Document of The World Bank FOR OFFICIAL USE ONLY Report No. 7046 PROJECT COMPLETI'N REPORT REPUBLIC OF TOGO FEEDER ROADS PROJECT, CREDIT 810-TO December 9, 1987 Western Africa Region Transportation Division This document has a restricted distribution and may be used by recipients only in the performaace of their official duties. Its contents may not otherwise be disclosed without World Bank authorization. FOR OMCAL USE ONLY THE WORLD 8ANlt Washington. DC 20433 U S A Opeat.nn lvaIawtbe December 9, 1987 MEMORANDUM TO THE EXECUTIVE DIRECTORS AND THE PRESIDENT SUBJECT: Project Completion Report on Republic of Togo Feeder Roads Project (Credit 810-TO) Attached, for information, is a copy of a report entitled "Project Completion Report on Republic of Togo Feeder Roads Project (Credit 810-TO)" prepared by the Western Africa Regional Office. Under the modified system for project performance auditing, further evaluation of this project by the Operations Evaluation Department has not been made. Attachment 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 auhorization Currency Exchange Rates Name of Currency (Abbreviation): CFA Francs (CFAF) Annual Report (May 1978) USS$ = 245 1978 US$1 = 220 1979 US$1 213 1980 US$1 = 211 1981 US$1 = 272 1982 US$1 = 329 1983 US$1 = 381 1984 US$1 = 437 1985 USSI = 449 Abbreviations DGR Directorate of Rural Engineering in MAR (Direction de G6nie Rural) DTP Public Works Department in MEPW (Direction des Travaux Publics) MAR Ministry of Rural Works (Ministere de l'Amenagement Rural) MEPW Ministry of Equipment and Public Works (Ministere de l'Equipement des Travaux Publics -- now the Ministere de 1'Equipement et des Postes et Te16communications) SNPR National Feeder Roads Service (Service Nationale des Pistes Rurales) SOTOGO Togolese Cotton Company (Societe Togolaise du Coton) SRD Feeder Road Utnit (Service des Routes de Desserte) FOR OFmFCIAL USE ONLY REPUBLIC OF TOGO FEFDFR ROADS PROJECT, CREDIT 810-TO PROJECT COMPLETION REPORT Table of Contents Page No. Preface............................................... Basic Data Sheets ..................................... ii Highlights ............................................ iv I. INTRODUCTION .......................................... II. PROJECT IDENTIFICATION, PREPARATION AND APPRAISAL ......................................... III. PROJECT IMPLEMENTATION ................................ 4 IV. ECONOMIC REEVALUATION ................................. 7 V. INSTITUTIONAL PERFORMANCE ............................. 8 VI. THE ASSOCIATION'S PERFORMANCE ......................... 8 VTII. CONCLUSION AND RECOMMENDATIONS ........................ 9 TABLES 1. List of Feeder Roads Completed under the Project by Agency . . 10 2. Appraisal Estimates and Actual Project Costs .......... 11 3. Schedule of Disbursements .. 12 ANNEX Borrower Comments ......................... I ........... 13 MAP *BRD 13221 This document has a restricted distribution and may be used by recipients only in t:le performance of their official duties. Its contents may not otherwise be disclosed without World Bank authorization. - 1 - REPUBLIC OF TOGO FEEDER ROADS PROJECT, CREDIT 810-TO PROJECT COMPLETION REPORT PREFACE This report presents a completion evaluation of the Feeder Roads Project financed by Credit 810-TO for US$5.8 m, which was approved on May 23 1978. The credit closing date was March 31, 1986 and the undisbursed part of the credit, amounting to US$15,748.94 was cancelled. The report was prepared by the Western Africa Region. In accordance with the revised procedures for project perfor- mance audit reporting, this Project Completion Report was read by the Operations Evaluation Department (OED) but the project was not audited by OED staff. Minor comments were received from the borrower in a letter dated September 21, 1987; these have been taken into account in the present report (see Annex). - ii - REPUBLIC OF TOGO FEEDER ROADS PROJECT, CREDIT 810-TO PROTECT COMPLETION REPORT BASIC DATA SHEETS KEY PROJECT DATA Original Actual or Item Expectation Current Estimate Total Project Cost (USS million) - 9.] 8.3 la Cost Over/Underrun (%) Government 2.5 2.6 TDA Credit Amount 5.8 5.8 Disbursed (end 12/8b) 5.8 5.7 Cancelled -- 0.02 /b Repaid Outstanding Completion of Physical Components (date) 12/82 06/86 Proportion Actually Completed by Expected Date (0%) 100 64 Economic Rate of Return (%) 18 17 CUMULATIVE ESTIMATED AND ACTUAL DISBURSEMENTS (Us$ million) FY79 FY80 FY81 FY82 FY83 FY84 FY85 FY86 FY87 Appraisal Estimate 2.25 3.14 4.06 5.06 5.80 -- -- -- lb Actual 0.76 2.41 2.97 3.62 4.41 4.89 5.22 5.56 5.78- Actual or % of Estimate 34 77 73 72 76 84 90 96 99 OTHER PROJECT DATA Actual or Itcm Original Amended Current Estimate First Mention in Files -- 03/76 Negotiations 04/78 04/78 Board Approval of the Credit 04/78 05/23/78 Credit Agreement Date 05/78 06/28/78 Effectiveness Date 09/28/78 03/02/79 Closing Date 06/30/83 03/31/84, 03/31/85 03/31/86 Borrower logolese Republic Executing Agency Ministry of Rural