Document of The World Bank FOR OFFICIAL USE ONLY g ZQ~- Z.-S - C Report No.8261-CAR STAFF APPRAISAL REPORT CENTRAL AFRICAN REPUBLIC TRANSPORT SECTOR PROJECT March 29, 1990 Occidental and Central Africa Department Infrastructure Operations Division Ibis document bas 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 E0UIVALENTS Currency Unit c CFA Franc (CFAF) USf1.00 = CFAF 80 CFAF 1 millton a US3,3383 FISCAL YEAR January S1 - December 31 SYSTEM OF WEIGHTS AND MEASURES (METRIC) 1 meter (m) a 3.28 feet (It) 1 kilometer (km) a 0.62 mile (ml) 1 square kilometer (sq km) = 0.39 square mile (sq ml) 1 metric ton (t) = 2,204 pounds (lb.) ABBREVIATIONS AND ACRONYMS item ---------- English/French …- … ACCF Agence Centrafriceine de Communication Fluviale ADECAF Agence de D6veloppement de la Zone Cafti6re ANDE Agence Nationale de D6veloppement de l'Elevage ASECNA Agence pour Ia S6curite de la Navigation A6rIenne en Afrique et I Madagascar ATC Agence Transcongolaise de Communication BARC Bureau d'Affr6tement Routier Centrafricain CCCE Cairse Centrale de Coop6ration Economique DPW Department of Public Works EMP Economic Management Project ENERCA Central African Electric Company FAC Fonds d'Aide et de Cooperation G.T.C. Croupement des Transporteurs Centrafricains GTZ Cesellshaft fUir Technische Zusammenarbeit JICA Japan International Cooperation Agency KfW Kredit Anstalit fUr Wiederaufbau MDR Minist&re de Developpement Rural MTAC Ministero des Transports et de l'Aviation Civile MTPAT Ministere des Travaux Publics et de l'Am6nagement du Territoire OPPER Op6rat;on Promotion Petits Entrepreneurs Routiors PETROCA Central African Petroleum Company PPAR Project Performance Audit Report RMUCO Road Maintenance Management and Coordination Group SAGA Soci6t, Frangaise de Transport SCEVN Service Commun d'Entr.tien des Voles Navigables SOCADA Socl6t6 Contrafricaine de Developpement Agricole SOCATRAF Soci6t6 Centrafricaine des Transports Fluviaux UDEAC Union Douaniere et Economique de l'Afrique Centrale UERBO Unite d'Entretien Routier Bossemb6l"-Garoua-Boulal (RN3) FOR OFCIL4 USE ONLY CENTRAL AFRICAN REPUBLIC TRANSPORT SECTOR PROJECT STAFF APPRAISAL REPORT Table of Contents Page No. CREDIT AND PROJECT SUMMARY . . . . . . . . . . . . . . . . i DOCUMENTS IN THE PROJECT FILE. . . . . . . . . . . . . . v I. INTRODUCTION. 1 A. Background . . . . . . . . . . . . . . . . . . . . . . 1 B. Geographic and Economic Context . . . . . . . . . . . 1 II. TRANSPORT SECTOR ISSUES .. 2 A. The Transport System. 2 B. The Road Sub-sector. 7 C. Bank Group Involvement in the Transport Sector . . . 13 III. TRANSPORT SECTOR POLICY MEASURES . . . . . . . . . . . . . 14 IV. THE PROJECT .17 A. Transport Sector Program and Objectives . . . . . . . 17 B. Project Description . . . . . . . . . . . . . . . . . 18 C. Road Sector Component . . . . . . . . . . . . . . . . 19 D. River Transport Component . . . . . . . . . . . . . . 26 E. Civil Aviation Component . . . . . . . . . . . . . . . 27 F. Other Items . . . . . . . . . . . . . . . . . . . . . 27 G. Project Costs and Financing ... . . . . . . . . . . 28 F H. Responsibilities and Monitoring of Project Implementation .... . . . . . . . . . . . . . . . . 29 I. Procurement .30 J. Disbursements .31 K. Accounting, Auditing and Reporting . . . . . . . . . . 32 L. Impact on Environment and Employment . . . . . . . . . 32 V. ECONOMIC EVALUATION .33 VI. FINANCIAL EVALUATION OF THE ROAD FUND . . . . . . . . . . 36 VII. AGREEMENTS REACHED AND RECOMMENDATION . . . . . . . . . . 38 This report was prepared by Mr. John Schwartz (Task Manager, Senior Project Officer) on the basis of findings of a pr-paration mission in December 1988; a preappraisal mission in April/May 1989; and on appraisal mission in October/November 1989, consisting of Messre. John Schwartz (Miasion Leader), Richard Senou (Financial Analyst), Chriatian Araud (Consultant Economist), Jacquea Bret (Consultant Engineer), and Andr6 Oaraud (Consultant Engineer). Secretarial work and typing wer, done by Mr. Jacques Hellumn and Miss Marcelle Houle. This document has a restricted distribution and may be used by recipients only in the performance of their official duties. Its contents may not otherwise be disclosed without World Bank authorization. Table of contents (continued) Page No. ANNEXES 2-1 CAR Exports .... . . . . . . . . . . . . . . . . . . . 40 2-2 Road Network and Traffic Density . . . . . . . . . . . . . 41 2-3 Price Structure of Petroleum Products . . . . . . . . . . 42 3-4 General Policy Declaration ... . . . . . . . . . . . . . 43 3-5 Program of Policy Measures and Actions . . . . . . . . . . 49 3-6 Priority Road Network .... . . . . . . . . . . . . . . 56 4-7 Decision Table . . . . . . . . . . . . . . . . . . . . . . 57 4-8 Pilot Actions for Infrastructure Works . . . . . . . . . . 66 4-9 Technical Assistance Program . . . . . . . . . . . . . . . 70 4-10 MTPAT's Reorganization Chart . . . . . . . . . . . . . . . 71 4-11 MTAC's Reorganization Chart . . . . . . . . . . . . . . 72 4-12 Sumzary Accounts by Project Component . . . . . . . . . . 73 4-13 Implementation Schedule ... . . . . . . . . . . . . . . 76 4-14 Schedule of IDA Disbursements . . . . . . . . . . . . . . 77 6-15 Road Fund Financing .... . . . . . . . . . . . ... . 79 MAPSs IBRD No. 18095R1 Transportation and Population Density IBRD No. 21981R 1989 Highway Maintenance Program IBRD No. 22298 TSP Priority Road Network Maintenance Program CENTRAL AFRICAN REPUBLIC TRANSPORT SECTOR PROJECT CREDIT AND PROJECT SUMMARY Borrower: Government of the Central African Republic (CAR) B8n.fICIarles: Ministry of Public Works and Territorial Development (MTPAT); Ministry of Trarsport and Civil Aviation (MTAC); and Socit&6 Centrafricaine de Developpement Agricole (SOCADA). Credit Amount: SDR 4C8. million (US862.0 million) Terms: Standard IDA terms, with 40 years* maturity Project Description: The Transport Sector Project (TSP) will finance the transport sector component of CAR's 1991-93 public Investment program and will be accompanied by a substantial number of policy measures to Improve sector performance. These measures Include deregulation of transport and Institutional reforms of MTPAT, MTAC, BARC (Bureau d"Affrbtement Routier Centrafricain --Road Freight Bureau), CCAC (Conseil des Chargeurs Centrafricain -- Shipping Council) and ASECNA-CAR; river transport tariff reform; Improved transport sector Investment planning; privatization of road maintenance and improved domestic resource mobilization for road maintenance financing; a road safety program, and Improved public procurement procedures. The TSP Includes the following components: Road Sector Component (a) rehabilitation and maintenance of the priority national and regional road network of about 4,000 km of which 420 km are paved; rehabilIt- ation and maintenance of 720 km of rural roads; and ferry and bridge repaIr; (b) reconstruction to paved standards of part of National Road NR3; Including road works on National Road NR1 necessitated by the creation of a lake at the UMBali hydro-electric dam facilities under construction (Energy Project USfI8 M 1978-CA); (c) provision of equipment, vehicles and spare parts for routine road maintenance and ferry services; (d) development of the national construction Industry to encourage prIvate sector participation in road maintenance, Including technical assis- tance to private contractors; (e) rehabilitation of office facilities and improvement of the bus and freight station In Bangui; - ii - (f) strengthening of the National Public Works Laboratory; technical assistance and logistical support toMUTPAT in programming, supervision and monitoring of road works; training of MTPAT staff, Including seminars and scholarships; (9) detailed engineering and supervision of the rehabilitation and regraveling works; detailed engineering of the bridge over the M'baore River and swamp crossing at Bambio; and (h) implementation of a road safety program. River Transport Component (a) pre-feasibility and feasibility studies regarding the construction of a river flow regulating dam on the Oubangui River; and (b) study to review and rationalize SOCATRAF's river transport tariff. Civil Aviation Component (a) improvement of airport security, studies regarding the recrsanization of ASECNA's services in CAR and audit of ASECNA's accounts; and (b) spot improvement of the runway at Berberati airport, and feasibility study to examine the possibility of adapting Berberati airport for regional air traffic. Technical Asslstance. Training, and Special Studies Provision of technical assistance and training of MiPAT, UTAC, and Planning Cell (IPCTP) staff, Including seminars and scholarships, to improve managerial and technical capability, and to prepare the next phase of the transport sector Investment program; strengthening of UTPAT's supervision capacity, and assistance and training In procurement; carrying out of special studies to Improve CAR's procurement system, to promote Its local constr&'ction industry, to develop a master plan for rural roads rehabilitation and maintenance, and to establish a computerized program to monitor overall project implementation and expenditure. Prolect Benefits: The TSP is an integrated package of transport sector policy measures and sector investments comprising priority road network, river and air transport improvements. Non-quantiflable bonefits would be liberalization of the transport industry; increased cost efficiency of road maintenance through privatization; more efflcient use of loc: r-sources for road maintenance through Improved planning erd monitoring of the road maintenance programs; stronger national economic management by systematic transport sector planning; reduced transport costs through improved control of axle load limits, rationalizing SOCATRAF's river transport tariff system, end streamlining CAR's transport institutions (BARC, CACC, ASECNA); substantial reorganization and institutional reform of the mnagement and - iII - operation of MTPAT and MTAC; launching a road safety program; and an tmproved public procuremont system. Quantifiablo benefits would be reduced vehicle operating costs and reduced costs of transport services. Project Risks: Institutional weaknesses In project management constitute the main project risk. Satisfactory execution of the national and regional road rehabilitation and maintenance program depends on the abiIlty of the Road Maintenance Management and Coordination Group (RMMCG) at MTPAT to organize and implement, and the Road Fund to finance, these programs efficiently. Similarly, the efficiency of the rural road rehabilitation and maintenance program using brigades of the local cotton agency (SOCADA) depends on SOCADA's ability to restore Its implementation capacity to satisfactory levels, and on MTPAT's capacity to establish ar efficient rural roads coordination and programming unit. The possibility of these risks resulting In cost increases has been taken into account by a careful calculation of unit prices of the road works, provision of appropriate contingencies, and support to the procurement system. On the manpower side, provisions have been made, among others with technical assistance and training programs, for strengthening MTPAT's and MTAC's implementation and supervision capacity, the Road Fund's funding mechanism and efficiency, and MTPAT and MTAC's Institutional organization. Project Cost Estimates CFAF Millions ------ ----- USS Million … Foreign Total % of Category Local Forelan Total Local Foreign Total Exchange Base Cost RN1 Reconstr. M'Ball Dam 859.8 1,444.2 1,304.0 2.9 4.6 7.7 4.0% 6.3X Paving RN3 967.0 2,229.0 3,196.0 3.2 7.4 10.7 6.1K 8.8% Paved Rds.Rehab 2,024.8 8,367.2 5,372.0 6.7 11.2 17.9 9.3a 14.6x Graveled Rds. 5,940.0 7,590.8 13,630.8 19.8 26.3 46.1 20.9% 37.2x Rural Roads 715.8 1,044.9 1,780.7 2.4 3.5 6.9 2.9% 4.8% Crit. Points 363.0 537.0 900.0 1.2 1.8 3.0 1.5% 2.5X Privatization 289.5 1,188.5 1,478.0 1.0 4.0 4.9 8.3% 4.1I Civil Aviation 71.8 170.4 242.0 0.2 0.6 0.8 0.5% 0.7% Inst. Support 873.2 4,540.4 6,413.6 2.9 15.1 18.0 12.6X 14.9% Studies 250.4 874.1 1,124.5 0.8 2.9 8.7 2.4X 3.1X Pilot Actlons 144.2 396.8 540.0 0.6 1.8 1.8 1.1 1.5S PPF 70.6 897.4 488.0 0.2 1.3 1.6 1.1K 1.3K Total Base Cost 12,549.9 23,777.7 36,327.6 41.8 79.3 121.1 65.5x 1lW.0X Physical Contingencies 1,037.8 1,676.8 2,714.6 3.5 6.6 9.0 4.0X 7.65 Price Contingencies 738.0 1,831.2 2.s69.2 2.6 6.1 8.6 4.4 7.1K Total Project Cost 14 39.7 27.285.7 47.8 91.0 138.7 66.6e 114.5% Taxes 8,738.7 3,736.7 12.6 12.5 Total Project Cost 10.589.0 37.874.? 35.3 128.2 (Net of Taxes) A- 7847 3. 2. - Iv - Financing Plan ------ USfSMllion - Cofinanciers Local Forelan Total Government /e 29.1 4.8 33.4 IbA 7.8 54.2 62.8 lapan (JICA) 6.1 10.0 15.1 France (FAC; CCCE) 1.9 14.8 16.7 Germany (KfW; GTZ) 2.8 4.6 6.9 EEC 0.8 1.2 1.8 UNDP 1.0 1.8 2.8 Total 47.8 90.9 138.7 /a Including US112.S U equivalent for tae"s. Estimated Disburse'ents from IDA Credit (US2 Million) … ---- - IDA Fiscal Years ------- Category FY91 FY92 FY93 FY94 FY95 FY96 FY97 Annual 8.8 L 6.6 18.7 18.0 10.6 6.20 1.8 Cumulative 8.3 16.8 B0.6 48.5 64.0 60.2 62.0 /a Includes USS1. U PPF refinancing, and US8S.B M for the RN1 M'Bali reconstruction works. Rates of Return: Paved road rehabilltation: 18X Gravel/earth road rehabilitation and maintenance: 82X Rural roads rehabilitation and maintenance: 20X Estimated Prolect. Completion: June 1998 Maps: IBRD No. 18096Ri Transportation and Population Density IBRD No. 21981R 1989 Highway Maintenance Program IBRD No. 22298 TSP Priority Road Network Maintenance Program AF1IN March 29, 1990 CENTRAL AFRICAN REPUBLIC TRANSPORT SECTOR PROJECT Documents in the Proiect File Project File Code Document Title and/or Bank Document No. I. Sector Background 1-1 Etude de l'industrie des transports routiers BCEOM (February, 1983) 1-2 Etude d'ame.ioration de la navigation sur la riviere Oubangui - SOGREAH (Septembre 1986) 1-3 Etude sur l'amenagement et l'amelioration des couloirs de transport Bangui-Outre-Mer - UNICONSULT (December, 1987) 1-4 L'Enclavement de la Republique Centrafricaine et l'exploitation de la voie transcamerounaise Raoul Schabille (August, 1989) 1-5 Strategie des Transports - Plan d'Action, Alain Bernard (November, 1989) 1-5 Transport Sector Strategy Note 8315-CAR. - AFIIN (December 27, 1989) 1-6 Une Strategie au Transport pour le D4veloppement - Documentation for the Transport Sector - Donor Consultation Meeting Bangui, March 1990 - vi - Project File Code Document Title and/or Bank Document No. II. Project Preparation and Background Studies 2-1 Creation d'une Cellule Interministerielle de Planification et de Coordination des Projets de Transport - BCEOM - Rapport de Mission (August 1988) 2-2 Preparation du 3&me Projet d'Assistance Technique et du Projet Sectoriel de Transport BCEOM Rapport de Mission pour l'assistance technique A la formation (August 1988) 2-3 Rappott de l'Etude Geotechnique associee A l'etude technique et economique des pistes rurales en Republique Centrafricaine Laboratoire du Batiment et des Travaux Publics, Bangui (27 avril 1989) 2-4 Rapport de presentation du programme triennal d'investissement 1989 - 1991 CAR - Planning Secretariat (Avril, 1989) 2-5 Organisation et Plan d'Effectifs du Ministere des Transports et de l'Aviation Civile - SEMA GROUP (June, 1989) 2-6 Organisation et Plan d'Effectifs du Ministere des Travaux Publics et de l'Amenagement du Territoire - SEMA GROUP (June, 1989) 2-7 Rapport d'audit sur les comptes annuels au 31 decembre, 1988 - Cameroun Audit Conseil (July, 1989) - vii - Project File Code Document Title and/or Bank Document No. 2-8 Flux de transport de la Republique CaDtrafricaine - Interministerial Planning Cell for Transport and Public Works (September, 1989) 2-9 Projet Sectoriel des Transports AIS D34601 Secteur Infrastructures Routieres BCEOM (October, 1989) 2-10 Projet Sectoriel des Transports Secteur des Trarnsports BCEOM (October, 1989) 2-11 P:tojet Sectoriel des Transports AIS D34603 Etude technique et economique des pistes rurales - BCEOM (October, 1989) 2-12 Etude de faisabilite sociale et ecologique de la zone d'influence de la route future Boda-Bambio-Yamando SECA/AGRER (November, 1989) 2-13 Deviation de la route nationale 1 (RN1) entre Bangui et Bosssembele Etude de faisabilite - DIWI WALTER (December 1989) AFlIN March 1990 CENTRAL AFRICAN REPUBLIC TRANSPORT SECTOR PROJECT I. INTRODUCTION A. Background 1.01 Since 1982, the Government of the Central African Republic (CAR) has undertaken a considerable effort to rebuild its economy. With support from multilateral and bilateral aid agencies, the Government set out to implement a broad based rehabilitation strategy, which focussed on promoting agricultural production and exports, and on reducing fiscal imbalances. During 1982-86, these efforts resulted in considerable increases in average yield of cotton and food crop production, though coffee production remained stagnant. However, except for exports of raw diamonds, which grew by about 6-10%, total exports (including coffee, cotton and wood) declined by about 0.62 per annum in real terms, becaus. of the 1983/84 drought and have continued to decline since then due to a sluggish international economy. Merchandise exports declined from CFAF 58.7 billion in 1985 to CFAF 39 billion in 1988, while the debt service ratio increased from 15.1? in 1986 (after debt relief) to 23 and 29% in 1987/88, respectively. In order to reverse these deteriorating trends, the Government has launched a medium-term structural adjustment program since 1986, supported by two SAL operations. 1.02 In support of the ongoing efforts under the structural adjustment program to improve agricultural production and exports, and to reduce the cost of domestic and international trade, the Government has requested IDA to help develop and finance a transport sector project that would strengthen CAR's transport system, both domestically and internationally, and rationalize the sector's policy framework. Past IDA financing in the transport sector has con- centrated on reconstruction and maintenance of the main national and regional road network and training of local staff, but part of this effort was interrupted by a period of political difficulties, and some of the results were lost. During the Fourth Highway project (US$18.0 H Credit of 1982). which was completed in 1987, the road network was substantially rehabilitated, but more needs to be done to shore up CAR's international transport links, strengthen its road maintenance capacity, improve the rural road network, and build a durable institutional capability to successfully plan, finance, exezute and manage transport sector investment and expenditure. The proposed Transport Sector Project (TSP) aims at achieving these broader sector objectives, which may require a decade of concerted donor effort to accomplish fully, and at complementing the macro-economic objectives being pursued under the structural adjustment program. B. Geographic and Economic Context 1.03 CAR covers an area of about 620.000 knm. It is landlocked by the Sahel countries Chad and Sudan in the north, by Zalre and Congo in the south, and Cameroon in the west (see map: IBRD No. 180950R1), and depending on the transport route (para. 2.01) is about 1,650 to 1,850 km away from the sea. In the southwest, CAR is covered by a regional equatorial rain forest, stretching over north Congo and east Cameroon. Most of the country lies on a high rolling plateau, which presents no particular geographical obstacles to transport. While the north and northeastern parts are relatively dry, the south and southwest experience heavy rain fall during the wet season posing heavy demands on road - 2 - maintenance. CAR's relatively sparse population (about 2.7 million) is concentrated in the east and southwest, where the most fertile areas are located and levels of economic activity are highest. The eastern part of the country is virtually uninhabited, making it difficult for the Government to economically justify road infrastructure investments, although political circumstances may dictate maintaining continued access to the region. 1.04 About 602 of the population lives in rural areas, mostly immediately along the roads. Bangui, the capital, holds 49? of the urban population (with about 600,000 inhabitants). Other important regional towns (Bambari in the east, Bouar in the west, and Berberati in the southwest) have smaller populations ranging between 20,000 and 40,000 inhabitants. The tropical forest area is inhabited by pygmies. Per capita income is about US$330 (1987), ranking CAR among the least developed countries. Agriculture (cotton, coffee, forestry) represents about 42? of GDP and 56? of commodity exports, services 40X, mining (diamonds, gold, some manufacturing) 15Z, and construction 32. About 802 of the population lives from agriculture sharing plots half and half for subsistence farming and cash crop production. 1.05 Due to CAR's deteriorating terms of trade and the decline in its major agricultural exports, growth of GDP is expected to remain modest over the next few years. The broad objective is to achieve an average real growth of 42 per annum by 1991. Per capita income is unlikely to increase much during this period, and a substantial foreign capital inflow will be necessary to help CAR strengthen the foundation for improved per capita income. A substantial portion of CAR's budget is supported by external financing (about 50o of total expendi- tures -- current and capital expenditures -- and 99? of the overall deficit, in 1987). As a result, debt service has increased (26? of total domestic revenue in 1986) and outstanding debt has grown to US$400 M (41.5Z of GDP). Therefore, CAR will have to be very selective in making future investments. Moreover, since external financing is used to support a substantial amount of current expendi- ture, less foreign resources are available for capital investments in the productive sectors. These circumstances dictate an investment strategy focussing on projects with the highest economic return and affordable to CAR. In keeping with this reality, the TSP has been developed to achieve improved productivity and efficiency of the transport sector in line with CAR's macro-economic parameters set in the context of the structural adjustment process, as well as to implement the necessary Lnstitutional reforms to permit the Government to sustain the project's achievements over time. II. TRANSPORT SECTOR ISSUES A. The Transport System 2.01 Transport Routes. CAR's international surface transport is divided over the river route via the Oubangui to Brazzaville (Congo) and from there by rail to Pointe Noire (1,850 km), and the road route to Douala, Cameroon (1,650). Close to 75? of CAR's trade takes the river route (with about 10? of wood shipments by river being evacuated over the Sangha, a tributary to the Oubangui river in eastern CAR); about 23? travels by road and only 2? by air. Due to the sluggish economy, total import/export traffic declined from about 312,000 tons in 1984 to about 251,500 tons in 1987 (ALanex 2-1). This declining trend, which is likely to persist in the near future, indicates that future increases in trade - 3 - volumes could be absorbed by the present infrastructure, and that CAR's emphasis should, therefore, be on maintaining existing investments. 2.02 Bulk goods (fuel, cement, wood) generally take the cheaper river route, while the Cameroon route is more attractive for higher value commodities (vehicles, beverages, foodstuffs) and smaller shipments. Fuel and cement imports are shipped from Kinshasa by river. Of CAR's export products, wood is mostly exported by river, as well as smaller quantities of coffee and cotton. On the Cameroon route, about 1O of imported goods are shipped by rail from Douala to Ngaoundere in Cameroon and from there by road to Bangui, while most exported goods are shipped directly by road to Douala. The main di-advantages of the river route, albeit cheaper, are (a) the long shipping timt about 30 days, as opposed to 5-8 days by road to Douala and often longer for heavy goods such as wood) causing higher financial and insurance charges; (b) damages resulting from transshipment at Brazzaville (river to rail), port handling at Pointe Noire, and pilferage along the route; and (c) increasingly low water levels of the Oubangi River. River transport is interrupted during the dry season (February-June), when CAR's main agricultural products, coffee and agriculture, are harvested and exported. Cotton, coffee, and even wood are increasingly exported by road because of the lower tariffs currently charged for road transport to Douala port, while flower is again imported by road because of more rapid service at a cost that is easily absorbed by local market forces. Thus, the two routes are competing and complementary at the same time, while quantities and composition of freight over both routes change with the fluctuations in the cost of transport. Howev- er, due to consistent dryness in eastern CAR, declining water levels will continue to affect the navigability of the river. The low-water mark of the river has declined by 64 cm in ten years, and is expected to decline by another 40 cm in the future, making CAR more and more dependent on the Cameroon route for access to the sea. 2.03 International road transport is shared between about seven larger CAR transporters (owing about 10 to 18 trucks) and Cameroonian transporters. The latter are generally operating larger fleets and have the upper hand in road transport to and from CAR (about 80Z of total traffic). Domestic transport is mostly informal, less lucrative, and handled by transporters owing only a few trucks. Because of the limited supply of viable domestic transport, several merchants and state agencies (SOCADA, PETROCA) operate their own trucking fleet. 2.04 A bilateral agreement between the Republic of Cameroon and the Central African Republic governs international road transport between Douala and Bangui. This agreement, which was originally concluded in 1969 ("convention de Berberati") was revised in August 1989 and stipulates that CAR and Cameroonian transporters share transport on 60-40Z tonnage basis, respectively, between Douala and Bangui. However, while previously transport was chiefly by road, Cameroon has obtained that heavy goods (including wood and wood products, fertilizer, engines and non containerized construction materials) are to be transported to and from Douala by Cameroon railways in order to augment the use of its ailing railway services. This may result in costly delays for CAR's wood exports because Cameroon railway wagons and terminals are under equipped to handle heavy transports and transhipment efficiently, which would force wood exporters to choose the less costly but also slow river route. At present, railway transport of these goods is not yet enforced and CAR may seek an excep- tion to this rule in accordance with the agreement's provisions for recourse. - 4 - 2.05 Air transport has become mainly international, since CAR has liquidated its domestic airline under the state enterprise reform measures of the structural adjustment program. During 1982-1988, annual international passenger traffic numbered around 50,000 persons and annual freight transport 5,000 tons. Domestic commercial air transport is insignificant and limited to a few regional towns serviced once or twice per week by two private charter companies. In addition to Bangui Airport, which has been adapted to receive jumbo airliners, about 30 small airports and air strips are scattered throughout the country, of which 13 are serviced by permanent staff. 2.06 Sector Institutions. The Ministries of Transport and Aviation (MTAC) and of Public Works and Territorial Development (MTPAT) have joint respon- sibilities for the transport sector. MTAC is responsible for transport policy making, tariff setting, surface and air transport regulations, and meteorology. MTPAT is entrusted with the technical execution of works and urban affairs, which, in additio.a to maintenance of urban roads, also includes cadastral mat- ters. MTPAT has a staff of about 1,100, 75Z of which is employed in the Road Maintenance Department of the Directorate of Public Works (DPW). MTAC has a much smaller staff of about 80, half of whom are employed in the Civil Aviation and Meteorology Directorate. MTAC also supervises several specialized agencies, such as SOCATRAF (river transport), BARC (road transport), ASECNA-CAR (airport manage- ment and air transport services) and CCAC (maritime transport), which are described below. 