AFRICAN DEVELOPMENT FUND

AFRICAN DEVELOPMENT FUND

ZAMBIA

MULTINATIONAL NACALA ROAD CORRIDOR PROJECT

PHASE II

(PCR)

RDGS DEPARTMENT

December 2017

1

I BASIC DATA

A Report data

Report date Date of report: 20 November 2017

Mission date (if field mission) From: 23 October 2017 To: 03 November 2017

B Responsible Bank staff

Positions At approval At completion

Regional Director F Black J Ngure

Country Manager F Kwesiga D Kitabire

Sector Director G. Mbesherubusa A Oumarou

Sector Manager J. Rwamabuga N Kulemeka (OIC, Implementation

Support –RDGS)

Task Manager L Weidner R Malinga

Alternate Task Manager P Opoku Darkwa

PCR Team Leader R Malinga

PCR Team Members

L KIggundu (Consultant)

A R Muja

M O Agyei

J Natan

C Project data

Project Name:Multinational Nacala Road Corridor: Phase II (Zambia)

Project code: P –Z1-DB0 -063

Instrumentnumber(s): ADF Loan

Loan No. 2100150022945

Project type: Investment Sector:Transport

Country: Zambia Environmental categorization (1-3): 1

Processing milestones – Bank approved

financing only (add/delete rows depending

on the number of financing sources)

Key Events (Bank approved financing

only)

Disbursement and closing dates (Bank

approved financing only)

Financing source/ instrument1: ADF Loan Financing source/ instrument1:ADF Loan Financing source/ instrument1: ADF

Loan

Date approved: 27.09.2010 Cancelled amounts: Balance not yet

cancelled

Original disbursement deadline:

31.03. 2015

Date signed: 20.01.2011 Supplementary financing: None Original closing date : 31.12.2014

Date of entry into force: 10.06.2011 Restructuring (specify date & amount

involved): None

Revised (if applicable) disbursement

deadline: 30.11.2017

Date effective for 1st disbursement:

24.10.2011

Extensions (specify dates):

30.03.2015 to 30.11.2016 (1st Extension);

30.11.2016 to 30.11.2017(2nd Extension)

Revised (if applicable) closing date:

31.08.2017

Date of actual 1st

disbursement:06.06.2012

PROJECT COMPLETION REPORT FOR PUBLIC SECTOR OPERATIONS (PCR)

2

Financing source/instrument (add/delete

rows depending on the number of

financing sources):

Disbursed amount

(amount, UA):

Percentage

disbursed (%):

Undisbursed amount

(UA):

Percentage

undisbursed

(%):

Financing source/ instrument1: ADF Loan 53,634,719.09 77.32 15,734,280.91 22.68

Financing source/ instrument2:ADF Grant - - - -

Government: 120,000.00 100 0.0 0.0

TOTAL 53,754.719.00 77.49 15,734,280.91 22.68

D Management review and comments

Report reviewed by Name Date reviewed Comments

Country Manager D Kitabire

Sector Manager N Kulemeka

Regional Director(as chair of Country

Team)

J Ngure

Sector Director A.Oumarou

II Project performance assessment

A Relevance

1. Relevance of project development objective

Rating* Narrative assessment (max 250 words)

4 The overall sector goal was to support economic growth in the SADC region and foster integration through reliable,

efficient and seamless transport infrastructure that increases subregional trade and global competitiveness. The

objective of the Project was (i) to provide Zambia, Malawi and Mozambique with improved road transport

infrastructure to the Nacala Port; and (ii) improve accessibility of the communities in the project’s zone of influence

to markets and social services. This project is one of a four phased implementation of the NRCP, two of which have

been completed now and two are on-going in Malawi and Mozambique.

At country level, the sector goal and objectives of the project were aligned with, the National Long Term Vision 2030

(NLTV 2030), the Poverty Reduction Strategy of Zambia (PRSC 2006-2010), the Fifth National Development Plan

(FNDP) 2006-2010 and the Transport Sector Policy of 2002 based on which the Road Sector Investment Program

(ROADSIP), prioritized it for implementation.

The Bank drew on the Joint Assistance Strategy (JASZ 2007-2010) developed with participation of the Development

Partners (DPs) in response to the medium to long-term development objectives of Zambia. The intervention was

developed within Pillar II of the JASZ: Support to Infrastructure Development which has been maintained in the

current Country Strategy Paper (2017-2021). The project was also consistent with the Bank’s Medium Term Strategy

(2008-2012) which placed priority on regional infrastructure as was required by the Bank Group Regional Integration

Strategy (2009-2012).

The project objectives were therefore relevant to both the improvement of accessibility of the communities to markets

and social services in the short term and provision of improved road transport infrastructure to the Nacala port for the

three benefitting countries in the medium to long term when Phases III and IV are completed.

* For all ratings in the PCR use the following scale: 4 (Highly satisfactory), 3 (Satisfactory), 2 (Unsatisfactory), 1 (Highly unsatisfactory)

2. Relevance of project design

Rating* Narrative assessment (max 250 words)

3.5 The NRCP Phase II was designed in consulation with all the stakeholders inclusive of the SADC Secretariat at

regional level, Government agencies, project beneficiaries, DPs, transport operators, shippers’ associations,

manufacturers’ associations, chamber of commerce representatives, ward counsellors, local leaders, village heads,

project beneficiaries and communities, community based organizations and NGOs.

Project implementation was entrusted to the Road Development Agency (RDA) an entity established by the Public

Road Act No. 12 of 2002 to manage the designated road network and financial management delegated to the

National Road Fund Agency (NRFA) established in 2002 under the National Road Fund Act No. 13 Both agencies

3

had the legal jurisdiction to manage the project. At District level a Projet Liaison Committee (PLC) comprising

local district officers was established during implementation to serve as the channel of communication between

the contractor, supervision consultant and the community.

