Document of The World Bank £> FOR OFFICIAL USE ONLY Report No. 4017-NIR STAFF APPRAISAL REPORT REPUBLIC OF NIGER FOURTH HIGHWAY PROJECT May 20, 1983 Western Africa Projects Department Transport Division This document has a restricted distribution and may be used by recipients only in the performance of their official duties. Its contents may not otherwise be disclosed without World Bank authorization. CURRENCY EQUIVALENTS Currency Unit = CFA Franc (CFAF) US$1.0 = CFAF 340 CFAF 1 million US$2,940 FISCAL YEAR October 1 - September 30 ABBREVIATIONS AND ACRONYY1S BAEMTP - Budget Annexe pour 1'Exploitation du Materiel des Travaux Publics (Supplementary Budget for Operation of Public Works Equipment) BCEAO - Banque Centrale des Etats de l'Afrique de l'Ouest (Central Bank of West African States) BCEOK - Bureau Central des Etudes d'Outre-Mer (France) BDRN - Banque de Developpement de la Republique du Niger (Niger Development Bank) BN - Budget National CFPTP - Centre de Formation et Perfectionnement des Travaux Publics CONCERTA - Compagnie Nationale pour la Construction et l'Entretien de la Route Tahoua-Arlit DM - Direction du Mat6riel DTP - Direction des Travaux Publics (Directorate of Public Works) DTT - Direction des Transports Terrestres (Directorate of Land Transport) FNI - Fonds National d'Investissement (National Investment Fund) LCPC - Laboratoire Central des Ponts et Chaussees (France) LNTP - Laboratoire National des Travaux Publics (Niger) MF - Ministere des Finances MTPU - Ministere des Travaux Publics, et de l'Urbanisme (Ministry of Public Works and Housing) OCBN - Organisation Commune Benin-Niger OPEC - Organization of Petroleum Exporting Countries PCX - Parc Central du Materiel (Central Equipment Fleet) SNGTN - Societe Nationale des Grands Travaux du Niger SNTN - Societe Nationale des Transports Nigeriens FOR OFFICIAL USE ONLY REPUBLIC OF NIGER FOURTH HIGHWAY PROJECT STAFF APPRAISAL REPORT Table of Contents Page No. I. THE TRANSPORT SECTOR .................................... 1 A. General ............................................. 1 B. Transport Policy and Planning ....................... 2 C. The Transport System ................................ 5 II. THE HIGHWAY SUBSECTOR ................................... 6 A. The Network ......................................... 6 B. Road Traffic .................. 7 C. Administrative Planning ............................. 8 D. Staffing and Training ............................... 9 E. Financing ........................................... 10 F. Engineering, Construction, Procurement and Contracting ................................... 12 G. Road Maintenance .................................... 12 H. Previous Projects ................................... 14 III. THE PROJECT ............................................. 15 A. Objectives .......................................... 15 B. Description ......................................... 15 C. Cost Estimates ...................................... 19 D. Procurement ......................................... 20 E. Financing, Disbursements and Reporting .............. 21 IV. ECONOMIC EVALUATION .. 23 A. General ............................................. 23 B. Bituminous Roads Periodic Maintenance Program ....... 24 V. AGREEMENTS REACHED AND RECOMMENDATIONS .................. 26 This report was prepared by C.J.D. Lane (Highway Engineer) and J. Pelletey (Economist) on the basis of an appraisal mission to Niger in October 1981. r This document has a restricted distribution and may be used by recipients only in the performance of their official duties. Its contents may not otherwise be disclosed without World Bank authorization. Table of Contents (Continued) TABLES Supporting Tables for Chapter II 2.1 Development of the Highway Network, 1970-1980 2.2 New Vehicle Registrations, 1970-1980 2.3 Consumption of Petroleum Products, 1970-1981 2.4 Structure of Retail Price of Oil Products, 1982 2.5 Total Highway Expenditures, 1979-1982 2.6 Government Highway Maintenance Expenditures, 1971-1981 2.7 Estimates of Government Revenue from Road Users, 1970-1981 2.8 Spectrum of Axle Loads Supporting Tables for Chapter III 3.1 Road Strengthening Program: Description of Works 3.2 Staff Training Program 3.3 Equipment List for the Training Center 3.4 Cost Estimates 3.5 Estimated Schedule of Disbursements from the Credit, FY1984-1989 Supporting Tables for Chapter IV Paved Road Maintenance Program 4.1 Vehicle Operating Costs 4.2 Basic Assumptions of Cost-Benefit Analysis 4.3 Economic Return/Sensitivity Test ANNEXES 1. Outline Data Collection System 2. Documents Available in the Project File 3. Technical Assistance to the Training Center CHART Organization of MTPU MAP IBRD-16335 NIGER FOURTH HIGHWAY PROJECT STAFF APPRAISAL REPORT I. THE TRANSPORT SECTOR A. General 1.01 Niger with 1.3 million km2 of terrain is one of the largest landlocked countries in the Sahel area. About 90% of Niger area lies in the Sahara. Arable land is only 2.7 ha. per capita, one of the lowest ratios among Sahelian countries. The population, which is growing at 2.5% p.a., was estimated at 5.5 million in 1981, making the average den- sity only 4.2 inhabitants/km2, one of the lowest in Africa. Eighty-five percent of the population still lives in rural areas mainly in the south- ern part of the country where the land is moderately fertile and the rainfall sufficient for the cultivation of some food crops (millet, sorghum, maize and cow peas) and cash crops (mainly groundnuts and cot- ton) partly for the Nigerian market. 1.02 Niger endures a harsh climate with low and uncertain rainfall. The drought of the mid-1970s probably hit Niger the hardest of the Sahe- lian countries. In addition, the landlocked position of the country induces high transport costs and sometimes causes serious delays in the delivery of imports. However, despite these constraints and the very meager endowment of physical and human resources, the country has tradi- tionally adjusted relatively well to unfavorable environmental circum- stances. During the last decade Niger experienced significant economic growth. By 1980 the per capita income was US$360 ($90 in 1972), roughly double that of its Sahelian neighbors, Mali and Upper Volta. This eco- nomic upswing resulted from good rains in the late 1970s and an agri- culture investment program that was generally soundly conceived and rea- sonably well executed, and also from rapid development of uranium mining and associated construction, transport and transit activities. 1.03 The uranium boom, which started in the mid-1970s, increased foreign exchange earnings considerably. Exports of uranium rose from 1,100 tons in 1974 to 4,128 tons in 1980, while at the same time export prices increased from CFAF 5,000/kg to CFAF 24,500/kg. Revenues earned by the Government from tariffs, taxes, dividends and royalties from ura- nium production increased from CFAF 4.1 billion in 1975 to CFAF 23.6 billion in 1980, i.e., about 31% of Government revenues. These windfall revenues have been earmarked, by and large, for the Fonds National d'Investissement (FNI) for the development of the agricultural sector and improvement of basic infrastructure and social development. - 2 - 1.04 Notwithstanding the importance of the uranium sector, Niger con- tinues to be a predominantly rural economy with agriculture and livestock accounting for some 30% of GDP. Both sectors performed acceptably after the drought of the early and mid-1970s. The country has already managed to restore self-sufficiency in food grains with output keeping pace with population growth. In the livestock sector, reconstitution of herds has already reached pre-drought level. The rural sector in the south is profoundly influenced by the fact that Niger has traditional pre-colonial links with neighboring Nigeria. The concentration of similar ethnic groups on both sides of the 1,500 km border, the road network, and the high demand for agriculture and livestock products in Nigerian urban centers explains the recent growth of trade between the two countries. 1.05 The Government through its Five-Year Development Plan (1979-83) emphasizes self-sufficiency in food production, reduction of economic dependence and promotes, through the establishment of a "Development Society," social justice and a gradual reduction of prevailing regional and economic inequalities. This ambitious plan projects total public investments of US$1.8 billion in 1979 constant prices excluding mining. It gives priority to the increase of productivity in agriculture and livestock, agrobased industries which have growth potential, and to the development of basic economic and social infrastructures, mainly highways but also in the water supply, education and health sectors. There are already indications that the implementation of the Plan will fall short of targets in most sectors. This is not necessarily undesirable, given the over-optimistic nature of the Plan. B. Transport Policy and Planning 1.06 While the Government's past transport policy was aimed mainly at expanding and upgrading the major trunk roads in the south of the coun- try, the present objectives are more diversified: (a) completion of linking the major urban centers and mining areas to the main paved road network; (b) consolidation of the existing force account capability of the Ministere des Travaux Publics et de l'Urbanisme (MTPU)1/ for the maintenance of the earth roads network; (c) establishment of an adequate capability within the MTPU for the preparation, supervision and execution of periodic maintenance works on the paved road network; (d) extension of the feeder roads system in areas where rural development projects are being implemented; 1/ Ministry of Public Works and Housing. (e) modernization of the fleet of Air Niger, the domestic air line; (f) development of the training capacity of the MTPU; and (g) support of the development of a local construction indus- try through highway projects. 1.07 The Bank is now supporting the Government actively in the reali- zation of these objectives. The ongoing Third Highway Project and the Feeder Road Project are addressing objectives (b), (d), (f) and (g). The proposed Fourth Highway Project will chiefly address objectives (c) and (f). 1.08 During the ongoing 1979-83 Five-Year Plan, the Government envi- sages to allocate for highways mainly about CFAF 55 billion (in 1979 prices) in the sector, the equivalent of 14% of total public invest- ments. In addition, about CFAF 31 billion were estimated to be invested by the private sector or mixed companies for the purchase of transport equipment and also for the construction by CONCERTA, an affiliate of the uranium mines, of the "uranium road" Tahoua-Arlit (650 km, cost CFAF 21.7 billion, taxes excluded). Although the realization of some projects envisaged by the Plan has been postponed because of insufficient funds, the actual total investment in highways, still amounted to CFAF 30 bil- lion during the period 1979-82, or about 12% of total public invest- ments. Only 18% of these investments were financed by the FNI in asso- ciation with local banks; the balance being met by foreign aid. The major works undertaken during the period include the completion of the major east-west trunk road (RN 1) which connects Niamey to major economic centers of the south and for the improvement of access roads to the bor- der of Benin and Upper Volta where import traffic developed rapidly. Simultaneously an important effort has been made (CFAF 14 billion) for extending and upgrading the secondary network in rural areas. 1.09 Today Niger is facing major uncertainties in its medium-term economic outlook. The present depressed conditions in the world uranium market are expected to continue until the late 1980s and will affect public finance and creditworthiness. The Government has now to make substantial adjustments including the scaling-down of its investment program, to cope with the harsher economic environment. Under the so- called policy of "consolidation" a pause in new investments is called for and an increased emphasis will be placed on making existing investments operational through better planning, maintenance, and tight control of current expenditures. 1.10 This new policy should be applied in the transport sector. The Government is no longer actively pursuing the railway extension project (Parakou to Niamey (650 km)). Since the country now has an adequate interurban paved network, resources should now be allocated to the im- provement of the feeder road network and to road maintenance, mainly on the paved road network which has been considerably extended since 1975. The next 1984-89 Five-Year Plan should embody a more balanced highway - 4 - investment program which should recognize the relative priority of high- ways investments on the paved network in the following order: (a) main- tenance; (b) rehabilitation; (c) paving; and (d) new construction. This does not mean that the construction of new paved roads should be stopped but rather that it be tied to traffic needs or linked to specific eco- nomic development programs. This issue was discussed during negotia- tions. Periodic consultations will be arranged between the Bank and the Government during the implementation of the project to review the program of highway construction and its implementation (para. 5.01(c)). 