2.07 Both Ministries and their subsidiary agencies are seriously constrained by lack of competent technical staff, and operate with limited implementation capacity. There is no appropriate statis ical data base in support of transport policy making which hampers decision making. Functional lines of internal communication are inefficient, with MTAC exerting little control over its subsidiary agencies. MTPAT's staff is burdened with too many undefined tasks, making it difficult to focus on the specific requirements of road maintenance planning and execution. As part of the SAL II measures, an administrative reform program has been prepared financed by UNDP with IDA acting as executing agency which has recommended institutional changes and personnel reduction for major ministries, including MTAC and MTPAT. Additional institutional reviews have been carried out during the TSP feasibility studies, and agreements with regard to personnel reductions and adjustments in the organization charts of both Ministries are to be reached during negotiations. 2.08 Despite several years of training and technical assistance, produc- tivity has remained low and additional training and technical assistance will remain necessary for some time to come. However, such programs should be more clearly tied to regularly supervised productivity improvement targets, work environment improvements to make trained staff useful, and built-in requirements for a declining need in expatriate personnel. In order to strengthen the capacity of both Ministries in preparation of the implementation of the TSP, an interim training program is being financed under the Economic Management Project (Credit 1971-CA), focussing on improved personnel management, reviving the MTPAT train- ing center, improving equipment maintenance with a view to possible privatizat- ion of equipment repair, and strengthening sectoral investment planning and computerized information systems. 2.09 Transport Agencies. Transport is regulated by several specialized agencies, all responsible to the Ministry of Transport and Civil Aviation (MTAC). River transport is handled by SOCATRAF (Societe Centrafricaine des Transports Fluviaux), a mixed economy company created in 1980, and owned 51Z by the Government and 49Z by SAGA, a French forwarding agent, which manages the company. It operates a fleet consisting of 47 pusher tugs, and 102 barges, which have been gradually repaired with foreign assistance, and a river port at Bangui, with 300,000 tons capacity. The present decline in transport demand has caused a surplus capacity of about 25? in SOCATRAF's fleet and in the short term no new investments appear necessary. However, due to the aging of the fleet, and an expected increase in transport requirements in the early nineties, replacement investments would soon be necessary to maintain capacity. Port facilities are adequate for the time being and capable of handling current container traffic, which has steadily increased but is still modest at about 2,500 units per year. River transport between Bangui and Brazzaville is shared by bilateral agreement between CAR and Congo, with SOCATRAF carrying 80? and ATC (Agence Transcorgolaise de Communication) 20Z. SOCATRAF has the sole transporting rights for merchan- dise from and to Zaire. SOCATRAF functions efficiently and breaks even on its operations, thanks in part to concessionary financing (Germany, France) of equipment renewal and repair, and technical assistance provided by France to maintain and operate the fleet. 2.10 Road transport is regulated by BARC (Bureau d'Affr&tement routier Centrafricain), also a mixed economy agency. Private shareholders consist of a transport syndicate (GTC -- Groupement des Transporteurs Centrafricains), hold- ing 202 of BARC's equity, several forwarding agents (40?) and the National Employers Federation (7Z). The Government holds 33Z. BARC does not operate trucks, but allocates road transport contracts between shippers and truckers, and manages the road transport station (*gare routi6re") in Bangui, where all transport is handled. It assigns shipments arbitrarily ("tour de role") to transporters with the objective of giving all transporters a fair share of the business. To enable smaller truckers to participate, it provides financial assistance in purchasing and operating their vehicles. In addition, it collects a Government tax (TCA -- taxe sur le chiffre d'affaires -- 16.5Z) over the value of domestic transport contracts, which it transfers to the Treasury on behalf of the transporter (para. 2.34). Because of its monopolistic position, it is allowed to charge a 10? penalty commission over contracts to which it is no party and can enforce this rule because valid travel documents (Olettre de voiture') can only be obtained through its offices. However, due to BARC's inefficiency, and to avoid the risk of their goods being assigned to financially insolvent or poorly equipped truckers, shippers and transporters have turned away from using BARC as a mediating agency and about 80? of all transport contracts are now concluded privately. Barc's accounts are in balance thanks to the revenues from the 10X commission, which support, among others, the financial assistance to small transporters. BARC's monopoly position unnecessarily increases the transport cost. As part of the measures of the Second Structural Adjustment Credit, the Government decreed, as a condition of negotiations of the proposed IDA Credit for the TSP, the abolishment of BARC's monopoly and the elimination of the penalty commission. 2.11 Bangui's airport is serviced and maintained by ASECNA (Agence pour la SecuritS de la Navigation Adrienne en Afrique et Madagascar, with headquarters based in Dakar), of which CAR is a member. ASECNA is responsible for managing CAR''s air space and technical installations and related services, and in accordance with its Articles of Agreement also handles national services such as the commercial management of Bangui's airport and several secondary air fields in the interior, and the management of the coordinated meteorological network. Its budgetary revenues are derived from airport fees, and a State subsidy, which - 6 - in 1988 amounted to CFAF 91.6 million (US$300,000). ASECNA's CAR budget is in deficit, because of delayed payments by CAR, and also because of lesser revenues following declining air traffic. ASECNA's operational costs in terms of personnel are higher than necessary because of over staffing. Part of its meteorological equipment needs replacement. The Government desires to rationalize ASECNA's performance in CAR and intends to carry out an audit of ASECNA"s accounts and operations which should provide recommendations for improvements (para. 3.06). 2.12 CCAC (Conseil Centrafricain des Chargeurs), which was created in 1979, regulates maritime transport of CAR imports and exports and, in accordance with its statutes, is responsible for obtaining most favorable sea transport tariffs for CAR shippers. Like BARC for road transport, CCAC maintains the monopoly for allocating maritime transport contracts. In 1986, CCAC also assumed the maritime transport rights of LCA ("Lignes Centrafricaines"), which, in a business arrangement with a German-Cypriote shipping company, briefly operated sea transports with Europe before it was dissolved by the new Government in 1984. CCAC operations are funded from a 0.50X general import tax of which half is allocated to CCAC. It obtains additional revenues from the sale of "transport rights" of CAR merchandise to foreign shipping companies and forwarding agents. In doing so, it is faced with a conflict of interest in making efforts to sell such transport rights at the highest possible price, while CAR shippers seek the lowest possible rate. It has continued negotiating transport arrangements with shipping companies and forwarding agents that would limit competition and increase transport rates. MTAC has not approved CCAC's proposals, as they are in conflict with the liberalization policies adopted by the Government. MTAC established a Task Force to review CCAC's operations and has decided, as part of its sector policy measures, to turn CCAC into a service organization supporting the interests of CAR shippers rather than those of foreign shipping companies, and to improve CCAC's professional competence through appropriate training and technical assistance. 2.13 Transport Costs. Transport costs are high because of CAR's long distance to the sea; multiple transshipment on the river route; relatively high costs of fuel in CAR for road transport because of the fuel tax, part of which finances road maintenance through the Road Fund (para. 2.29); high vehicle operating costs, especially due to the low maintenance levels in neighboring countries; dearness of spare parts resulting from high customs tariffs; and monopolistic rates charged by international shipping companies. Surface transport rates charged by forwarding agents for imported products are general- ly twice as high than for exported products because charges for the empty back haul of trucks or containers are included. Road transport tariffs amount to about CFAF 50-60/ton-km for imported goods (CFAF 82,500-99,000/ton) and CFAF 20-35/ton-km (CFAF 23,000/ton-56,000/ton) for exported goods, due to com- petition for shipments. The transport rates for imported goods do not meet much resistance, because importers face relatively little competition and can recover the cost. 2.14 For river transport, some 19 different tariffs apply, with preferential rates for cement and fuel imports on the one hand, and coffee and cotton exports on the other. Tariffs range from CFAF 10/ton-km to CFAF 17/ton-km for the river portion (Bangui-Brazzaville), and CFAF 13.61/ton-km to CFAF 30.63/ton-km for the whole distance to Pointe Noire (amounting to CFAF 25,000-56,000 per ton in total). River transport tariffs lack transparency and should be simplified to permit shippers to determine more clearly their relation to the cost of transport (para. 3.04). 2.15 In addition to the tariff for river transport, a tax is levied to recover the operating cost of SCEVN (Service Commun d'Entretien des Voies Navigables), which is shared between CAR and Congo, and maintains the river route over the Oubangui between Bangui and Brazzaville, especially by removing rocks to facilitate passage. This tax, which is in fact a user fee, varies from CFAF 700/ton (promotional, tax for coffee, arabic gum) to CFAF 2,820 m8 for fuel. 2.16 The cost of air transport from Europe, mainly France, to CAR is relatively high because fares include round trip cost due to lack of return cargo and limited competition between airlines. 2.17 Transport Obstacles. With SPPF financing, a study is being undertaken to establish a program for customs and tariff harmonization and improvement of international transport movements in the UDEAC countries (Union Douanibre et Economique de l'Afrique Centrale; member countries: Cameroon, Central African Republic, Chad, Congo, Equatorial Guinea, and Gabon). The study is being carried out with financing from the European Communities, and in consultation with the UDEAC Secretariat residing in Bangui. On the basis of existing studies, the present situation and future evolution of these countries' transport sectors and related constraints have been analyzed. In a subsequent phase, measures will be prepared to resolve the constraints identified, especially with regard to regulations, simplification of customs procedures, cost recovery and tariff setting, and least cost operational and infrastructure improvements. Results of the first phase have been completed and indicate the need for further work to prepare concrete proposals for improved custom procedures, transit regulations and vehicle regulations. During donor coordination on CAR's transport sector development, much support was expressed for improving customs procedures and transport regulations on CAR's main international transport routes to Douala and Pointe Noire as parallel actions to the implementation of the TSP, which has a more national focus. 2.18 Investment Planning. Transport sector investment planning is the responsibility of an Interministerial Planning Cell for Transport and Public Works (IPCTP), established at MTAC in October 1988 under the shared respon- sibility of MTAC and MTPAT. This Cell operates in close collaboration with the Secretariat of Planning, which has the prime responsibility for planning and formulating the national investment budget. A beginning with systematic investment planning in CAR has only been launched since 1987, with the formulation of a five-year investment plan prepared with assistance of the UNDP, an effort which was expanded under the structural adjustment program. Subse- quently, transport sector investment planning was launched in preparation of the TSP, in order to arrive at an appropriate ranking of sector investments in accordance with economic justification, priorities, and estimates of recurrent cost requirements. Although a beginning has been made, national and sectoral investment planning are still in an early stage and will require sustained technical assistance for some time before becoming reliable tools of economic management. IPCTP will also be strengthened to analyze statistical data prepared by services of MTAC. B. The Road Sub-sector 2.19 Road Network and Traffic Density. The CAR road network consists of about 23,700 km, of which 9,300 (or about 45Z) are classified national and regional roads and the remaining 14,400 km are rural roads and tracks. About 440 km of the main national roads (including about 20 km of national roads passing through Bangui) are paved. Since 1982, after severe deterioration, the Government has substantially improved about 3,700 km of the classified road network, of which 1,300 km were rehabilitated under the Fourth Highway Project (US$18.0 H Credit of 1982, paras. 2.40-2.42). 2.20 The national and regional road network carries 80X of total traffic, 502 of which is concentrated on the paved roads. Traffic density is highest near Bangui and weakens rapidly beyond 100 km from the city. While on paved roads daily traffic ranges between about 120 to 500 vpd (vehicles per day), and in Bangui reache3 some 3,400 vpd on the main urban roads, average daily traffic on national roads ir. the interior is lower at about 20 to 60 vpd, except near some larger provincial towns, where it is estimated at between 50-100 vpd. Traffic on regional roads varies between 15 and 50 vpd, and is much lower in more remote areas. Some rural roads carry about 20 vpd and many less than 10 vpd. Due to CAR's sluggish economy of the last five years, traffic has generally stagnated or declined, and is projected to increase only slightly with the forecasted slow improvement in economic activity resulting from the adjustment program (para. 1.05). Although statistics are incomplete, the number of vehicles is estimated about 11,600, which has been relatively constant during the period 1985-89. Of this number, about 802 are light vehicles (of which 402 are pick-up trucks), and the remainder are larger trucks and tractor-trailers. An overview of the road network and traffic density is given in Annex 2-2. 2.21 Rural Roads. About 602 of the 14,400 km rural road network is generally in a poor state of repair. Some 9,000 km of rural roads are under the responsibility of agricultural agencies such as SOCADA, responsible for cotton production; ADECAF, responsible for coffee production; ANDE, which implements a livestock project (PNDE) financed by IDA and the European Communities; SCAT, responsible for tobacco production; and a few others, including forestry companies. However, limited budget funds prevent most of the agencies from adhering to a regular maintenance program. About 3,500 km were under the responsibility of the Ministry of Rural Development (MDR), but since its maintenance brigades did not receive budget funds, these roads have not been maintained for many years and have since become generally impracticable. Conse- quently, provision of inputs, collection, and marketing of cash crops and food crops, even in regions where some road maintenance takes place, has become dif- ficult and costly due to the high vehicle operating cost. 2.22 Rural road rehabilitation and maintenance is an important priority for CAR's agricultural sector, which contributes close to half of GDP. Hence, both special agricultural agencies and rural maintenance brigades require substantial material, technical and institutional strengthening in support of CAR's agricultural development objectives. In an effort to increase efficiency, the Government has launched programs to restructure agricultural institutions including a reorganization of MDR, whose task of maintaining the rural roads under its responsibility have been transferred to MTPAT. However, MTPAT's experience with rural road rehabilitation and maintenance is limited, making it necessary to achieve sustained improvements in this area through combined efforts of MDR, the specialized agricultural development agencies (which, in accordance with recent plans, would be reorganized into rural development zones), and MTPAT. Since the residual group of rural roads previously under MDR has not been adequately maintained. MTPAT would concentrate more specifically on maintaining primary rural roads linked to the regional and national road networks, with financing under the transport sector component of the investment plan, leaving the responsibility for maintenance of secondary and tertiary rural roads to the agricultural development agencies, with financing under the agricultural development component of the plan. 2.23 Urban Roads. Urban roads in CAR are generally classified in primary roads, which are extensions of the national road network, secondary roads, which link up to the main roads, and a tertiary network serving the interior of the towns. Bangui has an urban road system of about 70 km, with little over 50 km paved, of which some 20 km is in the secondary category; Bambari's urban roads extend over 20 km, Bouar's network is about 22,5 km, both with about half consisting of national roads, followed by Berberati with 15,6 km, mostly national roads. None of these larger three secondary towns have paved roads. National roads in these towns are generally used by heavy through traffic, which creates substantial discomfort during the dry season because of dust, causes damage to the road surface during the wet season and also constitutes a major safety hazard. Lacking the necessary funds and equipment, the municipalities require assistance in maintaining their city roads in a satisfactory, passable state. 2.24 Road Maintenance. Despite efforts under previous highway projects financed with IDA assistance, MTPAT has not been able to develop an appropriate maintenance strategy. This deficiency is mainly due to long time lags between donor-financed highway projects, interruptions in technical assistance and training programs, and frequent turnover of local staff. Of the 9,300 km of classified roads, kbout 5,400 km (close to 60Z) have thus far been programmed to be maintained annually, about 4,600 km with mechanical means and 1,000 km manually. Of the mechanical road maintenance program (resurfacing of paved roads and regraveling of earth roads), MTPAT's share is about 3,200 km per year or about 34Z of the total road network. The remaining 1,400 km, which is about 152 of the total network and 302 of the mechanical maintenance program, is maintained by brigades operated by French and German technical assistance (see map: IBRD No. 21981). 2.25 As a result of its inadequate maintenance strategy, MTPAT has maintained generally much less than the annual maintenance program agreed between its Department of Public Works and the Road Fund (discussed in para. 2.29). Consequently, following the substantial investments made during the rehabilit- ation program of 1982-1986, the road network has begun to deteriorate again. In addition, since part of the road network is not being maintained at all, especially in sparser populated areas, these roads are gradually being lost to the country posing problems of continued geographical access. At present, MTPAT operates four mechanized maintenance brigades, of which one is applied solely to the paved roads; the remaining three are carrying out resurfacing of gravel roads. In addition, MTPAT operates smaller brigades for patching work and bridge repair. Their composition is determined each year in light of the road maintenance work programmed by MTPAT. Manual maintenance is carried out by MTPAT's 16 subdivisions and 11 small local contractors, who were trained under a pilot operation financed by the Fourth Highway Project. To succeed in its maintenance program, MTPAT will have to diminish its responsibilities for force account methods in favor of the private sector, among others by a broader use of small contractors, which would be an essential element of its new road main- tenance strategy (para. 3.08). 2.26 Grouped in OPPER (Operation Promotion des Petits Entrepreneurs Routiers), and managed by foreign technical assistance, the small local contractors carried out manual maintenance on close to 1,000 km in 1988, - 10 - generally at lesser expense and more efficiently than MTPAT's maintenance crews. Having progressively grown more into an association of private entrepreneurs. the contractors have organized themselves into a private cooperative with statut- es independent from MTPAT. OPPER will continue to carry out manual maintenance for MTPAT, and seels to gradually enter into mechanical maintenance as well, using equipment that would be made avaAable by MTPAT through a pooling arrange- ment. In addition, to keep their businesses from failing due to a possible lack of work, the small contractors are also branching out into other public works, such as building and drainage works in urban areas. 2.27 Equipment. MTPAT holds a considerable amount of equipment (about 300 units with a replacement value of US$28 M at 1989 prices), that has mostly been provided on a grant basis by Japan. However, due to lack of technical ability and inadequate handling, only about one third of this equipment is operative. The usable equipment has a remaining economic life of at most three more years, which, if MTPAT continued to carry out road maintenance by force account, would dictate equipment renewal in two stages (1991 and 1994) to meet maintenance targets, requiring substantial financial commitments. The principal reasons underlying the weak performance of MTPAT's equipment department are (a) insufficiently qualified mechanical engineers and technicians; (b) inadequate spare parts and funding, which are provided through the Road Fund, causing equipment to be idle unnecessarily for sustained periods; and (c) inappropriate programming of equipment use. Part of the deficiencies are due to the fact that MTPAT uses spare part funds for light vehicles not associated with road maintenance, thus reducing Road Fund resources for maintenance equipment. Light vehicle repair and spare parts for other than maintenance purposes should normally be financed by the ministerial budget, and not the Road Fund. Given MTPAT's weak performance in maintenance and equipment operation, commitments for the purchase of new equipment would be difficult to justify. To avoid future capital losses, MTPAT will establish commercial management of equipment maintenance as part of its new maintenance strategy. 2.28 MTPAT also operates 62 ferries, of which 22 are motorized. All motorized ferries have recently been repaired with German financing and are in a satisfactory state of repair. About 27 of the non-motorized ferries will be renovated with additional financing provided by the Federal Republic of Germany. 2.29 Road Maintenance Financing. Road maintenance is financed by a Road Fund, established in 1981 as a legally and financially autonomous body. The Road Fund's staff is small with about 30 employees, of which 12 higher level staff, headed by an expatriate administra.or. The Road Fund is overseen by a Management Committee chaired by the Minister of Public Works and members from other Government departments, including the Ministry of Finance, and the local chamber of commerce. Total 1988 and 1989 revenues of the Road Fund amounted to CFAF 1.7/1.8 billion (about US$5.3/5.5 M). These revenues are derived from a CFAF 50/1 user fee built in the fuel tax (Annex 2-3) which is directly trans- ferred by PETROCA, the national petroleum agency, into the Road Fund account es- tablished at a commercial bank. A more detailed description of the Road Fund is provided in Chapter VI. 2.30 Although the Road Fund user fee has been gradually increased by the Government, resources have not kept pace with rising maintenance requirements, thereby adding to the insufficient maintenance capacity of MTPAT. Future Road Fund requirements to support the routine maintenance program proposed under the project have been estimated at about CFAF 2.7 billion per annum (US$8.4 M, - 11 - depreciation of equipment and installations not included), which exceeds present revenues by 25Z. Moreover, while the Road Fund has been adequately managed with technical assistance, funds were used for non-maintenance related expenditure due to shortages in the Ministerial budget. As a result, the Road Fund was called on to finance part of expenditures for fuel, salaries and other items that should normally have been charged to MTPAT'e or the national budget. Thus, funds for maintenance work were reduced and overall output was adversely affected. An in- depth audit of the 1988 Road Fund accounts has been carried out with terms of reference approved by IDA to determine the application of funds and to provide recommendations for improvements to be implemented during the project (paras. 6.04-6.05). 2.31 Other deficiencies of Road Fund financing stem from delays in PETROCA transfers (about three to four months), lack of coordination between the R'ad Fund and the maintenance department on the actual implementation of tne maintenance program, and administrative weaknesses in keeping track of actual expenditure. In addition, equipment supplies and maintenance operations financed by bilateral donors are not within the purview of the Road Fund, making control over the use of these resources and overall planning for future expenditure more difficult. 2.32 The main weakness of the Road Fund has, therefore, not been the mobilization of revenues from road user charges, but inappropriate use of these revenues. In order to cope more efficiently with future maintenance requirements and to safeguard past investment, Road Fund management requires strengthening; budgeting, funding, and maintenance planning and implementation need to be better integrated, and additional resources ought to be mobilized as maintenance requirements increase. However, continued external financing of road maintenance will remain required as long as national resources are constrained, and only as a matter of last resort should incremental contributions be sought from the nation-l budget. 2.33 The Public Works and Buildings Laboratory (LBTP). LBTP is an autonomous directorate of MTPAT responsible for geotechnical studies and engineering, research on local construction materials and soil studies, and tests on existing structures. It has a staff of about 30 people, of which 13 are professionals, and is managed under contract by the French Public Works and Building Research Center (CEBTP), which is at the origin of many public works laboratories in former French Africa. Activities of LBTP are naturally influenced by the volume of construction activity in CAR, and were highest during the Fourth Highway Project (1984-1987). Since then, its volume of work has declined, and LBTP's resulting operational deficit is covered by its reserve funds. The Laboratory provides good potential for strengthening local capacity and expertise to intervene in foreign financed construction projects, and this potential should be utilized to the fullest extent during future investment projects. The TSP will provide assistance for this purpose. 