AIDE MEMOIRE Project: Rwanda Emergency Connectivity Restoration Project (P504023) Project Stage: Implementation Aguiratou Savadogo-Tinto, Sr. Transport Specialist (TTL) Team Leader(s): Solange Mizero, Transport Specialist (Co-TTL) Country: Rwanda Key Data Counterpart IDA-7544-RW US$80 million Disbursed 0% US$13.68 million Financing Board Approval April 25, 2024 Effectiveness Date July 25, 2024 Closing Date Sept 29, 2028 Date Mission Start Date June 3, 2024 Mission End Date June 27, 2024 Site Visit Date N/A Introduction 1. Representatives of the Government of Rwanda met with the World Bank (WB) mission to jointly review the implementation progress towards implementation of the Rwanda Emergency Connectivity Restoration Project (P504023). The objective of the mission was to: (i) follow up on the progress towards project effectiveness, (ii) review the readiness for works commencement in line with the proposed roads and bridges works packaging, and (iii) review and update the procurement and implementation plans. 2. A wrap up meeting chaired by the Permanent Secretary/MININFRA was held on June 27, 2024. The Mission would like to express its appreciation to the counterpart staff from Rwanda Transport Development Agency (RTDA) and the Ministry of Infrastructure (MININFRA) for the hospitality and co-operation extended by all those met. 3. This Aide-Memoire records the major findings of the mission and agreements reached between the Government of Rwanda and the World Bank. The Aide-Memoire contains the following annexes: 1. Persons Met and Mission Members 3. Status of Legal Covenants 2. Results Framework Summary of Project Status Progress The PDO is to restore the connectivity in areas of Rwanda affected by floods Satisfactory Towards and landslides in a climate-resilient manner. The Recipient made significant Achieving efforts to meet the effectiveness conditions during the mission and fulfilled all Project the requirements subsequent to the mission (the project was declared Development effective on July 25, 2024). The procurement process for the project's key Objective (PDO) activities was initiated. No delays have been recorded so far, the rating is currently satisfactory. Implementation During the mission, RTDA presented a realistic Project Implementation Plan to Satisfactory Progress start the civil works by September 2024, starting with the selected 10 national paved roads. 1 Counterpart The Government contribution to the project will cover taxes on works and Satisfactory Funding services during project implementation. This will be budgeted for in line with the project progress. Project RTDA has confirmed that all the required staff are in place to implement the Satisfactory Management project. Financial RTDA has put in place the designated and counterpart funds’ accounts, Satisfactory Management together with the approved signatories for the withdrawal of the project funds. Procurement RTDA has initiated a procurement process for some key activities. A Satisfactory procurement plan for project activities was also submitted to the Bank for approval. Monitoring and RTDA confirmed that the monitoring and evaluation plan and all necessary Satisfactory Evaluation tools to collect data on all project indicators during project implementation are under finalization and this exercise shall be completed by the end of quarter one (Q1, FY25). The terms of reference for M&E Technical Assistance to conduct the mid-term review of the project will be submitted to the Bank by the end of quarter two (Q2, FY25). Environmental The project’s ESF (Environmental and Social Framework), SEP, ESMF, and ESCP Satisfactory Safeguards have been prepared and disclosed at the project preparation stage. Additional ESF instruments aligned with the WB ESF and national policy will be prepared by RTDA, approved by the Bank and disclosed before the commencement of any civil works. RTDA is currently conducting environmental and social screening for the selected 10 national paved roads. Social Significant progress has been made in implementing the agreed actions Satisfactory Safeguards outlined in the prepared ESCP. The project allocated funds in the budget for expropriation costs under the RAP implementation to compensate for all properties affected by the proposed project activities. Citizen Consultations with project beneficiaries have started in the project area and No Rating Engagement will continue throughout the project implementation period. Grievance Grievance Redress Committees (GRCs) will be established in areas that will be No Rating Redress identified given the level of impacts and risks, given the outcome of the Mechanism environmental and social screening