1.11 Basic policies and decisions on transport investment are made in principle by the Ministry of Planning which also coordinates the neces- sary external financing. These proposals are subject to the approval of the National Council for Development. However, because of the lack of qualified staff and inadequate coordination between ministries, major responsibility for formulation of transport policy has been in fact assigned to the MTPU. In recent years, the MTPU has adequately fulfilled its task, and investment priorities in the sector have in general been sound and reflected accurately the needs of the country. 1.12 The Direction des Travaux Publics (DTP),1/ which is staffed with sufficient numbers in most branches and disposes of the necessary budget- ary resources, has responsibility for the execution of investment studies of all major public works projects (mainly highways) and plays a key role in the formulation of the country's transport policy. The Direction des Transports Terrestres (DTT)2/, short of staff, has been generally too weak for meaningful participation in planning and policy-making decisions and thus has limited its activities to routine administrative tasks (such as registration of vehicles, driver licensing) and the control of opera- tions of the state-owned transport companies. DTT has been recently placed under the tutellage of the Ministry of State for Planning, Commerce and Transport. This move has two main objectives: first to improve coordination between the Directorate of Commerce and the DDT in order to ensure more efficient transport operations of commercial firms including large state companies and second to involve DTT more in the preparation of the 1984-88 Economic Development Plan. The Direction d'Aviation Civile (DAC)2/ delegates an important part of its functions, mainly airport management, navigation aids, meteorology, etc., to ASECNA, the Agence Internationale pour la Securite de la Navigation Aerienne which manages and maintains civilian installations in the Francophone African countries. 1.13 The French Fonds d'Aide et de Cooperation (FAC) financed the preparation of a Transportation Plan in 1977/1978. It is largely on the basis of this study that priority projects included in the 1979-1983 Five-Year Plan have been selected. Since the growth of uranium revenue 1/ Directorate of Public Works. 2/ Since January 1983 the Directorates of Land Transport, Civil Aviation and Meteorology are under the Ministry of State for Plan, Commerce and Transport. - 5 - is now expected to be significantly lower than forecast during the prepa- ration of the Plan, some updating of traffic forecasts and prefeasibility studies will be needed. At the request of the Bank the MTPU has agreed first, to undertake the necessary surveys with the assistance of the new Road Management Unit (para. 3.07) to reinstitute data collection on this sector which has been neglected in recent years and secondly, to execute specific studies needed for adequate management of the sector (Annex 3). C. The Transport System 1.14 Niger has a simple domestic transport infrastructure, with roads and air being the most important modern modes of transportation. The primary road network which is under the regular control of the DTP for maintenance, includes about 8,500 km of paved, engineered laterite, and earth roads and tracks. Since 1975, most of the Government efforts have been to upgrade to paved standards the east-west axis which links the Mali border to Lake Chad and serves the major economic areas and urban centers of the country, and to upgrade and extend links to the uranium mining area. Details of the road system and the road transport industry are given in Chapter 2. 1.15 Niger's external trade flows are quite sensitive to transport costs. First, because exploitation of the scarce natural resources (for example uranium) depends heavily on imports of equipment and intermediate goods and secondly, because the distance between local production or consumption centers and the ocean ports is considerable. Another handi- cap is that the major sections of the routes to the sea lie outside the country and Niger has little control over the efficiency of operations and costs of transit. There are three main export/import outlets: (a) the Nigeria route (about 1,450 km from Zinder to the sea) which connects the central and eastern regions by road to Kano, and thence by rail to the Port of Lagos; (b) the Benin route (about 1,100 km from Niamey to the sea) which connects Gaya by road to Parakou, and thence by rail to Cotonou; and (c) the Togo route (about 1,350 km from Niamey to the sea) which connects Niamey to the Port of Lome (Togo) by road through Upper Volta. 1.16 Traditionally about 70% of the total import/export freight traf- fic was transported over the Benin route. However, severe restrictions imposed on the activities of foreign companies in Benin following the 1976 wave of nationalization have obliged Niger transit companies and their foreign partners to transfer part of their activity to Lome. In addition, the improvement of roads both in Upper Volta and Togo make the Togo route an acceptable alternative to the Benin route (although about 20% more expensive) for high value equipment and consumer goods, which can support higher transportation costs and for which rapid delivery is a key factor. The utilization of the Nigerian route was traditionally limited to the import of oil products for the uranium mines, but its importance for Niger is now decreasing since most of the oil is now supplied from the Kano oil depots in northern Nigeria. 1.17 There is an international airport at Niamey and four small regional airports at Agadez, Tahoua, Maradi and Zinder. Some mining and oil exploration companies operate their own air fields. Niamey Airportl/ is the closest to Europe for sub-Saharan countries of the region and is therefore an important transit stop (79,000 transit passengers in 1980) and as such generates significant revenues from landing fees. Through Credit 473-NIR in 1974, the Association helped to finance a project of modernization and extension of the airport. 1.18 Most of the limited domestic air traffic (25,000 passenger departures in 1980) is handled by Air Niger, the national airline and the remainder by Trans-Niger air-taxi service. Since the air traffic demand mainly to and from the Arlit mines is expected to continue to grow, the Government has recently authorized Air Niger to modernize its fleet and requested ASECNA to undertake a feasibility study for the construction of a new airport at Arlit suitable for medium-sized aircraft of the B737 type. 1.19 Efforts to develop modern river transport on the Niger River have recently been abandoned. The Soci6te Nationale des Transport Flu- viaux (SNTF) created in 1972, with assistance of the Canadian Interna- tional Development Agency (CIDA), to operate between Gaya and Warri (Nigeria), has been recently dissolved. There is at present no immediate hope for the company to resume its activities in the foreseeable future since Nigeria has not yet undertaken the necessary improvements, such as river regulation, required to develop this mode of transport. II. THE HIGHWAY SUBSECTOR A. The Network 2.01 The main road network includes 8,500 km of roads: 2,910 km are paved, 3,130 km are good engineered laterite roads, and the remainder are earth roads and tracks of generally low standards, some of which are periodically closed to traffic during the rainy season. There are also some 12,000 km of unclassified earth roads in agricultural areas and tracks in desert areas not under the regular control of the DTP (Table 2.1). Niger ranks fourth among the six Sahelian countries -in terms of total length of classified roads but, because of its large size, is considered last in terms of km per 1,000 inhabitants (1.5 km/1,000"), as well as in terms of density of road (6.3 km/1,000 km2). 1/ 202,000 passengers handled in 1980; growth averaging about 11% p.a. - 7 - 2.02 The network is concentrated in the south where the majority of the population and most of the economic activity are found. The vast uninhabited areas in the northern part of the country are only sparsely served (Xap 1). Niger's terrain is mostly flat or undulating and pre- sents no major physical barrier to land transport or development. In recent years, as a result of the development of uranium mining, the Government gave priority to the construction of the Tahou-Agadez-Arlit Road (645 km) (the "uranium road") which links the populated areas of the southwest with the mining areas. B. Road Traffic Growth of Traffic 2.03 The highest traffic flows are observed along the road RN 1, 1/ the major east-west axis of the country. The daily traffic averages about 350 vehicle per day (vpd) but with higher volumes (550 to 750 vpd) nearer Niamey. Traffic along the Dosso-Gaya Road, which leads to Benin, and on the uranium road has already reached 360 and 280 vpd respectively, with a high percentage of heavy truck traffic. Recent traffic counts indicate that during the 1970s road traffic increased at about 13.5% annually in terms of ton/km, reflecting both an increase in volume of traffic (10%) and in average haul distance, following the mining boom. 2.04 This rapid increase in traffic is also reflected by the increase in vehicle registrations by the DTT: 4,039 vehicles were registered in 1980 compared to 1,398 in 1970 (Table 2.2). Growth has been particularly rapid in commercial vehicles. An average of 1,645 new vehicles was reg- istered annually between 1979-1980 as opposed to only 478 vehicles per year a decade ago. The existing truck fleet is now considered adequate to serve the present requirements. 2.05 Fuel consumption statistics confirm the traffic growth; between 1970 and 1975, consumption has grown at about 10% annually (Table 2.3) but since the start of the uranium boom in 1976, growth has been about 16% p.a. Fuel prices are not subsidized, and the domestic price is well above the current international price (Table 2.4). The Road Transport Industry 2.06 The growth of imported equipment and intermediate goods for the uranium mines as well as the rapid development of urbanization (about 9% annually), which increased the flow of agricultural products to the major urban centers, have strongly stimulated the activity of the trucking companies. Public freight transport now is handled by well over 300 transporters, most of them located in the capital city of Niamey. While officially there is no monopoly in road transport, it is clear that the well-managed and efficient Soci6te Nationale des Transports Nigeriens 1/ RN = Route Nationale. - 8 - (SNTN) has benefitted most from the rapid growth of the transport demand since the mid-1970s. However, SNTN which has full autonomy and is ma- naged as a private company must negotiate its contracts like its compe- titors. It also suab-contracts to small operators through the Syndicat National des Transporteurs. Between 1976 and 1980 the company increased its fleet from 295 vehicles to more than 1,000. The total mileage of the truck fleet increased an average of 30% annually during the period. The company handled about 75% of total fuel imports and about 30% of general freight. SNTN has the monopoly for transport of uranium exports to Parakou (Benin) and for imports of some chemical products, e.g., sulphur destined for the mines. 2.07 Official tariffs for road transport are only indicative, except for oil products, and for imports on vehicles chartered to the Organisation Commune Benin-Niger (OCBN), the jointly-owned Cotonou- Parakou Railway. In the latter case, OCBN imposes its own tariffs. Tariffs for domestic traffic are usually negotiated on a case-by-ease basis. In 1982 ac-tual tariffs for a single trip ranged between CFAF 25- 28 per ton/km on paved roads and about 33 to 36 CFAF/km on earth roads, only slightly higher than on the coast. Discounts of about 35% are requested by DTT for full load returns trips. The prevailing competition among truckers means that most of the decrease in vehicle operating costs resulting from road improvements will probably be passed on to the consumer. Inter-urban passenger traffic is still inadequately organized, and although some efforts have been made during recent years by SNTN to open new lines, transport demand is still higher than capacity. 