AFRICAN DEVELOPMENT BANK GROUP BENIN PARAKOU URBAN ... · development project, the Bank will...
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AFRICAN DEVELOPMENT BANK GROUP BENIN PARAKOU URBAN TRANSPORT PROJECT OITC DEPARTMENT September 2014 Translated document
Transcript of AFRICAN DEVELOPMENT BANK GROUP BENIN PARAKOU URBAN ... · development project, the Bank will...
AFRICAN DEVELOPMENT BANK GROUP
BENIN
PARAKOU URBAN TRANSPORT PROJECT
OITC DEPARTMENT
September 2014
Translated document
TABLE OF CONTENTS
I – STRATEGIC THRUST AND RATIONALE ...................................................................... 1
1.1. Project Background ..................................................................................................... 1
1.2. Project Linkages with Country and Regional Strategies ............................................. 1
1.3. Aid Coordination ......................................................................................................... 2
II – Project Description .......................................................................................................... 3
2.1 Project Objectives ........................................................................................................ 3
2.2 Project Components ..................................................................................................... 3
2.3. Technical Solutions Adopted and Alternatives Explored ............................................ 4
2.4. Project Type ................................................................................................................ 5
2.5. Project Cost Estimate and Financing Arrangements ................................................... 5
2.6. Project Area and Targeted Beneficiaries ..................................................................... 6
2.7. Participatory Process for Project Identification, Design and Implementation ............ 7
2.8. Reflecting Bank Group Experience and Lessons in Project Design ........................... 7
2.9. Key Performance Indicators ........................................................................................ 8
III –FEASIBILITY ..................................................................................................................... 8
3.1 Economic and Financial Performance ......................................................................... 8
3.2. Environmental and Social Impact ................................................................................ 9
IV –IMPLEMENTATION ....................................................................................................... 12
4.1. Implementation Arrangements .................................................................................. 12
4.2. Monitoring ................................................................................................................. 14
4.3. Governance ................................................................................................................ 14
4.4. Sustainability ............................................................................................................. 15
4.5. Risk Management ...................................................................................................... 16
4.6. Knowledge Building .................................................................................................. 16
V – LEGAL FRAMEWORK ................................................................................................... 17
5.1. Legal Instrument ....................................................................................................... 17
5.2. Conditions for Bank Intervention .............................................................................. 17
5.3. Compliance with Bank Policies ................................................................................. 18
5.4. Constraint Related to Frontloading............................................................................ 18
VI – CONCLUSIONS AND RECOMMENDATIONS ...................................................... 18
6.1. Conclusions ............................................................................................................... 18
6.2. Recommendations ..................................................................................................... 18
Appendix i. Comparative socio-economic indicators of benin.
Appendix ii: table of Bank portfolio in benin
Apendix iii: Major Related Projects Financed by the Bank and Benin’s other Development
Partners
Appendix iv.Justification of Frontloading for Benin
Appendix v. Map of the project area
i
Currency Equivalents
May 2014
UA 1 = CFAF 733.957
UA 1 = USD 1.54969
UA 1 = EUR 1.11891
Fiscal Year
1 January - 31 December
Weights and Measures
1 metric tonne = 2 204 pounds
1 kilogramme (kg) = 2.200 pounds
1 metre (m) = 3.281 feet
1 millimetre (mm) = 0.03937 inch
1 kilometre (km) = 0.621 mile
1 hectare (ha) = 2.471 acres
Acronyms and Abbreviations
AFD French Development Agency!
APD Avant-Projet Détaillé (Detailed Design Studies)
BAD African Development Bank
CNSR National Road Safety Center
CPTF Committee of Technical and Financial Partners
DGTP Directorate-General of Public Works
CSP Country Strategy Paper
ADF African Development Fund
EDF European Development Fund
GEF Global Environment Facility
FR Road Fund
INSAE National Institute of Statistics and Economic Analysis
MDGs Millennium Development Goals
PACITR Community Infrastructure and Road Transport Action Programme
ESMP Environmental and Social Management Plan
PRFTTRIE Regional Programme to Facilitate Inter-State Road Transport and Transit
RNIE Inter-State Trunk Roads
LTS Long Term Strategy
UA Unit of Account
EU European Union
USD United States Dollar
PIA Project Impact Area
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Project Information Sheet
Client Information
BORROWER: Benin
DONEE: Benin
PROJECT NAME: Parakou Urban Transport Project.
LOCATION: Department of Borgou in Benin.
EXECUTING AGENCY: Ministry of Public Works and Transport (MTPT) of Benin,
Financing Plan
Source Amount (UA) Amount (US$) Instrument
ADF
23 800 000
Loan
ADF 11 530 415 Loan
GEF 1 201 256 1 861 574 Grant
BOAD 34 042848 Loan
Government of Benin 7 591 256 Counterpart Fund
TOTAL COST 78 165 774
ADB Key Financial Information
Loan Currency
Unit of Account (UA)
Type of Interest* N/A
Commitment Fee on ADF Loan * 0.5% per annum, on the undisbursed portion of the loan
120 days after the signing of the loan agreement
Service Fee on ADF Loan 0.75% per annum on the amount disbursed and outstanding
Other Charges * N/A
Maturity 40 years
Grace Period 5 years
FRR, NPV (baseline case) CFAF 86.082 Billion
ERR (baseline case) 28.42%
Timeframe – Main Milestones (Expected)
Concept Note Approval
February 2014
Project Approval September 2014
Effectiveness March 2015
Last Disbursement December 2020
Completion December 2019
Last Repayment 2074
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EXECUTIVE SUMMARY
Project Overview
1. The Parakou Urban Transport Project aims to upgrade urban mobility in Parakou and
improve living conditions of people in the project area while reducing road accidents. The
project will rehabilitate and widen the 17.55 km main roads of the city into 2x2 lanes. The
total cost of the project net of taxes and customs duties is estimated at UA 78.17 million
(UA 53.24 M in foreign exchange and UA 23.8 M in local currency) and will be financed
by the Government (UA 7.59 M), ADF (UA 35.33 M which includes 23,8 MoUA in 2014
and 11,53 MoUA in 2015), GEF (UA 1.20 M) and BOAD (UA 34.04 M).
