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PROJECT INFORMATION DOCUMENT (PID)
APPRAISAL STAGE
Project Name
Region
Sector
Project ID
Borrower(s)
Implementing Agency
Environment Category
Date PID Prepared
Date of Appraisal
Authorization
Date of Board Approval
Report No.: AB4659
Roads and Bridges Management and Maintenance Program Phase II Additional Financing
AFRICA
Roads and highways (100%)
P114880
GOVERNMENT OF MOZAMBIQUE
Road Fund (Fundo de Estradas)
[] A [X] B [ ] C [ ] FI [ ] TBD (to be determined)
March 27, 2009
April 6, 2009
May 21, 2009
1. Country and Sector Background
Country Context
a.
Mozambique has been a strong economic and social performer in Africa. Since the
devastating civil war ended in 1992, the country has enjoyed a remarkable economic
recovery, achieving an average annual economic growth rate of 8 percent between 1996
and 2007. As a result, the poverty headcount index fell by 15 percentage points between
1997 and 2003, bringing almost 3 million people (of a total population of 20 million) above
the poverty line and out of extreme poverty. In addition, further decentralization and
enhanced delivery of key services, especially in rural areas is required. Access to transport
infrastructure and services plays a significant role in promoting the rural economy,
providing social services, and improving market environments.
Sector Issues
b.
Mozambique's classified road network-the national and regional roads-consists of 29,349
kilometers of roads, of which 5,814 kilometers (or 20 percent) are paved. Road density per
land area is low at 46 meters per square kilometer due to the large size of Mozambique, but
quite average, relative to the population, at 423 meters per 1,000 populations. Preliminary
estimates suggest that the network could provide potential access (measured as those living
within two kilometers of any road in the network) to around 41 percent of the nation's rural
population. Because of the poor condition of the network, the percentage of the rural
population that has reliable, all-year access is much smaller. One of the main objectives of
the Roads and Bridges Management and Maintenance Project Phase II (RBMMP2) is to
increase the number of rural residents with reliable access to social and economic facilities.
The aforementioned statistics suggest that a much larger local road network will be
required to connect all residents.
Sector Policy and Strategy
c.
During 2006, in close collaboration with road sector DPs, the GOM developed Programa
Integrado do Sector de Estradas (PRISE) (Integrated Road Sector Program) 2007-2009
road sector program, which is based on the 2001-11 Road Sector Strategy (RSS) and the
Road Sector Policy. To support GoM in implementation of the Road Sector Strategy 20012011, a 10-year Adaptable Program Loan (APL), RBMMP was designed in three phases.
RBMMP Phase 1 (RBMMP1) successfully achieved its objectives and closed on June 30,
2007, though due to cost increases it could not complete the rehabilitation of three sections
of the N1 which have now been taken up by the on going RBMMP2. The approval of
RBMMP3 is contingent on the successful completion of triggers, which include the
requirement that road works under RBMMP2 are substantially completed.
d.
Road sector expenditures between 2001 and 2006 were about US$ 700 million equivalent
or on average US$ 140 million per annum. It has been recognized that past road sector
investments were insufficient to support the country's poverty reduction goals. PRISE
therefore planned to substantially increase expenditures for both maintenance and
investment. Total planned sector expenditure under PRISE 2007-09 is US$ 1,043 million,
or about US$ 347 million per annum (about 4.4 percent of GDP). There is strong
commitment by all DPs to harmonize their approaches in line with the Paris Protocol.
Hence it was decided that PRISE would be implemented in a sector-wide approach
(SWAp) mode. The World Bank team has been instrumental in the preparation of PRISE
and the furthering of donor harmonization.
2. Objectives
The project development objective of RBMMP2 is to improve access of the population to allseason roads through maintenance, rehabilitation and upgrading of the classified road network
and the achievement of the PDO is measured through (a) percentage of classified roads in good
and fair condition; and (b) the percentage of the rural population within two kilometers of an allseason road.