2.08 Licenses for public transport operators are issued by DTT. In principle only Nigerien citizens are allowed to form public transport companies; foreigners may do so with special authorization. There is no control of the professional capacity of candidates. DTT also requires that freight transport vehicles undergo a technical inspection twice a year and those for transport of passengers, four times a year. Enforce- ment of these regulations however is quite lax. C. Administrative Planning 2.09 During recent years the MTPU concentrated most of its human and financial resources on the extension and upgrading of the road network, and DTT was given a lower priority. The problem of the quality of the road sector management is now urgent, since the choice of appropriate technology for road construction and maintenance, and the formulation of an adequate policy for financing paved road maintenance, is now a crucial issue. Efforts in the coming years should aim at implementing an ade- quate unit for monitoring road maintenance operations (para. 3.07), im- proving record keeping and accounting procedures, updating highway - 9 - maintenance costs information and adjusting the cost-related tariff of the equipment hired by the Direction du Mat.riel.l/ 2.10 Unfortunately the keeping of statistics on the sector has become inadequate and erratic in recent years, and an effort is needed to put the collection system in good repair again and to pull together inform- ation from various sources for analysis. During preparation of the pro- posed project, the lack of accurate and up-to-date data on the sector prompted the Association to offer to finance technical assistance to re- establish the data collection system and the regular publication of the statistical bulletin of the MTPU. The Government does not wish to in- clude such a component, but the Association feels the matter to be im- portant nevertheless. Accordingly the credit agreement calls for the Government to reestablish a minimum level of transport statistics col- lection, using its available staff, and during negotiations the Govern- ment agreed to carry out this task (Para. 5.01(a)). Annex 1 shows the main headings under which data will be collected. D. Staffing and Training 2.11 DTP at present has about 1,800 employees, of whom about 160 are in supervisory or office positions or in civil engineering functions, and another 490 are in the Direction du Materiel (DM) (equipment division) including workshop staff, operators and drivers; the remainder are tra- desmen and laborers. The level of literacy in Niger is very low (about 8%) and the school enrollment rate for the present generation of school- age children is low by West African standards (17%). Technical and other tertiary education facilities are not well developed.2/ In consequence, there is an acute shortage of educated professionals and heavy competi- tion for the small output of high school graduates. The DTP has there- fore no option but to create its own training facilities and to be pre- pared to work with students with low literacy. Other ministries face the same problem as do civil works and building contractors; the training center to be built under the proposed project, although legally part of MTPU, will be able to accept students from other sources. No other tech- nical training facilities are included in the current Five-Year Plan, so the proposed center will be filling an important role outside DTP. At the professional level, students still go abroad for training, as do some senior technicians. Some mechanics, surveyors and bookkeepers join DTP after attending Nigerien training schools, though many are recruited with no professional training, nor much basic education. However, at whatever professional level recruits enter, all need training in DTP's methods and procedures. 1/ The rental of equipment to other regional Public Works Divisions or other public establishments constitute the major source of revenue of the BAEMTP (Budget Annexe d'Exploitation du Materiel des Travaux Publics). 2/ See Bibliography. Annex 2. - 10 - 2.12 Under the Third Highway Project a training program was conducted for the staff which would be needed to set up four regravelling brigades, covering field, workshop and office staff. This exercise revealed that almost all DTP staff needed basic and refresher training, and needed it on a continuing basis. During this project five existing DTP employees have been gaining experience as "trainers," working with expatriate ins- tructors in the classroom and in the workshop, and where necessary, translating from French to one of the country's two major African lan- guages. At the present time they are undergoing training in preparation for their role as instructors in the new center. With the slow down of mining activity, loss of trained people to the private sector is not the problem it was formerly. Inasmuch as a mechanism exists within the civil service for adjusting salaries to maintain competitiveness with the pri- vate sector, the proposed training center should make an impact on DTP's staffing problems. Furthermore, DTP has agreed that satisfactory per- formance in a refresher course will be a prerequisite for promotion. The proposed project provides for the establishment of a permanent training center, for which much preparatory work, including the production of course materials, and bidding documents for construction has been done. E. Financing 2.13 Highway expenditures have traditionally been financed from four major sources: the Budget National (BN) provides funds for administra- tion and routine maintenance of National Roads; the Fonds National d'Investissement (FII) finances minor road improvements and periodic maintenance works; the Budget Annexe d'Exploitation du Materiel des Travaux Publics (BAEMTP) provides earmarked funds for the maintenance and purchase of highway equipment and spare parts for the MTPU (para. 2.17); and foreign aid financing (principally from FAC, EDF, Arab Funds and the Bank Group) is spent mostly on road construction and periodic maintenance works executed by contract. In addition to these traditional sources of financing, the Government has been obliged to seek new sources of funds to execute road construction works needed because of the rapid growth of traffic. Important participation has been obtained from the Development Bank of Niger (BDRN), BCEAO or even prefinancing of works by contractors. The construction of the Tahoua-Arlit "uranium road" (650 km)--the most important highway project in the country (CFAF 21.7 billion, net of taxes)--has been financed by the mining companies through their affi-liate CONCERTA. Expenditure on roads over the period 1979-8 2 totalled about CFAF 53.5 billion, of which CFAF 47 billion or 79% went for investment, the rest for administration and maintenance (Tables 2.5 and 2.6). About 46% of investment expenditures were financed by foreign aid; 33% by CONCERTA and the remaining 21% by FNI. 2.14 In the coming years road maintenance needs will increase drama- tically as a result of the aging of the paved network built during the mid-1970s. As indicated below, total maintenance cost, including ad- ministration, is expected to average about CFAF 4.4 billion per year during the 1983-86 period, compared with CFAF 1.8 billion in 1981/83. Following recent substantial increases in fuel taxes (averaging 80%), - 11 - total revenues from road user charges are likely to exceed these expend- itures levels, but other expenditure requirements preclude the Government from applying all road user revenues to road maintenance. Accordingly the proposed project will finance urgently required periodic maintenance of paved roads (to which the Government will contribute 25%, including taxes) on the condition that the Government undertakes to provide suffi- cient funds for all other road maintenance. During negotiations, the Government agreed to provide CFAF 1.7 billion in 1983/84 and to maintain the real value of this amount, in subsequent years 1/ (para. 5.01 (b)). These allocations, together with the Government and IDA's contributions to the proposed project, would bring total maintenance expenditures to the required levels indicated below. CFAF Million Actual Projected /1979/80 1980/81 1981/82 1982/83 1983/84 1984/85 1985/86 A. Maintenance Expenditures - Earth & Gravel Roads Maint. 980 1,020 1,050 1,030 1,200 1,300 1, 450 Paved Roads - Routine 250 230 200 250 450 500 550 - Periodic 400 400 400 350 2,210 2,470 1,810 Sub-Total 1,650 1,650 1,650 1,630 5,860 4,270 5,810 Other Costs 2/ 270 220 200 150 380 370 360 Total 1,900 1,870 1,850 1,780 4,240 4,640 4,170 B. Road User Charges -/ Fuel Taxes 1,540 1,840 1,710 2,390 3,260 3,460 3,670 Vehicle Registrations 230 230 240 250 260 270 280 Licensing 60 70 80 90 100 110 120 Import Duties (Vehicles, Parts, etc.) 870 960 970 1,030 1,090 1,160 1,220 Total Revenues 2,700 3,100 3,000 3,760 4,710 5,000 5,290 1/ Net of Taxes. 2/ Including overhead, training, technical assistance, Road Management Units. 3/ Forecast of the existing taxation rate. Traffic growth: 6% p.a. 2.15 These maintenance commitments, in the context of the fiscal constraints being faced by Niger, may necessitate a reduction of the highway construction program in favor of road maintenance. During nego- tiations, the Government agreed to review with IDA its highway investment and maintenance programs as needed (para. 5.01 (c) and (d)). The 1/ To be reviewed each year with IDA in the light of Niger's financial situation. - 12 - Government further agreed to ensure that its capital investment program would not prejudice the provision of the minimum maintenance budget. The new Road Management Unit to be created under the proposed project will contribute to these reviews by regularly evaluating the network and future maintenance requirements. F. Engineering, Construction, Procurement and Contracting 2.16 It is the responsibility of the Studies Division of DTP to draw up terms of reference for studies; review study reports, engineering designs and proposals; and manage the bidding process. In the past, MTPU has always handled bids for Bank projects in a satisfactory manner; the procedure now includes public bid opening (see para. 3.17). However, at least 30% of Government-financed contracts have in the recent past been awarded on the basis of negotiations with selected firms. The Bank has expressed its disapproval of this practice, which the Government defends on the grounds of needing to direct work to domestic firms. The Bank- financed study of the domestic construction industry (BCEOM, September 1981) also condemned this practice. Since the Government has sold its holdings and effectively liquidated the former "Societ6 d'Etat" SNGTN (which has been essentially reborn as Genie Civil du Sahel, a wholly private company), there will be keener local competition. Even prior to publication of the study, the President of the Republic had appointed a commission to look into ways of removing the major difficulties with contracting, namely the undue length of the contract approval circuit and very long delays in making payments to contractors. 2.17 Construction and periodic maintenance of paved roads is carried out by contract, and is supervised by consulting engineers or by DTP. Major externally-financed highway projects are usually executed by European firms, some of which have been long established in Niger. There are two local firms which now execute laterite road construction and regravelling contracts, and at least five building firms. Capacity for executing bituminous works is limited in skill and experience, more than equipment, but the proposed project contains measures to ensure the maxi- mum of local contractor participation. G. Road Maintenance 2.18 Niger is regarded as one of the countries in the region which is serious about road maintenance, and the Association has played an im- portant role during four previous highway projects (see paras. 2.21 ancL 2.22). Road maintenance is carried out by DTP's six Services Departemen- taux (SDs) (regional road service divisions) supported by headquarters services and the DM. Chart 1 shows the organization of DTP. The DM was substantially reorganized and re-equipped during the Highway Maintenance Project (Cr. 128NIR) in 1968, during which the BAEMTP was set up. BAEMTP is a semi-autonomous budget designed to cover the operating costs of the DM, avoiding the long slow "normal" purchasing procedure. It takes the form of an annual advance from the Treasury, which is partially - 13 - repaid from SD's revenue from hiring out its equipment to operational services. The new Road Management Unit will be asked to update on a regular basis its information on the costs of equipment, operation and repair to ensure a periodic revision of tariffs (Annex 1). 