Yemen Transport Sector Input to the Yemen Policy Note no. 4. on Inclusive Services Delivery WOLD BANK GROUP 1 B Table of Contents Acknowledgements 1 Acronyms 2 Introduction 3 The Current Situation 3 Background 3 Damages and the current status 5 Transport Sector Management 6 The Ministry of Public Works and Highways(MoPWH) 7 Ministry of Transport (MOT) 7 Road Sector Issues 8 Road Planning and Budgeting 8 Roads Maintenance and Underfunding 9 Poor coverage of axle load controls 10 Road Safety 11 Rural Roads 12 Institutional issues 13 Human Resources 13 Civil Aviation-Sector Development Issues (pre-conflict) 14 Suggested Policy Actions and Priority Needs 15 Road sector 15 Immediate to short-term priorities-rural roads maintenance 16 Medium to long-term priorities 16 Airports, Ports and Free Zone 17 Annex 1. Transport Map-Yemen. 20 i ii Acknowledgements This Note has been prepared in the context of Yemen’s Policy Note on Economic and Sector Topics led by Mr. Wilfried Engelke, Senior Economist. The outcome of the note draws on a wide pool of expertise from inside of the World Bank, as well as sector works throughout many years of the World Bank’s constructive engagement and partnership in the transport sector in Yemen. The note offers an extensive analysis of Yemen’s transport sector, identifies immediate and short terms priorities and presents a set of recommendations to address the sector’s needs. The outcome of this note has been a collective work produced through insightful reviews, advices and guidance received from colleagues inside the Bank. Most notable, Mr. Olivier Le Ber, Prac- tice Manager-Pakistan, Afghanistan, Middle East and North Africa Global Practice Transport & ICT, Mr. Wilfried Engelke, Sr. Economist and Mr. Balakrishna Menon Parameswaran, Lead Urban Specialist, GSU12 and others including the Peer Reviewers. The author is most grateful for their valuables comments and contributions. The author is also grateful to Ms. Dina Al Abd for her offer to help in reviewing the first drafts, and for her excellent ideas and suggestions that brought the docu- ment to its final shape. A word of thanks and gratitude is also due to Ms. Suhair Mu- rad Al-Zubairi and Ms. Fowzia Yahya Musleh Al-Qobi for their excellent typesetting. 1 Acronyms MPWH Ministry of Public Works and highways Km Kilometer RAP Rural Access Program RAI Rural Accessibility Index RAPCMO Rural Access Program Central Management Office UN United Nations MOT Ministry of Transportation CAMA Civil Aviation and Metrological Authority GAMA General Authority for Maritime Affairs GAMA FFPMU Foreign Funded Project Management Unit GCRB General Corporation of Roads and Bridges RMF Road Maintenance Fund LIG Low Income Groups BPL Below Poverty Line GoY Government of Yemen DNA Damage Needs Assessment PMS Pavement Management System HDM4 .Highway Development and Management System-Version 4 RUC Road User Charges MOF Ministry of Finance RAMP Rural Access Management Project WHO World Health Organization GDP Gross Domestic Product IDA International Development Association TMC Term Maintenance Contracts 2 Introduction 1. The Transport sector policy note Seventy-five percent of the total popula- is part of a series of comprehensive tion live in rural areas out of which 84 economic and sectoral policy notes percent are poor. Road transport is by designed to address issues facing Ye- far the most important form of transporta- men in an early post-conflict phase as tion, especially for seventy percent of the a consequence of the on-going armed population living in rural areas who need conflict impacting the economy of Ye- to access markets, health and education men. Improving connective infrastruc- services, and employment opportunities. ture helps promote job creation, increase Nearly, 50 percent of Yemen’s rural poor rural accessibility to services, and en- live in twelve governorates (Saadah, Am- hance social/economic integration. The ran, Hajjah, Taiz, Lahj, Abyan, Hodeidah, note elaborates on policy issues to fa- Mahweet, Raimah, Hadramout,Ibb and cilitate quick reconstruction of physical Mahrah). Yemen has around 140,000 transport infrastructure and restoration population settlements, the majority of of the supportive institutional set-up. The which are located in the western moun- focus of this note is more on the short- tainous region of the country in isolated term, the first 18-24 months after the rural communities difficult to access. The conflict ends. It is targeted to address, Ministry of Public Works and Highways among other sector priorities, the need to (MPWH) estimates that only a quarter provide for post-conflict, quick interven- of rural households lives within 2 Km of tions to create employment opportunities all all-weather paved roads-this estimate for semi-skilled and skilled labor in rural is consistent with World Bank’s rural ac- areas; and’ at the same time, preserve cess index1, which was estimated to be rural roads assets, improve mobility, ac- 21 percent of the population of Yemen in cess and restore service delivery in the 1999. road transport sector. Areas of interven- tions will include the maintenance and 3. Yemen has approximately 50,000 km rehabilitation of damaged road transport of roads, of which only about 14,000 km infrastructure in areas most impacted by are all-weather paved roads. The re- the conflict. The note will also detail spe- maining 36,000 km are rural dirt/earth cific policy dialogue issues with client in roads in bad to fair condition due to poor order to facilitate the achievement of the geometric design and low maintenance. targeted policy objectives in the medium Rural roads in Yemen have been neglected term. in the past due to limited fiscal resources available for this task with more focus on new investments, and on the development 1. The Current Situation and rehabilitation of the main road net- work, thereby imposing significant limita- 1.1 Background 1 Rural Accessibility Index (RAI) is the percentage of rural 2. Yemen is predominantly rural population who live within 2-Kilometer of an all-weather road country with 26.5 million inhabitants. as a percentage of the rural population. Typical, equivalent to a walk of 20 minutes. 