Works (MAR) Fiscal Year of the Borrower January 01 -- December 31 Follow-on Project Transport Rehabilitation Pro,iect /a Excludes USS0.8 m in taxes. /b USSI5,748.94 was cancelled effective December 31, 1986. MISSION DATA No. of Mission /d Item /c Mo./Year Persons Composttion - Man Weeks Date of Report Identitication 03/76 1 E 0.7 (Report not in files) Preparation 09/76 I E 1.0 09/30/76 Preparation Follow-up 02-03/77 1 E 0.4 03/16/77 Preparation Follow-up 05/77 1 H 1.0 (Report not in files) Appraisal 07/77 2 E,H 2.0 08/01/77 /e Post Appraisal 12/77 2 H,P 0.5 01/05/78 Post Negotiations 05/78 1 H 0.3 05/30/78 Supervision 1 09/78 1 H 0.4 09/19/78 Supervision 2 10/78 1 H 0.4 11/15/78 Supervision 3 01/79 1 H 0.7 02/01/79 Supervision 4 04/79 1 H 0.7 04/26/79 Supervision 5 07/79 1 H 0.7 07/29/79 Supervision 6 12/79 2 E,H 1.4 12/20/79 Supervision 7 04/80 1 H 0.7 05/06/80 Supervision 8 08/80 1 E 0.5 09/02/80 Supervision 9 10-11/80 2 2H 1.9 12/05/80 Supervision 10 01/81 2 E,H 1.1 02/02/81 Supervision 11 05/81 1 E 0.7 06/10/81 Supervision 12 07/81 1 E 0.7 08/20/81 Supervision 13 09/81 2 E,H 1.1 09/18/81 Supervision 14 11/81 2 E,H 1.4 11/18/81 Supervision 15 /f 03/82 4 E, 3H 2.5 04/13/82 Supervision 16 10/82 3 E, 2H 1.0 11/19/82 Supervision 17 02/83 2 E,H 1.0 03/24/83 Supervision 18 10-11/83 3 E,F,H 0.7 12/21/83 Supervision 19 03-04/84 2 E,H 0.5 05/10/84 Supervision 20 07-08/84 1 H 0.5 08/21/84 Supervision 21 10/84 3 E,F,H 0.7 12/05/84 Supervision 22 02-03/85 3 E,F,H 0.7 04/15/85 Supervision 23 06/85 1 H 0.3 07/29/85 Supervision 24 09/85 3 C(H),D,E 0.4 09/30/85 Supervision 25 02-03/86 2 C(H),E 0.3 03/27/86 Supervision 26 06/86 3 E,F,H 0.4 06/19/86 Supervision ?7 10/86 4 D,E,F,C(H) 1.0 12/15/86 /c ldentification to Supervision Mission No. 15 were carried out by RMWA staff. /d C = Consultant; D = Division or Deputy Chief; E = Economist; F = Financial Analyst; 11 = Highwav Engineer; P = Loan Officer/Economist /c Issues Paper. /f one highway engineer (project officer) joined from HQ. IV- - REPUBLIC OF TOGO FEEDER ROADS PROJECT, CREDIT 810-TO PROJECT COMPLETION REPORT EVALUATION SUMMARY 1. Project execution took three vears longer than the four years estimated at appraisal. During the "irst two vears, project imple- mentation was delayed by insufficient local funds, fuel shortages, and organizational difficulties. Progress improved with the establishment of the SNPR and the appointment of a competent director. In 1983 local funds dried up, but from 1984 to 1986, progress improved considerablv, despite the absence of consultants, with more local funds available and better management. Alm,st 65% of the feeder roads called for at ap- praisal were completed. The quality of construction was generally good (paras 3.01 and 3.09). 2. There is insufficient data available to recalculate a precise ERR, but a rough estimate indicates that it is about 17% which is slightly lower than the appraisal estimate of 18% (para 4.01). 3. One of the main objectives of the project was to establish an efficient institutional framework for planning, constructing and main- taining feeder roads. Some progress was made in this regard and part way through the project, the Government established a national director- ate (SNPR) to take over responsibility for feeder roads which had been delegated among separate ministries in the past. The Government's commitment to the project's goals improved towards the end of the pro- ject. However, more needs to be accomplished. The new national road organization which was established early in 1987 should be expanded into planning and maintenance of feeder roads and its management strengthened (paras 5.01-5.03). 4. In retrospect, project preparation efforts by the Association could have been more thorough; however, supervision was adequate (pa- ra 6.01). 5. The project provided useful lessons for the Association in preparing the next project. The Transport Rehabilitation Project, which was appraised in March 1987, contains a component for feeder roads. It includes specific provisions for expediting procurement, upgrading maintenance, carrying out more road construction by contract and im- proved budgeting procedures (para 7.03). REPUBLIC OF TOGO FEEDER ROADS PROJECT, CREDIT 810-TO PROJECT COMPLETION REPORT I. INTRODUCTION 1.01 The first Feeder Roads Project was the seventh Bank Group operation in Togo and was based in part on a study financed under the Second Highway Project. At the time of appraisal, in 1977, the agricul- ture sector employed 75% of the country's total work force and was responsible for nearly 40% of the countrv's total export earnings. About 4,000 km of the country's total of 5,000 km or feeder roads were serving on-going or planned agricultural projects. 