priority objectives period veriflable verification estimates indicators Attention to Local residents and Information From the outset Enterprise Respect for good Reports on Included Essential environmental issues project staff realize campaigns and of work and on a environmental nformation in by residents and the need to protect meetings for schedule to be practices by target campaigns and enterprise project staff the environment residents and determnined groups meetings contract project staff prepared by site manager Formulation of an EIP is drawn up by D *ftng of EIP At the beginning Enterprise - EIP documents Existence of an Included in Essential environmental the enterprise and of the work approved EIP enterprise insurance plan (EIP) approved by the site Approval of EIP - Letter of contract on observance of manager approval of EIP worksite by site manager environmental rules . Drafting of Regulations Drafting of At the beginning Enterprise Project personnel Monthly reports Included in Essential regulations on respect containing rules on regulations on of the work (enterprise/site on enterprise for the environment good environmental respect for the manager) respect environmental contract by project personnel practices and environment the environment activities sanctions for prepared by the non-compliance site manager -72 - EMP SPECIFIC TO CERTAIN THEMATIC AREAS PHYSICAL ENVIRONMENT SOIL Specific Results Activities Implementatlon Actors Objeetvely Means of Cost Priority objectives period verlflable veriflcatlon estimates Indicators Prevenbon of Risks of Turfing and/or After earthworks Enterprise Visual Site Included in Essential soil erosion and erosion, masoned observation manager's enterprise contract break-up of gullying and water-wing by work and andslides are slopes certification diminished Prevention of Risks of Restoration of ARer completion Enterprise Visual Site Included in Essential modification of modification these areas after Df work in said observation manager's enterprise soil surface of soil surface work zones work contract properties properties in certification dumping and excavation wnes are diminished Reduction of Risks of Oil in vehicles During the work Enterprise No Log kept by Included in ssential risk of soil accidental oil and construction contaminate site manager enterprise contract pollution spills are machinery is d sites diminished changed at suitable locations WATER Prevention of Risks of - Opening of During the work Enterprise Water Reports on Included in ssential QUALITY water pollution physical and dumping and quality periodic water enterprise contract chemical xcavation zones standards are analyses pollution of at least 500 m respected water are from a stream diminished - Avoidance of oil spills in to water WATER fforts to Adequate - Cleaning of During the work Enterprise Existence of Site Included in Essential RUNOFF combat flood drainage existing channels unobstructed manager's enterpnse contract isks to parallel and work neighboring -Construction of divergent certification dwellings and channels where ditches odification of none exist hydrographic sy stem _ _ _ _ _ _ AIR Decrease in air Atmospheric - Wearing of From the Enterprise - Visual Site Included in Essential QUALITY pollution and polluton from goggles and beginning of observation manager's enterprise contract reduction of dust and masks work - Testing for follow-up eye and lung exhaust from - Regular hosing lung reports diseases dunng vehicles and of the highway diseases work machineiy is during work diminished, a - Regular are risks of checking of succumbing to exhaust from lung and eye vehicles and diseases construction m_achineryv NOISE Decrease in Risks of - Limit on During the work Enterprise ISurvey of Site Included in Essential - 73 - work-related sound daytime working residents manager's enterprise contract noise pollution are hours ollow-up diminished - Regular reports checking that machine engines are in good __________ ________ working order APPEAR- Decrease m - Piles of Regular garbage At regular UCD Visual ollow-up 5,000 CFA francs/ Essential ANCE pollution by garbage in removal by the intervals observation rt by site ton solid waste city streets Urban anager decrease Community of uring the - Rainwater Douala (UCD) wrk and by evacuation and supervised drains are no garbage disposal fter the work onger ___________ blocked LAND- hIproved Visual impact Upgrading of Towards the end Prvate Visual Site 15,000 CFA Necessary SCAPE appearance of of the ublic parks of work provider observation manager's francs/ the landscape andscape is acknowledge m2 for one simple enhanced ment of work upgrade (lawn + flowers) 50,000 CFA fiancs/ m2 for an elaborate upgrade (lawn, flowers, paths, public benches) ODORS Decrease in Road users Construction of Towards the end Private Visual Site 1 I million CFA Essential bad smells and residents ublic toilets of the work provider observation manager's francs for an are no longer acknowledge verage 40 m2 assaulted by ment of work oilet with 2 unpleasant showers, 3 WC for odors men, 3 WC for women, a septic tank and a cashier area - 74 - BIOLOGICAL ENVIRONMENT Spedfic Result Activitles Implementation Actors Objectively Means Estimated cost Priority objectives period verifiable of Indicators verificatbo n FLORA Reduction of Fewer losses Owners are asked to Before the start of UCD and Visual Site 0 Advisable impact on food ove young work owners