2.34 Cost Recovery of Road Traffic. In addition to the Road Fund user fee, several other taxes, sales taxes on spare parts, which are relatively high (tires in CAR are 301 more expensive than in neighboring Cameroon), and import duties constitute the framework for cost recovery of road rehabilitation and main- tenance. Fuel prices (CFAF 350 for gasoline and CFAF 280 for diesel) are considerably higher than in neighboring countries (CFAF 280 and 180, respective- ly, in Cameroon; CFAF 295 and 195, respectively, in Congo; CFAF 290 and 270 equivalent, respectively, in Chad), leading to substantial contraband traffic - 12 - on CAR's western border. Domestic road transport, which generally carries lower value commodities, is charged with a 16.5Z tax over the value of the transport contract -- with the exception for cotton and coffee, which carry a reduced rate of 2.42 -- while international road transport, which carries generally higher value commodities, is taxed at the rate of 5Z. 2.35 There is no special road user fee applied to heavy vehicles. This benefits especially foreign transport vehicles, which escape paying the Road Fund user fee because they often carry large quantities of lower priced fuel in auxiliary tanks from neighboring countries. Measures have recently been taken, that at the border Customs charges payment of duties, or confiscates any amount of fuel in excess of what is needed to reach Bangui. Confiscated fuel is transferred to PETROCA. However, the actual success rate of these measures is difficult to assess. Introduction of tolling charges on the international transport road from Bangui to the Cameroon border may not be practicable under the present efforts to harmonize transport policy among the UDEAC countries. Axle load in CAR is controlled at the sole weighing station near Bangui. Payment of fines has not been enforced for some time, which has encouraged heavy overloading causing substantial damage to the road network. MTAC is responsible for applying axle load control, and has hesitated to fine foreign truckers for fear of counter measures in neighboring countries. MTAC has advised neighboring countries that as of January 1990 overloading is again penalized. Concomitantly, taxing of heavy trucks should be enforced to recover the cost of road repair and to supplement Road Fund revenues. Possibilities for the establishment of such a tax system is being reviewed by the study on transport obstacles in UDEAC countries. which is to make recommendations for harmonizing axle load require- ments and for instituting appropriate recovery mechanisms of road maintenance expenditure. 2.36 Road Safety. CAR experiences a high accident level due to lack of enforcement of traffic rules, under equipped and insufficiently trained police, absence of road signs and inoperative traffic lights in urban areas. MTAC, which is responsible for traffic regulation, is faced with azi increasing accident-related cost to the economy, which has been estimated at least CFAP 1 billion per year in terms of insurance damages. As a result of the poor statistical base, it is d4fiicult to estimate the additional production losses, and hospitalization ewpenses, but comparing data with other African countries, the cost is likely to be much higher. Consequently, MTAC has taken steps to prepare a road safety program (para. 4.26), that would be carried out under the project. 2.37 Procurement. Responsibilities for procurement are vested in a national procurement committee, established at the Presidency, which reviews the evaluation and recommendations made by the technical committees at ministerial level, and decides on contract awards. Although the objective was to streamline procurement procedures under a centralized organization in order to achieve uniformity and objectivity, the new procedures have led to long processing delays that prove costly to the economy. In October 1989, an IDA mission carried out an assessment of CAR's procurement system. The main conclusions were that ICB and LCB procedures are slow and inefficient, that the enabling legislation requires updating and rationalization, and that measures are to be taken to accelerate control procedures which require excessive processing time. The Government is aware of these weaknesses and is in the process of redrafting regulations. However, assistance is necessary to help improve existing arrangements, in particular with respect to policy making, institutional - 13 - capability and rules and procedures. This would include drafting of codes as well as model documents. Provision has been made under TSP to provide such assistance. 2.38 Environmental Aspects. The Government has constructed, with external financing, part of an international road from Yamando through Bambio to Boda through the CAR portion of the regional equatorial rain forest (see Map IBRD 21981). On completion, this road would shorten the distance between Bangui and Douala by about 140 km, and reduce travel time by half between Bangui and southwestern CAR (Berberati), which is an important regional center. In addition, it would reduce the transport cost to Douala port for wood products, which is one of CAR's major export items. The Government has completed an Environmental Impact Study to obtain recommendations for necessary actions to limit potential damage to the forest resulting from the road construction. 2.39 The Study's recommendations focus in particular on (a) erosion prevent- ion, and the need for maintenance and drainage; (b) protection of the forest from man-made fires to establish plots for cultivation; (c) containment of hunting of protected wild life; (d) creation of a greater participation between the State and private forestry companies in order to protect the forest and to develop in- tegrated projects including the forestry population; (e) study of the ecological aspects and required protective measures regarding possible continuation of the road from Bambio to Boda, including the crossing of the 3 km-long Mbaere River swamp which regulates much of CAR's river basin; and (f) realignment of the proposed trace of the Bambio-Boda road along existing villages to prevent migration away from the village to the new road, and to avoid portions of primary forest. Part of these measures will be implemented under the proposed Natural Resources Management Project which was appraised in August 1989. In the interim, the Government has taken measures to prevent village farming and cultivation along the portion of the road that has already been constv zcted. The Study recommends that CAR huild on these ongoing efforts to protect the forest. C. Bank Group Involvement in the Transport Sector 2.40 Since 1969, the Bank Group has mainly been involved in assisting development of the highway sector, with four IDA Credits (Credits 146-CA of 1969, 199-CA of 1970, 847-CA of 1978, and 1258-CA of 1982 for the Fourth Highway Project, which was the last IDA-financed operation in the transport sector) totaling US$46.5 M (including US$4.5 M for a supplemental Credit for High- ways III, in 1980). These credits focussed on road reconstruction, rehabilita- tion and maintenance, and technical assistance and training to the then Ministry of Public Works (MPW). 2.41 The success ratings of these projects were mixed. During the period of the Bokassa regime (1976-1980), the road network deteriorated cc.nsiderably, and had to be substantially rehabilitated during the Fourth Highwey Project. Much of the previously trained staff had left, leaving a serious gap in implementation capacity. While the physical part of the Fourth Highway Project was relatively well executed, transfer of technical knowledge remained insufficient because of a poorly motivated civil service and insufficient training ability of expatriate assistants. Continued weaknesses have been MPW's limited capacity to implement these projects and to establish an adequately funded reliable maintenance organization, lack of qualified staff, and slow results in institution building despite a substantial amount of technical assistance. - 14 - 2.42 Lessons learned include that given CAR's limited implementation capacity and the long span it would take to educate and train a public works force capable of maintaining the country,'s sizable road network, road maintenance in CAR should increasingly be carried out by contract; and in selecting technical assistance, greater weight should be given to the training ability of expatriate consultants. These lessons have been taken into account in the preparation of the Transport Sector Project. 2.43 The above four operations have been critically reviewed in a Project Performance Audit Report which will be issued shortly and which points especially to the weaknesses mentioned above. The PPAR confirms the analysis made on the road sector in the CAR Transport Sector Strategy Note (December 27, 1989, available in the Project File), which served as the basis for the formulation of the TSP and was discussed with the Government during appraisal in the fall of 1989. The issues raised in the Strategy Note and the PPAR with respect to CAR's road rehabilitation and maintenance capacity are proposed to be resolved by (a) improving donor coordination to finance high priority projects based on continued economic and physical planning in order to achieve a sustainable road rehabilitation and maintenance program, including rural roads and other transport sector investments, over a ten-year period (para. 4.01); (b) shifting the focus on improving road maintenance by force account to carrying out these works by private enterprise, including promotion of a national construction industry, and by limiting MPW's involvement to programming, control and supervision (paras. 4.0914.10); (c) strengthening Government staff in these managerial tasks rather than in carrying out works themselves (para. 4.23); (d) establishing an appropriate personnel management system to improve staff morale and to encourage junior staff (para. 4.23); (e) training local staff in project preparation, application of appropriate technologies, investment planning and supervision in order to gradually lessen CAR's dependence on expatriate technical assistance (paras. 4.16/17, 4.19, 4.23124, 4.31, 4.33); (f) maintaining a computerized system of actual costs of project implementation to ensure up-to-date cost data by project implementation (para. 4.39); and (g) improving management and utilization of road maintenance funding (paras. 6.05-6.07). 2.44 Rationale for Continued Bank Group Involvement. Experience with past projects and, in particular, the structural adjustment program that was put in place in 1986, revealed that a broader approach of transport sector development was needed to tackle the sector's institutional aspects, its development strategy and planning, and donor coordination in order to focus on priority investments. The Government and the Bank concurred on the need to prepare a transport sector project that would encompass these objectives. Other donors, also active in the sector, joined in developing a coherent sector strategy which was agreed during a donor consultation meeting in March 1990 and will be the cornerstone of transport sector development throughout the nineties. The Bank Group's role will be to continue to help promote and maintain this strategy during this period and to ensure that it remains consistent with the overall structural adjustment and expenditure policies set for the CAR economy. III. TRANSPORT SECTOR POLICY MEASURES 3.01 In order to address the issues described in Chapter II, in partrculart to rationalize transport sector performance and to reduce the cost of transport to the economy, the Government has adopted a coherent set of transport sector policy measures. These measures, which have been laid down in a declaration of - 15 - sector policy (Annex 3-4) endorsed by the President of the Central African Republic, constitute an integrated package of the TSP and are related to transport liberalization; adjustment of transport sector instit-itions and specialized agencies; adherence to careful sector investment planning; establishment of an adequate road maintenance strategy, including a transfer from current force account methods to using private enterprise and a stronger management of the Road Fund; a greater transparency of the river transport tariff qystem; implementation of a road safety program, and more efficient procurement procedures. A timetable for the implementation of these measures is contained in Annex 3-5. 3.02 Liberalization of the Transport Industry. As a first measure to liberalize the transport industry, the role of BARC (para. 2.10) will be substantially revised. This revision is based on the recommendations of a Task Force on Road Transport, established by MTAC ad part of the Government's commitments under SAL II. The agreed recommendations are fully consistent with the measures agreed under SAL II and include among others (a) abolishment of BARC's monopoly by having it compete for supplying transport services together with other transporters and forwarding agencies and by abolishing the 102 penalty commission; (b) representation of the interests of CAR transporters in Douala and surveyance of the adequate application of the bilateral agreement between CAR and Cameroon regarding the sharing of transport between CAR and Cameroonian truckers (para. 2.04); and (c) continuation of the collection of taxes (TCA -- para. 2.34) on behalf of the Treasury and statistics of transport data for MTAC policy making. The measures agreed to under SAL II (removal of BARC's monopoly and the 102 penalty commission) have been completed as part of the conditionality for negotiations of the IDA credit for the TSP. After two years of operations under its revised statutes, the merits of BARC continuing as a separate organization will be reviewed. 3.03 In iddition, the Government will implement the agreed recommendations of its Task Force which has reviewed the role of the Central African Maritime Shipping Council (CCAC) (para. 2.12). These recommendations include, that CCAC will reduce its operational costs; abolish all directives and decrees providing CCAC with the sole allocation of shipping rights; and abolish the sale of transport rights of CAR merchandise to a sole forwarding agent against commis- sion. Instead CCAC, with a reduced staff and budget, will solely operate as a service organization to help shippers locate most favorable maritime transport. To this end, CCAC will acquire the technical capability to enable it to carry out its service function through an appropriate training program of its staff with UNCTAD assistance. In addition, CCAC will be regularly audited. with the first audit taking place before mid-1990. After two years, CCAC's performance in its revised capacity will be reviewed in order to make further corrections if necessary, including a decision on the merits of CCAC continuing as a separate agency. 3.04 Transport Controls and Tariffs. Road and river transport in CAR are subject to many controls which hamper traffic and unnecessarily increase transport costs. Ad hoc commissions in 1988 and 1989 examined the problems of transport controls and made recommendations for their removal. The Government has issued decrees to implement these recommendations. Transparency of the river transport tariffs is complex, and consists of many different elements making it difficult to determine their relation to the actual cost of transport. During the TSP, a study will be made with a view to establishing a simplified and - 16 - systematic tariff system, so as to ensure clarity to shippers and rational pricing. 3.05 Institutional Reforms. MTPAT and MTAC will be reorganized in accordance with new organization charts to be agreed during negotiations and which should reflect the staff reduction agreed under the Structural Adjustment Program ("Plan dteffectifs"). With regard to MTPAT, its reorganization concerns especially the Department of Public Works (DPW) to achieve improved efficiency of the road maintenance task. The equipment workshop of the Equipment Directorate will be turned into a self-sustained commercial operation. Additional reforms will be the creation of a new Department of Human Resources responsible for personnel management and training (including MTPAT's Training Center). Similarly, MTAC will create a Division of Human Resources to improve efficiency of personnel management and training, and regroup several departments to permit a more efficient preparation of transport sector policy making, supervision of specialized agencies, and control of traffic and transport regulations. 3.06 ASECNA. In consultation with ASECNA, which has its headquarters in Dakar, the Government will carry out a study of the optimal local staffing requirements of ASECNA's services in CAR with the objective of reducing its current payroll. In addition, an audit of its accounts will be carried out to verify, in particular, the use of funds, the status and recovery potential of receivables, and, generally, to improie ways to economize on expenditures. Also, a market study will be carried out to explore the potential for additional revenues that could be generated from its meteorological services in CAR. These studies would be completed for review before mid-1991. 3.07 Investment Planning. Sector planning will be further strengthened by assisting the Interministerial Planning Cell for Transport and Public Works (IPCTP) in the preparation of the annual investment budget. Selection of projects will be based on the highest economic return (in any event not less than lO0), and affordability to CAR in terms of recurrent cost expenditure. Donor transport sector project proposals will as a rule be reviewed as to whether they fit within the agreed parameters of the investment plan, and meet the above economic and affordability criteria. The proposed transport sector investment budget will be reviewed annually with the Planning Secretariat and IDA and with donors in local coordination meetings, in light of the economic parameters agreed under the structural adjustment program and the availability of foreign and local resources. 3.08 Road Maintenance Strategy. The new maintenance strategy to be adopted by the Government will comprise adherence to an annual maintenance program of an agreed priority network of about 4,000 km of national and regional roads (Annex 3-6). Moreover, programming and decision making will be strengthened by integrating the Road Fund, Road Maintenance and Equipment Directorates, and the MTPAT subdivisions in the preparation and implementation of the annual road maintenance program. Road maintenance and equipment repair will be privatized using foreign and local contractors, including the Cooperative OPPER, with the objective that MTPAT will operate only two maintenance brigades for emergency operations and elimination of critical points. The equipment workshop will be organizationally separated from MTPAT and placed under commercial management. - 17 - 3.09 Road Maintenance Resource Mobilization and Management. Road Fund management will be strengthened to ensure that Road Fund expenditure will be applied to road maintenance only and in accordance with the implementation schedule of the agreed maintenance program. Financing of fuel consumption, salaries, maintenance and repair of vehicles and other expenditures not associated with road maintenance will be gradually transferred to the national (ministerial) budget during the period 1990-93. Road Fund resources will be increased to CFAF 2.7 billion per year by 1993 in constant terms starting January 19F0 to finance the agreed road maintenance program in its entirety. The 1988 Road Fund Audit recommendations (paras. 6.04-6.05) will be fully imple- mented during the TSP, including integration into the Road Fund accounts of all maintenance programs and equipment supplies funded by donors and heretofore not monitored by the Road Fund, in order to permit permanent overall expenditure and performance review. The Road Fund Statutes will be amended to reflect the above modifications. 3.10 Social Costs of the Transport Sector. Several actions will be taken to address social costs associated with transport sector development in CAR, such as implementation of a Road Safety Program to curb the increasing accident rate in CAR, including provision of appropriate controls, signalization, traffic education, and medical services and support. Moreover, the Government will imple- ment the agreed recommendations of the Environmental Impact Study to mitigate the ecological consequences of the road construction through CAR's tropical rain forest. 3.11 Procurement. Following the assessment of the Government's procurement system in October 1989, the Government will carry out the resulting recommenda- tions for reorganizing its procurement procedures, including a training program for procurement staff, in order to accelerate procedures for contract awards. IV. THE PROJECT A. TransRort Sector Program and Objectives 4.01 The project, which was prepared and appraised during Novem- ber 1988-November 1989 with financing from PPF 453 and the French Trust Fund, is designed to finance the transport sector component comprising the road, river and civil aviation subsectors of the Government's rolling Public Investment Plan for the period 1991-93. In addition, following consultations between the Government and donors in March 1990 in the context of the UNDP-sponsored round table conferences and sectoral consultation meetings, a mechanism has been put in place to prepare and to help finance through the TSP, successive future transport sector investment programs over a period of ten years placed in a framework of appropriate sector policy measures, and based on (a) sector priorities; (b) the macro-economic parameters of sector investment agreed under the structural adjustment program; and (c) the Government's capacity to finance the resulting recurrent costs. This mechanism will permit multilateral and bilateral donors, through improved and systematic annual donor coordination, to participate in the investment plan financing in accordance with their own lending procedures and programming. This would enable the Government to ensure sustained financing of a coherent and economically justified sector investment program. Such a mechanism would avoid the interruption of necessary investments that occurred during 1985-89 following completion of the Fourth Highway Project. - 18 - 4.02 The proposed TSP, which would be implemented over a period of five years, equals the size of the 1991-93 transport sector component of the Public Investment Plan (PIP), agreed within the structural adjustment program, which amounts to about CFAF 40 billion (US$132.0 M), or about 30? of the annual investment budget. This sectoral proportion was agreed under the structural adjustment program. The proposed additional investment of about US$6.5 M equivalent concerns reconstruction work on the Bangui-Bossembele road (RN1) which is necessitated by the creation of a hydro-electric dam lake near this road under the Energy Project (para. 4.05). Consequently, no major additional investments are envisaged beyond the TSP in order to (a) remain within the sector's investment limits; (b) contain resulting recurrent charges to be financed by the national budget; and (c) encourage donors to help finance only priority investments with the highest possible economic rate of return. The contents of the PIP for the transport sector have been agreed with the Government and were confirmed with the donor community during the above-mentioned donor consultation meeting. Because the most urgent needs for the 1991-93 period consist of rehabilitation and maintenance of the priority road network, about three quarters of the investment program (see para. 4.36) is devoted to the road subsector. Future transport sector programs are likely to devote greater attention to investments in improvement of the navigability of the Oubangui River and replacement of SOCATRAF's fleet of barges anc tugs. The investment program is accompanied by a coherent set of policy measures, described in Chapter III, which have been adopted by the Government and fully endorsed by the donors as an integrated part of the TSP. B. Proiect Description 4.03 Specifically, the TSP has the following components: Road Sector Component (a) rehabilitation and maintenance of the priority national and regional road network of about 4,000 km of which about 420 km are paved, including portions of national roads passing through secondary cities; rehabilitation or/and maintenance of 720 km of rural roads; and ferry and bridge repair; (b) reconstruction of part of National Road NR3, and devia- tion/reconstruction works on RN1 needed as a result of the M'Bali hydro-electric dam construction (US$18.0 M IDA Credit 1978-CA for the Energy Projec_); (c) provision of equipment, vehicles and spare parts for routine road main- tenance, and ferry services; (d) rehabilitation of office facilities and improvement of the bus and freight station in Bangui; (e) development of the national construction industry to encourage private sector participation in road maintenance, including technical assis- tance to private contractors; (f) strengthening of the National Public Works Laboratory; technical assistance and logistical support to MTPAT in programming, supervision - 19 - and monitoring of road works; training of MTPAT staff, including seminars and scholarships; (8) detailed engineering and supervision of the rehabilitation and regraveling works; detailed engineering of the Mbaere river and swamp crossing at Bambio; and (h) implementation of a road safety program. River Transport Component (a) pre-feasibility and feasibility studies regarding the construction of a river flow regulating dam on the Oubangui River; and (b) study to review SOCATRAF's river transport tariff. Civil Aviation Component (a) improvement of airport security; studies regarding the reorganization of ASECNA's services in CAR and audit of ASECNA's accounts; and (b) spot improvement of the runway at Berberati airport and feasibility study to examine the possibility of adapting Berberati airport for regional air traffic. Technical Assistance, Training, and Special Studies provision of projct implementation assistance and training of MTPAT, MTAC, and Planning Cell staff, including seminars and scholarships, to improve managerial and technical capability, and to prepare the next phase of the transport sector investment program; strengthening of MTPAT's supervision capacity, and assistance and training in procurement; carrying out of special studies to improve CAR's procurement system, to promote its local construction industry, and to develop a master plan for rural roads rehabilitation and main- tenance, and to establish a computerized program to monitor overall project implementation and expenditure. C. Road Sector Component Road Rehabilitation and Maintenance Program (Map IBRD No. 22298) The rehabilitation and maintenance program of the national and regional road network has been subdivided into separate lots, discussed bel-,w. 4.04 Reconstruction of Part of the National Road NR3 (RN3) -- Lot 1. The section of the RN3 between BossembdlM and Yaloke (about 70 km), which is part of the main international link of CAR between Bangui and the port of Douala in Cameroon, and is of crucial importance to CAR's economy, will be upgraded to paved standards. This section is currently a modern gravel road with a traffic of about 143 vpd, about 20Z of which are heavy trucks travelling to and from Douala and to Chad. Reconstruction to paved standards will include double- surface treatment, while retaining the characteristics of the existing alignment. - 20 - 4.05 Reconstruction of Part of the National Road NR1 (RN1) -- Lot 2. As a result of the Energy Project (US$18.0 M Credit of May 1989), which helps finance the construction of a dam on the M'Bali River to increase CAR's hydroelectric power supp'.y, the RN1 would on several locations be below the highest water level of the dam lake. To ensure continued passability, a deviation of about 7.5 km of the road will need to be constructed between Bangui and Bossembele, while the portion of the existing alignment that passes through four thalwegs of the future dam lake area needs to be elevated by about a meters over a distance of 12 km. At these four locations, large metal culverts will be installed with a surface of 30 e2 and 50 mi, respectively, to permit the passage of water during the wet season. Construction works are scheduled to start in October 1990 in order to complete the main earthworks and installation of culverts before the beginning of the next wet season in July 1991. After settlement of the reconstructed sections, the laterite surface will be paved during the 1991-92 dry season. To allow international transport traffic to continue during the works, a temporary deviation will be built along the road sections under construction. 4.06 Rehabilitation and Periodic Maintenance of the Existing Paved Roads -- Lot 3. The paved roads to be rehabilitated under the project are part of three main road axes, the remainder of which are built to modern gravel standards: (a) Bangui-Bossembele (148 km. 300 vehicles per day -- vpd) -- RN1; (b) Bangui-Damara (63 km. 400 vpd); (c) Damara-Sibut (111 km, 140 vpd) -- RN2, which is the main road to CAR's second largest town, Bambari; and (d) Bangui-M'baiki (98 km, 130 vpd) -- RN6, an important center of forestry development and wood processing. Shoulders will be cleared over a distance of about 420 km, followed by patching of damaged road sections over about 25 km; shoulder rehabilitation over 125 km; double surface treatment over 242 km; and reconstruction of the first 35 km of the Bangui-Damara road, which are seriously deteriorated, including installation of a large culvert to replace a broken bridge. In addition, manual maintenance activities such as clearing ditches, and repair of structures will be intensified over the entire paved network to reduce future road deterioration. 