exercises. Occupational To avoid and/or minimize any anticipated occupational health safety and other No Rating Health and related risks, contractors will develop and implement the Contractor’s Safety Environmental and Social Management Plans (CESMPs) and relevant Management Strategies and Implementation Plans (MSIPs), such as Occupational Health & Safety Management Plans (OHSMP) and Traffic Management Plans (TMP). RTDA will ensure the effective implementation of these instruments during the entire project implementation period. Key Issues 4. The mission noted that the Recipient had made significant advancements towards meeting the effectiveness conditions specified in the Financing Agreement. After parliamentary approval of the project on June 7, 2024, and its publishing in the Official Gazette of June 29, 2024, the Recipient made significant efforts to finalize all the remaining tasks required for effectiveness, and the project was declared effective subsequent to the mission (July 25, 2024). 2 5. RTDA has already selected 10 National Roads1 for repair and rehabilitation under Cohort 1, with civil works planned to start by September 2024. During project preparation, it was agreed that RTDA would prepare and disclose all the required ESF instruments before the commencement of any civil works. RTDA is currently conducting environmental and social screening for the selected 10 National Roads. When ready, RTDA will submit a screening report to the Bank for review and clearance before further steps to conduct Environmental and Social Management Plans (ESMP). This has to be expedited to avoid any delays in project implementation. Project Progress 6. The implementation progress is rated satisfactory. The mission commends the progress made as the procurement process for some key activities was initiated. During the mission, RTDA presented a Project Implementation Plan which shows progress of 75 percent for the works under Cohort 1 and 15 percent for Cohort 2 by the end of June 2025. Progress per project component is provided below: 7. Component 1: Rehabilitation/repair of damaged transport infrastructure in a resilient and safe manner to connect districts affected by floods (US$89.68 million). This component will finance three sub-components related to national roads, district roads, and bridges, covering the design, supervision, and monitoring of works and the rehabilitation works of the damaged infrastructures. Measures such as slope stabilization and afforestation will be implemented to mitigate future landslide risks and fortify community resilience. (a) Subcomponent 1.1: Rehabilitation of national roads (US$51.33 million). • Selection of 10 paved national roads to be repaired and rehabilitated was done. • 20 procurement activities (10 works and 10 consultancies) worth US$37,135,646 are already submitted in STEP. (b) Subcomponent 1.2: Rehabilitation of district roads (US$26.25 million). • RTDA to initiate the procurement of activities under the subcomponent by September 30, 2024. (c) Subcomponent 1.3: Rehabilitation of bridges (US$12.10 million). • RTDA to initiate the procurement of activities under the subcomponent by September 30, 2024. 8. Component 2: Environment and social risk management, community engagement, and awareness campaigns (US$2.90 million). This component covers (i) Land acquisition and cash compensation costs, (ii) Risk mitigation, community and stakeholder engagement including grievance redress, (iii) Enhancing the capacity of climate resilience committees led by women, and (iv) Road safety measures. • RTDA is currently conducting environmental and social screening for the selected 10 national roads. • Screening report to be submitted to the Bank for review and clearance. • RTDA to conduct Environmental and Social Management Plans (ESMP) where necessary, depending on the outcome of the screening report. • RTDA is preparing the document to guide selection of women for trainings. 1Rusizi – Bugarama – Ruhwa road, Crete Congo Nil – Buhinga road, Rusizi – Buhinga – Tyazo road, Kitabi – Crete Congo Nil road, Tyazo – Karongi – Rubengera road, Rubengera – Gisiza road, Gisiza – Pfunda road, Muhanga – Ngororero – Mukamira road, Kigali – Musanze road and access road to Tumba College, Kigali – Gatuna road. 3 9. Component 3: Implementation support, monitoring, capacity building (US$1.10million). • RTDA is currently preparing a Monitoring and Evaluation plan and data collection tools to track the implementation progress & to monitor job creation. 10. Component 4: Contingent Emergency Response (CERC) (US$0 million). • This component will be activated when necessary. 