1.02 The six earlier IDA credits were equally distributed between agricultural and highwav construction/maintenance projects. UJnder the Highway Maintenance and Second Highway Projects (Credit 131-TO, US$3.7 m, 1968 and Credit 450-TO, US$8.7 m, 1973, respectively), mainte- nance of the primary and secondary road network improved noticoably in the first half of the 1970s following reorganization and training of staff in the Public Works Department (DTP). Further improvements were expected from additional tec'.nical assistance and maintenance/workshop equipment provided under the Third Highway Project (Credit 693-TO, US$10.0 m, 1977). However, the administration and development of feeder roads was ill-defined and shared among several Government agencies without clear strategy for planning, construction, and maintenance. Consequently, the condition of the feeder roads deteriorated rapidly, and a n;:±ed was felt to introduce an institutionalized approach to improve and maintain them. This was originally expected to be done under the Third Highway Project. However, in earlv 1976, tAe Associa- tion decided to finance a separate Feeder Roads Project to focus more clearlv on the problems of rural roads and firmly establish an institu- t-on to deal with them. 1.03 The overall responsibility for execution of the Project was entrusted to the Ministry of Rural Wlorks (M!AR) through its Directorate of Rural Engineering (DGR). Because DGR lacked experience and equipment had to be provided before it could start work, part of the Droject was delegated to the Ministry of Equipment, Public Works, Housin;, Post and Telecommunications (MEPW). 1.04 This report is based on the information obtaine1 from the Appraisal and President's Reports, Bank files, the preliminary comple- tion report prepared by the consultant and a final report prepared bv the Borrower on the execution of tha project. It is also based on interviews witih Bank staff associated with the proiect and information gathered by the completion mission in June 1986. II. PROJECT IDENTIFICATION, PREPARATION AND APPRAISAL Identification and Preparation 2.01 A program for feeder road improvement', was identified in the early 1970s, and project preparation was initiated in 1976 under the Second Highway Project. The project was prepaied Jointly by MAR and DTP, assisted by two short-term consultants directly engaged by the Association. IDA concluded that the content and economic justification of the study were adequate, but that the cost estimates needed revision and the organizational arrangements for implementation needed to be better defined. These issues were taken up during the follow-up prepa- ration and appraisal/post appraisal missions. Project Appraisal 2.02 The project was appraised in July 1977 but there were still unresolved issues related to training, organizational arrangements, and financing of feeder road maintenance. A post-appraisal mission was sent in December 1977 to resolve these issues. The Issues Paper highlighted two major points: (a) DGR staff was expected to eventually take over the DTP's feeder roads functions on a permanent basis after com- pleting the training program, which was one of the principal project objectives. However, there was consid- erable risk of losing the engineers once trained as they would only receive between a third and a half of the salary for similar works in the private sector. Thus, it was recommended that IDA finance allowances for DGR staff under the project for the first two years of implementa- tion, which was expected to cost about $50,000 (at about US$120 per m-m). (b) Maintenance of the feeder road network, which was the responsibility of local authorities, ranged from poor to non-existent, due to lack of funds and proper organ- ization. Redress of this situation became one of the project's main objectives. 2.03 Negotiations were held in April 1978 and agreements were reached on criteria and procedures for selecting the roads for improve- ment under the project. In view of the poor state of the feeder roads, the Government agreed during negotiations to establish a separate Feeder Roads Unit (SRD) within DGR to carry out part of the Project works and to monitor the economic, social and engineering aspects of the project. Since DGR had little experience on feeder roads works, it was agreed that it would handle only 600 km of the total of 1000 km of feeder roads to be financed under the project. Work on the remaining 400 km was to be carried out under a contractual agreement with the MEPW through its Public Works Department (DTP). Signing of a contract to this effect -3 _ between MAR and MEPW was a condition of effectiveness of the Credit Agreement. Phvsical execution of the project was scheduled to commence in October 1978. 