Document of The World Bank FOR OFFICIAL USE ONLY Report No. 7497-GA STAFF APPRAISAL REPORT THE GABONESE REPUBLIC ROAD MAINTENANCE PROJECT MARCH 16, 1989 Occidental and Central Africa Department Infrastructure Operations Division This document has a restricted distribution and may be used by recipients only in the performance of their official duties. Its contents may not otherwise be disclosed without World Bank authorization. CURRENCY EQUIVALENTS Currency Unit CFA Franc (CFAF) USS1.0 = CFAF 309 CFAF 1 = US$0.003 CFAF 1 million = US$3236 FISCAL YEAR January 01 -- December 31 SYSTEM OF 4ETGHTS AND MEASURES (METRIC) 1 meter (m) = 3.28 feet (ft) 1 kilometer (km) = 0.62 mile (mi) ]. square kilometer (km2) = 0.39 square mile (sq mi) 1 metric ton (t) 2,?05 pounds (lb) ABBREVIATIONS AND ACRONYMS Item ---------------------------------- English/French ---------------------------------- AfDB African Development Bank/Banque Africaine de Développement AIR GABON Gabon Airlines!La Compagnie nationale Air Gabon ASECNA Agency for Air Navigation Safety/Agence pour la Sécurité de la Navigation Aérienne BEAC Bank of Central Africar States/Banque des Etats de l'Afrique Centrale CGPDE General Commission for Plan, Development and Economy/Commission Générale du Plan, de Développement et de l'Economie (CMPE) CNI Inland Navigation Company/La Compagnie Nationale de Navigation Intérieure COMILOC Ogooue Mining Company/Compagnie Minière de l'Ogooué DERA Directorate for Road and Airport Maintenance/Direction de l'Entretien des Routes et Aérodromes (DGTP/TffPECAT) DCEP Ceneral Directorate of Studies and Programming/Direction Générale des Etudes et de la Programmation (MTPECAT) DGTP Ceneral Directorate of Public Works/Direction Cénérale des Travaux Publics (MTPECAT) DIT Directorate of Transport Infrastructure/Direction des Infrastructures de Transport DOM Directorate of ,q~uipment/Direction de l'Outillage Méchanique ERR Economic rate Gf return/Taux de rentabilité économique ETTPF Technical School for Public Works at Fougamou/Ecole des Techniciens des Travaux. Publics de Fougamou FAC French Bilateral Assistance/Fonds d'aide et coopération LBTPG Public Works Laboratory/Laboratoire du Bâtiment et des Travaux Publics du Gabon M Million/million M-M Man-months/homme-mois MPDE Ministry of Planning, Development and Economy/Ministère de la Planification, de Développement et de l'Economie MTPECAT Ministry of Public Works, Equipment, Construction and Territorial Development/Minis- tère des Travaux Publics, de l'Equipement, de la Construction et de l'Aménagement du Territoire OCIRA Gabonese Railways/Office du Chemin de Fer Transgabonais OPRAG Gabonese Port Authority/Office des Ports et Rades du Gabon SAL Structural Adjustment Lending/Prêt d'ajustement structurel TPU Training Production Unit voc Vehicle Operating Costs/Coût d'opération des véhicules vpd Vehicles per day/Véhicules par jour FOR OFFICIAL USE ONLY THE GABONASE REPUBLIC ROAD MAINTENANCE PROJECT STAFF APPRAISAL REPORT Table of Contents Page No. LOAN AND PROJECT SUMMARY ................................. i I. INTRODUCTION ............................................. 1 A. Background .......... ................................. 1 B. The Economy . .......................I................. 1 II. THE TRANSPORT SECTOR ......................2.............. 2 A. Transport System and Sub-sectors ..................... 2 B. Sector Strategy and Issues ........................... 4 C. Bank-financed Transport Projects ..................... 5 III. THE ROAD SUB-SECTOR ...................................... 6 A. The Network .......................................... 6 B. Planning ............................................. 8 C. Administration ....................................... 8 IV. THE PROGRAM AND THE PROJECT .............................. 10 A. The Program .......................................... 10 B. Project Objectives ................................... 10 C. Project Descrlption .................................. 10 D. Project Costs and Financing .......................... 16 E. Implementation ... ................................... 18 F. Procurement .......................................... 20 G. Disbursements ........................................ 22 H. Accounting, Auditing and Reporting .... ............... 23 V. ECONOMIC EVALUATION ...................................... 24 A. Methodology .......................................... 24 B. Economic Returns ..................................... 25 C. Risks .......... ...................................... 25 D. Environmental Implications ........................... 25 VI. AGREEMENTS REACHED AND RECOMMENDATIONS .... ....... ...... 26 This report was prepared by Messrs. Harald Hansen (Task Manager, Senior Transport Economist), and Barry H. Van Waes (Senior Highway Engineer). Mr. Aurel Borlestean (Highway Engineer, Consultant) also participated in its drafting. Mr. J. M. Lantran from the Africa Technical Department pro- vided advice in the preparation of the project and the report. The report vas prepared on the basis of a transport mission in April 1988, an appraisal mission in July 1988, and a public investment review mission in October 1988. Secretarial work and typing were done by Ms. Denise Martin and Miss Marcelle E. Houle. This document has a restricted distribution and may be used by recipients only in the performance of their official duties. Its contents may not otherwise be disclosed without World Bank authorization. Table of Contents (continued) Page No. ANNEXES 2 Organigram of Ministry of Public Works, Equipment, Construction and Territorial Development ................. 27 3 Road Network and Traffic Volumes ........................ 28 4-1 Roads and Bridges Maintenance Works by Contract 29 4-2 Works by Force Account .. . . ........ ......... 30 4-3 Cost Estimate for Rehabilitation of Equipment .3........ 33 4-4 Cost Estimate for Roads Equipment ................. 35 4-5 Cost Estimate for Training 39 4-6 General Outline of the Three-year Training Program. 40 4-7 Technical Assistance .. ............... . ...... 47 4-8 Terms of Reference for Technical Assistance 48 4-9 List of Computer Equipment ..... 61 4-10 Road Study Program.. ......... . ........... . ........ 62 4-11 Cost Estimate. 63 4-12 Project Cost Estimate and Financing. 64 4-13 Project Implementation Schedule .... 65 4-14 Action Plan.................. . ... 66 4-15 Disbursement Schedule. 68 5-1 Economic Evaluation of Roads and Bridges Maintenance Works by Contract ....... ..... 69 5-2 Economic Evaluation of Road Maintenance by Force Account.. 70 APPENDIX: Documents in the Project File. .......... 71 MAPS: IBRD 20594 IBRD 21108 THE CABONESE REPUBLIC ROAD MAINTENANCE .;ROJECT LOAN AND PROJECT SUMMARY Borrower: Gabonese Republic Beneficiary: Ministry of Public Works, Equipment, Construction and Territorial Development Loan Amount: US$30.0 M Terms: Amortization over 15 years, including 5 years of grace at the Bank's standard variable interest rate plus standard commitmnent. Project Description: Project covering (a) a program of road maintenance by contract; (b) a program of routine and limited periodic road maintenance by force account for gravel and earth roads, including rehabilitation of existing maintenance equipment and purchase of complementary equipment and spare parts; (c) training; (d) institutional strength- ening in the road sub-sector; and (e) preparatory and follow-up studies. The project will be reviewed annually in light of avail- able funding and priorities. Project Benefits and Risks: The project is designed to stop road deterioration and increasing transport costs which, if unattended, would increasingly deter economic activity, particularly agricultural and forestry development. It will also introduce new policies and practices in road maintenance, strengthen the institutional framework and lay the basis for a higher level of road maintenance and rehabilitation following the current economic adjustment period. Summary Project Cost Estimate ---------------- USS million ---------------- Item Local Taxes Foreign Total 1. Road Maintenance by Contract 7.5 4.5 18.7 30.7 2. Road Maintenance by Force Account 16.1 10.5 25.0 52.6 3. Training 0.8 0.. 2.2 3.8 4. Institutional Strengthening 0.4 1.0 4.4 5.8 5. Studies 0.2 0.3 1.9 2.4 Subtotal 25.0 17.1 52.2 94.3 Physical Contingencies 1.2 0.9 2.6 4.7 Price Contingencies 2.6 2.1 6.3 11.0 Total 28.8 20.1 61.1 110.0 % 26 18 56 100 - il - Financing Plan ------ USS million ------ % of Item Local Foreign Total Project Cost Government Funds 48.9 -- 48.9 44 IBRD -- 30.0 30.0 27 AfDB -- 31.1 31.1 29 Total 48.9 61.1 110.0 100 Estimated IBRD Disbursements (US$ million) Type FY89 FY90 FY91 FY92 FY93 FY94 Annual 2.0 7.0 7.5 7.0 5.0 1.5 Cumulative 2.0 9.0 16.5 23.5 28.5 30.0 Rate of Return: Overall: about 55% Components: ranging from a minimum of 12% to more than 100% Estimated Project Completion: June 30, 1993 Maps: IBRD 20594 IBRD 21108 AFlIN March 16, 1989 THE GABONESE REPUBLIC ROAD MAINTENANCE PROJECT I. XNTRODUCTION A. Background 1.01 The Government of the Cabonese Republic (Gabon) is carrying out, with the assistance of the Bank and other donors, a structural adjustment program to overcome the economic and financial crisis brought about by the 1986 collapse of petroleum prices. As part of the program, the Government has requested the Banik to help finance a road maintenance project during the structural adjustment period estimated to last through 1991. The proposed project is designed to strengthen the institutional and operational perfor- mance of the road sub-sector and introduce new policies and measures to improve the efficiency of the use of road maintenance resources. 1.02 The proposed project complements the Bank's Structural Adjustment Project (SAL) (Loan 2933-GA, approved on April 21, 1988) under which minimum levels of road maintenance expenditures were set and the restructuring of the transport parastatals was initiated. The combined effects of the SAL and the proposed project would promote a more efficient use of resources in the trans- port sector, preserve past investments, provide essential transport services for productive areas and contribute to the Gabonization of road maintenance planning and management and to the development of local construction enter- prises. The proposed project will ensure that by the end of the structural adjustment period, Gabon will be well positioned to continue to upgrade and expand its road system through improved maintenance, rehabilitation and upgrading of the existing network B. The Economy 1.03 Gabon is a medium-sized (267,000 km2) country with a sparse popula- tion of about one million. It is located near the equator along 750 km of the West African Coast. Gabon borders on Cameruon and Equatorial Guinea to the north, Congo to the east and south, and the Atlantic Ocean to the west (Map IBRD 20594). About half the population is concentrated in the three main urban centers of Libreville, the capital city; Port-Gentil, the oil port and major economic center; and Franceville, a smaller center in the interior and terminal point of the Transgabonese Railway. The urban population is growing by about 2.3% p.a. compared to only 0.9% p.a. for the rural population. The country comprises two distinct geographic areas: the low-lying swampy coastal region, and a mostly forested and hilly region which covers most of the country. Tropical vegetation, extensive forests, and tropical soils make access to the interior difficult and costly. 1.04 Gabon has always been a commodity exporter where economic activities are carried out in enclaves. Prior to the oil era, Gabon depended heavily on forestry and mining exports, particularly manganese. Oil production first began in 1957 and assumed increasing importance in GDP over time. By 1974, after the first major hike in oil prices, oil revenues accounted for 75% of exports and 50% of Government revenues, and, as a result, the pace of economic activity became closely linked with international oil prices. The rapid increase in oil revenues encouraged the Government to expand the public sector, and to undertake an ambitious investment program resulting in budget deficits. Such developments were quickly reflected in the level of per capita CNP. From a modest US$270 in 1960, per capita national income doubled by 1970 to peak at about US$4,000 in 1980. However, due to softening oil prices and rapid inflows of migrant workers, it declined to an estimated US$2,750 in 1987. Even so, per capita national income is the highest in Sub-Saharan Africa. 