The project outcomes, namely; (i) reduced transport costs and improved accessibility of communities to social

services and markets were relevant and measurable. The outcome indicators; (i) VOC savings and travel time cost;

and (ii) improved service levels and road condition have been used herin to determine the benefits at completion

and therefore the outcome indicators were relevant.

The project has therefore responded to the development objectives of GOZ in supporting Infrastructure

Development to firstly foster regional trade and enhance global competiiveness and secondly provide the

communities easy access to markets and services.

Inclusion of social infrastructure in the project design responded to the needs of the local communities. 9 boreholes

enabled an estimated 1800 households to have access to clean water in addition, having boreholes located in close

vicinity of the some communities lightens the burden of need to carry water over long distances, saves time and

mitigates associated safety risks. The 3 markets constructed under the project will improve the conditions under

which the small retail traders conduct their business. Tree planting was incorporated to address the negative impacts

on the environment as a result of the road construction including climate change amelioration.

3. Lessons learned related to relevance

Key issues (max 5, add rows as needed)

Lessons learned Target audience

Commitment to

Regional Integration

The project was perceived as a regional project, and the three countries benefitting

from the NRCP (Malawi, Mozambique and Zambia) have given commitment to

its completion and Phase III and IV are currently under implementation in Malawi

and Mozambique.

SADC/GOZ

Design Review Project design did not provide for comprehensive design review prior to tendering

the civil works which would have identified the under-estimates in the bill of

quantities (BoQ). This would have eliminated modifications that resulted in

significant increases in quantities and extension of time. The review would also

have identified the existing drainage structures that had inadequate hydraulic

capacities which resulted in overtopping and damage to the completed works. The

design review done under the Instiutional Support and Capacity Building

Component was limited to reformatting the tender documents to Bank standards.

GOZ/RDA/AfDB

Effective stakeholder

consultation

Effective stakeholder consultation ensures community ownership of the project.

Forming a Project Liaison Committee (PLC) as the primary mechanism for

establishing and maintaining communication with the local authorities and the

community was a very effective way of stakeholder engagement. This committee

had a key role in monitoring the overall impact of the project on the community.

Consider gender dynamics in designing effective stakeholder consultation. Most

conducive method of consultantion with men may not necessarily work for women

and children. On this project, road safety campaign had to be taken to churches to

reach out to women and children as opposed to the conventional community

meetings.

There is a need to intensity stakeholder consultations after project completion to

make the beneficiaries more vigilant and more responsive to acts of vandalism,

GOZ/RDA/AfDB

Project Ownership Cultural aspects play critical role in project ownership and sustainability. Capacity

building curricula for projects beneficiaries should include mind-set change to

enable beneficiaries grasp the need for them to own up projects during and after

implementation to curb negative behaviours such as vandalism of road furniture.

The boreholes are managed and maintained by Water Sanitation and Hygiene

(WASH) Committee. Beneficiary households pay varying amounts ranging from

16 ZMW to 60 ZMW per year towards management and maintenance of the

boreholes. This is deemed to enhance the sustainability.

4

B Effectiveness

1. Progress towards the project’s development objective (project purpose)

Comments

Provide a brief description of the Project (components) and the context in which it was designed and implemented. State the project

development objective (usually the project purpose as set out in the RLF) and assess progress. Unanticipated outcomes should also be

accounted for, as well as specific reference of gender equality in the project . The consistency of the assumptions that link the different

levels of the results chain in the RLFshould also be considered. Indicative max length: 400 words.

The project comprised; (a) construction to asphalt concrete (AC) standard of a 6.8 m carriageway and 2x1.5 m shoulders of the Nyimba

to Petauke (67.7 km) and the Petuake to Sinda (47 km) (total 114.7km) inclusive of three market sheds with sanitation and water

provision and approximately 9 boreholes; (b) consulting services for; (i) supervision of the civil works; (ii) road safety awareness; (iii)

HIV/AIDS/STI and TB awareness; (iv) environmental mitigation measures; (v) gender sensitization; (vi) technical and financial audit

services; (vi) ESMP implementation and tree planting; and (c) (vi) institutional support and capacity development; (d) compensation

and resettlement of project affected people (PAP). This phase of the NRCP includes three other sections covering 277.5km financed

by the EU, EIB and the AfDB.

The project is the second of the four phased implementation of the NRCP, the first one being the bypass around Lilongwe and Malawi

and the upgrading of 348km of the road between Nampula and Cuamba. Phase III being the rehabilitation of 360km between Cuamba

and Lichinga through Mandimba at the border with Malawi and Phase IV comprising rehabilitation of 75km between Liwonde and

Mangochi and construction of two one-stop-border posts between Malawi and Zambia and between maawi and Mozambique are on-

going.

The project was identified under the 10-year Road Sector Investment Programme covering the period 2004 to 2013 as priority for

financing by the Bank Group. Project implementation has successfully been completed. The Bank financed civil works have been

handed over to the to the RDA. Overall the quality of the executed civil works as assessed by the PCR mission is of a high standard.

The completed project has provided improved transport services and access to social services and markets. Compensation of the project

affected persons and other social and environmental management activitivies were successfully implemented. However the

treeplanting has only covered 6 hectares or 30% of the 20 hectares originally planned. The remaining 14 hectares are to be planted

during the 2017 rain season. The RDA has assured the Bank the remaining 14 hectares are to be planted during the upcoming 2017

rain season.

Overall the project has achieved the required progress towards the provision of improved transport infrastructure to the Nacala port

and improvement of accessibility of the communities in the zone of influence to markets and social services.

2. Outcome reporting

Outcome

indicators (as

per RLF; add

more rows as

needed)

Baseline value

(Year) Most recent

value

(A)

End target (B)

(expected value at project completion)

Progress towards

target (% realized) (A/B)

Narrative

assessment (indicative max length:

50 words per outcome)

Core

Sector

Indica

tor(Yes

/No)

Outcome 1:

Improved links

between ports

and major centres

of economic

activity

No

Baseline

.