2.14 A post-negotiations mission was necessary in May 1978 to reach agreements on: establishing and staffing of the SRD; detailed arrange- ments for appointing consultants and acquisition of equipment; and the contract between MAR and METP. The Credit was approved on May 23, 1978 and the agreements were signed on June 28, 1978. The project was expected to be completed by December 1982, over a four-year implemen- tation period beginning in October 1978. Credit effectiveness was delayed by about five months beyond the expected date, mainly due to the Government's delay in providing local funds and in ratifying the Credit Agreement. The Credit was declared effective on March 2, 1979. Project Objectives ard Description 2.05 The main objectives of the project were to: (a) establish an efficient institutional framework for planning, developing and maintain- ing feeder roads; (b) train local staff to perform the above functions; and (c) construct and subsequently maintain 1,000 km of high priority feeder roads. 2.06 To meet these objectilres, the project consisted of: (a) a four-year program for the improvement and maintenance of about 1,000 km of feeder roads, including (i) purchase of equipment. spare parts and workshop tools; (ii) pur- chase of materials and supplies; and (iii) construction and repair of culverts and bridges by local contractors; (b) technical assistance, consisting of (i) about 77 m-m to establish a Feeder Road Unit (SRD) within DGR, to imple- ment the above program, and to train local staff of the unit in planning, implementing and monitoring feeder road improvement and maintenance; and (ii) about 10 m-m to improve the effectiveness of DTP's road brigades; and (c) short-term consultant services for studying a follow-up feeder road program. 2.07 Out of 4000 km of feeder roads servicing various ongoing and planned agricultural projects, 1000 km of roads were selected for rehabilitation and improvement. The work consisted of: (a) reshaping, (b) regravelling selected road sections and (c) building, repairing and reinforcing drainage structures. A firm work program for the first year was agreed by MAR for the works to be carried out by the SRD which was expected to maintain the feeder roads built under the project. 2.08 Institution building was one of the three objectives of the project. Technical assistance was to be provided to help DGR to (a) assume responsibilitv for defining the proiect's annual -4- construction, improvement and maintenance program; (b) prepare implemen- tation plans; (c) supervise and monitor the feeder roads program; and (d) graduallv assume responsibility for (i) determining appropriate technology, (ii) identifying agencies to maintain feeder roads; and (iii) preparing a maintenance program. Training was to be provided for staff at all levels in SRD. IIT. PROJECT IMPLEMENTATION Project Start-up 3.01 Start-up of the project, originally scheduled for late 1978, was delayed by about five months, mainly due to delays in ratification of the credit agreement and in making the local funding available. New office premises had to be constructed for SRD headquarters, but the location 20 km outside of Lome and the lack of telephone facilities throughout the project period made communications difficult. During the early stages of project implementation, progress was frequentlv delaved bv fuel shortages, underutilization of equipment, administrative delays because of cumbersome procedures required by MAR and inexperience at the DGR and SRD levels, Government interference at all levels of project implementation, and deviation of the work force to non-project works. Allocation of local funds was slow, mainly due to budgetary constraints which delayed implementatUon of the project for about one year. Also, frequent personnel changes at all levels resulted in lack of continuitv in the management of the project. Although DGR did not have sufficient equipment and trained staff, it formed three brigades rather than the two agreed during appraisal. The Government was later persuaded by IDA to revert to two brigades. 3.02 The project was also handicapped by poor financial management and accounting practices because of the lack of qualified accountants. Initially, proper accounts were not maintained and the books were not available to the DGR. Consequently, neither it nor IDA could properly monitor project expenditures; however, this was eventually remedied. Works Carried Out by the Feeder Roads Unit (SRD) 3.03 SRD brigades started work in Januarv 1980 after a delav of nearly 10 months, due to slow procurement of equipment and training. During the training period, the first 20 km of feeder roads work was carried out with rented equipment which turned out to be a high cost operation. Two roads selected according to the agreed on procedure were dropped from the first year construction program and replaced bv other roads designated by MAR, without approval of the Association. Due to the short length of many roads, the brigades had to be moved frequently from one construction site to another, resulting in a low monthly construction output. 3.04 The situation improved after the reorganization of MAR in Mav 1981. Project management enjoyed reasonable autonomy, which result- ed in increased efficiency and productivity. However, non-availability of local funds persisted and delayed work progress. Equipment mainte- nance was generally good and with the arrival of radio equipment, the brigades were able to communicate more effectivelv with headquarters. 