3 tions on growth and development of rural foreign- financed, including projects fi- communities. However, the creation of the nanced through loans from the Arab Fund Rural Access Program (RAP) in 2001, saw for Social and Economic Development AF- an increased interest in rural roads invest- ESD. ment, and more than 5,500 kilometers of new rural have been built. This is mainly due to the need for development of rural 4. In Yemen, access is a key constraint areas as well as the positive impact that to rural development. Lack of access rural road investments could generate is also a factor when conflict in Yemen on rural communities. As often the case is analyzed due to its adverse impact. in Yemen as well as in many developing Therefore, the provision of better access countries, rural poor are required to walk becomes a key element in a post-conflict longer distances to access social services strategy to alleviate the suffering of in- and markets, and use a large proportion ternally displaced people, reduce pov- of their income for transport and mobility. erty, and to provide desperately needed For rural poor communities, social servic- employment opportunities for the rural es and markets are often out of reach and population, especially the youth. The po- this has economic and social implications. tential benefits also include better con- Rural girls in poor households are ad- nectivity, mobility and improved access versely affected because their parents are to markets and services, reduced travel not allowing them to walk long distances time, reduced costs of transport and ba- to access health and education services. sic commodities. Improved access for Prior to the conflict, the MoPWH, RMF and isolated rural communities in Yemen has RAPCMO had many highway development, contributed to enabling the implemen- rehabilitation and maintenance projects. tation of various poverty reduction pro- Some of these projects were government grams and of sector programs in agricul- and donor funded, including high profile ture, health and education, all of which World Bank’s Road Asset Management require reliable and year-round access; Project RAMP and RAP financed projects, it has also contributed to economic inte- and many more were government funded. gration, strengthening of public institu- Sana’a Municipality, Aden’s Local Council tions and decentralized decision-making. had several urban development projects financed out of government budget and Table 1: Impact of rural roads improvements – Data from 6-completed rural roads (2007-2010) Indicator Target Achieved 1. Decrease price of basic commodi- 15% 4-20% ties 2. Decrease of individuals Transport cost to Health centers, School and 30% 25-33% market 3. Decrease travel time 30% 65-70% Source: RAPCMO 4 1.2. Damages and the current been targeted by the airstrikes caus- status ing damages that range from partial to total structural damages. Three major 5. The on-going country-wide armed bridges between Aden and Taiz have conflict has severely impacted the been completely destroyed. The conflict country’s transport infrastructure. has caused the stoppage of many rural Major roads and bridges were destroyed roads projects, and bridge maintenance and damaged during the current conflict. contracts causing the loss of jobs and The extent of the damages ranges from income earning opportunities for many partial impacts requiring little interven- work-age youth population. Overall, tion to total destruction requiring major damage costs are conservatively es- repair works or even total reconstruction. timated at approximately US$500 mil- Roads and bridges connecting Sadaa, lion. As a consequence of the on-going Amran, Sana’a, Taiz and Aden have been conflict, the physical damages to roads extensively damaged. The Aden-Taiz infrastructure, access and mobility have road, linking the port city of Aden with the been seriously affected. Taiz Governorate and its population of 4 million, has been severely damaged and two major bridges have been destroyed. 8. The conflict has also severely im- The conflict inflicted damages to bridg- pacted other transport modes. Air- es and culverts, and caused craters on ports and Ports need urgent reha- the roads surface. Movements of heavy bilitation and repairs. Aden’s airport military equipment damaged long sec- suffered the highest levels of destruc- tions of road pavements. tion. Aden’s ports, Aden Refinery and Aden Container Terminal have also sus- tained extensive damage. Aden Airport 6. Apart from physical damage to the suffered from damages to its terminal road network, mobility and access to building, control tower, runway, taxiways, markets and services remain limited and support facilities, while the ports, the due to fuel shortages and high fuel Aden free zone, and the Aden Refinery prices in the black market. Transport suffered damage to their storage facili- costs have increased, often by a factor ties and support buildings. The facilities between three and five. Furthermore, were forced to close for several months the conflict has caused the stoppage of as a result of shelling and airstrikes. Aden all road projects, and the normal main- Airport suffered the most, with visible tenance of roads and bridges opera- damages to its terminal building, control tions, thus eliminating income-earning tower, runway, taxi and support facilities. opportunities for thousands of workers The Al Ma’alla Port, Aden Free Zone and throughout the country. the Aden Refinery also suffered damag- es to their storage facilities and support buildings. It worth noting that due to the 7. The Road Maintenance Fund’s continued conflict little is known about damage assessment report indicates the extent of the damages to airports, that at least 1,241 km of roads have ports and other key infrastructure, espe- been extensively damaged in Sadaa, cially, in Hodeidah and Tiaz. Amran, Sanaa, Taiz, Abyan and Lahj governorates. Sixty-two bridges have 5 lives. The port was affected in its opera- 9. Sana’a International Airport has sus- tions in 2015. As a result, cranes and tained severe damages to its runway, critical infrastructure of the port became taxiways, apron, electrical and ventila- in-operational reducing port‘s capac- tion systems. Al Ma’alla Port, Aden Con- ity. Since then, the port is struggling to tainer Terminal, and Aden Refinery need handle ships carrying urgently needed urgent infrastructure repairs to their fa- necessities such as food (wheat), fuel cilities and support buildings. Hodeidah supplies, medicine and humanitarian re- port, Airport and Taiz airport have also lief operation. Vessels calling the port of sustained heavy damages to their build- Hodeida take several days or weeks to ings, support facilities and infrastructures unload cargo that used to take several to the extent that these airports are ei- hours to handle. Ships carrying commer- ther non-functioning or operating at very cial and humanitarian goods to Hodeida, low capacity. The Sana’a International Mokha, As Saleef Ports need to ap- Airport sustained significant damage. . ply for permits upon departure from