11. Environmental Risk Management. The overall RECOR project’s Environmental and Social Risk rating is considered substantial. This rating is due to the type and scale of the project that involves the repair and rehabilitation of damaged national and district roads and bridges. Furthermore, the capacity of the Implementing Agency (RTDA) to effectively implement the World Bank’s Environmental and Social Framework (ESF) instruments is assessed as strong and well-established. The proposed RECOR project activities result in an environmental and social risk that potentially affects the nearby biophysical and social environment. To manage these environmental and social risks and impacts emanating from the implementation of the RECOR, the ESF instruments aligned with the WB ESF and national policy will be prepared and disclosed before the commencement of any civil works. 12. The project’s environmental and social framework (ESF) instruments, SEP, ESMF, and ESCP have been prepared and disclosed. As agreed during the project preparation period, RTDA will prepare the required ESF instruments during implementation. In this regard, during the mission, RTDA was advised to conduct environmental and social screening for the selected 10 National Roads under Cohort 1 and submit a screening report to the Bank for review and clearance. Furthermore, given the limited time available for the commencement of civil works, as per the screening assessment result, the mission proposed that RTDA could prepare and implement detailed ESMPs for the selected 10 national roads and bridges under Cohort 1. These ESMPs should adequately capture all the core RECOR project activities as well as auxiliary civil works, mainly focused on soil and water conservation practices that prevent and minimize similar damage during the upcoming rain season and subsequently, including stormwater and drainage management, stabilization of side slopes and bridge embankment, etc. To develop these ESMPs, the mission agreed that RTDA will conduct a screening activity on the selected 10 national roads under Cohort 1 and submit the screening report to the Bank for review and clearance as soon as possible. 13. Social Risk Management: The overall performance of the project's social safeguards is rated satisfactory. The PIU has developed all required RECOR ESF instruments for the preparation stage, including the SEP, ESMF, and ESCP. The final versions of these instruments have been disclosed both on the RTDA website and the Bank's external website. During the project preparation period, it was agreed that the implementing agency (RTDA) would prepare additional required ESF instruments during project implementation. This will follow an environmental and social screening assessment of the selected 10 National Roads to determine which additional instruments are needed as discussed and agreed on during the mission. 14. Significant progress has been made in implementing the agreed actions outlined in the prepared ESCP. The PIU informed the Bank team that all required dedicated project E&S staff have been onboarded at the PIU level as stipulated in the ESCP. 15. The project allocated funds in the budget for expropriation costs under the RAP implementation to compensate for all properties affected by the proposed activities. A total of US$1.7 million from the project funds was designated for expropriation. During the mission, the PIU was advised to conduct a screening assessment of all proposed rehabilitation spots to identify areas requiring additional land acquisition and compensation for other affected properties. Furthermore, the screening report will determine which additional instruments need to be prepared or updated. A compiled report will be shared with the Bank for review, guidance and clearance. 4 16. The PIU also informed the Bank during the mission that upon completion of the screening assessment, grievance redress committees will be established in areas that will be identified given the level of impacts and risks. The Bank will closely monitor social risk management in accordance with identified mitigation measures. 17. Financial Management. Progress has been made in the implementation of actions agreed during the preparation of the project. Based on the assessment conducted, the Financial Management (FM) risk of the project is currently moderate. However, the FM aspects of the other project implemented by RTDA, the Rwanda Feeder Roads Development Project, are exhibiting inadequate interim financial reports (IFRs), lack of internal audit, low budget execution, and adverse opinion on value for money. These gaps are potential risks that could also be noted under this new project once implementation starts. The root cause of these challenges is the failure of the project management to ensure review comments issued by the Bank on IFRs are addressed; lack of internal audit review of project activities and no follow-up of audit recommendations. To remedy this, the RECOR project has its own dedicated FM Specialist who reports directly to the Financial Manager; there will be enhanced budget planning and monitoring systems; project management will engage with the Internal audit team to ensure review and follow-up of audit recommendations. 