3.05 Tn early 1982, a presidential decree changed SRD into a national service (Service Nationale des Pistes Rurales -- SNPR). A public works engineer was appointed as Director of SNPR in September of 198?. Overall, the SRD/SNPR built over 400 km of feeder roads, or two tlhirds of the roads assigned to it under the project. The accelerated progress made by the SNPR is attributed to its new director. He carried on for most of his tenure without the assistance of the consultant whose contract terminated at the end of 1983 (para 3.13). Later, the Govern- ment appointed an experienced road maintenance engineer to SRD which led to improved maintenance of feeder roads. 3.06 When local funds for the project were unavailable, in order to pay the wages of its equipment operators, drivers and laborers, SNPR carried out feeder roads construction works under contract with the Togolese Cotton Companv (SOTOCO), the implementing agency of the TDA-'inanced Second Agricultural Development Project (Cr. 1302-TO). During this period, SNPR built 126 km of feeder roads for SOTOCO. Audits of both projects did not find any indication of double counting of costs. Works Carried out by Public Works Department (DTP) Brigades 3.07 The improvement works by DTP began in early 1979 about as planned. The work progressed slowly at first due to dispersal of equipment and brigades over several sites and breakdowns of several key equipment units. The quality of works carried out on the first 25 km of roads was not fully satisfactory. Output and -ualicy gradually im- proved, and by August 1980, about 127 km roads had been completed, but it was still about half of what was expected at appraisal. Construction almost came to a standstill in September 1980 for about four months due to lack of fuel and other supplies caused by a shortage of funds in MAR and DTP. Work stoppages due to shortage of funds occurred repeatedly despite strong efforts by IDA to redress the situation. The final production by DTP at the time of credit closing was 195 km or almost half of the 400 km scheduled. Local Contractors 3.08 Two local contractors were hired by the SRD during the period preceding delivery of equipment to train operators and drivers on the job. They built 34 kilometers of roads in this manner. Some of the drainage works were awarded by SNPR to small local sub-contractors for a total amount of about US$1 m. Most of this work was completed satisfac- torily. -6- Overall Progress 3.09 Project execution took three years longer than the four years estimated at appraisal due to the problems outlined in para 3.01. From 1979/80, progress was slow during start-up with very little field work done. Tn 1981, modest progress was made, while in 1982 progress im- proved with the establishment of the SNPR and the appointment of a competent director. In 1983, local funds dried up, but from 1984-86, progress improved considerably with more local funds available, better management and no consultants. The three executing entities completed about 634 km of roads out of the 1,000 km estimated at the time of appraisal (Table 1). This is considered reasonable in the light of the difficulties encountered during project implementation. The quality of construction was generally good. Training 3.10 The training of equipment operators and drivers was an essen- tial requirement for successful project implementation. Training was first carried out by contractors until the equipment for the training center arrived. The training program went reasonably well and a large number of operators and mechanics were successfully trained. The program was less successful in training higher level staff for planning, development and maintenance. Project Cost 3.11 The total project cost was estimated at appraisal to be about US$8.3 m, net of taxes, of which 71% was in foreign exchange. IDA financed US$5.8 m, all of the foreign exchange cost except for mainte- nance and other local cost-, which the Government was expected to fi- nance. In retrospect, it appears that unit construction costs were substantially underestimated at appraisal, particularly the costs of rental equipment, and fuel and lubricants. Disbursements 3.12 The first extension of the closing date was made from June 30, 1983 to March 31, 1984 because of delays in credit effective- ness and initial project work. IDA agreed to a second extension of one year after the Government made available an amount of CFAF 100 million as counterpart funds. In late 1984, in view of the good performance of SNPR and the Government's difficult financial situation, the Association agreed to increase its rate of disbursement subject to certain condi- tions, including the appointment of a highway engineer to take charge of SNPR (para 3.05). Finally, following the Government's agreement to an audit provision and the appointment of an engineer to be responsible for feeder roads maintenance, a third extension of the closing date to March 31, 