Togo - Burkina Faso - Road Rehabilitation and Transport ......AND TRANSPORT FACILITATION ON THE LOME – CINKANSE- OUAGADOUGOU CU9 CORRIDOR COUNTRY: TOGO/ BURKINA FASO PROJECT APPRAISAL
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Language: English
Original: French
PROJECT: MULTINATIONAL TOGO/BURKINA FASO: ROAD REHABILITATION
AND TRANSPORT FACILITATION ON THE LOME – CINKANSE-
OUAGADOUGOU CU9 CORRIDOR
COUNTRY: TOGO/ BURKINA FASO
PROJECT APPRAISAL REPORT
Date: February 2012
Appraisal
Team
Team Leader:
Team Members
M. NDIAYE DIOP, Transport Engineer, OITC.1
L. EHOUMAN, Socio-Economist, GHFO
J. P. MEGNE EKOGA, Transport Economist, OITC.1
B. YOUGBARE, Infrastructure Specialist, BFFO
P. C. OUEDRAOGO, Procurement Specialist, BFFO
K. ROT-MUNSTERMANN, Resource Mobilization
Officer, ORMU
C. AHOSSI, Regional Procurement Coordinator, ORPF
M. L. KINANE, Environmentalist, ONEC.3
A consultant, Transport Economist,
Regional Director: J. K. LITSE, ORWA
Sector Director : A. OUMAROU, OITC
Sector Division
Manager :
J.K. KABANGUKA, OITC.1
Peer
Reviewers
Messrs. B. TRAORE, Lead IPPF, ONRI.0
P. RUGUMIRE, Transport Engineer, OITC.1
P. MORE NDONG, Transport Engineer, OITC.2
A. BA, Agro-Economist, OSAN.3
A. DIAW, Country Programme Officer, ORCE
AFRICAN DEVELOPMENT BANK GROUP
TABLE OF CONTENTS
1 PROJECT STRATEGIC THRUST AND RATIONALE ..................................................... 1 1.1 Project Linkages with Regional and National Strategies and Objectives .......................................... 1 1.2 Rationale for Bank’s Involvement ......................................................................................................... 1 1.3 Donor Coordination ................................................................................................................................ 2
2 PROJECT DESCRIPTION ..................................................................................................... 3 2.1 Project Objectives and Components ..................................................................................................... 3 2.2 Technical Solution Adopted and Alternatives Explored ..................................................................... 4 2.3 Project Type ............................................................................................................................................ 5 2.4 Project Cost Estimates and Financing Arrangements ......................................................................... 5 2.5 Project Area and Beneficiaries .............................................................................................................. 8 2.6 Participatory Approach to Project Identification, Design and Implementation ............................... 8 2.7 Bank Group Experience and Lessons Reflected in Project Design ..................................................... 9 2.8 Key Performance Indicators ................................................................................................................ 10
3 PROJECT FEASIBILITY ..................................................................................................... 10 3.1 Economic and Financial Performance ................................................................................................ 10 3.2 Environmental and Social Impacts ...................................................................................................... 11
4 PROJECT IMPLEMENTATION ........................................................................................ 14 4.1 Implementation Arrangements ............................................................................................................ 14 4.2 Monitoring and Evaluation .................................................................................................................. 16 4.3 Governance ............................................................................................................................................ 17 4.4 Sustainability ......................................................................................................................................... 18 4.5 Risk Management ................................................................................................................................. 19 4.6 Knowledge Building .............................................................................................................................. 20
5 LEGAL FRAMEWORK ....................................................................................................... 20 5.1 Legal Instrument ................................................................................................................................... 20 5.2 Conditions Associated with Bank’s Involvement ............................................................................... 20 5.3 Compliance with Bank Policies ............................................................................................................ 21
6 RECOMMENDATION.......................................................................................................... 21
APPENDIX I: COMPARATIVE SOCIO-ECONOMIC INDICATORS OF TOGO AND BURKINA FASO
APPENDIX II: TABLES OF BANK PORTFOLIO IN TOGO AND BURKINA FASO
APPENDIX III: MAJOR RELATED PROJECTS FINANCED BY THE BANK AND OTHER DEVELOPMENT
PARTNERS IN TOGO AND BURKINA FASO
APPENDIX IV: MAP OF PROJECT AREA
LIST OF TABLES
No. TITLE Page
Table 2.1 - Project Components ......................................................................................................................................................... 3 Table 2.2 - Alternative Solutions Explored and Reasons for Rejection ................................................................................................. 5 Table 2.3 - Project Cost Estimates by Component (in UA million) ....................................................................................................... 5 Table 2.4 - Project Sources of Financing (in UA million) ..................................................................................................................... 6 Table 2.5 - Project Cost by Expenditure Category (in UA million) ....................................................................................................... 7 Table 2.6 - Expenditure Schedule by Component (in UA million) ......................................................................................................... 7 Table 2.7 -Expenditure Schedule by Source of Financing (in UA million) ............................................................................................ 7 Table 3.1 -Summary Economic Analysis ............................................................................................................................................. 11
i
Currency Equivalents
November 2011
UA 1 = USD 1.58591
601 1,55333
UA 1 = EUR 1.13271 UA 1 = CFAF 743.009
Fiscal Year
1 January - 31 December
Weights and Measures
1 metric tonne = 2204 pounds
1 metre (m) = 3.28 feet
1 millimetre (mm) = 0.03937 inch
1 kilometre (km) = 0.62 mile
1 hectare (ha) = 2.471 acres
Acronyms and Abbreviations
ADB : African Development Bank
AADT : Annual Average Daily Traffic
ADF : African Development Fund
CPF : Women’s Empowerment Centre
CSP : Country Strategy Paper
CST : Sector and Thematic Commission
CTM : Joint Technical Committee
CTS
CU9
:
:
Blood Transfusion Centre
Community No. 9
DCPTT : Department for WAEMU Community Planning, Transport and Tourism
DGR : General Directorate of Roads
DGSCN : General Directorate of National Statistics and Accounts
DGTP : General Directorate of Public Works
EBID : ECOWAS Bank for Investment and Development
ECA : Economic Commission for Africa
ECOWAS : Economic Community of West African States
ERR : External Rate of Return
EU : European Union
FER : Road Maintenance Fund
FSF : Fragile States Facility
ILO : International Labour Organization
INSD : National Institute of Statistics and Demography
IsDB : Islamic Development Bank
KfW : Kreditanstalt fürWiederaufbau(Reconstruction credit institution)
LI
HT/HD
:
:
Labour Intensive
Exclusive of Tax/Exclusive of Customs Duty
MID : Burkina Faso Ministry of Infrastructure and Road Development
MTPT : Ministry of Public Works and Transport
ii
MTS : Bank’s Medium-Term Strategy for 2008-2012 Period
NPV : Net Present Value
OPA : Observatory of Abnormal Practices
PA
: Project Area
PACITR : Community Road Transport Infrastructure Action Programme
PAL : Lomé Port Authority
PIMU
UTA
:
:
Project Implementation Monitoring Unit
Agricultural Transformation Unit
PPP : Public Private Partnership
PRSP : Poverty Reduction Strategy Paper
RBCSP : Results-Based Country Strategy Paper
RN1 : Highway No. 1
SAFER
SCADD
: Société Autonome de Financement de l’Entretien Routier
Accelerated Growth and Sustainable Development Strategy
STD : Sexually Transmitted Disease
UA : Unit of Account
UNDB
UNDP
: United Nations Development Business
United Nations Development Programme
UNFPA : United Nations Fund for Population Activities
Veh/d Vehicles per day
VOC : Vehicle Operating Cost
WADB
BTP
:
:
West African Development Bank
Public Works and Civil Engineering
WAEMU : West African Economic and Monetary Union
WHO : World Health Organization
iii
PROJECT INFORMATION SHEET
Client Information Sheet
Recipients/Borrowers : Togo and Burkina Faso
Executing Agencies : (i) Ministry of Public Works in Togo, through the General
Directorate of Public Works;
(ii) Ministry of Infrastructure and Road Development in Burkina
Faso, through the General Directorate of Highways
(iii) West African Economic and Monetary Union (WAEMU)
Commission, through the Department for WAEMU
Community Planning, Transport and Tourism, which will
ensure overall project monitoring at the regional level and
monitoring of the implementation of the transport
facilitation component
Financing Plan
Source of Financing
Amount in UA Million*
Instrument Togo
Burkina
Faso Total
ADF Loan (Country allocation) 6.33 6.33 Project Loan
ADF Grant (Country allocation) 10.81 26.67 37.48
Institutional and Rehabilitation
Support
ADF Loan (allocation for regional
operations) 11.36
11.36 Project Loan
ADF Grant ( allocation for regional
operations) 19.42 40.00
59.42
Institutional Support and
Rehabilitation
FSF Grant to Togo 21.50 21.50
Institutional Support and
Rehabilitation
ADF Loan (from cancellation) 0.105 2153 21.64 Project Loan
ADF Grant (from cancellation)
17.93 17.93
Institutional Support and
Rehabilitation
IsDB 9.46 9.46 Project Loan
KFW 7.92 7.92 Grant
EU/African Trust Fund Grant 1.03 1.03 2.06 Grant
Private operators 2.58 1.03 3.60 Equity capital
WADB Loan 13.42 10.54 23.95 Project Loan
EBID Loan 7.77 5.78 13.56 Project Loan
WAEMU 0.48 0.46 0.93 Grant
UNFPA Grant 0.17 0.17 Grant
GOVERNMENT of Togo 10.50 10.50 Investment Budget
GOVERNMENT of Burkina Faso 2.66 2.66 Investment Budget
TOTAL 114.93 135.54 250.47
* At exchange rate of: UA 1 =CFAF 743.009
iv
ADF and FSF Key Financing Information
Loan/Grant Currency Unit of Account (UA)
Interest Type Not applicable
Interest Rate Margin Not applicable
Service Charge for ADF Loans 0.75% per annum on disbursed but unrepaid amount
Commitment Charge for ADF Loans 0.5% on undisbursed loan amount, commencing 120 days
after signature of Loan Agreement
Other Charges Not applicable
Tenor (ADF Loans) 50 years
Grace Periods and Repayment of ADF
Loans
10 years
FRR, NPV (baseline scenario) Not applicable
ERR, NPV (baseline scenario) 27% and CFAF 284 billion for the entire project
Duration – Main Milestones (expected)
Activities (Month, Year)
Concept Note Approval January 2012
Project Approval June 2012
Completion December 2016
Last Disbursement December 2017
Last Repayment June 2062
v
EXECUTIVE SUMMARY
Project Overview
This project concerns the Lomé-Ouagadougou CU9 Road Corridor which forms part of the
priority highways of the West African Economic and Monetary Union (WAEMU) community
road network. The nearly 975 km-long corridor comprises road sections with different levels
of service. The project consists in the rehabilitation of 303 km of road in very bad or bad
condition, with 150 km in Togo and 153 km in Burkina Faso, as well as the improvement of
transport facilitation along the corridor. The expected outcomes are increased transit traffic
and trade, reduced general transportation costs, improved road safety, and the creation of jobs
for youths and women.
The project will be implemented in five (5) years, and its total cost is estimated at UA 250.47
million (exclusive of tax and customs duty), including provision for physical contingencies
and price escalation. The Bank Group (ADF and FSF) will contribute UA 175.66 million. The
other donors are EBID, WADB, IsDB, KFW, UNFPA, EU/Africa Trust Fund, private
operators, WAEMU and the two Governments. In view of the regional nature of the project,
its economic and social benefits will accrue directly or indirectly to all users of the corridor,
and the inhabitants of the direct and extended PA which covers Togo and a large part of
Burkina Faso, Mali and Niger. The beneficiary population participated in the project design
and made a technical and financial contribution to the construction, management and
maintenance of some related infrastructure.