18. The draft project PIM has been submitted to the Bank for review and the project has been enrolled into the Integrated Financial Management and Information System (IFMIS). A letter has been written to MINECOFIN requesting to open a Designated Account and approval of signatories. However, the counterpart Rwandan Franc operational account was yet to be opened. The project is yet to submit the six-month cashflow projections to the Bank to facilitate the request for an advance. The first project audit report (YE June 30, 2025) for the project is expected to be submitted by December 31, 2025. The internal audit reports will be submitted to the Bank together with the quarterly IFRs. The Finance unit is supported by the RTDA Single Project Implementation Unit (SPIU), and the staffing is adequate. 19. The FY 2024/2025 Annual Work Plan and Budget (AWPB) is under preparation by the project. It should be broken down per quarter to fast-track implementation of project activities. The quarterly budget monitoring/utilization reports should analyze the following: the annual budget vs. actual cumulative expenditure to the reporting date; quarterly budget vs. actual expenditure for the quarter; and Commitments to the reporting date. The activities in the AWPB should be classified per cost category/component and source of funding. The training plan should be submitted to the Bank as part of the AWPB. 20. Procurement. The mission requested RTDA to submit Procurement Plans in STEP and initiate the procurement process as early as possible. As agreed in the PAD, RTDA shall conduct procurement using methods compatible with emergencies as follows: a) For damaged sections located on national paved roads (Cohort 1): Direct contracting through existing maintenance contract of the respective national road, where a contractor is already mobilized. Tender documents are now under preparation by RTDA and the request for quotations will be sent to bidders by August 31, 2024. b) For damaged sections located on national unpaved and district roads and damaged bridges (Cohort 2): using limited competitive bidding to select contractors to speed up the procurement process. c) Selection of consultants or firms for supervision services: Competitive selection methods by Direct RFP are recommended. The contracts for the supervision of civil works are basically time-based contracts, and the selection will follow the Quality and Cost Based Selection (QCBS) method. 21. In line with this approach, RTDA has submitted in STEP 20 procurement activities (10 works and 10 consultancies) worth US$37,135,646 for clearance. These activities are related to the selected 10 national roads under Cohort 1. This submission was cleared by the World Bank in STEP in July 2024. In view of the good progress, the procurement performance is rated Satisfactory. 5 22. Sustainability. The investments made under the project should be preserved. This will primarily be achieved through the climate-resilient design of physical interventions and the necessary post-project maintenance. The mission has underscored the importance of explicitly stating in the tender documents that the design must be climate-resilient, especially resisting heavy rains. RTDA has committed to reviewing all designs before works to ensure that the repaired and rehabilitated infrastructure will withstand the anticipated heavy rainfall in the project area. 23. The mission has also met the Road Maintenance Fund (RMF) to discuss the post-project maintenance of the roads under the project. RMF informed the mission that the maintenance of roads is regularly discussed with RTDA, and funds are made available as needed. RMF assured that the funds for maintaining the project roads will be allocated as required after the project closing date. RMF also informed that there is a planned restructuring of its revenue streams aimed at generating sufficient funds to cover routine maintenance of the expanding road network in Rwanda, taking into account the increasing frequency of extreme rainfall events that cause damage and necessitate more frequent road maintenance, particularly in the North-Western part of the country. Next Steps 24. The next mission is tentatively planned for November 2024. Mission