Not available

Global

competitiveness

from 2.6 in 2010

to 3.6 in 2015.

The outcome depends

on completion of

Phases III and IV of

the Nacala Corridor

and improvements of

the Nacala port

This phase has been

successfully been

completed. Phases

III, IV and

improvement of the

Nacala port are still

ongoing.

No

Outcome 2:

% increased

participation in

regional and

international

trade

0.9 million

tonnes in 2009

1.6 million

tonnes in 2015 Import/export

cargo handled by

Nacala port

increased from 0.9

million

tonnes/annum to

1.6 million

tonnes/annum in

2015

Outcome 3:

Reduced

transport cost.

Composite

vehicle

operating cost:

USD1.48/veh

-km for

heavy

Composite vehicle

operating cost in

2013:

100% The reduction in

VOC has been

achieved with

Yes

5

EUR0.994/veh

-km in 2009

for medium

sized vehicles

and

EUR0.342/veh

-km for

passenger

vehicles.

vehicles and

USD0.40/veh

-km for

passenger

cars.

EUR0.798/veh-

km for medium

sized trucks and

EUR0.297/veh-

km for passenger

cars.

reduction of the

riding quality

from IRI of 7.0 to

2.0.

Outcome 4:

Improved

accessibility of

communities to

social services

and markets.

Speed of

medium sized

trucks at

56.7km/h in

2009; For

passenger cars at

68.3km/h in

2009.

Speed of

medium sized

trucks at

80km/h and

120km/h for

passenger

vehicles

Speed of medium

sized trucks at

71.1km/h and for

passenger cars at

94.5km/h

100% Travel speeds have

increased to more

than the target

speeds

Yes

Outcome 5:

Reduced travel

time cost

EUR0.035/veh-

km for medium

sized vehicles

and

EUR0.024/veh-

km for

passenger

vehicles in 2009

Not measured EUR0.028/veh-km

for medium sized

vehicles and

EUR0.018/veh-km

for passenger

vehicles in 2013.

Not measured. Travel time cost has

been reduced

although the

reduction was not

measured.

Yes

Outcome 6:

Improved

Road Safety

1,072 accidents

in 2009;

83 Fatalities in

2009

70 accidents

and 5

fatalities for

duration of

contract

929 accidents in

2013;

72 Fatalities in 2013

Progress is variable. Improved vehicle

speeds will increase

chances of accidents

especially with

animals on the road

Yes

Rating*(see

IPR

methodology)

Narrative assessment

3 The rehabiliation of the Nyimba-Petauke-Sinda road has fully achieved Outcome 2 and led to reduction in

transport costs (as per VOCs) and travel times, providing the local communities improved access to social

services and markets. Outcome 1 of providing improved links between ports and centres of economic activity

will only be achived when all the Phases of the NRCP are completed and maximum use of the corridor is

achieved.

3. Output reporting

Outputindicators (as specified in the RLF;

add more rows as needed)

Most recent

value

(A)

End target(B)

(expected value at

project completion)

Progress

towards

target (% realized)

(A/B)

Narrative assessment (indicative max length: 50 words per output)

Core

Sector

Indicato

r(Yes/No)

Output 1: Length of

rehabilitatd road

114.7 114.7 100% The road has been rehabilitated in

accordance with the standards and

specifications in the contract and is open to

traffic.

Yes

Output 2: Service

levels of road over

design life and road

condition.

Riding

Quality of

IRI 2.0

currently

Riding Quality of

IRI 2.0 in 2013

100% PCR inspection indicates that the riding

quality target of IRI 2.0 has been achieved.

Yes

Output 3: Road

network condition in

the area of Project

intervention.

Road

network in

good

condition in

Eastern

Road network in

good condition in

Eastern Province

55% in 2013

155% The completed NRCP including the 245.3

km financed by the EU/EIB/Afdb has

added 360km of bituminous road in good

condition to the Eastern Province road

network.

6

Province

86% in 2017

Output 4: Employment

opportunities for

local citizens.

360 total

employed;

8.5% women

At least 50 people

from local

community will be

employed on a

monthly basis

during construction

and 20% women

720%

employment

achievement

with 8.3%

for women

The employment rate has exceeded

the target figures envisaged at

Appraisal

No

Output 5:

Completion of

environmental

enhancement

activities and area of

trees planted.

6 ha of rees

planted

20 ha of trees

planted on the

Project road by

September 2013.

30% Only 6ha of trees have been planted

so far. The intention is to plant the

remaining 14ha during the rain

season starting November 2017.

No

Output 6: Number

of construction

workers reached

with HIV/AIDS/STI

and TB activities.

360 HIV/AIDS

activities to reach

all construction

workers and 20%

peer educators

identified and

trained for the civil

works contract and

campsites by 2014.

100% The workforce was reached by the

HIV/AIDS/STI and TB awareness

No

Output 7: Number

of communities

reached with Road

Safety and

HIV/AIDS

campaigns

Not

measured

Road Safety and

HIV/AIDS

activities to reach at

least 9 communities

by 2014

Not

measured

16 peer educators were trained and these

reached all the 360 employees of the

contractor.

No

Output 8: Number

of schools reached

with Road Safety

and HIV/AIDS/STI

and TB awareness.

20 schools

reached

22 primary and

secondary schools

along the road

reached by 2014.

91% A total of 12,500 students benefitted from

the awareness Ccmpaigns.

No

Output 9: RDA

Contract

Management

Manual developed

100% RDA Contract

Management

Manual in use by

January 2013.

100% The final Contract Management

Manual was sumitted in December

2013 and is currently in use.