1986, was agreed to by the Association. Overall, the closing date was extended by almost three years mainly due to delays related to project implementation (para 3.01). A small balance of about US$15,800 was cancelled effective December 31, 1986. The Government's slow -7- administrative procedures for transmission of withdrawal requests to the Association sometimes delayed disbursement of funds as shown in Table 3. The project accounts have been satisfactorily audited. Consultant's Performance 3.13 The project originally provided for 87 m-m of technical assistance of which 77 m-m was for SRD and 10 m-m for DTP. Additional short-term services were provided for the preparation of a follow-up feeder road program. The technical assistance contract was signed in late 1978 for two years; however, due to delays noted above, it was extended to the end of 1983 for an additional 56 m-m. The consultant's performance was mixed, mainly due to the cumbersome procedures required by MAR. Their performance was also handicapped by internal problems of the firm. The consultants were less effective in providing the short-term services. IV. ECONOMIC REEVALUATION 4.01 The economic justification of the project at appraisal was based on lowering transport costs and reducing spoilage in the areas of the project roads, thus contributing toward the expansion of agricultur- al production. At that time, the ERR was estimated at about 18%. Although a comparable recalculation is not possible due to limited information on agricultural production and traffic, it is clear that the project generated increased agricultural surplus and transport. A 1983 traffic study indicated that traffic levels of some 3-4 vpd on old unimproved feeder roads had risen to about 33 vpd on the improved feeder roads. Similarly, some 4,000 kg of agricultural produce was transported dailv on the old unimproved feeder roads as compared with 8,500 kg on the improved roads. A comparison of six project feeder roads in 1983 and 1984 showed that average vehicle traffic increased further from about 33 to 47 vpd, and the average goods transported increased by almost two thirds per day; this increase may, in part, be due to a better harvest in 1984 than in 1983. While these data are too limited for a full economic reevaluation, they do show positive results and can be used to arrive at a rough estimate of the average rate of return of 17%. The estimated rate explained below, takes into account benefits from value added in agriculture, vehicle operating cost savings on base and generated (non agricultural) traffic. 4.02 The above estimate is based on (a) an average actual construc- tion cost (including technical assistance) of about CFAF 3.6 miliion per km with a residual value of 25% at the end of 10 years; (b) an average maintenance cost of CFAF 200,OOC per km with the project and CFAF 100,000 without; (c) an average value added of CFAF 30 per kg for an average incremental agricultural surplus of 7,000 kg per day during the harvest season (75 days p.a.) per feeder road of 30 km -- only 75% of this value added was actually attributed to the road investment; and (d) an average vehicle operating cost saving of CFAF 60 per km for normal road traffic (4 vpd) and CFAF 30 per km for generated non-agri- cultural traffic (30 vpd). Counting all incremental value added from agriculture would have increased the rate of return to 22% while taking only two thirds would have reduced it to 15%. V. INSTITUTIONAL PERFORMANCE 5.01 One of the main objectives of the project was to establish an efficient institutional framework for planning, constructing and main- taining feeder roads. As noted in para 1.02, while the feeder roads component waa originally intended to be included under the Third Highway Project, IDA decided to finance a separate Feeder Roads Project so that an institution with integrated responsibilities for feeder roads could be developed. At first, the SRD lacked technical competence and a commitment from the Government. After it was initially set up in a small office, it was moved to a newly constructed facility lacking telephone services. Little or no authority was delegated to the project level by MAR, especially during the first two years of project implemen- tation. Also, there were frictions at times between DGR, SRD and the technical assistance staff. When, in mid-1982, the Government estab- lished SNPR, IDA supported it on the condition that the Government appoint a technically competent engineer as the Director. This was done, and SNPR satisfactorily implsmented the remainder of the project for much of the time without technical assistance. 