2.19 Routine road maintenance is financed under two main heads in the state budget: one for permanent civil servants' salaries and one for operations (maintenance of offices and building services, stationery, vehicles, etc., and all routine road maintenance costs in equipment hire, fuel, wages of temporary employees, construction materials, etc.). Normal periodic maintenance and the local contribution to the costs of donor-financed permanent works and periodic maintenance are financed through FNI. Periodic Maintenance of Paved Roads 2.20 Previous projects financed by the Association have built up the capacity in trained manpower, equipment, and workshop services to carry the base load of periodic maintenance on the laterite and feeder road networks. Up to now routine maintenance of the paved network has been confined to patching and crack sealing, a service the Association has helped to establish. Many of the sections of paved road have now reached the point where resealing and or overlaying are required. MTPU, cons- cious of its patrimony of paved roads and with the same responsible atti- tude it has shown to other maintenance activities, now wishes to esta- blish the monitoring and programming skills required to assure a network management approach to periodic maintenance, and having seen how a lack of this has affected neighboring states stresses the preventive nature of its planning. Accordingly the proposed project will finance the reseal- ing and/or strengthening of portions of the network as required, and will establish a Road Management Unit for the monitoring and planning of a rolling program of works, keeping the paved network up to date with its changing task (see paras. 3.03, 3.07 and Annex 1). Axle Load Control 2.21 The expanding paved network and rapid growth of truck traffic has obliged MTPU to give special attention to vehicle overloading. In 1980, DTP commissioned consultants BCEOM to undertake a survey in order to determine the axle load spectrum, assess the impact of axle load limi- tations on maintenance costs, and to make recommendations for new regula- tions. Technical studies have been completed, and show that about 20% of axles are overloaded (more than 11.5 t/axle), a slightly lower percentage than in most West African countries (Table 2.8). A large proportion of overloaded vehicles are from neighboring countries, mainly from Togo and Benin, where the enforcement is less strict. At present an international dialogue is taking place at the level of the Conseil d'Entente about the adoption of a 13 t axle load. There is believed to be tacit agreement from all states, but technical studies demanded by some countries are not yet complete. When the general agreement is ratified and officially adopted, DTT will enforce the new regulations. Five portable weight- bridges were supplied during the Third Highway Project, and during the - 14 - proposed project the Association will continue its dialogue with MTPU on the enforcement of the new regulations. H. Previous Projects 2.22 There have been six projects in the transportation sector: four for highways, one for feeder roads and one for airport improvement. Details are given below: (a) The First Highway Project (Credit 55-NIR, US$1.5 million, 1965) consisted of engineering and construction of about 60 km of laterite roads serving groundnut production areas in the Zinder region. (b) Highway Maintenance Project (Credit 128-NIR, US$6.5 mil- lion, 1968.) In 1965, the Bank made a US$85,000 grant for a road maintenance study which was carried out by BCEOM (France). As a result of the study, this project provided for a phased reorganization of the maintenance and equip- ment services, training and elimination of the backlog of deferred maintenance. The project also included feasibi- lity studies carried out by SCET/COOP (France) for about 300 km of roads, with detailed engineering for about 140 km. (c) The Second Highway Project (Credit 231-NIR, US$6 million, 1971) provided for the construction of the 140 km of roads mentioned above and pre-investment studies for about 170 km of roads serving agricultural areas. (d) Niamey Airport (Credit 473-NIR, US$5.0 million, 1974). The Association also helped to finance a project for the modernization and extension of Niamey Airport to assure its continued use by international transit traffic, and to provide for future growth. The project consisted of lengthening and rehabilitating the existing runway and taxiway to accommodate wide-bodied aircraft and of up- grading various items of airport safety and lighting equipment. (e) The Third Highway Project (Credit 612-NIR, US$6 million, 1976, plus co-financing of US$7.0 million and US$3.6 mil- lion by BADEA and ADF respectively) comprised: (i) equip- ment purchase, technical assistance and training of DTP staff at all levels in support of a four-year program of laterite road regravelling; (ii) construction of the Zinder-Nigerian border road (113 km) and the Maradi- Nigerian border road (49 kin); and (iii) a survey of the domestic construction industry; and (iv) supply of equip- ment and technical assistance for routine maintenance of bituminous roads. -15 - (f) The First Feeder Road Project (Credit 886-NIR, US$10 mil- lion, 1979) consisting of a three-year program for the improvement, construction and subsequent maintenance of about 1,000 km of feeder roads serving agricultural de- velopment projects; creating a feeder road technical section in the DTP; and training of equipment operators, mechanics, and foremen of the new section and technical assistance to DTP for its execution. PCRs have been prepared for all except the last two projects which are still in progress. The Third Highway Project has been well executed by DTP; the construction components were executed below budget and in less than the contract period. With the resulting savings the technical assistance was extended to include the provision of an expert in organi- zation and methods and three experts to improve management of the central workshops and to extend the duration of assistance for training. The project scope was also extended to include preparation of the proposed project. The main component of the Third project--regravelling of late- rite roads--will fall short of its target because of the Government's inability to provide in a timely manner, after 1981, sufficient operating funds for the brigades. This deficiency is in no way the fault of DTP, but is a result of a sharp drop in Government revenues due to falling uranium prices in 1981. The Feeder Road project's low design standards met with local opposition but some sections have now stood two wet seasons without damage and work is proceeding as planned. The institu- tion-building aspects of the project have been particularly successful and the cost accounting system established is excellent. III. THE PROJECT A. Objectives 3.01 The objectives of the proposed project are: (a) to institute and begin implementation of a program of planned preventive periodic maintenance, and to set up a Road Management Unit (RMU) in DTP; and (b) to establish the training of DTP employees on a permanent basis. B. Description 3.02 In order to meet these objectives, the proposed project will finance the following items: (a) strengthening and/or resurfacing of 374 km of the existing bituminous network by contract; - 16 - (b) the establishment and equipping of the Road Management Unit; (c) construction and equipping of a training center for DTP employees, and the operation of the center over a three- year period; and (d) technical assistance for the supervision of works in items (a), (b) and (c) and the provision of traffic counting, pavement roughness measuring, line marking and road main- tenance equipment, and vehicles for items (b) and (c). Pavement Strengthening and Resealing Program 3.03 Niger now has a network of bituminous roads of about 2,200 km to be maintained by DTP, with a further 625 km of the Tahoua-Arlit Road (the Uranium Road) being maintained by the mining companies. The existing pavements which are all surfaced with a double surface dressing date from 1971; some sections originally constructed to 3.5m width are being wi- dened to 6m or 7m depending on the traffic. The time is now ripe for the establishment of procedures and programs for the active management of this network, renewing and upgrading its capacity as it ages and as traffic grows, in a rolling program of preventive maintenance and strengthening. 3.04 A pavement evaluation exercise was carried out by Consultants BCEOM (France) in 1980, in collaboration with the French Laboratoire Central des Ponts et Chaussees (LCPC), consisting of deflection measure- ments made with a Lacroix deflectograph, over 2 km lengths every 10 km throughout the whole network, combined with a visual examination, and a test trench every 10 km. This exercise revealed a program of maintenance priorities and established a reference point for all future pavement monitoring. At the same time, an indicative planning exercise was done to determine the probable date by which pavement strengthening would be required, based on an analysis of the pavement capacity in terms of standard axle repetitions, past and expected commercial traffic and the expected life of surface dressings under Nigerien conditions. It is still not possible to predict far ahead, but the idea of a rolling ten- year program, with -two years being definitely identified, three years provisionally identified and five years forming an "indicative" program, has been established. Transfer from category-to-category will be based on the evidence from the continuous monitoring exercise. A small road management unit is being set up within DTP to carry out the monitoring for which the proposed project will provide equipment and technical assistance (see para. 3.07). 3.05 A program of 374 km of strengthening and resealing works has been identified, for execution by contract. The resealing work consists of 31.5 km of base course strengthening followed by a double surface dressing, and 342.5 km of double or single surface dressing on existing pavements. Base course strengthening consists of the addition of 15 cm - 17 - to 25 cm of new laterite. Details of the program are given in Table 3.1, and in the accompanying map. 3.06 The program of works was prepared in detail by consultants BCEOM on the basis of follow-up deflection measurements made with a Benkelman beam and a more detailed visual examination in November 1981. Bidding documents have been prepared on the basis of global indicative quantities and unit prices and the work has been divided into two lots. Any addi- tions to, or curtailments of the program will be agreed with the Associa- tion before contracting (para. 5.01(e)). In order to safeguard the qua- lity of the surface dressing work (a rather unforgiving technique in which attention or inattention to small details can greatly affect the life of the seal), an experienced contractor will be essential. Road Network Management 3.07 Under the project, DTP will establish a Road Management Unit (RMU). This unit will be responsible for monitoring various parameters of the network (roughness, deflection, visual condition, traffic volumes) and updating of the road condition survey. Technical assistance of 40 man-months will be provided to help set up the unit and establish the procedures. Two persons--an engineer and a technician--will be provided and will work closely with their Nigerien counterparts, whom Government agreed to provide (para. 5.01(f)). The aim of the unit will be to "manage" the network and program the maintenance, resealing, or strength- ening works, according to the demands of traffic and wear and to make the best use of available funds. A nationwide inventory of bridges and other large drainage structures is in progress under the Third Highway Project. The road management unit will also monitor and manage the nation's bridge resources assuring their structural integrity and programming their ti- mely maintenance. The small amount of equipment and vehicles required is listed in Table 3.3 and is included in the cost table (Table 3.4, item 2b). The unit, in conjunction with LCPC, will include a small research program in its pavement monitoring work, to correlate the development of roughness readings with changes in other parameters of pavement performance. Training 3.08 The successful training component in the Third Highway Project included a review of DTP's training needs and revealed a need for short- term and long-term training, both for regular employees and new recruits. These needs cannot be met by its existing resources, nor are suitable facilities available elsewhere in the state and the establishment of a new training center within the MTPU is needed (para. 3.11). Training is required both in the basic teaching of a trade and in the form of regular refresher courses. 3.09 DTP and its consultants have drawn up a training program for the short and medium term covering courses in the fields of civil and mecha- nical engineering, equipment and vehicle operation and administration. About 840 existing skilled employees need refresher training, and the - 18 - expansion to DTP's responsibilities call for the recruitment of a further 330 skilled employees by 1985 who will require basic training. Annual replacement of those retiring or leaving the service is currently at the level of 100 persons a year, who will also need to be trained (see Table 3.2). Once the center is fully operational students could be accepted from elsewhere in MTPU, other Government departments and civil works contractors. 