2. Given the "Frontloading" requirements that a country cannot commit more than 50% of its
allocation during the first year of the relevant ADF cycle, it is therefore recommended that
the ADF will grant to the Government of Benin a UA 23, 80 million loan under 2014,
representing a portion of UA 35.33 million needed to co-finance the project. The balance
of UA 11.53 million will be submitted to the Board‘s approval during the year 2015 on
Lapse of Time basis.
3. Project activities will be implemented from June 2015 to December 2020. The expected
outcomes for the project thereof include improving the average speed of traffic at peak
times on the two project roads, reducing road accidents, creating jobs et improving the
productivity of urban economic activities in Parakou. The development of the city of
Parakou will attract some many people and businesses, resulting in increased agricultural
production and improved household incomes in the Department of Borgu while ensuring
competitiveness of the whole country.
4. The project will contribute to poverty reduction in the PIA by improving access to basic
social services and strengthening the activities of women and other disadvantaged groups
through the creation of socio-economic activities in the city of Parakou.
Needs Assessment
5. Parakou is the third largest city with over 200,000 inhabitants and is the regional capital of
one of the most productive regions of Benin. The city is a Crossroads of major
international roads (Benin-Niger, Benin-Burkina Faso, Benin-Togo and Benin-Nigeria),
terminus of the Cotonou-Parakou railway of the Benin-Niger Joint Organisation (OCBN),
mandatory crossing point for national, regional and international traffic, as well as the
capital of the cotton-producing and agricultural area of the country. Besides, the city of
Parakou occupies a strategic position in terms of decentralization policy and regional
development of the country. And yet the city, hub for national and regional traffic lacks
the adequate road infrastructure to expand its impact area. The poor and narrow conditions
of the two main roads crossing the city are a major constraint to the development of urban
economic activities and bring about many traffic accidents. In addition, the serious traffic
congestion on these roads is detrimental to national and international traffic and
undermines the competitiveness of the North-South corridor. The development of these
roads is provided by the huge trade potential conferred by their role as transit roads
towards Niger, Nigeria, Togo and Burkina Faso.
Bank’s Value Addition
6. There are three level of justification why the Bank is involved in this project: (i) the Bank
is already engaged in the development of the economic potential of Northern Benin,
particularly through the road projects of Djougou- N'dali completed in 2009 and N'dali-
Nikki-Chicandou- Nigeria Border nearing completion; (ii) the project objective to loosen
the constraints of urban and regional development related to the poor state of transport
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infrastructure and low regional connectivity is consistent with the Ten-Year Bank Strategy
that promotes infrastructure and regional integration as well as the Urban Development
Strategy of the Bank; and (iii) in supporting the urban, regional and international
development project, the Bank will continue to play a leadership role for the development
of the continent.
Knowledge Management
7. The project provides a good opportunity for the Bank to extend the knowledge on the
impact of developmental projects on urban development and the impact of attractiveness
and urban development on trade and regional integration.
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RESULTS-BASED LOGFRAME
Project Country and Name: Parakou Urban Transport Project in Benin
Project Goal: Improve Urban Mobility in Parakou and living conditions of people in project area while reducing road accidents.
RESULTS CHAIN
PERFORMANCE INDICATORS MEANS OF
VERIFICATION
RISKS/
MITIGATING MEASURES Indicator (Including CSI)
Baseline Target
IMP
AC
T
Urban economic
activities and trade with
other regions and
neighboring countries
have improved in
Parakou.
Incidence of income poverty
for the Department of
Borgou
In 2013 : 31.5%
In 2019 : 29.75% Source : Statistics
INSAE
:
Outcomes Risks: (i) Lack of resources for
infrastructure maintenance by the FER and
the City of Parakou; (ii) non-compliance with
road traffic code and rules for the use of
municipal infrastructure
Mitigating Measures:
(i) Listing of the road projects in FR’s
priority programme, support for the
establishment of a governance body for
market infrastructure (which is expected to
collect user charges for maintenance) and
study on mobilizing local financial resources;
and (ii) Awareness of road safety, support to
CNSR in mobile awareness units
Outputs Risks People affected by the project are reluctant to
leave the work sites and relocate in the new
marketplaces and car stations.
Mitigating Measures
Public awareness by local authorities and the
Government along with compensation for
those people impacted by the project
EF
FE
TS
Outcome1: Mobility
and safety enhanced on
both project roads
Average speed on both
project roads during peak
hours
In 2013: 15km/h
In 2019: 30 km/h
(Or 100% increase)
Number of accidents on both
project roads.
In 2010: 162 In 2019: 100 Source: Statistics
CNSR
Outcome 2: Living
conditions of
populations improved
in the city of Parakou
Average household income
(total/ male/female)
En 2013:
66 291
/67918 / 50662
In 2019: 70 000
/72 000/ 52 000
Source: Statistics
INSAE
Percentage of population
spending less than a dollar a
day.
In 2013: 7.2% In 2019: 5%
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Activity Rate
(Total/Male/Female)
In 2013 :
66.3%/75.2% /57.7
%
In 2019 :
67.5%/76.4% /59% Number of jobs created In 2013: 0 man-
month
In 2019 : 5000 men-
month
Sources: Office for
works oversight
PR
OD
UIT
S
Output 1:Urban
sections of roads built
and opened to traffic
Length of roads rehabilitated In 2013: 0 km
In 2019: 16.80 km
Source: DGTP
Output 2: Municipal
infrastructure and
women specific
activities strengthened.