the Collateral damages were incurred on its port of origin. All humanitarian vessels runway, taxi, apron, doors and windows going to any Yemeni port, and all com- glass, false ceiling, electrical and inter- mercial vessels calling the ports of Aden net wiring, air-conditioning and ventila- and Mukalla also need to apply for entry tion ducts and systems. permit through the Ministry of Transport prior to the vessel’s arrival. The conflict is exerting enormous pressure on the 10. The port of Hodeidah is consid- ports‘ technical and institutional capacity ered the largest sea port in Yemen. at a time when it is most needed to cope Its importance comes from the mag- with the growing demand for humanitar- nitude of goods imported through ian relief operations and food supplies. the port into the country and the rev- enues generated by the port. Custom duties from all ports in Yemen generated approximately 70% of the total custom 2. Transport Sector Management revenues in Yemen. Hodeidah port ac- 11. Traditionally, the road network and countet for 50% of the total sea ports the transport infrastructure sectors revenues, and 40% of the total revenues in Yemen are managed by two line from custom duties and taxes generated ministries: (i) the Ministry of Public by the Customs Authority in 2013, which Works and Highways (MPWH) and amounted to more than US$1.0 Billion. (ii) the Ministry of Transport (MOT). The Hodeidah port has sustained direct The MPWH manages the road network attacks during the conflict causing mas- through its HQ office in Sana’a and the sive damages to its cranes and facili- regional offices in 18 governorates. It ties. The port now operates at less than has overall responsibility over the road 50% of its capacity before the conflict, infrastructure, including its development handling mainly, pre-inspected vessels strategies, expenditure programs, main- by the UN, carrying fuel and food sup- tenance, and rehabilitation activities. plies to Yemen2. Port of Hodeida serves as the main sea port for Yemen’s north- The MOT has overall control over 12. ern region where most of the population Yemen’s ports and airports. And, it has 2 Source: Yemen Customs Authority, 2015 Annual Report 6 the authority to make major decisions, ports, airports, land and sea trans- such as approving annual budgets, in- portation needs of Yemen. The MOT vesting in new facilities and equipment, works within the State’s general policy and appointments of senior staff posi- framework in a number of directions to tions within its agencies such as the achieve the strategic objectives included Civil Aviation and Metrological Authority in the organizational regulations of the (CAMA) and the General Authority for Ministry contained in the Republican De- Maritime Affairs (GAMA). cree No. (427) of 2002. The Ministry of Public Works 1.1. The major tasks and functions of 15. and Highways(MoPWH) the MOT are broadly summarized be- low: 13. The MoPWH is responsible for de- velopment of the entire road network in Yemen. The organization of the minis- • Draw the general policy for trans- try comprises four main units: The Road port, prepare plans, systems and Sector, the Road Maintenance Fund legislations and supervise imple- (RMF), the Rural Access Program Cen- mentation in coordination with the tral Management Office (RAPCMO) and relevant agencies; the Foreign Funded Project Manage- • Improve the performance and in- ment Unit (FFPMU). In spite of its large crease the capacity of the existing mandate, MPWH is also involved in the seaports and airports; development of urban roads, except in • Develop, improve and organize the capital Sana’a and Aden. Although land, sea and air transport services the General Corporation of Roads and to meet the economic development Bridges, (GCRB) State Owned Enter- needs of the country; prise, is by and large now operating as • Follow up application of interna- an autonomous organization, it is still tional legislations and standards in awarded large maintenance contracts management of air and maritime by Road Maintenance Fund RMF every navigation’s safety; year on a sole source basis. The Ministry • Carry out socio-economic feasi- also has a Housing Sector, which looks bility study and detailed engineer- after housing needs of the population ing for setting up new air and sea and develops strategies to meet these ports; needs, including Low Income Groups • Link Yemen with air and sea LIG housing and the housing needs of routes, at both regional and inter- marginalized population below poverty national levels, as per the Govern- line (BPL) living in slums and streets. ment’s plan and strategy; The Ministry does make both 5-year and • Coordinate with the relevant au- Annual Plans thorities for developing traffic safety program and improve means of land transportation to minimize ve- Ministry of Transport (MOT) 1.2. hicle emissions; The Ministry of Transport is re- 14. sponsible for the development of 7 3. Road Sector Issues separately without optimizing expen- diture for the entire sector. As a result, there is mismatch between the plan and 16. In Yemen, road development has the budget in any given year, resulting become a national priority to promote in delay in payment to the contractors. social and economic integration and Also, inadequate and unreliable data- development. Between 1990 and 2015, base and lack of proper road map make the length of the paved road network the long term planning process difficult. (rural and others) grew more than three- There is no proper institutional arrange- fold, from 4,500 km to about 14,000 km. ment for procurement of contracts. And, Despite remarkable achievement, seri- the system of classification of the con- ous issues remain. Yemen’s rural roads tractors by MPWH, needs to be rational- network is far from serving all of the ru- ized keeping in view the capabilities of ral population scattered over more than the existing firms and the availability of 140,000 villages, and small rural settle- engineers and trained workforce in the ments. Only 5,500 km of rural roads country. (11%) are all-weather and paved roads. Most of the unpaved rural roads are es- sentially dirt/earth motorable tracks in 19. Yemen is confronted with a very very poor condition, allowing travel only difficult economic and security situ- under exhausting and dangerous condi- ation. This situation is complicated with tions at extremely low speeds, entailing dwindling public resources requiring nec- high vehicle operating costs and acci- essary changes to investment planning dents. and prioritization in the road transport sector. Generally, both major and minor projects in the Public Sector are taken The road sector issues can be di- 17. up without adequate planning, detailed vided into the following: study and project preparation, presum- ably due to urgent need of these projects 1.1. Road Planning and Budgeting resulting in time and cost overruns. 