No

Rating*(see IPR

methodology) Narrative assessment:

3 The rehabilitation to asphalt concrete (AC) standard of 114.7 km between Nyimba and Sinda thrugh

Petauke to a 6.8m carriageway wit 1.5m shoulders on either side has been achieved and together with

the completed 245.3km sections financed by the EU, EIB and AfD has produced positive impacts on the

communities in the zone of influence. However the original civil works contract period for he Bank

financed ection was 24 months but was justifiably extended by 26 months. The Road Safety Awareness,

HIV/AIDS/STI and TB and the ESMP and RAP were implemented successfully. The Institutional

Support and Capacity Building (ISCB) has strengthened the capacities of RDA staff and has provided a

Contract Management Manual that is currently in use.

4. Development Objective (DO) rating

DO rating (derived

from updated IPR)* Narrative assessment(indicative max length: 250 words

3 The long-term objective of providing Zambia, Malawi and Mozambique with improved road transport

infrastructure to the Nacala Port will only be achived when the remaining phases (Phases III and IV) of the

NRCP are completed. The implementation of the two phases is progressing well. The development objective

of improving the accessibility of the communities to social services and markets has been achieved and has

led to improvement of the livelihood of the communities. Vehicle Operating Costs (VOCs) have reduced by

13.1% for heavy vehicles and 14.9% for light vehicles. Travel speeds estimated at PCR site inspection have

improved beyond the 71.1km/h for medium trucks and 94.5 km/h for passenger vehicles targetted at

Appraisal at project completion. Travel times have likewise also reduced with the increased speeds.

7

5. Beneficiaries (add rows as needed)

Actual(A) Planned(B) Progress towards target (% realized) (A/B)

% of

women

Category (eg. farmers, students)

1,500,000 1,3000,000 115% 49.3 Total beneficiaries in zone of influence

187,500 148,600 115% 49.3 Total households in project area

6. Gender Equality (add rows as needed)

Assessment on the performance of Gender equality in the operation

The various awareness campagins (HIV/AIDS, road safety, gender equality) while targeting the civil works component, they had

consequences beyond the project in influencing people’s attitudes to gender in general and gender in relations to other aspects

such as risk of HIV/AIDS infection. The project also led to increase in income levels for men and women through employment

during construction and afterwards during maintenance. Notable also is the project included in the Special Conditions of Contract

an obligation for contractors to ensure that 20% of the unskilled labour during construction are women. Because of the project,

additional sources of income was realised for women through sales of food items to construction workers. Provision of 9 boreholes

water points in selected communities serving an estimated 1,800 households particulary reduced the burden on the women and

children who are usually responsible for fetching water from long distances. Finally, the Project included construction of 3 simple

market structures (sheds) which the women are the major beneficiaries. This has improved the conditions under which women

sell their produce.

Although not quantified, it was reported that the presence of migrant workers during project construction phase increased the

vulnerability of local communities especially women and girls to diseases such as HIV/AIDS.

7. Unanticipated or additional outcomes (add rows as needed)

Description Type (eg. gender,

climate change, social,

other)

Positive or

negative

Impact on project (High, Medium, Low)

The prescence of a contractor with capacity for road construction

encouraged the local authorities to source funding to upgrade to

bituminous standards the existing gravel access to Petauke Town (3km)

and other access roads in the district (11km) to the rehabilitated road.

Development Positive High

The provision of road studs to the entire road length and street lighting

in populated areas has enhanced night visibility to the motorists and

contributed to road safety.

Road Safety Positive HIgh

Direct jobs and indirect employment through spin off activities brought

extra incomes to wage earners:

Socio-economic Positive High

Including toilets as part of the markets especially in Sinda where none

existed, is serving the larger community living and working near the

market

Social Positive Low

On-job training of unskilled labor has improved opportunities of the

peoject workers finding employment with the same contractor or with

other employers

Socio-economic Positive Medium

8. Lessons learned related to effectiveness (add rows as needed)

Key issues (max 5, add rows as needed) Lessons learned Target audience

Length of contracts of support service providers for road

safety, HIV/AIDS/STI and TB awareness and ESMP

Impementation

If the contracts of the service providers had

covered the entire extension of time they would

have reached more people in the project zone of

influence.

GOZ/RDA/AfDB

Additional Development effectiveness If the Bank had approved GOZ request to utilize

the loan balance, the additional works would

have enhanced the development effectiveness of

the intervention.

GOZ/RDA/AfDB

Due to beauracratic processes at the national level

implementation of the tree planting activities were

delayed, despite funds being available. The target of 20

hectares has not yet been achieved.

If responsible PIU/RDA which is a government

unit had dealt directly with the responsible

Department of Forestry through their senior

Management, instead of leaving the Contractor

and Consultant who are foreign to deal with the

governmenent beauractratic process, they could

have expedited acquisition of the requisite

approvals before project commencement.

GOZ/RDA/AfDB

8

C Efficiency

1. Timeliness

Planned project duration – years

(A) (as per PAR) Actual implementation time – years

(B) (from effectiveness for 1st disb.) Ratio of planned and actual

implementation time (A/B)

Rating*

5.50 (27.09.2010-30.03.2016) 5.83 (24.10.2011-02.08.2017) 0.94 3

Narrative assessment(indicative max length: 250 words)

The loan agreement was signed within 4 months of loan approval; and became effective within five months after signature.

However there was considerable lapse of time of over seven (7) months between effectiveness for first disbursement and actual

firdt disbursement. The commencement of the roadworks was delayed pending the RDA and Bank’s approval of the modified

pavement construction method and the associated additional costs to the contract.

The civil works were planned to be executed in twenty four (24) months from 07 June 2013 to 06 June 2015, followed by a 12

months defect liability period. However, due to justified claims by the contractor for extension of time (EOT) the works contract

was extended by 26 months to 02 August 2017. The Project’s timeliness ratio lies is 0.94 and lies in the range <1 and ≥0.75

which is considered satisfactory performance.