1. Number of social and
commercial infrastructure
rehabilitated.
2. Proportion of women
operating in the three
markets;c
3. Number of youth and
women trained
4. Length of roads paved
5. Number of junctions built
In 2013:
1. Number = 0
2. Number = 70%
3. Number = 0
4. Length = 0 km
5. Units : =0
In 2019 :
1. =11
2.= 75%
3. =2000
4. 7 km
5. 5 junctions
Source: City Council
of Parakou.
Output 3:Urban
governance and
management tools
developed
1. Urban management
tools available (PDU,
addressing plan, traffic
plan, commercial
facilities management
body, etc.)
In 2013:
No management
tool developed
In 2019:
All study reports are
available.
AC
TIV
ITÉ
S C
LÉ
S COMPONENTS RESOURCES (UA MILLION)
1.Road redesigning;
2. Freeing of the right-of-ways
3. Strengthening management aspects and municipal infrastructure
4. Project management.
1. Road redesigning: 52.01
2. Freeing of the right-of-ways: 5.85
3. Renforcement de la gestion et des infrastructures municipales:
10.16
4. Gestion du projet : 1.88
Imprévus et aléas : 8.27
TOTAL RESOURCES : 78.17
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Calendrier d’exécution
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REPORT AND RECOMMENDATIONS OF THE BANK GROUP MANAGEMENT
TO THE BOARD OF DIRECTORS ON A PROPOSED LOAN TO BENIN UNDER
THE PARAKOU URBAN TRANSPORT PROJECT
The Management hereby submits this report and recommendations on a proposed financing
for the Parakou Urban Transport Project
I – Strategic Thrust and Rationale
1.1. Project Background
The roads under the project are important sections of the Niamey-Malanville-Cotonou corridor
and the main urban roads of the city of Parakou. The first section, about 5.05 km, is the former bypass
of the city. Given the rapid urban growth, its surrounding areas are now highly urbanized. The second
section, about 11.75 km, is the crossing of the city of Parakou. There are particularly high risks of road
accidents on these two sections due to their poor condition and low urban, national and regional traffic
capacity. To solve these problems, the Government of Benin secured a BOAD funding in 2012 to
conduct a detailed execution studies for their rehabilitation. In January 2013, Benin's President
submitted a request to the Bank to finance the work and reiterated the importance of this project for his
country. A similar request was further submitted to BOAD who agreed to co-finance the project
alongside the Bank. The BOAD loan agreement was then signed on 31/03/2014.
1.2. Project Linkage with National and Regional Strategies
1.2.1 The project is aligned with the GPRS III (Growth and Poverty Reduction Strategy III)
for 2011-2015 which includes two strategic thrusts for the transport sector, namely (i)
establishment of transport, logistics and trade services; and (ii) improvement of transport
infrastructure. The project is also consistent with the 2014 -2018 Transport Sector Strategy
(TSS) which three strategic thrusts are (i) promotion and development of transport services;
(ii) management and development of transport infrastructure; and (iii) enhanced
competitiveness of ports and corridors. Finally, the project fits within the country’s
decentralization policy strategy and its space Agenda (National Land-Use Planning and
Implementation Framework ‘Schéma national d’aménagement du territoire et son cadre de
mise en œuvre’) adopted in 2013 and branding the city of Parakou as a balancing metropolis
against the Cotonou - Porto Novo tandem. The project is also in line with the Municipal
Development Plan of the city of Parakou for 2014-2016.
1.2.2 The project will improve the competitiveness of both corridors (Cotonou-Niamey and
Cotonou-Ouagadougou) as part of NEPAD's Short Term Agenda for Action (PACT) in terms
of regional integration and opening up, WAEMU and ECOWAS’ PRFTTRIE as well as
WAEMU’s PACITR. The project can therefore said to be supportive of the regional
strategies.
1.2.3 Furthermore, the project is aligned with the Ten-Year Strategy of the Bank as the
project will earmark at least 90% of its infrastructure cost to building an international corridor
and thereby foster regional economic integration, private sector, local SMEs, create jobs and
improve youth and women skills. The project will develop tools for local and national
governance as well as take measures for environmental protection. It is therefore an inclusive,
green, regionally-integrated and economically-diversified project. The project is well in
accordance with the two Pillars of the 2013-2017 CSP, namely, (i) Production and
competitiveness support infrastructure; and (ii) Promotion of good governance. In supporting
production, including agriculture and competitiveness through roads development and urban
management and governance capacity building of the city of Parakou, the project contributes
to the achievement of the two pillars of the CSP which revised mid –term programme
includes this project.
2
Rationale for Bank’s Intervention
Key Development Issues
1.2.4 Though African cities generate about 35-40% of GDP and play a vital role in terms of
the economic development of the continent, so many constraints are undermining their
development including: (i) obsolete urban transport infrastructure for economic and social
growth and causing many road accidents; (ii) sloppy urban management and planning
1.2.5 Aware that well-managed cities and efficient transport is a prerequisite for economic
development, the Beninese authorities have placed urban development and the transport
infrastructure, including improved transport conditions of the city of Parakou among top
priorities. Parakou is the third largest city, enjoys a special status in the country with an
average annual growth rate of 3.76%, and faces the challenges related to urbanization, uneven
population distribution, traffic congestion in the inner city, planning and management of
urban services.
1.2.6 The city of Parakou is a crossroads of the major international roads connecting
neighbouring countries (Benin, Niger, Benin, Burkina Faso, Benin and Togo-Benin-Nigeria).