18. MPWH has made remarkable insti- 20. Road planning in general is weak tutional progress in the last few years, and budget process is not properly but its role and responsibilities in the developed. The sector planning and Road Sector are far too wide3 and budgeting is done by MPWH and no overstretched. About 90% of its budget identification and evaluation are done in is earmarked for the road sector. About respect of medium to long term expendi- two third of its total budget is spent on ture needs. Planning for construction of various road construction projects. The new roads, upgrading of existing roads planning and budgeting process is weak and for maintenance are done separate- and underdeveloped. Plans for construc- ly without optimizing the expenditure for tion of new roads or upgrading existing the entire road sector. roads and for maintenance are done 3 MoPWH is also responsible for housing and municipali- ties; responsibilities that should have been transferred to Various plans like the National 21. governorates as part of the government plans for decentral- Highway and Rural Accessibility ization process. 8 Master Plan, the Public Investment sively by the relevant line ministry, Program, the National 5-year Invest- the Ministry of Local Administration, ment Plan and the short-term priori- in the context of post-conflict decen- ties for foreign funded projects have tralization plans by governorates. been prepared by the GoY at differ- The purpose of the review would be to ent times, but no single strategy has formulate a balanced methodology and been adopted so far. Another important work programs for prioritizing the main- factor affecting the planning and budget- tenance and development of the Nation- ing process is inadequate and unreliable al-level and Governorate-level primary database in the road sector. Lack of a and secondary rural roads rehabilitation, proper roadmap makes it difficult to pre- reconstruction and recovery plans. The pare a “vision” document for road net- objective is to increase efficiency in re- work and monitor of ongoing road con- source allocation through improved and struction and maintenance activities. rationalized planning and budgeting by modernizing the current Pavement Man- agement System (PMS) and migrate 22. Generally, the planning process in to the more efficient and cost effective Yemen is not adequately developed Highway Development and Management to steer the country to a path of sus- HDM4 model. The system is used widely tained economic development. Public by road agencies for evaluating options finance aims to achieve a greater role in for investing in road transport infrastruc- providing basic social services, particu- ture. It is commonly used as a basis for larly education, health, water and sanita- analyzing the economic feasibility for a tion in addition to fulfilling the needs of given road project, or to assesses an en- social equity and improving infrastruc- tire road network to help decision mak- ture and other basic services. In the re- ers in their strategic investment planning cent years, the Government of Yemen at the network-level with or without bud- has taken steps towards decentraliza- get constraints. tion, and has decreed the Local Admin- istration Law No. 4 of 2000, as well as the State’s administrative divisions. Also, 1.2. Roads Maintenance and Un- a number of line ministries and other in- derfunding stitutions have established offices in the governorates granting governors, local Despite the establishment of an 24. councils and executive branches the autonomous Road Maintenance Fund necessary authority for managing, imple- (RMF) in 1996 with its own revenue mentation and monitoring of tasks and source and maintenance planning ca- responsibilities related to investments pability, the road sector still suffers and development in their governorates. from inadequate road maintenance funding and management. At about US$40 million a year, funding for road Given the current fiscal situation 23. maintenance is still insufficient; and, the Yemen is facing and the outcome of planning of maintenance needs strength- the DNA, it is proposed the existing ening. The annual budget allocations for institutional arrangements, imple- road maintenance is partly coming from menting capacities at the central and fuel levies (Road User Charges or RUC) regional level are reviewed exten- through a surcharge on diesel and gaso- 9 line sales approximately (US$30) million nance to keep Yemen’s paved network annually, of which a third is transferred in satisfactory condition. to the governorates for local roads), and general budget allocations (US$10 mil- lion) from the Ministry of Finance. 26. Once peace and stability are re- stored in Yemen, and in continuation of the constructive dialogue on road 25. Adequate funding for road mainte- sector related issues over the past nance is an essential condition for the years, the World Bank plans to engage support by the World Bank and other relevant line ministries and agencies donors to Yemen’s road sector. In April MOF, MPWH and the RMF in a dialogue 2012, Cabinet Decision No. 41/2012 on aimed at the implementation of the Road Road Maintenance Funding was issued Maintenance Fund law, and the resump- which established, temporarily, that 3 % tion of the collection mechanism as set of the pump price of diesel and gasoline by law, in order to ensure the continued fuel is to be transferred to the Road Main- support and cooperation of donor part- tenance Fund. The collection of fuel levy ners involved in Yemen’s road sector. was suspended for few months following Figure 1. Road Maintenance Fund-Road User Charges (RUC) 2000-2015 Source: RMF-RAMP PIU. 2016 the political and security disturbances on 1.3. Poor coverage of axle load September 2013, now resumed starting controls from January 2016, and the Road Main- tenance Fund is working with authorities 27. Overloading accelerates deterio- to open an account in commercial Bank ration of roads and increases road to deposit their revenues into that com- maintenance costs as well as vehicle mercial Bank account. An estimated operating costs. Trucks are allowed to US$100 million is probably needed for continue with the excessive loads after the annual routine and periodic mainte- paying a nominal fine. Relatively low 10 penalties for small overloading unrelated