3.10 The new training facility will be know as the Centre de Forma- tion et Perfectionnement des Travaux Publics (CFPTP-Public Works Training Center). The Government has already made available an excellent site of 15 ha. near Niamey Airport, which is well adapted to the buildings pro-- posed and provides a number of different rock and soil types, as well as surface drainage features for training of equipment operators and other civil engineering tradesmen. Training grounds for the different classes of vehicle and equipment will be built-up during the course of instruc-- tion. Design of the center was entrusted to BCEOM and was financed under the current project. Bids will be launched about August 1983 and con- struction could start in January 1984. 3.11 The proposed project provides for the full establishment of the new training center comprising the construction of workshops, classrooms and administrative offices, forming a total useable area of 890m2, and the provision of teaching, office and workshop equipment and furniture, technical assistance and operating funds for three years of operation of the center. The project will also provide earth-moving machinery and vehicles for operator and driver instruction and for administrative use, some by transfer from DTP's Direction du Materiel (DM), and some by pur- chase. Spare parts for the rehabilitation of the equipment to be trans- ferred, will be provided under the project. A list of the road equip- ment, vehicles and major items of fixed equipment to be provided is given in Table 3.3. The Government agreed during negotiations to transfer equipment from the Direction du Materiel, to provide a parts list and cost estimate for any rehabilitation required, together with written confirmation by the head of the training center that the equipment, after rehabilitation, would be suitable for the intended purpose (para. 5.01(g)). To ensure that prospective students do not experience any hardships and to compensate those who take on teaching duties in addition to their normal workload, the project provides for the payment of travel costs, an accommodation allowance for employees normally sta- tioned outside Niamey, and for the payment of honoraria to instructors and visiting lecturers. These payments would be in addition to their normal salaries. During negotiations, the Government agreed in principle to make these payments, but since the Government committee was then sit- ting on the country-wide question of per diem and travel allowances, - 19 - actual rates were not agreed upon 1/ (para 5.01(h)). To ensure prompt payment of these and other small day-to-day running expenses of the center, two Bank accounts will be established by the Government, one of which will be operated by the management of the center (para. 3.21). 3.12 The project will provide approximately 150 man-months of tech- nical assistance for the setting up and operation of the training center over a period of three years, to cover the following posts: Director of the Centre de Formation et Perfectionnement des Travaux Publics (CFPTP) Instructor in Administration Instructor in Civil Engineering Instructor in Mechanical Engineering Instructor in Equipment Use (Driver Instructor) Outline terms of reference for these posts are given as Annex 3. Under the Third Highway Project training component a Director of Training was provided by BCEOM who has been responsible for preparation of the train- ing component of the proposed project and for development of the archi- tect's brief for construction of the center. Due to BCEOM's close asso- ciation with the preparation of the training component and the need for continuity between the two projects, IDA has indicated that it has no objection to BCEOM being retained for the proposed project without soli- citing offers from other consultants (see para. 3.17). During the cur- rent project, five Nigerien employees of DTP have been trained as in- structors and it is intended that they will be the counterparts to the proposed technical assistance team. During negotiations, the Government agreed to the employment of the five-man technical assistance team and to provide the services of these five counterparts and of eight administra- tive employees (office staff, chauffeurs, etc.), free of charge to the project (except for honoraria, see para. 3.11) (para. 5.01(i)). It is not intended that the center should become independent of expatriate help after three years, but by the end of this period, it should be possible to reduce the team to three expatriates, and the Nigerien head of the center should truly and effectively share responsibility with his counterpart. C. Cost Estimates 3.13 The total cost of the project including contingencies is esti- mated at US$32.1 million equivalent or US$24.8 million (77.2%) net of _/ During appraisal, the following rates had been indicated: Students CFAF 1,000 per day + Actual travel costs Permanent Instructors CFAF 15,000 per month Counterpart Head of Training Center CFAF 25,000 per month Visiting Lecturers CFAF 1,000 per hour - 20 - taxes, and of which US$17.8 million (55%) represents the estimated foreign cost. Taxes include turnover tax (5%), contract registration tax (13%) and import duties. The impact of these taxes and duties has been taken into account in fixing the Association's disbursement percentage, and the Government has given an undertaking that no proceeds of the credit will be used for the payment of taxes. Outline costs are given below; a detailed breakdown is shown in Table 3.4. ------------------ $000 s --------____ Local Tax Foreign Total % Foreign Road strengthening and 4,896 5,715 14,241 24,852 57 resurfacing program Road Management Unit 219 262 530 1,011 52 Training 1,828 1,340 3,075 6,243 49 Total 6,943 7,317 17,846 32,106 of which contingencies 1,318 1,363 3,259 5,940 3.14 Estimates of the cost of strengthening, resurfacing and building construction are based on the prices taken from recent bids submitted in Niger for similar work. Operating costs for the training center have been estimated by BCEOM, based on costs of training under the Third Highway Project. The cost of traffic-counting equipment has been obtained by inquiries of potential suppliers. Supervision of civil works is estimatd at 8% of the value of the works supervised and technical assistance costs are based on current man-month rates in the existing BCEOM contract. The man-month rate net of tax is expected to be about $8,500 of which about $2,300 is accounted for by housing and subsistence, reflecting the high cost of living in a landlocked country. Other costs-- local office and travel expenses, etc.--will average about $1,960 per month. 3.15 Physical contingencies have been included at a rate of 10% (see Table 3.4). Since there is no discernible difference between inflation in France (the source of most goods and services required by the projeci) and in Niger, a single rate of price inflation has been used, calculated on the basis of the following annual rates: 1983-8.0%; 1984-7.5%; 1985- 7.0% and 6% thereafter. D. Procurement 3.16 The resurfacing works (about US$24.9 million) will be executed by contracts awarded following international competitive bidding proce- dures (ICB). No local contractors are considered technically qualified for the whole of any contract, and since no joint ventures with majority local shareholding have existed for more than a year, the domestic pre- ference will not apply. Local practice is for the production and trans- port of crushed stone, laterite and other building materials to be sub- contracted to domestic firms (para. 2.06). However, many local haulers are small operations and the contract rates per ton/km quoted by the main - 21 - contractor often differ substantially from what is actually paid to sub- contractors. To avoid this abuse the documents will call for the main contractor to name his sub-contractors and the agreed unit rates, and the contract will give DTP the right to audit sub-contractor payments. Bids were launched in June 1983. Bidding documents and the Government's choice of contractors are subject to review by the Association. Since 1981, bid opening has been public and the Association is satisfied with the correctness and impartiality of the country's procedures. A contract for the building of the training center (US$1.8 million) will be awarded following ICB, and in this case a local preference of 7 1/2% could apply. 3.17 The Government intends to invite proposals from a short list of consultants (with which the Association has concurred) for supervison of the periodic maintenance works (US$2.5 million). As BCEOM have been inti- mately involved with the development of technical and administrative methods and procedures used throughout DTP for many years, and have been equally closely involved with preparation of the training component, the Government has decided to retain BCEOM without further consultation for the training component. However, the Government is determined to nego- tiate firmly on man-month rates, and IDA has supplied information on appropriate current rates elsewhere in the Region for comparison. Road construction equipment not obtained by transfer from DM, as well as vehi- cles and workshop equipment (US$660,000) will be purchased by ICB. Other equipment for the training center and equipment for traffic counting, pavement marking and roughness measurement (US$230,000) will be purchased by international or local shopping. Fuel and other supplies for the training center will be purchased from local suppliers at current tax- paid prices. Draft consultants contracts and all documents in connection with the purchase of road building equipment and vehicles will be subject to prior review. For other equipment and material purchases, contracts above $50,000 will be reviewed prior to signature, and those below $50,000 will receive post-contract review. Execution 3.18 Responsibility for project execution will rest with MTPU, mostly through DTP. Contracts will be supervised by consulting engineers on behalf of DTP's engineer for new works. The teams responsible for the training center and the Road Management Unit will report to the Director of Public Works and will consist of expatriates and their counterparts. The center will become an integral part of DTP, and will work through the Services Departementaux for the recruitment of students. DTP will assume over-all responsibility for the equipment for traffic counting and pave- ment roughness measurements and the coordination of the related research and studies. E. Financing, Disbursements and Reporting 3.19 The project is being jointly financed by the Association and the Government. The IDA credit of $23.6 million will finance 95% of the net of tax cost. The Government will contribute US$8.56 million equivalent - 22 - in local currency, including $7.32 in taxes. Government agreed during negotiations to make these funds available (para. 5.01(j)). The IDA Credit will be disbursed against full documentation (para. 3.20), as follows: Component % of Total Cost 1/ Road Works 74 Building Works 50 Technical Assistance & Supervision 85 Equipment 100% of foreign & 50% of local The financing plan is shown below: US$ million Local Taxes Foreign Total IDA 5.70 -- 17.85 25.55 Niger 1.24 7.32 __ 8.56 Total 6.94 7.32 17.85 32.11 3.20 The disbursement schedule (Table 3.5) which shows a credit closing date of October 31, 1989 (eight months after the expected comple- tion date), is thought to be realistic, in view of past performance. Bidding documents are available and contractors have been pre-qualified; therefore, the "West Africa Highways IDA" disbursement profile has been condensed by one year. Disbursement applications will be prepared and forwarded to Washington by the Disbursement Officer in the Ministry of Planning, on the basis of documentation supplied by DTP. Withdrawal applications in the past have always been competently handled, but with delays; payments made direct to suppliers by the Government are usually unacceptably slow. The credit agreement specifies that disbursement re- quests be forwarded to the Association within 45 days of receipt of an invoice. Furthermore, the Government will take measures to ensure tha-t its own payments will be made within 90 days of receipt of an invoice (para. 5.01(k)). 