In addition, the terminus of the Cotonou-Parakou railway is the mandatory passage for
national, regional and international traffic and it is also the capital of the cotton and
agricultural region of the country. Yet, its contribution to the country's growth has remained
marginal due to poor road conditions, low traffic carrying capacity and lack of safety for the
two main roads of the urban road network. Therefore, Bank’s intervention is expected to put
in place a more efficient transport system likely to boost urban economic activities and
improve the country's competitiveness.
1.2.7 In addition to the development issues above-mentioned, Bank’s intervention can be
justified as follows: (i) the project objectives to upgrade the sections service in the Cotonou -
Niamey international road corridor crossing Parakou and traffic conditions in Parakou is, on
the one hand, in line with the NEPAD goals which leadership role under the activity
implementation is provided by the Bank and, on the other hand, with the ten-year strategy of
the Bank for the 2013-2022, which gives priority to infrastructure, regional integration and
governance in particular. They are also in line with the 2011-2015 West Africa Regional
Integration Strategy and the Bank’s Integrated Urban Development Strategy; (ii) the Bank has
decided to diversify its portfolio and increased its urban intervention, convinced of the central
role of African cities in the continent's growth; and ultimately (iii) The Bank support for this
project complements previous interventions in this region of the country and is part of a multi-
donor initiative (ADF, GEF and BOAD). Finally, the proposed project is a good example of
urban project involving donors, State and local authorities.
1.3. Aid Coordination
1.3.1 In Benin, the aid coordination is provided at both national and sector levels. At
national level, it is provided by the Technical Secretariat of the Economic and
Financial Programmes Monitoring Unit and the Ministry of Economic Analysis,
Development and Planning, through the Directorate-General of Investment and
Development Financing (DGIFD) and the Directorate-General for Project and
Program Monitoring. The implementation of the aid is provided by the Ministry of
Economy and Finance (MEF) via the Autonomous Amortization Fund (CAA). Given
the multiple stakeholders, unclear roles and responsibilities, the government
performance in project implementation and monitoring as well as aid coordination is
deemed moderately satisfactory. However, progress has been made in recent years
particularly in the context of the annual review of the GPRS. In this context, the TFPs
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split in joint thematic groups for cooperation chaired by the Government, with a TFP
that facilitates the work. A joint annual review government-TFPs for GPRS, preceded
by sector reviews, is conducted in June every year. At the sectoral level, the donors in
the country actively contributed to the development of the Transport Sector Strategy
(TSS), the National Rural Transport Strategy (SNTR) and the Road Maintenance
Strategy. The Road Fund Review Board (FR) is responsible for the dialogue with the
Government as a supreme body which brings together the Ministers involved in the
transport sector and two representatives of the donors (the EU and the Netherlands).
The board develops and monitors the Road Fund policy. As such, it generally
determines the prospects of its development. Donors involved in the transport sector in
Benin may meet whenever necessary upon invitation of the EU as the leader to
harmonize views on particular implementation of the Transport Sector Strategy,
programming of road projects, road maintenance financing, control of axle loads
limitation, and checkpoints limitation on the corridors.
1.3.2 The project preparation mission was conducted jointly with BOAD who co-signed the
memorundum thereto. During the appraisal mission, the consultation between BOAD,
the Bank and the Government finalised additional funding of CFAF 15 billion, so
completing the loan agreement of CFAF 10 billion already signed between BOAD and
the Government. An expanded consultation with the EU and AFD reaffirmed project
relevance. The joint financing agreement between the Bank and BOAD following the
Bank's rules and procedures of goods, works and services procurement, the annual
appraisal of the performance of key members of the project Implementation Unit
along with the commitment of the Government to enforce the axle load control on the
roads illustrate positive results from the Bank and other donors’ commitment. The
consultation will continue during the project execution through the joint organization
of project supervision missions with BOAD.
II – PROJECT DESCRITPION
2.1 Project Objectives
The project goal is to improve urban mobility in Parakou and living conditions of
people in the project area while reducing road accidents. Project specific objectives outline as
follows (i) upgrade the level of road service and reduce road accidents; (ii) ensure efficiency
of urban activities and improved living conditions of the communities in the city of Parakou.
2.2 Project Components
To achieve the objectives, Project activities have been classified into four components
as indicated in the table below.
Table 2.1 : Project Components
Component
Name
Estima
base
ted
Cost
(UAM)
Component Description
1. Road
Development
52.01
1.1 1 Rehabilitation works of 2x2 lanes of 11.75 km-long Parakou urban
crossing including footbridge at Arzéké market ;
1.2 Rehabilitation works of 2x2 lanes of the 5.05 km-long Parakou old bypass,
including protective wall;
1.3 Mitigation of environmental impacts and climate risk (planting of 3,600 trees,
development of forest reserves restoration of burrow area, reduction of CO2
emissions, etc.);
4
1.3 Control/ monitoring of road works and raising public awareness;
2. Ancillary road
works 5,85 2.1 Displacement/relocation of water, electricity and telephone networks;
2.2 Compensation of persons affected by the project;
3. Upgrading
Municipal
Infrastructure
7,02
Support for women activities 3.1 Rehabilitation of Guéman and Azékê markets;
3.2 Rehabilitation of two social welfare centers;
3.3 Rehabilitation of arts and crafts center;
3.4 Provision of two women awareness / training mobile units.
Social infrastructure
3. Construction of fences for Sinagourou (750 ml) and Wansirou schools
Transport, Traffic and Road Safety
3.7 Upgrading and paving 4 km of urban roads;
3.8 Development of three road junctions;
3.9 Construction of a bus station in the southern part of the city;
3.10 Provision of 200 road signs;
3.11 Formulation of the national road safety policy;c
3.12 Provision of two mobile sensitization units to the National Road Safety
Center (CNSR) ;
3.13 Supply of 2 equipped ambulances for Parakou Firefighters;
3.14 Feasibility study for the Parakou new bypass ;
Urban Management Support
3.15 Study on the mobilization of local financial resources;
3.16 Support for the establishment of a business facilities management agency
( software, computer hardware, furniture + training) ;
3.17 Updating the Urban Development Master Plan (UDMP) and Traffic Plan
Development;
Employability and job creation
3.18 Training of truck drivers and mechanics;
3. 19Work control and supervision.
