The World Bank Tanzania Transport Integration Project (P165660) Project Information Document (PID) Appraisal Stage | Date Prepared/Updated: 21-Mar-2022 | Report No: PIDISDSA24038 Mar 10, 2022 Page 1 of 17 The World Bank Tanzania Transport Integration Project (P165660) BASIC INFORMATION OPS_TABLE_BASIC_DATA A. Basic Project Data Country Project ID Project Name Parent Project ID (if any) Tanzania P165660 Tanzania Transport Integration Project Region Estimated Appraisal Date Estimated Board Date Practice Area (Lead) AFRICA EAST 28-Mar-2022 23-May-2022 Transport Financing Instrument Borrower(s) Implementing Agency Investment Project Financing United Republic of Tanzania National Roads Tanzania Agency (TANROADS) Proposed Development Objective(s) The PDO is to improve the safety, climate resilience and capacity of key road corridors and regional airports, and improve the capacity of relevant transport sector institutions to plan for and manage the sector. Components Upgrading and Rehabilitation of Trunk and Regional Roads Upgrading and Rehabilitation of Regional Airports Institutional Support and Capacity Building in the Transport Sector Contingent Emergency Response PROJECT FINANCING DATA (US$, Millions) SUMMARY -NewFin1 Total Project Cost 673.60 Total Financing 673.60 of which IBRD/IDA 550.00 Financing Gap 0.00 DETAILS -NewFinEnh1 World Bank Group Financing International Development Association (IDA) 550.00 IDA Credit 550.00 Mar 10, 2022 Page 2 of 17 The World Bank Tanzania Transport Integration Project (P165660) Non-World Bank Group Financing Counterpart Funding 123.60 Borrower/Recipient 123.60 Environmental and Social Risk Classification Substantial Decision The review did authorize the team to appraise and negotiate Other Decision (as needed) B. Introduction and Context Country Context 1. Over the last decade, despite rapid population growth, Tanzania has achieved relatively strong economic growth and declining poverty rates. The population of Tanzania is about 54 million, of which about a third live in urban areas. With an area of 947,000 square kilometer, Tanzania is a somewhat sparsely populated country with a density of about 57 persons per square kilometer. However, its population at the current growth rate of 2.8 percent is projected to reach 100 million by 2040, posing significant challenges for job creation. Tanzania’s 2019 Gross Domestic Product (GDP) was US$61 billion and has grown at an average rate of 5.8 percent since 2011. This is markedly higher than the Sub-Saharan Africa (SSA) average of 2.7 percent. Tanzania’s per capita income in 2020 was about US$1,075. The poverty rate declined from 34 percent in 2007 to 27 percent in 2020, with gains heavily concentrated in urban areas. Jobs in the public and private sectors are big contributors to poverty reduction in Dar es Salaam, followed by non-farm/agri-businesses. Yet, poverty is still high in absolute terms (16.2 million people as of 2020) mainly due to population growth, and the poverty rate has increased during the COVID-19 pandemic, with the long-term impacts of the pandemic still uncertain.1 Signs are emerging that growth has been pro-poor, with the incomes of poorer households rising faster than those of richer households. Driving this reduction in poverty have been engagements in commercial agriculture and non-farm activities, ownership of communication and transport equipment and rural access to roads and markets. 2. Much of Tanzania’s development success in the past decade was predicated on three critical advantages – a strategic maritime location, rich and diverse natural resources, and socio-political stability - with tourism rapidly growing as a fourth. With its 1,424 kilometers of Indian Ocean coastline, Tanzania serves as a gateway to six of its eight bordering countries: Burundi, Rwanda, Uganda, Democratic Republic of Congo (DRC), Zambia and Malawi which, except DRC are landlocked. Tanzania is also connected by navigable waters to its neighbors through Lake Victoria, Lake Tanganyika, and Lake Nyasa. Tanzania is thus well-situated to exploit its geographical position and develop as a regional hub for South-South Trade. Four main transport corridors - the Central, Dar es Salaam, Mtwara and Tanga corridors - link Tanzanian ports with the bordering countries. These corridors run 1 Socioeconomic data sourced from the World Bank’s World Development Indicators and Tanzania Economic Update: Transforming Tourism – Toward a Sustainable, Resilient, and Inclusive Sector, July 2021 Mar 10, 2022 Page 3 of 17 The World Bank Tanzania Transport Integration Project (P165660) through Tanzania’s hinterland, creating potential drivers for growth and development. In addition to its potential as a transit country, Tanzania boasts a hinterland which is endowed with over 44 million hectares of fertile land, of which only 30 percent is currently cultivated, and a rich deposit of minerals and gas which have the potential to drive Tanzania’s growth for the foreseeable future. The Rural Access Index (RAI) is estimated at 24.6 percent, with about 33 million rural residents with poor access to an all-season road.2 Tanzania’s internationally renowned tourist attractions, which now contribute about 25 percent of the country’s foreign earnings, have significant potential for growth (noting the current uncertainty of travel considering the COVID-19 pandemic). Moreover, its political stability has formed a solid base for its sustained economic performance. 