1.05 The current ecanomic and financial crlsis was provoked by a precipi- tous fall in Government oil revenues from about CFAF 400 billion in 1984 and 1985, to CFAF 285 billion in 1986 and CFAF 70 billion in 1987. As a result, GDP declined by about 6% in 1986 and by another 13% in 19P7. To reduce the large Government deficits and the accumulation of significant arrears to domestic suppliers, the Government reduced total expenditures by 48% in 1987, thus reducing the deficit from 15% to 8% of GDP. The collapse of oil revenues has had grave implications for the rest of the economy as well. The reduction of public expenditures, especially investment, has severely depressed the construction, commercial and service sectors which were significantly in- creased during the boom years hy oil-related expenditures. Expenditures for both road construction and maintenance were reduced sharply. This general slow-down created secondary repercussions on the Government's budget by reducing non-oil revenues. 1.06 Faced with the deterioration of budgetary revenues in 1986, the Gavernment adopted a 25-month stabilization program, which was approved by the IMF Board in December 1986. Following this, Gabon benefited from substantial debt relief provided by the Paris and London Clubs. At the same time, there was a growing recognition that Gabon faced a number of structural problems including inefficient public resource management, a limited production base, a serious urban bias of economic activity, a high wage-price structure, a limited human resource base, inefficient public enterprises, and weak private initiatives and incentives. To complement the stabilization measures and deal with the more fundamental structural problems, in 1987 the Government prepared and started to implement a structural adjustment program which provided the basis for the SAL (para 1.01). More details on the general economic situation and the structural adjustment program are given in Document No. P-4742-GA, Report and Recommendation of the President to the Executive Directors on a Proposed Loan of US$50 Million to the Gabonese Republic for a Structural Adjustment Program. II. THE TRANSPORT SECTOR A. Transport System and Sub-sectors 2.01 With the completion in 1987 of the Transgabonese Railway, Gabon has a fairly well developed and diversified transport network comprising (a) a road network of about 7,700 km which is deteriorating rapidly because of lack of maintenance; (b) a new 649 km railway between the port oi Owendo/Libreville and Franceville operated by the parapublic Gabonese Railways (OCTRA) which is - 3 - suffering from riajor financial difficulties; (c) two ports at Owendo and Port-Gentil, each with a commercial port and a timber port operated by the Gabonese Ports Authority (OPRAG); (d) a domestic aviation system comprising some 110 airports or landing strips, of which 3 international and 24 domestic airports are served by AIR GABON, the national airline, also in financial difficulties -- the main international airport at Libreville is operated by a mixed economy company; and (e) a system of lagoon and river transport in the provinces of Ogooue Maritime and Moyen Ogooue operated in part by the Inland Navigation Company (CNI). A Transport Strategy Note (TSN), available in the project file (Appendix), provides more information on the transport system. 2.02 The transport network is characterized by a fairly good comple- mentarity between the modes. However, standards between modes and within a single mode are uneven, as reflected in the high standards and large excess capacity of the railway on the one hand, and the modest standards and rapid deterioration of the road network on the other. This reflects the imbalances in funding made available for construction and maintenance in recent years. Similarly, in aviation there is an imbalance between the large number of airports of international standards and the types of aircraft operated by AIR GABON, as compared to the lack of equipment and lighting for smaller air- ports. This results in regional imbalances, as the northern and eastern parts of the country are at a relative disadvantage compared to other parts served by the railway and/or air service. 2.03 The main transport infrastructure is of a relatively recent date and its construction and financing have weighed heavily on the Government's budget. This is particularly true for the railway with a total construction cost of about CFAF 1000 billion. During the period 1980-86, transport ac- counted for more than 50% of public investments or almost 10% of GDP. The largest part (about two thirds) was accounted for by the railway which carries only 7% of the passenger traffie and 17% of the freight, in terms of passenger and goods kilometers. However, while roads accounted for only 20% of infra- structure investments, they carry about 64% of interurban passenger transport and 45% of merchandise transport. Aviation accounts for about 26% of passen- ger transport and 1% of freight, while lagoon and river transport account for 3% and 37%, respectively. With regard to goods transport, roads are particu- larly important for general goods but also account for about a third of timber transport. River transport accounts for most of the fuel transport and, together with the railway, for the bulk of timber transport. Apart f rom growing timber transport, the railway is particularly important for the transport of clinker and sand, and will, from 1989, transport about half of the manganese ore exports currently shipped via Pointe Noire in the Congo. 2.04 Road transport is operated by private individuals, many of whom are expatriates from other African countries, under a system of partial regula- tion, through licensing and official tariffs with upper and lower limits. The supply of road transport capacity seems reasonably adapted to demand. A money losing transport parastatal for urban transport (SOTRAVIL) was liquidated in 1986, and private taxis and minibuses have taken over the traffic without major shortages but with higher tariffs. 2.05 The other modes of transport are, however, characterized by exclu- sive monopolies of parastatals such as OCTRA, AIR GABON and OPRAG. Para- statals are also involved in lagoon and river transport (CNI) where some - 4 - private operators are also active on certain routes, and in maritime shipping where the natlonal shipping line is operating within the liner conference system. Most parastatals have suffered deficits since they were established and needed substantial operating and/or capital subsidies. This situation has worsened during recent years because of stagnating or declining traffic as a result of the economic slow-down, insufficient control over costs and lack of tariff increases. Restructuring of the transport parastatals is a high priority of the Government under the SAL (paras 2.09-2.10). 2.06 Transport costs are high, reflecting the generally high level of costs in the courtrv, and insufficient cost control by the transport para- statals. In addition, OCTRA has overcapacity, while road transport suffers from the relatively low standard of the network and insufficient road mainte- nance. Railway tariffs are about 50% higher than in neighboring countries but do not cover even direct expenses. 2.07 While cost recovery is clearly insufficient for the transport parastatals with the partial exception of OPRAG, overall cost recovery is adequate in the road sector. Road user taxes are estimated at about CFAF 19 billion in 1986, of which roughly 50% were from interurban transport and 50% from urban transport. Road user revenues from interurban road trans- port were almost three times expenditures on road maintenance in 1986 (CFAF 3.4 billion) and would cover the long-term cost of road maintenance and rehabilitation. However, preliminary information indicates some cross subsi- dization between light vehicles and heavy vehicles, as discussed further in the Transport Strategy Note available in the project file. During negotia- tions, the G.overnment agreed that it will carry out a study on road user taxes and, not later than January 1, 1990, submit to the Bank on this basis, a program aimed at ensuring that heavy vehicles will contribute appropriately to the cost of road maintenance. Thereafter, the Government will implemert the program in accordance with a timetable agreed with the Bank. A first -;et of measures to improve cost recovery for heavy vehicles will be implemented by July 1, 1990. Terms of reference were discussed and agreed during loan negotiations. B. Sector Strategy and Issues Parapublic Enterprises 2.08 The Government's Declaration of Development Strategy for the SAL sets out the following priority measures for the transport sector: (a) appli- cation of the recommendations of the audits of the parastatal enterprises in the sector; (b) implementation of an emergency program of road rehabilitation and maintenance to provide at least minimal access to agricultural and forest- ry regions; and (c) definition of a strategy for the balanced development of the various transportation modes. 2.09 During the period 1984-87, the five main transport parastatals had a cumulative working deficit of CFAF 22 billion, and an operating deficit after amortization and interest of CFAF 127 billion, on revenues of CFAF 200 bil- lion. Despite CFAF 23 billion in operating subsidies, their financial situa- tion deteriorated. Their consolidated balance sheet as of December 31, 1987, shows a long-term debt of some CFAF 20 billion and a negative working capital of about CFAF 54 billion. The working deficit of the parastatals was mainly due to OCTRA with smaller deficits for AIR GABON and CNI, while OPRAG and SONATRAM at least covered their working expenses. These deficits are due to lack of clear objectives and control, both internally and externally; inade- quate management; overstaffing; Government interference in operations, partic- ularly in employment and investments; and, m( ' recently, lack of tariff in- creases. 2.10 Recognizing the seriousness cf the situation, in early 1987 the Government started diagnostic audits of the five main transport parastatals as well as other major parastatals to assess the situation of each. It will propose an action program to restructure, privatize or liquidate them to reduce their burden on the public finances. Similar studies/audits will be started shortly for other less important enterprises. Satisfactory progress on public enterprise reforms, including adoption of programs to reform at least 22 parapublic enterprises, are conditions of release of the sicond tranche of the SAL. This includes the two main transport parastatal enter- prises of OCTRA and AIR GABON for which rehabilitation proposals have been made with implementation to start end 1988. Transport Planning 2.11 Coordinated transport planning has not been given high priority in recent years. Such planning is made more difficult by the absence of reliable information on the sector, and a split in responsibilities. No comprehensive analysis of the sector has been carried out since the national transport plan of 1978. The Government is aware of the need to improve the collection and analysis of transport data and this will be assisted under the proposed project. From an administrative point of view, the transport sector is divided among four ministries: the office of the First Vice Prime Minister, inter alia responsible for OCTRA; the Ministry of Transport and Aviation, responsible for road transport and aviation; the M-fiistry of Public Works, Equipment, Construction and Territorial Development (MTPECAT) (Annex 2), responsible for roads and airport construction and maintenance; and the Ministry of Merchant Marine, responsible for shipping and ports. In addition, the Ministry of Planning and Economy is responsible for overall coordination of sector planning. While focussing mainly on roads, the project will also provide a sounder basis for transport planning in the future, particularly after the adjustment period, through the preparation of a master plan for roads, and establishment of a sectoral data bank. This complements the measures which are being adopted under the ongoing SAL (para 2.10). During negotiations, the Government agreed that, by November 30, 1989, and not later than November 30 of each year thereafter, it wil' forward to the Bank for its review and comments its proposed annual transport sector expenditure program for the subsequent year and finalize this program taking the Bank's comments into consideration. This would continue for the sector the general expendi- ture review initiated under SAL. C. Bank-financed Transport Projects 2.12 The Bank has not been involved in the transport sector since 1975 when the last of two highway projects was completed. The First Highway Project (Loan 385-GA, US$12.0 M, 1964) was for the reconstruction of three road sections -- N'DJole-Alembe (40 km), Alembe-Ayem (65 km), and Alembe-Lala- ra (80 km). The Second highway Project (Loan 580-GA, US$6.0 M, 1969) was for -6- the reconstruction of another two road sections, Lalara-Mitzic (55 km) and Lalara-Koumameyong (64 km). All were laterite roads. Both projects were successfully completed in 1968 and 1975, respectively; the latter is discussed in the Project Performance Audit Report No. 1457 dated February 15, 1977. The completion of the second project was delayed three years, largely because of the time needed to procure addi4ional maintenance equipment. Onfortunately, because of inadequate road maintenance in recent years, the Bank-financed road sections have seriously deteriorated. Maintenance of these roads will form part of the proposed project. 