4. Project
Management
1,52
4.1 Auditing project accounts;
4.2 Technical audit of project;
4.3 3 Road Safety audit;
4.4 Monitoring and evaluation of project impacts;
4.5 Coordination and operation of executing agency
4.6 Delegated project management ;
4.7 Technical Assistance to the Municipality of Parakou.
2.3. Technical Solutions Adopted and Alternatives Explored
The Government et the Bank explored several options as to the technical and financial
design of the project. The technical solution adopted is the rehabilitation of the old bypass and
the road through (crossing) the city of Parakou. It is therefore planned to develop a 24.5 to
26.5 m platform, two 2-way roadways of 3.75 m each, separated by a 2 to 4 m median, with a
2.5m bicycle lane on both sides, 2m sidewalk with locations for urban furniture and
equipment (bus shelters, etc.). Given the high cost of such a development work, road
rehabilitation on a 16.5 m right-of-way with a single 2x1 lane roadway was considered but
was abandoned due it low a traffic carrying capacity both urban, national and international.
Table 2.2: Alternatives Considered and Reasons for Rejection
Alternative Brief Description Reasons for Rejection
Variant 1:Rehabilitation
following two profiles: (i)
PT1 in 2x2 lanes and PT2
in 1x2 lanes on the old
bypass; and (ii) PT2 in 1x2
lanes crossing the city
city 24.5 to 26.5 m platform for PT1 with
2x2 lanes of 3.75 m, a median and two bike
paths; and 16.5 m platform for PT2 with 1x2
lanes of 3.75 m
This profile has different
sections causing contraction areas which
bring about road accidents.
5
2.4. Project Type
The specific project loan is the financing instrument which has proved most suitable
for Bank intervention within the framework of this operation. The ADF loan will enable the
financing, construction and rehabilitation of the socioeconomic infrastructure identified as
part of the project. Thus, the funds will be disbursed for well defined and specific
investments. It is a national stand-alone investment operation.
2.5. Project Cost Estimate and Financing Arrangements
2.5.1 The total cost of project, net of taxes and customs duty, is estimated at UA 78.17
million (CFAF 57.37 billion) of which UA 55.72 million in foreign exchange (CFAF 40.89
billion) or 71.28% and UA 22.45 million in local currency (CFAF16.48 billion) or 28.72%.
The project cost estimate was based on the feasibility studies and unit costs for works and
similar services dating back to 2014. It includes a provision for physical contingencies of
8.5% of certain base costs and 3.07% price increase of the base cost plus the physical
contingencies. The summaries of project cost estimates by component are indicated in Table
2.3. The detailed cost estimates and the expenditure schedule are given in Appendix 1.A of
the attached document.
Table 2.3 : Summary of Estimated Project Cost by Component [in CFAF and UA million ]
COMPONENTS CFAF billion UA million
FE LC Total FE LC Total
1. Road development 30,42 7,75 38,17 41,44 10,56 52,01
2. Ancillary road works 0,00 4,30 4,30 0,00 5,85 5,85
3. Upgrading municipal infrastructures 5,29 2,16 7,45 7,21 2,95 10,16
4 Project Management 0,86 0,52 1,38 1,17 0,71 1,88
Base Cost 36,57 14,73 51,30 49,82 20,07 69,90
Physical contingencies 3,11 1,25 4,36 4,23 1,71 5,94
Financial contingencies 1,22 0,49 1,71 1,66 0,67 2,33
Total Cost excl. taxes & customs duty
40.89 16.48 57.37 55.72 22.45 78.17
2.5.2 The project will be jointly financed by the ADF, GEF, the Government of Benin and
BOAD. The ADF as the main donor, will finance 45.2% of the project or UA 35.33 million (
CFA F 25.93 billion) of a loan to Benin in two phases : The first in 2014 (23,8 MoUA) and
the second in 2015 (11,53 MoUA). Counterpart funds represent 9.71% (UA 7.59 milllion) of
project cost. The financing plan is shown in Table 2.4 below and costs breakdown by category
and by source in Appendix III.
Table 2.4 : Sources of Financing [amount in CFAF billion and UA million]
SOURCES UA million CFAF billion
% Devises ML Total Devises ML Total
GOV. OF BENIN 0.84 6.76 7.59 0.61 4.96 5.57 9.71%
ADF 28.04 7.29 35.33 20.58 5.35 25.93 45.20%
GEF 0.87 0.34 1.20 0.64 0.25 0.88 1.54%
BOAD 2677 7.27 34.04 19.65 5.33 24.99 43.55%
Total project Cost 56.52 21.65 78.17 41.48 15.89 57.37 100%
2.5.3 The ADF contribution will entirely come from ADF 13’s country allocation of for
2014 and 2015.
6
2.6. Project Area and Targeted Beneficiaries
2.6.1 Location. Parakou is located at the crossroads of major international road connecting,
in addition to the Niger north by the RNIE2, Burkina Faso north-west, Togo west and Nigeria
east. Moreover, the city is the terminus of the Cotonou - Niger railway. Parakou enjoys this
traffic dispatching role from the port of Cotonou, one of the main ports in West Africa, due to
its central location in the country that gives them access to all the Benin neighbouring
countries. Therefore, the city is characterized by high movement of people and an influx of
nationals of neighbouring countries, attracted by the regional and international scale of the
local markets.