3. To realize national development goals including job creation, these advantages will need to be leveraged further, and more sustainably. In this respect, three mutually reinforcing pathways that will foster inclusive and sustainable job-creating growth are critical: (1) spatial transformation – leveraging geographic advantages and maximizing benefits from spatial integration, (2) structural transformation – leveraging natural assets and capturing latent comparative advantage to create more jobs and agglomeration; and (3) institutional transformation – upgrading the strength and quality of public institutions.3 4. The Tanzanian economy remains spatially Figure 1: Number of Firms by District fragmented, bottlenecked by scattered growth clusters, underutilized natural assets, and friction in connecting to global and regional markets. The population in Dar es Salaam, the primary city, already exceeds 5 million and will double by 2030. Secondary cities, such as Mwanza, Arusha, Dodoma, Iringa, and Mbeya are growing rapidly. As highlighted by Figure 1, these cities and other growth clusters are spread across the country, with poor connectivity between them. Similarly, while the tourism industry has flourished in recent decades, it has remained concentrated at certain sites, with many national parks difficult to access and underutilized. In 2019,4 Ngorongoro Crater, Stone Town in Zanzibar, Serengeti National Park, and Tarangire National Park were the 4 most frequently visited tourist attractions, each drawing at least 10% of all tourists. Except for Stone Town, these sites all highlight both the importance of the country’s wildlife-based tourism industry, and the heavy concentration of such tourists in the Northern portions of the country, on the so called “Northern Circuit�. Sites in the other areas of the country, such as Ruaha National Park in the center of the country, draw far fewer visitors, at least partially due to poor infrastructure and difficult access. Agriculture and other industries are also hampered by poor connectivity to markets. Although Tanzania has developed the capacity to support transit traffic linking its neighbors together and with global markets, costs remain high, and delays are frequent. 2 World Bank. (2016). “Measuring Rural Access: Using New Technologies.� 3 World Bank-Tanzania: Country Partnership Framework for the Period (FY2018-FY2022). 4 Pre-COVID-19 statistics are referenced due to the sharp decline in tourism during the pandemic and likely return to pre- pandemic levels following the end of the crisis. Mar 10, 2022 Page 4 of 17 The World Bank Tanzania Transport Integration Project (P165660) 5. Climate change is leading to a growing number of natural hazard events that are affecting Tanzania’s aspirations for sustained economic growth, increased regional integration, and overall sustainable development. Tanzania is exposed to climate change impacts associated with extreme weather events, increased variation in rainfall and temperature and frequent and prolonged droughts, riverine and urban flooding.5 Trend analysis shows that Tanzania is already experiencing an increase in average maximum temperature and an increase in drying areas has been observed in parts of the northeast and much of southern Tanzania. A considerable proportion (about 70 percent) of natural disasters in Tanzania are climate change related and are linked to recurrent droughts and floods. Climate projections indicate continued future warming and a rainfall decrease during the dry seasons and an increase during wet seasons, further increasing the risks of droughts and flooding.6 In the coastal areas, Tanzania is also vulnerable to the impacts from sea-level rise, storm surges and coastal flooding. Geohazard risks and other natural hazards present in Tanzania are volcano eruption, earthquake, landslides, wildfires. There have been advancements in addressing gender issues at the national level in Tanzania, but gender gaps remain. While Tanzania recently has high gender parity throughout most of its educational system, gender gap in enrollment is wider in some regions and widens as girls reach upper secondary. Enrolment in higher learning institutions nationwide is about 4 percent (of which 43 percent were female) which is low compared to labor market needs, and it is one of the lowest tertiary education rates in Sub-Saharan Africa.7 The total fertility rate in Tanzania is high at 4.8 births per woman and is partially driven by teenage fertility rate. Some of the drivers of this trend are low educational attainment, low reproductive agency, and early marriage. The 2015–2016 Tanzania Demographic and Health Survey and Malaria Indicator Survey (2015–2016) revealed that 39.5 percent of women, ages 15–49 years, have experienced one or more acts of physical violence since age 15; rural women are more likely to experience any form of physical violence (41.8 percent) than urban women (35.5 percent). Sectoral and Institutional Context 5 Think Hazard consulted on 1st March 2022. URL: https://thinkhazard.org/en/report/257-tanzania 6Tanzania Nationally Determined Contribution, July 2021. URL: https://www4.unfccc.int/sites/ndcstaging/PublishedDocuments/United%20Republic%20of%20Tanzania%20First%20NDC/TANZ ANIA_NDC_SUBMISSION_30%20JULY%202021.pdf 7 World Bank 2022, Gender Assessment of Mainland Tanzania and Zanzibar Mar 10, 2022 Page 5 of 17 The World Bank Tanzania Transport Integration Project (P165660) 6. Developing and integrating the country’s Figure 2: Tanzania Core Transport Network transport infrastructure will be fundamental to its spatial transformation. Tanzania’s transport network includes road, rail, air, lake, and maritime routes which are not yet fully integrated. As outlined in Figure 2, these assets cross the country, providing the beginnings of an integrated network, with roads and rail linking the country’s hinterlands with its cities, its ports feeding trade corridors moving goods further inland and to its neighboring countries, and its airports facilitating access for tourists, business customers and government officials to more remote regions. Significant bottlenecks remain, however, with the capacity and condition of many of these linkages restricting the movement of people and goods and serving to restrict further development. 7. The road network remains the main in-country transport connectivity between the maritime ports, urban centers, and the landlocked neighboring countries. Road transport is thus the major mode of transport and carries over 90 percent of passengers and over 75 percent of the freight traffic in Tanzania. The Tanzania National Roads Agency (TANROADS), under the Ministry of Works, Transport and Communication (MoWTC), is responsible for managing the trunk and regional road networks of 36,258 km, including 12,222 km trunk roads of which about 85 percent are paved, and 24,306 km regional roads of which about 6 percent are paved roads. In addition, there are about 144,429 km of feeder, district and urban roads which are the responsibilities of the newly formed Tanzania Rural and Urban Roads Agency (TARURA), a government agency under the President’s Office of Regional Administration and Local Government (PO-RALG). The percentage of roads in good or fair condition declines across the network depending on their status, ranging from 93 percent for paved trunk roads to 56 percent for the classified local roads. Road safety and overloading are key road transport issues that require continuous attention, although there are weigh bridges installed on most of the trunk roads to preserve investments in the road assets. 