5.02 SNPR was established as a iieans of improving the performance in executing the project, and it was successful in this regard. Despite the earlier problems in execution, the project was concluded on a strong note as a result of the Government's willingness to take the steps necessary to strengthen the feeder road organization and achieve the project's goal. 5.03 Early in 1987, after the project was completed, the Government abolished MAR and provisionally re-attached SNPR to the MEPW which is now responsible for maintenance and construction of all types of roads. This organization should be expanded into planning and maintenance of feeder roads, and its management strengthened. VI. THE ASSOCIATION'S PERFORMANCE 6.01 In retrospect, project preparation efforts could have been more thorough, particularly as regards assessment of the capacity of existing organizations to execute the project. Supervision was ade- quate, and IDA made substantial efforts to ensure successful implementa- tion of the project. During the very early stages of project implemen- tation, IDA staff considered the possibility of suspension of disburse- ments and declaring the project a problem project, but shortly thereaf- ter, progress improved. VII. CONCLUSION AND RECOMMENDATIONS 7.01 As noted above, the preparatory studies during project prepa- ration could have been more thoroughly carried out. Despite shortage of counterpart funds, organizational difficulties, lack of Government commitment and higher than expected costs, almost 65% of the 1,000 km of feeder roads called for at appraisal were built. The quality of con- struction, in general, was good. Although not fully realized, progress was made on implementing the institutional objectives, particularly towards the end of the project. 7.02 While the economic data available is too limited to recalcu- late a precise ERR, a rough estimate indicates that it is about 17%, or somewhat lower than the appraisal estimate of 18%. Studies show that traffic on the feeder roads picked up considerably after they were improved. 7.03 The planning and maintenance activities of the recently reorganized DTP (para 5.03) should be further expanded and strengthened. This will be followed up under a Transport Rehabilitation Project which was appraised in March 1987. This project builds on the lessons learned under earlier projects including the need: (a) to improve procurement procedures; (b) to carry out more work by contract rather than by force account; (c) to increase the annual budgets for routine and periodic maintenance; and (d) to open a revolving fund and maintain a minimum balance, - 10- REPUBLIC OF TOGO iFFFD8 R0AL: FIIOHCT, .tDlt ill)-TV : f d.r heAdt -l -Iet.d u-d.- 'ht Pt9l4 be A*4^$- - S {2 NAZI-1eS RAGEU1 - 1.5 v W=~~~~~~~~~~~ , o ., .l_ i 11.! 1 - - Ol DGOL - U I it's - - ?OTAL RECIO SAVAS 41.*1 15 U5 5- loft ~~9 mmok4Ih - TA*& 1 - - W M 13 1W I - o 9 _ _ _ sLaj - in, 21,5 - S2lb' 'A WA2 - KES1 - UIA - 17 SkSW 17 KAi - i IOCUPI 29 - _ 23 vi 5 - a w- G Z . A1 I 23 EWDrt -n 1 - - - TOTAL hE1I (M 17D 22 - %2 hbALA 2D DWGA - mm1 - 21 - - 4iOD 21 Z h - P&SM - I - - IS 1 t 1'A 4 - - - 10TIM2A _ A -FAdVO a, 27 fl - alfl - 19 _ 19 TGEBUE- KCAZ-POO 31 - - 10T/LKM I0CM9LE 35 85,5 120,5 PLATEU. an 28a W SS2 Nr I - llPESSI - 12 SA _ OJ-M8' 23 - - - SA% WM J- ISATI - 22 - - I) LEI - 13' 14 _ _ 3ts AYAE - KAK'* 23,5 4 AYSlY .14GM Id - - - 124 9747I.8E 8444 18 - - 32h 934D' y CT 1' 34 ¶f'l' - - ,,A t 7. PLA) '2b.s 1 3. 1I.,5 ZIO 48 ItDA- - FL. n O t * is Rw- ax - 24 - 41 ALOa. - I*D11 (It) Ii . 4 50 ADM - A_MMM _ _ 51 LO.K - {81E - (921l94 - _ U _ 44 A_EQM - I_WI- FL. ZIO 35 GOA 40 DAOXr - SFLERA - 10"k FE-,;:N nIl-f 82 34 Se "5 - 31.12.5 405 195 34 6b WAPTR, May 1987 REPUBLIC OF TOGO FEEDER ROADS PROJECT (CREDIT 810-iO) PROJECT COMPLETION REPORT Appraisal Estimates and Actual Project Costs (Current Prices) Item Appraisal Estimate ta Actual Cost Local Foreign Total Local Foreign Total Foreign Total Cost CFAF Million as S of As S of ----------------------------- USS Equivalent ------------------------- 1. Equipment, Spare Parts, Katerials and Supplies 217 2.69 3.58 Equipment Purchase 34 1.49 1.63 0.185 1.878 2.063/b q9 126 Equipment Rental 3 0.04 0.05 0.052 0.195 0.247 79 494 Spare Parts 16 0.65 0.72 0.068 0.613 0.682 90 95 Fuel and Lubrtcants 20 0.29 0.37 0.152 0.573 0.735 78 198 Local Staff 117 -- 0.48 0.697 -- 0.697 0 145 Materials 27 0.22 0.33 0.001 -- 0.001 0 .3 2. Civil Works by Contract 197 1.55 2.35 (a) Contracts by PWD: (i) improvement 161 1.35 2.01 0.250 0.507 0.757/b 67 37 (ii) maintenance 8 0.03 0.06 -- -- -- -- -- (b) Contracts by Contractors 13 0.11 0.16 0.311 0.694 1.005 69 626 (c) Operating Costs for Maintenance by 15 0.06 0.12 -- -- -- -- -- DGR 3. Technical Assistance and Studies 33 0.50 0.64 Technical Assistance 31 0.47 0.60 0.253 0.721 0.974 74 162 Studies 2 0.03 0.04 0.010 0.032 0.042 75 105 4. Contingencies 145 1.14 1.73 Physical 41 0.40 0.57 0.076 0.163 0.739 68 4? Price 104 0.74 1.16 -- -- TOTAL 592 5.88 8.30 2.066 5.376 7.42 la Net of taxes. L lb PWD has benefitted from new equipment procured out of the credit for an amount of USSO.405 million as a partial payment for works executed. WAPTR May 1987 Vs ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ - o z;I '4,~~~~~ ' _ 4' . :t- .0 .,0 .~ 500-e - iI' ol,, .a ri b , ! ! ,i la = gE 2-4 ' I- ' _-:> U - - - - - - - - - - en.. S , - a S On:.