2.6.2 Located in northern Benin, Borgou is a department of 25,856 square kilometres, 724,
171 inhabitants in 2002 and a density of 28 inhabitants per square kilometer. The direct
project impact area is the city of Parakou with its high movement of s population due to its
position as a hub. Parakou is the largest city in the northern part of the country and is situated
in north-central Benin and about 450 kilometres away from Cotonou. It is the regional capital
of the Department of Borgu and as such houses the public administration of the Department as
well as various community services needed to run a city. The city of Parakou enjoys a very
high population density estimated at more than 340 inhabitants per km² for an 441 km2 area.
Three quarters of the population live in truly urbanized area. Due its economic importance,
Parakou is the third largest city in Benin after Cotonou and Porto-Novo, so a big centre for
socio-economic activities. Parakou urban economy is characterized by a relatively active
commercial, industrial fabric making the city the second largest industrial platform of the
country, development of tractor trailer transport activities and predominant craft and informal
sector. Parakou activity rate is estimated at 58.5% and 30.6% for young people. The existence
of major local, regional and international in the city is due to the availability of local
agricultural commodities (cereals, tubers, legumes, livestock, and fisheries) and attracts
citizens of the four countries bordering Benin. The intense commercial activities around the
city induce various jobs for unskilled women and youth (motorcycle taxis and other survival
services). Moreover, Parakou has important tourist attractions such as the Royal Palace, arts
and cultural festivals, museum, market. However, this potential is not yet fully harnessed
since income poverty has reached over 33.1% of households in 2011 in the urban part of the
Department of Borgou and 22.5% of the city of Parakou. Parakou health situation is marked
by the presence of infectious and parasitic diseases such as malaria, diarrhoea, intestinal,
food-related or waterborne diseases and skin diseases as well. These pathologies are
attributable to poor sanitation. Furthermore, the narrowed project roads and the large vehicle
fleet and two wheels is the source of many traffic accidents.
2.6.3 Beneficiaries. 200,000 inhabitants are the beneficiaries of the project (49.9% women)
of the 3 districts of the city of Parakou. Specifically, the direct beneficiaries will be the main
socio-professional groups in the PIA (road users, carriers/transport operators, traders,
industrialists, women's groups, farmers, , schools and health centres users bordering the two
project roads, etc.) and local communities along the roads. The indirect beneficiaries include
people from other cities of Benin, including Borgou cotton farmers and also from
neighbouring countries, especially Niger, Burkina Faso, Togo and Nigeria.
2.6.4 Expected Outcomes. The beneficiaries will benefit from (i) low cost of vehicle
operation; (ii) a better access to production areas and basic social services; (iii) reduced
journey times, greater transport safety and security and relief crossing procedures at border
crossing; (iv) increase in household incomes; and (v) improved health status of the city
through reduction of the spread of infectious diseases and road accidents.
7
2.7. Participatory Process for project identification, design and
implementation
2.7.1 The participatory process was incorporated into the appraisal process both during the
detailed feasibility studies and during the project development missions. Participatory
meetings were held with the communities of the PIA particularly those in the city of Parakou.
These plenary briefings and public consultation recorded the attendance of political and
administrative authorities of the municipality, officials of decentralized technical services,
transporters, traders and representatives of NGOs and women's associations and youth. They
focused on modalities of stakeholder information and participation. Plenary consultation
sessions were also held.
2.7.2 During these sessions, community and technical services representatives were able to
express their concerns and expose local realities regarding urban mobility, heavy vehicles
parking, preservation of road assets, road safety, marketing of agricultural products, spread of
water-borne and sexually transmitted infections and lack of access to socio-economic
activities. These discussions also identified some specific activities and related facilities for
women and take into account concerns about possible adverse effects of the project in its
formulation and in its Environmental and Social Management Plan (ESMP).
2.7.3 During project implementation, the participatory process was to be stepped up,
especially during supervision missions and mid-term reviews as well as in assessing the
project impact. Public consultations are also recommended for the implementation of the
ESMP.
2.8. Reflecting Bank Group Experience and Lessons in Project Design
2.8.1 Since the adoption of its integrated urban development strategy in April 2010, the
Bank began to diversify its portfolio including transport projects in urban areas. Such projects
could face the following problems at different levels: i) Until 2009, urban development was
ignored in the Bank research program; ii) few African countries have addressed the issues and
the opportunities of sustainable urban development. In addition, the peculiarities of urban
projects lie in; (i) the need to strengthen the participatory approach and interact closely with
communities; iii) opposed interests among social groups and emergence of lobbying groups;
iv) weak municipal governments responsible for implementation and management of
municipal infrastructure; v) overlap or lack of clear responsibilities between state and local
governments; vi) the poor ownership of project by local authorities; and (vii) lack of tools for
urban planning and management. Direct experience of the Bank in this area is relatively small
given that the Integrated Urban Development Strategy (from 2010) is at its infancy. Currently,
some isolated sector-specific interventions are underway in cities. The following lessons can
already be learnt from the implementation of these interventions: (i) there is a need for quality
baseline studies and to alleviate the procurement procedures to serve a diligent performance;
(ii) ownership and capacity of local authorities should be properly appraised and strengthened
to ensure a smooth implementation; and (iii) the implementation schedule of the project
should be drawn up taking into account the strong reluctance of people to vacate worksites.
2.8.2 The portfolio of the Bank's operations in Benin includes 17% of risky projects, but no
transport project is at risk. The latest project to be completed in the transport sector is the
development project of the N'dali-Nikki-Chicandou- Nigeria border road which was
completed a year before the deadline for final disbursement and can be viewed as a successful
project. The only current project is a multinational project to rehabilitate the Lomé-Cotonou
road and Transport Facilitation on the Abidjan-Lagos corridor which is implemented without
major constraints. The main lessons learned from completed projects relate to (i) securing
counterpart funds in a specific account; (ii) the judicious allotment of road and associated
8
works to prevent flaws in procurement; (iii) the use of long-standing structures for project
execution; and (iv) close supervision of projects.