4.07 Rehabilitation, Periodic and Routine Maintenance Strategy on the Priority Gravel/Earth Road Network -- Lots 4-7. To rehabilitate and maintain the existing priority gravel/earth road network of about 2,970 km (2,470 km of national roads -- RN -- and 500 km of regional roads -- RR -- Annex 3-6), a new strategy has been developed consisting of a set of coherent operations over time based on a "Decision Table" (Annex 4-7). During the TSP, about 1,030 km will be rehabilitated and graveled. This program will be repeated every six to ten years during following planning periods in accordance with traffic levels, soil and climatological conditions. After rehabilitation and regraveling, grading accompanied by spot graveling will be carried out over about 850 km. Routine mechanized maintenance will be carried out every six or twelve months. The timing and frequency of the above operations will be determined in accordance with traffic volume and also climatological circumstances, since the northern and southern part (roughly above and below the 6th parallel, see Map IBRD No. 22298) of CAR have a different frequency of rainfall. During the next plan period, the road network (630 km) which is being completed in the Ouham-Pende Regional Development Program (cotton producing area) will be added to this program. 4.08 The above rehabilitation and maintenance program of the earth road network has been subdivided into areas of approximately the same road volume - 21 - which can each be implemented and financed individually by separate donors. They consist of: (a) the East Zone (761 km -- Lot 4). This zone comprises the sections Sibut-Grimari (RN2, 120 km, 80 vpd); Grimari-Bambari (RN2, 78 km. 60 vpd); Bambari-Alindao (RN2, 118 km, 46 vpd); Bambari-Bria (RN5, 211 km, 21 vpd); Alindao-Kembe (RN2, 112 km, 31 vpd) and Kembe-Bangassou (RN2, 122 km, 21 vpd); (b) the Central Zone (558 km -- Lot 5). This zone comprises the road section- Sibut-Kagabandoro (RN8, 152 km, 89 vpd); Kagabandoro-Ouandogo (RR10, 60 km, 55 vpd); Ouandogo-Batangafo (RR1C, 48 km, 25 vpd); Kagabandoro-Mbres (RN8, 83 km, 35 vpd) and Damara-Bouca (RN4, 215 km, 30 vpd); (c) the North-West Zone (931 km -- Lot 6). This zone comprises the road sections Bossembele-Bossangoa (RN1, 148 km, 55 vpd); Bossangoa-Bedaoyo (RN1, 195 km. 37 vpd); Bossembele-Bossemtele (RN3, 143 km, 143 vpd); Bossemt6l-Bouar (RN3, 149 km, 79 vpd); Bouar-Garoua Boulai (RN3, 154 km, 63 vpd) and Bouar-Bocaranga (RR4, 142 km, 43 vpd); (d) the South-West Zone (722 km -- Lot 7). This zone comprises the road sections Baoro-Carnot (RN11, 95 km, 45 vpd); Carnot-Berberati (old RN6, 94 km. 99 vpd); Yamando-Bambio (RR26, 85 km, 20 vpd); Berberati-Nola (RN10, 136 km, 64 vpd); Nola-Salo (RN10, 55 km, 35 vpd); Berberati-Gamboula (RN6, 91 km, 70 vpd); M'baiki-Boda (new RN6, 85 km, 49 vpd) and M'baiki-Mogoumba (RR1, 81 km, 53 vpd); (e) bridges and culverts on the priority road network; and (f) Ouham-Pende (North-West cotton growing area) regional road network (630 km) being rehabilitated and maintained under the Ouham-Pende regional development program. The rehabilitation and maintenance programs will be designed for implementation over three-year periods to attract private contractors to participate, in accordance with specifications based on the "Decision Table." 4.09 Privatization of the Rehabilitation and Maintenance Program. While road rehabilitation and periodic maintenance have thus far been carried out through foreign contractors, permanent maintenance has been the task of MTPAT's departmental forces. However, despite training and technical assistance during implementation of the Fourth Highway Project, MTPAT has had difficulties in maintaining its portion of the priority road network (about 2,000 km) with its own brigades. Therefore, during the TSP, mechanized maintenance will essentially be contracted out, while MTPAT will put more emphasis on strengthening its ability to plan, program a-d manage, control and monitor implementation of rehabilitation and maintenance works. Consequently, its four mechanized brigades will be reduced to two which will be assigned to the repair of critical road sections and emergency requirements that cannot be covered by contract. Ferry operation and maintenance will also remain the responsibility of MTPAT operators. The results of the privatization program will be reviewed with MTPAT and the donors by the end of 1992 to review its performance, and to determine its continuation and expansion during the next investment phase. - 22 - 4.10 Development of a Domestic Construction Industry. Manual maintenance will be carried out by village Ocantonnage" and small contractors associated in the OPPER cooperative (para. 2.26), which were trained under the Fourth Highway Project and succeeding technical assistance programs, and have been operating successfully since then. These tasks will principally consist of patching, brush clearing, drainage repairs, and simple maintenance of structures. A special effort will be made to encourage medium-size domestic contractors currently engaged in the building industry to expand their business into mechanized road maintenance. This would be achieved through (a) launching training works on some sections of the road network (Sibut-Kagabandoro and M'baiki-Mongoumba); (b) establishing an equipment renting unit (see para. 4.11 below) at the MTPAT Equipment Workshop, which will manage the equipment that will become available due to the reduction in force account. This equipment would be made available to local contractors under hire/purchase agreements, whereby MTPAT would deduct from the contractors, invoices the equipment amortization and interest charged; (c) encouraging subcontracting to foreign contractors; and (d) providing techni- cal assistance to assist private contractors in the management and operation of their enterprises (preparation of cost estimates, bids, billing, accounting, programming) and works on site. In addition, the contractors would be invited to participate in training seminars at the Public Works Training Center. Some five domestic contractors have been identified, who expressed keen interest in branching out to mechanized maintenance works. Before implementing this initiative, a study will be carried out with remaining PPF funds to define in greater detail the modalities of developing a national construction industry. This study would in particular determine the requirements for appropriate financial and technical training, as well as the creation of the necessary financial and legal environment to permit such an industry to flourish. These requirements would be regularly reassessed as the program progresses to permit adaptation where necessary. 4.11 Exploitation of the MTPAT Equipment Workshop. With financial and technical assistance from the Government of Japan, MTPAT has obtained a modern equipment workshop completed in 1989 and valued at about US$12 M. The workshop contains sophisticated machinery for the repair of equipment that has been donated by the Government of Japan over the last decade to assist MTPAT in the carrying out of maintenance works. With the new strategy for road maintenance to be applied by CAR during the TSP, most of MTPAT's equipment, that will be managed by the workshop's equipment unit, will be gradually sold to domestic contractors, while a limited stock will be selected to constitute MTPAT's two remaining brigades. The workshop would also be used for equipment repairs needed by private contractors, forestry companies and the river transport company SOCATRAF, as these are often forced to import expensive new parts or equipment for lack of an adequate local repair facility. 4.12 Despite efforts to train national staff in the technical operation of the workshop's machinery, competent staffing is likely to remain insufficient to adequately utilize the workshop's potential. In addition, inefficient use and operation of the machinery could lead to costly breakdowns and operational losses, which would have to be financed from the recurrent budget, in particular from the limited resources of the Road Fund. To ensure that the workshop will be utilized efficiently, the Government has decided -- and the donating Government of Japan agreed -- that it be commercially managed. 4.13 Initial surveys revealed substantial interest of private enterprises operating in CAR and in neighboring countries in such an arrangement. A study - 23 - will be carried out to determine the appropriate financial, legal and technical parameters for operating the workshop under commercial management which is planned to be installed as of January 1991. In addition, as of January 1990, three mechanical experts have been assigned to the workshop under the Interim Transport Sector Technical Assistance ani Training Component of the Economic Management Project (para. 2.08), to initiate operation of a limited number of machines in order to gain the necessary operating experience needed to support a decision on the appropriate formula of commercial management. 4.14 Rural Roads. As a result of the feasibility studies regarding the rural roads sub-component, about 1,700 km of rural roads were identified which constitute essential links between the rural development zones and the national and regional road network. Because it would be difficult to implement the rehabilitation and maintenance of these roads by contract, in view of the limited size of works involved, these works would be carried out by existing specialized agricultural agencies. During the TSP, a beginning will be made to carry out such works through SOCADA, the cotton producing agency. The rural roads program would especially benefit the cotton development effort of ongoing agricultural programs. SOCADA's capacity was evaluated to permit a work program of about 240 km per year, that is 720 km during the plan period of 1991-93. Works would include earthwork, clearing, upgrading and improvement of access ramps to bridges; improvement of the wearing course; and construction or repair of small structures and culverts. Payment will be based on work performed in accordance with agreed performance criteria. In addition, village teams ("cantonnage") and the OPPER cooperative will be integrated in the maintenance program. Generally, existing equipment will be used, renovated, and repaired where necessary to improve SOCADA's implementation capacity. Alternatively, available equipment will be rented from the Equipment Workshop. 4.15 The rural roads rehabilitation and maintenance program will be determined in accordance with a master plan for rural roads ("Schema directeur") to be established during the TSP on the basis of a rural roads feasibility study carried out during project preparation. This program should permit investment and maintenance expenditures to be carried out on the basis of economic and engineering criteria and regional agricultural productivity. At the end of the trial period during the 1991-93 plan, the performance of this initial rehabilita- tion and maintenance program will be evaluated to determine the potential for an enlarged rural road rehabilitation and maintenance program during the following phase of the transport sector investment program (1994-96), using brigades of other specialized agencies. Additionally, in close consultation with MDR and the Specialized Agricultural Agencies, studies will be launched to prepare a rural environment improvement program, which would also include further improvement of rural infrastructure, for implementation during the following plan period of 1994-96. 4.16 Pilot Actions. During the TSP, a number of actions will be launched to develop appropriate technologies for road infrastructure operations, and a data bank will be created of feasibility and engineering studies and results of how works are actually performed. The purpose of these actions (Annex 4-8) is to establish a framework to permit national staff (of MTPAT, MDR, and local technical institutions) to obtain and develop practical knowledge of how to rehabilitate and maintain road infrastructure within the particular climatolo- gical, geotechnical, and soil conditions of CAR. Thus far, little transfer of such practical knowledge has been attempted nor have study results and learn processes been properly recorded, stored and kept accessible to local staff. - 24 - As a result, knowledge and experience often retained by consulting firms and passing technical assistance financed by donors have been lost to the country. 4.17 The pilot actions include (a) establishment of a national capability in preparation, management and control of road infrastructure works; (b) develop- ment of appropriate technologies in maintenance of paved and gravel/earth road surfaces and shoulders; and (c) development of local materials (including locally available wood for the construction and repair of small structures) and techniques adapted to the local soil and climatic conditions to maintain the road network better and at lessor cost. These pilot actions will be launched and followed up through seminars (held at the MTPAT training center), during which specific working groups will be established for different subjects (maintenance of paved roads; improvement of the durability of roads; utilization of local woods and materials; organization and active use of village workers -- canton- nage -- in road maintenance). The groups will consist of responsible ministerial staff, technical assistants, small and middle size local enterprises, the public works laboratory, and consultants supervising works. Practical test results will be presented by each group for discussion in follow up seminars and will be recorded in technical papers, which will subsequently be used to draft critical sections in specifications, bid and contract documents. This procedure will permit the national services to retain lessons learned and to maintain its road network with greater confidence and ability, and lesser dependence on expatriate technical assistance. 4.18 Public Works Laboratory (LBTP). Continuing under the supervising role of MTPAT, LBTP will assume a broader role in participating more actively in the geo-technical aspects of studies, control of road works and maintenance, construction of buildings, research, and geo-technical training at the Public Works Training Center. LBTP's staff will be strengthened through assistance provided by France. LBTP will charge for its services on a commercial basis. It will be managed by a director, appointed by MTPAT. 4.19 Implementation Support of the New Rehabilitation and Maintenance Strateay. Annual road rehabilitation and maintenance programming will be carried out under the leadership of a Road Maintenance Management and Coordination Group (RMMCG). This group was formally established at MTPAT in February 1990 and consists of the Director General of Public Works, Director of Road Maintenance, Director of Equipment, and the Road Fund Administrator. RMMCG will meet at least monthly to oversee progress and would be joined at the annual planning process and intermittently (at least quarterly) by representatives from IPCTP, the Secretariat of Planning, and the Ministry of Finance, to maintain a linkage with the national investment and budget expenditure process. 4.20 Initial planning of the road works for each calendar year will be executed in close coordination with the subdivisions. For force account work, each of the two remaining mechanized maintenance brigades will be assigned an annual program of elimination of critical interruptions of the road network or bridge repair. Sub-divisions receiving private contractors and MTPAT brigades will be responsible for supervision and will be provided with logistical support. Clear reporting mechanisms will be established requiring subdivisions to state the timing of the technical progress of work, number of km done, and bridges repaired. The reporting mechanism will serve as a feedback on whether the road rehabilitation and maintenance system functions adequately or needs adjustment. These data will be established by the Monitoring Division of the Directorate of Public Works with assistance from the Public Works Laboratory (LBTP). The - 25 - Monitoring Division will also carry out regular traffic counts on the road network under MTPAT's responsibility in accordance with appropriate technologies to be established, perfected and supervised by the technical assistance team. Results will be submitted to and continuously analyzed by RMMCG to enable it to direct logistic supplies, and accelerate or adjust the work program as necessary. RMKCG will prepare quarterly reports on the progress of work, which will be sent for review to the donors associated with the program. 4.21 Before launching the rehabilitation and road maintenance planning for the following year, generally during September-November, a detailed analysis will be made of the road maintenance record of the ending year, to review performance and adherence to the maintenance schedule, and to review the effectiveness of channeling Road Fund revenues in support of the maintenance program. The lessons drawn from this exercise will be at the basis for the planning of next year's program. Before November 30 of each year, MTPAT will consult with IDA on the road rehabilitation and maintenance program established for the following year in accordance with progress achieved during the previous year, requirements for the following season, contractor performance and equipment availability, and avail- able Road Fund revenues. 4.22 To program, manage and coordinate the rural roads program, a rural roads coordination cell will be attached to the office of the Director General of Public Works. This Cell will consist of two rural road engineers, assisted by an expatriate engineer/economist, to establish coherent standards for rehabilitation and maintenance works, program these works and coordinate implementation with MDR and SOCADA. The annual maintenance program will be determined at the end of each preceding year, based on performance and estimated capacity and experience of SOCADA. 4.23 Institutional Strengthening of MTPAT. A strong technical assistance program will be put in place to help the Government implement the road component of the TSP, in order to avoid the institutional weaknesses that adversely affected the execution of previous highway projects (para. 2.41). A list of the technical assistance positions is provided in Annex 4-9. At MTPAT, the Department of Public Works (DPW), and the Equipment Directorate will be strengthened in managing, controlling and supervising work by contract, managing equipment maintenance and utilization, and creating a limited, but more efficient, departmental force for maintenance work. In addition, the Ministry's personnel management will be modernized to establish a more flexible and dynamic personnel policy so as to encourage and retain younger engineers and economists in career development. During the interim training project (para. 2.08), an analysis is being made of the capacity of MTPAT personnel, including sub- divisional staff, based on the work already carried out during the feasibility studies. Moreover, the interim project is providing assistance in the implementation of decisi,ns regarding reduction in staff and improving skill mix. The agreed new organization chart of MTPAT (Annex 4-10), including a new Human Resources Department, and the modified DPW, will be introduced before credit effectiveness. The appointments of the Director of Road Maintenance and of the Director of Human Resources, with qualifications and experience acceptable to IDA, will be a condition of credit effectiveness. 4.24 Specifically, four technical assistants at MTPAT will assist in each of the following critical functions: planning and programming, studies and procurement, supervision of works, and monitoring of project implementation. In addition, a chief training officer who would be a human resources expert, - 26 - will assist the Public Works training center in the preparation and organization of training courses and seminars in planning, management, and supervision of works, general subjects related to the transport sector, and the use of appropriate technologies. To prepare and deliver such courses and seminars, short-term consultancies will be used, including expertise locally available. The chief training officer will also help in completing the task of establishing and maintaining an adequate personnel management policy, for which the Director of Human Resources will be responsible. A chief mechanical engineer and two mechanics will be provided to the Equipment Workshop, especially during the initial years of the proposed commercial operation of the workshop, in order to reduce the charges and risks likely to be incurred by an expatriate management group. Scholarships will be provided on a selective basis to acquire capabil- ities that can not be obtained through the MTPAT training center. 4.25 Supervision Capacity at MTPAT. In addition to consultants' services required for detailed engineering and control of road construction, rehab- ilitation and periodic maintenance works, and the technical assistance at MTPAT, the project provides for short-term missions to assist and train MTPAT staff in overall project supervision. This assistance will be provided by a consultant firm selected by the Government. These actions should gradually help reduce MTPAT's dependence on expatriate technical assistance for managing project implementation. 4.26 Road Safety Program. As an additional pilot action of a different nature, CAR will implement a Road Safety program, prepared by MTAC, that comprises a broad range of activities, including strengthening and training police forces in controlling traffic rules; provision and installation of equipment for traffic regulation, signalization and safety; application of technical vehicle controls; provision of improved medical and ambulance support services; establishment of appropriate statistics for accident recording and analysis; creation of a traffic safety education program and testing; and a drivers school. The project would help finance the investments required for signalization, the creation of rescue brigades, and traffic education and related technical assistance. D. River Transport Component 4.27 Improvement of the River Flow of the Oubangui. As a follow-up to ongoing pre-feasibility studies financed by the European Economic Communities (EEC), the project provides funds for the preparation of a feasibility study for the construction of a possible dam over the Oubangui, about 60 km above Bangui, to regulate its flow in order to extend the river's navigability during the dry season. The Government will ensure that the aforementioned study will be accompanied by an environmental assessment and will include in the terms of reference of the study the examination of potential issues with ripariani states (Congo, Zalre). Technical assistance to the river transport agency SOCATRAF, financed by France, will be continued for equipment maintenance and river transport and to the river maintenance brigade SCEVN, including replacement of the equipment of one of its four rock removing brigades. The appropriateness and adequacy of this technical assistance to SCEVN, which is also financed by France, is being evaluated by the French Ministry of Cooperation with IDA assistance in order*to better determine the scope and tasks of the assistance proposed to be financed during the TSP. - 27 - E. Civil Aviation Component 4.28 Improvement of Airport Security and Facilities. The security of Bangui airport has been affected several times in the recent past. In addition to several security measures having been taken recently, the airport's security will be further improved during the TSP by constructing a protecting fence to surround the immediate airport grounds. Moreover, small improvements will be made in the airport's facilities for a smoother handling of passenger traffic. Finally, spot improvements will be applied to the paved runway of Berberati airport, which has deteriorated to a level that poses a hazard to the fairly frequent local traffic of private commercial aircraft. These works will be carried out by local contractors. In addition, a feasibility study will be carried out with respect to the possible improvement of Berberati airport to service regional air traffic. 4.29 Meteorological Services. To improve meteorological services in CAR in support of international and local private air transport, about 10 small stations operating with solar energy will be inste'.led to provide meteorologi- cal information. This information will also be channeled to agricultural in- stitutions for dissemination to farmers by radio. 4.30 Institutional Strengthening of MTAC. At MTAC, the establishment of a Human Resources Division will be essential to develop a sound personnel management system, and to strengthen MTAC staff in technical matters of surface, air and river transport, and meteorology. The appointment of the Division Chief, in charge of the Human Resources Division, will be a condition of effectiveness. The agreed modifications in MTAC's organization chart (Annex 4-11) will be implemented before credit effectiveness. Implementation of the organizational changes in MTAC's subsidiary agencies (BARC, CACC, and ASECNA) will be completed in accordance with the Action Plan provided in Annex 3-5. F. Other Items 4.31 Planning Cell. The technical assistance program to the Planning Cell, which has been launched under the interim technical assistance and traininqg program of the Economic Management Project (para. 2.08), will be continued during the TSP. About 24 man-months will be provided for training in transport sector planning and computer ability. In addition, in view of the coordinating role of the Planning Cell with respect to implementation of transport sector investments, 50 man-months of expatriate assistance will be provided to assist and train government staff in the execution of the TSP. 4.32 Office Improvement. To improve the Road Fund's computerized accounting facilities, the Road Fund will move into offices, to be rehabilitated under the project, which will be partially vacated by the Equipment Directorate which in turn will move into the newly build Equipment Work Shop financed by Japan. To permit LBTP to carry out its functions more efficiently, the project provides for the supply of additional research equipment and the rehabilitation and extension of its offices, using in part adjacent offices to be vacated by the Road Fund. Finally, the Road Freight Station ("gare routi&re") in Bangui, which is managed by BARC, will be improved. This freight station is of importance in facilitating international road traffic between the Central African Republic, Chad, and Cameroon. - 28 - 4.33 Evaluation of Technical Assistance. Detailed terms of reference are being prepared for each technical assistance position, with strong emphasis on the capability of transferring knowledge to national staff. Both the technical assistance and training programs financed under the project will be subject to half-yearly critical analysis on the progress made. The consulting firms and technical assistance specialists will be evaluated on increased efficiency of nationals and larger volume of work performed. Before continuing under the project with the technical assistance started under the interim technical assis- tance and training component of the EMP, the interim results will be evaluated so that corrections or adjustments can be made. It is expected that, at the end of the project period, clear improvement will be achieved in the Government's supervision capacity, so as to reduce its dependence on long-term expatriate assistance. 