8. The civil aviation sector is a key facilitator for tourism, but it is at an early stage of development with significant potential for growth. Air passenger traffic volumes increased rapidly over the decade prior to the COVID-19 pandemic (from 200,000 passengers per year in 2008 to nearly 1.5 million in 2018).8 Statistic data from Tanzania Airports Authority (TAA) indicates that there was a decrease in general air cargo from 28,650 tons in 2012 to 19,581 tons in 2019 but that number slightly started to increase again to 21,775 tons in 2021. Of that, the domestic cargo decreased from around 3,500 tons in 2012 to 2,000 tons in 2017 but the figure bounced back to 3,500 tons in 2021. Tanzania is served by several international airlines primarily using three international airports.9 Three mainline domestic air carriers10 provide scheduled services and a considerable number of small third level domestic air carriers provide scheduled and non-scheduled domestic feeder services into the regional 8 International Civil Aviation Organization, Civil Aviation Statistics of the World and ICAO staff estimates. 9 Namely Julius Nyerere International Airport (JNIA) and Kilimanjaro International Airport (KIA) in the mainland, and Abeid Aman Karume International Airport (AAKIA) in Zanzibar 10 ATCL, Prevision Air, Flight Link Mar 10, 2022 Page 6 of 17 The World Bank Tanzania Transport Integration Project (P165660) centers and the interior of the country. In general, there are about 39 commercial operators and 26 private operators. As people’s per capita income in Tanzania increases, the demand for air transport is also likely to continue increasing vigorously. Currently, the regional airports do not have sufficient capacity to accommodate larger airplanes and handle many passengers. The lack of airport infrastructure is a constraint to unlock economic potential in the local economies, especially those which would benefit from growing traffic to the currently underutilized national parks. 9. The current state of most airport infrastructure in the country is poor. The air transport infrastructure comprises over 300 airports and air strips, of which 58 are managed by TAA. Except for the three international and 15 other major domestic airports (6 main regional and 9 secondary regional), which have paved runways, all other airports have gravel and grass runways. Data from TAA shows that number of aircraft movements at the airports managed by TAA reduced from 152,033 in 2012 to 140,810 in 2019 and that could be attributed among others to the deteriorated conditions of the airports, while the rapid reduction of the traffic to 73,364 in 2020 would appear to be linked to the COVID 19 pandemic. The latest traffic data indicates an increased aircraft movement of about 30% to 93,297.2 in year 2021. The trend observed in the number of passengers passing through the TAA airports is showing a different trend. In 2012 the number of passengers recorded was 2,895,869 while in 2019 the number recorded was 3,502,846, The effect of the pandemic contributed to the rapid drop of passenger movements to 1,794,944 as recorded in 2020. The latest data received from TAA indicates an increase of 34% to 2,405,790 in 2021. The Tanzania Civil Aviation Master Plan (CAMP), which was prepared in 2015 under financing from the World Bank Transport Sector Support Project (TSSP), identified priority facilities and physical systems to meet forecasted air travel and transport demands by the year 2033 along with organizational and institutional reforms that will lead to a sustainable management of the facilities and systems. 10. Building an integrated freight transport system is critical to meet the anticipated quadrupling of transport demand over a 20 years’ period. The Government of Tanzania (GoT), with support of the Japanese International Co-operation Agency (JICA), completed in 2013 the Comprehensive Transport and Trade System Development Master Plan in the United Republic of Tanzania: Building an Integrated Freight Transport System. Important elements of the plan were: (i) the emergence of the Dar es Salaam metropolitan region as the hub of the national economy and the gateway to overseas; (ii) intensive resource-based development, particularly in the Southern Agricultural Corridor and energy/mineral development in the Mtwara region; (iii) development of the Central Corridor, not only for international access but also as a major chain of domestic distribution and processing; and (iv) cross-border economic development in specific border areas. Although Tanzania’s policy environment has continued to advance since the preparation of this master plan, these key elements remain priorities for the government and its development of trade and transport facilitation. 11. The Tanzanian maritime ports of Dar Es Salaam, Tanga and Mtwara are vital international gateways and primary links to global markets for its landlocked neighbors as well as the Tanzanian hinterland. Currently, Dar Es Salaam port handles some 95 percent of the international maritime traffic, with the remainder handled by the other two. The long-term competitiveness of the ports, to serve markets in Tanzania’s hinterland and its landlocked neighbors, depends not only on the capacities and efficiencies of cargo handling, transport, and logistics services, but also on the quality of inland connections with these ports, with improved road connectivity allowing the country to take advantage of its spatial edge. Mar 10, 2022 Page 7 of 17 The World Bank Tanzania Transport Integration Project (P165660) 12. Recognizing the importance of spatial integration to its development, Tanzania is making progress in improving the interconnectivity of its transport systems. Under its previous Five-Year Development Plan (FYDP II) the GoT constructed more than 3,500 km of paved roads, with an additional 1,300 km under construction. 