Needs Assessment
The Lomé-Cinkansé-Ouagadougou CU9 Corridor is the backbone of Togo’s road network,
and the only road linking all the regions of the country. The corridor is also very important for
the sub-region’s landlocked countries, particularly Burkina Faso, because the Lomé Port
Authority (PAL) is currently the primary transit port for its overseas trade. The corridor is in
quite an advanced state of degradation with 38% of its stretch in a very bad or bad condition
and 13% in a poor condition. Since the maintenance thresholds of some sections of the
corridor have been exceeded, the urgent rehabilitation of this road is therefore the only
possible alternative. Similarly, efforts undertaken to make Lomé Port attractive and
competitive should be sustained by eliminating obstacles to traffic on the corridor.
Value added for the Bank
The Bank’s involvement is justified by the fact that: (i) this project will help to achieve the
objective of its Regional Integration Strategy (2009-2012) which consists in providing
assistance in the form of investment, technical assistance and expertise to countries, so as to
facilitate the construction of priority regional infrastructure; (ii) the Bank’s support will
strengthen its last operations on this corridor (Lomé-Notsé Road Project in Togo implemented
before the crisis of the 2000s) and the Bank’s private sector operation in 2011 as part of the
extension of PAL’s container terminal; (iii) it has solid experience in similar regional projects
in Africa in general and in West Africa in particular. The project will therefore enable Togo to
fully play its vital role as inter-State trade road corridor for hinterland countries (Burkina
Faso, Mali and Niger).
vi
Knowledge Management
To really draw lessons from this project, a monitoring-evaluation mechanism will be put in
place by the executing agencies through the Directorates of Statistics which will be
responsible for monitoring the project and PRSP indicators. Indeed, the definition of key
impact indicators before project start-up and impact assessment at the end of the project will
help to generate useful data on the outputs and outcomes. The lessons, experiences and
knowledge to be drawn from the implementation of this project will be managed from a
database in the executing agencies and WAEMU, and will be disseminated in annual reports
and on the Bank’s Website. The database will effectively facilitate management of all
knowledge acquired during the implementation of project activities.
vii
Results-Based Logical Framework
Country and Project Name: Togo/Burkina Faso - Road Rehabilitation and Transport Facilitation on the Lomé-Cinkansé-Ouagadougou CU9 Corridor
Project goal: Support economic and social development and regional integration
OUTCOME CHAIN
PERFORMANCE INDICATORS MEANS OF
VERIFICATION
RISKS/
MITIGATION MEASURES Indicator
(including ISC) Baseline Case Target
IMP
AC
T
Contribute to the efficiency of
the road transport sub-sector so
as to support implementation
of the Regional Economic
Programme (REP), economic
and social development, and
regional integration in
WAEMU zone
Volume of intra-community
trade in WAEMU zone
10 million tonnes in 2011 19 million tonnes in 2016, representing a
7% annual growth
Statistics prepared by
WAEMU
OU
TC
OM
ES
1. Outcome 1 : Increased
transit traffic on the corridor
Volume of traffic on the
corridor transiting through
PAL to or from Burkina
Faso, Niger and Mali
1.56 million tonnes in
2011
1.91 million tonnes in 2016, or 4%
increase per year
Statistics prepared by the three
hinterland countries (Ministries
in charge of transport,
Shippers’ Councils and
Carriers’ Unions of Burkina
Faso, Mali and Niger), Lomé
Port Authority and project
impact monitoring-evaluation
reports
Risks:
(i) The juxtaposed border checkpoint at
Cinkansé is not fully operational; (ii)
application of axle-load regulations in the two
States is not effective; (iii) persistent
harassment on the corridor due mainly to lack
of a single security for transit operations; and
(iv) delay in upgrading the existing road
funds in both countries to second generation
road funds with sufficient autonomous
resources.
viii
OUTCOME CHAIN
PERFORMANCE INDICATORS MEANS OF
VERIFICATION
RISKS/
MITIGATION MEASURES Indicator
(including ISC) Baseline Case Target
2. Outcome 2 : Reduced
general transportation costs on
the Lomé- Ouagadougou CU9
corridor
2.1. Average transit time on
the Lomé – Ouagadougou
corridor by heavy vehicles
2.2. Border crossing time
2.3. Average vehicle
operating cost (light-duty
and heavy vehicles)
2.4. Transit documents
processing time
2.5. Number of check points
2.1. 6 days in 2011
2.2. 2 days in 2011
2.3. In 2011: VOC LDV
= CFAF 219 /km and
VOC HV = CFAF
1.078/km
2.4. 2 days in 2011
2.5. 11 check points
from Ouagadougou to
Lomé and 19 from Lomé
to Ouagadougou
2.1. 3 days from 2016
2.2. 3 hours from 2016
2.3. In 2016 : VOC LDV = CFAF 171
/km and VOC HV = CFAF 784 /km
2.4. 2 hours in 2016
2.5. In 2016, the number of check points
is reduced by 70% minimum compared to
2011
Statistics prepared by the three
hinterland countries (Ministries
in charge of Transport,
Shippers’ Councils and
Carriers’ Unions of Burkina
Faso, Mali and Niger), Lomé
Port Authority and WAEMU
Observatory of Abnormal
Practices.
Transport Facilitation impact
monitoring-evaluation reports
Mitigation Measures
These risks will be mitigated by: (i) the fact
that WAEMU and both States have
undertaken to adopt appropriate measures to
make the check point operational through the
newly established ad hoc commission
comprising all stakeholders; (ii) the fact that
axle-load control is now carried out upstream
by installing axle scales at all loading points
(before exiting Lomé Port, the cement
factory, cargo areas, etc.); (b) installing axle
scales across all West African countries; (c)
securing shipments by accelerating
containerization and sealing which prevent the
modification of shipments during transit; and
(d) management of weighing stations
entrusted to autonomous entities with a
performance contract; and (e) monitoring of
the application of regulations by commissions
in which development partners are
stakeholders; (iii) the regular sensitization of
policy-makers through OPA reports, the goods
tracking and radio-communication system and
the interconnection of customs data processing
systems provided for in the project, as well as
the institution of a single security for transit
operations ; and (iv) the fact that both
countries have undertaken to establish second
generation road funds for which the budgetary
allocation from taxes on petroleum products is
yet to be transformed into a levy with a
mechanism for the direct collection and
payment of resources from the levy into the
3. Outcome 3 : (i)
Mechanisms for the creation of
jobs for youths are
established ; ; and (ii) women’s
living conditions are
improved ; and (iii) improved
accessibility
3. (i) Percentage of the
revenue of Road
Maintenance Funds
allocated each year for non-
mechanized routine
maintenance contracts
signed with youth EIGs or
associations ; (ii) number of
temporary jobs created; (iii)
income generated by
women and percentage of
products and goods
transported on foot by
women ; (iv) percentage of
people in the rural areas of
the PA living two
kilometres away from a
road fit for traffic
3. In 2011 (i) 0% of RF
revenue ; (iii) 30% of
people in the rural areas of
the PA live at two-
kilometre walk from a road
fit for traffic
3. As from 2016: (i) at least 3% of RF
resources are allocated each year for non-
mechanized routine maintenance
contracts signed between RFs and youth
EIGs or associations ; (ii) 500 temporary
jobs are created ; (iii) women’s incomes
increase by at least 20% ; (iv) 50% of
people in the rural areas of the PA live
two kilometres away from a road fit for
traffic
Statistics prepared by the Road
Funds, Ministries of Women’s
Affairs and women’s
associations,
Socio-economic impact
monitoring-evaluation reports
ix
OUTCOME CHAIN
PERFORMANCE INDICATORS MEANS OF
VERIFICATION
RISKS/
MITIGATION MEASURES Indicator
(including ISC) Baseline Case Target
4. Outcome 4 : Road accidents
and time taken to provide care
to casualties on the corridor are
reduced
4 Time taken to treat road
accident victims
4 As from 2016, 25% reduction in the
time taken to treat casualties
Statistics prepared by Road
Safety Services of both
countries
Road Fund account. The establishment of this
levy mechanism is being monitored by the
development partners of both countries, and
will be a condition attached to this project.
OU
TP
UT
S
Output 1 : Atakpamé – Blitta -
Aouda and KoupélaBittou –
Cinkansé-Togo Border road
sections are rehabilitated
Road sections rehabilitated N/A
1. (a) 300 km (of which 150 in Burkina
Faso and 150 in Togo) ; (b) 3 km of
Mogandé access roads and 5 km of
paved road network in Tenkodogo in
Burkina Faso
Project appraisal, supervision,
progress, monitoring-
evaluation, audit, completion
and impact assessment reports
Risks:
(i) increase in the cost of works in relation to
the estimated budget; (ii) long procurement
deadlines and delays; (iii) delays in the
mobilization and disbursement of counterpart
contributions by the countries; (iv) fiduciary
risk due to the absence of an accounting
software and delay in recruiting an external
auditor
Mitigation Measures
These risks will be mitigated by: (i) the
availability of comprehensive implementation
studies updated in 2011, a realistic cost
estimate based on similar work contracts
launched between 2010 and 2011, sufficient
provision for price escalation, Advance
Procurement Actions that will reduce the time
between the conduct of studies and the start-
up of works, and measures taken to ensure
broad competition during bidding; (ii)
provision of support to the executing agencies
in both countries by a technical assistance that
will provide a procurement expert in good
time and close assistance by the Bank’s
offices in both countries to the executing
Output 2 –
1. Related works carried out
1. (i) Rural road section
and bridge; (ii) number and
surface area of rest areas and
parking lots; (iii) number of
socio-economic facilities
built or rehabilitated; (iv)
number of interim transport
modes, and agricultural and
fish products processing units
provided; and (v) number of
temporary jobs created
N/A
2. (i) 42 km in Burkina Faso and 65 km
and a 120m-long bridge at Alemondji in
Togo; (ii) 10 ha of rest area for drivers
on the corridor in Burkina Faso and 10
ha of parking lot extension at Adétikopé
for the Port in Togo; (iii) 2 CPFs in
Burkina and 2 CPFs in Togo, 10
information stands with 5 in each
country and 1 market at Anié in Togo;
(iv) two blocks with ambulance
equipped at Dapaong and Sokodé in
Togo and one block and 2 ambulances
equipped at Tenkodogo and Zorgho; and
(v) lots of small interim transport modes
and UTA for women’s groups in
Burkina Faso; 500 jobs created
Output 3 : Sensitization on
road safety, environmental
protection, and HIV/AIDS and
compliance with axle load
regulations carried out
Number of people
sensitized on HIV/AIDS,
environmental protection,
and road safety
N/A
3. At least 1000 people are sensitized by
2016
x
OUTCOME CHAIN
PERFORMANCE INDICATORS MEANS OF
VERIFICATION
RISKS/
MITIGATION MEASURES Indicator
(including ISC) Baseline Case Target
Output 4 : Feasibility studies
on the rehabilitation of Lomé-
Blitta railway line and a dry
port at Bllitta in Togo,
feasibility studies on the
Ouagadougou dry port in
Burkina Faso ; studies on the
development of public works
sector SMEs in Burkina Faso
and Orodara-Kpuéré (361km)
road in Burkina Faso and
studies on PPP activities to be
carried out under the project
are conducted
Final study reports
N/A
4. (i) 5 study reports are validated agencies will likely mitigate these risks; (iii)
the fact that since Burkina Faso is eligible for
full financing (100%) of the project cost
(exclusive of tax and custom duty) by the
Bank, its counterpart contribution to
components to be funded by ADF was
reduced to bearing the operating costs of the
Project Implementation Monitoring Unit since
the country is eligible for 100% project
financing by the Bank. Concerning Togo, the
expected total counterpart contribution for the
entire project of about CFAF 7.6 billion, or
about CFAF 2 billion annually, is bearable
when compared to CFAF 2.3 billion spent
each year on the maintenance of road sections
of the corridor. To secure counterpart
resources, the opening of a counterpart
contribution account and its regular
replenishment with resources is a condition for
this project; (iv) the project provides for the
procurement of accounting software and
training in its use, as well as the reinforcement
of PIMUs by accountants and bookkeepers.