4.34 Studies. The program of studies can be summarized as follows. During the project, detailed engineering will be carried out for rehabilitation of the paved, gravel and rural roads. In addition, studies will be carried out regarding the crossing over the Mba6rd river and swamp area at Bambio taking into account the recommendations of the Environmental Impact Study. Assistance will be provided in strengthening procurement regulations and rules, and training government staff in appropriate application. A study of SOCATRAF's transport tariff will be carried out with a view to improve transparency and establish a closer relation with actual transport costs. This study will liaise with similar studies being carried out under the Congo Parastatal Enterprise Reform Project, which includes a review of ATC (Agence Transcongolaise de Communication), the Congolese transport company. Diagnostic studies will be carried out with respect to the merits of BARC and CCAC continuing as separate agencies, and if so with what personnel strength and objectives. Feasibility studies will be continued with regard to the construction of a possible river flow regulating dam on the Oubangui. With regard to civil aviation, an audit will be carried out of the ASECNA-CAR accounts and proposals will be prepared with respect to the rationalization of its internal organization. Moreover, the project provides for studies to promote the national construction industry, to develop a master plan for rural roads rehabilitation and maintenance, and a rural environment improvement operation, and to prepare the implementation of the next phase of the transport sector investment program. G. Proiect Costs and Financing 4.35 Total cost of the project in January 1990 prices (including taxes and duties, amounting to US$12.5 M), amounts to US$138.7 M, with a foreign exchange component of US$91.0 M. Cost estimates are based on recent data for civil works and detailed unit prices, and include lOX for physical contingencies. These contingencies are considered acceptable, given the type of civil works to be performed. Reconstruction, periodic and routine road maintenance expenditures are based on prices prevailing in neighboring countries and also in ongoing main- tenance projects in CAR financed by the Road Fund and by bilateral donors. 4.36 The estimated costs per man-month of technical assistance, excluding contingencies, allowances, foreign and local travel and local subsistence allowance, is estimated at US$11,500 equivalent; including these allowances, the cost per man-month is about US$16,000 equivalent. The estimate for one man-year scholarship for training staff is about US$10,000 including travel. The cost of buildings is based on prevailing prices in CAR. - 29 - 4.37 Price contingencies for the foreign exchange components have been estimated at 4.9 per annum during 1990-96, and for local costs at 3.02 during 1990, 3.52 during 1991-92, and 4.02 during 1992-96. The cost of the project is summarized in the table which follows (details are given in Annex 4-12): Prolect Cost Estima+As ------ CFAF Millions -- US- UN Million ----- X Forolgn Total X of Category Local Foreln Total Local Forelin Total Exchanae Base Cost RNI Reconstr. MIBali Dam 869.8 1,444.2 2,304.0 2.9 4.8 7.7 4.0X 8.8X Paving RN3 967.0 2,229.0 3,198.0 8.2 7.4 10.7 8.1% 9.98 Paved Rds.Rehab 2,004.8 8,867.2 6,372.0 6.7 11.2 17.9 9.8X * 14.8X Graveled Rds. 6,940.0 7,5960.8 18,536.6 19.8 25.8 45.1 20.9% 87.21 Rural Roads 715.8 1,044.9 1,766.7 2.4 8.5 5.9 2.9% 4.8X Crit. Points 863.0 637.0 900.0 1.2 1.8 3.0 1.65 2.6X Privatizatior. 289.6 1,188.6 1,478.0 1.0 4.0 4.9 8.8% 4.1X Civil Aviation 71.6 170.4 242.0 0.2 g.e 0.8 0.6X 0.7X Inst. Support 878.2 4,640.4 6,413.8 2.9 15.1 19.0 12.6X 14.9% Studies 260.4 874.1 1,124.6 0.8 2.9 8.7 2.40 8.1X Pilot Actions 144.2 89E.8 540.0 6.5 1.3 1.8 2.15 1.5% PPF 70.6 397.4 468.0 0.2 1.3 1.8 1.1% 1.3X Total Bwe Cost 12,649.9 28,777.7 386,827.6 41.8 79.8 121.1 8e.6x 100.0X Physica l Contingencies 1,087.8 1,676.8 2,714.8 8.6 6.6 9.0 4.0% 7.6X Price Contingencies 738.0 1X831.2 2,s69.2 2.6 6.1 8.6 4.4% 7.1% Total Project Cost 14.825.? 27.285.7 41.811.4 47.8 91.0 138.7 66.8s 114.5X Taxes 3,738.7 8,788.7 12.5 12.5 Tota l Project Cost iS6.59.0 37.874. 36.3 126.2 (Net of Taxes) 4.38 Total external financing of the project amounts to US$105.3 M or 832 of total project cost net of taxes. In addition to taxes, the Government will contribute US$20.9 M equivalent (about 172 of total costs, net of taxes) through the Road Fund (para. 6.06). IDA financing in the amount of US$62.0 M equivalent, represents 492 of total cost net of taxes. Other financing, all on concessional or grant terms, is provided by France (US$16.7 M equivalent for technical assistance to a substantial number of transport sector institutions and agencies (FAC), and for rural roads (CCCE)); Germany (US$6.9 M equivalent for the Ouham- Pende regional roads rehabilitation project in northwest CAR -- KfW -- and for assistance to road maintenance and a ferry renovation and development program -- GTZ); Japan (US$15.1 H equivalent --JICA --, for the reconstruction to paved standards of the Bossemb6ld-Yalok6 road); European Communities (US$1.8 H equivalent for the feasibility studies regarding the possible water flow regulating dam over the Oubangui River) and the UNDP (US$2.8 H equivalent for the repair and reconstruction of bridges). H. Responsibilities and Monitoring of Project Implementation 4.39 MTPAT will be responsible for implementation of the road component, which will be carried out by DPW and monitored by the Monitoring Unit of the Directorate of Studies, Procurement and Control. MTAC will be responsible for - 30 - the components concerning airport security, river transport, road safety, and transport sector studies. MTPAT and MTAC have joined responsibilities for ensuring the adequate functioning of IPCTP. An implementation schedule is given in Annex 4-13. Although the investments for the rehabilitation and maintenance program of the TSP are part of the 1991-93 investment plan, their implementation is 'ikely to stretch over three to five years depending on when these programs are launched, especially those financed by other donors. However, since these programs have been designed as individual operations to be carried out over a three-year period, it is expected that all will be implemented within the six-and-a-half year estimated disbursement time for the TSP. During the TSP, a computerized program will be developed and maintained by the Project Coordinator at IPCTP to ensure continued updating of the actual cost during project implementation so as to ensure accurate cost analysis for anr.ual planning and to provide complete cost data by project completion. In addition, an integrated computer system will be installed, linking the computer stations of the Road Fund, the Equipment Workshop and the project coordination center at IPCTP to facilitate overall planning ar.d supervision of the TSP program. By the end of 1992, a mid-term review will be carried out to take stock of progress achieved with the implementation of remaining policy measures and overall project execution. I. Procurement 4.40 Amounts and procurement methods are estimated as follows: Amounts and Methods of Procurement /a (USS million equivalent) Item ICB LCB Other Cofinancing /b Total 1. CivTI Works 59.2 6.9 6.5 29.7 1l1.B (88.1) (5.1) (3.2) LC C--) (46.4) 2. Training Works -- -- 2.0 -- 2.0 (__) (--) (2 .0) Ld-- (2 . ) 3. Equipment, Vehicles, and Materials 4.0 1.8 -- 2.0 7.3 (8.7) (1.2) (--) t--) (4.9) 4. Incremntal Operating Costs -- -- 0.7 -- 0.7 C--) (--) (0.4) (--) (0.4) S. Technical Assistance and Train;ng -- -- 4.9 12.0 16.9 (--) (--) (4 .8) (-)(4. 8) 8. Consulting Services lo -- -- 3.6 7.0 10.6 (--) (53 61 (3.5) Total 63.2 7.2 17.6 50.7 138.7 (41.8) (6.8) (13.9) (--) (62.0) / Amounts In parentheses indicate IDA financing. /b Cofinancing: parallel financing by donors would be in accordance with their own procedures. /c Force account expenditure L Training works for development of domestic construction industry (para. 4.10). /a Includes US81.5 M PPF financing. - 31 - 4.41 Unless otherwise indicated, procurement arrangements for the project are as follows: (a) Civil works contracts for the rehabilitation of paved and non-paved roads, and equipment financed by IDA will be awarded on the basis of international competitive bidding in accordance with Bank Group guidelines. Procurement of contracts in excess of US$100,000 will be subject to prior approval by IDA. This would cover 902 of the total value of such contracts; (b) requirements for road maintenance (fuel, lubricants, spare parts, tires, materials, and tools costing less than US$50,000.per contract and aggregating to US$1.2 M, and contracts with local small contractors grouped in the OPPER Cooperative costing less than US$150,000) financed through the Road Fund, as well as the construction of buildings costing less than US$150,000, aggregating to US$5.1 M, will be procured following LCB procedures; (c) force account works (para. 4.09) will mainly include repair of critical sections and maintenance of more remotely located roads that are unlikely to attract international bids; (d) contracts for training works up to an aggregate of about US$2.0 M equivalent to be carried out by domestic contractors (para. 4.10) would be let on a competitive basis among such contractors, as these concern more remotely located road sections, which require relatively modest works that are unattractive for ICB. The October 1989 procurement assessment (para. 2.37) confirmed that LCB procedures are technically acceptable, but some require clarifications and rationalization. Procurement procedures also need improvement. The project provides for specific short-term consultancies to assist the Government in avoiding delays in procurement. In any event, LCB procedures to be followed will include local advertisement with public bid opening, and award to the lowest evaluated bidder. Criteria for bid evaluation will be clearly specified in the bid documents and foreign bidders will not be excluded from participating. ICB procurement for goods and civil works will include the standard provision for domestic price preference; (e) consultants financed by IDA will be selected in accordance with Bank Group Guidelines for Consultants, and with terms of reference approved by IDA; and (f) items financed by cofinanciers will be procured in accordance with cofinanciers' guidelines. J. Disbursements 4.42 The proposed IDA Credit of SDR 46.6 million will be disbursed as fol- lows. Allocation and Disbursement of IDA Credit IDA Credit Disburement X of Expenditures Category Amount of Credit Allocated to be Financed /a (SOR MI111on) 1. Civil Works 32.0 95 2. Equipment, Vehicles, and Materials 3.6 95 B. Incremental Operating Costs 0.3 1oo 4. Consultant Services 3.0 100 6 Training 2.a 100 68 PPF Refinancing 1.1 Amount Due 7. Unallocated 4.9 Total 4686 in Of amounts not of taxes 4.43 Disbursements for consumables for road maintenance (with contracts up to US$20,000), and for operational support to supervision, technical assistance, training, and seminars will be based on certified statements of expenditure (SOE). SOE statements will be kept available for review by IDA representatives - 32 - during supervision. To facilitate project implementation, a special account will be opened at a local commercial bank on terms and conditions acceptable to IDA, with an initial deposit of US$0.5 M equivalent for expenditures to be disbursed from the Credit after Credit effectiveness and upon receipt of a withdrawal request. IDA would replenish this account on receipt of satisfactory evidence of disbursements for eligible expenditures. Should any disbursements be made from the account that are not acceptable to IDA, the Government would deposit the corresponding amount into the account. Retroactive financing in an amount of US$3.0 M is envisaged to cover the initial portion of reconstruction works on the RN1, near the M'Bali River (para. 4.05) and related consulting services for supervision. Disbursements for civil works expenditures under Category l(b) -- civil works other than those related to NR1 deviation works -- are contingent on settlement in a manner satisfactory to IDA of arrears due by PETROCA to the Road Fund (para. 6.05). The detailed disbursement schedule over a period of 6.5 years for the project is given in Annex 4-14. Due to the advance procurement needed to complete the RN1 deviation works during 1990-91 for which an amount of about US$5.3 M equivalent will have to be disbursed, the overall disbursement profile for the TSP is somewhat distorted, as shown in Graph 1 in Annex 4-14. In addition, disbursements in FY91 reflect the refinancing of PPF 453 (US$1.5 M). When separating the disbursements related to the RN1 deviation works from the TSP proper (Graph 2), the profile only differs slightly from the standard Africa Region disbursement profile of seven years. This is justified because bids for detailed engineering of the road rehabilitation comp- onent, for which terms of reference are under preparation, will be launched before the start of the TSP investment program in January 1991 so as to permit rapid project start-up. K. Accounting, Auditing and Reporting 4.44 Accounts on road maintenance expenditure are kept by the Road Fund, of which a separate analysis is presented in Chapter VI. Road Fund accounts, the accounts of the Equipment Workshop and the Public Works Laboratory will be audited annually. Because of the initial phase of the commercial management of the workshop under the TSP, this audit will be financed by the IDA Credit under terms of reference acceptable to IDA. Project accounts and Statements of Expenditure on the Special Account (SA), will also be audited annually. The audit reports will be sent to IDA within four months after the close of each calendar year. The audit report of the project accounts would include specific verification of the legitimacy of all expenditures out of the SA and an opinion on the reliability of the SOE procedures and utilization of goods and services financed under the project. 4.45 IPCTP will distribute to IDA and co-donors a quarterly report on over2ll project implementation, including the quarterly report prepared by the RMHCG on implementation of the road component (para. 4.20). L. Impact on Environment and Employment 4.46 Environment. With respect to the rehabilitation and maintenance of the existing road network, measures will be taken to protect the environment which will be considered an important component in the design and executic.a of infrastructure operations. These objectives will be achieved by including such measures in terms of reference for detailed engineering and specifications. The environmental protection measures will take into account that the geographic areas of the priority road network differ greatly in terms of geomorphology, - 33 - hydrology and climatic conditions which constitute the basis for the road rehabilitation and maintenance "decision table" (para. 4.07) that will be the framework for the planning and execution of works. For the existing road network, measures will consist cf preserving shoulders, surface drainage systems, road bases and surfaces, anL will include (a) protecting the slopes of embankments and cuts containing erodible soil, grass seeding or sodding or planting small trees and shrubs; (b) designing main ditches and turnouts so that the water will be properly channeled and the ditch section protected against erosion; and (c) improving critical parts of road surfaces vulnerable to erosion. In addition to environmental protection, erosion control measures would have the advantage of reducing maintenance work, especially on surface drainage systems, small structures and surfaces, while safety is improved by suitable shoulder greenery, which will improve depth perception by providing vertical points of reference. Other measures will consist of clearing ditches to evacuate stagnating water, and limiting brush fires along the roads by removal of vegeta- tion. 4.47 As for the Yamando-Bambio road (para. 2.38), adequate Government measures are already being taken and will be extended to prevent farmers from establishing plots and villages along the road in prohibited forest areas. The Government has committed itself to carrying out the recommendations of the Environmental Impact Study. Several of these recommendations will be complied with under the TSP (erosion protection, fire protection, studies of a revised alignment of the continuation of the road to protect the forest and to prevent migration from existing villages, and optimal solutions for the crossing of the Mba4r4 River and swamp area to avoid environmental damage to the forest's river basin). Others (prevention of village settlements, wild life protection, and improved cooperation between State and forestry companies), will be addressed under the Natural Resources Management Project, which is scheduled to be presented to the Board in the near future. 4.48 Employment. The TSP will create substantial employment for local workers, as foreign and local enterprises will need local labor to carry out the road rehabilitation and maintenance works. In contracts with foreign enter- prises, use of local contractors will be encouraged, while promotion of a national construction industry would enhance the local ability to take on maintenance and eventually rehabilitation works. Development of a local construction industry is also likely to provide employment to Government workers and staff previously engaged in force account works and released under the public sector reorganization program being executed under SAL. V. ECONOMIC EVALUATION 5.01 Proiect Benefits. The TSP is an integrated package of transport sector policy measures and sector investments in the priority road network, and river and air transport improvements. Non-quantifiable but important benefits of the project will be derived from the policy measures, which aim at liberalizing the transport industry; increasing cost efficiency of road maintenance through privatization; improving the economic application of limited Road Fund resources through improved planning and monitoring of the road maintenance programs; strengthening the national economic management system by solidifyiJlg transport sector planning; reducing the cost of transport for the economy through establishing a more transparent river transport tariff system and streamlining _ 34 - CAR's transport institutions (BARC, CACC, ASECNA); introducing substantial reorganizations and institutional reforms in the management and operation of MTPAT and MTAC; establishing a road safety program; and improving the efficiency of CAR's public procurement system. Quantifiable benefits consist in reduced vehicle operating costs and elimination of charges on transport services resulting from monopolistic state regulations. Methodology and Economic Rates of Return (ERR) 5.02 National and Regional Road Component. Specific benefits of the project are derived from savings in vehicle operating costs (voc) from tLe estimated traffic when comparing these costs with the "without project" case where the present level of service remains unchanged over the economic life of the investment. Basic voc were obtained by applying the HDM III model (a) to various typical levels (ranging from very good to good, average, bad and very bad) of service of the priority road network (paved, modern or ordinary gravel, or earth road); and (b) vehicle types, in order to permit the calculation of the operat- ing benefits for each type of vehicle. The benefit consists of the difference between the present level of service of a road and the one corresponding to the proposed rehabilitation or improvement standards. With regard to vehicle types, the general composition of traffic in CAR consists of three types of vehicles: (a) private light vehicles and small trucks, equally represented in this category (i.e., 50-50); (b) trucks with two axles and heavy trucks with three axles (represented in the proportion of 67Z and 332, respectively, in this category); and (c) trailer-truck combinations. Homogeneous road sections (i.e, sections of the priority road network with similar traffic volume, and levels of service as described above) were then defined (using adjusted traffic counts, vehicle composition, and levels of service of the road identified during the feasibility studies). 5.03 The above exercise resulted in the following distribution of homogeneous traffic sections: for bituminized roads, 253 vpd on average over 419 km; for modern and ordinary gravel roads (2,874 km), the composition of traffic varied from 143 vpd over 136 km, to 73 vpd over 1,170 km, 35 vpd over 1,054 km and 16 vpd over 514 km; for earth roads (5,993 km), the composition of traffic varied from 53 vpd over 81 km and 31 vpd over 581 km, the remainder carrying a traffic less than 15 vpd. 5.04 Taking into account a modest growth in the economy as a result of structural adjustment policies and improving market conditions for CAR's export products (in particular coffee and cotton), traffic on the priority road network (4,000 km) is estimated to increase by about 2Z. Using this growth rate, the above data (traffic composition on homogeneous road sections and future traffic estimates) were applied to the proposed level of service for these road sections (i.e., different standards of road rehabilitation and maintenance). Savings in vehicle operating costs were then calculated and compared with the costs of the proposed road rehabilitation and road maintenance program. The difference between the benefits and the costs resulted in an economic rate of return of 18? for the paved road rehabilitation component, and 32Z for the gravel/earth road rehabilitation and maintenance component. 5.05 Sensitivity Analysis of the Paved and Gravel/Earth Road Component. Reconstruction to paved standards of the Bossembele-Yaloke road is relatively sensitive to cost increases. When constructed at relatively simple standards as planned (double-surface treatment while maintaining the present road - 35 - alignment) the ERR would be about 11Z. However, if costs increase by 20? and benefits decrease by 202, the ERR would decline rapidly to about 7?. With a 10? cost increase and decrease in benefits, the ERR would amount to 9Z. While a decrease in benefits, which would mainly stem from a fall in traffic volume, is less likely on this important international road link, a cost increase might be possible because the cost of the construction to paved standards has been estimated without the benefit of detailed engineering which is scheduled for early 1991. If traffic remained constant at the present level, the ERR for the rehabilitation of the paved network would be about 162. If costs were to increase by 102 or 20? the ERR would decline to 12.52 and 8.9?, respectively. The occurrence of the latter case is rather unlikely because the unit prices of the rehabilitation costs have been carefully estimated, while adequate provision has been made for physical and price contingencies. Application of the same sensitivity analysis to the rehabilitation of the gravel and earth roads results in ERR variations of 29.7?, 24? and 19?, respectively, which is fully satis- factory. 5.06 Rural Roads Component. The composition of the rural roads rehabi- litation and maintenance component was arrived at by establishing an inventory of primary rural roads (roads which are directly linked with the national and regional road network) whose rehabilitation would result in an ERR of above 20X. This analysis produced a list of about 1,700 km of rural roads, primarily in the cotton growing area, of which 555 km yields a return of more than 30?, and the remainder between 202 and 30?. Under the TSP, 720 km will be rehabilitated, taking into account the capacity of the executing specialized agricultural agency (SOCODA). Benefits were calculated by estimating vehicle operating cost savings, and by including 40? of the estimated increase in value added to agricultural production resulting from improved access to farms and markets. 5.07 Risks. No unusual risks are foreseen in the physical implementation of the paved, gravel and rural road rehabilitation and maintenance components, as they will be executed by contract and supervised by experienced consultants. However, in view of the sensitivity of the ERR for the reconstruction investment of the Bossembele-Yaloke road, careful feasibility and detailed engineering studies are required to ensure that modest standards are applied. Satisfactory execution of the national and regional road rehabilitation and maintenance program carried out by private contractors, including OPPER, and village workers (acantonnage") depends on the ability of the Road Maintenance Management and Coordination Group (RMMGC) and the Road Fund to organize and implement these programs efficiently and to adhere to timely procurement procedures applied by the co-donors. Similarly, the efficiency of the rural road rehabilitation and maintenance program using the brigades of the local cotton agency is linked to SOCADA's ability to restore its capacity to its previously satisfactory levels. The possibility of these risks resulting in cost increases has been taken into account by a careful review of unit prices of the road works and providing for appropriate contingencies. The estimated international price inflation is fairly stable for the period 1992-96 at about 4.5? per annum. Implementation of the road component is based on a three-year work program starting in 1991 and should be completed in 1994. However, possible slippage in part of the rehabilitation and maintenance program to 1995 has been accounted for in the costing of the project. The main risk of the project would be institutional weaknesses in the implementation of the TSP. To alleviate this risk, provisions have been made on the manpower side to strengthen MTPAT's and MTAC's institutional organization, including the supervision capacity, and the Road Fund's financial performance. Project implementation will be supported by task specific technical assistance - 36 - and appropriate training programs. The remaining components, strengthening of airport management and maintenance of river transport, do not include investments subject to risks. VI. FINANCIAL EVALUATION OF THE ROAD FUND 6.01 The CAR Road Fund has gradually developed from a "special account" in the sixties and seventies, maintained at the Ministry of Finance and funded through the general budget, to a legally and financially autonomous public institution established in 1981. The rationale for this decision was that the "special account" mechanism of the national budget had not adequately functioned in providing timely the necessary funds to sustain maintenance works regularly. The Road Fund is placed under the authority of a Management Committee, chaired by the Minister of Public Works and Territorial Development and including the Minister of Finance. This Committee approves the budget, the balance sheet, and the directions for usage of funds recommended by the Road Fund Administrator. 6.02 The Road Fund's main revenue, the direct transfer by PETROCA of the user fee contained in the fuel tax, has increased in nominal terms from CFAF 1.0 bill- ion in 1982 to CFAF 1.7 billion in 1988, and is estimated at CFAF 1.8 billion for 1989. These increases were principally due to increases in the user fee from CFAF 24/1 in 1982 to CFAF 50/1 in 1988. However, as a result of CAR's sluggish economy, fuel consumption has declined by over 25X from a peak of 47,854 mP in 1985 to 34,942 mn in 1988. This consistent decline contributed to the increase in the user fee from CFAF 48 to CFAF 50 in 1988, in order to cover the minimum needs of the road maintenance program. The increase was financed and will continue to be financed over the period 1990-93 through a gradually increasing transfer of a portion of the "stabilization tax" revenue of the fuel tax (Annex 2-3). Additional revenues are derived from ferry charges, income from the sale of used equipment by MTPAT, and fines paid at Bangui's weighing station, which amount to only 22 of total revenues. The Road Fund also receives grants in the form of donor supplies of equipment, and spare parts. The main elements of the Road fund's 1987/88 Income Statement are provided in Annex 6-15. 6.03 The Income Statement for FY87-88 shows that about 17X of Road Fund revenues were used to finance road maintenance staff and also MTPAT staff (about 502), who should normally be paid by the Ministerial budget; 16? was used to finance local costs incurred on account of externally financed supplies, and contracts for works including maintenance, new construction and/or rehabilita- tion; 22? went to procurement of fuel and lubricants; 2? was spent on OPPER contracts and 8Z for counterpart financing. 6.04 A detailed audit of the Road Fund's 1987/88 was carried out in 1989 to provide clearer insight in the Road Fund's accountability and use of funds, and to make recommendations for improvements in its operations. The auditors long form report highlights problems of internal control, such as differences between PETROCA and the Customs with respect to quantities of fuel consumed, resulting in undervaluation of Road Fund revenues by CFAF 283 million (about US$943,000); inefficient billing and revenue collection procedures at PETROCA leading to three to four months delays in transferring the Road Fund user fee to the Road Fund account; poor inventory management at the Equipment Directorate making it difficult for the Road Fund to value the inventory; lack of collecting revenues from the sale of used equipment (CFAF 7 million); and unpaid contributions in - 37 - counterpart funds from the Treasury to the Road Fund in support of some donor financed road rehabilitation projects. In addition, it reveals the use of Road Fund revenues amounting to about CFAF 183 million (US$610,000 or 8.5% of total 1988 Road Fund revenues) to road works that were not included in the agreed road maintenance program. 