3.21 In order to ensure speed and flexibility in making payments for the day-to-day expenses of the training center, the Government will es-- tablish an account (Project Account "A") at an acceptable commercial bank in Niamey. Using funds from this account, the Ministry of Finance will establish a cash advance fund (Project Account "B"), in local currency, at an acceptable bank, which may be drawn on by the center managers. The Ministry of Finance will reimburse Account B from Account A on the basis of supporting documentation. The initial amounts suggested for esta- blishment of the accounts are: Account "A": CFAF 9 million; Account "B": CFAF 3 million. IDA will reimburse the Government in the normal way for 1/ Including Niger taxes when applicable. - 23 - its share of items financed out of these accounts. The Government agreed at negotiations to open these accounts, and before effectiveness, to deposit CFAF 9 million in Account A and then from this account withdraw CFAF 3 million for deposit in Account B, and to make reimbursements of the accounts in a timely manner. During negotiations the Government also gave assurances: (a) that these accounts would be audited by independent auditors acceptable to IDA 1/ and that the audits would be conducted in accordance with appropriate auditing principles consistently applied; (b) the audit reports would be of such scope and in such detail as IDA might reasonably request; and (c) the accounts and audit reports would be sub- mitted to IDA for review within six months of the close of the Govern- ment's fiscal year (para. 5.01(1)). 3.22 As a further condition of effectiveness the Government must demonstrate that at least CFAF 1,000 million 2/ have been inscribed in the 1983/84 budget under appropriate headings to meet its contribution to the cost of the project in that year. During negotiations, the Govern- ment agreed to make available the balance of funds required for the proj- ect up to a total of $8.56 million equivalent, in a timely manner. 3.23 It is expected that the project will be substantially completed by the end of June 1988 and the credit fully disbursed by December 1988. DTP will forward the consultants' monthly progress reports on periodic maintenauce contracts with their own comments under a covering letter each month, and with the help of the consultants for training, will forward a report on training center activities every two months. The Road Management Unit will prepare an inception report after six months, setting out its plans for meeting its mandate; thereafter, quarterly reports on progress will be produced. IV. ECONOMIC EVALUATION A. General 4.01 As defined, the proposed project addresses priority needs in the highway sector, which are training, the strengthening of the planning capability of the DTP and assistance in the execution of part of the periodic maintenance program for paved roads. Maintenance works will contribute to a reduction of vehicle operating costs, directly benefiting vehicle owners. It is expected that a significant part of the benefits will be passed on to consumers as domestic road transport in Niger is competitive. The road maintenance component, by providing for the plan- ning of timely surfacing and strengthening works, will limit deterio- ration and avoid the need for premature reconstruction; this approach 1/ For these purposes the word "independent" may be applied to a Government auditing service, with IDA's approval. 2/ As follows: FNI CFAF 140 million EN CFAF 860 million. - 24 - will also tend to keep down vehicle operating costs by limiting road roughness. 4.02 The economic analysis shows the proposed three-year periodic maintenance program to be well justified, with an economic return of about 43%. Details are given in Tables 4.1 to 4.3. 4.03 Another major benefit of the project will be its institutional impact, strengthening the planning and implementation capability of DTP and establishing the training function on a permanent basis. The con- struction of the new training center and associated technical assistance and training programs will provide opportunities for DTP employees to improve their skills or retrain in other fields. Through its continuing dialogue with the DTP, IDA will provide assistance to the new Road Mana- gement Unit to enable DTP to strengthen its basic information collection capability (such as traffic data, vehicle operating costs, road user charges as well as general information on the road transport industry) needed to manage the sector, and to improve the planning capability of the MTPU during the preparation of the next Economic Development Plan (1984-89). No attempt has been made to estimate a rate of return for these institutional improvements but they are essential for the long-term efficiency of the Ministry. B. Bituminous Roads Periodic Maintenance Program 4.04 To cope with the rapid growth of traffic following the uranium boom, Niger extended its paved road network considerably during the 1970s.1/ This expansion will result in a rapid increase of periodic preventive maintenance expenditures during the coming years, for reseal- ing and overlaying. A preliminary estimate 2/ suggests that about CFAF 12 billion will be required annually between 1983 and 1990, for periodic maintenance, or about five times the present level. 4.05 Periodic maintenance is executed by contract and is financed mainly by foreign aid. The full project cycle (identification, prepa- ration, appraisal, financing, etc.), plus possible administrative delays explain why it usually takes several years between the identification of the distress on a section of road and effective execution of the repair works. Since road deterioration is an accelerating process, it can happen that, if serious damage has taken place to the base course or even the foundation, a totally different task from that appraised--such as full reconstruction--might be needed. The cost of deferred maintenance due to a poor monitoring system can be considerable. Single coat reseal- ing in Niger costs about CFAF 4 million per km,3/ (economic cost) whereas the cost of pavement strengthening is about CFAF 17 million. In case of 1/ From about 500 km in 1970 to 2,900 km in 1982. 2/ BCEOM. Study of the Road Construction Industry. Report on the Highway Maintenance Program - 1981. 3/ Haul distances for aggregates in Niger are usually long. - 25 - serious damage needing full reconstruction of the road base, the cost can reach CFAF 48 million per km. Based on these factors,it is imperative to assist Niger not only in the timely financing of periodic maintenance but also in developing a programmed and preventative approach to its exe- cution. This assistance will tend to minimize costs, phase expenditure, steer it to where it will be most effective, and avoid costly reconstruc- tion. 4.06 Better programming of works will allow a steadier flow from year to year and will also help Niger to develop its local construction indus- try. Local contractors do not normally have the opportunity to operate abroad in times of a decline in domestic activity; a steady flow of work at home should give them the confidence to invest in equipment and hire qualified personnel. 4.07 The resurfacing and strengthening program of 374 km identified by the Government, will provide two categories of direct benefits; the deferred cost of pavement reconstruction and the avoided cost of in- creased vehicle operating costs caused by increasing road roughness. The extent and cost of the works have been estimated by consultants, BCEOM. For the economic evaluation, it has been assumed that two periodic main- tenance operations will be needed during the life (20-25 years) of a road. In the analysis, the interval of time between two periodic mainte- nance operations is taken as 7 to 8 years. This average figure has been adopted as the maximum period of postponement of periodic maintenance works in the "without" case. This average time interval has been varied to take into account specific characteristics of each section, such as the present pavement strength, traffic composition and growth. (Table 4.2) 4.08 The economic evaluation shows that the overall rate of return of the maintenance program is about 43% (Table 4.3). The highest rates are observed on roads with the highest traffic, such as Niamey-Tillabery and Niamey-Koure, which include urban and suburban traffic. These roads are also the oldest (built in 1971 and 1973 respectively) and any significant postponement of works would lead to rapid deterioration. The lowest rate of return, 30% is observed on the section Tsernaoua-Tahoua where the lowest traffic level is recorded (290 vpd) and the sections of RN 1 east in the area of Dogondoutchi and Birni N'Koni where strengthening works are the most costly (see Chapter III, Table 3.1). All these rates of return are quite satisfactory. Sensitivity and Risk 4.09 MTPU is fully aware of the importance of road maintenance, in particular of the paved road network. It has one of the best records in this field in the region, and there is no doubt that there is the will to implement this project as successfully as it has previous projects. In addition, the proposed continuous monitoring service will allow DTP to modify the program in order to maximize benefits for a given maintenance budget. Sensitivity tests show that even under combined unfavorable events such as: (a) average traffic growth reduced to 5% p.a. instead of - 26 - 6.5%; (b) maintenance costs increased 20%; and (c) vehicle-operating costs savings reduced 25% --the average rate of return will still be 26%. The lowest rate of return would be on the Tsernaoua-Tahoua section, a still acceptable 15%. V. AGREEMENTS REACHED AND RECOMMENDATIONS 5.01 During negotiations the Government agreed to the following: (a) to improve the collection and analysis of basic transport statistics and accounts (paras. 2.10); (b) to provide for road maintenance in the National Budget for FY83/84 a minimum amount of CFAF 1.7 billion, and to maintain the real value of htis amount in subsequent years following consultation with the Association on the road maintenance budget, and modified as may be required by the country's financial situation (para. 2e14); (c) to cause MTPU, during the life of the project, to struc- ture its investment program for new works, so as not to prejudice minimum amounts established as targets for its maintenance budgets (para. 2.15); (d) to cause MTPU to continue to communicate to the Bank on an annual basis, for information and comments, its overall highway investment and maintenance program (para. 2.15); (e) to discuss with the Association before contracting any changes in the periodic maintenance program to be financed under the project (para 3.06); (f) to provide suitable counterparts for the Road Management Unit (para. 3.07); (g) to transfer certain items of equipment from DM to the training center and to provide a written statement attest- ing to their suitability (para. 3.11); (h) to pay travel expenses, accommodation allorTances and hono- raria for students and lecturers (para. 3.11); (i) to make available the services of five instructors and eight supporting staff to the training center, free of expense to the project (para. 3.12); (j) to ensure that the required counterpart funds are promptly available and include amounts required for payment of all taxes and import duties (para- 3.19); - 27 - (k) to forward to the Association all requests for withdrawal of funds from the Credit within 45 days of a request for payment, and to make its own payments within 90 days of receipt by DTP of an invoice or other request to pay (para. 3.20); and (1) to have the project accounts "A" and "B" audited annually (para. 3.21). 5.02 As conditions of credit effectiveness the Government agrees that it will demonstrate to the Association's satisfaction that: (i) funds of CFAF 1,000 million have been inscribed in its 1983/84 budget to meet its contribution to the cost of the first year of the project (para. 3.22); and that (ii) it has established Project Account "A" of CFAF 9 million and Project Account "B" of CFAF 3 million (drawn from Project Account "A") for the day-to-day expenses of the training center (para. 3.21). 5.03 Subject to satisfactory agreement on these points, the proposed project is suitable for a credit of 21.9 million SDRs equivalent ($23.6 million) to the Republic of Niger on standard IDA terms. NIGER FOURTH HIGHWAY PROJECT Development of the Highway Network, 1970-1982 (km) 1970 1974 1975 1976 1977 1978 1979 1980 1981 1982 A. Main Network _ Paved roads 488 927 1,530 .,751 1,765 1,835 2,024 2,673 2,768 2,914 Gravel roads (8m) 2,043 1,984 2,086 2,140 2,308 2,237 2,395 2,658 3,132 3,129 Earth roads (5m) 898 640 439 439 483 483 452 424 304 204 Trackst Improved 998 470 637 637 874 874 834 358 302 302 Ordinary 2,322 2,951 2,260 2,016 2,158 2,158 1,950 2,104 2,041 1,998 Total 6,749 6,972 6,952 6,983 7,588 7,587 7,655 8,217 8,547 8,547 B. Unclassified Network Tracks -- -- 11,000 to 12,000 ---------- 1/ Network maintained by NTPU. "3 Source: MTPU 05/83 - 29 - Chapter TT Table 2, 2 NIGER FOURTH HIGHWAY PROJECT New Vehicle Registrations, 1970-1980 1970 1971 1972 1973 1974 1975 1976 1977 1978 1979 1980 Cars 835 690 745 744 842 816 725 1,280 1,208 1,735 2,005 Vans 231 506 416 485 397 354 576 697 717 1,001 1,027 Trucks 154 108 168 215 216 251 166 232 276 431 375 Tractors 98 50 50 85 78 123 130 207 287 259 202 Trailers 47 21 38 59 53 51 109 160 185 214 164 Buses 33 27 33 49 68 69 89 67 104 219 266 Total 1,398 1,402 1,450 1,637 1,654 1,664 1,795 2,643 2,777 3,859 4,039 Source: Ministry of Public Works, & Housing, 1981 NIGER FOURTH HIGHWAY PROJECT Consumption of Petroleum Products, 1970-1981 (in m3) Gasoline Aircraft Incl. Jet Prop. Super Diesel Oil Kerosene 1970 11,986 2,807 19,469 39,037 8,222 1971 11,038 2,315 21,212 n.a. 2,886 1972 10,169 2,913 22,860 n.a. 2,950 1973 15,151 4,029 25,690 62,652 3,423 1 1974 12,354 4,112 23,391 61,941 2,486 w 0 1975 19,646 3,175 27,531 68,659 3,833 1976 10,680 2,835 28,712 74,578 4,229 1977 13,493 2,445 33,920 77,792 4,165 1978 20,878 3,036 36,193 102,461 4,455 1979 19,252 3,251 41,861 124,114 5,237 1980/1 18,055 2,810 46,800 133,799 5,516 1981/1 18,000 n.a. 54,000 120,000 n.a. /1 Estimate. F d Source: Ministry of Public Works and Housing, and Bank Estimate, 1981. 