Output 5 : The training of
youths in road maintenance
through training worksites is
carried out
Number of youths trained in
road maintenance
0 5. (ii) At least 200 youths trained in road
maintenance
Output 6 : A system for real
time tracking by GPS
technology and radio-
communication of the
movement of cargo in transit is
established
Coverage in km of the cargo
tracking and radio-
communication system
0 km 6. At least 1400 km of Lomé-
Ouagadougou-Niamey highway are
completely covered by a single cargo
tracking and radio-communication
system installed on the corridor
Output 7 : Customs capacity
built
(i) Rate of computerization
of customs operations; (ii)
customs data processing
systems of both countries are
interconnected and improved
to cover transit; and (iii)
number of customs officers
and stakeholders of the
transport system trained.
(i) The customs data
processing systems of both
countries are not yet
interconnected
7. (i) All customs documents on transit
on the corridor are processed by
computer; (ii) Migration to ASYCUDA
customs data processing systems and
the interconnection of the customs data
processing systems of Togo and Burkina
Faso are effective, and double customs
declarations at the border are
eliminated; (iii) 300 customs officers as
well as customs clearing agents and
operators of the transport sector are
trained on the use of ASYCUDA
xi
OUTCOME CHAIN
PERFORMANCE INDICATORS MEANS OF
VERIFICATION
RISKS/
MITIGATION MEASURES Indicator
(including ISC) Baseline Case Target
Output 8: Capacity of
executing agencies
strengthened and project
monitoring-evaluation and
auditing carried out
(i) Number of equipment;
(ii) number of support
experts; and (iii) number of
reports produced and
validated
(i) 5 computer hardware sets and 4
vehicles procured for each executing
agency and 5 computer hardware sets for
project monitoring officers of the project
donors at DGCOOP in Burkina Faso; (ii)
2 long-term experts and short-term
experts made available to each executing
agency; (iii) 4 financial audit reports per
country; 2 technical audit reports per
country; a baseline case report and an
impact report per country at project
completion, a transport facilitation
baseline case report and an impact report
at project completion are produced
AC
TIV
ITÉ
S C
LÉ
S
COMPONENTS
1.Road Works
2. Related Works
3. Support for Transport and Regional Trade Facilitation
4. Support for the Transport Sector
5. Support for Project Management
RESOURCES IN UAMILLION
Road Works: 178.04
Related Works: 14.51
Support for Transport Facilitation: 12.01
Support for the Transport Sector: 5.97
Support for Project Management: 2.16
Provision for Physical Contingencies and Price Escalation : 37.78
TOTAL RESOURCES: 250.47
xii
Implementation Schedule
1
REPORT AND RECOMMENDATION FROM MANAGEMENT TO THE BOARDS OF
DIRECTORS CONCERNING PROPOSED GRANTS AND LOANS TO TOGO AND BURKINA
FASO TO FINANCE THE PROJECT FOR ROAD REHABILITATION AND TRANSPORT
FACILITATION ON THE LOMÉ-CINKANSE-OUAGADOUGOU CU9 CORRIDOR
Management submits the following report and recommendation concerning a proposal for the award
of: (i) a UA 30.23 million ADF grant to Togo and a UA 84.60 million grant to Burkina Faso; (ii) a UA
17.80 million ADF loan to Togo and a UA 21.53 million loan to Burkina Faso; and (iii) a UA 21.50
million FSF grant to Togo to finance the Project for Road Rehabilitation and Transport Facilitation on
the Lomé-Cinkansé-Ouagadougou CU9 Corridor.
1 PROJECT STRATEGIC THRUST AND RATIONALE
1.1 Project Linkages with Regional and National Strategies and Objectives
This project falls within the WAEMU transport sector strategy one of whose key missions is to facilitate
the promotion of inter-State land transportation corridors, in particular sea access roads for the three
landlocked WAEMU Member States. Hence, it is included in the Community Road Transport
Infrastructure Action Programme (PACITR) and is therefore part of the Union’s eleven priority
corridors. The WAEMU Commission has financed the technical, economic and environmental
feasibility studies on the Atakpamé-Kara road section on the corridor in Togo, as well as the
construction of the Juxtaposed Check Point at Cinkansé in Burkina Faso, at the border with Togo. The
project is also in line with the ECOWAS Transport Facilitation Programme, which seeks to foster cross-
border movement.
The project is also consistent with Togo’s Poverty Reduction Strategy Paper one of whose priority
thrusts is operations in the transport sector and more precisely the Lomé-Cinkansé (RN1) corridor. It is
in line with Burkina Faso’s Accelerated Growth and Sustainable Development Strategy (SCADD)
which mainly seeks to open up the country by developing road infrastructure and improving the
transport logistic chain. The project is also consistent with the transport sector visions and policies of
both countries and the Regional Economic Communities, namely WAEMU and ECOWAS.
1.1.3 The project is consistent with the Bank’s Strategy Paper for Togo (CSP 2011-2015), one of
whose two pillars is “economic infrastructure development”. This pillar’s objective is to more
effectively connect economic zones within Togo and the Togolese economy to the West African
regional economic space so as to boost economic growth. This project is also fully in line with
Burkina Faso’s 2012-2016 CSP whose first pillar is “the development of core economic infrastructure
to boost growth”
1.2 Rationale for Bank’s Involvement
The Bank’s involvement is justified by the fact that: (i) the project is consistent with its medium-term
strategy (MTS) for the 2008-2012 period which prioritizes infrastructure while also laying emphasis on
regional integration and the fragile States ; (ii) the Lomé-Ouagadougou corridor is one of the major
international highways opening up Burkina-Faso and therefore plays a key role in its economic
development; and (iii) it plays a leading role in the implementation of NEPAD activities and it has many
years of experience in the implementation of regional projects.
2
The Bank’s involvement in the project is also justified by the fact that it is in line with the Bank’s
Regional Integration Strategy Paper (RISP) for West Africa (2011-2015) whose first pillar is
“connection of regional markets” and is included in the RISP indicative programme. This document
indicates that the integration of transport, energy and telecommunication infrastructure services is an
important complement to markets, goods and factors integration policies. The project is also in keeping
with the Programme for Infrastructure Development in Africa (PIDA) because of its importance for
regional integration, its technical and economic feasibility, its preparation which is totally completed
and its impact on the economic development of the area. The project complements the action of
development partners (Accra-Ouagadougou-Bamako, Bamako-Conakry, Bamako-Dakar, etc. corridors)
and WAEMU (Cinkansé, Malanville, etc. PCJ) in the sub-region to strengthen sea access facilities for
landlocked countries (Almaty Agreement).
This project is also backed by ECOWAS and WAEMU letters of support, as well as a joint request by
the Togolese and Burkina Faso Governments. The Bank’s involvement in this project will strengthen its
last actions on the corridor, particularly the Lomé-Notsé Road Rehabilitation Project in Togo before the
crisis in the 2000s and the Bank’s private sector loan in 2011 to extend the container terminal of the
Lomé Port Authority (PAL). It will complement the actions of other donors (China, WADB, EU, etc.)
that funded sections of the corridor and WAEMU which financed the construction of the juxtaposed
border check point at Cinkansé.
1.3 Donor Coordination
In Togo, the authorities established an institutional mechanism for development policy coordination,
monitoring and evaluation (DIPD) in December 2010. Within this context, a formal donor coordination
mechanism for sector growth support infrastructure was established. In the transport sector, Togo has no
sector programme or a formal partner coordination mechanism. The Bank is funding a transport sector
development strategy study which is expected to be completed at end 2012. However, in the meantime,
the Bank, which was designated as lead Technical and Financial Partner in the sector and Vice-Chair of
the Infrastructure Sector Committee, is in regular contact with all the development partners. The Bank’s
Office in Togo, which played an active role in mobilizing co-financiers (EBID and WADB), will help to
strengthen coordination.
In Burkina Faso, aid is coordinated through the General Directorate of Cooperation within the Ministry
of the Economy and Finance. In the transport sector, coordination is ensured through the Transport
Sector Programme and periodic coordination meetings between donors in the sector. TFPs active in
Burkina Faso are organized around a troika, which acts as an interface with the Government for dialogue
on the Accelerated Growth and Sustainable Development Strategy (SCADD). As regards infrastructure,
the theme “Economic Infrastructure” of the Sector and Thematic Commission (CST) serves as a sector
consultation framework, and the proximity of the Bank’s Office in Burkina Faso will help to strengthen
coordination.
In WAEMU, coordination is carried out through the Regional Economic Programme and Community
Infrastructure and Road Transport Steering Committees of Member States. This second Committee
comprises the representatives of the transport system stakeholders of Member States and donors in the
sector. In addition, for the implementation of this project, a Joint Technical Committee will be set up,
3
and donors will, as at project appraisal, undertake joint supervision and mid-term review missions.
2 PROJECT DESCRIPTION
2.1 Project Objectives and Components
The present situation is as follows: (i) 38% of the corridor road is in a bad or very bad condition ; (ii) the
juxtaposed border check point at Cinkansé the construction and equipping of which was totally financed
by WAEMU is entrusted, in concession, to a private operator but it is not yet fully operational; (iii) there
are persistent customs controls, despite improvements, because of problems associated with the lack of a
single security for transit operations, the interconnection of the customs data processing systems of both
countries which is not yet effective, and the lack of a GPS goods tracking system (for details on
constraints related to transport facilitation, see Technical Annex A.4).
The project’s objective is to help lift the above-mentioned barriers so as to contribute to the efficiency of
the road transport sub-sector, as well as foster economic and social development and integration in West
Africa. To achieve this objective, the project activities are grouped into five components summarized in
the table below.
Table 2.1: Project Components
No. Component Name Estimated Cost
in UA Million
Component Description
A REHABILITATION OF
THE CORRIDOR
ROADS
209.80 A.1 - In Togo : (i) Rehabilitation of the Atakpamé-Blitta (102
km) and Blitta-Aouda (48 km) road sections;
A.2 - In Burkina Faso: (i) Rehabilitation of the Cinkansé-Bittou-
Koupéla road section (150km) and development of 3 km of
Mogandé access road;
A.3 - In both countries : (i) environmental impact mitigation
measures; (ii) sensitization on STIs-HIV/AIDS, road safety and
compliance with axle load; and (iii) works control and
supervision
B RELATED
FACILITIES
17.09 B.1 - Development of related rural roads in Togo (55 km) and
reconstruction of the 120-metre bridge at Alémondji and its
access roads and in Burkina Faso (42 km);
B.2 - Development of 5 km of paved roads at Tenkodogo in
Burkina Faso
B.3 - Rehabilitation of social infrastructure;
B.4 - Support to women in the form of interim transport
modes and agricultural products processing units;
B.5 - Road safety support, including the construction of rest
areas for drivers on the corridor in Burkina Faso and the
construction of equipped blood transfusion blocks (CTS) in
both countries;
B.6 - Related works control and supervision
C TRANSPORT AND
TRANSIT
FACILITATION
ACTIONS AND
MEASURES
14.16 C.1. Support for the Customs Data Processing System, and
training of customs officers and customs clearing agents of both
countries
C.2. Studies to prepare documents for the establishment of PPPs
under the project
4
C.3. Installation of goods tracking and radio-communication
facilities on the corridor through a PPP
C.4. Support for Lomé Port Authority (Relocation of the parking
lot for used vehicles to Adipoké through PPP) in Togo
C.5. Supply and installation of axle-load scales in both countries
C.6. Control and supervision of road transport and transit
facilitation works in both countries
C.7. Monitoring-evaluation of transport facilitation impacts in
both countries
D INSTITUTIONAL
SUPPORT FOR THE
TRANSPORT SECTOR
7.04 D.1 - Study on the rehabilitation of the Lomé-Blitta railway line
and a dry port at Blitta in TOGO
D.2 - Feasibility study on the Ouagadougou dry port in Burkina
Faso
D.3 - Study on the development of public works and civil
engineering SMEs in Burkina Faso
D.4 - Final design of the Orodara-Kpuéré road (361km) in
Burkina Faso
D.5 - Technical assistance to DGR of MID in Burkina Faso and to
the Ministries of Transport and Public Works of Togo
D.6 - Support for the Youth Employment Creation Programme
E PROJECT
IMPLEMENTATION
MANAGEMENT AND
MONITORING
2.38 E.1 - Project socio-economic impact monitoring-evaluation
E.2 - Technical, road safety, accounting and financial audits
E.3 - Equipping of Executing Agencies
E.4 - Operation of Executing Agencies
E.5 - Operation of the Joint Technical Committee (CTM)
2.2 Technical Solution Adopted and Alternatives Explored
Initial studies on the project roads were conducted between 2006 and 2009, and then updated in 2011. In
Togo, the geometric features of the horizontal alignment of the road were maintained except at the
entrance to the town of Blitta, where they were improved to ensure the safety of users and roadside
dwellers. The road surface will consist of: (i) a sub-base course of an average thickness of 20 cm
obtained by the in situ recycling of the existing pavement plus fill materials and its treatment with
cement; (ii) a 10 cm thick coarse aggregate asphalt base course; and (iii) a 5 cm thick bituminous
concrete coating. Under the project, 55 km of rural roads will be rehabilitated, and the bridge
reconstructed with reinforced concrete at Alemondji with its 10 km of access roads.