observation manager's crops on the plantain banana report road shoots and right-of-way taslant them to open land AUNA MPAC ON VAUNA IS RY SOCIO-ECONOMIC ENVIRONMENT Specific Result Activities Implementa Actors Objectively Means Estimated Priority objectives don veriflable of verification costs p eriod indicators LOCAL Reduction of Local Construction of Towards Private Visual Site 100,000 Necessary ACTIVITIES disturbance inhabitants markets at Ndokoti, the end of providers observation manager's CFA (COMMERC houman engage Japoma, PK 10, PK work work francs/m2 E activities in their small 14 certification ANDSMALL revenue- and allocation of report TRADES) producing space in them activities for small trades (tire, bicycle and m otorcycle repairs) Improved safety Decrease in - Sound signals by the During the Enterprise Visual Included m Essential of highway users traffic accidents railroad crossing work observation enterprise and residents - Provisional vertical contract signs by sections under construction SAF'ETY__ _ _ _ _ _ _ _ _ _ _ _ _ _ - Construction of an Towards the Private Visual Site manager's 95,000 Necessary enclosure by the end of work provider observation acknowledgem CFA Ndog-Hem 11 Health ent of work francs/mI Center (Section 8) - Insertion of speed During the Enterprise Visual Site manager's Included in Essential bumps by schools and work observation work enterprise colleges _ _ _ _ _ fication contract - Construction of During the Enterprise Visual Site manager's Included in Essential access for residents work observation work enterprise certification contract Reduced risks of Project - Awareness From the Private Surveys of Site manager's 30 million Essential STD/AIDS personnel and campaigns begining of rovider ersonnel and follow-up CFA francs PUBLIC propagation residents are - Creation of a work residents report - 75- HEALTH made aware of network for sales of Contraceptive the dangers of contraceptives ales ____________ STD/AIDS _ HOUSING No population relocations are envisaged CULTURE No potential AND impact, since SOCIETY Douala is already cosmopolitan city where several cultural groups oexist and where anpower will be recruited locally ACHEOLO- Nopotential._ GICAL impact identified HERITAGE _ To sum up, we may conclude that: - The project for rehabilitation of the access routes to the industrial zones of Douala will have no significant environmental impact that would prevent its implementation. - For the impacts identified, the project will comprise, firstly, palliative measures to be integrated in the work and, secondly, essential accompanying measures outside the work but within the project In implementing this environmental management plan, the relevant services of the Urban Community of Douala will use the expertise and experience acquired in this area by the Highways Environmental Management Unit of the Ministry of Public Works, within the framework of the transport sector plan. - 76 - Additional Annex 12: Govemment Policy Letter CAMEROON: DOUALA INFRASTRUCTURE PROJECT. MINISTRY OF PUBLIC INVESTMENTS AND REGIONAL DEVELOPMENT GENERAL SECRETARIAT DEPARTMENT OF ECONOMIC AND TECHNICAL COOPERATION No. 107/MINPAT/SG/DCET/BN/BNI Yaoundi, Feb. 1, 2002 Office of the Minister Mr. Robert Calderisi, Director of Operations for Cameroon, World Bank Africa Region Per World Bank Resident Representative in Cameroon, Yaounde Subiect: Transmission of Letter of SubSector Policy on Rehabilitation and Maintenance of the Road Systems of Douala Dear Mr. Calderisi: One of the main recommendations of the IDA Preappraisal Mission for the Project to Rehabilitate the Road Infrastructure in the City of Douala (which visited Cameroon in November 2001), was that a Letter of Subsector Policy from the Government concerning Rehabilitation and Maintenance of Douala's Road Systems should be prepared and forwarded to IDA. In this connection, I have the honor to enclose herewith the said letter with a view to - 77 - continuation of the exanmnation of the dossier by the World Bank staff. Yours sincerely, The Minister of Public Investments and Regional Development (sgd.) [illegible] (stamp) [illegible] - 78 - LETTER OF SUBSECTOR POLICY ON REHABILITATION AND MAINTENANCE OF THE ROAD SYSTEMS OF DOUALA I. GENERAL CONTEXT The city of Douala is built for the greater part on the alluvial basin of the Wouri River, which is the natural outlet for its five main watersheds. The rainfall, which amounts to some 400 mm per year, helps to keep the water table high, which exposes the roads to significant deterioration. As regards demographics, the population, which is growing at a rate of 5% per year, is estimated at 2 million persons occupying an urbanized area of about 20,000 hectares. The city of Douala is Cameroon's chief hub of economic development, because of the concentration of economic activities in it: 95% of the country's total maritime traffic; 60% of the national industrial potential 70% of the national formal economic activity. Douala also has the country's main international airport and its most important railroad station. Besides its national significance in Cameroon, the City of Douala also plays a decisive role for the economic development of the landlocked countries of the Central African subregion, especially for their foreign trade. The fact is that the bulk of all goods shipped out from or intended for the Central African Republic and Chad, and to a lesser extent Gabon, Equatorial