accidents. Following the unification of to distance cause a systemic overload- Yemen in 1990, and the rapid urbaniza- ing of trucks which damages the road tion, growth of vehicle ownership and the pavements. Law No.23/95 on Axle Load emergence of high risk driving behaviors Control and its Regulation are designed have all contributed to the increase in to limit the damages of axle overloading road accidents and road accidents fatali- to the road network in Yemen. The legis- ties of the road network. The poorly main- lation limits axle loads to 13 tons for sin- tained road network, especially moun- gle axles and 21 tons for tandem axles. tainous roads, pose major challenges to road safety even to experienced drivers, and contribute to numerous road acci- 28. The RMF has been assigned the re- dents. The traffic police record 13,000 sponsibility of operating and financ- accidents with injuries each year affect- ing the operation and management of ing about 17,000 people and their fami- the weighbridges in Yemen. The RMF lies. The most common causes of road has rehabilitated aging weigh stations accidents as reported by the police are in Hodeidah, Taiz and Harad to enforce speeding and reckless driving. Accord- axle load limits. Under the RAMP project, ing to the WHO, road accidents in Ye- the RMF plans to build four new perma- men constitute 12% of the total deaths nent weigh stations located in roads with in 2006. The number of deaths per high volume of truck traffic. In addition, 100,000 people of the population is 21.5 two mobile axle load control units will be deaths. According to the World Bank’s financed to provide random controls of estimates, road accidents constitute a truck overloading. 5% loss of GDP. 29. The RMF has made several at- 31. The backlog of maintenance works tempts to issue fines, leading to pro- due to under-funding of regular main- tests by the truckers. However, it has tenance for many years is a factor that proven very difficult to control axle loads contribute to poor road safety. And, in Yemen, due to the tariff controls on the fact that the core road network is suf- trucking operations, which is under the fering from truck overloading, and an ag- responsibility of the Ministry of Trans- ing trucks fleet, not only affects the cost port. With respect to the challenges in of transportation, but also endangers enforcement of trucks overloading, it is roads users. The road safety strategy the GoY’s policy to effectively revise the in Yemen would require enabling traffic current law, without any relaxations and police and concerned public and private to maintain adequate facilities to effec- institutions to contribute to boosting road tively enforce the law of trucks overload- safety education programs to limit traffic ing. accidents and raise traffic safety aware- ness. It would also require law enforce- ment and the adherence to traffic laws, Road Safety 1.4. coordination among government and private institutions concerned with traffic Yemen has one of the poorest traf- 30. safety and accidents, and creating edu- fic safety records in the world with cation programs for roads’ users. 5,200 deaths every year on the road 11 Rural Roads 1.5. The benefits also included the fol- 34. lowing: 32. The GOY’s strategy is to improve • Improved access to schools the provision of rural roads through and health centers, reduce the the Rural Access Program (RAP), with gender gap in education among the objectives of improving the live- boys and girls, increased ac- lihood of rural population by reduc- cess to childhood-motherhood ing their isolation and creating job services and health facilities and opportunities for working-age rural improved mobility, which are im- youth. Rural roads play a major role in portant for social and economic improving the living conditions of the ru- integration and development. ral population by creating employment • Improved access to markets opportunities, facilitating the social and by reducing transport costs, with economic integration and poverty alle- the potential to increase income viation. and employment opportunities generated from more profit and 33. Rural communities in the project an improved marketability of per- road area are impacted positively by ishable goods and market-ori- rural road projects through improved ented cash crops, fisheries and mobility, access to public social ser- agriculture products. vices and job opportunities and mar- kets. The benefits include self-employ- 35. The RAP has been highly success- ment opportunities among men and ful since its creation in 2001. It has women. Rural roads investments create already upgraded about 5,500 km of short-term employment opportunities rural roads serving nearly 2.00 mil- through road construction, and also long lion people in 17 governorates. These term employment opportunities through changes have also improved trade in ru- continuous road maintenance through- ral areas, allowing the rural population to out the lifespan of the road. have access to public services, markets, and food imports. The RAP’s achieve- Table 2: The rural Access Program-Sources of Financing. 2001-2016 Donor Amount US$ % of Total Arab Fund for Economic and S ocial Development 136.00 24.68 EU 11.60 2.11 GoY's S hare 120.00 21.78 IDA's 1, 2 & 3 132.00 23.96 Islamic Bank for Development 11.20 2.03 Italian Debt S wap 5.00 0.91 Kuwait Fund 50.00 9.07 Omani Grant 10.00 1.81 S audi Fund for Development 50.00 9.07 UAE Grant 20.00 3.63 US AID 5.20 0.94 Total 551.00 100.00 Source: RAPCMO 2016. (MPWH) 12 ments are based on efficient manage- contracts by RMF every year on a ment, appropriate technical standards sole-source basis. This policy does not and rationale investment priorities. The provide grounds for fair competition with RAP’s ability to efficiently deliver rural the private contractors. Ideally, GCRB roads has attracted the interest of many should operate as a commercial busi- external donors besides the World Bank. ness entity and should have full financial The RAP’s main goal is to upgrade autonomy from MPWH. However, with 10,000 km of rural roads during the next the support of the World Bank through 10 years. the IDA’s RAMP project, the RMF has been enabled to improve the mainte- nance management effectiveness, and 1.6. Institutional issues now able to pilot four Term Maintenance 36. The organization of MPWH com- Contracts (TMCs) totaling 1,358Km of prises five main agencies: the Road regular road maintenance in three gov- Sector Department, Road Mainte- ernorates to private contractors on multi- nance Fund (RMF), the Rural Access year Term Maintenance Contracts. Program-Central Management Office (RAPCMO), the Foreign Funded Proj- 1.7. Human Resources ect Management Unit (FFPMU) and the General Corporation for Roads and 39. The shortage of qualified and ex- Bridges GCRB. Each of these agencies perienced engineers, supervisors need to be developed to assume a larger and skilled workmen is a major factor role and responsibility, given their capa- responsible for the institutional defi- bilities. ciencies of the road sector, national consultants and private contractors. This is in spite of the fact that Yemen 37. The sector monitoring is done by produces about 300 graduate engineers the Information Technology Director- every year from the Universities and oth- ate that need to be strengthened with er Technical Institutes. adequate staff, resources and equip- ment to carry out its functions more effectively. In spite of its large mandate, 40. The success and sustainability in MPWH is also involved in the develop- the road sector, at the central and lo- ment of urban roads, except in the capi- cal level, will depend on the capacity tal Sana’a and Aden. As per the practice and incentive of its human resources. followed in most countries, urban road The civil service in Yemen suffers from network management is left to the local both low pay and a low skill base. There- authorities, since it involves issues relat- fore, the reform in the sector is needed. ed to urban planning and transportation Sustainability of both civil service reform needs and land use management. and the decentralized management of the road sector are interdependent. The lack of qualified and experienced engi- 38. Although the General Corpora- neers and planners is likely to put a limit tion of Roads and Bridges (GCRB) to efficiency and speed of the decentral- is by and large now operating as an ization of the planning, decision making autonomous organization, it is still and management of the road sector. awarded large routine maintenance 13 41. While some governorates will be domestic market passengers. able to set up their own capacity in the area of rural roads planning and management, others will not. There 43. According the Republic of Ye- are significant socio-economic differenc- men’s Air Transport Sector Strategy es among the 18 rural governorates, and Note, September 2011, the air trans- even more so between the 301 rural dis- port sector was facing several insti- tricts in Yemen. All of them will not have tutional, governance and operational the necessary human and financial re- problems. The main sector issues the sources to create the technical capacity sector was facing are summarized be- for road management and maintenance low: of rural and local roads under their juris- • Infrastructure Development: diction. One option is to pilot the creation there was no overall clear strategy of regional management offices which for airports infrastructure develop- could combine two or more governorates ment. Many of the infrastructure under one regional unit responsible for a projects were premature or unsuit- large regional rural road network. These ed for Yemen’s needs. regional rural road administration units • Airline Development: Yemen Air- would fall under the control of a local rep- way’s development strategy was resentatives from the relevant governor- risky and heavily dependent on ates for roads under the authority of the public funds. The strategy was high Governorates. This option of decentral- risk because of high degree of com- ized/regional management of the rural petition by regional airlines road network is necessary to absorb and • Institutional Capacity: The Min- retain qualified professionals, and create istry of Transport MOT had limited employment opportunities for rural youth institutional capacity, and its role in in road investment projects. managing the sector’s policies and priorities needs to be clarified. At the same time, the dual functions of 3. Civil Aviation-Sector Devel- the Civil Aviation and Metrological opment Issues (pre-conflict) Authority CAMA to operate all air- ports, assures the safety and secu- 42. Prior to the conflict, Yemen’s civil rity of all airports, provides air traffic aviation sector was facing a number control and maintains the metro- of operational, financial and institu- logical services makes oversight tional issues. Yemen’s air transport is for the sector difficult. However, relatively small compared to other coun- despite its limitations, the air sec- tries with similar population and GDP tor in Yemen had some important size. Yemen has 18 airports, only three strengths. The sector complies with are open to international flights, with international standards and Yemen Sana’a International Airport having al- Airways is respected for its safety most 80% of the total international and records and performance. Yemen domestic passengers. The national car- Airways links Yemen well with most rier, Yemen Airways, operated all do- of economic partners, and the sec- mestic routes until 2008 when Felix was tor’s infrastructure has been ad- established with the aim to take over the equately developed and has been 14 considered adequate for current of its institutions, MOT and CAMA, that and future air traffic. provide technical and oversight will have to be reviewed, and possibly redefined, 44. The current conflict in Yemen has to take into account for the impact of the impacted the air transport sector’s conflict on the infrastructure, operational ability to operate normally because and governance of the sector., in post- of the devastating impact of the con- conflict Yemen, the priority is to strength- flict. Sana’a, Aden, Taiz and Hodeidah en the role of MOT’s ability to develop airports have been targeted and the dev- short-term and long-term strategies for astation to their buildings, facilities and civil aviation masterplan that foster pri- infrastructures have been so severe that vate sector involvement in the civil avia- all these airports either non-functioning tion industry in Yemen, including Public or operating at very low capacity. Private Partnership to enhance private involvement in air transport. This could strengthen the sector’s attractiveness for 45. Since the start of the armed con- private investors to bring much needed flict on March 2015, all regional and financing, expertise and capacity to de- international carriers suspended velop the sector. their operations to Yemen. Emirates, Etihad, Qatar Airways, Gulf Air, Fly Dubai, Saudi Airlines, Egypt Air and the Royal Jordanian airlines all have 4. Suggested Policy Actions suspended their flights to Yemen. and Priority Needs The national carrier, Yemenia is operat- ing a number of scheduled