2. Resource use efficiency

Median % physical implementation

of RLF outputs financed by all

financiers (A) (see II.B.3)

Commitment rate (%) (B) (See table 1.C – Total commitment rate of all

financiers)

Ratio of the median percentage

physical implementation and

commitment rate (A/B)

Rating

*

100 77.32 1.29 4


The physical outputs of the project have been fully achieved and physical implementation is 100%. The overall disbursement

rate at completion stands at 77.32% indicating that the appraisal outputs were achieved at a lower cost to realize the development

objectives of the project. It further indicates that the project benefitted from the use of international competitive bidding to

reduce tender rates from the bidders. The offer from the best evaluated bidder was 96% of the appraisal estimate. The ratio of

the percentage physical implementation and commitment rate is 1.29, implying that the performance is Highly Satisfactory and

the project delivered all its outputs within budget. However, due to delays in the commencement of the tree planting activities,

the full budget was not utilised. Only 25% was utilised.

3. Cost benefit analysis

Economic Rate of Return

(at appraisal)

Updated Economic Rate of Return

(at completion)

Rating

*

Nyimba-Petauke: 15.29%; Petauke-Sinda: 15.83% Nyimba-Petauke: 38.5%; Petauke-Sinda: 39.00% 4


At appraisal , the methodology for the economic analysis was based on cost benefit analysis by comparing the “with” and

“without “ project scenarios over a period of 20 years, using the Road Economic Decision Model (RED). For the PCR the

Highway Development and Management Model (HDM-4) has been used.

The traffic levels at appraisal stage in 2009 gave Average Annual Daily Traffic (AADT) of 290 with a heavy vehicle content of 33.1%

on the section leading to Nyimba the beginning of the project and an AADT of 453 vehicles with a heavy vehicle content of 28,5% on

the Petauke-Sinda section covering 47km of the project.

Traffic growth at appraisal was determined using historic trends and transport demand depending on GDP growth. At appraisal

the medium traffic growth scenario was used for economic analysis over four segments covering the 20 year analysis period;

6.3% from 2011-2015; 5.4% from 2016-2020; 5.4% from 2021 to 2025 and 4.9% from 2026 to 2030.

The sections of the NRCP II financed under the EU, EIB and the AfD, were subjected to a technical evaluation after identifying

pavement failures on some of the completed sections. A seven day count was undertaken during October 2016 to determine the

existing traffic and project pavement loading on the road sections as compared to the original design targets. The counts covered

the entire NRCP II with the counting stations located at; (i) Nyimba Town East Boundary; (ii) Katete Town West of New

Roundabout; (iii) Mwami Village at the border with Malawi. The October 2016 counts at Nyimba yielded 1,176 vehicles per

day with a 22.4% content (264 heavies). Those at Katete yielded 2,461 vehicles per day with a 10.32% heavy vehicle content

(254 heavies). Using the Nyimba traffic counts, traffic has grown by 305.5% since the feasibility study counts of 2009 giving a

growth of 15% per annum.

The project financial cost at appraisal was USD622,000 per km and is found to be USD652,000 per km for the PCR, an increase

of 4.8%. The appraisal economic internal rate of return (IRR) was 15.29% for the Nyimba-Petauke section and 15.83% for the

Petauke-Sinda section with respective NPVs of USD11.91 million and USD9.32 million for the two sections. The PCR EIRRs

stand at 38.1% and 38,6% for the Nyimba-Petauke and Petauke –Sinda respectively and NPVs of USD83.88 million for the

Nyimba- Petauke and USD59.49 million for the Petaule-Sinda. The EIRRs for the PCR are 149.2% and 143.8% higher than the

9

appraisal EIRRs. The higher EIRRs are attributed to the significant increase in traffic averaging 15% per annum over the period.

The intervention gives a return on investment above the opportunity cost of capital in Zambia of 12% and therefore the project

remains a worthwhile investment.

The average VOC for heavy vehicles in 2009 based on HDM4 estimates is USD1.70/veh-km for both the Nyimba-Petauke and

Petauke-Sinda sections and USD0.48/veh-km and USD0.49/veh-km for light vehicles for the Nyimba-Petauke and Petauke-

Sinda sections respectively. For the PCR VOCs have reduced to USD1.49/veh-km and USD1.46/veh-km for heavy vehicles

for the Nyimba-Petauke and Petauke-Sinda sections respectively and to USD0.40/km for light vehicles for both sections. On

the average the VOCs have reduced by 13.2% and 17.5% for heavy vehicles and light vehicles respectively. The average speed

for medium sixed trucks was projected to increase by 25.4% from 56.7 km/h in 2009 to 71,1 km/h in 2013 and for passenger

vehicles to increase by 37.9% from 68.5 km/h in 2009 to 94.5 km/h in 2013. It was observed during the PCR site visit that the

travel speed for medium sized vehicles had increasd to 80 km/h and for passenger vehicles to 120 km/h and above.

On the average the project engaged 360 unskilled labourers of which 30 or 8,3% were women. This employment generated an

income of USD0.51 million per month which was injected into the local economy when the full compliment of staff was engaged

by the contractor. Of this USD0.043 million per month accrued to women. Other economic activities such as provision of

food to construction workers, hospitality services and roadside vending offered additional income generating

opportunities for the communities along the project.

4. Implementation Progress (IP)

IP Rating (derived from updated IPR)

Narrative comments (commenting specifically on those IP items that were rated Unsatisfactory or Highly

Unsatisfactory, as per last IPR). (indicative max length: 500 words)

4

44

The criterion for compliance with covenants was rated highly satisfactory and the two criteria namely; (i) project

systems and procedures, and ii) project execution and financing were rated as satisfactory.

Compliance with project convenants was graded as highly satisfactory because GOZ timeously fulfilled all the

conditions precedent to entry into force for the loan agreement and the three conditions prior to first

disbursement of the loan required by the Bank towards the financing of the project road. Bank financing was

available although there was a lapse of seven (7) months before the first disbursement was made. This was due to

the delay in the procurement of the consultant for Institutional Support and Capacipy Development. The additional

three conditions for further disbursements were timeously fulfilled.