2.13 In June 1959, the Bank also made a loan of US$35 M to the Manganese Mining Company, COMILOG, (240-F). Although it was largely used to provide transportation, namely a 76 km cableway between the Ccngo and Gabon and a 285 km railway to link the mine with the existing Congo-Ocean Railway in Congo, this operation was classified as a mining project. In 1973, the Bank was solicited but declined to participate in the financing of the Transgabon- ese Railway which it considered not economically justified. Finally, in April 1988, IFC approved a loan of US$32 M to COMILOG for the construction of a mineral terminal, a repair workshop, and provision of rolling stock to permit the handling of at least half of Gabon's manganese exports of about 2.5 million tons per annum now being shipped through the Congo. The project has been substantially completed, and the port facilities were inaugurated at the end of 1988. III. THE ROAD SUB-SECTOR A. The Network 3.01 The road network totals about 7,700 km of which about 700 km are paved, 1,300 km are modern laterite roads, and 3,300 km are gravel or laterite surfaced roads. The remaining 2,400 km are unclassified earth roads and tracks serving agricultural areas. Gabon has one of the lowest densities of roads in the region with 0.03 km per km2, similar only to neighboring Congo. By comparison, Cameroon and Nigeria have much higher densities of 0.14 km per km2 and 0.16 km per km2, respectively. The interurban road network is divided into three classes, national, provincial and departmental roads. The status of the road network is given in the table which follows. Road Network (km) Category Paved Unpaved Total Expressways 24 -- 24 National roads 476 3,122 3,598 Provincial roads 12 1,089 1,101 Departmental roads 59 2,248 2,307 Urban streets 117 44 161 Subtotal MTPECAT 688 6,503 7,191 Roads matntained by others -- __ 542 (COMILOG, Port-Gentil, etc.) Total 7,733 of which classified network amounts to 5,300 The road network is distributed unevenly across the country, with the denser network in the populated areas of Franceville, Oyem and Mouila. The paved network is largely around Libreville and Franceville. 3.02 The road network has in recent years received insufficient funding (para 2.02) and has deteriorated to the point that access to many productive areas is becoming increasingly difficult and costly. Some sections may become impassable if corrective measures are not taken over the next years. The problems are not only those of budgets and irregular release of funds, but also weaknesses in the existing organization and lack of work programming with clear standards and control of execution. Moreover, there is a serious shortage of skilled and competent local staff at all levels in the organiza- tion with numerous in-line positions being filled out by expatriates. These problems are described further below, and correcting them forms the basis of the proposed road maintenance project. 3.03 The poor state of the road network, combined with heavy rainfall in most regions of the country, cause major difficulties in transporting agricul- tural products to markets and contribute to the high cost of transport. This situation constitutes a serious obstacle to the efforts of the Government to develop and expand the agricultural sector. 3.04 The road fleet is estimated at about 30,000 vehicles. It includes about 2,000 trucks, 800 buses; the remainder are passenger cars, vans, mini- buses and special purpose vehicles. The growth of the fleet was rapid up to 1977 but slowed down to 2% per year since then. Traffic varies according to the type of road and the region that it serves. According to a survey con- ducted in 1984, traffic averaged almost 200 vpd on the national roads, 660 vpd on the most heavily trafficked roads in urban areas, 90 vpd on regional and local roads and about 20 vpd on the tracks. Since 1984, traffic has eased somewhat because of the country's economic difficulties. Estimated traffic distribution by type of roads in 1987 is given in Annex 3. -8- B. Planning 3.05 The General Commission for Plan, Development and Economy (GCPDE) in the Ministry of Planning, Development and Economy (MPDE) is responsible for overall planning and establishing sectoral priorities. MTPECAT is in charge of the management of the road sub-sector including maintenance, rehabilita- tion, and new construction. The General Directorate of Studies and Program- ming (DGEP) in MTPECAT is responsible for the planning and programming of road works. 3.06 Although planning capacity has been strengthened over recent years with the assistance of several experts from FAC and consultants in advisory and in-line positions, a number of serious weaknesses remain. These include: (a) insufficient planning of new works and periodic road maintenance and absence of adequate selection and ranking of these works based on economic analysis; (b) the absence of a comprehensive data bank and insufficient information on traffic flows, vehicle weights, the actual state of roads, bridges, and culverts and their rate of deterioration; and (c) lack of infor- mation on the qualifications of personnel, improper recruitment and training, and insufficient follow-up on their performance. 3.07 In 1984/85, MTPECAT engaged a consultant to carry our a detailed study of the Gabon road network and its needs. The study called for an extensive road rehabilitation program, the cost of which would call for a threefold increase of the annual maintenance budget. The proposed program far exceeded what is feasible, particularly taking into account current financing possibilities, and is not economically justified in light of current demand for transport services. This program has now been reduced to the high priori- ty road maintenance project now proposed. C. Administration 3.08 The General Directorate of Public Works (DGTP) of MTPECAT is respon- sible for the construction and maintenance of the road network, while the DGEP is responsible for planning, carrying out detailed technical studies, and preparing bid documents for works executed by contract. DGEP is assisted by its Road Research Center which provides data on roaci inventory, studies the impact of construction and maintenance operation on the road network, and identifies and studies supplies of construction materials. The DGTP is also responsible for the operation and maintenance of equipment. Within DGTP, the Directorate of Transport Infrastructure (DIT) is directly responsible for construction and maintenance works by contract while the Directorate for Roads and Airport Maintenance (DERA) is responsible for maintenance works by force account. There are four regional sub-directorates, with four sub-divisions each, and a separate regravelling brigade to ensure the maintenance on the non-paved road network of about 7,000 km. With the exception of some manual works done by the sub-divisions, maintenance of paved roads is contracted out. 3.09 DGTP's Directorate of Equipment (DOM) is responsible for the pro- curement of equipment, for the supply of spare parts and for major equipment repairse. It operates a central workshop in Libreville which is adequately staffed and well equipped. The road maintenance equipment is assigned to the sub-divisions which are responsible for its operation and for minor repairs. DOM's fleet includes about 400 units, a large percentage of which, however, - 9 - are overaged. The fleet has become inadequate and many brigades are out of service for lack of equipment. There is no provision in the budget for regular replenishment of worn out equipment. The last substantial budget allocation for equipment renewal dates back to 1984. 3.10 The organization and operation of DOM needs to be improved to eliminate the following shortcomings: (a) lack of information regarding sub-divisions' usage and servicing of equipment; (b) the absence of regional workshops to repair equipment and provide logistical support for its servic- ing; (c) high cost of repairs; and (d) the absence of a policy for equipment replacement. 3.11 The capacity to maintain the road network by the sub-divisions is handicapped by: (a) a shortage of equipment and funding; and (b) the organ- ization of maintenance personnel whose advancement is limited to working in a sub-division, rather than the more challenging assignments of the main road system. This situation is aggravated by the lack of a detailed annual work programs which would select the highest priority tasks to be undertaken, establish in advance the work to be carried out, and procure the equipment and supplies reqtired and the funding needed. There is also a shortage of experi- enced local staff which is partly compensated by French Bilateral Assistance (FAC). 3.12 In an effort to remedy the above shortcomings, the proiect calls for: (a) strengthening the capacity of DERA in planning and supervising the work; (b) raising the output of maintenance crews to established norms; (c) strengthening the role and authority of the regional directorates over the subdivisions; (d) carrying out an accelerated program to recruit, train and promote local staff to take over the majority of those in-line positions now held by foreigners; and (e) executing certain mechanized works with regional crews. The project will also strengthen DOM by establishing regional work- shops and by providing technical assistance to the workshops and to the regional directorates. Such assistance will include ail matters involving the organization of the work crews, the operation and maintenance of equipment, training of personnel, and budgetary control. 