12 large bridges were completed across the country, with another 5 under construction. A new standard gage railway was launched, with rehabilitation of the existing meter gage rail ongoing in parallel. The ports in Dar es Salaam, Tanga and Mtwara are being rehabilitated and expanded, along with lake ports on Lake Tanganyika, Lake Victoria, and Lake Nyasa. Rehabilitation and expansion of international and domestic airports has begun to facilitate the use of larger aircraft and expand the national aviation network, however significant work remains, with most regional airports undersized, in poor condition, and suffering from significant safety and security challenges. 13. The development and further integration of the transport sector and its institutions is guided by Tanzania’s National Transport Policy (NTP).11 Updated in October 2017, the mission of the NTP, is to ‘develop safe, reliable, effective, efficient and fully integrated transport systems which will best meet the needs of travel and transport at improving levels of service at lower costs in a manner, which supports government strategies for socio-economic development, whilst being economically sustainable’. The NTP covers policy-related issues of climate change, gender, safety, and security, and aims at maximizing the development impact of transport infrastructure by unleashing the comparative advantage of Tanzania as a transit country. The NTP implementation is outlined in the National Transport Policy Implementation Strategy which considers the strategic directions and aligns them with the business plans of various executive agencies and authorities within the medium-term expenditure framework as outlined in GoT’s Transport Sector Investment Program (TSIP)12 recommendations. 14. The World Bank has been an important partner in this effort, financing projects supporting rural and trunk roads, ports, rail, and airport development. Starting at the ports and working inland, these projects have contributed to the vision of a spatially integrated Tanzania. The ongoing Dar es Salaam Maritime Gateway Project (P150496) is financing the rehabilitation and expansion of the Port of Dar es Salaam. Several projects have supported the rehabilitation of bottlenecks along key trade corridors, including the Southern Africa Trade and Transport Facilitation Program – APL1 (P120370) which addressed a key segment of the Dar es Salaam corridor, and the Tanzania Transport Sector Support Project (P055120) which rehabilitated an important link on the route between the population centers of Dar es Salaam and Arusha, and then onward towards the Serengeti and other National Parks of the Northern Circuit. The Tanzania Transport Sector Support Project also contributed to the expansion of the aviation sector, not only financing the development of CAMP, but supporting the rehabilitation and expansion of regional airports in Bukoba, Tabora, and Kigoma, as well as the international airport in Zanzibar. In the rail sector, the Tanzania Intermodal and Rail Development Project (P127241) is supporting the improvement of the meter gauge rail between Dar es Salaam and Isaka. Providing linkages from these corridors to the rest of the hinterland, the ongoing Tanzania Roads to Inclusion and Socioeconomic Opportunities Project (P164920) is supporting the development of rural roads and local access. Recognizing the key role of spatial integration in Tanzania’s development, many other development partners have also supported Tanzania in this effort, including the African Development Bank, the Danish International Development Agency, and the United Kingdom (through the Foreign, Commonwealth & Development Office and its predecessor, the Department for International Development). See Figure 3 for a map of World Bank financed transport infrastructure investments. 11 The United Republic of Tanzania, Ministry of Works, Transport and Communications, National Transport Policy, October 2017 12 10-Year Transport Sector Investment Program (TSIP) Phase 2 (FY2012/13 – FY2016/17) Mar 10, 2022 Page 8 of 17 The World Bank Tanzania Transport Integration Project (P165660) However, despite this progress, transport integration remains a key bottleneck for growth and an opportunity to unlock further development, with an extensive road maintenance and rehabilitation backlog. Figure 3: World Bank Transport Sector Portfolio 15. The transport sector is vulnerable to the impacts of climate change and natural hazards. The natural hazard that presents the highest risk to the transport sector is flooding. Flooding not only damages transport infrastructure but also causes disruptions in the transport network, disconnecting people from essential services and markets, causing delays, and negative social and economic impacts. These risks are predicted to increase in the future, with climate change increasing the frequency and intensity of catastrophic natural hazard events. A systemic climate vulnerability assessment of multi-modal transport networks was conducted for Tanzania which showed that with climate change, greater lengths of road will be exposed to extreme fluvial flooding. Climate change scenarios have been applied to flood hazard simulation model outputs to represent future fluvial flood hazard in 2030. The analysis estimated that the worst-case transport network disruption in Tanzania has the potential to cause damages of USD 1.4 million per day at present and this would potentially increase to USD 2.5 million per day by 2030.13 13Pant, R., Koks, E.E., Russell, T., & Hall, J.W. (2018). Transport Risks Analysis for The United Republic of Tanzania – Systemic vulnerability assessment of multi-modal transport networks. Final Report Draft, Oxford Infrastructure Analytics Ltd., Oxford, UK. URL: Mar 10, 2022 Page 9 of 17 The World Bank Tanzania Transport Integration Project (P165660) 16. Incorporating climate change resilience and adaptation approaches in the transport sector planning and development are of increasingly strategic importance. The NTP and the 2012 National Climate Change Strategy recognized the importance of addressing climate change impacts for the development of the nation. The transition to a low carbon climate resilient development has been identified as the pathway to (i) reduce the country’s vulnerability to climate risks, and (ii) improve the country’s ability to prosper under a changing climate while contributing towards the global efforts to reduce greenhouse gases emissions. In this context, NTP requires meteorological data and information to be factored in by transport stakeholders during planning of their activities to reduce climate change impacts in the transport sector. There is, thus, a general recognition of the need to enhance climate resilience and adapt to climate change impacts in the transport sector where the risks associated with replacement of major transport infrastructure assets, particularly roads, due to climate change are considerable to society. 