Procurement complied with Bank Rules and Procedures for Procurement. The civil works contract was procured

on the basis of International Competitive Bidding (ICB) with submission of bids by nine (9) bidders out of the 13

pre-qualified contractors which resulted in the bidders offering low tender rates. Consulting services were procured

in accordance with the Bank Rules and Procedures for the Use of Consultants. Audit reports were submitted to the

Bank within the periods specified by Bank Rules.

The Bank financed 100% of the civil works and consulting services. Government was limited to covering the cost

of compensation and resettlement. The Bank disbursed timeously to the contractor, supervision consultant and

other service providers. Government paid for compensation and resettlemenet prior to commencement of the civil

works.

In terms of Environment and Social Safeguards, the contractor satisfactorily complied with the requirements of the

ESMP. The project provided markets at three sites on the road side and 9 boreholes for the communities as social

infrastructure.

5. Lessons learned related to efficiency

Key issues (max 5, add rows as needed) Lessons learned Target

audience

Increase in quantities Inclusion of a Design Review prior to the tendering process

would have identified the under-estimates in quantities due

to exclusion of critical pay items. It is therefore essential

that the detailed engineering designs and documents are

critically reviewed pior to tendering.

GOZ/RDA/AfD

B

Contract Price Adjustment (CPA). The Banks Procurement Guidelines provides for Contract

Price Adjestment (CPA) for contracts longer than 18

months. This contract was based on a fixed price and no

provision was made for the Schedule of Contract

Adjustment Data for CPA. Thee had to be negotiated with

the contractor during implementation. This puts the

Borrower at risk. Future contracts of this size must ensure

that provisions are made for CPA.

GOZ/RDA/AfD

B

10

Restriction of number of pre-qualified bidders. The project benefited from the number of prequalified

bidders (13) of which nine (9) submitted bids. The number

of pre-qualified bidders is usually limited to six (6). The

offered rates ensured realization of the outputs of the project

with 93.9% of the cost estimated at appraisal. The cost at

completion was USD650,000/km which compares well with

km costs in the region.

GOZ/RDA/AfD

B

D Sustainability

1. Financial sustainability

Rating

* Narrative assessment (indicative max length: 250 words)

3 Over the last six (6) years road financing has been sourced from (i) Government allocations; (ii) road user charges and

(iii) development partners. Local resources on the average have been split at 65/35 between Governement/development

partners and road user charges. The road user charges derive revenues from fuel levies, license fees, inland toll fees,

transit fees and weighbridge fines and their levels have not been adjusted since the establishment of the Road Fund to

reflect the needs of the road network. The Road Fund Act No 13 of 2002 established the National Road Fund Agency

(NRFA) to manage and administer the Road Fund. On the average Government allocates USD255 million per annum

as compared to the annual road user revenues of USD138 million. Other revenue surces for the Road Fund are being

explored to expand the collection base. In the short to medium term, the existing financing arrangement provides

sufficient resources to keep the road network at good to fair level of service.

For the long-term the Government of Zambia has developed a ten year National Road Maintenance Strategy covering

the period 2015-2024 with the objective of reducing road maintenance backlog and generally improve the condition

of the road network. The completed road will benefit from these initiatives.

2. Institutional sustainability and strengthening of capacities

Rating


3 The Public Roads Act No 12 of 2002 established the Road Development Agency (RDA) to take over from the Roads

Department in the Ministry of Works and Supply the planning, managing and coordinating the road network of the

country with finaning from the Road Fund. These reforms provide structures that manage the road network outside the

public service. The Direcorate of Maintenance in the RDA is directly responsible for the national road network and

therefore will be responsible for maintaining the completed road.

The RDA is tasked to implement a significant volume of works that include periodic and routine maintenance of the

gravel and surfaced network, rehabiliatation of the older sections of the network and construction of new roads and

upgrading of existing gravel roads. The significant volume of works requires a technically sound human resource base

to ensure that the road network is maintained at acceptable levels of service.

The project therefore included an Institutional Capacity Development component which aimed at strengthening the

RDA in project management, procurement, contract management and preparation of bidding and contract documents.

The purpose was to provide the RDA personnel with capabilities for the management of the extensive road network.

Future Bank interventions should include institutional strengthening of the transport related entities to enhance their

management capabilities.

3. Ownership and sustainability of partnerships

Rating


3 The project underwent extensive consultation with stakeholders inclusive of the SADC Secretariat, Government

agencies, project beneficiaries, DPs, transport operators, shippers’ associations, manufacturers associations, chamber of

commerce, ward counsellors, local leaders, village heads, project beneficiaries and communities, community based

organizations and NGOs.

The Development Partners (DPs) have maintained coordination of road sector issues through the Road Sector Donor

Group (RSDP). The group comprises all DPs supporting the road sector, with representation from governement

Ministries and private sector entities. The RSDP at project start-up was chaired by the AfDB. The group, meets regularly

in a Joint Donor Forum to harmonize the approach taken by DPs with regards to institutional, policy and project specific

financing and implementation matters. The group serves as a platform for interactions with Government to ensure that

results and outcomes are achieved as per agreed indicators.

11

With financial assistance from the World Bank (WB) Government intends initially piloting and eventually rolling out

the Output and Performance-Based Contracting (OPRC) to ensure value for money and sustainability in road

maintenance.

4. Environmental and social sustainability

Rating


3 Pavement rehabilitation comprised recycling the existing pavment layers through milling, and cement

stabilisation to a sub-base. Crushed stone material was then inported for the base layer. Construction

therefore remained on the existing alignment and therefore did not encroach on any area that has been

designated as environmentally sensitive such as natural parks, game reserves; wild life corridors,

archaeological sites and habitat of any endanger species. Thus the disturbance to the surrounding habitat

was minimal.