In Burkina Faso, the geometric features of the horizontal alignment of the Koupéla – Bittou -
Tenkodogo – Cinkansé –Togo Border road were maintained. The road surface will consist of: (a)
Koupéla – PK 76,00 Section : (i) a sub-base course of an average thickness of 20cm obtained by the in
situ recycling of the existing pavement plus fill materials and its treatment with cement; (ii) an 8 cm
thick coarse aggregate asphalt base course ; and (iii) a 5 cm thick bituminous concrete costing; (b) PK
76,00 to PK 149,328 Section and the 3 km of Mogandé access road: (i) a laterite gravel sub-base course
of an average thickness of 20 cm and its treatment with cement after stripping the existing coating and
base course; (ii) an 8 cm thick coarse aggregate asphalt base course; and (iii) a 5 cm thick bituminous
concrete coating. In Burkina Faso, the project also provides for the construction of 6 concrete bridges
and 5.2 km of pavestone urban roads, as well as the rehabilitation of 42 km of rural roads.
The technical alternative solutions explored and reasons for their rejection are summarized in Table 2.2
5
below.
Table 2.2: Alternative Solutions Explored and Reasons for Rejection
Alternative Solution Brief Description Reason for Rejection
TOGO
Crushed aggregate base course
The base course will be
composed of crushed aggregate
instead of bituminous aggregate
(i) Durability of the pavement system deemed
to be less compared to a bituminous aggregate
base course, especially considering the traffic
comprising mainly heavy vehicles; (ii)
difficulties in in situ implementation of a
homogeneous mixture of the final material; and
(iii) cost margin between the proposed solution
and the alternative solution not very significant
BURKINA FASO
Crushed aggregate base course
The base course will be
composed of crushed aggregate
instead of bituminous aggregate
(i) Durability of the pavement system deemed
to be less compared to a bituminous aggregate
base course, especially considering the traffic
comprising mainly heavy vehicles; (ii)
difficulties in in situ implementation of a
homogeneous mixture of the final material; and
(iii) cost margin between the proposed solution
and the alternative solution not very significant
BURKINA FASO
A 40 cm sub-base course
obtained by treatment of 25 cm
lateritic aggregate on the spot
and 15cm cement-treated
borrow lateritic aggregate
This solution is different from
the one adopted ; a new cement-
treated sub-base course will be
implemented after stripping the
existing coating and base course
2.3 Project Type
This project is an investment operation. Donor operations in transport infrastructure in Togo and
Burkina Faso are generally implemented through this type of operation. Some activities will be
implemented through Public Private Partnership.
2.4 Project Cost Estimates and Financing Arrangements
Project Cost by Component
The overall project cost (exclusive of tax and customs duty), including provision for physical
contingencies and price escalation, is estimated at UA 250.47 million, equivalent to CFAF 185.34
billion, at an exchange rate of UA 1 = CFAF 743.009.
Table 2.3: Project Cost Estimates by Component (in UA million)
Component Foreign
Exchange
Local
Currency Total
% Foreign
Exchange
A – Road Rehabilitation 142.42 35.62 178.04 80.00%
B- Related Facilities 11.61 2.90 14.51 80.00%
C – Transport Facilitation 9.61 2.40 12.01 80.00%
D- Institutional Support for the Transport
Sector 4.78 119 5.97 80.00%
E – Project Management 0.92 1.24 2.16 42.69%
6
Base Cost 169.33 43.35 212.69 79.62%
Provision for physical contingencies 16.89 4.27 21.16 79.81%
Provision for price escalation 13.25 3.37 16.62 79.74%
Total 199.48 50.99 250.47 79.64%
Financing Arrangements
The project will be jointly financed by the Bank (ADF – Togo and Burkina Faso country allocations,
resources from cancelled loans and grants, resources allocated to regional operations and FSF); IsDB,
KFW, WADB, EBID, private operators, EU-Africa Infrastructure Trust Fund, WAEMU, UNFPA and
the Governments of Burkina Faso and Togo, as indicated in Tables 2.4 and 2.5 below. The Bank is in
joint financing with KFW and in parallel financing with the other donors. The EBID and the Bank
appraised the project at the same time. The WADB appraised the project in April 2012 with a view to
presenting it to its Board of Directors before the end of 2012. The IsDB is expected to confirm its
contribution to the financing of the project in November 2012. The WADB loans to both Governments
and, to some extent, those of the EBID, will be subsidized by WAEMU in order to make them more
concessional. Confirmation of mobilization of the financing of other donors is a condition for this
project.
Since Burkina Faso is eligible for 100% project financing by the Bank, its counterpart contribution to
the financing of components funded by the ADF has been reduced to payment of the operating costs of
the Project Implementation Monitoring Unit (for justification see Technical Annex A.4). Togo’s
counterpart contribution to components financed by the Bank in Togo (UA 7.61 million) accounts for
10.94% and will be used in paying the operating costs of the Project Implementation Monitoring Unit,
part of the cost of road works, and compensation expenses. The opening of counterpart contribution
accounts and their regular replenishment with resources from both countries is a condition for
this project.
Table 2.4: Project Sources of Financing (in UA million)
Sources of Financing UA Million
% Foreign Exchange Local Currency Total
ADF GRANT 94.69 20.15 114.84 45.85%
ADF LOAN 32.70 6.62 39.32 15.70%
FSF GRANT 19.68 1.82 21.50 8.58%
IsDB LOAN 8.38 1.08 9.46 3.78%
KFW GRANT 6.34 1.58 7.92 3.16%
EU-AFRICA TRUST FUND 1.64 0.41 2.06 0.82%
PRIVATE OPERATORS 2.88 0.72 3.60 1.44%
WADB 22.18 1.77 23.95 9.56%
EBID 10.84 2.71 13.56 5.41%
WAEMU 0.93 0.93 0.37%
UNFPA 0.14 0.03 0.17 0.07%
Government of TOGO 10.50 10.50 4.19%
Government of BURKINA FASO 2.66 2.66 1.06%
Total 199.48 50,.99 250.47 100%
7
Table 2.5: Project Cost by Expenditure Category (in UA million)
Expenditure Category
UA Million % Foreign
Exchange Foreign Local
Currency Total
A – Goods 2.00 0.50 2.50 80.00%
B –Works 151.80 37.95 189.75 80.00%
C – Services 14.03 3.51 17.54 80.00%
D – Miscellaneous 1.51 1.40 2.90 51.92%
BASE COST 169.33 43.35 212.69 79.62%
Provision for physical contingencies 16.89 4.27 21.16 79.81%
Provision for price escalation 13.25 3.37 16.62 79.74%
COUT TOTAL 199.48 50.99 250.47 79.64%
Table 2.6: Project Expenditure Schedule by Component (in UA million)
Component 2012 2013 2014 2015 2016 Total
A – Road Rehabilitation 0.01 47.25 65.86 57.72 7.19 178.04
B- Related Facilities 2.90 4.35 5.80 1.45 14.51
C – Transport Facilitation 0.32 1.07 4.51 4.17 1.94 12.01
D- Institutional Support for the Transport
Sector 0.73 1.56 2.03 1.48 0.19 5.97
E – Project Management 0.51 0.60 0.36 0.32 0.36 2.16
Base Cost 1.57 53.37 77.12 69.50 11.14 212.69
Provision for physical contingencies 0.16 5.31 7.67 6.91 1.11 21.16
Provision for price escalation 0.12 4.17 6.03 5.43 0.87 16.62
Total 1.85 62.84 90.82 81.85 13.12 250.47
Total in % 0.74% 25.09% 36.26% 32.68% 5.24% 100.00%
Table 2.7: Project Expenditure Schedule by Source of Financing (in UA million)
Sources of financing 2012 2013 2014 2015 2016 Total
ADF GRANT 1.11 31.75 44.13 35.26 2.60 114.84
ADF LOAN 11.79 15.73 11.81 39.32
FSF GRANT 0.13 5.73 7.81 7.04 0.79 21.50
IsDB LOAN 1.89 3.78 3.78 9.46
KFW GRANT 2.38 3.17 2.38 7.92
EU-AFRICA TRUST
FUND 0.41 0.62 0.62 0.41 2.06
PRIVATE OPERATORS 1.44 1.44 0.72 3.60
WADB 4.79 7.19 9.58 2.40 23.95
EBID 2.71 4.07 5.42 1.36 13.56
WAEMU 0.02 0.06 0.33 0.33 0.20 0.93
UNFPA 0.05 0.05 0.03 0.03 0.17
Government of TOGO 0.09 2.44 3.64 3.40 0.93 10.50
Government of
BURKINA FASO 0.10 0.53 0.75 0.97 0.32 2.66
Total 1.85 62.84 90.82 8.85 13.12 250.47
Total in % 0.74% 25.09% 36.26% 32.68% 5.24% 100%
8
2.5 Project Area and Beneficiaries
The corridor extends from the Lomé Port up to Ouagadougou, thus covering National Highway No. 1 in
Togo and National Highway No. 16 in Burkina Faso. The works concerning transport facilitation and
development of related facilities will be carried out along the corridor, that is in the 5 regions of Togo
and in the Centre, Centre-East and Central Plateau Regions of Burkina Faso. Regarding road works, the
project direct impact area (PIA) is located in the Plateaux and Central Regions in Togo, as well as the
Centre-East Region in Burkina Faso. The PIA population covered by the project is 1 993 036
inhabitants, with 1 006 402 women in Togo, and 1 223 956 inhabitants with 649 122 women in Burkina
Faso. Most of the people are women (51%) and especially youths aged less than 30 years (about 70% of
the population) who are hard hit by unemployment and underemployment. However considering the
regional nature of the project, the extended impact area covers Togo and a large part of Burkina Faso,
Mali and Niger.
The incidence of poverty is fairly high in the PIA: the poverty prevalence rate is 77.7% in Central
Region and 56.2% in Plateaux Region in Togo, while it stands at 46.6% in Burkina Faso. Most of the
PIA is located in rural areas, even though some of the places are urban centres. The main economic
activity of the project area is agriculture, which employs about 80% of the working population in both
countries, followed by trade. This predominance of agricultural employment is characterized by
seasonal unemployment and low productivity.
The project will have a significant positive impact on the activities of the PIA population in general and
on those of women and youths, in particular, as it will improve their employability, increase job offers in
the public works and civil engineering sector, strengthen commercial activities, enhance socio-economic
infrastructure accessibility, and reduce travel time and general transportation costs. The most significant
expected positive outcomes are : (i) improvement of transportation conditions and access to basic social
services, markets and production zones for the conveyance of products and goods through roads, road
networks, rural roads and structures rehabilitated by the project ; (ii) better knowledge of best practices
relating to road safety, reproductive health, micro-business management techniques, environmental
safety and risk of the spread of STIs through sensitization campaigns and information kiosks; (iii)
increase in the incomes of youths and women as a result of training and creation of employment
opportunities; (vi) construction of secured marketing infrastructure at Anié which will improve
conditions under which women sell their products; and (vii) better management of road accident victims
as a result of the construction of equipped blood transfusion centres.