05/83 - 31 - Chapter II Table 2.4 NIGER FOURTH HIGHWAY PROJECT Structure of Retail Price of Oil Products, 1982 (Niamey Prices) CFAF/hectoliter (hl) SUPER REGULAR DIESEL OIL F.O.B. Parakou 10,430,20 10,627,76 10,558,45 Transport Parakou/Niamey 1.381,69 1,236,54 1,344,65 C.I.F Niamey 11,811,89 11,864,30 11,903,10 Statistic tax 15,05 15,13 14,49 Custom duties 60,18 60,52 11,59 Entrance tax 1/ 589,20 589,80 394,80 Tax on production 329,22 330,37 260,12 Tax specific 1,800,00 1.800,00 600,00 Transit fee 128,10 128,10 128,10 Tax on transit fee 19,14 19,14 19,14 Losses depot Niamey 128,06 103,71 74,79 Losses transportation 58,09 46,76 45,41 Depreciation equipment 467,92 150,00 50,00 Overhead 400,00 380,00 245,00 Financial charges 568,77 418,71 376,39 Profit 170,00 110,00 90,00 Brokers 106,33 92,46 90,84 Benefit retailer 600,00 420,00 340,00 Cost of delivery 100,00 70,00 70,00 Other charges and rounding 2.648,05 890,03 867,69 Total retail price/hl 20,000,00 15.000,00 13.000,00 Price per liter (CFAF) 200 150 130 1/ Import duty. Source: MTPU, DTT, 1982. 05/83 - 32 - Chapter II Table 2.5 REPUBLIC OF NIGER FOURTH HIGHWAY PROJECT Total Highway Expenditures (1979-82) (million CFAF) 1979 1980 1981 1982 Total Average/Year General Budget 1/ 1,090 1,140 1,260 1,440 4,930 1,233 BAEMTP 2/ 200 497 400 469 1,566 392 1,290 1,637 1,660 1,909 6,496 1,625 FNI 3/ 1,600 1,319 1,200 1,100 5,219 1,304 Total Government Expenditures 2,890 2,956 2,860 3,009 11,715 2,929 External Aid 2,261 5,341 6,318 10,448 24,368 6,092 Total Public Financing 5,151 8,297 9,178 13,457 36,083 9,021 Tahoua-Arlit Road (Private financing) 6,590 6,490 4,330 -- 17,410 4,352 Grand Total 11,741 14,787 13,508 13,457 53,493 13,373 1/ Mainly expenditure for personnel and operations of services. Estimate about 37% of General Budget of the MTPU. 2/ Annex Budget for exploitation of equipment of the Ministry of Public Works. Difference between expenses and revenues (equilibrium subsidies). 3/ National Investment Fund. Source: Ministry of Public Works and Housing, Bank estimates. 05/83 NIGER FOURTH HIGHWAY PROJECT Government Highway Maintenance Expenditures, 1971-1981 (million CFAF) T971 1972 1973 1974 1975 1976 1977 1978 1979 1980 1981 A. National Budget Operating expenses of service/I 35 35 35 35 36 40 35 40 38 39 32 Personnel /1 105 70 72 73 131 143 13 10 15 47 52 Routine maintenance works 515 545 580 615 496 560 747 835 925 1,233 1,248 655 656 687 723 663 743 795 885 978 1,319 1,332 B. PNI /2 Periodic maintenance works 163 199 238 193 200 300 350 200 400 400 400 C. Total 818 855 925 916 863 1,043 1,145 1,085 1,378 1,719 1,732 /1 Related to highway maintenance operations only. /2 National Investment Fund. Source: MTPU BCEOM, Bank estimate. X6r/ 06/82 NIGER FOURTH HIGHWAY PROJECT Estimates of Government Revenue from Road Users, 1970-1981 (CFAF millions) Taxes levied on fuel Other Taxes On Imports of Vehicle A /1 B /2 Vehicles Spare Parts Licensing Registration Total 1970 448 168 428 73 21 25 1,163 1971 430 151 516 92 21 25 1,235 l 1972 461 182 425 94 27 23 1,212 U 1973 513 215 650 161 35 52 1,625 1974 556 211 670 196 40 58 1,730 1975 560 250 570 200 40 72 1,692 1976 666 - 600 210 45 104 1,625 1977 817 - 620 220 50 132 1,839 1980 1,540 - n.a. n.a. 62 223.0 2,700 E 1981 1,839 - n.a. n.a. 72 230.0 3,100 E /1 Revenues directed to general budget. H C /2 Revenues directed to National Investment Fund (FNI). /3 Mission Estimate. 1978/79 data not available. Source: Ministry of Public Works and Housing, 1981 05/83 - 35 Chapter.II Table2. NIGER FOURTH HIGHWAY PROJECT Spectrum of Axle Loads (trucks and semi-trailers) Niger Trucks Total Tons Only Trucks 0-2 _ _ 2-4 3.8 3.4 4-6 21.4 20.2 6-8 21.4 21.4 8-9 11.4 8.7 9-10 9.1 9.0 10-11 9.9 10.1 11-12 6.4 6.8 12-13 6.4 6.7 13-14 2.9 4.4 14-15 3.7 3.7 15-16 3.0 3.3 16-17 0.6 1.8 17 - 0.4 Total 100 100 Source: BCEOM, 1980. 06/82 3 36 - Chapter III Table 3.1 NIGER FOURTH HIGHWAY PROJECT Road Strengthening Program: Description of Works Year ADT 1981 Basic Cost Road Built (% CV'5) Works CFAF Millions March 1982 RN 1W Niamey-Tillaberry 547 44 km monocouche 1/ 190 PK 0-62 1973 (17) 18 km bicouche 2/ 167 Supplementary Works 3/ 11 368 RN 29 Tsernaoua-Tahoua 340 28 km bicouche 404 PK 0-118 1975 (23) 90 km monocouche 589 1.5 km Drainage & Pavement Repairs PK 69 42 Supplementary Works 97 1,132 RN 1E PK 10-50, 210-220 1977 714 50 km monocouche 269 (20) Supplementary Works 35 304 PK 270-320 1974 360 50 km bicouche 725 (31) Supplementary Works 67 792 PK 320-414 1974 268 94 km bicouche 1,518 (16) 30 km strengthening 4/ 644 Supplementary Works 33 2,195 Total Base Cost 4,791 Total Programme 374 km 1/ Single bituminous surface dressing. 2/ Double bituminous surface dressing. 3! Regulating and other patching, making-up shoulders, culvert repairs, etc. 4/ Overlaying with 15-25 cm laterite. Source: BCEOM Estimates Chapter !II Table 3.2 NIGER FOURTH HIGHWAY PROJECT Staff Training Proeram -raining Program 1983-;985 Annual Training Pr-grm After 1985 2 R.p emenc Annual Course Sc ruc rure- Existing Personnel New Recr its Personnel Annual Refresher Training C e Ue Basic Training Basic Trainine Basic Trainin 1985 5 After4. course mrsan no. _ nof course no of no. of rsh masudntsno f n f oo oo length er stnts c course students uarss students frequency tent courses k- ~~~~~~~4~~~~rcours , J ~~~~~~~~~~~~~~per ear years per yea per year Civil Engineering Assistant District Chiefs 5 15 20 3 2 i 2 3 17 2 Brigade Chiefs 4 1 5 7 1 3 1 0.5 2 5 Sector Chiefs 2 | 15 30 3 9 1 Z 3 20 2 Foremen 2 20 80 5 19 1 :0 I 50 3 Surveyors 12 5 _10 | 2 0.5 5 5 1 Sub Total 137 [ 11 54 6 15 j 97 I 9 Mechanical Engineering I Head of Workshops 8 15 2 1 3 1 0.2Z 5 2 1 Section Heads I (4 specialties) 4 15 4 4 3 1 0.5 5 4 I Chief mechanics 4 8 12 2 13 2 10 1 13 2 Equipment inspectors 8 15 4 1 2 1 0.3 5 3 1 Service station chiefs 4 8 8 1 1 1 1 3 5 1 Brigade mechanics S a 30 4 20 3 5 1 25 3 Workshop mechanics I I I (4 specialties) 4 8 70 4x2 29 4 10 1 50 7 Mechanic helper 5 j 8 30 4 20 3 6 1 30 4 Light vehicle drivers I 10 80 B 30 3 11 1 55 6 Tru:k drivers 2 5 150 I 30 65 1 13 21 3 months 108 I 22 Equipment operators 2 3 120 40 75 25 19 2 Z nths 98 33 Sub-Tocal| 510 I 103 261 57 84 393 8; Administration I Administrative Assistants 8 | 15 15 1 2 1 0.8 5 9 Office clerks 6 | 15 20 2 3 1 2.3 2 12 1 Store keepers 6 15 30 i 2 3 1 3.3) 2 17 2 Cost clerks 6 15 30 2 3 I 1 3.31 2 17 I 2 Head draftsman 8 5 - - 3 1 0.3 2 1 Draftsmen 8 8 5 1 5 1 0.5) 5 3 I Clerk/typists 2 5 50 14 2 1 5.2 1 26 6 Radio Operacor 2 10 20 2 1 1 1 5 11 1 Sun-Total i170 24 2 8 16.7 97 !5 I 11_I_ _I- - I- - -I GRAND TOTAL 843 138 337 1. 107 58 105 T1 This estimated course length is for basic training of existing personnel and refresher courses if tne empiovees to be started after 1985. This is a conservative assumption for new recruits and replacement personnel and adjustments v7ill be made, if needed, to take inco account the background and level of qualification of students to be recruited. 2/ To fill the void vithin che actual organization chart. 3/ Estimated curnover: 5% for professional and supervisors; 70% for skilled Manpower. 4/ Assuming that every employee will follow a refresher course every two years. 07/82 - 38 - Chapter III Table 3.3 NIGER FOURTH HIGHWAY PROJECT Equipment List for the Training Center Office Equipment Furniture for Offices, Classrooms, and Communal Areas Audio Visual Equipment and Teaching Aids Workshop Equipment & Tools for Heavy Duty and Vehicle Repairs Service Station Equipment Administration Vehicles 1 Station-Wagon 2 Pick-ups 1 Mini-Bus, 20 seats Equipment for Driver and Operator Training New Equipment 1 Dump Truck I Water Tanker 6000 1 1 Single Axle Trailer I Vibrating Compactor I Concrete Mixer Second Hand Equipment 1/ 1 Bulldozer 150 hp I Tyred Loader 90 hp I Grader 120 hp 1 Agricultural Tractor Spare Parts for Rehabilitation Equipment for Road Management Unit I Roughness Measuring Device 1 White Line Marking Machine Road Marking Paint 2 Station-Wagons 1/ By transfer from P.C.M. Source: BCEOM Training Study. 06/82 - 39 - CHAPTE1( I It Table 3.4 NICER FOURTH HIGHWAY PROJECT Cost Estimates - CFA Francs Millions 2 US$ '000 Local Tax Foreign Total Local Tax Foreign Total X Foreign Periodic Maintenance 1. Strengthening and Resealing Program (374 km) a) Civil works by Contract 1,230 1,471 3,692 6,393 3,619 4,326 10,859 18,804 58 b) Supervision (8%) 130 117 265 512 381 344 778 1,503 51 Contingencies: Physical 10% 136 159 395 690 400 467 1,163 2,030 Price 11.25% 169 197 490 856 496 578 1,441 2,515 1,665 1,944 4,842 8,451 4,896 5,715 14,241 24,852 .2. Road Management Unit a) Technical Assistance 40 man-months 58 51 112 221 170 151 330 651 51 b) Equipment - 19 30 49 - 56 89 145 62 Contingencies: i1hysical 10% 6 7 14 27 19 22 41 82 Price 15% 10 11 24 45 30 33 70 133 74 88 1SO 342 219 262 530 1.011 3. Training a) Construction of Training 150 127 279 556 441 374 821 1,636 50 Centre including VRD and Supervision b) Equipment for Offices, - 65 67 132 192 196 388 50 Classrooms, Workshops c) Equipment and Spare Parts - 25 98 123 - 74 289 363 80 for Operator Training d) Operating Costs 69 6 - 75 203 19 - 222 0 e) Technical Assistance 150 276 142 417 835 811 418 1,225 2,454 51 man-months Contingencies: Physical 10% on a-e 58 39 69 166 170 115 204 489 Price: 7% on a 13 10 20 43 37 30 59 126 151 on b-e 56 40 96 192 166 118 281 565 622 456 1,046 2,122 1,828 1,340 3,075 6,243 TOTAL 2,361 2,486 6,068 10,915 6,943 7,317 17,846 32,106 x (21.6) (22.8) (55.6) (100) (21.6) (22.8) (55.6) (100) 1/ Prices include all applicable taxes, at January 1982 prices 2/ Rate of exchange CFAF 340 = US$ 1.00 - 40 - Chapter III Table 3.5 NIGER FOURTH HIGHWAY PROJECT Estimated Schedule of Disbursements from the Credit, FY1984-1989 (Us$000's) IDA Fiscal Year and Cumulative Disbursement Half Year Ending at End of Half Year FY84 December 83 1,500 June 84 3,500 FY85 December 84 6,200 June 85 9,200 FY86 December 85 12,200 June 86 14,000 FY87 December 86 17,500 June 87 19,500 FY88 December 87 21,000 June 88 23,000 FY89 December 88 23,600 The Project is expected to be completed by December 31, 1988. The Credit is expected to be closed on October 30, 1989 05/83 Cha ter IV 4 41 - Table .1 NIGER FOURTH HIGHWAY PROJECT Economic Evaluation of Paved Road Maintenance Program Vehicle Operating Costs (CFAF/km, January 1983, prices net of Taxes A. Standard Vehicle Operating Costs/i Road conditions_ _____Paved Road Gravel Road 1 2 3 4 1 2 3 4 Passenger cars 70 81 113 164 89 101 136 194 Vans, pick-ups 67 77 107 157 81 92 124 177 Light trucks (4t) 122 140 195 284 141 152 185 242 Medium trucks (lOt) 209 237 310 437 260 280 342 445 Semi trailers (22t) 307 345 455 641 381 410 500 652 B. Vehicles Operating Cost by Section Road conditions 1 1.5 2 2.5 3 1. RNIE Niamey -Tillabery 94 100 108 120 146 (Flat/rolling 17% trucks 2. RN 7 Dosso - Gaya 138 146 157 176 209 (Flat 54% trucks) 3. RN 29 Tsernaoua - Tahoua 102 108 116 130 158 (Flat, rolling 23% trucks) 4. RN IE Niamey-Koure; Kore - 1Mayroua 105 111 120 134 162 (Flat 25% trucks) 5. RN IE Dogon doutchi 113 120 129 144 174 (Flat 31% trucks) 6. RN IE Birni - N1'Koni 92 98 106 118 145 (Flat 16% trucks) /1 Source: Sahel Consult Feasibility of Niamey-Say road (November 1981). Based on BCEOM definition Transportation Plan. Cost for flat/rolling road ranging from road conditions: 1 - excellent; 2 - good; 3 - medium; and 4 - poor. NIGER FOURTH HIGHWAY PROJECT Economic Evaluation of Paved Road Maintenance Program Basic Assumptions of Cost Benefit Analysis RN IW RN 29 RN IE RN IE RN IE Niamey Kore Section Niamey-rillabery Tsernaoua-Tahoua Koure Mayroua DoRondoutchi Birni N'Koni P.K. 0-62 0-118 10-50/210-220 270-320 320-414 Construction date 1973 1975 1977 1974 1974 Length (km) 62 118 50 50 94 Traffic 1981 Total 460 290 680/360 305 367 Irucks (Z) 17 23 20/30 31 16 Growth traffic (Z p.a.) 5.5 7 8.5 5.5 5.5 Nature of works Resurfacing Resurfacing Resurfacing Resurf./Strength. Strengthening eonnomic cost/ks (CFAF 10 6 4.8 7.9 5.0 13.1 19.3 rconomic cost total (CFAF 10 6) 304 927 252 655 1,816 Date of execution 1984 1934 1984 1983 191985/86 Road quality (actual/future) 2/3 1.5/3 2/2.7 2/2.5 1.7/2.5 Maximun postponement of maintenance works (no. years) in the "without case 7 7 4 5 7 Date of next periodic maintenance works in the "without" case 1991 1992 1988 1991 1988/89 Nature of works at this date Strengthening (43 km) Strengthening (75 km) Strengthening (10 km) Strengthening (40 km) Strengthening (20 km) rehabilitation bicouche (40 km) bicouche (30 km) bicouche (10 km) rehabilitation (40 ki) bicouche (18 km) reconstruction (30 km) Cost/ks (CFAF 106 1S 14 8 24 2 8 Total cost (CFAF 10 ) 915 1,670 390 1.180 2 ,620 Vehicles Operating Cost (CFAF/km) HV Actual 108 108 120 129 118 s with project (minim./maxi.) 95/120 106/158 111/145 117/136 98/124 ;ithout project ( ) 108/j46 108/190 123/145 129/174 | 98/144 NIGER FOURTH HIGHWAY PROJECT Economic Evaluation of Paved Road Maintenance Program Economic Return/Sensitivity Test Length IRR (%) of the Traffic Economic Section 1981 Cost Best Section (km) v.p.d. (106 CFAF) Estimate Sensitivityl' 1. Niamey - Tillabery (RN 1W) 62 460 304 62 40 2. Tsernaoua - Tahoua 118 290 927 30 15 4 3. Niamey - Koure; Kore - Mayroua 50 680/360 252 96 51 4. Dogondoutchi section 50 305 655 36 24 5. Birni N'Koni section 94 307 1,816 49 27 All sections 374 3,954 43 26 1/ Assuming: (i) rate of growth of traffic reduced 25% (average of 5.5% p.a. instead of 6.5% p.a.); (ii) periodic maintenance costs increased +20% and savings on vehicle operating costs reduced H 25%. 