2.8.3 Key lessons have been incorporated into this project as follows: (i) address
institutional weaknesses of the City of Parakou; technical assistance, delegated Project
Management and urban management tools will be established; (ii) the technical, social,
environmental and institutional aspects have been prepared well in advance and consolidation
of the work and services in homogenous lots has been done; (iii) consultation and
involvement of beneficiaries and affected persons is done through a specific purpose entity at
municipal level; and (iv) ensure resources are available, and the opening of an account for the
counterpart funds will be a precondition for first disbursement.
2.9. Key Performance Indicators
The expected accomplishments of the project are mainly the reduction of travel time
and transportation costs, improved mobility and community access to socio-economic
infrastructure. The main outcome indicators are: (i) travel time; (ii) vehicle operating costs
(VOC); (iii) travel time, (iv) the mobility index, (v) passenger rate per kilometre, (vi) number
of road accidents; (vii) income per household in the PIA; (viii) access to water supply
facilities and sanitation, health infrastructure and public education. These indicators will be
monitored during the execution of the project and will be disaggregated by gender. Progress
towards the achievement of these results will be monitored through supervision reports of the
consultant in charge, as well as for follow-up and appraisal. A consulting firm will be hired to
establish the baseline for these indicators before work start-up, and assess the socio-economic
impact at the end of the project.
III – Projeect Feasibility
3.1 Economic and Financial Performance
3.1.1 Economic analysis: it was made using HDM4 model based on cost-benefit analysis
comparing the situation "without" (current situation) and "with" project (development of road
sections for Parakou crossing). The main factors taken into account in this analysis are: (i)
costs excluding all taxes of investments and maintenance of road improvements; (ii) a 15
years investment lifespan from the date of commissioning; (iii) the volume of normal traffic
on different roads and estimated future development on investment lifespan; (iv) comparison
of project benefits resulting from gains on vehicle operating costs and travel time on the road
sections (after the completion of work) compared to the baseline situation. A discount rate
12% and a 45% residual value of investments were considered by applying the optimal road
maintenance strategy.
3.1.2 The economic benefits (Net Present Value) arising from the project during the analysis
period (2014-2031 including 2014-2016 for the work) are estimated at CFAF 86.082 billion
across road sections. The internal rate of return (IRR) on the entire project amounts to 25.0%;
and is higher than the discount rate and thus demonstrates to the national community that the
project is viable.
3.1.3 Sensitivity analysis: Sensitivity tests of the economic viability of the project were
realized. The results of these tests confirm the economic viability of the project. They cover
incremental costs of work and /or a decrease in the normal traffic by 10% as shown in the
table below.
9
Project Appraisal and Sensitivity Analysis
Baseline Analysis
Sensitivity Analysis
Cost+10% Traffic–10% Cost+10% &
Traffic–10%
IRR (%) 25.0 21.5 21.8 18.4
Updated balance (in billion CFA
francs) 86.082 82.816 76.317 73.052
NB: detailed calculations are shown in Technical Appendix IV.
3.2. Environmental and social impact
Environment
3.2.1 The project has been categorized on one type of work and the cumulative number of
people affected. The Study of Environmental and Social Impact Assessment (ESIA)
accompanied by a detailed Environmental and Social Management Plan (ESMP) and a
Comprehensive Resettlement Plan (CRP) was prepared between May and November 2013
and completed in March 2014 with support from the Bank. It has been validated by the
Ministry for the Environment of Benin by the issuance of a Certificate of Environmental
Compliance. Abstracts of the ESIA and CRP were posted on the Bank website on 28 April
2014.
3.2.2 The main positive environmental impacts of the project are: (i) improved quality of
life environment and movement of populations; (ii) the contribution to sustainable
development of urban transport in the city of Parakou and to a lesser extent in Benin. For the
latter impact details are provided in the section on climate change and promoting green
transport. The main negative environmental impacts and risks are: (i) the felling of trees; (ii)
the decommissioning of 10 ha of forest reserve in Parakou; (iii) the potential enhancement of
the degradation of said forest; (iv) the potential deterioration of the living environment of
residents and users of the various ways in pollution during construction, including noise, dust,
discharges of sewage, trash, etc. ; (v) the qualitative and quantitative potential degradation of
water resources. These negative impacts will be contained and manageable by the
implementation and monitoring of mitigation measures whose main concern are: (i) the
planting of 3600 trees (alignment and for the rehabilitation of burrow areas); (ii) the
classification of compensatory forest on at least 10 acres; (iii) the development and protection
of the forest of Parakou into a city park with goals of environmental education, rest and
recreation for the population; (ii) the implementation by companies of Plan for Site
Environmental Protection (PPES) and the Plan for Environmental Management of Worksites
(PGEC) containing all the measures to protect sites including material extraction and
execution program.
The cost of ESMP excluding cost of resettlement and related activities is estimated at CFAF
775 762 098.
Climate Change
Climate Change
3.2.3 The key issue in climate change is the production of greenhouse gas emissions which
about 5,000 tonnes of CO2 per year. The main mitigating measures concern mainly
plantations of trees, the green space development and restoration of the classified forest of
Parakou. Also, specific actions, financed from the resources of the Global Environment
Facility (GEF) for the improvement of air quality contribute to this objective. This will mainly
include: (i) establishing the baseline for air quality in relation to the transport sector Parakou
accompanied by training actors for monitoring; (ii) training of mechanics gear 2 and 4 wheels
with the possibility of garage; (iii) emission control and monitoring and evaluation of impacts;
(iv) awareness of those involved in the entire chain. These actions are detailed in Appendix xi.