2.6 Participatory Approach to Project Identification, Design and Implementation
During the updating of studies in the two countries and Bank preparation and appraisal missions,
participatory meetings were organized in Lomé and Ouagadougou, as well as in the regions crossed by
the road so as to identify the needs and concerns of the beneficiaries. The meetings were organized with
WAEMU, all services of ministries and government agencies operating in the transport sector, the local
population, stakeholders of the transport system, the civil society, donors and development partners
operating in the transport sector. During all the meetings, efforts were made to: (i) collect available
information and data to analyze the sector situation; (ii) collect information on donor operations so as to
avoid duplication and strengthen coordination; and (iii) define the project components based on the
9
needs, strategies and priorities. During project implementation, this collaboration will be pursued,
particularly for the implementation of facilitation measures and related facility works, preparation of
training programmes for youths and women under national employment creation programmes, as well
as for validation of the various study reports. In both countries, the Project Implementation Monitoring
Units (PIMU), control firms and contractors should, depending on their respective prerogatives, enlist
the services of the various stakeholders so as to facilitate implementation and ownership of the project
outcomes.
2.7 Bank Group Experience and Lessons Reflected in Project Design
This project draws on the Bank’s great experience in implementing multinational infrastructure projects,
the main difficulties of which are associated with: (i) the multiplicity of project players who generally
have weak technical and operational capacity; and (ii) country and REC weaknesses in procurement,
mobilization of counterpart contributions and performance monitoring. To remedy these inadequacies,
the project intends to provide support to existing project management units in each country and to the
Joint Technical Committee (CTM) of the project.
The Bank’s active portfolio in Togo, following resumption of cooperation based on the interim strategy
(I-CSP), comprises five projects, including one road project. Lessons learned from the implementation
of the interim strategy include the need to take into consideration the fragile nature of institutions in
formulating and implementing operations in Togo. Furthermore, the scope of challenges to be faced
requires the strengthening of synergies between development partners through formal and more frequent
consultations so as to encourage the country to conduct reforms that would enable the transport sector to
play its role as catalyst for growth and poverty reduction. The Bank has already mobilized financing to
support the Government in developing a transport sector programme. The reports of the study, which are
expected at the end of 2012, will help to establish a more efficient consultation framework for partners
involved in the sector. The design of this project took institutional weaknesses into consideration, and
provided for technical assistance to support the Ministries of Public Works and Transport in
procurement and monitoring of project implementation. The assistance of the Bank’s Country Office
will help to ensure closer project monitoring.
The Bank’s active portfolio in Burkina Faso comprises a total of sixteen operations, including two
national transport and two multinational projects. Lessons learned from completed and ongoing projects
can be summarized as follows: (i) delays in the procurement process; (ii) poor quality of studies; (iii)
delays in the disbursement of counterpart contributions for investments, as well as equipping and
operation of Project Implementation Units; and (iv) dispersal and great mobility of Project Officers. For
this project, the following mitigation measures: (i) technical assistance to support procurement and
implementation monitoring, as well as reinforced monitoring of project progress by the Bank’s Country
Office; (ii) availability of comprehensive implementation studies updated in 2011 and a realistic cost
estimate based on similar construction contracts under execution (in 2010 and 2011) and a provision for
price escalation and physical contingencies during project implementation; (iii) the counterpart
contribution was reduced and its effective mobilization will be followed up ; and (iv) the establishment,
within the DGR, of a Project Monitoring Unit which will be exclusively responsible for the project, and
for which the Bank has given its no-objection opinion on the staff CVs.
10
2.8 Key Performance Indicators
The identified key performance indicators and expected outcomes at project completion figuring in the
results-based logical framework are as follows : (i) volume of intra-community trade in WAEMU Zone;
(ii) volume of traffic on the corridor transiting through PAL to or from Burkina Faso, Niger and Mali ;
(iii) average transit time of the Lomé – Ouagadougou corridor by heavy vehicles, border crossing time,
average vehicle operating cost, transit documents processing time, and number of check points on the
corridor ; (iv) percentage of revenue of Road Maintenance Funds allocated each year for non-
mechanized routine maintenance contracts signed with youth EIGs or associations; (v) number of
temporary jobs created ; (vi) women’s income generated by agricultural produce processing activities
and/or activities initiated following practical training in CPFs; (vii) percentage of people in the rural
areas of the PIA living two kilometres away from a road fit for traffic; and (viii) time taken to treat road
accident victims. The baseline case for these indicators as defined in the logical framework will be
verified, and an evaluation will be conducted at mid-term and at the end of the project by the General
Directorate of Statistics and National Accounts (DGSCN) in Togo, the National Institute of Statistics
and Demography (INSD) in Burkina Faso, and a consulting firm to be recruited by WAEMU to monitor
indicators related to transport facilitation.
Apart from these output and outcome indicators in the logical framework, there are also project
implementation performance indicators which will be monitored. They were retained in line with the
Bank’s institutional performance indicators; they are: (i) deadline for effectiveness and fulfilment of
conditions precedent to the first disbursement of funds; (ii) procurement deadlines; (iii) average project
status indicator (IP); and (iv) disbursement rate trend in relation to the expenditure schedule. These
indicators will be monitored during supervision missions and in the day-to-day management of the
project.
3 PROJECT FEASIBILITY
3.1 Economic and Financial Performance
The economic evaluation was carried out using the HDM IV model based on a cost/benefit analysis
between the without- and with-project situations over a 20-year period, and a 12% discount rate. This
evaluation resulted in economic rates of return (ERR) per road section varying from 24% to 35%, and a
Net Present Value (NPV) varying from CFAF 11 to 58 billion depending on the road section. Details on
each section are provided in the table below. A sensitivity test (a 10% increase in project cost and a 10%
reduction in benefits) shows the ERR varying from 20% to 27% depending on the road section. The
project is therefore economically viable. The table below summarizes the project economic analysis; the
detailed analysis is appended hereto.
11
Table 3.1: Summary Economic Analysis
Economic
Parameters
Analyzed
Atakpamé-
PK54
(Togo)
PK54-
Blitta
(Togo)
Blitta-
PK135
(Togo
PK135-
Aouda
(Togo)
Aouda-
Sokodé-
Kara
(Togo)
Koupéla/
Tenkodo
go
(Burkina
Faso)
Tenko
dogo-
PK76
(Burki
na
Faso)
PK76-
Cinkan
sé
(Burkin
a Faso)
Economic Rate of
Return (ERR) 35% 35% 24% 28% 29% 27% 29% 27%
Net Present Value
(NPV) in CFAF
Billion
58 52 21 11 33 39 20 50
ERR Sensitivity Test
(+10% variation in
costs and -10% in
benefits)
27% 27% 20% 23% 24% 23% 26% 24%
3.2 Environmental and Social Impacts
Environment
The project is classified by the Bank under Environmental Category 2, taking into account: (i) the nature
of works to be undertaken (rehabilitation of existing roads with the route being more or less the same,
except at a few specific places for reasons of safety and average size of works); (ii) the location of the
project in relatively environmentally-insensitive areas; and (iii) the low intensity of direct and indirect
impacts that the project can generate. Comprehensive environmental and social impact assessments with
their Environmental and Social Management Plans (ESMP) were prepared and validated by the Burkina
Faso and Togolese Ministries in charge of the Environment. The project’s ESMP was posted on the
Bank’s Website on 10 May 2012.
The negative environmental impacts can be easily mitigated and limited to the construction period. In
each country, 120 ha of compensatory planting is recommended on hillsides and areas prone to erosion,
as well as borrow sites to be restored. Roadside trees will be planted along the entrances and exits of
towns concerned by road works (Atakpamé, Blitta, Sotouboua and Sokodé for Togo, and Koupela,
Liguidi-Malguem, Kampayargo, Lioulgou, Mogande, Bitou and Tenkodogo for Burkina Faso) using the
labour-intensive approach recommended by national youth employment programmes; they will
embellish the road landscape and create income-generating activities for youths.
Road Safety
The Lomé-Ouagadougou Road Corridor is one of the most accident-prone in the sub-region for several
reasons: (i) the existence of dangerous areas such as the Alédjo and Défalé faults in Togo where the
geometric features of the road do not comply with accepted norms and standards; (ii) the behaviour of
drivers and state of vehicles; and (iii) lack of adequate mechanisms for the rapid evacuation and
treatment of road accident victims. In March 2010, the United Nations General Assembly adopted
Resolution A/RES/64/255 in which it proclaimed 2011-2020 the Decade of Action for Road Safety so as
to stabilize and then reduce the number of deaths due to road accidents worldwide by intensifying
sensitization campaigns at national, regional and global levels. Accordingly, efforts have been initiated
12
on the corridor with ongoing construction of road sections bypassing the critical sections with faults in
Togo, with financing from Eximbank of China.
The project design includes measures to improve road safety through: (i) compliance with road safety
regulations and technical standards in force concerning road signs, slopes, road banking and deviations;
(ii) the construction of driveways in temporary parking lots and roadside rest areas for drivers; (iii) road
safety sensitization campaigns for road users and the local population; and (iv) the conduct of road
safety audits at start-up, during and after completion of works. To ensure expedient treatment of road
accident victims, the project, in agreement with WHO, intends to support health facilities located along
the corridor (Dapaong and Sokode in Togo, and Tenkodogo and Zorghoau in Burkina Faso) by
constructing Blood Transfusion Centres (BTC) with small blocks equipped with a blood bank and an
ambulance. The recurrent costs will be subsequently be borne by the Governments with WHO support.
Climate Change
Climate change was considered during project design, with the boxing up of the road and sizing of water
supply structures taking into account the rainfall pattern in the project area. Furthermore, concerning
road works, the following measures will help to mitigate the effects of climate warming: (i) restoration
of borrow pits along the road and related rural roads through systematic tree planting and plant
regrowth, and (ii) planting of trees on both sides of the road. About one hundred hectares of hillsides and
erosion-prone areas as well as borrow pits to be restored will be reforested.
Gender Issues
In Togo and Burkina Faso, women account for 51% of the PIA population as against 49% for men.
According to the latest study on poverty and vulnerability in Togo conducted in 2007, the
unemployment rate for women (9.9%) is much higher than for men (5.6%). Agriculture and trade are the
main activities carried out by women in Togo. In the agricultural sector, Togolese women earn only
10% of the income derived from the fruits of their labour. This is due to unequal access to the means of
production. Trade is the main source of income for 53.2% of Togolese women.
Poverty in Burkina Faso mostly affects the rural population and women. The incidence and severity of
poverty are higher among women than men (52% as against 48%). This inequality stems from the
economic marginalization of women, especially in rural areas where their living conditions are
particularly affected by limited access to inputs compounded by the level of inaccessibility of the area
and lack of means of transportation. The marketing of agricultural produce is an important source of
income and employment for urban women in the centre-east region.
The health situation of women in the PIA is rather alarming. Some 72% of women in the Burkina Faso
PIA mentioned lack of money for treatment and 54% distance to a health service as major impediments
to access to health care. The rate of HIV prevalence among women (1.6%) is almost twice the rate
among men (0.9%). There is also a high rate of HIV/AIDS prevalence among women in Togo. An
estimated 30.5% of Togolese girls aged 15 to 19 are infected compared to 8.1% of boys in the same age
group.
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The project implementation will have a positive impact on the status of women by: (i) improving access
to socio-economic infrastructure, particularly health centres; (ii) increasing women’s incomes,
particularly during the operation phase by facilitating the sale of goods and supply of inputs. To
strengthen the positive impacts of the project in terms of economic empowerment of women, the
following measures have been taken: (i) the construction and rehabilitation of four women's centres
(CPFs) along the corridor; (ii) the installation of information kiosks for women and other users along the
corridor dealing with all issues related to inter-State transit; (iii) the construction of equipped modules
in Anié market to increase women's incomes; and (iv) the provision of interim modes of transportation
and minor equipment for the processing of agricultural produce for women's groups in the project area
in Burkina Faso so as reduce their drudgery and increase their productivity.