An environment impact assessment was undertaken in compliance with the Bank’s requirments and in consultation

with the country’s National Environment Management Authority (ZEMA). Subsequently, an ESMP was prepared to

aid implementation of mitigation measures and monitoring compliance to environment and social safeguards during

project implementation. The contractor accordingly prepared the CEMPs and adequately managed impacts arising

not only at the construction site but also at quarries, borrow pits and material storage areas serving the project. In

addition, impacts such as air and soil pollution from asphalt plant, dust, noise from construction equipment and

blasting; fuel and oil spills, trash and garbage; and the presence of non-resident labor forces were satisfactorily

managed.

Engagement of the local NGOs to implement the various awareness campaigns on HIV/AIDS and road safety not

only enhanced local capacity but also increased the sustainability of these campaigns by RDA and district leadership

since service providers are available locally.

5. Lessons learned related to sustainability

Key issues (max 5, add

rows as needed) Lessons learned Target audience

Financial Sustainability The accruing of road user charges to the Ministry of Finance and subsequent

remittance to the NRFA does not guarantee smooth flow of financing required

for routine and periodic maintenance. There is a risk to the long term viability of

the project. Government should reconsider direct accruing of road user charges

directly to the Road Fund to ensure that the finances are ring-fenced for road

management.

The adoption of Output and Performance-Based Contracting (OPRC) for

maintenance is an initiative that will ensure value for money road maintenance

operations when implemented and well managed.

GOZ/RDA/AfDB

Axle Load Control At 34% rate of overloading on the NRCP there is a need for providing temporary

facilities for axle load control between Luangwa and Mwami at the border with

Malawi. No weighbridge facility is available on the 360km completed section of

the NRCP. The planned facilities at Katete and mobile weigh facilities are yet to

operate and thereofore there is a risk of premature failure of the road due to

overloading.

GOZ/RDA/AfDB

Project Ownership Continued involvement of the beneficiaries after completion is key to ownership

of the project outputs.

GOZ/RDA/AfDB

12

III Performance of stakeholders

1. Bank performance

Rating

* Narrative assessment by the Borrower on the Bank’s performance, as well as any other aspects of the project

(both quantitative and qualitative). See guidance note on issues to cover.(indicative max length: 250 words)

3 During the procurement and start-up phase, the Task Manager was stationed in Lusaka which provided the Project

Coordinator easy access to guidance on Bank Rules and Procedures. The Bank was rigid on some of the issues that

impacted the project which could not have been foreseen at planning stage leading to prolonged resolution of the

challenges. However, the Bank provided close and extensive project supervision throughout the period of

implementation. Bank’s missions assisted the Executing Agency to address technical and disbursement issues to

expedite project implementation and therefore Bank’s performance was satisfactory.

Comments to be inserted by the Bank on its own performance (both quantitative and qualitative). See guidance note on

issues to cover. (indicative max length: 250 words)

The Bank undertook desk supervisions through review of the monthly progress reports and where necessary contact was made

to bring to the attention of the RDA any concerns noted in the monthly reports. This was followed by field supervision missions

every six months which included site inspections and meetings with the supervision consultant and the contractor to discuss

challenges on site, progress of the civil works and disbursement. The field missions were undertaken with the RDA Project

Coordinator. Other experts were incorporated in the supervision missions to provide input in their field of expertise and advise

on the implementation of environmental, social and fudiciary safeguards. For each mission, de-briefing sessions were held with

the RDA and MOF and aide memoires recording the findings of the Bank signed by both perties. The missions also served as

media for discussing Bank Rules and Procedures.

The transfer of the Task Manager from Head Office to the Zambia Office and subsequently transferring the Task management

responsibility to the Regional Office provided easy and timeous communication between the RDA and the Bank. In total twelve

(12) supervision missions were undertaken by the Bank. Overall the Bank performed satisfactorily in providing guidance both

during the inception phase and project implementation phase.The Bank therefore provided adequate support from project

inception to completion and Bank performance is rated satisfactory.

Key issues (related to Bank

performance, max 5, add rows

as needed) Lessons learned

Utilization of loan

balance

At completion a loan balance of more than UA15.73 million has been realised. The balance should

have been utilized to enhance the development effectiveness of the project. Although GOZ

requested, the approval by the Bank was not granted.

2. Borrower performance

Rating

* Narrative assessment on the Borrower performance to be inserted by the Bank (both quantitative and

qualitative, depending on available information). See guidance note.(indicative max length: 250 words)

3 The performance of the Government of Zambia, through the RDA to achieve the project development objectives, was

satisfactoriry from project inception to completion.

The Borrower deligently fulfilled the loan conditions precedent to entry into force and the conditions precedent to first

disbursement to facilitate disbursement to service providers. Compensation of the project affectd persons was done

timeously prior to construction. The RDA designated a Project Coordinator (PC) whose qualifications and experience

were acceptable to the Bank. The PC was the project’s contact person and among other duries provided assistance to the

Bank’s supervision missions.

GOZ and RDA were responsive to recommendations of supervision missions. Project procurement, financial

management, and monitoring conformed to the Bank’s rules of procedures. Audit and quarterly progress reports were

submitted regularly, and in a timely manner and no significant weaknesses were identified from audit reports reviewed

by the Bank.

Key issues (related to Borrower performance, max 5, add rows as needed) Lessons learned

Review of Design Documents The Implementing agency should ensure that the design

documents are critically reviewed to avoid increases in

quantities due to modifications during execution.

Management Capacity With the number of ongoing contracts increasing, there is a

need to strengthen the capacity of the RDA through technical

assistance support incorporated in new projects financed by

the Bank. However the technical assistance needs to be

structured in such a way that there is clear capacity building

and skills transfer.

13

Contract Price Adjustment The bid evaluation process should have identified the

omission of the Schedule of Contract Adjustment Data for

CPA calculation as a point for negotiation before award of the

contract. Negotiation during project implementation puts the

Implemeting agency at risk of increase in project costs.

Dispute Resolution The Dispute Review Board did a commendable job in

resolving disputes between the RDA and the contractor.

Future projects should maintain provision of Dispute Review

Boards.