6.05 The Audit's main recommendations are: (a) establishment of an ad hoc committee to reconcile the discrepancies between Petroca and the Customs on quantities of fuel consumed and transfer of the due amount to the Road Fund Account; (b) integration of the Equipment Directorate's Accounts with the Road Fund accounting system; (c) establishment of an efficient billing and revenue collection system; and (d) establishment of adequate measures of internal control to ensure that Road Fund resources will be solely applied to road maintenance related expenditure. These and other recommendations have been incorporated in the policy measures described in Chapter III (para. 3.09). 6.06 Road Fund Needs during the TSP. To finance the annual maintenance program of the national And regional road network (4,000 km), the Road Fund will require CFAF 2.7 billior (including taxes) per annum in constant terms, or about CFAF 0.9 billion more than budgeted for FY89 (CFAF 1.8 billion). The rural road maintenance program (including periodic maintenance) will require CFAF 402 mill- ion in 1990 increasing to about CFAF 600 million in 1993 (taxes included), bringing total road maintenance requirements to CFAF 3.1 billion (US$10.3 M) per annum ',y 1995. To cover these requirements, Road Fund revenues will be increased by gr dually increasing part of the stabilization tax to the Road Fund account. To ni itralize this effect on the national budget, to which the stabilization tax is armally transferred, an existing vehicle tax will be increased, both for light and heavy vehicles. Taking into account the present vehicle park, such an increase would provide additional revenues of about CFAF 1.0 billion by 1995, which would about equal the additional funds transferred from the stabilization tax to the Road Fund. Meanwhile, additional funds required would need to be provided by donor financing, as is provided under the TSP. In addition, as of 1990, the national budget will progressively assume responsibility for paying MTPAT salaries, administrative expenses and costs for fuel and maintenance of light vehicles that are not related to road maintenance, estimated at atout CFAF 144 million (US$480,000), so that by 1993 this amount will be fully available to the Road Fund. Half yearly reviews will be carried out to verify the appropriate use of funds in accordance with the agreed road maintenance program. The Road Fund would be audited annually by an independent auditing firm. 6.07 Road Fund Management. Key staff of the Road Fund, comprising the Administrator, the Controller, and Accounting Officer/Supervisor of the computerized accounting system, would need to be in place before credit effectiveness. A recruitment program and appropriate terms of reference of the above key staff, as well as a list of required support staff to operate the computerized accounting system, is being prepared by the Road Fund. 6.08 Justification of the Road Fund. Maintaining the Road Fund as a separate financing mechanism from the national budget with revenues flowing from an earmarked user charge is considered justified as an interim measure to ensure timely transfer of the necessary funds for road maintenance, until an adequate budget system within the national budget could be put in place capable of assuming this critical task. During the TSP, the appropriate functioning of the Road Fund as a separate financing mechanism would be regularly assessed. By - 38 - project completion (i.e., in about six years from project inception), the need to maintain the Road Fund would be reassessed in light of improvements achieved in the budgetary system, in particular with respect to its capacity to make necessary funds timely available for road maintenance. VII. AGREEMENTS REACHED AND RECOMMENDATION 7.01 Before Negotiations, the following agreements were reached: (a) the Government passed a decree abolishing BARC's monopoly and LOX commission on transport contracts to which BARC is not party (para. 3.02); (b) MTPAT established the Road Maintenance Management and Coordination Group (RMMCG); and (c) an Interministerial Committee was established grouping the Ministry of Economy and Finance, the Ministry of Energy, and the Min'stry of Public Wforks, the Director of Customs and the Director of PETROCA, to verify regularly the collection and transfer of revenues from the Road Fund user charge. 7.02 During NeRotiations, additional agreements were reached on the following items: (a) contents of the Government's transport sector policy statement and action sian (paras. 3.01-3.11 and Annexes 3-4 and 3-5); (b) preparation by IPCTP of the annual investment budget before October 31 of each year, for review by the Planning Secretariat and IDA (para. 3.07); (c) MTPAT's new road maintenance strategy (paras. 3.08; 4.07-4.19); (d) size of the priority road network for road maintenance (para. 3.08 and Annex 3-6); (e) establishment of commercial management at the Equipment Workshop (paras. 4.11-4.13); (f) implementation of MTPAT's and MTAC's new structure and staffing plans (paras. 4.22-23; 4.29); (g) annual consultation with IDA before November 30 regarding the annual transport sector expenditure program, the routine maintenance, periodic maintenance and road rehabilitation programs (para. 4.21); (h) execution of environmental protection measures (paras. 2.38-39 and 4.46-47); (i) cost of the project (paras. 4.35-38); (j) MTPAT's and MTAC's training and technical assistance program (paras. 4.23-24 and 4.30, 4.31); (k) inclusion of the examination of potential riparian issues (para. 4.27 and environmental assessment in the terms of reference for feasibility study of construction of water flow regulating dam on the Oubangui River; - 39 - (1) establishment of an equipment management unit on terms and conditions acceptable to IDA (paras. 4.11-12); (m) improvement of the Road Fund's accounting system as recommended by the 1988 Audit (para. 6.05); (n) increase in existing vehicle taxes to mobilize additional funds for road maintenance expenditure (para. 6.06); and (o) streamlining of measures for bidding and contract awards and selection of consultants; training requirements of procurement staff (para. 4.42). 7.03 Conditions of Effectiveness ares (a) appointment of the Director of Road Maintenance, the Director of Human Resources (MTPAT) and the Division Chief of Human Resources (MTAC), with qualifications and experience satisfactory to IDA (paras. 4.23 and 4.30); (b) implementation of the agreed reorganization plans of MTPAT and MTAC (paras. 4.23 and 4.30); and (c) appointment of the Road Fund Administrator, Controller, and the Accounting Officer/Supervisor with qualifications and experience satisfactory to IDA (para. 6.07). 7.04 The following is a condition of disbursement: disbursement for payments for civil works under the TSP -- except those civil works related to the deviation works of National Road NRl at the M'Bali dam site -- will be made only after settlement of the difference of Road Fund Revenues with PETROCA/customs and transfer of the agreed amount into the Road Fund Account (paras. 4.43 and 6.05). Recommendation 7.05 Subject to the above terms and conditions, the proposed transport sector project is technically and economically sound, and is suitable for a credit of SDR 46.6 million on standard IDA terms. AFlIN March 29, 1990 CENTRAL AFRICAN REPUBLIC TRANSPORT SECTOR PROJECT EXPORTS (Volume) (--------Estimates--------- Items 1984 1985 1986 1987 1988 1989 1990 1991 1992 Diamond ('000 karat) Rav 326.4 342.7 353.2 409.0 370.0 383.0 399.0 411.0 423.2 Diamond ('000 karat) Cut 4.1 4.2 1.2 1.8 2.1 2.4 2.7 3.2 3.6 Coffee ('000 tons) 12.9 18.7 10.2 11.2 13.0 15.0 16.0 17.0 17.0 wood Logs ('000 inS) 87.9 64.8 62.7 40.9 45.0 50.0 55.0 55.0 55.0 Plywood ('000 inS) 32.1 31.9 29.9 24.8 29.5 33.0 34.5 35.5 35.5 Other 5.4 4.5 2.7 1.6 2.4 3.0 4.0 4.5 4.50 Total vood ('000 mS) 125.4 101.2 95.3 67.3 76.9 86.0 93.S 95.0 95.0 Cotton ('000 tons) 12.6 12.9 13.1 8.5 6.3 8.3 10.0 10.0 10.3 0.5 0.5 0.6 0.6 0.4 0.4 0.4 0.5 0.5 2.4 1.7 1.7 0.9 0.9 1.0 1.2 1.5 1.7 Source: Ministry of Finance AFlIN March 26, 1990 Dacumfnt: ANX2-1.aar Diskette: IV ANNEX CAR:jsk x4 CENTRAL AFRICAN REPUBLIC TRANSPORT SECTOR PROJECT Traffic Volume 1989 REPUBLIQUE CENTRAFRICAINE AmDo iI. BIRAO 4:o Carte des trofics 1989 0 .~ ~ ' ". / -v'..'t Oundo Diolle aOoddo 0 ~~~~~~~0 ai ;. : j B tongo Boci .o ossemtejt SBAN lo"t > _ t - l j~~ ~ f5ad Dleina WnS, LI~~~~~~~~~~~~~~~~~~IU :4~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~-t Ca, w~~~~~~~~~~~~~~~~~~~~~~~Zm Oro .... K.1 t&= . ssel ** %%_Di BANGASSOU . *- : . :mb q :.4 AT t em t Brb,o mOAK . NOLA * 4*.Oongoumnbo . . .. , olo, .ttOtNDE AFIIN .,, March 27, 1990 . co 0 ° . . . _ S., 0 .:~~~~~~~~ sO S100 150 200K._ ^ - 42 - A 2-3 CENTRAL AFRICAN REPUBLIC TRANSPORT SECTOR PROJECT PRICE STRUCTURE OF PETROLEUM PRODUCTS Premium gasoline Kerosine Diesel Item CFA/100 Liters d = 0.75 /a d - 0.80 /a d - 0.85 /a 1. C.I.F. Matadi 5,171.00 5,897.00 5,753.00 2. Transit Zaire 1,256.00 1,256.00 1,256.00 3. River transport 1,850.62 1,974.00 2,097.38 4. SCEVN tax 240.75 256.80 272.85 5. River insurance 7.22 7.95 7.95 COST IN BANGUI EXCL. TAXES 8,525.59 9,391.75 9,387.18 6. DUTIES, TAXES, FEES 6.1 Entry tax 500.00 100.00 6.2 Supplementary tax 8,200.00 6,300.00 6.3 Treasury tax 17.40 0.20 12.60 6.4 Road user fee 5,000.00 5,000.00 6.5 Conseil des Chargeurs + RIDT 25.85 29.49 28.77 6.6 Settlement of Centra-Hydro debt 500.00 500.00 500.00 6.7 Repayment to banks 100.00 100.00 6.8 Stabilization (variable) 2,472.92 2,465.78 2,036.03 Subtotal Duties and Taxes 16,816.17 3,195.47 13,877.40 STABILIZED PRICE IN BANGUI INCLUDING ALL TAXES 23,341.76 12,587.22 23,254.58 7. STORAGE 244.00 244.00 244.00 8. Miscellaneous costs 8.1 System maintenance 370.00 370.00 185.00 8.2 Transport equipment maintenance 230.00 230.00 230.00 8.3 Amortization 202.00 202.00 202.00 8.4 Overhead 2,195.00 1,485.00 1,485.00 8.5 Finance charge 1,708.70 1,706.40 1,650.70 8.6 Profits 581.54 464.38 4(8.72 8.7 Spillage 167.00 51.00 30.00 Subtotal Gross Margin 5,454.24 4,508.78 4,231.42 9. EQUALIZATION 3,100.00 (4,100.00) (500.00) SELLING PRICE EX STORAGE BANGUI 34,140.00 13,240.00 27,240.00 10. CITY DELIVERY 160.00 160.00 160.00 11. RETAILER'S MARGIN 700.00 600.00 600.00 PRICE AT PUMP IN BANGUI 35,000.00 14,000.00 28,000.00 PRICE PER LITER 350.00 140.00 280.00 ---------------------------------- /a d = density AFlIN March 26, 1990 Document: AX2-3.ear isktt=: TSP AE)a3 CAR:jdh - 43 - AMNEX 3-4 Page 1 of 6 CENTRAL AFRICAN REPUBLIC TRANSPORT SECTOR PROJECT GENERAL POLICY DECLARATION (Translation from the French Original Transmitted by the Government of the Central African Republic) Introduction The transportation sector plays a primary role in the economy of the Central African Republic. Because the country is landlocked and its transporta- tion system outward and transit oriented, the sector is one of the Government's priority concerns. Any mode of transportation in the Republic is generally expensive and slow, owing to the state of the infrastructure use, the fact that the country is landlocked, the constraints that affect the productivity of domestic providers of transport services, and institutional shortcomings. These difficulties, which restrict the support the sector affords an economy based on rural development, are exacerbated by adverse conditions in the international environment that work against the developing countries. Mindful of these problems, the Government is committed to a firm policy of revitalization of the transportation sector, designed to enable it to contribute more effectively to integrated, self-sustaining development. 1. Development Plan In order to pave the way for economic recovery and a return to growth, the Government, since 1982, has been following a stringent policy of economic structural adjustment that consists in redefining its own role, providing greater incentives for the private productive sector, reorganizing the parastatal sector, and reforming the administrative apparatus. This policy has received active support from the international agencies, particularly the World Bank. Two successive structural adjustment programs have been undertaken, the second concluding at the end of 1990. 2. Recent Measures in the Transportation Sector Against the background of its adjustment policy introduced in 1982, the Government simultaneously launched a vast priority road network rehabilita- tion program known as the Fourth Highway Project. Besides opening up the country both internally and to the outside, this included a start toward the privatiza- tion of road maintenance via OPPER, a program to promote small road-building enterprises. Measures focused on the other modes of transportation have formed the substance of the rest of the Government's policy in the sector since the early 1980s: rehabilitation of the river fleet, privatization of river transportation - 44 - ANNEX 3-4 Page 2 of 6 management, modernization of waterways maintenance services, and conversion to jumbo-jet standards and upgrading of runways at Bangul Mpoko airport. Some more recent measures have beens initial deregulation of road transportation, highway and aviation security and safety actions, development of applied meteorology activities, and studies for reorganization of two ministries -- the Ministry of Transportation and Civil Aviation (MTAC) and the Ministry of Public Works and Regional Development (MTPAT). 3. Transportation Strategy 1990-1995 In parallel with these recent measures, the Government engaged in a far-reaching review process which has led to formulation of a comprehensive strategy for the transportation sector covering all modes and related issuest infrastructure, plant and equipment, organization, regulatory matters, facilitation, rate schedules, taxation and institutions. In view ofs (1) the heavy burden transportation places on the economy, not only because the country is landlocked but also because of still substandard operating performance in both the transport industry itself and infrastructure maintenance, and (2) the limited percentage of the domestic investment budget that can be allocated to the sector, so that choices are necessarily very stringent, the Government proposes to incorporate this strategy and the series of actions it will involve with pursuit of the major objectives now outlined below. (A) Institutional strengthening and Dromotion of the private sector. through the following measures: (i) the technical ministries concerned are to be reorganized in accordance with their newly redefined missions; (ii) sector planning capabilities are to be strengthened; (iii) the Road Fund is to be reorganized in the interests of its better management; (iv) the specialized sector agencies BARC and CCAC (Bureau d'affr&tement routier centrafricain. Conseil centrafricain des chargeurs) are to be reorganized so they can provide better services for road haulage contractors and shipping agents and bring costs down; (v) increasing use is to be made of private contractors for the execution of road maintenance works; (vi) ingisdical resources and vocational training are to be provided for officiz.. entities; - 45 - ANNEX 3-4 Page 3 of 6 (vii) the procedures used in awarding government contracts are to move faster so as to preclude losses to the domestic economy resulting from delays in the pre-award and implementation stages. (B) Designation of a priority network of transportation infrastructure that will ensure the opening of the country to the exterior and make major economic centers accessible. This network will consist of: (i) the system of navigable waterways having the Oubangui River as its main international axis; maintenance operations will be continuous and ways and means of keeping the river navigable throughout the year will be studied so that advantage can be taken of its competitive potential; (ii) a priority network of 4,000 km of the national and regional highways that carry the heaviest traffic; the concentration of resources on maintenance of this network leaves little room for building new roads or moving up to higher standards, not justifiable at present because of the stagnation in volume of traffic; (iii) Bangui Mpoko international airport, where safety and security facilities are to be reinforced; smaller airports in other parts of the country will receive necessary minimum maintenance. (C) Deregulation of the transportation sector, and facilitation The regulations currently in force will be extensively amended and simplified, so as to: (i) eliminate monopoly situations, as well as the obstacles facing individuals wishing to set up business as transport operators; (ii) reduce the controls exercised by the various official entities; (iii) continue tariff liberalization so as to achieve more transparent rate schedules that reflect real economic costs better; (iv) make the conditions for competition among the various transport modes more equitable, especially as regards recovery of infrastructure costs. In addition, the Government will seek ways of emphasizing cooperation with transit countries. (D) Greater recopnition of the social costs of transportation, particularly in the fields of: (i) road safety, where a program is to be put under way; (ii) the environment, where conservation measures will be taken. These various measures are summarized in the Action Plan which is now outlined below and then explained more fully in Annexes 1 through 9, which form an integral part of this Policy Statement. - 46 - ANNEX 3-4 Page 4 of 6 4. Action Plan 4.1 Institutional reinforcement - As proposed in their Staffing Plans (Plans d'effectifs), MTAC and MTPAT will be reorganized by the end of February 1990; staff cutbacks will be made and steps taken to increase efficiency. - The role of the interministerial planning unit (sector investment planning) will be strengthened, through continuation of the technical and logistical assistance arrangements set up as part of the Economic Management Support Project. - The network of MTAC branches will be extended progressively; costs will be kept down by associating them, initially, with the decentralized units of MTPAT. - MTPAT structure will be modified progressively so that the agency can devote more attention to programming, procurement and supervision and monitoring of works in progress. Coordination among its divisions responsible for road maintenance will be improved. A new division will be set up to take charge of the programming, coordination and supervision of rural road works. - As of February 1990, the Bangui Mpoko equipment maintenance shop will be operated by MTPAT according to private-sector principles of financial administration. In addition, a study will be conducted in 1990 with a view to placing it on a commercial type of management system as of January 1991. - Before the end of 1990, the Construction and Public Works Laboratory will convert to an industriallcomercial basis. - The Statutes of the Road Fund will be amended to allow for creation of an internal management audit unit, redefinition of the function of the Management Committee, and takeover (against the allocation of specifically earmarked resources) of responsibility for the rural roads previously financed by MTPAT. The Fund will be subject to annual audit. External resources intended for road maintenance will be channeled through or monitored by the Road Fund. Its own resources will be increased regularly from road tax revenues, so as to reach a minimum of CFAF 2.7 billion in 1993. Furthermore, MTPAT operating costs, now financed by the Fund, will be covered progressively from the general budget so ad to free up resources for road maintenance, a changeover that is to be completed in 1993. - An audit of the Republic's aeronautical and meteorological activities is to be conducted by the end of 1991, the resulting recommendations being put into effect within the following six months. 4.2 Transportation infrastructure - The Government undertakes to commit itself only to transportation infrastructure investments which promise an economic rate of return that meets the ERR criteria generally applied to capital spending projects. - 47 - ANNEX 3-4 Page 5 of 6 - Road maintenance operations will focus on a priority network of about 4,000 km of roads carrying a traffic volume of at least 20 vehicles/day, while rehabilitation operations will focus on roads carrying a volume of at least 50 vehicles/day. Maintenance tasks will gradually be transferred to the private sector through the fostering of subcontracting arrangements and development of SMEs and local private firms. Checking for overloaded heavy vehicles at the weighbridge located at the north exit point from Bangui will be systematic, as has been the case since January 1, 1990. - Waterway maintenance and improvement works (dredging, rock removal, marking/buoying) will continue regularly on the Oubangui (the stretch below Bangui), the Lobaye and the Sangha. Methods of improving the navigability of the Oubangui with a dam to raise low water levels will be studied at the same time. - Airfields outside Bangui will receive necessary minimum maintenance, and special attention will be given to safety and maintenance at Bangui Mpoko international airport. 4.3 Transportation operations Liberalization will be emphasized: - a decree will put an end to the monopoly on road haulage contracting held by BARC and to its associated commissions, prior to mid-February 1990; - a decree reorganizing road transportation (free enterprise, simplifica- tion of formalities) will be issued, again prior to mid-February 1990; - BARC's Statutes will therefore be reviewed, and both its staffing and other costs reduced in the interests of its financial soundness and ability to carry out its new mandate; - the recommendations handed down in July 1989 by the commission that examined the role of Conseil centrafricain des chargeurs (CCAC) will be implemented by the end of 1990, in particular redefinition (through regulatory channels) of its mission, so that competition has freer pl-y and the agency provides shipping agents with real services; - the tariffs currently governing road passenger transportation will be studied and made more flexible (changeover to the approval or ratification system) by the end of 1990; - a study on river freight transportation costs and tariffs will be conducted in 1991, and the resulting recommendations implemented before May 1992, the end purpose being to ensure that service rate schedules are rationalized, simplified and made flexible. - 48 - ANNEX 3-4 Page 6 of 6 Obstacles to efficient provision of transportation services will be lessened through: - implementation, by the end of May 1990, of the recummendations from the commission on reduction of road transport controls, as had already been done with river controls; - negotiation, with Cameroon, of measures to facilitate and liberalize international transportation and transit activities; - promotion, within the Central African Customs and Economic Union (UDEAC), of a system of intra-Community transit regulations; Transportation safety will be improved through: - implementation of a road safety program and, from 1990, annual allocation of resources to road safety; - continuation of the Bangui Mpoko airport security program. NB: Annexes 1-10 of this policy declaration are in the Project File and are available on request. APlIN March 27, 1990 Document: AnxS-4.sar Diskette: TSP ANNES CAR:Jatc - 49- ANNEX 8-S Poge 1 of 7 CENTRAL AFRICAN REPUBLIC TRANSPORT SECTOR PROJECT PROGRAM OF POLICY MEASURES AND ACTIONS | SECTOR POLICY I ACTIONS ALREADY | | MONITORABLE ACTIONS AREAS/ISSUES TAKEN AND UNDER ACTIONS TO BE AKEN AND FOLLOW-U OBJECTIVES PREPAMRATION A. LIBERALIZATION OF THE TRANSPORT INDUSTRY - Monopoly position - Government - Revision of - Implementation of of BARC In awarding Committee on the statutes of BARC to other recommendations transport contracts Reflection on the reflect modification including and enforcement of a role of BARC has of its role - reduction in ,tftf 10X commission on presented a report to (Condition of of BARC; transport contracts Government with main Effecti viiFOR - BARC to fulfill the to which BARC is no recommendations to - Alleviation of role of a service party. liberalize the requirements organization and not - Access to transport industry regulating a regulatory profession of and to abolish the registration as mechanism transporter Is 10X commission transporter. - Continuation of restricted by (Conditions of SAL collection of road cumbersome II). transport statistics requirements. - The above Committee but this task and has recommended collection of Taxe simplification of our chiffre requirements for d'affaires (TCA) rgistration as should not lead to transporter. new powrs of reoulartzatton - Government issued - eision on merits on February 13, 1990 to maintain BARC as decree to Implement separate Institution liberalization of (December 199), transport Industry, following execution abollshment of BARC's of Diagnostic Study. monopoly and removal of 10W commission. B. REDUCTION AND IMPROVED APPLICATION OF TRANSPORT CONTROLS - Introduction of - River and Road - Ad-hoc Commissions - Review of Intro- axle load tax Transport Is hampered of MTAC In 1988 and duction of less - Annual review by too many controls, 1989 have examined burdensome customs during TSP before increasing cost. the problem of controls for ordinary Dec. 81 of each year - International transport controls transport and tamper on Implementation Transport between and made recommen- proof seals for results. Douala and Bangul dations for their container transport - Intermittent should be facilitated removal or (Septomber 199). reviews of by less cumbersome alleviation of effectiveness of axle custom procedures. procedures. load control. - Overloading Is not - UDEAC Study on - Measures to be adequately controlled Regional Transport linked with ongoing and fines are not Obstacles being UDEAC studies/ collected. Implemented. masures, Including - MTAC has rein- axle load tax. troduced controls on - Review of recovery overloading with rate of axle load tax penalty provisions as (at least half of January 1990. yearly) - 50- ANNEX 8-5 Page 2 of 7 SECTOR POLICY ACTIONS ALREADY MONITORABLE ACTIONS AREAS/ISSUES TAKEN AND UNDER ACTIONS TO BE TAKEN AND FOLLOW-UP OBJECTIVES PREPARATION C. TARIFF POLICY AND HARMONIZATION OF MEASURES TO ENCOURAGE COMPETITION Transport tariffs Road Transport - Continuation of - River Transport require further Tariffs on policy of tariff tariff studies to be liberalization and internatlonal road to liberalization. linked with ongoing simplification to Cameroon have been - Study of road tariff study of ATC lower cost of abolished and transport costs and (Congo). transportation and to replaced by actual taxes charsed - Review of tariffs encourage Indicative tariffs to travellers to for road transport of competition, generally practiced change from a fixed goods and travellers by the transport tariff system to a (taxis, minibuses) industry, liberal price system, (December 1990) approved by the - Measures for Government before end transport liberali- 1990. zation to be linked - Carrying out of a with ongoing UDEAC study on new tariff studies. for river transport aiming at cost based tariffs including seasonal adjustments during dry season and a margin for commercial negotiation. Proposals from SOCATRAF before end 1991. 