The women’s centres (CPF) will help to build women’s capacities through targeted training and
information, education and communication activities to be carried out by the United Nations Fund for
Population Activities (UNFPA) in the promotion of reproductive health, including HIV/AIDS
prevention and violence on women. Special emphasis will be laid on the availability and dissemination
of information on cross-border trade to enable female vendors to cross the border more systematically
without being attacked or harassed. To mitigate the effect that increased traffic on the corridor may have
on the spread of HIV/AIDS and other STDs, as well as the increase in road accidents in the area,
sensitization campaigns on environmental protection, road safety, HIV/AIDS and STDs, and compliance
with axle load limitations will be carried out within the framework of the project.
Social Situation and Youth Employment
The youth and women’s employment situation is a great cause for concern. The indicators show that
65.4% of the unemployed in Burkina Faso are below 24 years of age, and more than 30% of Togolese
youths are unemployed. Given the magnitude of the problem, it has been proposed that this project be
implemented as a pilot project of the Joint Initiative of the African Union (AU), the African
Development Bank (ADB), the United Nations Economic Commission for Africa (ECA) and the
International Labour Organization (ILO) so as to promote job creation for youths in Africa.
Project support in this connection is consistent with the national employment promotion strategies,
particularly in the public works and civil engineering sector which absorbs much of the investment
budgets of both countries, and should therefore contribute significantly to the achievement of the
objectives of this Initiative. Project support to this Initiative will be through: (i) the inclusion of
incentives for the use of local manpower in the bidding documents for works; (ii) taking into account
provisions concerning procurement for related works with total allocations of CFAF 4.8 billion, and
contract sizes that will enable local SMEs to participate in competitive bidding; (iii) the provision of
practical training for a total amount of CFAF 1.65 billion so as to increase the employability of youths
and women in road maintenance through "training worksites"; and (iv) the execution of labour-intensive
works totalling CFAF 3.60 billion, such as the development of 5.5 km of pavestone roads on the
Tenkodogo road network and the access road to Anié market. To ensure job sustainability and the
integration of youths who will be trained, the Road Funds will include in their annual road maintenance
programmes contracts to be signed with youth and women's associations for non-mechanized routine
road maintenance works.
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Forced Resettlement
The project works will not require any major expropriation because they mainly concern the
rehabilitation of road sections without significant change of the route, hence there will be no
displacement of people. However, in Togo, 15 installations built with fragile materials for informal trade
at the Blitta junction: sale of clothes, retail of fuel, coffee or handicraft activity (two-wheel containers)
or used as warehouses, will be relocated. Social facilities were also identified: shed used as office for
"zémidjan" (motorcycle taxi) or transporters’ union in Blitta, and a space for prayer. All persons affected
by the project, be they (legal or customary) owners on the project road area will be eligible for
compensation. For each commercial building affected, the owner will be paid compensation in cash the
amount of which will be equivalent to the cost of construction of a new building assessed at market
price without considering depreciation. The resettlement cost totalling about CFAF 8 million will be
entirely borne by the Togolese Government. The full payment of compensation for expropriation by
the Togolese Government is a condition for this project.
4 PROJECT IMPLEMENTATION
4.1 Implementation Arrangements
Executing Agency
This project, which is part of the WAEMU Commission’s Community Road Transport Infrastructure
Action Programme (PACITR), will be implemented under the joint responsibility of Burkina Faso, Togo
and the WAEMU Commission. Given that transport facilitation transcends individual States, Togo and
Burkina Faso have agreed to: (i) delegate the monitoring and management of certain activities of the
transport facilitation component as well as overall project implementation coordination to the WAEMU
Commission; and (ii) transfer regional facilitation infrastructure and equipment to the Community’s
heritage. The WAEMU Commission will rely on the Department of Community Planning, Transport
and Tourism (DCPTT) through the Department of Infrastructure which has sufficient human resources.
In addition, this Department has acquired sufficient experience in the implementation of similar projects.
Submission of the agreement, which delegates project ownership to WAEMU, to the Bank is a
condition for this project.
The executing agency in Burkina Faso is the Ministry of Infrastructure and Road Development (MID)
through the General Directorate of Roads (DGR) which has adequate human resources. The project will
use the Project Implementation Monitoring Unit established in 2009 within the DGR by Order No.
2008/0031/MID/SG/DGR. The Bank has already given its no-objection opinion on the CVs of the Unit's
staff (Coordinator, Accountant, Road Engineer and Works Supervisor). A performance contract will be
signed between the Director General of Roads and the Project Coordinator for the conduct of an annual
performance evaluation. To better monitor the transport facilitation component, a focal point will be
pointed for the Customs department, and another for the Department of Land Transport. The project
provides for equipment and operating resources for the Unit, as well as the payment of monthly bonuses
and allowances to the Unit’s staff and the focal points, in accordance with the legal provisions in force.
In addition, the project also intends to support the DGR through technical assistance comprising two
experts for a two-year period and short-term experts, including a procurement specialist.
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In Togo, project implementation monitoring will be based on the institutional mechanisms established
under the Aflao/Sanvee-Condji Road Rehabilitation Project financed by the ADB. The Ministry of
Public Works will be the executing agency, through the Project Implementation Monitoring Unit
(PIMU) within the General Directorate of Public Works. This Directorate, which has adequate human
resources, will appoint two engineers as Project Officers, one of whom will be the Project Coordinator.
A performance contract will be signed between the Director General of Public Works and the Project
Coordinator for the conduct of an annual performance evaluation. To ensure better monitoring of the
transport facilitation component, a focal point will be appointed in the Department of Road and Railway
Transport in the Ministry of Transport, and another in the Customs Department. The project provides
for equipment and operating resources for the Unit, as well as the payment of monthly bonuses and
allowances to the Unit’s staff and the focal points, in accordance with the legal provisions in force. In
addition, the project also intends to support the DGTP and DT through technical assistance comprising
two experts for a two-year period and short-term experts, including a procurement specialist.
The project will also use the institutional mechanisms that have already been established (Observatories
of Abnormal Practices, National Road Transport and Transit Facilitation Committees, Regional Road
Transport and Transit Facilitation Committee, and the PACITR Steering Committee). To ensure proper
coordination of project activities, a Joint Technical Committee (CTM) will be established; the
committee will comprise Directors in charge of Roads, Transport and Customs and representatives of
the Ministries of the Economy and Finance (Cooperation/Permanent Secretariat), the Project
Coordinators of both countries or their representatives, as well as those of DCPTT (DAIT and DTTM).
The Committee will be coordinated by the DAIT of WAEMU. The CTM will be responsible for
coordinating project implementation, solving any problems and ensuring smooth project implementation
in the countries. It will meet at least twice a year in the two countries, on a rotational basis. The
operating costs of the CTM will be borne by WAEMU. Establishment of the Joint Technical Committee
(CTM) is a condition for this project.
Procurement Arrangements
4.1.5 All goods, works and services financed by the ADF and the EU-Africa Infrastructure Trust Fund
for this project will be procured in accordance with the Bank’s Rules of Procedure for Procurement of
Goods and Works or, as appropriate, the Bank’s Rules of Procedure for the Use of Consultants (May
2008 edition), using appropriate Bank standard bidding documents. Under this project, the KfW has
agreed to comply with the Bank’s procurement procedures. However, the Bank should favourably
consider the following points raised by the KfW: (i) publication, at the expense of the KfW, of
competitive bidding notices in NFA in Germany, in addition to the publication of competitive bidding
notices in the UNDB; (ii) inclusion of standard commitment statements and KfW's standard advance
contract start-up and successful completion guarantees in the works bidding documents after prior
review by the Bank. Procurements entirely financed with counterpart contributions of the Togolese
and Burkina Faso Governments as well as WAEMU and other donors will be undertaken in
accordance with the procurement procedures of each country, WAEMU and other donors.
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Special Arrangements
4.1.6 On 7 February 2012, the Governments of Togo and Burkina Faso requested and obtained from the
Bank, approval for advance procurement actions (APA) for: (i) road and related works; (ii) consultancy
services for works control and supervision; (iii) consultancy services for socio-economic impact
monitoring and assessment; (iv) consultancy services for transport facilitation impact monitoring and
assessment, for which the ownership should be delegated to WAEMU Commission by Togo and
Burkina Faso; and (v) technical assistance. Competitive bidding for the activities listed above is
scheduled to be launched in April 2012. The Project Implementation Monitoring Unit (PIMU) of Togo's
Ministry of Public Works and the Project Implementation Monitoring Unit of Burkina Faso's Ministry of
Infrastructure and Road Development will be responsible for the procurement of works, goods and
services. All the procurement documents and decisions will be subject to prior endorsement by the
authorities in charge of public procurement in both countries, in accordance with the Public Procurement
Code. The draft procurement plans prepared by the various PIMUs for procurements under their
competence were submitted to the Bank for review and approval before the negotiations. Details of
procurement methods, review procedures, national laws and regulations, national procurement systems
and evaluation of executing agencies are presented in Technical Annex A.2.
Disbursement and Auditing
4.1.7 The direct disbursement method will be adopted for works, the supply of goods, and consultancy
services, as well as activities whose management has been delegated to WAEMU. The operating costs
of the executing agencies and the Joint Technical Committee will be paid from national counterpart
contributions and by WAEMU. Concerning auditing, annual project financial statements and accounts
will be audited by an independent audit firm and reports related thereto will be forwarded to the Bank in
accordance with the rules and procedures in force. Four audits will be conducted for this project for the
2012-2013, 2014 and 2015 and part of the 2016 fiscal years, as well as three technical audits.
Financial Management
4.1.8 In both countries, the accounting services of executing agencies will be responsible for financial
and accounting management. WAEMU will ensure the financial management of the transport
facilitation component. During the assessment of the financial capacities of the executing agencies, a
fiduciary risk was identified. To mitigate it, an accounting software will be acquired, the accounting and
financial teams trained, procedures manuals prepared, and the staff of each implementation unit
reinforced with an accountant and a bookkeeper.
4.2 Monitoring and Evaluation
Project monitoring and evaluation will include internal and external monitoring, Bank supervision
missions, a mid-term review and a final evaluation, including the completion report of the executing
agencies. Monthly and quarterly reports will be prepared on the execution of works by works control
and supervision firms. The executing agencies will prepare and submit quarterly project implementation
reports to the Bank. The Joint Technical Committee will also prepare and submit reports.
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Project impact monitoring will help to identify and analyze project implementation indicators that
contribute to achievement of the expected outcomes. The General Directorate of Statistics and National
Accounts (DGSCN) of Togo and the National Institute of Statistics and Demography (INSD) of Burkina
Faso will, under the responsibility of Executing Agencies and through a service agreement, assess the
socio-economic impacts of the project in the project direct impact area. A consultant to be recruited by
WAEMU will monitor and evaluate the impacts of transport facilitation on the entire corridor.
4.3 Governance
The challenges to be faced regarding good governance of the transport sector include long delays and
transparency in procurement, establishment of a baseline framework for investment planning,
transparency in the financial management of infrastructure maintenance, and impediments to road
traffic. Burkina Faso and Togo have adopted a new public procurement code which complies with the
regulatory and legal framework as regards international standards, as well as with the provisions of the
WAEMU Directive based on the principle of separation of regulatory and control functions (Public
Procurement Regulatory Authority, General Directorate of Public Procurement and Procurement
Commissions in each Ministry). Thus, the recent evaluation missions carried out by the Bank and the
World Bank underscored the significant progress made in Burkina Faso and, indicted that, overall,
increasing efforts are being made to align the national procurement system and procedures with
international standards. Furthermore, to improve investment planning and programming, Burkina Faso
in 2011 updated its transport sector strategy. In Togo, the Bank is financing the transport sector
development strategy study, whose final reports are expected at the end of 2012.
The Governments of Togo and Burkina Faso are also aware of recurrent problems associated with the
first generation road funds (financial mismanagement, lack of external audits, use of funds for
unauthorized expenditures, embezzlement, and inadequate control). Consequently, they have initiated
road maintenance reforms in accordance with the WAEMU Directive on the establishment of second
generation Road Funds by developing strategies to optimize road maintenance, establishing road
databanks for more transparent road maintenance programming, and setting up autonomous road
maintenance funding bodies. In Togo, the Société Autonome de Financement de l’Entretien Routier
(SAFER) (Autonomous Road Maintenance Finance Corporation) receives resources from road user
charges, enjoys administrative and financial autonomy, has a board of directors comprising members
from the public and private sectors, and is subject to regular financial and technical audits. Burkina Faso
has taken measures to set up a second generation road fund, and has initiated discussions with partners
on the terms and conditions for Burkina Road Maintenance Fund (FER-B) financing and administration
which should be completed in 2013.