Agreed Actions S/N Actions Responsible Timeline Status Project Implementation 1. Fulfill project effectiveness conditions as per the MINECOFIN July 25, 2024 Completed requirements of the Financing Agreement. Financial Management 2. Submit six months cash flow projection to the Bank. RTDA August 31, 2023 New 3. Submit withdrawal application to the Bank. RTDA August 31, 2023 New 4. Submit FY 2024/2025 budget with allocations per funding RTDA August 25, 2023 New source, expenditure cost allocations per category/ component. Include the Training plan as part of the AWPB. 5. Open the Counterpart Funds bank account in RWF. RTDA August 31, 2023 New 6. Engage with the Internal audit units at the implementing RTDA August 31, 2023 New Entities to ensure project audit coverage in the annual audit plan. Safeguards 7. Prepare a detailed ESMP for rehabilitation core and ancillary RTDA August 31, 2023 New activities of selected 10 national roads under Cohort 1 and submit it to the Bank for review and clearance. 6 Annex 1: Persons Met and Mission Members 1.1 Officials Met Name Ministry/Organization Title Government Officials Fidele Abimana MININFRA Permanent Secretary Theogene Dusabumuremyi MININFRA Ag. Director General in Charge of Transport Janvier Twagirimana MININFRA Green and Inclusive Mobility Coordinator Francois Gihoza Mivugo RTDA SPIU Coordinator Naphtal Ntirenganya RTDA Program Manager Wilberforce Kusasira RTDA Program Manager, Compliance and Safeguards Ritah Umubyeyi RTDA Road Rehabilitation Specialist, Project Coordinator Emerthe Uwababyeyi RTDA Monitoring & Evaluation Specialist Jean Pierre Gahamanyi RTDA Environmental Specialist Yoel Murokore RTDA Ag. Social Safeguards Specialist Jacqueline Mukamwezi RTDA Gender Specialist Thierry Twagiramungu RTDA Procurement Specialist Anaclet Niyonsaba RTDA Financial Management Specialist Ishimwe Aubin RMF Technical Director Jean de Dieu Ndikumana RMF Monitoring & Evaluation Senior Engineer 1.2 WB Mission Members Name Title Specialization Aguiratou Savadogo-Tinto Sr. Transport Specialist, Task Team Leader Transport Engineering Solange Mizero Transport Specialist, Co-Task Team Leader Transportation Engineering & Economics Sreenivas Devarakonda Sr. Procurement Specialist Procurement Yacob Wondimkun Endaylalu Sr. Environmental Engineer Environmental Risk Managment Jacqueline Bugunya Sr. Financial Management Specialist Financial Management Alexis Dushimire Hategekimana Transport Specialist Transportation Engineering & Economics Bedilu Amare Reta Environmental Specialist Environmental Management Chantal Umulinga K. Social Safeguards Development Specialist Social Development Willy Niyonteze Procurement Specialist Procurement Guillaume Gatera Field Coordinator DIME Yvette Umutoni Team Assistant Core Services 7 Annex 2: Results Framework Indicator Definition/description Frequency Data source Baseline Actual Target Remark PDO Outcome Indicators PDO outcome 1: Restored connectivity in areas of Rwanda affected by floods and landslides Indicator 1. Number of people that The total number of people Annual Monitoring 0 0 2,300,000 benefit from improved access to that benefit from improved Consultant progress sustainable transport infrastructure and access to sustainable reports approved by services (disaggregated by gender) transport infrastructure and RTDA (Number) services disaggregated by gender. Indicator 2. Restored access to sectors The total number of districts Annual Monitoring 0 0 6 (number of sectors accessible due to accessible due to roads and Consultant progress roads and bridges rehabilitated) bridges rehabilitated. reports approved by (Number) RTDA Indicator 3. Restored access to socio- The total number of Annual Monitoring 0 0 10 economic infrastructure (number of schools, health centers, Consultant progress schools, health centers, markets markets accessible due to reports approved by accessible due to roads and bridges roads and bridges RTDA rehabilitated (Number) rehabilitated. PDO outcome 2: Improved resilience of damaged transport infrastructure Indicator 1. Number of critical The total number of critical Annual Monitoring 0 0 15 embankments, bridges, culverts embankments, bridges, Consultant progress reinforced in the affected culverts reinforced in the reports approved by districts/sectors with climate resilient affected districts/sectors RTDA measures for adaptation and mitigation with climate resilient (Number) measures for adaptation and mitigation. Intermediate Indicators Component 1: Rehabilitation/repair of damaged transport infrastructure in a resilient and safe manner IR Indicator 1: Number of kilometers of The total length of national At the start and Monitoring 0 0 380 roads rehabilitated