3.13 Lack of adequate training is one of the ma-n deficiencies currently affecting MTPECAT. The training of personnel of MTPECAT is the responsibility of the Directorate of Personnel and is carried out by the Technical School for Public Works at Fougamou (ETTPF) and the Training Center in Libreville. In recent years, the activities of these two training schools have been greatly reduced because of the lack of funding. They will be revitalized under the project to resume their role in training maintenance staff, and retraining personnel in the management and supervision of equipment repair. The project also provides for fellowships for specialized training abroad. - 10 - IV. THE PROGRAM AND THE PROJECT A. The Program 4.01 The Government's three-year road rehabilitation and maintenance program for the period mid 1989-92, as appraised in July 1988, totals some CFAF 45 billion (US$147 M equivalent) with a foreign exchange cost of about CFAF 29 billion. During an October 1988 public investment review, it became clear that the Government was not in a position to finance from its own resources both the local costs as well as a substantial portion of the foreign costs of the program. It was, therefore, decided to give first priority to the road maintenance components of the program, including related technical assistance and training and to defer, for the time being, the road rehabilita- tion works as well as certain periodic maintenance works and the construction of three new regional workshops. The proposed project has been reduced, therefore, to CFAF 34 billion (US$110 M equivalent) with a foreign exchange cost of CFAF 19 billion (US$61 M equivalent). The roads scheduled for reha- bilitation would be included in the maintenance program at a later stage, ranked according to their respective economic priorities. The estimated cost of these items represents about CFAF 11 billion (US$36 M equivalent). It is expected that these works would be included in a subsequent program if and when additional local and/or foreign funding became available. B. Project Objectives 4.02 The objectives of the project are to: (a) preserve Government past investments in the road network and extend its useful life; (b) optimize the use of limited Government resources available for road maintenance; (c) main- tain vehicle operating costs at a reasonable and stable level; (d) improve access to productive agricultural and forestry areas; (e) develop an indige- nous capacity to plan, manage and supervise road maintenance and rehabilita- tion, gradually taking over in-line positions now held by foreigners; and (f) initiate changes in policies regarding the organization and methods of execution of road maintenance. To meet these objectives, the road maintenance project will be executed over a four-year period (mid 1989-93). It covers all of the Government's activities in the road sector investments as well as maintenance. The work program will be reviewed annually and adjusted to reflect the conditions and needs of the road network as well as available funding. C. Project Description 4.03 The project components are: (a) The carrying out by contract, including related supervision, of a three-year program of road maintenance, comprising: (i) routine maintenance (patching) and periodic maintenance on approximately 460 km of priority paved roads; (ii) improved maintenance of some 1,300 km of heavily-trafficked modern, unpaved roads; and - il - (iii) urgent repairs on about 29 steel bridges spread over the road network. (b) The carrying out of a program of routine maintenance and spot rehabilitation, by strengthened departmental force account units, on some 5,200 km of unpaved roads in the first year to be expanded to some 6,500 km of unpaved roads by the third year, including: (i) the operation of mechanized and labor-intensive maintenance units (about 27 and 37, respectively, during the first year, to be expanded to about 34 and 47 units by the third year); (ii) management and operational. improvement of the existing equip- ment pool, including the rehabilitation of existing equipment; (iii) purchase of additional road maintenance equipment; (iv) improvement of three regional workshops (Franceville, Mouila, and Oyem); (v) purchase of workshop equipment for the three regional workshops and for about 15 existing sub-divisional workshops; and (vi) the initia] replenishment of the stock of spare parts. (c) The training of road maintenance staff, including: (i) the carrying out of a training program for personnel of the mechanized maintenance units by means of a new Training Produc- tion Unit (TPU) to be established within ETTPF, including the purchase of road maintenance equipment, training equipment, and the operation of the TPU; (ii) the preparation and execution of seminars and refresher courses at the Training Center in Libreville to upgrade the skills of existing staff at all levels, from top managers to low level technicians, including the provision -f fellowships and the acquisition of training equipment; (d) Institutional strengthening of MTPECAT through the provision of technical assistance and the acquisition of computer equipment and vehicles to improve capabilities in: (i) the planning, execution, management, and supervision of road maintenance programs, including equipment management and operations; (ii) the coordination and implementation of road maintenance train- ing activities; (iii) the monitoring of project execution; and (iv) the setting up of a cost accounting system for all road mainte- nance activities. - 12 - (e) The carrying out of technical and economic studies for the develop- ment of the road sector, including the preparation of a road master plan, studies regarding traffic, road conditions, and materials and support to the Road Research Center through the acquisition of equipment, vehicles and supplies. Road Maintenance Program by Contract 4.04 Routine and periodic maintenance of the main modern unpaved and the paved roads under the program will be carried out by contractors. The list of roads and bridges scheduled under this program and cost estimates are given in Annex 4-1. The program will be reviewed annually on the basis of performance in previous years, needs and available funding. At loan negotiations, assur- ances were obtained from the Government that the annual program to be executed in the following year will be submitted to the Bank for approval by Novem- ber 30 of each year starting on November 30, 1989. 4.05 Three distinct categories of work are involved in the program by contract: (a) Improved maintenance over two years of about 1,300 km of main earth roads which were rehabilitated or regravelled during the last five years. These works consist of regravelling and compacting, brush clearing, cleaning of ditches and drainage systems, and maintenance of structures. At the end of the second year, these works would be continued by the Government's force account units which, by then, will have been strengthened. (b) The maintenance for a period of three years of about 460 km of paved roads. The works in the first year involve repair of the carri- ageway through patching, localized reconstruction and renewal of the surface course. Second year works consist of routine maintenance, and third year works will be limited to pavement maintenance. In some cases, particularly on severely cracked sections, a single surface treatment will also be provided. By the end of the second year, routine maintenance involving brush clearing, drainage, shoulder repairs, etc., would also be co' -inued by force account units. (c) The repair of about 29 steel bridges. The works include rehabilita- tion of the bridges, general cleaning, replacement of missbng and deteriorated parts and painting of the steel works. Fourteen bridges are listed separately in Annex 4-1. The remaining 15 bridges are located on roads lncluded in the maintenance program by contract. The supervision of the above works will be entrusted to one or more consulting firms with participation of Government personnel. Road Maintenance Program by Force Account 4.06 This program includes the initial strengthening of the capacity of MTPECAT's DGTP (para 3.08) to maintain some 5,200 km of earth roads. In a second stage, starting in the third year, this capacity would be increased to - 13 - cover all earth roads under the responsibility of MTPECAT (about 6,500 km). In view of the limited available financial resources and the insufficient force account maintenance capacity, an optimal level of maintenance is not possible in the short term. Therefore, during the project period, a minimum level of service consistent with demand will be provided throughout the road network in line with available maintenance capacity, especially of equipment. The needs for routine maintenance are expressed in terms of the number of specialized brigades needed to carry out a planned annual volume of mainte- nance work, in accordance with specific output standards (Annex 4-2). The number and type of maintenance units have been estimated on the basis of the existing sub-divisions, the length of the road network and the categories of roads for which they are responsible. Average standards for routine mainte- nance have been set as follows: Minimum Number of Passes per Year Dry Crading/ Partial Roads Category, Type Length Grading Compacting Regravelling National and Provincial (Modern, Laterized) 260 km 2 1.0 0.3 National and Provincial (Ordinary, Laterized) 1,420 km 1 0.5 0.3 Departmental (Laterized) 420 km 1 0.5 0.3 NR + PR + DR (Improved Feeder Roads) 1,950 km 1 NR + PR + DR (Unimproved Feeder Roads) 950 km 1 -- -- Labor-based Maintenance Operations: 1 unit per 80-120 km section of earth and paved roads (with the exception of unimproved feeder roads). The number of passes on important national and provincial roads might be modified to meet needs and traffic levels. 4.07 The project calls for the mobilization in the first year of 37 labor-based maintenance units, as well as 27 mechanized units. The latter includes, besides the departmental units, country-wide, five dry grading units, four grading/compacting units, and the four existing rehabilitation units. The numbers will be increased to 47 labor-based and 34 mechanical units by the third year to take over the maintenance of the most heavily trafficked laterite roads which will initially be maintained by contract under the project. In addition, ten divisional field offices ..1ll get a road regravelling unit to provide for emergency maintenance and partial regrav- elling intervention capacity. This will also provié for the rehabilitation of some feeder roads. The regravelling units will be used for rehabilitation, restoration and resurfacing of the laterized wearing course at the rate of 40-60 km/year/unit. This work includes the rehabilitation of certain sections of the main national roads. The force account work program will be reviewed annually on the basis of performance in previous years, needs and available funding. In the carrying out of the maintenance program, priority will be given to those roads which serve productive areas, particularly existing agricultural areas, and, in particular, those roads which were originally included in the rehabilitation program. At loan negotiations, the Government agreed that the proposed annual programs to be executed during the following year will be submitted to the Bank for approval by November 30 of each year starting November 30, 1989. 4.08 Road maintenance practices will be improved at the planning and organization levels. Equipment and personnel will be grouped in the mecha- nized units to optimize execution of road maintenance in accordance with a - 14 - detailed program based on output targets. The implementation of this program will be continually monitored at every level of responsibility. To reach the targets, the mechanized units with a regional focus (dry grading, compacting and regravelling) will be responsible to the regional sub-directorates whose supervisory personnel will be strengthened accordingly. A program for the purchase and supply of fuel and lubricants, spare parts, culverts, timber and materials will be set up at the onset of the maintenance program and imple- mented through long-term contracts, subject to annual reviews and revisions (para 4.28). 4.09 Labor-based maintenance performance will be increased under the program through the provision of new means of transport and an adequate operating budget. Labor-based maintenance units will focus mainly on: (a) regular monitoring and intervention on the entire network; (b) emergency repairs following rainfall or other factors; and (c) routine maintenance of bridges and culverts. 4.10 The project also provides for the strengthening of the Directorate of Equipment's (DOM) capacity to manage and maintain equipment through: (a) rehabilitation of some 70 pieces of equipment still usable (An- nex 4-3); (b) replenishment of the stock of spare parts and supplies for the start-up and the first year of operation of the program; and (c) scrapping of approximately 140 pieces of obsolete equipment too costly to repair. Also, about 200 pieces of equipment (trucks, graders and light vehicles), to be managed and maintained by DOM, will be purchased under the project (pa- ra 4.28) to complete the mechanized units for the program (Annex 4-4). To enhance DOM's equipment repair and rehabilitation capacity, repair opera;ions will be decentralized in four regional workshops. Three of these (France- ville, Mouila, and Oyem) will be established and equipped under the project, while the central workshop in Libreville will be further strengthened. 