The project design also includes specific measures to mitigate governance risk to ensure that resources
are used judiciously and for the purposes for which they are intended. In this regard, the project will
provide technical assistance in procurement to the various executing agencies. Measures will be taken to
minimize road harassment and time wasting along the corridor, and all procurements will be submitted
to the Bank for prior review and approval. In addition, independent auditors will be recruited to carry
out project financial and technical audits.
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To ensure good governance along the main roads in West Africa, ECOWAS and WAEMU set up the
Observatory of Abnormal Practices (OPA) in 2005. The OPA, which now covers five corridors,
including the Lomé-Ouagadougou corridor, helps to periodically record practices that hamper traffic
fluidity and efficiency of transport systems. In recent years, OPA's activities, particularly on the Lomé-
Ouagadougou corridor, have contributed to reducing illegal charges, excessive controls, and control-
induced delays.
4.4 Sustainability
The sustainability of the road sections to be rehabilitated under this project will depend on the following
three main factors: (i) the quality of work done; (ii) operation of the roads; and (iii) the level and quality
of maintenance. To ensure compliance with quality standards during the construction phase, the works
will be supervised and monitored by consulting engineering firms selected from among the most
qualified, and which are familiar with similar projects. Furthermore, the technical solutions adopted took
into account the volume and composition of current and future traffic, as well as the geotechnical
characteristics of materials to be used. Lastly, project supervision by the Bank, as well as technical audit
missions to be carried out by consultants, will help to better monitor the technical execution of works.
Pursuant to WAEMU Rule No. 14 on axle load and gross weight control, the two countries have: (i) set
up agencies to control axle load and gross weight, in particular the Road Safety Authority in Togo and
the National Road Safety Authority (ONASER) in Burkina Faso, and (ii) embarked on a process to
interlink their road networks with axle scales, as well as at heavy loading points (ports, cement factories,
etc.). The initial results are encouraging. Thus, since this mechanism was introduced in early 2011, the
statistics compiled in December 2011 showed that the number of overloaded trucks dropped from 80%
to 26% on average that year. These operations will be intensified to completely eliminate truck
overloading.
Regarding the maintenance of the Community road network, Directive No. 11/2009/CM/UEMOA of 25
September 2009 to harmonize road maintenance strategies in Member States defines conditions for the
establishment of road funds in Union Member States, their management, as well as provision of their
resources. Member States had one year to comply with the Directive. To that end, in Togo, the
Autonomous Road Maintenance Finance Corporation (SAFER) was established in 2011 and
amendments to its constituent instrument were adopted in March 2012 to make it a second generation
road fund. A charge of CFAF 35 per litre of fuel is paid directly into SAFER's account. Its
administrative, supervisory and management organs are being set up. In Burkina Faso, the 2007 decree
to set up the Burkina Road Maintenance Fund (FER-B) was amended in 2011 to initiate transition to a
second generation road fund (though its organs have been set up, for the moment, all resources are
derived from public budgetary allocations). The establishment, by Burkina Faso, of a road
maintenance fund that enjoys full autonomy is a condition for this project.
In 2012, estimated resources amounting to CFAF 18 billion for FER-B and CFAF 9 billion for SAFER
will normally be sufficient to meet routine road network maintenance needs in both countries. Both
Governments have undertaken to supplement these resources through budgetary allocations for periodic
road maintenance needs. The project roads and related rural roads form part of the classified road
network in both countries, and are therefore eligible for financing by the Road Fund. Annual
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maintenance requirements are estimated at CFAF 136 million, or 2% of the Road Fund resources in
Togo, and CFAF 101 million, or 1% of the Road Fund resources in Burkina Faso. Submission of the
road maintenance budget and a report on its use to the Bank by both Governments each year is a
condition for this project.
4.5 Risk Management
The main risks that could hamper achievement of the project outcomes are: (1) the juxtaposed border
checkpoint at Cinkansé is not fully operational; (2) the application of axle-load regulations in both States
is not effective; (3) persistent harassment at checkpoints on the corridor due mainly to lack of a single
security for transit operations; (4) delay in upgrading the existing road funds in both countries to second
generation road funds with sufficient autonomous resources. The first risk will be mitigated by the fact
that WAEMU and both States have undertaken to adopt appropriate measures to make this checkpoint
operational through the newly established ad hoc commissions comprising all stakeholders. Evidence
that the juxtaposed border checkpoint (PJC) is fully operational is a condition of this project. The
second risk will be mitigated by: (a) the fact that axle-load and gross weight control is now carried out
upstream by installing axle scales at all loading points (before exiting Lomé Port, the cement factory,
cargo areas, etc.); (b) installing axle scales across all West African countries; (c) securing shipments by
accelerating containerization and sealing to prevent the modification of shipments during transit; (d) the
management of weighing stations entrusted to autonomous entities with a performance contract; and (e)
monitoring of the application of regulations by commissions in which development partners are
stakeholders. The third risk will be mitigated by the regular sensitization of policy-makers through OPA
reports, the goods tracking and radio-communication system, and the interconnection of customs data
processing systems provided for under the project, as well as the institution of a single security for
transit operations. Amendment, by Togo, of the instrument on the inter-State road transit
operations guarantee fund is a condition for this project. The fourth risk will be mitigated by the fact
that both countries have, in accordance with WAEMU Directives, embarked on the establishment of
second generation road funds.
Risks that may hamper project implementation are: (1) increase in the cost of works in relation to the
estimated budget; (2) long procurement deadlines and delays; and (3) difficulties and/or delays in
mobilizing counterpart contributions. The first risk will be mitigated by the availability of
comprehensive implementation studies updated in 2011, a realistic cost estimate based on similar work
contracts launched between 2010 and 2011, adequate provision for price escalation, Advance
Procurement Actions that will reduce the time between the conduct of studies and the start-up of works,
and measures taken to ensure broad competition during bidding. The second risk will be mitigated by
the fact that the two executing agencies will be supported by technical assistance that will provide a
procurement expert in good time and by the close assistance that will be provided by the Bank’s Offices
in both countries to the agencies. The third risk will be mitigated by the fact that Burkina Faso's
counterpart contribution to the components to be funded by Bank has been reduced considering that the
country is eligible for 100% project financing by the Bank. As regards Togo, the expected total
counterpart contribution for the entire project of about CFAF 7.8 billion, or about CFAF 2 billion
annually, is bearable when compared to the CFAF 2.3 billion spent each year on the maintenance of
road sections of the corridor. To secure counterpart resources, the opening of a counterpart
contribution account and its regular replenishment with resources is a condition for this project.
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4.6 Knowledge Building
The knowledge that would be acquired from project implementation will concern best road project
management and monitoring and evaluation practices within a regional context. The best practices will
be disseminated among project stakeholders through periodic meetings and briefing notes. The
emphasis placed on project impact assessment is mainly intended to meet knowledge building needs.
Indeed, the establishment of the baseline situation before the start-up of project activities will provide a
basis for comparison in order to realistically assess the level of achievement of project impacts. The data
for comparison will be derived from the evaluation of project outcomes upon the completion of works.
The organization of a national workshop will help to disseminate knowledge acquired from the studies.
It will also be necessary to focus on road maintenance through the mechanism that will be established to
ensure investment sustainability.
The key knowledge and lessons learned will be managed from a relational database at the DGTP in
Togo and the DGR in Burkina Faso. This database will effectively facilitate the management of all
knowledge acquired from activities, outcomes, key outputs and lessons learned from this
project. Summaries could be published on the Bank's website.
5 LEGAL FRAMEWORK
5.1 Legal Instrument
The Bank will provide grants and loans to the Governments of Togo and Burkina Faso to help finance
this project.
5.2 Conditions Associated with Bank’s Involvement
A. Commitments
Burkina Faso and the Republic of Togo undertake to take appropriate steps to ensure that financial
resources provided by other donors are made available in a timely manner.
B. Conditions precedent to Effectiveness of the ADF Grants and Loans to Togo and Burkina Faso and
the FSF Grant to Togo
Effectiveness of the ADF and FSF grants shall be subject to signature of the related Protocols of
Agreement by the Governments of Togo and Burkina Faso and the Bank.
Effectiveness of the ADF loans shall be subject to fulfillment, by the Borrowers, of the conditions
specified in Section 12.01 of the General Conditions.
C. Conditions precedent to First Disbursement of the ADF Grants and Loans and the FSF Grant
(i) The Republic of Togo shall submit to the Bank: (a) evidence of opening two accounts for the
counterpart contributions - one of them shall be for the operating resources of the Project
Implementation Monitoring Unit and the other for its contribution to the financing of the works
(paragraphs 2.4.3 and 4.5.2); and (b) evidence of the payment of compensation for
expropriations (paragraph 3.2.13);
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(ii) Burkina Faso shall submit to the Bank evidence of replenishing the counterpart contribution
account already opened for the operating resources of the Project Implementation Monitoring
Unit (paragraphs 2.4.3 and 4.5.2); and
(iii) Burkina Faso and the Republic of Togo shall submit to the Bank the instrument establishing the
Joint Technical Committee (CTM) and appointing its members (paragraph 4.1.4).
D. Other Conditions for the ADF Grants and Loans and the FSF Grant
(i) Burkina Faso and the Republic of Togo shall: (a) submit to the Bank, no later than 31 December
2012, the signed agreement delegating project ownership to WAEMU for the management of the
goods tracking system and the monitoring and evaluation of transport facilitation impacts
(paragraph 4.1.1), and (b) take appropriate steps to make the Cinkansé Juxtaposed Border
Checkpoint (PCJ) operational no later than 31 December 2012 (paragraph 4.5.1);
(ii) The Republic of Togo shall submit to the Bank, no later than 31 December 2012, the signed
instrument amending the text on the inter-State transit operations guarantee fund (paragraph
4.5.1);
(iii) Burkina Faso and the Republic of Togo shall submit the road maintenance budget and a report
on its utilization each year to the Bank (paragraph 4.4.4);
(iv) Burkina Faso shall: (a) replenish no later than 31 March of each year the counterpart contribution
account for the operating resources of the Project Implementation Monitoring Unit, (b) before
the end of 2013, establish a road maintenance fund that enjoys full autonomy (paragraph 4.4.3);
(v) Burkina Faso and the Republic of Togo shall submit to the Bank no later than 31 January 2013
the financing agreements concluded with the WADB and EBID, and the Republic of Togo shall
submit to the Bank no later than 31 December 2013 the financing agreement concluded with the
IsDB (paragraph 2.4.2).
5.3 Compliance with Bank Policies
This project is consistent with all applicable Bank policies.
6 RECOMMENDATION
Management recommends that the Board of Directors should approve the proposed: (i) UA 30.23
million ADF grant to the Government of Togo and UA 84.60 million ADF grant to the Government of
Burkina Faso; (ii) UA 17.80 million ADF loan to the Government of Togo and UA 21.53 million ADF
loan to the Government of Burkina Faso; and (iii) UA 21.50 million FSF grant to the Government of
Togo, to finance this project in accordance with the conditions specified in this report.