17. The GoT has emphasized the relevance of promoting women’s participation in STEM (Science Technology Engineering and Mathematics) education and related jobs. A gender assessment for Tanzania reveals that of those in higher learning institutions, 26.1 percent enroll in STEM subjects, of which 32.6 percent are women. The assessment also highlights that girls perform worse than boys on STEM subjects under the Certificate of Secondary Examination. Of those employed in transport and communication, only 5% are women.14 The government has emphasized STEM subjects in primary and secondary schools and usage of gender affirmative strategies to improve the Gender Parity Index in higher learning institutions.15 For the transport sector, the NTP recognizes the need to improve women’s participation by (i) monitoring the performance of public sector entities and private providers for transport infrastructure and services to include gender equality; (ii) auditing plans and designs for transport infrastructure, equipment and services with gender lens; and (iii) adopting bidding and procurement documents for service provision which eliminates gender biases. 18. Women’s mobility and productivity is affected by transport limitations. It is estimated that losses in human capital wealth that can be attributed to gender inequality in Tanzania amount to US$111 billion.16 Village transport surveys in Tanzania show that women spend nearly three times as much time in transport activities compared with men, and they transport about four times as much in volume. For example, nearly half of the total time spent on transport tasks in villages in the Makete Region is spent on activities related to domestic tasks – fuel and water fetching and traveling to the grinding mill. By far the greater share of this is done by women, corresponding to nearly 2 hours each day, of which one hour is spent fetching water.17 This transport burden together with existing gender norms that perpetuate women’s roles as care givers in rural Tanzania, limit the available time that women can spend on remunerated activities. Even if the division of agricultural tasks is almost equal between women and men, women use different transportation technologies to carry out their activities. For instance, women still transport cobs from the field to the house as headloads, while men use wheelbarrows https://www.researchgate.net/publication/330134472_Transport_Risks_Analysis_for_The_United_Republic_of_Tanzania_- _Systemic_vulnerability_assessment_of_multi-modal_transport_networks 14 ILOSTAT, https://www.ilo.org/shinyapps/bulkexplorer32/?lang=en&segment=indicator&id=EAP_2EAP_SEX_AGE_NB_A 15 Government Of Tanzania, “Tanzania Mainland Education Sector Performance Report 2018/2019.�, 2019 16 World Bank. 2019. “Tanzania Economic Update. Human Capital: The Real Wealth of Nation.� 17World Bank, 2004. Tanzania Strategic Country Gender Assessment. https://documents1.worldbank.org/curated/en/515961468778779632/pdf/337750TanzaniaSCGA.pdf Mar 10, 2022 Page 10 of 17 The World Bank Tanzania Transport Integration Project (P165660) or motorbikes.18 Limited access to transport options constrains the distance and markets to which they can access to sell their crops, impacting the quality of the products as well. According to the Country Partnership Framework (CPF), women farmers tend to own smaller plots of land and have less access to modern technologies (seeds, tools) and marketing options due to transport limitations. 19. Although the statistics of fatalities reported up to 2013 had shown a decreasing trend, the road safety situation in Tanzania requires continuous attention. With up to 4,000 people killed in road accidents annually, road safety is estimated to cost about 2,400-2,500 billion TSh annually.19 A National Road Safety Policy was approved in February 2009 and proposed to create a National Road Safety Agency and a Driver and Vehicle Examination and Licensing Agency. However currently the GoT’s goal is to establish a Road Safety Authority (RSA) with a broader mandate to cover both, and the World Bank-financed Dar Es Salaam Urban Improvement Transport Project (DUITP) is supporting the establishment of the RSA. 20. As air traffic grows, provision of regulatory, safety and security oversight of all aviation-industry stakeholders, consistent with international conventions and protocols, has become more demanding. The Tanzania Civil Aviation Authority (TCAA) is required to provide aviation navigation services and develop air traffic management systems to facilitate the safe movement of aircraft in Tanzania airspace. The CAMP has identified several activities that require interventions in the areas of Communications, Navigation and Surveillance, and Air Traffic Management. 21. The transport sector also requires significant institutional transformation (the third pathway to Tanzania’s development), with institutional, legal, and policy strengthening needed to improve management and sustainability of the sector. Although Tanzania’s key transport agencies are in place, further strengthening is required, especially with regards to their ability to plan for and manage the development of the wider transport sector with consideration of evolving climate risk, and integration between modes. The role of the line ministry has been primarily focused on policy setting, with regulatory functions delegated to the autonomous authorities of the TCAA, and the Surface and Marine Transport Authority (SUMATRA). 22. TANROADS, which was established in 2000, has the professional capacity and systems to ensure responsible and efficient project implementation. As one of the more recent additions, TARURA, an executive agency established in 2017, is mandated to developing and maintaining the rural and urban road network and needs support to build its capacity. The Roads Fund Board (RFB) was established in 1998 to ensure the availability of sufficient funds for maintenance of roads through the levy of a surcharge on fuel. This financing mechanism has created a stream of sustainable funding for roads maintenance, although the amount of funds collected is not yet fully catering for the maintenance needs. 