- .---in Or,.,.'. .--n- .--- - - - - - O-L: W~~~~~~S St I S. S. W a S. W ' -13 - ANNEX BORROWER COKMENTS Page 1 of 2 88Fo207 October i, 1987 French (Togo) OED TS:mec Togolese Republic Mitiistry ot Equipment and of Posts and Telecommunications National Feeder Roads Service Feeder Roads Project No. 66/SNPR/PRD Lome, September 21, 1987 Mr. Graham Donaldson Division Chief, Operations Evaluation Department World Bank Washington, D.C. SUBJECT: Completion Report on Feeder koads Project (Credit 810-TO) Dear Mr. Donaldson: The National Feeder Roads Service has read the Completion Report on the Feeder Roads Project with interest and is gratified to note the good overall results notwithstanding the initial difficulties. This success, due particularly to the judicious selection of the present managers, justifies the existence of the service. Like any human activity, the work of the National Feeder Roads Service is perfectible, and the service undertakes to do better still if it is provided with the means. We accordingly request the World Bank to reaffirm its confidence in us by financing the second phase of the project. Despite our satisfaction with the report as a whole, we have the following comments: - There is a typographic error on page ii under OTHER PROJECT DATA: the Effectiveness Date of the Credit Agreement is 06/28/78 and not 06/28/86. - In paragraph 3.01, line 10, the word "inexperience" shoild be used instead of the phrase "lack of technical expertise." - It would be desirable to reword paragraph 5.03, since a.ter the abolition of the Ministry of Rural Works, the National Feeder Roads Service was provisionally attached to the Ministry of Equipment and of Posts and Telecommunications and not merged with the Public Works Department. s/K. Pedanou Acting Director National Feeder Roads Service Copy to World Bank Resident Representative in Togo for information /= ~~~~~- 14 - ANIW f /AK T& gPag2 of 2 MINISTERE DE L'EQUIPEMENT REPUBLIOUE TOGOLAISE ET DES POSTES ET TELECOMMUNICATIONS UION. PAlX - amoDAPAr Servlce National des Plteo Rurile PROJET ROUTES DE DES#ERTE LOME, 21 SEPT. 1987 N° . 4 ....... /SNPR/PRD a4. £ih tEe4% p.1. a -//'aa Li 0 s Rapport dtSobyuzot CID DIVISION DIPAMUNT Ds du Projet Routes de Demoerto L'UVALUA?ION. (Cr4dit 810/TO) - IU9 IN1NN - Le Service National des Pistas Ruralex a lu avec intirSt le rappor dtachbve- onut du Projet Routes do Desserts et ae rejouit des bes rdaultate &'ensemble mlgrd leas difficultds du ddbut. Ce succbs dt surtout au choix judicieux dos actuels respoasablee, justifie 1l raison d4tro du service. Comse toute activit6 husaino, ltoeuvre du Service National dem Pieteo Rurales set perfectible, ot ceo dernier *'engoge a mioux fair* encore si lea soysna lui moat doanna. Aummi deuandone-nous a la Banque Xondiale de nous rditdrer ma confiance pour le financesent de la seconde phase du projet. Kalgrd notre matixfaction our l9ensemble du rapport, noun rolovone lea obser- vationx quo voiai - il y a une orreur do frappe k la page ii danJ la rubrique AUTRIS DOuNNU SUR LE PROJET : la date effective do l'Aoord de Cridit sot 28-06-78 *t non 28-06-86. - Au paragraphe 3.01, 10b lignu & la page 4. Utilimer le not inexpdrience au lieu de manque de coupdtonces techniques. - I1 serait mouhaitable de reformuler le paragramph 5.03 & la page 9 car aprbm la dissolution du Ninit0re ad l'hmdnageomnt Rural, le Service National deo Pimtes Ruralso a At provisoirmeat rattachd an Xiniatbre do l'I1qu$ipennt et doe Postes et fflicommunications et non intdgrd I la Direction des Travaux Publicc,/- Copio au Rsprioentant porxanent _ de la Banque Xondiale au Togo . -\&~ pour information. _ -- l " Si;]figiZ he s .D A N O U -.--. B U R K I N A F A S IUIIAIa * ( :1. Moarrdo, ( 1M ... d- g- -". . - DA 1_';PAON Yarl .-'yCSA .It ,+ (n XiA ( R,,a1,largo 7 IgollorrId 1 svl, ( ,rN1/ COl J _ '~ Ragaa \>s Nalbeor J 11,, h Rorkossa -.TchoIlla ! j L lI \(aan _O NOU ___ _ -< Namon, \ -0 - o T ddIA kP- * 'Nairnnapon I , '.ac Masdre10 iKaIcI-InnmR0 f) ,' 5 GergKd ioy' , *5 1501009$9nb -- a- 0 ----r ) Babsarl ' ' i'R llr .,,, ., ,,, ARA go Z i Gerlqrl~~ SO K O DjE ohsrls7 Paso 0i A/enr IKanrbmhe i - FEEDER~~~~~~~ ROD PROJEC ~7ynr (1 'afii TOGO FEEDER ROADS PROJECT ) r f FEEDER ROADS PROJECT) f7 J FEEDER ROADS TO BE CONSTRUCTED BY 'I DEPARTMENT OF RURAL DEVELOPMENT YegaO,0 '| MINISTRYOFPUBLICWORKS j 1 o K _ - ---.SR.C.C OR OTHER AGENCIES DeqanpIO T,.raa (5! OPAT 119761771 \(1111.110 * * * SOTOCO @ SOTOCO REGIONAL HEAOUQARTERS _. 1977 MAINTENANCE PROGRAM- fv M Kouoh L BITUM NOUS ROADS RBdar r ' Fq g EARTH ROADS 0 N KPA; AI r i 1rC 1977 CONSTRUCTION PROGRAM , BKpeI BerlAu 0 *0 1,0o1 | . . - - - CITUMINO1IS ROADS . O i -- EARTH ROADS T TO R I RURAL ROADS AND TRACKS TO BE IMPROVED OR OPENED ORaRara Iri I ....... *IMPROVED RURAL ROADS AND TRACKS 07 1 IMPORTANT MARKETS U 6RIDGES1DBECONSTRUCTEO D 51 I Not# * f lrre --ECONOMIC REGIONS g'1>t.y' -----IRAILWAYS i.5 -a RIVERS C '' Vdd p l L I . . I . . . ' I I . I D\Xa7/7 \ 3