Guinea and the Republic of Congo, passes through its port, which handles a total of 6 million tons per year. This transit traffic can be expected to increase appreciably upon the completion of construction of the Bertoua-Garoua-Boulai, Ngaoundere-Touboro-Moundou and Ebolowa-Ambam-Gabon and Equatorial Guinea Border subregional integration highways. In this connection, with a view to improving the quality of its services, expanding its area of influence and, as a result, further increasing its contribution to the competitiveness of the national economy as a whole and of that of the CEMAC area subregion, the Douala Port Authority has just canried out some large-scale investments in equipment and infrastructure, while other no less important ones are programmed. However, the particularly advanced state of deterioration of the urban roads, and especially those linking the Port of Douala with the city's different areas of economic activity, means that the positive effects expected from the investments already made or planned could be cancelled out. At the present time the Port of Douala appears to be practically cut off, due to the - 79 - dilapidated state of the surrounding access roads which carry two thirds of the total port traffic, while the remaining third is shipped out by rail. It has been determined that as a result of this situation the average number of tumarounds between the Port of Douala and the main areas of economic activity is now two, compared with five before the deterioration of the urban road network. Hence the necessity, firstly, of embarking on rehabilitation of the city's road system, starting with the roads serving the port and the industrial areas of the city; this system comprises a total length of 1,700 km, 400 km of which is paved, including 150 km that forms the core system. Then secondly, a sustainable maintenance strategy needs to be devised and implemented. II. PREVIOUS APPROACH TO MAINTENANCE The maintenance of Douala's streets and roads has essentially been handled by the municipality, with the assistance of govenmment resources in recent years. Their present state of disrepair demonstrates the structural limits of the previous maintenance strategies. The current situation is the result, on the one hand, of the confusion over responsibilities and the lack of an institutionally-based maintenance policy, and, on the other hand, the absence of a permanent financing mechanism. To ensure the sustainability of the planned investments, it appears essential to formulate and implement an appropriate strategy for Douala's road systems. HI. THE ROAD MAINTENANCE NEEDS Despite their present limitations, the main thoroughfares of the city's core road system carry a daily traffic ranging between 10,000 and 30,000 vehicles each per day. In light of this heavy load, appropriate solutions for restoring Douala's road systems can only be considered in terms of "rehabilitation." On the basis of the estimates prepared, the financing needed for maintenance of the 150 km of the core system once it has been rehabilitated is put at CFAF 6 billion. IV. URBAN ROAD SYSTEM REHABILITATION AND MAINTENANCE STRATEGY The proposed maintenance strategy for Douala's roads clarifies: the institutional framework, the work-programming mechanism, the sources and mechanism of financing, the contract-award procedures and the method of execution of the works. 4.1 Objectives In alignment with the primary objective, which is to ensure the sustainability of the investments made in order to guarantee better availability of urban road infrastructure, the maintenance strategy formulated aims essentially to: - 80 - - improve transportation conditions in the City of Douala; - improve the accessibility and competitiveness of the Port of Douala; - consolidate the port's role in national economic growth and that of the subregion; - reduce production costs for industrialists; - contribute effectively to the reduction of poverty and protection of the quality of the environment 4.2 Institutional framework The public road domain is made up of a State public domain and a local-authority public domain. The State public domain, consisting of the national and provincial highways and the departmental roads, together with the structures and other adjoining infrastructure, is placed under the shared responsibility of the Ministry of Public Works (roads) and of the Ministry of Urban Affairs [Ministere de la Ville]. The local-authority public domain, for its part, comes under the Urban Community of Douala. 4.2.1 Implementing agency The implementing agency function vested in the Ministry of Urban Affairs will be delegated to the Urban Community of Douala. The conduct of operations will be handled by the technical services of the Urban Community of Douala. The capacities of the Urban Community of Douala (UCD) and its organization will be strengthened to enable it to perform its implementing agency and conduct of operations duties efficiently. To this end, a rational management system for the road network will be set up, for which purpose specialized units will be formed in the technical services of the UCD and grouped together in a department specifically responsible for dealing with road and drainage problems and covering, inter alia, the systematic and periodic gathering of data on the system as a whole, and the analysis and processing of these data; the permanent inspection of the system; and the planning, programming and implementation of the works. A staff consisting of among others three highway and urban engineering specialists will be assigned to these units. With the support of the competent central services and to help facilitate this change, the UCD undertakes to provide sessions of appropriate training on a regular basis for all persons involved in the management cycle of urban road maintenance, drawing inspiration from and utilizing the benefits of the relevant reforms implemented in the Ministry of Public Works in particular in recent years. 