4.11 Other improvements to the DOM will invoive better planning of repairs, computerized spare parts management, regular supplv of parts on the basis of contracts (para 4.28), and the establishment of an accounting system designed to produce reliable data on equipment operating costs. The technical assistance effort at DOM will foeus in particular on improving management of equipment, repairs, and systematic eauipment inspections. Training Program 4.12 The maintenance program by force account will require approximately 400 qualified field personnel. A large part of the work force in the sub-divisional field offices needs retraining. New staff to be recruited to fill the gaps left by attrition and turnover will also need training. Approx- imately 120 supervisory and managerial staff will also receive instruction in the new methods and procedures to be established under the project. - 15 - 4.13 MTPECAT's existing training facilities will be improved to provide the required training. The estimated cost of the training program is con- tained in Annex 4-5; an outline of the training program is presented in Annex 4-6. It includes: (a) On-the-job retraining of personnel to staff the 34 mechanized maintenance units by means of a TPU to be established at the ETTPF. The school's existing accommodations, facilities and staff will be strengthened. New equipment will be purchased, including light vehicles and training equipment, and technical assistance will be provided to the TPU. Three-month retraining sessions will be provided in the following specialities: head foremen, crew foremen, equipment operators, drivers and maintenance mechanics. Only those staff deemed to be qualified at the completion of the session will be assigned to a mechanized unit. (b) Vocational training of newly hired staff, including approximately 80 persons to be trained over the period as light and heavy vehicle drivers, carpenters and masons. This four-month long training will be provided by ETTPF. (c) Seminars and refresher courses at the Training Center in Libreville for supervisorv and managerial personnel from DGTP's headquarters and field offices. (d) Study trips to neighboring countries and fellowships for superviso- ry, managerial and technical staff. Institutional Strengthening 4.14 The present organization of MTPECAT will be strengthened to carry out the project, and the DGTP will be reorganized. This would be achieved with the help of technical assistance, computerization of planning and manage- ment functions, and training of staff. The main functions of the technical assistance are: (a) to assist DGTP in improving the organizatilr and efficiency of road maintenance and equipment management, and defining and carrying-out the maintenance project; (b) to participate in the preparation of bidding documents, equipment procurement, and management of works; (c) to coordinate and implement the training program; and (d) to monitor the execution of the project. 4.15 To carry out the project, the staff in place at DGTP will be strengthened through the provision of additional technical assistance as well as through the reassignment of specialist staff provided through FAC. Thirty and one half staff-years of technical assistance would be provided under the project as follows: - 16 - Staff-years (a) Maintenance programs by force account and contract (8 experts) 16.0 (b) Equipment management and operations (3 experts) 5.5 (c) Training program (2 experts) 9.0 (d) Institutional strengthening and general management (1 expert + short-term missions) 4.0 Total of 14 specialists over 1.5 to 3 years 30.5 Technical assistance under the project would be provided by specialized con- sulting firms. The duties, assignments, duration and profile of the experts as outlined in Annex 4-7, and their tzrms of reference as given in Annex 4-8, were discussed and confirmed at negotiations. The level of technical assis- tance is substantial but temporary and reflects the important increase in the road maintenance effort during the prcject period as well as the changeover to a properly planned, programmed and monitored maintenance effort to assure efficient use of the limited resources available for road maintenance. In line with the Government's policy to reduce sharply its future dependence on foreign technical assistance, and in order to build up the local capacity, the technical assistance will involve substantial on-the-job training of existing and newly recruited local staff. Four of the technical assistants will be exclusively concerned with training. The technical assistance has been programmed for a gradual but sizeable reduction in line with the development of local expertise. The Zovernment will, as part of the action plan, assign qualified staff for training and as counterparts to the experts and, as keys to achieve sustainable institutional development, introduce work incentives and assure maximum staff stability. 4.16 The project also provides for the purchase of equipment to computer- ize the records of DERA and DOM (Annex 4-9), and for the procurement of light vehicles for DGTP's headquiarters. These lists were confirmed at loan negoti- ations. Studies/Road Research Center 4.17 This component includes, on the one hand, technical and economic studies for the development of the road sector, name , an origin-destination traffic study, the preparation of a road master plan, and various other economic and technical studies to improve sector planning. These studies will be entrusted to consulting firms. In addition, on the other hand, the project will strergthen the existing Road Research Center of DGEP and provide for vehicles, supplies and operating funds. Traffic counting equipment, axle load weigh scales, road roughness measurirg devices, computer equipment and vehi- cles would be provided for the Road Research Center to continue its work program on road management and the establishment of a data bank. The indica- tive lists of studies and supplies, with cost estimates, are given in An- nex 4-10 and were confirmed at loan negotiations. D. Project Costs and Financing 4.18 The total cost of the project, including taxes and duties, is estimated at US$110 M equivalent, with a foreign exchange cost of US$61 M or 56% of the total cost. The estimated cost of each component, provided in - 17 - detail in Annex 4-11 and in supporting documents in the Project File, is summarized below. ----- USS million ---------------- Item Lozal Taxes Foreign Total 1. Road Maintenance by Contract 7.5 4.5 18.7 30.7 2. Road Maintenance by Force Account 16.1 10.5 25.0 51.6 3. Training 0.8 0.8 2.2 3.8 4. Institutional Strengthening 0.4 1.0 4.4 5.8 5. Studies 0.2 0.3 1.9 2.4 Subtotal 25.0 17.1 52.2 94.3 Physical Contingencies 1.2 0.9 2.6 4.7 Price Contingencies 2.6 2.1 6.3 11.0 Total 28.8 20.1 61.1 110.0 °%O 26 18 56 100 The estimated cost by component and financing is given in Annex 4-12. Cost estimates were confirmed at loan negotiations. 4.19 The cost estimates for maintenance works by contract are based on existing studies for most of the roads, and on the prices of recent contracts for the same tvpe of work. The costs of materials, equipment repairs, spare parts and new equipment were estimated on the basis of suppliers' prices as of October 1988. The cost estimates for the purchase of new equipment include an allowance of 12.5% for spare parts. The operating cost of the mechanized units is calculated on the basis of 150 working days per year and the actual consumption of fuel and materials observed in other countries of the region. Cost estimates do not include depreciation of equipment. The cost of consult- ing services for technical assistance has been estimated on the basis of actual costs of such services in Gabon and include salary costs, fees, includ- ing company overhead costs, international travel, local subsistence and transport, related supplies and report preparation end taxes (18%). The costs reflect the senior level of expertise required, including substantial African experience. Physical contingencies representing 5% of the total cost have been added to allow for variations in the volume of work executed by contract (15%) and for minor changes in the list of materials and equipment. Price contingencies of 12% of the total cost have been included in line wit.l recent trends in Gabon and expected changes in international prices. 4.20 The Government would contribute to the financing of the project through its recurrent budget (US$26.2 M) and its investment budget (US$22.7 M). The Bank and AfDB would provide US$30.0 M and 31.1 M, respec- tively. FAC would contribute to the project by providing technical assistance through reassignment of positions already provided to the Government of Gabon. The latter, estimated at about US$1.0 M equivalent, and shared equally by FAC and the Government, has not been included in the project cost estimate since it does not constitute additional costs related to the project. The proposed financing is summarized in the table which follows. - 18 - Summay£ Financing Plan (U$million) Government Item RB/a IB /b IBRD AfDB Total 1. Road maintenance by contract -- 15.5 -- 24.2 39.7 2. Road maintenance by force account 24.3 5.5 21.7 6.9 58.4 3. Training 1.9 -- 2.1 -- 4.0 4. Institutional strengthening -- 1.2 4.2 -- 5.4 5. Studies -- 0.5 2.0 -- 2.5 Total (including contingencies) 26.2 22.7 30.0 31.1 110.0 of which taxes -- (20.1) (20.1) /a Recurrent Budget provides for personnel costs and operating expenses. /b Investment Budget. 4.21 The proposed Bank loan would finance 27% of total project cost, estimated at US$110 M equivalent, of which US$20.1 M are taxes. The Bank loan would primarily finance the incremental expenditures for road maintenance by force account, such as equipment rehabilitation and purchases of additional equipment and vehicles, spare parts, improvement to equipment workshops, fuel and materials, technical assistance, computer equipment, studies, fellowships, etc. The AfDB loan would be mainly for road maintenance by contract, includ- ing its supervision and equipment needed, particularly by the force account units to provide continued maintenance of these roads. The Government would contribute to the operating expenditures for the road maintenance by force account through the financing of personnel costs and other local costs and to the maintenance by contract by covering local costs including all taxes. 4.22 The financing plan calls for IBRD financing of foreign costs of individual contracts although the overall contribution of IBRD represents only about 50% of foreign costs of the total project. The balance of foreign exchange costs is expected to be met by AfDB. The Bank and AfDB financing will be for separate items which will be executed independently of each other. To help the Government during the initial phase of the adjustment period and in light of the priority to be given to road maintenance, the Bank's financing would be provided on a declining basis for the finaincing of consumables for road maintenance. Details are provided in the disbursement table (para 4.30). 