18 Fox L., S. Wiggins, E. Ludi, and A. Mdee. 2018. “The Lives of Rural Women and Girls. What does an Inclusive Rural Transformation that Empowers Women Look Like?� London: ODI, page 132. 19 At TSh1 to US$0.00044 exchange rate the loss to road accident is equivalent to US$1.1 billion or represent 2.3% of GDP or 36% of the annual average Growth rate of 6.5% the Tanzania attained during 2006 to 2016. Mar 10, 2022 Page 11 of 17 The World Bank Tanzania Transport Integration Project (P165660) 23. TAA, established in 1999, is responsible for the development and management of airports . The procurement and management of major works contracts and associated consultancy services for airport development has been delegated to TANROADS, which is viewed as better equipped in contractual management. 24. While these institutions are supporting sectoral development, they remain significantly constrained with regards to staffing and skills within their respective areas of responsibility . In addition, the demand for infrastructure funding to maintain,20 extend and sustain the road network currently outstrips available resources. In the road sector, an improved road asset management practice will be required. In this regard, TANROADS has a Road Asset and Management System (RMMS) which has been used for maintenance planning and programming. However, there is a need to upgrade the system into a full web-based Asset/Road Management System, communicate with other systems, and make it robust, along with upgrading the equipment and mechanisms for routine road condition surveys. C. Proposed Development Objective(s) Development Objective(s) (From PAD) The PDO is to improve the safety, climate resilience and capacity of key road corridors and regional airports, and improve the capacity of relevant transport sector institutions to plan for and manage the sector. Key Results PDO 1: improve the safety, climate resilience and capacity of key road corridors and regional airports (a) Average travel time along project corridors (hr) (b) Annual fatalities due to road crashes on project roads (#) (c) People living in an area within 500 m from project roads with climate change resilience interventions (#) (d) Airports with improved capacity, safety and climate resilience (#) PDO 2: improve the capacity of relevant transport sector institutions to plan for and manage the sector (a) Road asset management system is operationalized (Y/N) (b) Road accident information system is operationalized (Y/N) (c) Operational procedures and manuals for incorporation of climate resilience in design of road projects are operationalized (Y/N) (d) Female graduates recruited in a paid six month technical internship program in TANROADS (%); Percentage of women from the internship program who are hired by TANROADS (%) 20 Funds for maintenance are allocated through the Road Fund Mar 10, 2022 Page 12 of 17 The World Bank Tanzania Transport Integration Project (P165660) D. Project Description 25. The proposed project will consist of four components. They are: (i) Upgrading and Rehabilitation of Trunk and Regional Roads; (ii) Upgrading and Rehabilitation of Regional Airports; (iii) Institutional Support and Capacity Building in the Transport Sector; and (iv) Contingent Emergency Response. The total cost of the project is estimated at US$673.6 million, including US$550 million International Development Association (IDA) credit and US$123.6 million GoT counterpart funding. 26. Component 1: Upgrading and Rehabilitation of Trunk and Regional Roads (estimated cost US$546.3 million equivalent, including US$439.3 million IDA and US$107 million GoT funding). This component will finance the upgrading and rehabilitation works of about 500 km of roads, consisting of the Mtwara-Mingoyo- Masasi (200.8 km), Lusahunga-Rusumo (92 km), Songea-Lutukila (100 km) and Iringa-Msembe (105.6 km) roads, integrating climate resilience measures to enhance resilience and adaptation of these roads and road network. The works will then be subject to a five-year routine maintenance contracting post completion of construction of works. After this period, TANROADS will apply its own maintenance regime (periodic maintenance) which includes overlaying, resealing, and patching until the time a major rehabilitation is required. Road maintenance is mostly funded by GoT own funds allocated through the Road Fund Board. This component will also support (i) social infrastructure and community-based initiatives along the project road corridors, (ii) the associated construction supervision consultants, (iii) road user satisfaction survey consultants to carry out baseline, midterm, and end-stage user satisfaction surveys, and (iv) land acquisition, and resettlement and rehabilitation. 27. Component 2: Upgrading and Rehabilitation of Regional Airports (US$106.3 million, of which GoT US$ 16.6 million and IDA US$ 89.7 million). This component will finance the upgrading and rehabilitation of three priority regional airports out of the eleven airports identified for upgrading under the TSSP. The interventions include enhancement of safety and capacity of the airports, and enhancement of climate resilience. The designs and feasibility studies of all the eleven airports were carried out and the most feasible airports have been chosen for upgrading. The three regional airports proposed for rehabilitation and upgrading are Lake Manyara, Tanga, and Iringa Airports and the objective is to meet the air traffic demands for the design life of 20 years and promote tourism and commerce. This component will also support (i) air navigation facilities, (ii) the associated construction supervision consultants, and (iii) land acquisition, and resettlement and rehabilitation. The credit will finance the construction cost of works, and construction supervision consultants, while costs of land acquisition, and resettlement and rehabilitation will be financed through government funds. TANROADS will be responsible for the overall implementation of works related to this component. A working group consisting of staff from TANROADS, TAA and TCAA will be established for the purpose of implementing various activities related to this component. TCAA will provide and review project specifications and requirements concerning navigational aids to ensure that they comply with the international standards. This information will be provided to TANROADS and TAA. TAA will be responsible for reviewing the contract documents to ensure that technical and operational assets requirements are met for the terminal building and for all works related to pavement design and construction as well as proposed mechanical facilities and systems for handling baggage and passengers including security and safety at the airports. 