0. ROAD MAINTENANCE STRATEGY MTPAT has not yet Government has - Decision on study - Annual review of established a adopted a new road results on maintenance satisfactory road maintenance strategy reorganizing the performance of maintenance strategy. Including: workshop of the preceding year before MTPAT needs to (1) an annual Equipment Department November; Preparation strengthen Its priority maintenance Into a commerclal of next year's capacity to manage program of abeut organization of MTPAT maintenance program road maintenance by 4,000 km of national to be presented kb before December 1. force account rather and regional roads; December 190. Programs to be than carrying out (2) implementation of - Commercial reviewed with IDA maintenance by maintenance by con- Management of annually before contract, also tract and limited Equipment Workshop to finalization. because It Is to force account; start as of January - Implementation of assume responsibility (8) Reorganization of i991 Commercial Management for maintenance of DPW focussing on - Preparation of a of Equipment Workshop tho part of the rural maintenance manage- rural roads master (January 1991). road network. Use of ment under the plan and rural - Implementation of force account needs Direction of a Road Infrastructure rural roads program to be limited, and Maintenance Manage- studits. in accordance with the Workshop of the ment and Coordination rural roads master Equipment Directorate Group (RMMG), tnclud- plan and rural needs to be Ing Road Fund, infrastructure reorganized on a Directorates of Road studies. commercial basis. Maintenance and Equipment. (4) Launching of a study to establish commercial management at the Equipment Workshop. - 51 - ANNEX 8-S Page 8 of 7 SECTOR POLICY ACTIONS ALREADY MONITORADLE ACTIONS AREAS/ISSUES TAKEN AND UNDER ACTIONS TO BE TAKEN AND FOLLOW-j OBJECTIVES PREPARATION (6) Rural Roads rehabilitation and maintenance of 720 km during 1990-93, with extension thereafter to 1,700 km of primary rural roads based on experience gained. E. ROAD FUND AND FISCAL POLICY -Road Fund resources During preparation of - Implementation of - Review of are insufficient to TSP, the Road Fund the recommendations fulfillment of Audit meet road maintenance has been audited and to improve Road Fund recommendations requIrements, proposals have been operations, of which: - Continued annual - Road Fund revenues, made: - Appointment of key auditing of the Road which are budgeted at (1) to Increase Road Road Fund staff Fund and Intermittent CFAF 1.8 billion for Fund revenues by (Administrator, Con- supervision of its 1989, need to introducing an axle troller, Accounting accountina system increase to CFAF 2.7 load tax and by Officer/Supervisor): during implementation billion annually in Increasing an before credit effec- of TSP. constant terms to existing tax on tiveness. - Quarterly reporting finance maintenance vehicles to permit n7itlatTon of of Road Fund review of priority increased transfers implementation of of use of fund. to be nat/reg/rural road to Road Fund Account 1988 Road Fund Audit submitted to IDA and network. from the recommendations, other donors. - Road fund resources stabilization tax on - Road fund resources - Half yearly neod to be applied to the fuel price; need to be applied to verification of use road maintenance (2) to strengthen road maintenance of funds In only, while general Road Fund only, while general accordance with expenditures for Administration with expenditures for agroed road salaries, fuel, the position of a salaries, fuel, maintenance program. equipment and spare controller to verify equipment and spare Inappropriate use of parts need to be appropriate use of parts need to be funds would cause financed from the funds for maintenanes financed from the interruption of Ministerial budget. purposes; Ministerial budget further commitments - Transfer of Road (3) to integrate the starting with add- under the IDA credit. Fund user charge by accounting systems of itional amount of - Half yearly review PETROCA are subject the Road Fund and the CFAF 50.2 million In of timely collection to delays of up to 8 Equipment 19SO to CFAF 144.5 of Road Fund months. Directorate; million In 1993. revenues, Including -Fuel Is fraudulently (4) to Improve the - Settlemont of collection and Imported at the Road Fund's difference in volume transfor of revenues border by inter- accounting system, of fuel Imported of heavy vehicle tax. national transporters Including Improved between customs and - Half yearly review to avoid paying CAR's computerization, and PETROCA and transfer of measures limiting higher fuel price revenue collection; of user fee charges fraudulent Imports of thus escaping Road (5) to integrate all duo Into Road Foarn fuel. Fund user fee, donor financed Account (condition of - Road Fund admin- operations in the disbursement with istration Is in- road sector Into the respect to road sufficiently into- Road Fund Accounts; rehabilitation and grated Into road and maintenance program) maintenance (6) to accelerate - Increase In vehicle implementation, transfers by PETROCA tax to permit In- - Road Fund accounts of user charge crease in Road Fund are not kept ade- revenues to the Road Resources from CFAF quately and require Fund Account. 2.2 billion in 1991 revision and Improved - Measures have been to CFAF 2.7 billion computerization. divised to authorize In 1993 customs to confiscate - 52 - ANNEX 8-5 Page 4 of 7 SECTOR POLICY ACTIONS ALREADY MONITORABLE ACTIONS AREAS/ISSUES TAKEN AND UNDER ACTIONS TO BE TAKEN AND FOLLOW-UP OBJECTIVES PREPARATION oversized fuel tanks - Strengthening of attached to measures against international fraudulent Imports of transport vehicles. fuel. - Government has - Modification of created Road Fund Statutes to interministerial reflect revisions committee to verify before December 1990. amount of road user charges collected and transferred to Road Fund Account. F. INSTITUTIONAL REORGANIZATION AND STRENGTHENING -MTPAT and UTAC - Recommendations - Implementation of - Review of require have been m_de during agreed reorganization implementatlon reorganization to preparation of the plans of MTPAT and measures during fulfill their Mission TSP on MTPAT's and MTAC before credit execution of Interim more efficiently. MTAC's 'Plan effectiveness. Technical Assietance d*effectifse and - Appointment of and Training their Internal UTPAT Directors of component of the reorganization; Road Maintenance, Economic Management Rural Roads and Human Project. Resources with - Development of a qualifications and training program experiences before December 1990 acceptable to IDA on the basis of the before credit preparatory work effectiveness. during the above - Appointment of Interim technical UTAC't Division Chief assistance and of Human Resources training component. with qualification and experience acceptable to IDA before credit effectiveness. - Reduced tasks of - Completion of CCAC should not lead adjustment of to new regulatory staffing of MTPAT and powers. MTAC In accordance with agreed recommendation of *Plan d'effectifs kX December 31. 1990. - The role of the - A UTAC task force - Implementation of - Review of merits of spectalized agency has prepared recom- recommendations of CCAC continuing as a CCAC responsible for mendations on the Task force on the separate agency bY CAR maritime trans- future role of CCAC modification of CCAC. December 1991 on the port, needs to be for review by the Issuance of Decree basis of the agreed modified In accord- Government. modifying CCAC by recommendations of a once with the reduced December 1990. diagnostic study. utilization of its services. - 53 - ANNEX 8-5 Page 5 oj 7 SECTOR POLICY ACTIONS ALREADY MONITORADLE ACTIONS AREAS/ISSUES TAKEN AND UNDER ACTIONS TO SE TAKEN AND FOLLOW-UP OBJECTIVES PREPARATION A.S.E.C.N.A cannot Terms of Reference - Implementation of meet Its budget have been prepared to study with agreed TOR requirements to carry out a study to De Dober 1991. manage CAR's national restructure Decislon on study's airports and A.S.E.C.N.A's service recommendations k meteorological in SAR Including: June 1992. services, due to a) Study of ASECNA's insufficient funding optimal staffing from CAR and over requirements with staffing of the the objective of national service. reducing ASECNA*s current payroll. b) Detailed Audit of ASECNA's accounts c) Revision of ASECNA's budget d) Market study regarding possible revenues to be obtained from selling the +-.eorological 6..r'.ices to users irn CAR. C. INVESTMENT PLANNING AND STATISTICS - Transport Sector - Government has - IPCTP to be On the basis of the Investment Planning established expanded with a agreed criteria of needs strengthening Interministerial statistical priority erJ and to function more planning cell for capability to satisfactory ERR, efficiently to Transport and public Interpret statistics IPCTP to prepare establish and works (IPCTP) in for Transport Sector annual investment maintain priorities October 1988. planning by December budget before October of sector investment. - During Interim 1990. 31, for review by and - Transport sector Technical Assistance -IPCTP to act as the discussion with the lacks Information and Training program, coordinating unit for Planning Secretariat base due to IPCTP will receive transport sector and IDA and other inadequate first part of Investment planning. donors. statistical services. training and TA. Donor transport -Transport Sector sector Investment investment needs to proposals to be be limited to channeled through and priority projects analyzed by IPCTP. with an ERR of at -Limitation of least 10%, and taking Transport Sector Into account Investments to Government capacity priority Investments to finance recurrent with ERR of at least cost. 1OX, taking into account Government's r current cost financing capacity. H. ROAD SAFETY PROGRAM CAR Is experiencing MTAC has prepared a - Initiation of Annual Review of an increasing road safety program Implementation of results of road accident rate, while to improve police Road Safety Program safety program by it does not possess skills in traffic following due prep- November 80, to - 54- ANNEX a-s Page 6 oiT 7 SECTOR POLICY ACTIONS ALREADY MONITORADLE ACTIONS AREAS/ISSUES TAKEN AND UNDER ACTIONS TO BE TAKEN AND FOLLOW-UP OBJECTIVES PREPARATION l the means to meet control, to provide aration by December adjust or modlfy the this growing problem better traffic 1990. program as necessary. due to lack of signals and medical l-Wovernment decision enforcement of support, and to on funding road traffic rules, under ensure appropriate safety program equipped and technical vehicle through national Insufficiently control. budget by December trained police, and 1990. Insufficient traffic signs. The ensuing damage and unnecessary loss of life is causing economic and physical harm. I. ENVIRONMENTAL PROTECTION - Due to the Government has - Initiation of - Review of construction of part conducted an implemontation of environmental of the Fourth Environmental Impact recommendation for Protection measures Parallel Road from Study to provide Immediate protection during project Yamando to Bambio recommendations for (wood burning; implementation. through CAR's mitigating the village migration to - Close coordination tropical rain forest, ecological damage road side) by January and implementation of ecological measures caused by the 1990. other environmental are necessary to construction of the - nitiation of other projects, including protect the forest road. These measures by September Natural Resources against village recommendations 1990. Management Project. migration, include: uncontrolled . measures to improve settlements and drainage; creation of . widening of cultivation plots shoulders to permit along the road. faster drying of the - In addition, road following continuation of the rainfall; road requires . measures to arrest crossing of the burning of felled ecologically trees along the road; Important Mbaere . measures to protect swamp. forest from migrating - On the existing farmers to start portion of the road, plots and to avoid an erosion has adversely increase in hunting affected the drainage of protected wild system. animals; . improved collaboration between forestry companies and Government to protect the forest from migration and hunting practices; . launching of studies to modify alignment of the continuation of the road to protect the forest; and . detailed engineering and 55 ANNEX 8-6 Pag I of 7 I SECTOR POLICY | ACTIONS ALREADY MONITORABLE ACTIONS AREAS/ISSUES TAKEN AND UNDER ACTIONS TO BE TAKEN AND FOLLOW-UP OBJECTIVES PREPARATION - ecological studies to solve the delicate crossing of the Uba6r6 swamp and modification of road *lignment. J. PROCUREMENT - Procurement Is - Government has - Carrying out of a Provision of affected by Iong created a National study to prepare Technical Assistance delays In docision Procurement Committee recommendations for during project making that prove to accolerato the making Its imploemntation to costly to the economy procuremont process. procuroment system Improve the as their delays - An assessment of and procedures more procurement system adversely affect the CAR's procurement efficient, as well as and procedures and to benefits of projects system was carried to prepare a training traIn stuff In their or delay their out In October 1989. program of staff application. preparation. responsible for procurement. - Initiation of agreed recommendations by January 1991. AFlIN March 27, 1990 DCcumant: ANX3-5.aar Disetk: TSP Annexe (CAR) :jih - 6o - ANNEX 8-6 CENTRAL AFRICAN REPUBLIC TRANSPORT SECTOR PROJECT Priority Road Network Length Identification Km National Roads Paved Ni Bangui (PK12)--Bossembele 148 (exclusive of paved sections N2 Bangui (PKI2)--Oamare 83 of national roads In Bangui) N2 Damara-Sibut III NO Bangui-M'Balki 98 Subtotal 420 National Roads Latorite Ni Bossembele-Bosoangoa 148 Ni Bossangoa-Bedaoyo 196 N2 Slbut-Sambari 198 N2 Bambari-Alindao 118 N2 Allndao-Bangassou 234 N3 Bossembele-Caroua Boulai 439 N4 Damara-Bouca 215 Ng Sibut-Kagabondoro 162 NS Bambart Ippy-Bria 211 NS Carnot-Berberati 94 NS Berberati-Gomboula 91 N8 Kagabandoro-M'Br.s e3 NIS Berberati-Nola 136 NIO Nola-Selo 66 Nil Baoro-Carnot 96 Subtotal 2,464 Regional Roads Laterite RI M'Balki-Mogoumba 81 R4 Bouar-Docarngsa 142 Re M'Balki-Boda 86 Rio B.tangafo-Ouandago so Rio s.gabandoro-Ouandago 48 R28 Yamando-Bambio 85 Subtotal 601 Ouham Pende Regional Development Program 836 Total 4.015 AFIIN, March 27, 1990 A:nnx3-6.aaa (TSP.Annoixes (CAR)) - 57 - ANNEX 4-7 Page 1 of 9 CENTRAL AFRICAN REPUBLIC TRANSPORT SECTOR PROJECT DECISION TABLE Methodology for the Design of an Earth Road Maintenance Strategy I. Background 1. The main objective of the transport sector project is to develop a dynamic road maintenance strategy which could be duplicated and repeated over the years. However, this strategy would be reassessed every year in the light of: (i) new macro-economic conditions in the country; and (ii) new possibilities in mobilizing external financing. 2. To systematize the planning of the various actions making up the Earth Road Maintenance Strategy of the Priority Network, a decision table has been established. The decision table proposes an operation schedule for ti) rehabili- tation and regraveling (rehab + regrav); (ii) mechanized routine maintenance with addition of laterite (Reprofilage Avec Apport -- RAA); and (iii) mechanized routine maintenance with no addition of laterite (R6profilage Sans Apport -- RSA). II. Basic Criteria of the Methodology 3. Wearing of the Surface Course. In accordance with the results of a study of the level and cost of maintenance of earth roads in Central Africa, 1/ the annual wear of dirt road surface course due to the combined action of climate conditions and traffic can be derived with the following formula: e = .8(1 + t) where le" is the annual wear in centimeters and "t" the daily traffic expressed in hundreds of vehicles per day (vpd). 4. Surface Course Thickness. The main objective of road maintenance being to er.sure a good level of service of the road, this means maintaining a surface course thickness of between a maximum of 15cm and a minimum of 5cm, given the prevailing traffic conditiona in the project areas. 5. Traffic Classes. The wear criteria and the required level of service imply the classification of the priority network earth roads in four traffic classes: Class A: over 80 vpd Class B: between 60 and 60 vpd Class C: between 45 and 60 vpd Class D: between 20 and 45 vpd 1/ P. Blet/CEBTP, September 1982, updated by the BCEOM/TRACTEBEL Group in January 1990; financed by the French Fonds d'aide et de cooperation. - 58 - A . 4-7 Page 2 of 9 6. Timing of Profile Restoration Operations with Addition of Laterite (RAA) and Rearaveling Operations. RAA operations are performed to reinforce the surface course whenever the thickness is down to 10cm. Naturally, the time intervals of regraveling operations depend on how much time is needed for the surface course thickness to be reduced to the 5cm minimum. Depending upon the various traffic classes, the timing of RAA and regraveling operations can be summarized as follows: Class A: regraveling every 6 years, with REM in year 3, Class B: regraveling every 8 years, with RAA in year 4, Class C: regraveling every 8 years, Class D: regraveling every 10 years, with RAA in year 5. To optimize regraveling operations and at the same time take charge of localized breakdowns, these operations will be combined with localized rehabilitation work over about 5Z of the mileage subjected to regraveling and identified during preparation. 7. Climate Conditions. Climate conditions, especially rainfalls, are significantly different north and south of the sixth degree of latitude (one rain season in the North and two in the South). Routine maintenance of earth roads with a traffic higher than 60 vpd resulting in an annual wear higher than lcm must be performed at different intervals: In the North: One regrading per year without addition of laterite every year, following the rain season; In the South: Regrading twice per year without addition of laterite every year, including one following the rain season. Consequently, traffic classes "A" and "B" have been assigned an "s" index for the roads in the South and an In" index for those in the North. Since the priority network has no Class "Bn" roads, Class "Bnl has been omitted in decision tables. Since traffic classes 'C" and 'DI consist of low traffic roads requiring no more than one RSA operation per year, no geographical classification will apply to these classes. 8. Route Distribution among the Various Classes. The earth road priority network (2,897 km) 2/ has been broken down among the various classes (Annex 2-3). The distribution can be summarized as follows: Class As : 431 km Class An : 152 km Class Bs : 459 km Class C s 575 km Class D : 1,280 km 2/ Does not include road section BosembdlU-Yalok6 (73 km), which will be reconstructed to paved standards during TSP. - 59 - ANNEX 4-7 Page 3 of 9 III. Decision Table fox Mainitenance Program Scheduling 9. Decision Table. Integrating the set of parameters discussed in the above methodology leads to the creation of a decision table allowing an overall view of the timing and frequency of the various road maintenance operations in each road category (Annex 1). Initial priority network road condition will be established during the 1990-91 preparatory engineering studies. This initial condition will determine the entry point in each decision table cycle (e.g., a Class "As" road in average initial condition will be scheduled for a type 'RAA+RSA operation during the first year). IV. Average Annual Operation Program 10. Since the physical condition of the priority network routes (2,897 km) varies significantly over time, the project has elected to propose an average annual operation program for all routes included in the above defined classes. The volume of the program has been derived on the basis of allocating each year a part of each road maintenance operation according to the timing and frequency of the operation. Example: For a Class 'As' route (traffic higher than 80 vpd, south of the 6th degree of latitude), average annual maintenance operations would be as follows: Rehab + Regrav: one operation of this type every 6 years for the entire length of the route, i.e., about 16.62 (100/6) on the average each year; RAAs one operation of this type every 6 years for the entire length of the route, i.e., about 16.6? (100/6) on the average each year: RSAt nine operations of this type during the 6 year cycle for the entire length of the route, i.e., 1502 (900/6) of the length on the average each year. These annual allocation rates are detailed in Appendix 1, Table b. The average length on which work will be performed in a given year for each type of operation is derived by multiplying the length of all roads belonging to a class by the rate applying to this class, and is entered in the road maintenance work program (Appendix 4). 11. Average Annual Allocation of the Various Road Maintenance Operations. Applying the average annual allocation rates (para. 2.07) to the total length of roads in the various classes (para. 2.08) results in the length to be treated each year, per type of road maintenance operation and per class (Appendix 4). V. Conclusion 12. Annual Reassessment of the Program. The road maintenance strategy is aiming at the improvement of the entire priority network and should help in reaching a good level of service on selected itineraries, after a 10 year period. This - 60 - A . 4-7 Page 4 of 9 strategy should be: (i) sustained without relaxation; and (ii) reassessed every year on the basis of traffic counts, which could result in a change of classification for one or more itineraries and consequently a change in the timing of applicable maintenance work. 13. Priority Network ExDansion. Since the level of service will be improving, it is natural to expect a corresponding traffic increase. This increase -- a synonym of economic flow growth -- should generate new resources for the Fonds Routier which in turn should result in the expansion of the part of the total network on which routine maintenance operations could eventually be financed. - 61 - ANNEX 4-7 Page 5 of 9 REPUBLIQUE CENTRAFRICAINE PROJET SECTORIEL DE TRANSPORT Appendice 1 a. Table de decision des actions d'entretien sur le reseau en terre P6riodicit4 PROGRAMMES D'EXECUTION As An Bs C D An 7 2 RSA 1 RSA 2 RSA 1RSA 1 RSA An 8 2 RSA 1 RSA Reha+Rech Reha+Rech 1 RSA An 9 RAA + RSA 1 RAA 2 RSA 1 RSA 1 RSA An 10 2 RSA 1 RSA 2 RSA 1 RSA Reha+Rech Legende s RSA - Reprofilage Sans Apport RAA - Reprofilage Avec Apport Reha + Rech - Rehabilitation et Rechargement Rappel : As - Routes a trafic > & 80v/j et au Sad du 6&me parallble An - Idem As mais situees au Nord du 6Ame parallble Bs - Routes a trafic entre 60 et 8Ov|j et au Sud 6&me parallele C - Routes & trafic entre 45 et 60v/j D - Routes a trafic entre 20 et 45v/j b. Clefs de repartition moyenne annuelle des lineaires Actions PROGRAMMES D'EXECUTION EN X DU LINEAIRE DES ITINERAIRES d'entretien As An Bs C D RSA 150.0 Z 66.8 ? 162.5 ? 87.5 Z 10.0 Z RAA 16.6 Z 16.6 ? 12.5 Z 0.0 2 10.0 Z Reha + Rech 16.6 ? 16.6 X 12.5 ? 12.5? 80.0 ? - 62 - A .4-7 Page 6 of 9 REPUBLIQUE CENTRAFRICAINE PROJET SECTORIEL DE TRANSPORT APRendice 2 Repartition des itin4raires en terre par lots de travaux No No Section de route larg. Long. Traf. Table de Itin. Adm. tm) (km) (vlj) decision Lot No 4 - Zone Est 761 41 RN2 Sibut - Grimari 7 120 80 As 42 RN2 Grimari - Bambari 7 78 60 Bs 43 RN2 Bambari - Alindao 7 118 46 C 44 RN2 Alindao - Kembe 7 112 31 D 45 RN2 Kembe - Bangassou 7 122 21 D 46 RN5 Bambari - Ippy - Bria 5 211 21 D Lot No 5 - Zone Centre 558 51 RN4 Damara - Bouca 6 215 30 D 52 RN8 Sibut - Kagabandoro 7 152 89 An 53 RNS Kagabandoro - M'Bres 5 83 35 D 54 RR10 Kagabandoro - Ouandago 6 48 55 C 55 RR1O Ouandago - Batangafo 5 60 25 D Lot No 6 - Zone Nord-Ouest 856 61 RNI Bossembele - Bossangoa 6 148 55 C 62 RN1 Bossangoa - Bedaoyo 6 195 37 D 63 RN3 Yaloke - Bossemtele 7 68 80 As 64 RN3 Bossemtele - Bouar 7 149 80 As 65 RN3 Bouar - Garoua Boulai 7 154 63 Bs 66 RR4 Bouar - Bocaranga 5 142 43 D Lot No 7 - Zone Sud-Ouest 722 71 RN6 M'Baiki - Boda 5 85 49 C 72 RN6 Carnot - Berberati 7 94 99 As 73 RN6 Berberati - Gamboula 7 91 70 Bs 74 RN10 Berberati - Nola 7 136 64 Bs 75 RN10 Nola - Salo 6 55 35 D 76 RR1 M'Baiki - Mogoumba 5 81 53 C 77 RRll Baoro - Carnot 7 95 45 C 78 RR26 Yamando - Bambio 6 85 20 D Total 2897 - 63 - A 4-7 Page 7 of 9 REPUBLIQUE CENTRAFRICAINE PROJET SECTORIEL DE TRANSPORT Appendice 3 Repartition des itineraires en terre selon les tables de decision No No Section de route larg. Long. Traf. As An Bs C D Itin. Adm. (m) (km) (vlj) Lot No 4 - Zone Est 761 41 RN2 Sibut - Grimari 7 120 80 120 42 RN2 Grimari - Bambari 7 78 60 78 43 RN2 Bambari - Alindao 7 118 46 118 44 RN2 Alindao - Kembe 7 112 31 112 45 RN2 Kembe - Bangassou 7 122 21 122 52 RN5 Bambari - Ippy - Bria 5 211 21 211 Lot No 5 - Zone Centre 558 51 RN4 Damara - Bouca 6 215 30 215 52 RN8 Sibut - Kagabandoro 7 152 89 152 53 RNS Kagabandoro - H'Bres 5 83 35 83 54 RR10 Kagabandoro - Ouandago 6 48 55 48 55 RR10 Ouandago - Batangafo 5 60 25 60 Lot No 6 - Zone Nord-Ouest 856 61 R11 Bossembele - Bossangoa 6 148 55 148 62 RN1 Bossangoa - Bedaoyo 6 195 37 195 63 RN3 Yaloke - Bossentele 7 68 80 68 64 RN3 Bossemtele - Bouar 7 149 80 149 65 RN3 Bouar - Garoua Boulai 7 154 63 154 66 RR4 Bouar - Bocaranga 5 142 43 142 Lot No 7 - Zone Sud-Ouest 722 71 RN6 M'Baiki - Boda 5 85 49 85 72 RN6 Carnot - Berberati 7 94 99 94 73 RN6 Berberati - Gamboula 7 91 70 91 74 RN10 Berberati - Nola 7 136 64 136 75 RN10 Nola - Salo 6 55 35 55 76 RR1 M'Baiki - Mogoumba 5 81 53 81 77 RR11 Baoro - Carnot 7 95 45 95 78 RR26 Yamando - Bambio 6 85 20 85 Totaux 2897 431 152 459 575 1280 - 64 - ANNEX 4-7 Page 8 of 9 REPUBLIQUE CENTRAFRICAINE PROJET SECTORIEL DE TRANSPORT Appendice 4 Table de decision des interventions d'entretien sur le reseau en terre Repartition annuelle des lineaires selon les differentes actions unite : km Actions PROGRAMMES ANNUELS D'EXECUTION d'entretien As An Bs C D Totaux RSA 646 102 745 503 1025 3021 RAA 72 25 58 0 128 283 Reha + Rech 72 25 58 72 128 355 Totaux 790 152 861 575 1281 3659 L4gende : RSA - Reprofilage Sans Apport R M - Reprofilage Avec Apport Reha + Rech - REhabilitation et Rechargement - 65 - ANNEX 4-7 Page 9 of 9 REPUBLIQUE CENTRAFRICAINE PROJET SECTORIEL DE TRANSPORT Appendice 5 Table de decision des interventions d'entretien sur le r6seau en terre Tableau des co(ts unitaires (en milliers de FCFA) Largeur 431km 152km 459km 409km en 6/7m 784km en 6/7m Plateforme en 7m en 7m en 7m 166km en 5m 493km en 5m Actions Classes de repartition des itineraires d'entretien As An (1) Bs C D RSA 440 440 440 420 410 RAA 880 880 880 840 820 Reha + Rech 5900 4700 5900 5700 5600 1. 