flights, and 4.1. Road sector are limited to four weekly flights between 47. There are several institutional, fi- Sana’a, -Amman-Sana’a and Sana’a- nancial and technical challenges fac- Cairo-Sana’a. For more than two months, ing the restoration of service delivery Sana’a airport is closed, and Yemenia is in the road sector in post-conflict Ye- operating limited scheduled flights from men. Post-conflict priorities and needs Aden and Sayeoun to Amman and Cai- are divided into immediate and short- ro. All Yemenai Cargo operations have time; and medium to long term priorities. been suspended indefinitely since the Immediate and short-term interventions conflict started. Yemenia fleet consists to be targeted towards the implemen- of: 2-airbus A310-300, 2-Airbuus A320- tation of labor-based maintenance and 300, 2-Airbus A330-200 and 3-Boeing rehabilitation interventions aimed to im- B737-800 that joined Yemenia Fleet in prove mobility and access, restore ser- November 2007. vice delivery and create employment opportunities for the rural population, 46. In post-conflict Yemen, the find- particularly, in poverty-ridden rural ar- ings of the 2011 Strategy Note will eas. Medium to long term reconstruction have to be updated and a comprehen- priorities, including the institutional set- sive review of the sector’s institution- up of the sector’s line ministries and their al, infrastructure and operational ca- organizations, need to be addressed in pacities will have to be revisited. The the context of a more stabilized political status of the civil aviation and the roles and security situations. 15 the promotion of a participatory and transparent planning approach uti- 4.2. Immediate to short-term pri- lizing the prioritized methodology, orities-rural roads maintenance already in-place, and adapted by the Rural Access Program in the 48. In the immediate post-conflict Ye- implementation of the governorate- men, at least 5,000-6,000 kilometers of level maintenance masterplan. high priority rural roads need to be main- • Funds need to be mobilized to fi- tained and rehabilitated. Funds need to nance the maintenance and reha- be mobilized from various sources, in- bilitation works of rural roads uti- cluding donor’s contributions. To imple- lizing labor-intensive technologies ment such plan, there are a number of thus maximizing job creation for operational and institutional issues that rural youth population. need to be addressed, particularly, at the • No rural road maintenance should regional (governorate-level) and local be implemented unless it is includ- level, as outlined below: ed in the approved governorate- level maintenance masterplan, and should have adequate operation • Clear roles and responsibilities and maintenance funds for timely conducive for rural roads mainte- maintenance. nance strategies as well as guide- • Maximize road benefits to other lines for maintenance planning, sectors such as agriculture and operation monitoring and evalu- other sectors (health, education, ation should be established and etc.) should be part of the road strengthened. maintenance design, so that ben- • Policies related to rural roads efits from the road maintenance are maintenance should include the de- enhanced to their full potential. volution of rural roads maintenance programs to the regional authorities and governorates. • Different road maintenance mod- 4.3. Medium to long-term priorities els and standards will need to be developed for different road stan- • On the institutional side, the nor- dards and conditions to allow for mal function of the MPWH and its communities to contribute within organizations need to be reestab- their capacity. lished. Work contracts need to be • Governorate and districts au- validated and contract update and thorities should be empowered and modifications need to be agreed strengthened to implement their upon with contractors. New con- maintenance plans and operations tracts need to be established un- with appropriate training, knowl- der emergency procedures and the edge transfer, institutional strength- overall sector planning and budget- ening and technical capacity-build- ing need to be revised to eliminate ing. non-performing contracts due to • Emphasis on rural roads mainte- funding constraints. To eliminate nance during post-conflict strate- the accelerated damage of the road gies and programs should focus on 16 network, the GoY needs to enforce 4.4. Airports, Ports and Free Zone legislation on axel loading to avoid 49. Aden Airport, Aden Port (Al Mu- rapid deterioration of the road net- kalla Port), the Aden Container Termi- work. nal, Aden Free Zone and Aden Refin- • The balance of road expendi- ery Company were facing enormous tures needs to be revised with a challenges prior to the conflict. In shift from new construction towards December 2014, the World Bank con- maintenance and rehabilitation of cluded a high-level workshop in Cairo, the most impacted roads, especial- Egypt, attended by major stakeholders ly, rural roads that have high visibil- from the government and private sec- ity in terms of restoring access and tor discussing the findings of the World keeping the country united. The pri- Bank-funded Advisory Services for the ority should also shift to developing development of Aden as an economic rural roads to include rural popula- capital for Yemen. tions in mainstream economic ac- tivity. • Apply existing Law on Road 50. The most recent, “Aden Develop- Maintenance Funding to restore ment Study” provided detailed strat- the RMF’s financial revenues from egies for achieving the technical, RUCs, set at 5% of the pump price infrastructure rehabilitation and insti- of fuel sold in Yemen, to meet the tutional reforms of Aden’s economic needs for losses associated with facilities. The outcome of the National the elimination of the fuel subsidies Dialog Conference was giving Aden the during the conflict. potential to convert into an economic • On the technical side, using capa- capital of new Yemen. In the context ble, local contractors and enhance of the post-conflict, and in continuation the capacity of the national engi- of the Aden study’s findings and action neering consulting firms to handle plans, the GoY and the World Bank could reconstructions operations in the work on a strategy to support the GoY’s road transport sector. efforts to promote the economic and • Introduce capacity building and social development of Aden and revive training programs, at the gover- specific economic activities. The strate- norate and regional levels, for lo- gy would draw an action plan to allocate cal contractors and local consult- specific tasks sand