28. Component 3: Institutional Support and Capacity Building in the Transport Sector (US$ 21 million, fully IDA funded). This component will finance activities aimed at (i) continued development of institutional capacities including on climate risk management and safety, (ii) encouraging gender balancing with inclusion and career development for women, and (iii) supporting project management for implementation and monitoring of the project and key institutional support activities. Although the beneficiaries for the activities under this component Mar 10, 2022 Page 13 of 17 The World Bank Tanzania Transport Integration Project (P165660) includes TANROADS, TAA, TCAA and the MoWTC, TANROADS will be responsible for managing all procurement activities and fund flow as elucidated under procurement and financial management sections below. 29. Component 4: Contingent Emergency Response Component US$ 0 million). This zero-dollar component is designed to provide swift response in the event of an eligible crisis or emergency, by enabling GoT to request the World Bank to reallocate project funds to support emergency response and reconstruction, in accordance with an applicable CERC . Manual that needs to be prepared. . Legal Operational Policies Triggered? Projects on International Waterways OP 7.50 No Projects in Disputed Areas OP 7.60 No Summary of Assessment of Environmental and Social Risks and Impacts . Assessment and Management of Environmental and Social Risks and Impacts (ESS1). The works of Upgrading and Rehabilitation of Trunk and Regional Roads will be conducted within the exiting road corridor. Vegetation clearance will be limited to either side of the existing carriageway. The potential impacts and risks during construction are expected to be site specific. Construction impacts and risks may include health and safety risks to workers, neighboring communities, and road users; traffic congestion around construction sites; impacts on streams/water resources/wetlands/forest reserve; impacts on wildlife; dust emission, noise and vibration from construction machinery and vehicles; interruption of utilities; solid waste disposal; degradation of land around borrow pits and quarries, etc.. During operation, the improved roads will help reduce dust, noise nuisances and soil erosion along the corridor caused by the poor existing road conditions. But the roads may also lead to more road accidents due to the increased traffic volume and speed; and induce natural resources exploitation and illegal activities (e.g., poaching) due to the improved access to natural habitats. The potential impacts and risks of Upgrading and Rehabilitation of Regional Airports include construction impacts, and, during operation, noise and vibrations from aircrafts and airport operation; storm water and wastewater management; hazardous materials (e.g., fuel); solid waste; air emissions; energy and water consumption from airport operations; occupational health and safety; and community health and safety. The upgraded and rehabilitated airports are expected to improve environmental performance during operation. Impacts and risks of subprojects will be assessed in subproject ESIAs and mitigation measures included in ESMPs. Labor and Working Conditions (ESS2). Project Workers will include government civil servants in the PIU, national and international contractor/subcontractor workers, and workers engaged through primary suppliers. It is not anticipated that the project will use community workers. The project may involve influx of semi-skilled labor from other parts of Tanzania and skilled labor from other countries. Labor risks related to use of contractors and primary suppliers include failure to respect national labor laws on terms/conditions of employment, recruitment/employment discrimination, child labor, OHS violations, and forced/trafficked labor. The LMP will address each of these risks and provide for a project worker grievance mechanism. If work camps for the labor influx, the LMP will include specific provisions to address such facilities. OHS risks include construction related accidents transmission of HIV/AIDS and COVID-19 among project workers, and GBV/ sexual harassment among project workers. The project will mitigate OHS risks by applying OHS measures according to ESS2, Tanzania Occupational Health and Safety (OSHA) Act of 2003, the Mar 10, 2022 Page 14 of 17 The World Bank Tanzania Transport Integration Project (P165660) WB Environmental, Health and Safety Guidelines, and Good International Industry Practice. Resource Efficiency and Pollution Prevention and Management (ESS3). The rehabilitation and upgrading of roads and airports will generate dust, soil erosion, solid and liquid wastes which are likely to pollute the environment if not properly managed. The project will use aggregates, sand, water, and fuel for construction activities. Airport operation may include the storage and handling of fuels associated with aircraft fueling activities as well as with ground support vehicles. Site specific environmental and social assessments will determine the significance of the likely impacts and risks, and mitigation measures will be included in the subproject ESIAs. Community Health and Safety (ESS4). The project will assess the adequacy of the existing Safety Management System (SMS) and emergency preparedness and response plans. TANROADS will undertake specific measures for the airport and road subprojects to address community health and safety risks, including transmission of communicable diseases, including HIV/AIDS and COVID-19; activities of private or public security personnel that may be engaged to safeguard project personnel/ property (TBC); and GBV/SEA/SH due to interactions between project workers and local communities. ESIAs