20X des lineaires concernes sont constitu4s de sols lateritiques naturels L4gende : RSA - Reprofilage Sans Apport RAA - Reprofilage Avec Apport Reha + Rech - 5? Rehabilitation et 95? Rechargement AFlIN 29 mars / March 1990 Document: A:Anx4-7E.ear Diskette: TSP ANNES CAR - 66 - ANNEX 4-8 Page 1 of 4 CENTRAL AFRICAN PEPUBLIC TRANSPORT SECTOR PROJECT PILOT ACTIONS FOR INFRASTRUCTURE WORKS One of the objectives of the PST would be, by means of the multiple operations which are to be employed and which will constitute very diversified achievements, to best develop the research, study, experimentation and development of appropriate technologies, with precise evaluation of their costs, taking into account the technical possibilities, the skills of the various agents involved in the infrastructure sector and the socioeconomic conditions. In addition, these pilot actions should help in the development of the medium-sized and small enterprises and of small independent contractors, as well as of their practical training in working according to the rules of the art and controlling their costs. The non-exhaustive list for these pilot actions would include: Ci) for the knowledge, the surveying, the management of systems of asphalt highways, earth roads and rural earth roads, the creation of a highway data bank; (ii) for the maintenance of the asphalt system, the technologies relating on the one hand to preservation of the trav;lable surfaces (sealing of cracks, cold mix for filling in potholes and small crack plugging, wearing surfaces of hot mix of medium and small thicknesses....) and on the other hand to vegetation control (application of chemical products,...); (iii) for the improvement of the permanence of earth roads and of roads at their critical points, the technologies of: * studding of the travelable surfaces by means of stony materials of different sizes in the inclines or in areas subject to erosion; * sanding of traveled surfaces that are too slippery; * stabilization with sand of natural gravel sections that are too plastic; * chemical stabilization of the materials of surface courses in steep inclines, vhich are seats of erosion phenomena; * chemical stabilization of embankments in the vicinity of civil engineering works; * special treatment of embankments for spanning zones of compressible and swampy soils; - 67 - ANNEX 4-8 Page 2 of 4 * utilization of erosion control devices for the preservation of currents and hydraulic sections of ditches, diversions and surface drainage works (studding, pitching, protection by fascines, wattling, "stilling" basins, storm ditches,...); and * use of termitary earths for the surface courses of certain roads; (iv) for some highways and rural roads, for drainage works and civil engineering works, the technologies of intensive use of wood and local materials adapted to the geomorphological, hydrological and climatic situations of different routes, with the employment, depending on the traffic, of rustic or more elaborate solutions, which are nevertheless always dimensioned to meet the requirements of the structural calculations, by using for the elaborate solutions "pieces of wood' fashioned in industrial manner in sawmills; and (v) for road mending, the technologies using small-size equipment and equipment that is appror-'ately chosen as a function of the "size' of the contractors and of the skills of the crews. The above-mentioned pilot actions would, in their different development stages (research, study, experimentation, development), be initiated by different task forces, which could be named: -- "Asphalt highways maintenance" task force; -- "Earth roads permanence stabilization' task force; -- "Intensive use of wood and local materials for the works" task force; and -- "Road mending" task force. The task forces would depend on the TSP coordinator. The members of these groups would be representative of : -- the Administration, and in particular of the technical ministries (Secretariat to the Plan, Department of Public Works, Department of Rural Development,...); -- medium-sized and small enterprises and small independent contractors; -- design agencies participating in the corresponding operations of the TSP; -- the Public Works Laboratory; and -- if possible, professors of advanced technical establishments and their students of final classes. - 68 - ANNEX 4-8 Page 3 of 4 The choice of members being made as a function of the nature of the appropriate technologies. It would seem logical that, depending on the stages of development of the pilot actions: -- research and study would be the responsibility of the representa- tive persons of the technical ministers, of the design agency in charge of the operation as prime contractor (in which the pilot action is included) and of the laboratory; -- experimentation (practical execution of test slabs) would be performed by the enterprise or the small contractor responsible for execution of the operation (in which the pilot action is included), would be initiated by the above-mentioned design agency, and would be tested by the laboratory; and -- final development and tying everything together would be entrusted to the representatives of the technical ministries, to the enterprises and small contractors and to the laboratory. Depending on the above-mentioned stages, and per task force: -_ research and study would be preceded by meetings that would lead to an explanatory seminar; -- experimentation would be crystallized by one or more seminars to discuss results; and - - final development and tying everything together would be the subject of the final seminar. Simultaneously for the appropriate technologies, specific subjects would be proposed to the students of university technical schools for their finishing studies, to end in specialized seminars. All of these seminars, which would be presented to expert technicians and discussed with them in depth. would lead: -- on the one hand to a final report recapitulating and combining the results of the seminars and discussions; -- on the other hand to ensure dissemination of these appropriate technologies to a broader audience, to technical conferences. These conferences could have a didactic character and be based on attractive and vivid audiovisual support. Thereafter, each well mastered appropriate technology would be the subject of detailed technical specifications giving: -- a vivid and detailed description of the technology; -- the detailed list of the materiel, equipment and tools; - 69 - ANNEX 4-8 Page 4 of 4 -- the list of materials and products; -- the detailed timetable of execution of the jobs; -- the practical dimensioned execution sketches and the specific dimensioned sketches (for the reinforcing irons); -- the bill of quantities and estimated costs; -- the measurements and tests for inspection and receiving; - - the maintenance operation to be performed for good preservation of the finished work; and -- the specifications to be introduced into the bidding or into the work contracts. The planned capital expenditures in the TSP for these pilot actions would be 30.000.000 CFAF for each year during the three-year period from 1991 to 1993, i.e., 90.000.000 CFAF. The planned capital expenditures in the TSP for the seminars would be: -- 75.000.000 F CFA for preparation; -- 20.000.000 for the 3 year support. AFlIN March 29, 1990 Document: A:nnx48.ser Diskette: TSP Annexes. CAR - 70 - ANNEX 4 - 9 COWL N RECt ftmW waWf -0U T QflICM. *semevAiCO POT E IPGT'TUTII tO 9wwv MUTIR41 TOTA ItPAT RSILITATTON NO KANTwC aoie P000M~3O SPTALIS so 430 211000 SIOYAD eEIORUeG PECALIST so 430 2100 SUPERVISION SPECIALIST so 4300 211000 MtO.PRETW SPECIAA=S 3 Sa00 1000 PM RUN SMULIST so 4300 2110 SUMJtOTAL 6700 TRAINING C1E4R TRAVINI AND PSPSON.L SSALIST 50 4SO0 210 TRtAtNIN ASSISTANr 30 110 48000 PEARATION1 6S ASO 15 so00 7000, SU-TOTAL 135000 PRtVATIZATION -ANAMuSfT EXPER OPPIR 30 gm Isom RADA CONSTRJC?I0 TRADG 20 400 60000 MAIHTOVAC SSPVWIS 30 I1OO 1400 C4IS PE4 84OlM WOKH 50 so000 2100000 I8'weICAL TOHICIMM (Z9) to1o 4300 410000 TRAI N 9JPX) S0 4300 SO0= S4ALL CLMSTWT,00 M4 ASSISTAD6 T00 SH TIM (1M 21n 12 I250 is0 LCAL SW SSn (MM w ) 3 100 1800 PROMOTIONAL STUDIES 10t S--TOTAL 10900 ROAD RIO ADM soRT6 1 am0 20000 CONTROLLi s0 4300 21100 ASSISTANT CIVIL eMOIMR 30 110 4600 coe.uvmp ThAWO 3 6400 14200 829200, IEAC SOCATRA ( It MEWICS) 240 3800 640000 RI'VR MADMTWiCE(5CWQ 170 3800 SO1000 SAA DOIsm 10 400 4000 MMA SAMWrY WPOCtALISV 12 4800 so00 AND SWATIO" PROOM 1 300 17800, PRJW cOO0VuMTgm so Gmo m500 CO6'UV SPfCIALIST 12 4300 Sim0 PLAIUIP IRANMDO 12 3300 4020 SID64VsISS TUAPOIN 12 *500 40600 Urn-TOTAL -000 TOrAL 433700 Le Nouvel organigram ptroposF Mnstioro des TP |FodRutr| et. do IA nagomnt du Torritoer. . [off1out1e u~~~~ _I......... ... Cabinet |C.iwI Ilore Techniques Inspection Centrl- L rtolre Control] | Sbet......3............................................. DColuule de Planlficatlon Division Comptobl- | | Direction desI et Ftnnocibr Log--t I Ad tnlotratifs | IDir ction do Dlr ctton I- R _ uro" b ii jo la Lnistiique Olr ction 4dnora Dr. irectteon dn6ro ec do4 TP de I "A nogo nt Iw T eto |Centr81- de Ceotlon D)ctloo do Not6rTi | ir ctlon de Oir ctt n de Ol ttnd Cod tre Dlrctton de et do Progr_aation I 'A^aone nt I Urbanlsm I'Hobitet et do du Torritoir. La Construction Dirction dEtudesde Direction des Routes Prgea_ tton & Marc9h6o ......... ........................ Chantiors Routier | runit.6 subdivisions Liaisons Hi6rarchiques |...... Liaisons fonctionnellos - 72 - ANNEX 4- 11 I S 1111si Ii I1 .1 IIIu U U I I I liii I I I Ii I I Central African Republic Transport Sector Project Project Cost Sumary FCFA 000 uSe 000 X Total ___________ _ -------------- -- X Foreign Base Local Foreign Total Local Foreign Total Exchange Costs A. Road Works 1. Paved Roads 42259590.8 C84136.2 10872087.0 148.6 2213.8 386240.3 81.1 29.9 2. Graveled Roads 5704520.0 8038685.0 13743185.0 19015.1 26795.5 45810.8 68.6 37.8 S. Feeder Roads 714360.0 1048340.0 1760700.0 2381.2 3487.8 6869.0 69.4 4.8 4. Critical Points 360000.0 640000.0 900060.0 1200.0 1800.0 3000.0 60.0 2.5 …_ _ _ _ _ _ __-- . .… - - __ __________ - ----- … -…- ________________________ Sub-Total 11004830.8 16271141.2 27275972.0 36682.8 64237.1 90919.9 59.7 76.1 B. Aviation 1. Air Transport 48468.0 103392.0 161850.0 161.5 344.8 508.2 68.1 0.4 2. Meteorology 22500.0 67600.0 9000.0 75.0 226.0 300.0 76.0 0.2 Sib-Total 70968.0 170892.8 241860.0 238.5 569.6 8086.2 70.7 0.7 C. Privatization 1. Workshop 229640.0 849880.0 1079400.0 765.1 2832.9 3698.0 78.7 3.0 2. SME Support 68310.0 330890.0 387200.0 187.7 1103.0 1290.7 85.5 1.1 Sub-Total 286850.0 1180760.0 1466600.0 962.8 3935.8 4888.7 80.6 4.0 < 0. Institutional Support 1. MTPAT Support 444975.0 2301325.0 2748300.0 1483.2 7871.1 9164.3 83.8 7.6 2. Planning Cell Support 69420.0 401680.0 471000.0 231.4 1338.6 1570.0 85.3 1.3 3. IITAC Support 288015.0 1689885.0 1977900.0 960.0 6832.9 6593.0 85.4 6.4 …-… ----- - _ - ------ - _ ______________________------… Sub-Total 802410.0 43M9790.0 5195200.0 2874.7 14642.6 17317.3 84.6 14.3 E. Studies A Pilot Actions 1. Studies 318800.0 1274400.0 1593000.0 1082.0 4248.0 5310.0 80.0 4.4 2. Pilot Actions 143250.0 396750.0 540000.0 477.5 1322.5 1800.0 73.6 1.5 _______ _…________…_-…_______ _ ____ _ ______________________---- - _---_____________- _________ Sub-Total 461850.0 1871160.0 2133000.0 1639.6 6670.5 7110.0 78.3 5.9 Total BASELINE COSTS 12825898.8 23686723.2 38312622.0 42086.3 78965.7 121042.1 65.2 100.0 Physical Contingencies 1062178.8 1886141.4 2737320.0 3607.3 6817.1 9124.4 81.6 7.5 Price Contingencies 744228.5 1816692.9 2659819.4 2480.8 6062.0 8532.7 70.9 7.0 Total PROJECTS COSTS 14422303.9 27187457.5 41609761.4 48074.3 60624.9 138699.2 65.3 114.6 -- - ------------------------------~~~~~- --- ------------- 3/23/1993 14:40 0 "3 4.D Cest,ol A#,lco. Ropobilo Tre"rt Sowt.r P.J.t Sou_er1 Acaoct by P-Joot Comp~t rc A eu plmma.9 c mPoyole P,lc Pav Grarled Fod CWOtWcl Al, btteoolog So6 SWAT Coll tTAC Pilot Rood. ROD. Ro.r P.l.t. Trwpoft y I.b. 5rp Sop9t 5099049 5urppot Suport sr dfl. Aftloos T"ol S A-oot 1.DmEt CCTST A. Civl tIbbe 126MI.8 12762270.0 16246mg _ e6t 121640.0 0.6 e.g 6.6 406e6.6 6.6 0.e 6.6 0.6 2716457.0 0.1 25104.e 7.2 1team6.?7 i. M = 6.0 0.0 6.6 6.6 em. Se.0 e-e.e 17e. e n ae 14 e.0 427M. 6.0 BUNCO 168 .6 0.6 e28.0 5.1 at1s. 7 C. TcsoI A.olt6.cO 1. uo Commoo,.alq 6. .0 0.6 0. 6 0. 6 . 660 66 20. .0 0* 66 66 0. 0.0 266.0 0.0 311. .0 0.6 6.4 166.9 4. Sllmb" 6. 0.6 e.g .e e- e e.g e. 6 60 1.a 06e 11.0 66 884260 06 6.0 172e661.0 .0 6.6 0.0 51882.7 0.5-t*#At ;. ;. . 6 0 6 7s04m 2426. 2120.6 o 147846 66 72et.e 510e6.0 6.1 5eM.0 7.S s7o" D. Stodboo A r Ssp..,Soie 525666.6 416606.0 e 6 0.Z e e0 56s6.6 e .0 6.6 16666.6e e 46nee.0 462660 0I 10311666 0.6 n246. 6.1 107076. 6.s 10107.0 E. biscool o 6.6 e.e 0.. 0.6 0.e 6.6 6.0 6.6 21.0 6.6 7666 06e 127066.0 2e40.e 3.1 6e86.6 6.4 IStM.4 Total 199651224 £001 107901147.6 1817027.0 172006. 56. 216180.6 0666.6 P907046. 86826.6 26905111.0 44411106.5 112026.0 ISWM.0 040666111.0 18442617.0 L.S 2681074.6 7.1 286020.4 IZ. tEtl4T £201 A. Eq.1lpit OK 6. 6. e 6.6 6.6 0.6 0.6 6.6 186m.6 186.6e oom0 e.o 0.6 21166.0 9.4 16.0 6. 134. b. Road Uol 6I4 6 n724.6 16415.0 25206.6 6.6 0.6 ee 0.6 0.6 0.6 e.g 6.0 6.6 0. e28688.0 6.e0 6626.6 6.5 42065.1 Total RE6CI tDSTS 72146, S6661.6 20206 6.6 6.6 6.6 0.6 se6.6 16166.5 27 n6.6 111..e 6.6 0.6 0744s5.6 9.9 se248.6 6.0 67294.6 Tout BASSL £2219 =2118 7.0 6 274315660 1 0 M766766 6 MM.: 551666.0 9etn7a.: 10766. 26.6 2746266. 4010 1 64.9 20212022.6 7.5 273726.6 7.6 25 0.4 P~2..bool Co.tIng..clo. 8666616 1874815 17067 60 06. M70. OWN. DOM 460.0 5686.0 2616. 44186.6 86750.0 27.610 2721226.6 P.1,. Cmtl.ooooloo 76877 9746407 186764 6 67406.6 6S89.1 2202.2 12340.0 20261.9 297266.e o 20029. 182862.6 74127.7 t948Z.l 200619.4 7.2 166042.7 Total P6JCT 0tSTS 1202761.34 1606120.2 2603474 610674.0 16841.0 101282.2 152749.6 426461.0 2061566.6 6119. 2160651.6 17227'.? 6o6141.5 426O680.4 7.0 2923068.7 8.2 28s0019.4 TOWN174628 7 1206567 11074 64666.6 1.0 6M.$ e.0 42242.8 24075.7 141246.6 268.8 0212.4 661ls.0 2111.6e 74179.6 7.4 27e02.7 PIV.lg. b 7 67 766 14 2 620669.1 118106.6 7680.1 641614.4 80216.6 251274. 42574a.7 16068.7 11206.7 4428.5 27177.5 0.7 162.4 8/231156 14.46 Central African Republic Transport Sector Projeet Summary Accounts by Year Totals Including Contingencies Totals Including Contingencies FCFA 00 US$ 000 1991 1992 1993 Total 1991 1992 1993 Total I. DIESTM COSTS A. Civil Works 10726005.1 9463e97.4 9787222.3 29901924.7 35780.0 31455.7 32467.4 99673.1 B. EquIppmnt 903909.7 713278.9 191016.1 1808203.7 8183.0 2377.6 638.7 6027.3 C. Technical Assistance 1. Local Consultancy 1221.0 1268.7 1811.2 3795.9 4.1 4.2 4.4 12.7 2. International Experts 17 U681.7 1154846.1 2005886.2 4863764.0 5678.8 3849.5 6684.6 18212.5 8. Short Term Consultancy 175057.3 146145.9 209686.7 529651.9 563.6 488.8 898.8 176M.2 4. Fellooships 72069.9 5496s6 57627.8 184692.7 240.3 163.2 192.1 816.8 Sub-Total 19S1976.9 1858222.2 2278905.4 5582104.5 65o.6 4520.7 7679.7 18807.0 D. Studies A Supervision 1616847.8 747803.5 712907.4 8671618.5 6385.5 2492.0 2876.4 19253.9 E. MIsceallenous 82308.0 80302.0 40765.6 223375.5 274.4 267.7 202.6 744.6 -_- - - -___- - - - - - - - - - - - - - - - - - - - - --- -- ---- -- - % Total INVESTMENT COSTS 15261847.2 12334104.0 12976815.7 40591766.9 593s9.5 41113.7 43252.7 135305.9 tI. RECURRENT COSTS A. Equipment OMC 78802.4 81960.5 85862.0 246114.9 282.7 273.2 264.5 820.4 S. Road Manual Maintenance 247518.4 255796.0 286857.2 771879.6 625.1 852.7 895.2 2572.9 994_ ---- ;-- - ------------ - - --------- Total RECURRENT COSTS 826316.8 837746.5 368929.2 1617994.5 1087.7 1125.8 1179.8 3393.3 Total PROJECT COSTS 113329744.9 41609761.4 52027.2 43 4 18889 ____ _-_-______ _ ____ _ __________________ - -_----__ - - --- -… - ________ 8/23/1990 14:40 ft 0u (A) ANNEX 4-13 -76 - CENTRAL AFRICAN REPUBLIC TRANSPORT SECTOR PROJECT Impl..eutation Schedule czonf,its 190 91 199R 19 19 1995 A. TechnicaL A"istame Privatintion 13. Mechie a Thaniner Fl IEn 2b. Spec ilixd Technician _ 3a. techanie ltTr inr 3b. Mechanical Trainer 4. Accouatant * ** SlE Support 1. *manegmnt Expert 2. Road Contrution Expert - 3. Ju nor Expert (VSN) nTPAT Support 1. junior Expert (VS) 2. Training Exrt 3. Training Junior Expwrt (VSN) 4. Studies Expert S. Ptanfiecetion Expert 6. Supevision Expert 7. Road Fund Ainistrstor 8. Road Fund Supervisor 9. Computer Specialist SARC Support 1. Tranport exprt Plamin Cell Sort 1. Project Coordinator - 2. Couter Speeialist B. DetaIled Studies 1. * Pad Road - 2. Graled Rods - - 3. Feeder Road C. Road Verb Supeision 1. Lot ni1 80l86Uo/60884MM- 2. Lot n@2 - U*blt (CR1) -- 3. Lot nY3 Paved newo - 4. Lot n*4 - Sibt/3w su - S. Lot n* Cnte Area 6. Lot n-6 - North-West Are - - 7. Lot n? - South-West Ar 8. Lot n1 8 Feede Roa 9. Lot n*9 -Srfids *& culvet 1IzI[-1 O. _emimet Mfnt IIw II o ine ftferol Coe"ition sidIng I - 77 - ANNEX 4-14 Page 1 of 2 CENTRAL AFRICAN REPUBLIC TRANSPORT SECTOR PROJECT Disbursement Profile Standard FY D;isbursement S.Mestrs Cumulative Cumulative Country Profile IDA's FY USS Ui Iion US lMillion X U FY91 4.00 4.00 0.0 0.01 4.30 8.30 0.13 0.08 FY92 3.60 11.80 0.19 0.12 6.00 16.80 0.27 0.16 FY93 5.70 22.50 0.36 0.28 8.00 30.60 0.49 0.39 FY94 7.00 87.50 0.60 0.62 6.00 43.50 0.70 0.62 FY96 6.50 49.00 0.79 0.73 6.00 64.00 0.87 0.84 FY96 4.00 68.00 0.94 0.90 2.20 60.20 0.97 0.93 FY97 1.80 62.00 1.00 0.95 0.J9 FY96 1.00 TRANSPORT SECTOR PROJECT veus coueny prof 0.7 - 0.9 0.6 0.7 0.36 002. 0.4 0. FY91 FY92 FY93 FY94 FY95 FY96 FY97 FY98 IDA Fiso Year 0 ctancdard + T S P Including rapid disbursing componentfor RN1 M'Bali reconstruction works (US$5.3 M during 1990-91; and US$1.5 H PPF refinancing at Credit effectiveness). AFnM fMrch 27. I0 - 78 - ANNEX 4-14 Page 2 of 2 CENTRAL AFRICAN REPUBLIC TRANSPORT SECTOR PROJECT TRANSPORT SECTOR PROJECT varu countX prof 0.8 0.7- & 0.0 0.6 &L 0.4- 0.3 0.2- 0. FY91 FY92 FY93 FY93 FY96 FYn6 FY7 FY98 IDA FISCL YEARS a STANDARD + TSP RNI MSW TSP disbursement profile excluding rapid disbursing component for RNl li'Bali works. AFlIN Nardh 27. 1iO - 79 - ANNEX 6-15 Page 1 of 5 CENTRAL AFRICAN REPUBLIC TRANSPORT SECTOR PROJECT ROAD FUND FINANCING I. REVENUES OF THE ROAD FUND On the basis of the audited financial statements of 30 September 1987 and of 31 December 1988, it turns out that the Fonds Routier (Road Fund) is in a deficit situation (240 million CFAF in 1987 and 5.9 billion in 1988) due mainly to insufficient revenue allocated to cover the current operating expenses. The 87 deficit does not include provisions for major repairs or for replacement, whereas these two provisions are included in 88. To remedy this situation, which ultimately would risk compromising the realization of objectives assigned to the Road Fund at the time ot its establishment, an increase of revenues is proposed which does not necessitate, under the present economic conditions, raising the price of fuel at the pump. This increase would lead to the following revenue levels: 2.1 billion in 1990, 2.2 in 1991, 2.4 in 1992 and 2.7 billion in 1993. If these objectives were to be attained, the Road Fund would be able to cover its operating expenses for the period in question (1990-93). These expenses should be understood in the broad sense, i.e., including amortization of the Road Fund capital assets and provision for replacement of the equipment stock. The establishment of this provision is justified by the needs for equipment necessary for maintaining a force account crew for repair of critical road sections as well as a crew for regrading operations. While changing from work under force account to work by contractor during the Transport Sector Project (TSP), the two above-mentioned crews will be maintained to permit the Road Fund to continue some activity under force account on highways, civil engineering works and ferries. This provision has been calculated on the basis of the replacement value of the stock at the end of 1989 (estimated as 1.8 billion CFAF) and taking into account the average remaining useful life from that date (5 years). II. HIGHWAY FUND AND HIGHWAY TAXATION The revenue levels mentioned in Chapter I would not be attained without a progressive increase of user fees, since it is understood that macroeconomic forecasts indicate very small variations in the volume of fuel consumed relative to the 1989 level. Under these conditions, it is planned to transfer part of the stabilization tax to the Road Fund. If this transfer should become effective, user fees for the 90-93 period should then be understood as over and above the stabilization tax. In order to compensate the reduction of the fiscal resources that would result from such a transfer, it would be advisable to institute appropriate - 80 - ANNEX 6-15 Page 2 of 5 highway taxation measures intended to increase Government revenues, which measures could include an increase in the vehicle tax. III. PROGRESSIVE FINANCING BY THE MTPAT BUDGET OF EXPENSES FINANCED BY THE ROAD FUND AND NOT RELATED TO UPKEEP AND MAINTENANCE The audit reports for the periods ending 30 September 1987 and 31 December 1988 indicated that the resources of the Road Fund had been used to finance fuel, salary, upkeep and repair expenses of vehicles that are not related to highway upkeep and maintenance. These non-maintenance related expenses were identified during appraisal. They rose to about 146 million CFAF in 1988 (12 months) and are estimated at about 150 million CFAF for 1989. For 1990, projections suggest an amount of 144.55 million CFAF, which would have to be absorbed by the national budget. Of this amount, 112.55 million CFAF was determined on the basis of the three following criterias the capacity of the Government budget to absorb the expenses in question, the comparison of the expenses with expenses of the same nature committed by other ministries, and the specificities peculiar to MTPAT. The difference of 32 million CFAF concerns building maintenance (15 million CFAF), maintenance of equipment and office equipment (10 million) and purchase of equipment and office equipment (7 million CFAF), which in principle should be taken from the Government budget starting in 1990. It has been assumed that the projected amount of 112.5 million CFAF would serve as the basis for determining the share of expenses to be financed by the MTPAT budget. Consequently, on the basis of discussions with officials of the Road Fund on the one hand and of the Ministries of Economy and Finance and of MTPAT on the other hand, it is recommended that financing by the budget of MTPAT be effected progressively from now to the end of 1993 in the following manners ii N $J S 0; 00 gX XD Nf *i fi gt - 1§ *§* s@W@X t e 11 j ||||| Jl * SS 18 s S u S IA 0 .H O WS §§gggW R WS 1S W > ~~~~~~~~~~8 mcx WE 1 W W g MW~~~~~~~~~~~~~~~~~~00 CENTRAL ARICAN REPULIt TRAMNSPFtT SECTOR PROJECT good Fund incoam Statesent. (CFAF ml Ii onal F Routi Sdo MTPAT F Rquti 8do MTPAT F Routi bdo KTPAT F Routi Porti, F Routi Portie F Routi Port;i F Routi Portia 1S o;s 15 so; 2 12 sooe I2 MSe fP.nncoe/ Finance./ Financoo/ Finence*/ 1988 198 1988 1988 1989 1989 1990 PITFAT 00 1991 MTPAT 91 1992 PITPAT 92 1993 ITPAT 03 Petrocs 217200D 1737B00 175000 2100000 2200000 2400000 2600000 Othbr a8o00 30400 3s000 42000 44000 480C0 52000 Total SRevenue 22100C0 176b000 1785000 2142000 2244000 2448000 2652000 Cburent FonctConneoent 886019 13000 244615 10400 332542 35504 349169 30000 356162 30000 363275 30000 370541 0 Carburant Mission 60169 290 48135 18472 59100 715 62065 14000 63296 14000 64562 65853 Lubrhifint 64967 2678 51974 2142 66949 70297 6600 71703 6600 73137 4500 74599 0 Pieces Engina 51610 101 2828 61 101654 106737 106872 131049 113270 Piece. VEhices. 149327 36090 119452 28872 °0720 11335 84756 9000 86452 86181 69944 Pieces Mach;nee-Outile 1565 1737 1252 1390 2878 120 3021 3082 3144 3206 Fourniture Atoliers 6740 8 8392 6 928 30 9679 9873 10070 10272 Pieces Pour ausc 7830 6264 0 4789 5029 5129 5232 5385 Lot. de Bord 6510 2608 5208 2064 2892 452 3037 3097 319 3222 Pn.u_tiquo. 172S3 488 13826 390 73276 5858 76939 78478 80048 61649 Batterr;ie 10659 29 8527 23 9961 195 10489 10668 10882 11099 Reparstions engine 6175 187 4940 1SO 5272 583 5646 5759 5874 Repsration. ohiculeS 29598 11794 23676 94SI 35870 9590 37864 4000 38417 39186 39909 FeurnIturer Motors 102242 4548 81794 3638 87046 20 91398 0 93228 95090 96992 Acquisition Voituree 0 0 0 0 0 0 0 Acquisition Outillege 16847 2612 123S8 2090 12664 21 13297 7000 13563 13834 14111 Entretien Inst llation 24314 1853 19451 1482 1l688 3276 12272 0 12518 1276 13024 Entretien Mater,el de Bureau 7538 6785 6030 5428 7373 2857 7741 10000 7896 8054 8215 March. OPPcR 39860 318880 0 140532 147559 1S0510 183520 156590 Remboureoent Factures 7120 5696 0 21038 22090 22832 22983 23442 Fourniture. Bureaux 28571 10289 22887 8281 48900 9123 46095 8750 47016 47957 48916 Etude. lnforst;que. 3497 2798 0 5443 8716 S630 5946 8065 Eitreti en l_obilier 12736 3067 10189 2454 8802 2W01 9242 15000 9427 9615 9808 Location IA 1bi liers 1496 1198 0 7530 7530 7907 8900 8085 8226 8390 00 Charges Locetivee 1382 168 11061 185 8766 8766 9204 9300 9386 9576 9766 12 Autroe Charce Dvorse 356897 7224 29518 8779 52237 3722 54849 9 6948 57065 58206 Por_sn ento se 207348 1516 165876 121 138306 11000 145221 0 148126 151088 154110 Persenente as" 33101 2681 0 47844 50026 51026 52047 53088 Rappel Selirse Ba s 3504 2803 0 4064 4268 435 4440 4529 Rappel Selairas Sae 223 178 0 821 862 679 897 915 Temporal;ee Entreotin Routler 28110 224d8 0 44174 228 46383 47311 48267 49222 Teepora iree ONce 0 0 26 278 284 290 298 TemporsIre. 8ft,rrg- Pluie 23782 16986 0 l 9587 2054S 20958 21376 21803 Temporeioe Coeptage Routi;r 53 466 0 998 1043 1069 1091 1112 Rappel Temporiree Routeor 2315 U182 0 3326 34V3 3563 3634 3707 Rappel Tampoersre Baca 1070 856 0 94 96 100 102 104 O.C.S.S. 5672 45380 0 8489 B7634 s8786 59962 61161 lndr i tee 45654 7008 36525 Sb66 92g6 120 9718 9913 10111 10313 Mission court, duree 0 0 4040 610 4242 8C00 4327 4414 4602 Miseion lonceo dure 0 0 5852 78 6145 2000 6268 6393 8521 Indenit toroateur. 0 0 18O 110 1207 1231 1256 1261 lnde.. ito Layer 0 0 300 315 321 328 334 Prime de fonction 8aJ 0 0 29574 876 31053 31674 32307 32953 I.F.P.P. 10975 8780 0 9960 10458 10667 10881 11098 Frei& Tenu deo Coeptee 124 99 0 314 59 330 337 343 350 IL/FAC 70527 56422 0 10512 11038 11258 21484 11713 JERlB/FAC 93169 74536 0 10600 11340 11567 11798 12034 8ien et Seor;ce. Congoo_e 24962 19970 0 72 76 77 79 80 Rparostion. 41205 32964 0 151 159 162 165 168 Cal.. d ven.e 0 0 20701 21736 22171 22614 23067 Aide. at Secoure Divoer 2732 S84 2168 467 1705 648 1790 1826 1863 1900 Assurances 1604 413 1283 330 6581 210 6910 7048 7189 7333 Freis de Reception 1572 1215 1256 972 2048 83 2151 2194 2238 2282 0 t 0 0 0 0 0 0 Ho's Prr.ge Entr.t, Routi bJ 116782 4771 93426 3817 53720 647 i6406 57635 5e8s8 59859 Diners cJ 42712 38658 34170 30928 33000 0 15000 0 151000 0 0 C TOTAL 2210584 182516 1768451 146013 1873027 150019 1756678. 144550 1791811. 65600 1827648 34500 1864201 0 0{T CASH FLOW -S64 -451 111973 385322 452168 620352 7P7799 L Ao"t,..tnt. de Binb Per..," -32000 -32000 -32000 -32000 -32000 -32000 Pr,, sen Pour R.nouv,.Iolnt -360000 -360000 -360000 -360000 -360000 -360000 Re.Stet Not -564 -392481 -250027 -6678 60188 226382 395799 Part annual finance par MTPAT "ur 145 oi ll ;one de FCFA 802C0 28750 31100 34800 Cueul Part ennujl finne- par W4PAT ur 145 sillion. de FCFA 50200 789S0 llOo=O 144550 aJ includ undt-nfled(270.7l) bJ Operation Jaguar e_ 9udget KTPAT 1989 Including 112,261 *262 un;dentif6ed due to ineuffilcint analytical accounting .ystes cJ budget MTPAT 1990, Ineludi.6ng ronea of fied easete / Budget KITPAT 1988: Including Chalet de Mobay,, Fete dJo Mli aeon. et Fete du Ier Deceebre - 83 - ANNEX 6-15 Page 5 of 5 CENTRAL AFRICAN REPUBLIC TRANSPORT SECTOR PROJECT Collection of Tax ("Vignette") on Vehicles Collections of Bangui Tax Office - Year 1989 Number of Number vehicles Amount tax taxed Collection Categories CFCA'1 sold (estimate) Rate2/ A (less than 4 HP) 15.000 236 1.000 23,60 % B (4 to 7 HP) 20.000 1.675 1.800 93,10 % C (8 to 10 HP) 40.000 1.331 1.600 83,20 % D (11 to 12 HP) 50.000 492 800 61,40 % E (13 to 15 HP) 60.000 143 300 47,70 % F (16 HP and over) 75.000 496 800 62,00 % 1/ 1989 Revenues were about millions of CFAF 160.78 whereas 1988 Revenues amounted to about millions of CFAF 155.3 2/ The collection rate for the light vehicles is higher than that for heavy vehicles. AFlIN March 29, 1990 F MAP SECTION k h - N b - IBRD 180959 NIGER 2; - _ CENTRAL AFRICAN REPUBLIC .-, ,._.s,, . ' ;' A F RIt C A . 7f . REPUBLIQUE CENrRAFRICAINE "<'- HA C. SUDAN TRANSPORTATION AND POPULATION DENSIT' Ao CTH A C z 'l. > S t8 [RANSPORT Er DENSITE DE POPULA TION I G E RIA 0.otOENSITY IN AjITAN1S PER SO '4 L- \ LESS Th AN 10/ MOItS if F. 0 /,!NEAn (_; VTHE A AGa N D GA# A M/NGU/ N~ t ) 4UZsN ENTRAL / POPULATION U-RBINE 3/1-550 CAMEFOOO EAFRICAN REPUBLIC _ __ __ _0 -u OONES lOF 1 /5 toSnW - PEPESRP0ySoREvESutRrNNmX- I r^~lx5 CAMEROON s>H.0 fTEC + -- IOEE5-''' rawSrasn Of'lg 00,0175S ? 00F er _ - _ -. OR AOSES -I A CONGO % T_ = H D ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ N ~~~~~~~~~~~~~~~~NDMIM~~~~~~~~~~~~~~R0!ASMERMOAE AMEROON o0so -.-. * S U D A N HA U TE oug, ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ iu '* \ Y*I~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~I ( Al/edo! "'R~~~~~~~~~~~~~ AI 10 ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~SOURCE, WAED ON GENERAL POPULATION CENSUS OF 1975. PLE'S REP. 0 50 Too ISO 200 250 300 ~~~~~~~~~~~~~~~~~~~~~~SOURCE, BASEES $UR £0 RECENSEMtENT GENERAL DE LA POP'/AAVl7 DE01975. CAMEROON ' " OF THE /O~- K0000,0, p1L0y70.00 0561Ef ,0vn4ERS0 C,1sneo 3 0 too IS0 200 oA 00,07.008, *d00800111F0.0C~rRs ,/001 MILES APRIL NIGER . C d / CENTRAL AFRICAN REPUBLIC -, ,,--s_. 2 t' A F R I C A 9 REPTU8LIQUE CEWRAFRCAINE 8 C H A D t. S U D A N t t V , \' HIGHWAY MAINTENANCE PROG - 1 98S N-GERIa tf' (< < .-(t ! t ,-'* > 2 o4\3+~/ PROGRAMME D'ENTRETIEN ROUTIER - 198' N I G E R I A 0 ~~~~~~~~~~~~~~~~~~~~~~~~INCLUDING LOCAL AND FOREIGN FINANCED NIGRRIA EH'*N - ,,/OT - < ! --\- Sellobtsc S $? X MAINTENANCE BRIGADES -L ,-..~~~~~~~.--'~~~~'I \RTIOOC 1 ~~~~~~~~~~~~r' EZI ~~~~$ERS44401(E1 UNI 4350K,T) \ -~~~~~~~~~~~~~~~ ~ ~ ~ ~ ~ ~ ~ ~ ['kJ ~~~~~~~~~~~~~~~~~~~~UIa(1OOK-I UN2 (350K.~I .t-w /./ r t RAi. / FAC,GLZ(UEIG) I 1400}-- t UPI (950jX) AFRICAN REPUBLIC- 2 CAMEROON L.xN KfW(AROP)(630K.) UPr2(975KE W ~ ~ ~ ~ ' -oOu1 ~ 'N k. .' 3R -- OTTER4 l ,A, HAE' ,, _ _ -- EHOTaL \,~~~~~~~~~~~~~~~~~~~~~~~~~,g L E< \' 'IEOUORIAL('. .3 OTE °OR j~OE PEPL'SREroS T} I'E 'UGANosDA 20 2s 0 CONGO RECET CAMER OO N (,/ d! OFTEC sbo2 iowTw 'f^s'tr~s aE t< Mi !soto.. s 20œ eoaeweitfadf"f ~~~~,4 41~~~~~~~~~~ UUERATI Bodo VE~~~~~~~~~~~~~o1AMRTTTTTHAWAIAEE CAMEROON IOF TE C- o ,f TfTHOTR i fv ,, a fa _- -i** S U D A0 N DE R /~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~IE 20' 2llt.~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~- ZAIRE~~~~E _ ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~IBRRn 222 IGER 2 912'2-d,_* 249 CENTRALAFRICANIREPUBLIC o % = / A F R I C A \ < \, ~~~~~~~~~~~~~~~~~~~~~~~~REPUBLIQUE CENTRAFRICAINE 9% C H A D t ~~~S U D A N J T l TSP PRIORITY ROAD NETORK G E R fI A ),,t\9z(,, - 'P5T PROGRMM D'ENTRETIEN DU -C , V -\ < 4 10, S1> RESEAU ROUIIER PRIORITAIRE ,.'wi % ;rs / - < _4 \9 ,~ LOT I 168 km.. L OT 1761 1,m I V L \Jt< OT 21419 k..) LOT 5 (558 tm ,) d/~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ LOT 3 (41 LO 'I-|6 , (856 k- 'w <_~~~~~A >Goa N-RI P. R.>2 _-\S_ '\ ~ ~ '*-t i PEPEAWEP I CAMROO s0 / OfTHECOO s'JTHE,0 2,01t _ M2-s1@4 1 GU ~ ~ i /AN 'DloAotE + 1o b*fUe~m_ w ,^CONGOg20*222< fsAPI 9