3. Rationale for Bank Involvement
The main purpose of the AF credit is to cover the additional costs for the civil work contracts on
National Highway N1. The lowest evaluated bids received on July 28, 2008 for the three civil
works contracts planned to be financed under RBMMP2 (without contingencies) amounted to
US$121.2 million and were 133 percent above the appraisal estimate of US$51.2 million. IDA
gave its no objection to award the contract for lot 2 (Xai-Xai – Chissibuca) for an amount of
US$50.8 million on November 5, 2008 and this contract is currently ongoing. Based on
recommendations of IDA, lot 1 (Jardim – Benfica) was issued for re-bidding to the pre-qualified
bidders after re-scoping, and the lowest evaluated bid received on February 25, 2009 was
US$21.7 million (18 percent below the bid of July 2008). For lot 3 (Massinga – Nhachengue)
GoM has found another financier (Government of Portugal) and IDA funding is no longer
needed. The additional costs for lots 1 and 2, including contingencies of US$4.1 million, are
US$25 million. Improvement of these three sections of the N1 was already planned under
RBMMP1 but was relegated to RBMMP2 due to insufficient funding. RBMMP1 financed the
rehabilitation and upgrading of 670 kilometers of the N1 between Maputo and Inchope to meet
national standards and the requirements of current traffic volumes. Accordingly, these three
sections represent “gaps” under RBMMP1. They are integral parts of the key backbone SouthNorth road of Mozambique, and not doing them, or doing them only partly, would mean that the
PDO of RBMMP2 would not be achieved.
4. Description
The amount allocated under category 3 of the credit (consultant’s services, with US$3.12 million
earmarked) is insufficient to finance both the supervision of three contracts on N1 and the
preparation of designs and bidding documents for works that would be financed under the
follow-on RBMMP3 project as originally intended and reflected in the PAD and FA of
RBMMP2. The amount was curtailed due to the limited IDA envelope that was available at the
time of project preparation (US$100 million as against the originally planned US$135 million of
the APL2). Furthermore, following the visit of the World Bank’s President to Mozambique in
early 2008, the GOM specifically requested to commence engineering design early for roads to
be financed under RBMMP3. It is therefore proposed to allocate an additional amount of US$ 5
million to this category to cover the respective funding gap.
5. Financing
Source:
BORROWER/RECIPIENT
International Development Association (IDA)
Total
($m.)
0
30
30
6. Implementation
Implementation arrangements will remain as agreed under RBMMP APL 2, P083325.
7. Sustainability
Sustainability remains unchanged as under RBMMP APL 2, P083325.
8. Lessons Learned from Past Operations in the Country/Sector
Lessons learned are as under RBMMP APL 2, P083325
9. Safeguard Policies (including public consultation)
Safeguard Policies Triggered by the Project
Environmental Assessment (OP/BP 4.01)
Natural Habitats (OP/BP 4.04)
Pest Management (OP 4.09)
Physical Cultural Resources (OP/BP 4.11)
Involuntary Resettlement (OP/BP 4.12)
Indigenous Peoples (OP/BP 4.10)
Forests (OP/BP 4.36)
Safety of Dams (OP/BP 4.37)
Projects in Disputed Areas (OP/BP 7.60)*
Projects on International Waterways (OP/BP 7.50)
Yes
[X]
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No
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[X]
[X]
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[X]
[X]
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[X]
10. Contact point
Contact: Dieter E. Schelling
Title: Lead Transport Specialist
Tel: 5355+3273
Fax:
Email: [email protected]
Location: Dar Es Salaam, Tanzania (IBRD)
11. For more information contact:
The InfoShop
The World Bank
1818 H Street, NW
Washington, D.C. 20433
Telephone: (202) 458-4500
Fax: (202) 522-1500
Email: [email protected]
Web: http://www.worldbank.org/infoshop
*
By supporting the proposed project, the Bank does not intend to prejudice the final determination of the parties' claims on the
disputed areas