responsibilities to ing firms to develop their technical agencies involved in the process of de- skills in areas of preparation of bids, veloping Aden as an economic capital in pricing, contract management and post-conflict Yemen. The strategy would environmental management to sup- build on the advantages that would be port Yemen’s plans for post-conflict gained from reforms aimed to give Aden reconstruction and socioeconomic given new power to operate under new recovery. national laws and under governance and • Promote community-based con- institutional structures that follow inter- tracting in rural roads maintenance national “best practice”. using micro-enterprises to maxi- mize employment opportunities The study provided detailed evalu- 51. among rural youth. ations of the legal and institutional 17 framework under which Aden Airport, ity, at the central and regional Ports, Aden Container Terminal and levels, of the Ministry of Pub- Aden Free Zone currently operate. lic Works and Highways and its The study examined potentials for Aden agencies including (the RFM and the risks facing the development and RAPCMO) and the Ministry of Aden. Challenges identified include, of Transport and its agencies in- among many other issues, institutional cluding (The Maritime Affairs and challenges in the form of autonomy and Civil Aviation and Metrological decision making by the central govern- Authority-CAMA). ment, competition from regional ports, airports and free zones, and the overall 2. Identify medium-term, 3-5 security situation in Yemen. years’ high priority rehabilitation and reconstruction plans (Roads, Ports, Civil Aviation), including Below is an outline of the challeng- 52. sources of funds. es and immediate, short to medium terms actions: Challenges Facing the transport sector: C. Medium term (5 years). 1. Sector reviews (Roads, Mari- 1.Service delivery restoration, time and Civil Aviation), building Roads, bridges, ports and air- on previous works including the ports. Transport Sector Note, Road sec- 2.Securing sources of funds for tor Review, updating the Rural immediate and short terms post- Roads and Highway Masterplan, conflict rehabilitation and recon- the Aden Study and the Bank’s struction programs in the trans- study on Civil Aviation in Yemen. port sector. 2. Develop high priority rehabilita- 3.Strengthening the resilience of tion and reconstruction schemes local partners, and restoring the throughout the sector including institutional and technical capaci- sources of funds. ties at the central and regional- 3. Develop 5-10 years’ recon- levels. struction and rehabilitation mas- Priorities: terplan A. Immediate term (3 months): 4. Identify sources of funds for peace and post-conflict recon- 1. Inventory damages to roads, struction, including PPPs for high ports and airport infrastructures, profile strategic projects aimed at using DNA studies and ground restoring regional integration and partners. regional trade facilitation. 5. Identify sources of funds for B. Short term (1 year): emergency interventions using 1. Review the institutional capac- labor-intensive technologies to 18 restore service delivery using ity and access to services and community-based and microen- markets) terprises and the regional and vil- lage-level, specifically in the road (ii) High social and economic transport sub-sector. impact projects, (job creation, value for money) (iii) Optimizing use of scarce The sequence and order of selected funds from various sources, priorities will be based on: (road user charges, government allocation and donor’s funds) (i) High priority to the sector’s (iv) contribute to peace-building, service delivery, (critical road restore social fabric and Ye- sections and bridges for mobil- men’s unity. 19 Annex 1. Transport Map-Yemen Source: World Bank 20 References Republic of Yemen, Report No. 49175-YE 11, 2001. Finance, Private Sector Develop- Road Sector Strategy Note. Middle East and ment and Infrastructure. Middle East and North Africa Region, Energy and Transport North Africa Region. The World Bank. Wash- Unit. The World Bank. Washington, D.C. USA. ington, D.C. USA. August 2010. Report No: 5 1400-YE. PROJECT PAPER Advisory Services for the Preparation of Plan ON A PROPOSED ADDITIONAL FINANCING of Actions for the Development and Manage- GRANT IN THE AMOUNT OF SDR 25.2 MIL- ment of Aden Port, Aden Free Zone and Aden LION (US$40.0 MILLION EQUIVALENT) TO Airport. FINAL REPORT – ACTION PLANS THE REPUBLIC OF YEMEN FOR THE SEC- FOR ADEN PORT, AIRPORT AND FREE OND RURAL ACCESS PROJECT. November ZONE AND SUMMARY OF STAKEHOLD- 19,2009. Sustainable Development Depart- ERS’ WORKSHOP. Prepared by IOS Part- ment. Middle East and North Africa Region. ners. The World Bank. February 2015. The world Bank. Washington, D.C. USA. Advisory Services for the Preparation of a Plan Report No: 74878-YE. PROJECT APPRAIS- of Actions for the Development and Manage- AL DOCUMENT ON A PROPOSED GRANT ment of Aden Port, Aden Free Zone and Aden IN THE AMOUNT OF SDR 26.1 MILLION Airport. - DIAGNOSTIC REPORT. Prepared (US$40 MILLION EQUIVALENT) TO THE by IOS Partners. The World Bank. July 2014. REPUBLIC OF YEMEN FOR A ROAD AS- Advisory Services for the Preparation of a SET MANAGEMENT PROJECT. January 18, Plan of Actions for the Development and 2013. Sustainable Development Department. Management of Aden Port, Aden Free Zone Middle East and North Africa Region. The and Aden Airport. FINAL REPORT – ACTION World Bank. Washington, D.C. USA. PLANS FOR ADEN PORT, AIRPORT AND Report No: PAD843. INTERNATIONAL DE- FREE ZONE AND SUMMARY OF STAKE- VELOPMENT ASSOCIATION. PROJECT HOLDERS’ WORKSHOP. Prepared by IOS APPRAISAL DOCUMENT ON A PROPOSED Partners. The World Bank. February 2015. GRANT IN THE AMOUNT OF US$ 134 MIL- Report No. 49177-YE. Republic of Yemen. Air LION EQUIVALENT TO THE REPUBLIC Transport Sector, Strategy Note. September OF YEMEN FOR A CORRIDOR HIGHWAY 2010. Middle East and North Africa Region. PROJECT. April 2, 2014. Sustainable Devel- Energy and Transport Unit. The World Bank. opment Department. Middle East and North Washington, D.C. USA. Report No: 21735- Africa Region. Washington, D.C. USA. YEM. Yemen: Dynamic Damage and Needs Assess- Report No: 21735-YEM. PROJECT AP- ment (DNA): First Phase. Report to the Gov- PRAISAL DOCUMENT ON A PROPOSED ernment of Yemen from: World Bank Group, CREDIT IN THE AMOUNT OF US$45 MIL- United Nations System, Islamic Development LION EQUIVALENT TO THE REPUBLIC OF Bank, European Union. GSURR WORLD YEMEN IN SUPPORT OF THE FIRST PHASE BANK GROUP, 1818 H STREET NW, WASH- OF AN ADAPTABLE PROGRAM CREDIT INGTON DC. 06 May 2016. FOR THE RURAL ACCESS PROGRAM. May 21