APPENDIX I
I. Comparative Socio-economic Indicators Togo/Burkina Faso - Development Indicators
Social Indicators TOGO BURKINA FASO
Africa Developing
Countries 1990 2011 * 1990 2011 *
Area (000 Km²) 57 274 30 323 80 976
Total Population (million) 3.7 6.2 9.3 17.0 1 044.3 5 732.2
Annual Population Growth (%) 2.5 2.1 2.7 3.0 2.3 1.3
Life Expectancy at Birth – Total (years) 57.7 63.6 47.4 53.7 56.0 67.1
Infant Mortality Rate (per 1000) 100.8 67.1 106.9 77.8 78.6 46.9
Number of Physicians (per 100 000 people) … 5.0 … 6.0 58.3 109.5
Births Attended by Trained Health Personnel (%) … 62.4 … 53.5 50.2 64.1
Child Immunization against Measles (% of children aged 12-23
months) 73.0 84.0 79.0 94.0 77.9 80.7
Primary School Enrolment Ratio (% of Total) 95.8 139.6 30.1 75.6 100.4 107.2
Girls/Boys Primary School Enrolment Ratio (%) 64.4 89.9 63.2 91.0 90.9 100.0
Illiteracy Rate (% of population >15 years) … 56.9 … 28.7 65.1 80.3
Access to Safe Water (% of population) 49.0 60.0 34.0 76.0 64.5 84.3
Access to Health Services (% of population) 13.0 12.0 5.0 11.0 41.0 53.6
Value of HDI (Rank on 179 countries) … 162.0 … 181.0 n.a n.a
Human Poverty Index HPI-1) (% of population) … 36.6 … 51.8 34.7 …
TOGO BURKINA FASO
Macroeconomic Indicators 2000 2009 2009 2010 2010 2011
GNI Per Capita, Atlas method (current USD) 328 527 493 544 551 …
GDP (current USD million) 1 291 3 156 8 327 9 203 3 259 3 710
Real GDP Growth (annual %) -1.2 3.2 3.2 7.2 3.6 3.4
Real GDP Growth Per Capita (annual %) -4.1 1.0 0.2 4.1 1.5 1.3
Gross Domestic Investment (% of GDP) 15.9 18.7 21.1 21.9 20.1 21.1
Inflation (annual %) 1.9 1.9 2.6 -0.7 3.4 4.1
Budgetary Balance (% of GDP) -4.7 -2.8 -4.8 -5.8 -3.3 -2.5
Trade, External Debt and Financial Flows 2000 2009 2000 2009 2010 2011
Variation in Volume of Exports (%) -9.9 16.7 66.9 116.0 -5.3 2.8
Variation in Volume of Imports (%) 9.1 9.2 -10.7 33.9 -3.4 6.9
Variation of Terms of Trade 19.3 -0.1 -20.1 -12.4 -1.1 1.9
Trade Balance (USD million) -136.9 -413.0 -482.0 -129.5 -476.8 -569.2
Trade Balance ( (% of GDP) -10.6 -13.1 -5.8 -1.4 -14.6 -15.3
Current Account Balance (USD million) -112.4 -210.3 -352.6 -299.3 -225.0 -278.0
Current Account Balance (% of GDP) -8.7 -6.7 -4.2 -3.3 -6.9 -7.5
Debt Servicing (% of exports) 2.8 4.6 4.6 … 5.1 2.9
Total External Debt (% of GDP) 9.7 55.4 23.2 23.4 16.8 16.0
Total Net Financial Flows (USD million) 60.3 554.2 1079.7 … … …
Net Official Development Assistance (USD million) 69.6 499.0 1083.9 … … …
Net Direct Investments (USD million) 41.5 50.1 171.4 37.1 41.1 …
International Reserves (months of imports of goods & services) 2.6 3.7 5.1 3.3 3.6 …
Private Sector and Infrastructure Development 2000 2005 2000 2005 2010 2011
Time required to start a business (days) … 65 40 14 84 84
Investor protection index (0-10) … 3.7 3.7 3.7 3.7 3.7
Stationary telephone subscribers (per 1 000 inhabitants) 8.9 11.6 6.4 8.7 35.5 …
Internet users (per 1 000 inhabitants) 10.4 80.2 44.6 346.6 406.9 …
Asphalted roads (000) 31.6 … … … … …
Goods transported by rail (million - km) … … … … … …
Source: ADB Statistics Department Database, from national and international sources.
* Most recent Year. Last updated: October 2011
APPENDIX II
Bank's Ongoing Projects Portfolio in Togo as at 31/3/2012
(Amount in Units of Account)
Project Name Approval Date Closing
Date
Loan/Grant
Amount in
UA
Disbursement
Rate Age
National Projects Portfolio
Integrated Water Supply Information
System 1/12/2009 3/1/2011 1 340 212 35.05 2.08
Aflao-Sanveecondji Road Project 1/13/2010 12/31/2012 25 250 000 20.00 1.08
Economic and Financial Governance
Support 10/5/2010 12/31/2013 4 850 000 9.31 0.35
Economic and Financial Governance
Support 10/5/2010 12/31/2013 4 360 000 0.00 0.35
Humanitarian Aid to Flood Victims 4/2/2009
500
1.86
Lomé Port Container Terminal 15/7/2011 60 000 000
Multinational Projects Portfolio
Project for Rehabilitation of the Lomé-
Cotonou Road and Transport
Facilitation on the Abidjan-Lagos
Corridor Phase
5/10/2011 31/12/2016 4 810 000 0
Bank's Ongoing Projects Portfolio in Burkina Faso as at 31/3/2012
Project Name Approval Date Closing Date Loan/Grant
Amount in UA
Disburse
ment Rate Age
National Projects Portfolio
Accelerated Growth Strategy and Business
Environment Support Programme 20/9/2011 31/12/2012 50 000 000 50.00 0.53
Electrical Infrastructure Strengthening and Rural
Electrification Project 7/7/2010 31/12/2014 25 150 000 1.03 1.73
Community Agricultural Fertility Investment
Project 27/10/2004 30/6/2012 6 400 000 93.80 7.41
Small Dams Development Project 12/12/2002 30/6/2012 10 000 000 67.23 9.28
Gnagna and Kouritenga Rural Development
Support Project 21/7/2006 31/12/2012 12 500 000 73.24 5.68
Project for Support to Institutions Responsible
for Public Resource Management 27/10/2006 31/12/2012 2 460 000 87.74 5.42
Education V Project 16/7/2003 30/12/2012 17 000 000 66.01 8.69
Centre-East and North Regions Health
Development Support Project 27/7/2005 31/3/2013 25 000 000 60.84 6.66
Rural Drinking Water Supply and Sanitation
Project 24/7/2007 30/9/2013 20 000 000 37.36 4.68
Creation of Tsetse-free Zones 8/12/2004 30/6/2013 9 580 000 64.44 7.30
Multinational Projects Portfolio
Air Safety Oversight Capacity Building
Programme (COSCAP) (UA 4.6 million of
which UA 1.30 million for WAEMU)
27/4/2005 30/6/2012 4 600 000 6.91
WAEMU/Ghana-Road Programme 1 (UA 68
million of which UA 3.5 million for WAEMU
and UA 23.62 million for Burkina Faso)
19/11/2003 31/12/2012 68 000 000 71.33 8.35
ECOWAS Peace and Development Support
Project 29/9/2004 31/12/2012 10 000 000 60.08 7.49
Higher Education Support Project/WAEMU 24/7/2006 31/12/2012 20 000 000 23.59 5.67
APPENDIX II
Regional Market Reform Programme 4/12/2006 31/12/2012 4 000 000 39.45 5.31
Burkina Faso/Niger: Dori-Téra Road Project 21/10/2006 31/12/2011 12 700 000 94.3 5.43
Supplementary Loan to Burkina Faso to Finance
the (WAEMU/Ghana) Road Programme 1. 25/11/2008 30/6/2012 18 000 000 85.48 3.34
Burkina Faso Cotton Sector Support Project 29/11/2006 31/12/2013 10 000 000 59.79 5.33
APPENDIX III
MAJOR RELATED PROJECTS FINANCED BY THE BANK AND OTHER
DEVELOPMENT PARTNERS IN BOTH COUNTRIES
III-1 – BURKINA FASO
No. Project Name Source of Financing
Financing Cost (in
CFAF million
Excl. Tax)
Loan Agreement
Signature Date
Loan Agreement
Expiry Date
1 WAEMU/Ghana Road
Programme 1
ADF (Loan and
Grant) 49 636 12/10/2004 31/12/2012
2
WAEMU/Ghana Road
Programme 1 (Supplementary
Loan)
ADF (Loan) 13 139 14/7/2009 30/6/2012
3
Niger/Burkina Faso: Dori-
Téra Road Development
Project
ADF (Loan and
Grant) 11 058 16/11/2006 31/12/2011
4
Tarring of the Diébougou-
Yegueresso Road and Hamélé
Slip Road
ABEDA, KFAED,
IsDB, SFD,
WADB, Burkina
Faso
24 000 30/4/2007 2011
5 Reinforcement of the
Ouagadougou-Sakoinsé Road IDA 60 555 8/7/2008 1/12/2013
6 Tarring of the Koudougou-
Dédougou Road
ABEDA. KFAED.
IsDB, SFD, OPEC,
Burkina Faso
30 000 16/11/2008 2014
7
Rehabilitation of the
Koupéla-Fada-Piega- Niger
Border Road
WAEMU 228
WAEMU own
funds (start of
studies - 20
June 2011 )
WAEMU own
funds (deadline
for conduct of
studies - 12
months)
III- 2 –TOGO
Project Name Source of
Financing
Financing Cost (in
CFAF million
Excl. Tax)
Loan Agreement
Signature Date
Loan Agreement
Expiry Date
Rural Roads Rehabilitation and Bridges
and Water Supply Structures
Construction Project (6 structures)
WADB 4 300 22 May 2006 1 Nov. 2009
extended to 31
July 2011
FAIR-WAEMU 1 074 9 Sept.2006 7 June 2008
Aflao- Sanveecondji Road
Rehabilitation and Modernization
Project (Port Roundabout-Avépozo
section)
ADF 18 510 10 Feb.2010 31 Dec. 2012
Aflao-Sanveecondji Road Rehabilitation
and Modernization Project - Aneho-Fre
Benin section (7.76 km)
WB 13 000 7 April 2010 6 April 2015
Bassar-Kabou Road Development and
Tarring Project (27.5 km)
BIE 6 691 2009 2011
Kabou-Guerrinkouka Road Development
and Tarring Project (35 km)
Kuwait Fund 6 920 24 March 2010 31 Dec. 2015
GuerrinKouka-Katchamba Road Tarring
Project (26 km)
IsDB 5 600 16 April 2010 15 April 2013
Dapaong-Borgou-Mandouri Road
Development and Tarring Project (87
km)
WADB 40 000 24 May 2011 31 Dec. 2014
Development of the Alédjo, Défalé and
Tandjouaré-Cinkassé Slip Roads and the
outer Lomé Slip Road (133 km)
EXIM BANK 84 000 10 Dec. 2010 9 Dec. 2013
WADB 6 500
IsDB 90 500
Dapaong-Ponio-Fre-Burkina Road
Tarring Project (38 km)
IsDB 4 518 25 Jan. 2009 30 July 2011
WADB 8 465 4 Jan. 2013
Togo 632
Total 13 615
Kpalimé - Atakpamé Road
Rehabilitation and Reinforcement Project
(22 km)
BIE TOGO 8 580 2009 2011
PONCIN Project for the construction of
25 modular steel bridges on main earth
roads and rural roads (in 2 phases). 13
bridges for the first and second phases;
12 bridges for which financing should be
sought.
Fortis Bank 2 247.00 18 Aug. 2006
EBID 4 500.00 22 Jan. 2011 21 May 2011
Togo 1 500.00
Total 8 247.00
Technical and economic study of
Community Road CU 19: Nyamassila-
Bagou-Goubi-Bila-Kambolé Balanka-
Benin-Fre Benin + the Balanka-
Kouloumi and Koussountou-Goubi slip
roads (180 km)
ADB 365 10 Feb. 2010 31 Dec. 2012
Technical and economic study and
environmental and social impact
assessment of Community Road CU 18:
Ghana Border-Natchamba-Kéméridè-
Kara- Kéméridè-Benin Border (115 km)
FAIR-WAEMU 178 9 Oct. 2009 31 Dec. 2012
Technical and economic study and
environmental and social impact
assessment of the Akatsi - Dzodze-
Noepé Road: Ghana-Togo Bilateral
Project (1.65 km)
EU 25.00
EBID 708.00 10 March 2004 8 Jan. 2007
extended to 31
Dec. 2012
1
APPENDIX IV
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