4.23 The financing plan was confirmed with the Government during loan negotiations. E. Implementation 4.24 MTPECAT will be responsible for implementing the project. Actual implementation of the project will be entrusted to DGTP except for: (a) the road studies to be carried out by the DGEP (para 4.17); and (b) the training programs (paras 4.12 and 4.13) to be carried out by the Directorate of Person- nel and the training schools in cellaboration with DGTP. The day-to-day monitoring of the project will be provided by DERA, DOM and DIT. MTPECAT has already appointed a project coordinator. It was agreed at negotiations that a qualified and experienced project coordinator will be kept on post. - 19 - 4.25 The project was designed to be implemented over a three-year period, 1989-92, as shown in Annex 4-13. However, as some slippage is possi- ble, a four-year implementation period, mid-1989-93, has been assumed. It will start in 1989 with the strengthening of capabilities to execute mainte- nance work by force account. Training of the mechanized unit personnel is expected to start early 1989, financed from the Government's own resources. The rehabilitation of equipment and the delivery of an initial stock of spare parts would be completed by mid 1989, in time for the 1989 dry season. Part of the equipment rehabilitation, purchase of vehicles, start-up of consultant services, and delivery of the initial stock of spare parts would be done before loan effectiveness. The expenditures related to the above incurred subsequent to project appraisal (July 1988), but before loan effectiveness, are eligible for retroactive financing. The total cost of these expenditures is estimated at US$2.7 M, of which US$2.0 M would be eligible for retroactive financing. The project is expected to be completed by June 30, 1993. 4.26 DGTP will be reorganized under the project tO enable it tO carry out routine and periodic road maintenance by force account more efficientl-. The reorganization will, in particular, apply to the programming, budgetiug and road monitoring activities. The labor-based road maintenance operations, the maintenance of bridges and culverts, partial regravelling and improvement of feeder roads will be carried out by the sub-divisions on the basis of annual programs and operating budgets approved by DGTP at the start of the annual maintenance operation. Regrading and regravelling operations will be carried out by the regiona] sub-directorates under an operating budget and a work program covering the entire road network in a region. Sub-divisions will provide the necessary technical and logistical support to the maintenance crews operating on the respective network assigned to them. Equipment pur- chased under the project and the rehabilitated existing equipment will be permanently assigned to the maintenance units. A cost accounting system will be established and will cover all maintenance activities. Accounts will be prepared annually and will show primarily the use of funds, the outputs achieved and costs of maintenance operations. The force account maintenance program and the budget established and approved at the beginning of each maintenance year will be monitored to ensure regular and systematic mainte- nance of the national road network. A 5% margin, which was included in the force account maintenance program, would be used, with the prior authorization of MTPECAT, to finance urgent works which are not part of the regular agree- ment with the Bank. In addition, an amount of CFAF 300 million will be reserved to provide for MTPECAT's prompt intervention to repair by contract serious damages to some roads and bridges that could close them to traffic. 4.27 The volume of maintenance to be executed by contract will require detailed programming and a thorough and systematic monitoring of procurement, management and execution of work. The Directorate of Transport Infrastructure (DIT) will be strengthened by the provision of two experts (para 4.14). Consulting firms will provide site supervision of the works. DGTP's available technical personnel would be assigned to supervision teams to be trained on the job. During loan negotiations, the Government agreed that it will imple- ment the road maintenance project in accordance with the action plan in Annex 4-14. - 20 - F. Procurement 4.28 The Bank loan would participate in the f inancing of (a) workshop rehabilitation to be awarded by cortract following LCB; (b) equipment purchase by ICB, rehabllitation by contract following LCB and by force account by DOM through the use of the initial spare part replenishment; (c) the replenishment of spare parts stock, tools, computer equipment and vehicles to be procured either through ICB for suitable lots, through LCB for spares that can be supplied locally from different suppliers or through negotiated contracts, acceptable to the Bank, for reasons of compatibility with existing equipment and for installations; (d) consumables for road maintenance operations such as fuel, lubricants, spare parts, tires, batteries, materials (cement, bitumen, crushed stones, etc.), metal culverts, etc., to be procured either through ICB for suitable bulk purchases or LCB for routine materials such as fuel, lubri- cants, bitumen, crushed stones, spares, tires, batteries, etc., when locally available and needed frequently throughout the country and the maintenance operations period as well as on the basis of negotiated contracts for spares or local tendering for routine supplies such as fuel, lubricants, tires and batteries needed sometimes on an urgent basis; (e) consultant's services for technical assistance, studies, construction supervision and training awarded on the basis of the Bank's procedures for hiring consultants; (f) supplies for operational support services for the TPU, such as fuel, lubricants, spares, materials, etc., which would not be purchased together with the consumables for road maintenance, as well as operating expenses and supplies for the management of the project and the operations of the Road Research Center; and (g) fellowships and study trips abroad. These arrangements were confirmed during loan negotiations. 4.29 The AfDB would finance maintenance works by contract including the supervision thereof by consultants as well the additional equipment required, particularly by force account units to provide continued maintenance of these roads. Procurement of these works, services and equipment would be in accor- dance with AfDB procurement guidelines, and financing would be jointly by the Government and AfDB. - 21 - 4.30 Amounts and procurement methods are estimated as follows: Amounts and Methode of Procurement /a (US$ million equivalent) Item ICB LCB Other N/A Total 1. Civil works by contract (a) Maintenance 38.2 -- -- - 38.2 (b) Workshop rehabilitation -- 1.0 -- -- 1.0 (-) (0.6) (- (-) (0.6) 2. Equipment rehabilitation, purchase, 18.8 0.5 2.0 -- 21.3 replenishment of the initial spare parts stock, (3.4) (0.3) (1.3) (--) (5.0) tools, computer equipment, and vehicles 3. Consumables for road maintenance, including fuel, 11.6 5.2 6.0 14.6 /b 37.4 lubricants, spare parts, tires, batteries, etc. (8.0) (4.5) (3.9) (--) (16.4) 4. Consultant's services for construction supervision, -- -- 9.5 -- 9.5 technical assistance and studies (--) (--) (6.7) (--) (6.7) 5. Supplies for operational support services for TPU -- 2.2 -- 2.2 and Road Research Center (--) (--) (1.0) (-) (1.0) 6. Fellowships -- -- 0.4 -- 0.4 (--) (--) (0.3) (--) (0.3) Total 68.6 6.7 20.1 14.6 110.0 (11.4) (5.4) (13.2) (--) (30.0) /a Including contingencies. Amounts in ( ) indicate proposed IBRD participation. /b Operating cos,s not subject to procurement. 4.31 Workshop rehabilitation would be done in three different lots which could be combined. Because of the small size of individual contracts and the regional distribution, they would be awarded under local competitive proce- dures which have been reviewed and are acceptable to the Bank. Equipment purchases, the replenishment of the initial spare parts stock, bulk purchases of tools, as vell as bulk purchases of spare parts, lubricants, tires, batter- ies and alike, would be grouped as much as possible into lots of over US$1 M equivalent for ICB. Tools, computer equipment, vehicles, fuel, lubricants, and other spares which cannot be grouped in lots of US$1,000,000 would be procured either following bidding advertised locally for up to a total amount of US$5 M or through international shopping with quotations from at least three suppliers for individual contracts up to US$200,000 and for a total amount of US$2 M. Local shopping would apply to the same categories for US$100,000 per contracts for a total amount not to exceed US$2.2 M. Spare parts for a total amount of US$3,0 M can also, for reasons of compatibility with existing equipment and installations, be procured under negotiated - 22 - contracts awarded to the original suppliers on terms and conditions to be approved by the Bank. Supplies for operational support services for T'PU and the Road Research Center for a total amount not to exceed US$2.0 M, and individual contracts not to exceed US$100,000 each, would be awarded on the basis of quotations from at least three suppliers. 4.32 Consultants' services for a total amount of US$11.i M of which the Bank would finance US$7.1 M would be procurod in accordance with Bank guide- lines on hiring of consultants insofar as .echnical assistance is concerned and AfDB guidelines for construction supervision. Fellowships would be contracted on the basis of negotiated contracts. 4.33 Since there are no local manufacturers of spare parts, tires, etc., there would be no preference for local manufacturers. Bank-financed contracts in excess of US$3.0 M would be subject to prior review and smaller contracts would be subject to selective post-award review. G. Disbursements 4.34 Disbursements from the loan will be made based on contracts and statements of expenditure eligible for Bank financing as follows: Allocation and Disbursement Categories (US$ million equivalent) Amount % of Expenditures Category Allocated to be financed 1. Civil works for improvement of Regional Workshops 0.6 60% 2. Equipment, tools, vehicles, initial stock of spare parts, computers. (a) rehabilitation of equipment 1.0 75% (b) purchase 2.6 65% 3. Consumables (a) for road maintenance 14.5 75% through 12/31/90 (b) for the TPU 0.7 55% thereafter 4. Consultant's services for: (a) technical assistance 4.2 80% (b) studies, seminars 2.3 80% 5. Supplies for operational support services 0.9 75% through 12/31/90 55% thereafter 6. Fellowships 0.2 100% 7. Unallocated 3.0 Total 30.0 - 23 - 4.35 The loan would be disbursed over a six-year period, FY89-94, as follows: Typ-e FY89 FY90 FY91 FY92 FY93 FY94 ------------------ (UFTmillion…------------------ Annual 2.0 7.0 7.5 7.0 5.0 1.5 Cumulative 2.0 9.0 16.5 23.5 28.5 30.0 This is slightly faster than the regional disbursement profile of 6.5 years and reflects the fact that most tender documents have already been prepared and that some tendering will thus be initiated before loarn effectiveness. 4.36 Disbursements for civil works (Category 1), purchase of equipment, tools, vehicles, initial stock of spare parts, computers (Category 2(b)), consultants' services (Category 4) and fellowships (Category 6) would be equivalent to estimated foreign exchange costs of expenditures. Disbursements for rehabilitation of equipment (Category 2(a)), to be executed early during project implementation, would involve some local cost financing to help in project start-up. Similarly, consumables for road maintenance (Category 3(a)) and for the TPU (Category 3(b)) as well as supplies for operatîonal support services, namely for training and the Road Research Center (Category 5), would be financed on a declining basis over the project period. The average dis- bursement rate for these categories would be equivalent to the foreign ex- change cost. The loan would be fully disbursed by December 31, 1993. The estimated schedule of disbursements is shown in Annex 4-15. 4.37 Disbursements for consumables for road maintenance (Category 3) and supplies for operational support services (Category 5) would be based on certified statements of expenditure. Contracting of up to US$50,000 each would qualify for SOE. 4.38 Rehabilitation of equipment and purchase of vehicles and the initial stock of spare parts (Category 2) would be eligible for retroactive financing for a total amount not to exceed US$2.0 M. Disbursement categories and rates were confirmed at loan negotiations. 