in a climate resilient road rehabilitated in a after Consultant progress manner (Kilometers) climate-resilient manner completion of reports approved by 8 Indicator Definition/description Frequency Data source Baseline Actual Target Remark under the project the works RTDA IR Indicator 2. Districts roads The total length of district At the start and Monitoring 0 0 130 (Kilometers) roads rehabilitated in a after Consultant progress climate-resilient manner completion of reports approved by under the project (in the works RTDA kilometers) IR Indicator 3. National roads The total length of national At the start and Monitoring 0 0 254 (Kilometers) roads rehabilitated in a after Consultant progress climate-resilient manner completion of reports approved by under the project (in the works RTDA kilometers) IR Indicator 4. Number of brigdes The total number of At the start and Monitoring 0 0 20 rehabilitated (Number) bridges rehabilitated in a after Consultant progress climate-resilient manner completion of reports approved by under the project the works RTDA (Number) IR Indicator 5. Employment generated Number of workers At the start and Monitoring 0 0 100 under rehabilitation works engaged by contractors for after Consultant progress (Disaggregated by gender) (Number) the rehabilitation and completion of reports approved by upgrading of the project the works RTDA (Disaggregated by gender) Component 2: Environment and social risk management, Community Engagement and awareness campaign IR Indicator 1. Number of road safety The indicator provides At the start and Monitoring 0 0 15 training and awareness campaigns information on the number after Consultant progress conducted for school children, of road safety training and completion of reports approved by motorbike and truck drivers, local awareness campaigns the works RTDA communities, and other road users in conducted for school the project area (Number) children, motorbike and truck drivers, local communities, and other road users in the project area IR Indicator 2. Survey reports on citizen To confirm whether the At the start and Monitoring N N Y engagement available (Yes/No) reports on citizen after Consultant progress engagement for the completion of reports approved by project implementation the works RTDA are available IR Indicator 3. Percentage of women in This indicator will measure Annual Monitoring 0 0 50 leadership positions in communitarian the percentage of women Consultant progress 9 Indicator Definition/description Frequency Data source Baseline Actual Target Remark structures including on climate in leadership positions on reports approved by resilience committees. (Percentage) climate resilience RTDA committees that will be created under the project Component 3: Implementation support, project monitoring, and capacity building IR Indicator 1. Share of women that find Measure the proportion of After six Monitoring 0 0 16 a job in the road/transport sector six women who can find job months of Consultant progress months after completion of internship six month after the training internship reports approved by (Percentage) completion RTDA IR Indicator 2. Number of staff from Provide the data on staff Annual Monitoring 0 0 20 RTDA, MININFRA and MINEMA who training during the project Consultant progress benefited from capacity building implementation reports approved by trainings (Number disaggregated in RTDA Climate Changes and others) (Number) IR Indicator 3. Number of women Count the number of Annual Monitoring 0 0 16 trained and certified in the use of heavy women trained during the Consultant progress machinery (Number) project implementation reports approved by RTDA IR Indicator 4. Number of women Count the number of Annual Monitoring 0 0 16 participating in internship program women trained during the Consultant progress (Number) project implementation reports approved by RTDA 10 Annex 3: Status of Legal Covenants Finance Description of Covenant Status/Issues Compliance Agreement Review Reference Schedule 1, Complied with Section I G The Recipient shall maintain throughout Project implementation period the Project implementation unit within the Rwanda Transport Development Agency (Single Project Implementation Unit) with resources and Yes composed of key staff, with qualifications, experience and under terms of reference acceptable to the Association as may be further detailed in the Project Implementation Manual No later than twenty-four (24) months after the Effective Date, the Recipient shall, in conjunction with the Association, carry out a mid-term review Not yet due of the Project (the “Mid-term Review”), covering the progress achieved in the implementation of the Project 11