4.2.2 Monitoring and evaluation A Monitoring Committee for the entire annual program of maintenance works, attached to the Ministry of Urban Affairs and responsible for examining, issuing opinions and evaluating the - 81 - annual program of works submitted by the UCD, will be set up. This committee will be made up of representatives of the Ministry of Economy and Finance, of the Infrastructure and Intercommunal Intervention Fund, of the Ministry of Public Investments and Regional Development, of the Ministry of Public Works, of the Ministry of Transport, of the UCD and of the private sector, in particular representatives of the carriers. 4.2.3 Financial resources and sustainability of the investments The permanent financing of the maintenance of the rehabilitated infrastructure will be assured by contributions from the State and its agencies (FEICOM, Road Fund) and from the resources of the Urban Community of Douala. The present level of the resources of these different sources of financing is insufficient to cover the needs for sustainable maintenance. The State accordingly undertakes to increase them by means of: - an increase in the funding allocated to the UCD by FEICOM, derived from increases in local taxes; - diversification of the sources of financing of the Road Fund and increasing of the share allocated to urban roads; - an improvement in revenue collection by the UCD, and increasing of the share of local-authority funds allocated to the Road Maintenance Account established by the UCD. The amount of the contribution referred to above will be fixed annually, on the basis of a distribution key. The State undertakes to expand the list of obligatory local-authority expenditures to include in particular those relating to strengthening and maintenance of road and drainage infrastructure. On the basis of the road maintenance needs estimated for the next five years, the State, through FEICOM, the Road Fund and the UCD, undertakes to pay into the Road Maintenance Account each year (base cost: year 2002): CFAF 655 million in 2001-2002; CFAF 1,105 million in 2002-2003; CFAF 2,545 million in 2003-2004; CFAF 3,810 million in 2004-2005; CFAF 5,205 million in 2005-2006; and CFAF 5,955 million in 2006-2007. The total amount of the funds allocated will be held in the UCD Road Maintenance Account, opened in a first-rank banking establishment pursuant to the conditionalities of a previous international loan agreement, and financed to date by the UCD's own funds plus the balance of the UCD's claims on the State deriving from a part of the proceeds from increased taxes not transferred to the UCD by the State in previous years. The State also undertakes to consolidate its debt to the UCD each year and that the balance of the claims resulting would be used for the most part for financing the Road Maintenance Fund. - 82 - In the performance of its expanded role, the funds domiciled in the Road Maintenance Account will be devoted exclusively to the maintenance of the road and drainage systems of Douala. The account will be audited semiannually by a specialized audit firm selected by means of international bidding. In addition, appropriate mechanisms that will enable recovery of the cost of the services and infrastructure together with participation by the residents of the city in their financing will be prepared and put into effect. 4.2.4 Awarding of contracts and execution of maintenance works The works will be executed under contract. The contracts will be awarded systematically after open bidding competitions. The UCD will however, be able to deploy light repair teams to take care of urgent and specific needs. The Public Contracts Unit and the financial services of the UCD will be strengthened by the addition of both, qualified human resources (a financial analyst, an administrative officer, an accountant) and equipment, particularly information technology, to enable them to perform their functions efficiently. The programming of the maintenance works will be based on their economic return, using the most effective information-technology tools adapted to the local urban environment so as to cause the least inconvenience to traffic and to residents and businesses bordering the works. The Urban Community of Douala undertakes to apply a transparent and efficient policy of promoting small and medium enterprises and industries in the road maintenance field in order to foster the development over time of a body of industries that will create both employment and value added. The requirement to maximize utilization of highly labor-intensive maintenance techniques will be emphasized in the bidding documents sent out to potential contractors. - 83 - MAP SECTION MALI .i . 200 I12° 14 160 NIGER 0 h. d pe dtd - .. . WodUkni tboundoneCHAD C ' . .0; ,- _+ _, Z _ CHAD >SUDAN on o__ ob o oENINS. a ! . orpoo ony rn ore o,,crf ; NIGERIA K 0.. Kuer, '~ i ) g