4.39 To facilitate project execution, a special account to be operated as a revolving fund for project expenditures will be opened at the Banque des Etats de l'Afrique Centrale (BEAC) in Libreville. The terms and conditions for operating this account were agreed at negotiations. This account will be replenished from the proceeds of the Bank Loan under the statement of expenses procedure for minimum amount of US$0.5 M, and will cover the Bank's share of expenditures for the project. An initial deposit of US$2.0 M will be dis- bursed from the loan after the loan becomes effective, upon receipt of a withdrawal request. H. Accounting, Auditing and Reporting 4.40 Consolidated project accounts would be maintained by MTPECAT. The consolidated accounts would be audited annually by independent auditors acceptable to the Bank, according to terms of reference agreed with the Bank. The audit report would convey the auditor's opinion on the adequacy of the procedures used for the preparation and verification of statements of expendi- tures and their accuracy, eligibility for financing in accordance with legal - 24 - agreements, and the standard for record keeping and internal controls. The special account would be subject to annual audit. The Government would forward the audit reports to the Bank within six months after the close of each calendar year. Quarterly reports on project progress would be prepared by MTPECAT and submitted to the Bank. The MTPECAT would also prepare a project completion report within six months of the Closing Date. The auditing and reporting arrangements were confirmed during negotiations. V. ECONOMIC EVALUATION A. Methodology 5.01 The Road Maintenance Project aims at stopping and reversing the deterioration of existing road infrastructure. The objective is to restore and maintain a reasonable service level of the network in the short run, while laying the foundations for improved road maintenance following the adjustment period. 5.02 The economic evaluation prepared by the Government comprised an evaluation of each road proposed for maintenance by contract under the proj- ect. It also provided an overall justification of the force account mainte- nance program. Separate evaluations were not made of the technical assistance and training programs although the relevant costs were included in the evalua- tion of the force account maintenance program. 5.03 As part of project preparation, the Public Works Laboratory and the Road Research Center inspected, in early 1988, some 3,000 km of main roads. Traffic counts were carried out in 1987/88 on 80 road sections covering some 5,300 km. 5.04 Periodic maintenance of 29 bridges will average about US$50,000 per bridge. MTPECAT carried out a detailed technical assessment of each bridge to determine the need for these works, but no economic evaluation was made. In most cases, there would be no alternative route if a bridge collapsed and therefore, its repair is fully economically justified. 5.05 The main benefit taken into account in the economic evaluation concerns savings in vehicle operating costs (VOC) from normal traffic in situations with and without the project; time savings were not taken into account. HDM III was used by the Government to estimate VOCs for different road conditions. Benefits from generated traffic were only taken into account in the case of earth roads in poor condition. Value-added from increased agricultural output was only included in the case of three earth roads to be rehabilitated, but these works were subsequently deferred. The proposed project is, however, essential for the achievement and success of the actions currently undertaken in the agricultural sector. The immediate beneficiaries of the project will be road users: the owners of vehicles, passengers, traders, farmers and consumers. 5.06 Traffic counts for the period 1984-87 show a general downward tendency in traffic reflecting the economic and financial crisis since 1986. No normal traffic growth was taken into account in the economic evaluation. - 25 - In the instances where generated traffic was taken into account, these were estimated at 25%. B. Economic Returns 5.07 The overall rate of return of the project is estimated at about 55%. Contract maintenance of earth roads yields a rate of return of about 100% ranging from a low of 14% for light trafficked roads to over 200% in the case of the most heavily trafficked ones (300 vpd). Major contract maintenance works of paved roads yields an ERR of about 26%, ranging from 12% to over 60%. Separate economic analysis was not carried out for paved sections receiving only minor works. The overall rate of return for contract works, including bridge repairs for which no separate economlc evaluation was carried out was about 90%. Annex 5-1 provides more detailed information on the economic evaluation of contract works. 5.08 The rate of return on the force account maintenance works is esti- mated at 43%, taking into account the costs of equipment purchases, operating costs, technical assistance and training, on the one hand, and estimated voc savings, on the other. A sensitivity analysis with 20% lower benefits shows an ERR of 24%. Annex 5-2 indicates the basic assumptions used. Such high rates of return are not uncommon for maintenance projects and reflect the fact that the initial investment in road construction is treated as a sunk cost. 5.09 During loan negotiations, the Government agreed that it would include in the annual investment program for roads, only works which are technically and economically justified with projects in excess of CFAF 200 million having an estimated rate of return of at least 10%. However, in order to permit the Government to intervene quickly to meet urgent repairs, the project includes a provision of CFAF 300 million for contract works for which prior agreement with the Bank is not required (para 4.26). The force account maintenance program also includes a provision of 5% for non-programmed works of special local interest (para 4.26). C. Risks 5.10 The main risks are: first, the possibility -f not achieving all the institutional objectives, including performance targets for force accourt works; and second, that there will be an insufficient level of funding for road maintenance or delays in the availability of such funds. A further risk is local pressure to do non-program works. The annual review of sector expenditures, the substantial initial input of technical assistance, and the high priority given by the Government to the project, together with the overall dialogue with the Government in connection with the structural adjust- ment process, should help reduce these risks. D. Environmental Implications 5.11 The project has no significant negative environmental implications as it involves basically periodic and routine maintenance, as well as institu- tion building. The project is, in fact, likely to have a positive environmen- tal impact through the removal of stagnating water and wild bush growth along the roads. The maintenance works, including the bridge repairs, should contribute to public health and safety. - 26 - VI. AGREEMENTS REACHED AND RECOMMENDATIONS 6.01 During loan negotiations, agreement was reached with the Government that it will: (a) study the question of road user taxes for heavy vehicles, submit to the Bank by January 1, 1990 a program aimed at ensuring that heavy vehicles contribute appropriately to the cost of road maintenance, and, thereafter, implement the program in accordance with an agreed timetable (para 2.07); (b) consult with the Bank annually before November 30 of each year regarding its annual transport sector expenditure program for the subsequent year (para 2.11); (c) submit to the Bank for review and comment by November 30 of each year starting November 30, 1989, the annual programs for road maintenance by force account (para 4.07); (d) a project coordinator will be kept on post (para 4.24); (e) implement the road maintenance program in accordance with the agreed action plan (para 4.27); and (f) include in the annual road program only works which are technically and economically justified with an ERR of at least 10% (para 5.09). 6.02 The proposed project is suitable for a loan of US$30.0 M equivalent on standard terms to the Gabonese Republic. AFIN March 16, 1989 RÉPUBLIQUE GABONAISE (GABONESE REPUBLIC) PROGRAMME TRIENNAL D'ENTRETIEN ROUTIER (ROAD MAINTENANCE PROJECT> ORGANIGRAMME |U TE DU TRAVAUX PUUM% DE LIOUPNT DE A CM. Et DE L*INAGET Du TUUTOfE 1 ,- _- . Mm . v PArXJEt. UEEMMT __. _ . } l ; WC( I P^RT I x-i43 _ _MULMM COPA_ [M i < F£MCUFoe~o OEŒWAÆ $ICBO_ _ dO RJl CETR FXM% W T PP|__ [i-111 ~~~~~~~~~e~m ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~EtPMON EX |» L 1 1t L I 1 1l 1 1~~~~~~~~~~r t | ES | ( i i ~~~~~~F£ffEMECFX r commm LT& |~~~~~~~~~~nX APPUIP.4E E BAMM13 1 N1AB | |SU-E |vnle AXÆDa| EA |UE CaNmoemm from~~~~~~~~~~~~~~~ewo AEFMCF£»£S ~ ~ TCU | | «IUIUT. IFP.VCEVUE koeu tTI9 tTj aià- ~ Oum~ mrom KO~~~~~ULAàMOUT. - 28 - ANNEXE 3 RÉPUBLIQUE GABONAISE GABONESE REPUBUC PROGRAMME TRIENNAL D'ENTRETIEN ROUTIER ROAD MAINTENANCE PROJECT RËSEAU ROUTIER PAR CLASSE DE TRAFIC ROAD NETWORK AND TRAFFIC VOLUMES Véhiculeslour,1987 (Vehicles/day.1 987) Désignation _ ___ 0-50 50-100 100.200 200-400 400-600 600-1000 1000 * Total ROUTES REVETUES (km) TOTAL ER 3829 5,402 265 9.496 - 30 - RÉPUBLIQUE GABONAISE ANNEXE 4-2 GABONESE REPUBLIC Page 1 de 3 PROGRAMME TRIENNAL D'ENTRETIEN ROUTIER ROAD MAINTENANCE PROJECT TRAVAUX EN RÉGIE WORKS BY FORCE ACCOUNT Composition en personnel et matériel, nombre et rendement des équipes d'entretien Composition end expected output ot maintenance units reprofilage remise rechargement aménagement ensoleillement entretien rapide en forme général pistes et mécanisé manuel Catégorie (dry (grading (rehabili- rechargement (mechanized (manuel (Category) grading) compacting) tation) partiel sunlight) maintenance) (partial regraveiilng) MATERIEL Niveleuse (motorgrader) 2 2 2 1 Compacteur (compactor) 1 1 1 Chargeur (loader) 2 1 Bulldozer (bulldozer) 2 1 2 Citerne à eau (water truck) 1 1 Camion-benne (dump truck) 8 4 Citerne carburant (fuel truck) 0.3 0.3 1 Camion graissage (service truck) 0.3 0.3 1 Camion 5 t. (truck) 1 1 1 Camionnette (pick-up) 1 1 1 1 1 Tronçonneuse (chain saw) 2 2 2 PERSONNEL Chef de chantier (foreman) 1 1 1 1 Chef d'équipe (gang leader) 2 1 1 Conduct. engins (operator) 2 3 7 4 2 Chauffeur (driver) 2 3 13 6 2 1 Mécan. entret. (chiet mechanic) 1 1 2 1 Aide-mécanicien (mechanic) 1 1 1 1 Manoeuvre Éq. méc. (workmen) 2 3 10 3 Manoeuvre (laborer) 8 Charpentier (carpenter) 1 Maçon (brick layer) 1 An (year) 1&2 5 4 4 10 4 37 Nombre d'équipes (Number of units) An (year) 3 8 (+3) 8 (+4) 4 (+0) 10 (+0) 4 (+0) 47 (+10) Rendement moyen 1.050 km/an 300 km/an 45 km/an 200 km/an 200 km/an 100 km/an (Average oulput) (km/year) (km/year) (km/year) (km/year) (km/year) (km/year) RÉPUiBLQE G4A103UAE OAiOESE REPU9UC PROGRAME TRINAL DENTRETIEN ROtTiER ROAD MAINTENANCE PRO.ECT TRAVAUX EN RÉGiE WORK6 DY FORCE ACCOUNT iot wuwi de tonllnwmn du éqw% (Muile, de F CFA,198) (Anhifl Cpgt,tfg coSi of uflhe) (Tlesnde og CFA F. 10i) Equ4m de oÇreUqo rapdb Equpe de r en kIo. Equip de m_nf~t gn9 Eque dcmnt de puf et recfargsn»nt tel C00podc (dry Oa9n imIO (l8adeg r0oactIng unu) lfaiitmiotan mi8t) (P,ei waveano) (Calegory) Locas Tae osbu Ta-i Local Tom Dvs Taa Loœi Tus Divw Talai Local Taxies O,r Tol (Forelon) (Forelani IFotelan) Pcronnc1 14,140 14.140 18.878 18,878 54,060 54.060 25.242 25.242 Carburant et lubrifiant 1,759 1.759 5.280 8.798 2,025 2.625 7.878 13,128 13.693 13.693 41.080 88.468 6.944 6.944 20.832 34.720 PeuredeaIgO 301 3.38i 5.978 9.645 445 4.679 9.422 14.548 1,948 21.743 41.241 64.932 934 9.817 10.770 30,521 Ràparalon malul" 2.514 2,514 3.709 3.709 16.233 16.233 7.781 7,781 (main oeuvr) mlatéiaux 355 622 2,575 3,552 503 835 3.651 4.989 2.137 3.739 15.490 21.368 988 1.639 7.168 9.795 ToallpoaéqJlp 19.069 5.747 14.241 39.057 25.980 9,139 20,949 55,048 88,071 39,175 97,811 225.057 41.889 18.400 47.770 109.059 Net dàq*o 5 4 4 1 0 Tcanlgo 95,345 28.735 71.205 195.285 103,840 32.556 63.796 220.192 352,284 158.700 391.244 900,228 418.890 184,000 477.700 1.080.590 Equ4i cBoliemtnuO mécani Eqq9 mensten unnuel es dépandae Tous 6quo. canlentis 1an Toutes équOs rononaa 3 am Calgorle (Mechanized aunglga und) (Maul uamnance unit) i ii yub) (Thoear w icostal uunit*) (cmtegoqV) Local TUa Owis Total Local TOM DeIa Total Local Toe Oudla Total Local Tax D_s Total (Forelqnl IForeiqnl (ForelIn) (Foreioni arrondi Peronnel 8.051 8.051 11,461 11,481 1.070,333 1.070.333 2.140.666 2.141.000 Carburant et lubrIlbnt 1.817 1.817 5.453 9.087 396 396 1.188 1.980 165,427 185.427 496.8312 827.168 330.854 330.854 992.624 1,654.000 Piêoeaderodm 521 5.817 11,033 17,371 49 512 1.031 1.592 24.314 