05/83 - 44 - AANNEX 1 Page 1 NIGER FOURTH HIGHWAY PROJECT Outline Data Collection System Background 1. The 2,200 km extension of the paved road network during the :Last decade and the simultaneous rapid growth of traffic has already lead to a significant increase of periodic maintenance works. This trend will accelerate in the coming years. The planning and programming of these works and the preparation of the associated financing plans requires a wide range of technical and economic information. It is necessary to improve the MTPU's system of data collection and to delegate responsibility for this to a specific service, preferably to the principal user of the data. The Road Management Unit 2. A Road Management Unit will be created within the Directorate of Public Works, and will (i) coordinate the activities of other services involved in the management of the road network; and (ii) advise the Director of Public Works on all matters related to highway maintenance. Since this new unit will be the major user of data on the sector, it will be responsible for data collection under the following headings: (i) Establishment of a basic system of traffic counting and Periodic Updating (maximum periodicity: 3 years). Analysis of traffic growth. (ii) Axle load characteristics. Number of equivalent standard axles (13t) by section. Cumulative axle load by section since date of construction of works. (iii) Summary tables of the distribution of paved network according to traffic (ADT) and number of equivalent standard axles. (iv) Classification of Highway Conditions; at least four classes of highway conditions should be defined based on roughness and deflection measurements, visual observation of surface defects and failures; extent and nature of drainage problems. (v) Estimated date of next periodic maintenance works and nature of works. (vi) Updated average costs (financial and economic) of standard periodic maintenance procedures on paved roads (monocouche, bi-couche, rechargement, full reconstruction, etc.). - 45 ~ ANNEX 1 Page 2 (vii) Updated operating costs of the equipment of the Directorate of Materiel and review the adequacy of tariffs for rentals of equipment. (viii) Updating of vehicle operating costs (financial and economic) for a range of road conditions. (ix) Actual annual expenditures for periodic maintenance works on the paved network. Unit costs by section and category of road. (x) Actual road users charges (specific tax, vehicles registration and licensing fees, custom duties on vehicles, spare parts, oil products, excise taxes on road transport operators). (xi) Forecasted and actual financing plan of paved road maintenance program. (FNI, local banks, bilateral or multilateral aid). (xii) Spectrum of vehicles axle loads. (Updated every four years). General Information on the Road Transport Industrv Concerns information collected by other services but collated by the Road Management Unit. (i) General trends of road traffic growth in terms of tons/vehicle-km, ton/km by type of road and type of traffic. (ii) International flows by point of entry. (iii) Fuel consumption. (iv) Fuel price structure. (v) New vehicle registration statistics. (vi) Updated estimate of existing vehicle fleet in operation. (vii) Inventory of Road Transport Operators. (viii) Official and actual tariffs for road transport freight and passengers for selected itineraries. (ix) Total public expenditures for the highway sector (a) by nature of expenditure Overheads, routine maintenance, periodic maintenance, earth and paved roads, road construction. (b) by budgetary allocation Budget General, BAEMTP, FNI, External Aid by donors. - 46 - ANNEX 2 NIGER FOURTH HIGHWAY PROJECT Documents Available in the Project File 1. Plan de Transport, BCEOM, 1978. 2. Training Report, Third Highway Project BCEOM 1978. 3. CFPTP, Feasibility Study, BCEOM 1980. 4. CFPTP, Avant Projet Sommaire, BCEOM 1981. 5. Road Maintenance Program, BCEOM (1981). 6. Deflection Survey of the Paved Network in Niger. Three reports, BCEOM (October 1980). 7. Feasibility Study of the Niamey-Say Road (Sahel Consult), September 1981. 8. Feasibility Study of the Malbaza-Dabnou Road, BCEOM (1980). 9. Study of the Domestic Construction Industry, BCEOM (September 1981). 10. Directorate of Public Works: Annual Report, 1979-80. 11. Study of the Influence of Axle Load on Roads and Bridges in Niger, Technical Report, BCEOM (1980). 12. Niger's Five Year Economic Development Plan, 1979-83. - 47 - ANNEX 3 Page 1 NIGER FOURTH HIGHWAY PROJECT Technical Assistance to the Training Center Outline Terms of Reference Background 1. Niger is a vast landlocked country and is very dependent on the maintenance of good internal and external road links. Literacy and higher levels of education are low and the capacity of existing trade training organizations is limited. The Ministry of Public Works, and Urbanism (MTPU) through its Directorate of Public Works (DTP) is respon- sible for the maintenance of 7,500 km of roads and tracks; for this task it employs 1,800 staff and has a large fleet of earth-moving equipment and vehicles. Under the Third Highway Project, systematic training of these employees was begun in a temporary training center, which is now being returned to its former use. However programs and course material have been developed and five Nigerien instructors have been trained. 2. It is now required to establish the training effort on a perma- nent basis in the new training center in Niamey, currently under con- struction. This effort will encompass the full range of trades and occu- pations represented by DTP's work force, including office, field and workshop staff. The Task 3. A team of five is required to assist the Director of Public Works to establish and operate the Centre de Formation et Perfectionment des Travaux Publics (CFPTP) as a training center during a period of three years. The team will be responsible for: (a) completion of the building works, (b) procurement and installation of workshop, office and class- rooms, and other equipment; (c) assembly of a fleet of earth-moving equipment and vehicles for operator training, (d) development of training programs and a complete range of course material; (e) delivery of the training courses and administration of the center for three years, and (f) training of Nigerien counterparts, instructors and other staff of CFPTP; and (g) monitoring and evaluation of the training process. The Team 4. A team of five specialists will be required for a total of 150 man-months as follows: - 48 - ANNEX 5 Page 2 lan-months Director of the CFPTP 35 Administrator 31 Mechanical Engineering Instructor 30 Civil Engineering Instructor 28 Driver Instructor 26 150 Qualifications and Duties 5. Each member of the team should be fluent in written and spoken French, and have experience in technical training and some experience (not necessarily in a teaching capacity) in a public works administration in a developing country. Each team member will be assigned a Nigerien counterpart with whom he will work in close co-operation at all times. All team members will be based in Niamey, but travel to MTPU's district offices will be necessary from time to time. Director of CFPTP 6. The Director should have higher level technical qualifications or a university degree in civil or mechanical engineering and, in addi- tion, some qualification in trade training. This individual should have had at least ten years' industrial or public works experience, including three years experience in a trade training institution. The Director of CFPTP will be responsible to the Director of Public Works for setting up the training center as a functioning organization, including the over- seeing of: (a) completion of the building; (b) procurement of all equip- ment, furniture and supplies; (c) the planning of all training courses; and (d) the administration of the center. The Director must be prepared to give courses in his speciality, and to prepare in consultation with Nigerien authorities, a general training policy, plans for development and expansion of the center, together with recommendations on a personnel management policy, to ensure the best use of trainees. Administrator 7. This individual should hold a recognized qualification in public administration, accounting or business management. Previous experience in the administration of a public works or mechnical engineering organi- zation is essential, and experience in a trade training organization would be an advantage. The Administrator will be responsible to the Center Director for the adminstration of the Center including procurement and accounting for funds supplied through two special accounts, and for the conduct of a range of training courses for DTP's office and adminis- - 49 - ANNEX 3 Page 3 trative staff. The subjects covered will include cost accounting, keeping of stock records, general administration and procurement. Mechanical Engineering Instructor 8. The individual should possess a higher level technician's quali- fications and a qualification in trade training with at least seven years experience in mechnical engineering, of which two shall have been in a trade training institution. The mechanical engineering instructor will be responsible to the Center Director for the preparation and con- duct of all mechanical training courses, and for the coordination of all course activities within the Center. Civil Engineering Instructor 9. This individual should possess a higher-level technician's qua- lifications, with at least seven years' experience in bitumen and gravel road works, of which four shall have been in a developing country, and shall have had some previous trade training experience. The civil engi- neering instructor will be responsible to the Center Director for the preparation of all civil and driver/operator courses, and for the conduct of the civil courses. Driver Instructor 10. This individual should have had at least seven years'field expe- rience in the operation and maintenance of a wide range of earth-moving equipment and vehicles, and previous experience as an instructor. The driving instructor will be responsible to the civil engineering instruc- tor for preparation and conduct of courses for drivers and operators. Reporting 11. An Inception Report will be required four months after the starting date of the contract outlining plans for the short and medium- term operation of the center, and for the fulfillment of the objectives and tasks set out in paras. 3 & 6. The Director will submit a report on the activities of the Center to the Director of Public Works every two months, with an annual summary at the end of each academic year. The accounts administered by the Center will be audited annually. These reports will be submitted to DTP which will forward two copies under a covering letter to the Association. A draft final will be required three months before the end of the contract, documenting progress to date, and laying out an action plan for the next three years of operation and development of the center. REPUBLIC OF NIGER FOURTH HIGHWAY PROJECT MINISTERE DES TRAVAUX PUBLICS ET DE L'URBANISME DIRECTION DES TRAVAUX PUBLICS | DIRECTOR SERE RIl De:part lnen tag Services NIAMEY DOSSO TAHOUA MARADI ZINDER DIFFA (Districts) Sectuos Nanev 1 Talioua Mardi l Tillaberi | | New W~~orks Ne Wok _New Wurks Ce it al Serv ces Studic Maintenance and EquSPnrntc ANainisorataon Central Services Studies New Works a Workshops | dy Contracts R lail Stoin atenacount Administration Sconoalics Rr al ose Inspectorate | B Personnel | 1/ Since appraisal, have become separate directorates. Wcirldllink--23594 _BIRRD 16335 r. 2° 4° U. WezzvUc/a 8 a 12- 14' JUNE tY82 N I G E R --------------- FOURTH HIGHWAY PROJECT - Upgrading to Paved Standard . Resurfacing and Strengthening -18' U Construction of Training School 4 Paved Roads (a or 2 Lanes) Paved Roads under Construction | Engineered Gravel Roads Simple Earth Roads I * . I > Maintained Tracks - -- Simple Tracks / -. 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