Borrower Project Completion Report Bank Rules and Procedures provide for the preparation of a

Borrower Completion Report to form the basis of preparation

of the Bank Project Completion Report. None was prepared.

Approval processes Project execution was delayed due to GOZ lengthy processes.

3. Performance of other stakeholders

Rating

* Narrative assessment on the performance of other stakeholders, including co-financiers, contractors and service

providers. See guidance note on issues to cover.(indicative max length: 250 words)

3 From the PCR site visit the quality of the completed road works is satisfactory. This can be attributed to good

performance of the contractor and supervising consultant. Support from the Project Liaison Committee (PLC) resolved

issues with the communities timeously. The project benefitted from the support service providers for road safety,

HIV/AIDS/STI and TB Awareness and ESMP Implementation but the length of the contract periods fell short of the

contract period and therefore left gaps in implementation. The consultant for the Institutional Capacity Building (ISCB)

completed the required tasks successfully.

Key issues (related to

performance of other stakeholders,

max 5, add rows as needed)

Lessons learned(max 5) Target audience (for

lessons learned)

Dispute Resolution The Bank should review its policy and start financing the cost of Dispute

Review Boards as their work facilitate harmonious relations between the

parties involved in project implementation.

GOZ/RDA/AfDB

Stakeholder Participation Working through Project Liaison Committee (PLC) composed of

members drawn from the various district department and the communities

as the primary mechanism provided an effective avenue for stakeholder

participation.

RDA

V Summary of key lessons learned and recommendations

1. Key lessons learned

Key issues (max 5, add rows as needed) Key lessons learned Target audience

Government Development Policies At apparaisal Government had the requisite policies

in place; like; the National Long Term Vision 2030

(NLTV 2030), the Poverty Reduction Strategy of

Zambia (PRSC 2006-2010), the Fifth National

Development Plan (FNDP) 2006-2010, the

Transport Sector Policy of 2002 and the Road

Sector Investment Program (ROADSIP). The

policies were consistent with Bank strategies and

they guided the bank in the identification,

preparation and appraisal of the project

GOZ/RDA/AfDB

Design Review Provision for design review prior to the bidding

process would have identified omitted and under-

estimated quantities of major pay items.

GOZ/RDA/AfDB

Financial Susainability Ring-fencing the road user charges would ensure

availability of financing for routine and periodic

maintenance instead of the crrent collection by

GOZ and remitting to the NRFA.

GOZ/NRFA/RDA

14

Vandalism Encouraging the beneficiaries to report offenders

and introduction of stringent measures would

eliminate vandalism.

GOZ/RDA

Axle Load Control There is a need of providing interim overload

control measures along the completed road to

reduce the risk of pre-mature failure of the

pavement due to overloading.

GOZ/RDA

2. Key recommendations (with particular emphasis on ensuring sustainability of project benefits)

Key issue (max 10, add rows as

needed) Key recommendation Responsible Deadline

Maintenance Sustainability Guarrantee the flow of maintenace funding by ring-fencing

the road user charges

GOZ/NRFA/RDA Immediate

Protection of the Invesment To maintain acceptable levels of service of the road scheduled

routine and periodic maintenance actions are essential

supported by protecting the pavement from premature failure

due to overloading.

GOZ/RDA Immediate

Stakeholder Support Mobilization of stakeholder support beyond project

completion through sensitization will guarantee ownership of

the infrastructure.

GOZ/RDA Immediate

Review of Documents The critical review of study documents eliminates correction

actions during project implementation.

GOZ/RDA All future

projects

The Road Reserve The road reserve should be protected from encroachment to

serve as an area (i) for accommodating traffic during major

maintence operations; (ii) for future expansion works to

improve service levels; and (iii) acting as a refugee for

distressed vehicles. Enforcement structures should be put in

place.

GOZ/RDA Continous

V Overall PCR rating

Dimensions and criteria Rating*

DIMENSION A: RELEVANCE

Relevance of project development objective (II.A.1) 4

Relevance of project design (II.A.2) 3.5

DIMENSION B: EFFECTIVENESS

Development Objective (DO) (II.B.4) 3

DIMENSION C: EFFICIENCY

Timeliness (II.C.1) 3

Resource use efficiency (II.C.2) 4

Cost-benefit analysis (II.C.3) 4

Implementation Progress (IP) (II.C.4) 3.5

DIMENSION D: SUSTAINABILITY

Financial sustainability (II.D.1) 3

Institutional sustainability and strengthening of capacities (II.D.2) 3

Ownership and sustainability of partnerships (II.D.3) 3

Environmental and social sustainability (II.D.4) 3

AVERAGE OF THE DIMENSION RATINGS 3.34

OVERALL PROJECT COMPLETION RATING 3(S)

15

VI Acronyms and abbreviations

Acronym

(add rows

as needed)

Full name

ADB

AfD

AfDB

BoQ

CCIs

CEMP

CSP

DP

EIB

EIRR

ESIA

ESMP

EU

FE

GOZ

HIV/AIDS

HLC

LC

MOF

NGO

NPV

PA

PAP

RAP

RFP

TOR

UA

VOC

African Development Bank

Agence Française de Developpment

African Development Fund

Bill of Quantities

Cross Cutting Issues

Construction Environmental Management PLan

Country Strategy Paper

Development Partner

European Investment Bank

Economic Internal Rate of Return

Environmental and Social Impact Assessment

Environmental and Social Management Plan

European Union

Foreign Exchange

Government of Zambia

HIV/AIDS= Immuno Virus/Acquired Immune Deficiency

Syndrome’

HIV/AIDS Liaison Committees

Local Currency.

Ministry of Finance

Non Government Organization

Net Present Value

Project Area

Project Affected Persons

Resettlement Action Plan

Request for Proposals

Terms of Reference

Unit of Account

Vehicle Operating Costs

Required attachment:Updated Implementation Progress and Results Report (IPR)– the date should be the same as the PCR

mission (Not Applicable).