will assess impacts and risks of the project on community health and safety and propose adequate mitigation measures. Contractors will develop and implement Contractor ESMPs that include Health and Safety Management, Traffic Management, and Emergency Response plans. Due to evolving security concerns about violence in northern Mozambique and possible impacts in Tanzania's southern border area, the Mtwara-Mingoyo- Masasi subproject ESIA will include a preliminary security assessment (with periodic updates). Land Acquisition, Restrictions on Land Use and Involuntary Resettlement (ESS5). The road and airport rehabilitation/expansion activities are expected to involve land acquisition, damage to crops and physical structures, impacts on affected persons? economic activities and resettlement. There is the ongoing risk of exclusion of project affected persons from Vulnerable Groups and others with special needs/interests, including the poorest of the poor, women, and persons with disabilities. The Borrower will prepare an RPF that comprehensively assesses these issues and form the framework for preparing and updating RAPs for the seven subprojects. The Makambako-Songea Road, Lake Manyara, and Tanga Airport subprojects will requires Corrective Remedial Action Plans/audits, which will be inline with the RPF, ESSe and future RAPs, for resettlement-related activities already undertaken by TANROADS. Biodiversity Conservation and Sustainable Management of Living Natural Resources (ESS6): The project involves the rehabilitation and upgrading of existing roads and airports and is therefore not expected to significantly impact natural habitats. Given that some of the proposed infrastructure (e.g., certain road segments and airports) is located near sensitive areas such as watercourses, forest reserves, wetlands, Key Biodiversity Areas (KBAs), and protected areas, subprojects will be screened as part of ESIA finalization for potential direct and indirect impacts on natural habitats and wildlife. ESIAs will identify sensitive locations and propose specific measures (e.g., design considerations and contract provisions) to avoid or minimize impacts on sensitive areas/sites. Indigenous Peoples/Sub-Saharan African Historically Underserved Traditional Local Communities(ESS7). The Borrower will prepare an inclusive VGPF that addresses the identification of communities meeting the ESS7 criteria and which contains provisions to ensure their meaningful consultation and participation in project design and implementation and equitable access to project benefits in a culturally appropriate and respectful manner, including where relevant, through the application of Free Prior Informed Consent . Cultural Heritage (ESS8). The Mtwara-Mingoyo-Masasi Road passes through Mikindani town, which is an important tourist destination. ESIAs will be conducted to evaluate impacts on cultural heritage (e.g., historical monuments/buildings, traditional burial sites, worship places/buildings, and sacred places/trees) that is present or Mar 10, 2022 Page 15 of 17 The World Bank Tanzania Transport Integration Project (P165660) likely to be present within or along the road corridor. Cultural heritage management measures will be incorporated into the ESIAs and civil work contracts, and chance finds procedures included in subproject ESIAs and works contracts. Supervising engineers will be required to ensure full contractor implementation of these mitigation measures during construction. Stakeholder Engagement/Information Disclosure (ESS10). The construction/rehabilitation activities will entail land acquisition and use restrictions, and involuntary resettlement of several hundred persons. Stakeholders communities directly affected through project-related resettlement, and civil society/NGOs, including those representing persons with disabilities, women, communities meeting the criteria of ESS7, and other vulnerable groups. Stakeholder engagement and disclosure will be closely monitored through an inclusive SEP, ESIAs, RAPs, ESMF, LMP, GBV Action Plan and VGPF. The SEP will establish and implement a robust, functional GRM. E. Implementation Institutional and Implementation Arrangements 30. TANROADS is the implementing entity for the project and will carry all fiduciary responsibilities, including management of IDA funds and contracting. TANROADS is technically responsible for all road activities of the project and will collaborate with TAA and TCAA to form a technical group for coordination on all aviation aspects of the project to ensure airport infrastructure, facilities, equipment, and navigational aids, to be provided under the project meet national and international requirements and standards. Specifications and requirements concerning navigational aids will be reviewed by TCAA while technical and operational assets requirements for the terminal building, and pavement design for runway, taxiways and aprons will be decided by TAA. This arrangement is in-line with the responsibilities shared between these agencies more broadly, where construction and contracting for airport improvements has been assigned to TANROADS to account for their stronger contract management capacity. TANROADS and MoWTC will, as appropriate, call on the University of Dar-Es-Salaam College of Engineering and Technology (CoET) to support the project in skills upgrading and in support of gender inclusion and career development. Policy and strategy work under the project will technically be managed by MoWTC with support of TANROADS and other institutions as may be needed. . CONTACT POINT World Bank Gylfi Palsson Lead Transport Specialist Allen David Natai Senior Transport Specialist Pratap Tvgssshrk Senior Transport Specialist Mar 10, 2022 Page 16 of 17 The World Bank Tanzania Transport Integration Project (P165660) Borrower/Client/Recipient United Republic of Tanzania Emmanuel Mpawe Tutuba Permanent Secretary ps@mof.go.tz Implementing Agencies Tanzania National Roads Agency (TANROADS) Eng. Rogatus Mativila Chief Executive tanroadshq@tanroads.go.tz FOR MORE INFORMATION CONTACT The World Bank 1818 H Street, NW Washington, D.C. 20433 Telephone: (202) 473-1000 Web: http://www.worldbank.org/projects APPROVAL Gylfi Palsson Task Team Leader(s): Allen David Natai Pratap Tvgssshrk Approved By Practice Manager/Manager: Country Director: Preeti Arora 22-Mar-2022 Mar 10, 2022 Page 17 of 17