262.900 514.561 801.775 48.628 525.800 1.029.122 1,604.000 Réparaion matriel 4,343 4,343 406 406 202.542 202.542 405.084 405.000 (main drouvre) Maérlaux 389 679 2.817 3.885 310 513 2.243 3.086 35.241 59.493 255.378 350.112 70,482 118.988 510.758 700.000 Tdarparéuipe 15,121 8.313 19.303 42.737 12,622 1.421 4.462 18,505 1.497.857 487.820 1.268,251 3.251.928 2,995.714 975.640 2.532,502 6.504.000 Notbro otéWoo 4 37 Totai général 80,484 33.252 77.212 170,948 467.014 52,577 165,094 684.685 00 2 > CD . t.X RÉPUBUQUE GAB3ONAISE GABONESE REPUBLIC PROGRAMME TRIENNAL D'ENTRETIEN ROUTIER ROAD MAINTENANCE PROJECT TRAVAUX EN RÉGIE WORKS BY FORCE ACCOUNT Coùt global de fonctionnement des équipes (Milliers de F CFA,1988) (Annual operatIng costs of units) (Thousands of CFA F, 1988) Récapitulation Toutes équipes confondues année 3 Toutes équipes confondues années: 1 à 3 (three year costs-all units) (three year costs-ail units) Catégorie Local (HT) Taxes Devises Total Local (HT) Taxes Devises Total Personnel 1,300,723 1,300,723 3,441,389 3,441,389 Carburant et lubrifiant 184,998 184,998 554,957 924,953 515,852 515,852 1,547,581 2,579,285 Piècesderechange 27,469 296,686 581,134 905,291 76,097 822,488 1,610,256 2,508,841 Réparation matériel 228,756 228,756 633,840 633,840 (main d'oeuvre) Matériaux 41,337 69,797 299,849 410,983 111,819 188,783 810,605 1,111,207 Total général 1,783,283 551,483 1,435,940 3,770,706 4,778,997 1,527,123 3,968,442 10,274,562 tDI RÉPUBLIQUE GABONAJS GABONESE REPUBLIC PROGRAMME TRIENNAL DENTRETIEN ROUTIER ROAD MAINTENANCE PROJECT EstimatIon du coùt de la remise en état du mtmérlel existant Cost estimate for rehablltation of equlpment A. Remise en éat en régle (Rohabllitation by force account) Nomire (Nufber) Catit de répamion estlm F CFA MUC) Catgcde Marque (_Cost ind taxes CFA (Category) (Mark) Type par type par catégorie par type par marque par catégorIe Komatsu GD 50 R 2 6,500,000 6,500,000 Nlwleous 3 7.100,000 Molorgrader Caterpillar 120 B 1 600,000 600,000 930 2 6,000,000 Chargeurs Caterpîllar 3 7.000,000 7.000,000 Whe Loader 950 1 1,000,000 CO_PUMr Albaret PF 3 3 3 1,000,000 1,000,000 1,000.000 Pneumalic compactor w Komalsu D 65 E 3 14,500.000 14,500,000 Bull-dozers 4 _ 24,500,000 Caterpillar D 8I 10,000.000 10.000,000 Isuzu TXD 45 3 5,500,000 5,500,000 Camons-benne JE 13 3 9 9,500,000 22,500,000 Dump-truck Renault 17.000,000 GLR 190 3 7,500,000 Porte-chars Mercedes 2,624 1 1 5,000,000 5,000,000 5.000,000 Trailer _ __ _ TOTAL 67,100,000 t>4 PD 1 RIPUBLIQUE GABONiSE£ GABONESE REPUBLIC PROORAMME TRENNAL D'ENTRETIEN ROUTIER ROAD MAINTENANCE PROJECT EstImatbn du coOt d la rmnise an éat du matl estant Coosatmete for rfhabllitatbn of equipment B- Remis. en état à lentreprise ,e e pa rtyp par raSgob par type pW marque pEç rzaléog GO 310 4 36,000,000 Nhieuses KcmaÈuS &t4orgrader 58.000.000 58,000,000 GO 500 4 22.000.000 930 1 4.000,000 Chagae Caterpillr 950 2 5 9,000,000 19,500.000 19.500,000 966 2 6,500,000 C w_pacteurs Alret PF 3 6 6 4.900,000 4,900.000 4.900,000 Pneumna c_a..ctr Konmau D 65 E 2 26,000,000 26,000,000 Bulldozera 3 36.000.000 Caterpillar 0 8 1 10.000,000 10,000.000 TS 45 2 9,000,000 buzu TDJ 50 5 34.000,000 58,000,000 Cadmbns-benne D3Z 22 15,000,000 Dump-truck , . .____ JE 13 6 36,000,000 149,500,000 fD X Renau _ 91,000,000 NM m GLR 190 6 55,000,000 X 1 1~~~~~~~ W Porte-chars Mdoe" 2624 2 1 15,000,000 15,000.000 15,000,000 Traller ___ 70TAL. 282,900,000 - 35 - RÉPUUOlIU GABONAISE ANNEXE 4-4 GABONESE REPUBUC page 1 de 4 PROCRADE TRIENNAL D'ENTRETIEN ROUTIER ROAD RMNTENANCE PROIECT Estimation dea coOts d'achat des matériels et équlpements (Milllers de f CFA, prlx 1988) Cost *stfmat# for roide equlpment (Thouand CFA F price 1988) Cool unitalre CoOl total Matériel Nombre (Unit cosl) (Total cast (Equlpment) (number) local taxes devises total local taxes devies total ___________________________ I Coùt de base total 29,144 16.095 13.049 5.326 94.317 52.087 42.230 17,236 (Base colt) Augmentation des quantités (+5%) 1.457 805 652 266 4,715 2,605 2.110 861 (Physical contingencies) Augmentation des prix (+10%) 3.399 1,966 1.434 607 11.001 6.363 4.642 1,966 (Price contingencies) __ CoQ? total du programme 34,000 18.866 15.134 6,199 110.003 61,055 48.977 20.063 _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ ___ ___ ___ ____ ___ ___ ___ ___ _ _ ___ ____ ___ ___ ___ ___ ___ ___ ____ ___ ___ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ __ ___ ___ ___ ___ ___ ___ RÉPUBUQUE GABONAISE GABONESE REPUBLIC PROGRAMME TRIENNAL D'ENTRETIEN ROUTIER ROAD MAINTENANCE PROJECT Calbndrhr d'Exécution Prolct Impiebmntation Schedule Elm&nnt du Projt Activité R,xpomcbulit* Améê (vYrws 1 988 1989 1990 1991 1992 Approbaton du coanr Entre0 en vuur du prêt Trvaux ,rentrte Prparaton du documnt A État à r.nhrpils, Exwnun dm daoawTa _R _Ikneanem Appe d O offre Éta= by contrecl O r drn plis État Attibution d.s ffurrms État l BAD Trvux Entreprih_ Ali*qp m Prépadiegon des dacumu Ac État tlirs omx Exnrun du dcuaun BSm (Construction 0i l.o Appe '~u Appd d'offtes Étt_ (EquG mr purddue) Ouverture des plie État Attribution des marchée ÉtaUBIRDBAD Livraison du matériel Fournisseur Rena. en dmt Prépemion des documn As État du mlrie à Enmen des documn État rentrepris Attribution ds onvntions État (Equlpwmnt rehabilittior Exécution Entreprise b, contraci) Trvaux drentretien Fornation du persomel État routier on régie Exécution des tavaux État (aia c Warks by Jbrce accunt> Assktisnce Préparation du document AO État twcmq» Liste restreintu État 1 BRD (Tecrnic assistance) Appel dcoffres État Ouverture ds plis État Attribution des rmarché État I amRD Exécution Consultant Informatiaton du Comutation des fouriassurs Etat seias STER et DOm Livraison des natériels Fournissur ÉSd Exécuton État _ Z (Studios) . X t! - 66 - ANNEX 4-14 Page 1 of 2 THE GABONESE REPUBLIC ROAD MAINTENANCE PROJECT Three-year Road Maintenance Program Action Plan 1. The purpose of this Plan of Action is to identify and program al! measures required to make the management, financing, and planning of road maintenance in Gabon increasingly effective. 2. With a view to eliminating the difficulties currently associated with road maintenance on force account and making certain that the goals of the proposed road Program can be met, the Government will set about strength- ening the Ministry of Public Works institutionally, functionally, and opera- tionally along the following lines. a. Institutional Measures. (a) Not later than October 1, 1989, the Borrower shall: (i) through MTPECAT, appoint a qualified and experienced coordina- tor responsible for liaison with the Bank and other external donors as to the road maintenance program to be carried out under Parts A and B of the Project (the Program); and (ii) establish an interministerial committee, including in particu- lar representatives of the Borrower's ministries responsible for public works, finance, and planning and economy, in charge of coordinating the execution of the Program with the other sectors of the economy. (b) Not later than January 1, 1990, the Borrower shall: (i) take all necessary measures to place regravelling and regrading units under the direct command of the regional Sub-directorates of DERA; (ii) establish, within DERA, additional units to be responsible for planning and monitoring the execution of the Program, including the maintenance of road structures; (iii) introduce incentives (such as production bonuses, travel allowances and overtime salary) for executive and supervisory personnel and supervisors of mechanized maintenance teams; (iv) provide in its national annual budget separate allocations by line items for road maintenance, so that operating budgets relating to maintenance on force account and capital budgets relating to maintenance on a contractual basis are clearly earmarked; and - 67 - ANNEX 4-14 Page 2 of 2 (v) establish budget and appropriation regulations in MTPECAT to lmprove management efficiency and accelerate supply arrange- ments for the units responsible for Project execution. 4. Functional Measures. (a) Not later than October 1, 1989, the Borrower shall: (i) recruit and assign executive and supervisory staff, qualified and experienced, in adequate numbers, to the training program to be carried out under Part C of the Project, and (ii) assign newly recruited Gabonese technical personnel as counter- parts to expatriate technical assistance specialists, for purposes of training and possible future takeover of responsi- bilities. (b) Not later than January 1, 19AO, the Borrower shall: (i) assess the needs in Gabonese professionals, holding engineering degrees or with advanced technical qualifications, required to strengthen MTPECAT's central and regional services and take over responsibilities under the Program; (ii) introduce a computerized system for: (A) the annual program- ming and budgeting of road maintenance works in accordance with output standards acceptable to the Bank; (B) the management of finances, personnel, materials and aquipment; and (C) the cost accounting and cost pricing of maintenance works; and (iii) introduce procedures for the regular monitoring and follow-up of Project execution, on the basis of field visits and periodic progress reports. 5. Operational Measures. (a) Not later than October 1, 1989, the Borrower shall: (î) assign mechanized and manual maintenance teams, in accordance with output standards acceptable to the Bank; and (ii) each year, arrange for the checking and thorough overhaul of all items of maintenance equipment over a period of at least two months. (b) During the period of execution of the Project, except in case of exceptional circumstances, the Borrower shall ensure that all personnel involved in the Project with supervisory or technical responsibilities remain in their functions and in the same location. AFlIN January 12, 1989 - 68 - ANNEX 4-15 THE GABONESE REPUBLIC ROAD MAINTENANCE PROJECT Estimated Diabursement Schedule Cumulative Cumulative Date of End of Diebursements Diabursements Diabursements Quarter (USS'OOO) (USS'OOO) (Profile) ---- FY89 -- 30 Sept. 1988 0.0 0.0 0% 31 Dec. 1988 0.0 0.0 0% 31 Mar. 1989 0.0 0.0 0% 30 June 1989 2.0 2.0 7% ---- nso0 ---- 30 Sept. 1989 1.5 3.5 12% 31 Dec. 1989 2.0 5.5 18% 31 Mar. 1990 2.0 7.5 25% 30 June 1990 1.5 9.0 30% ---- FY91 ---- 30 Sept. 1990 2.0 11.0 37% 31 Dec. 1990 2.0 13.0 43% 31 Mar. 1991 1.5 14.5 48% 30 June 1991 2.0 16.5 55% ---- ns92 ---- 30 Sept. 1991 2.0 18.5 62% 31 Dec. 1991 2.0 20.5 68% 31 Mar. 1992 1.5 22.0 73% 30 June 1992 1.5 23.5 78% ---- ns93 ---- 30 Sept. 1992 1.5 25.0 83% 31 Dec. 1992 1.5 26.5 88% 31 Mar. 1993 1.0 27.5 92% 30 June 1993 1.0 28.5 95% ---- FY94 - --- 30 Sept. 1993 1.0 29.5 98% 31 Dec. 1993 0.5 30.0 100% AFlIN January 12, 1989 - 69 - ANNEX 5-1 REPUBLIQUE GABONAISE THE GABONESE REPUBLIC PROGRAME TRIENNAL D'ENTRETIEN ROUTIER (ROAD MAINTENANCE PROJECT) Evaluation Economlque des Routes et Ponts a Entretenir à l'Entreprise (Economic Evaluation of Roads and Bridges Maintenance Vorks by Contract) coût Millions de P.CFA HT Trafic Cost Total Description KQ (Traffie) Excluding Taxes TRI (ERR) (a) Entretien amélioré routes en terre (Improved maintenance earth roads) -- Bifoun-Lambaréné 71 334 596 293 -- Bifoun-Ndjolé 56 308 344 285 -- Alembe-Ayem 76 89 243 233 -- Lambaréné-Oyenano 40 209 422 100 Mouila vers Fougamou 59 141 305 138 -- Mouila-Ndende 79 97 255 14 -- Ndende-Tchibanga 89 114 340 35 -- Mevang-Laiara 59 250 176 245 -- Lalara-Mitzic 56 140 226 24 -- Mitzic-Oyem 111 117 766 42 -- Lalara-Koumameyong 65 135 256 23 -- Koumameyong-Ovan-Makokou 150 66 556 26 -- Ayem-Camp Secteur TP 95 89 317 242 -- Camp Secteur TP-Mekouyi 135 46 600 63 --.Lastoursville-La Leyou 94 172 507 111 -- Koulamoutou-Pana 42 42 206 32 Total 1,277 -,--- 6,115 116 (b) Entretien des routes bitumées > YS\N Z..M..-., êdo,CONGO Cc r t A (RIO MUNI)J o * Ocon O LIBRE VIL l..gor r==bs E . esjt; Ndl -f,0 el=b \ Y Sf N. y= \Ncr *OS *\ v>.v PEOPLE'S REPUBLIC V \ < n v ~~~~~~~~~~~~THE GOOL/&~~~~~~-. Foogomoc~~eCNG 0' s? Ité E jL ct"J^_ \ ve "&À . -ROAD NETWORKS 'Th-bo ' ~~~~RESEAU ROUTIER t. ,do 5s g -\ ~~~~~CONTRACT WORKCS: Petrolo,', ond Gos N Y A` N G A /ew TRAVAVX A t'ENTREPRISEr Petrol er Gos < / \ tz « _~~~~ Improved Moinlenonce cf Uopovnd Roods GoId J~~~~~~~~C . 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