10
3.2.4 In addition to the above actions, it is provided: (i) the implementation of the Strategic
Environmental and Social Assessment (SESA) of the transport sector in Benin that will define
the outline of the E & S measures to implement and consistent with the policy and strategy of
the transport sector development in Benin; (ii) improving public transport by building bus
stops and two bus stations consistent with the green growth strategy of the Bank; (iii) the
development and implementation of waste and by-products transportation strategy including
waste oils, used batteries as well as used tires.
Gender
3.2.5 The female population of Parakou (49.89%) is roughly equal to the male population
(50.11%). 64.1% of these women (against 45% of men) are illiterate while according to the
latest survey of integrated modular households living conditions in Benin, the analysis by
level of education, unambiguously indicates that incidence of poverty, whatever its form,
decreases with education. Indeed, Benin, women have little economic power compared to
men but are less vulnerable to poverty than men. Discrimination based on sex that explain the
access in terms of economic power in Benin inequalities are mainly related to education
which in turn influences the size of the household, type of employment, occupational status,
the branch activities, place of residence, migration status, etc. To reduce these inequalities, a
component "supporting specific activities of women" has been specifically developed and
includes: i) rehabilitation and upgrading markets Azékê, Depot and Guéman; ii) the
reconstruction of three centres (two centres of social promotion and a centre of arts and
crafts); and 3) provision of two mobile awareness / training units for women.
3.2.6 53% of women in the PIA are heavily involved in the business which focuses on the
distribution of local agricultural and handicraft products (cereals, tubers, citrus, poultry) and
manufactured goods. They play a very important role in the city markets where they represent
70% of traders. In addition, the location of crossroads city of Parakou is great potential for
trade, which is why this city has 13 markets, which are supplied by local producers despite
their low production and especially the products coming neighbouring regions. The supply of
these markets is done by road and is provided primarily by the RNIE2. The accessibility of
streets and certainly the resumption of traffic and intensification will therefore have a positive
impact on the functioning of markets as it will facilitate the supply and flow of goods. The
profitability of women's economic activities will be enhanced by rehabilitating three major
markets of the city, planned as part of this project.
3.2.7 Furthermore, according to the Demographic and Health Survey 2012, 30% of women in
PIA tolerate or justify domestic violence and 41% of women reported having been
circumcised, which affects their well-being and is attributable mainly to a lack of awareness,
training and legal assistance. Therefore, the project will rehabilitate two social welfare centres
in order to set up a drop-in and counselling service for women and girl victims of gender-
based violence. The main mission of this service is to provide legal support and advice to
victims and educate and inform on the rights of women and girls and fight against violence.
Moreover, the most significant adverse impacts of the project on women especially girls
emanates from the influx of foreigners and job seekers in the phase of implementation of the
project. 20% of adolescent girls in the PIA have already started early reproductive lives, while
the proportion of women (71%) aware of AIDS is one of the lowest in the country. Indeed,
this promiscuity and mixing can lead to moral depravity, development of prostitution and
adultery, unwanted pregnancies and sexually transmitted infections. Mitigating measures will
include the establishment of a centre of arts and crafts as well as two mobile learning units to
provide training and awareness campaigns for female population in PIA.
11
Social
3.2.8 The expected social impacts of the proposed project include reducing the travel time
for transportation services, operating costs of vehicles and reduced rates as well as improved
safety and quality of transport services. The project will have a positive impact in terms of
poverty reduction, to the extent that it will create more employment opportunities and income
generation through the development of economic activities and improving accessibility socio-
economic infrastructure (health and education facilities, local markets, etc.). Despite the risks
that could result from failure to comply with safety standards for drivers and pedestrians,
widening the RNIE2 and bypass included in the project will reduce the risk of traffic accident.
Improving sanitation in the vicinity of two project roads will fight recurrent flooding in some
areas and reduce the incidence of malaria and waterborne diseases. During construction, the
project will create jobs and investment income for more than 200 local workers for three
years. The influx of workers will boost demand for services such as accommodation, catering,
transport and permit the establishment of small shops for the sale of agricultural, fishery and
handicraft, which will improve the living conditions of these workers and their families and to
enhance savings and the creation of individual and family microprojects.
3.2.9 However, during and after construction, road safety, the risk of road accidents, the
spread of STI/ HIV /AIDS will increase due to increased traffic, speed of movement and the
influx of workers into the project area. California building walls, closing schools and health
centers close to the road, the construction of speed bumps were incorporated into the project
to mitigate these risks. In addition, awareness campaigns on road safety, HIV/ AIDS and
environmental protection are included in the contract office that will be responsible for the
control and supervision of road works.
3.2.10 In order to enhance the socio-economic impact and contribute to improving the living
conditions of people in the PIA, the project includes the rehabilitation of the two markets, the
provision of two mobile training units and construction three social promotion centres. This
support will improve the conditions of the trade so traders returned, strengthening vulnerable
through training and sensitization populations.
Forced relocation
3.2.11 The project will result in the total or partial destruction of property including: (i)
informal trade facilities (551 and 917 barracks buildings); (ii) 470 terraces which are growths
of small, informal and formal businesses; (iii) 431 houses, unfinished buildings and boundary
walls. A total of 2,459 persons are affected along the two roads which RNIE2 for 1703 and
756 for the bypass. The cost of the resettlement plan including monitoring and auditing, is
CFAF 1,482,075,691 and is borne by the Government of Benin. An action plan for the
finalization and implementation of the resettlement plan has been agreed with all
stakeholders. This is especially important in finalizing the plan, submitting evidence of
compensation for affected before work begins will be a condition for loan disbursement.
Monitoring the implementation of the ESMP and capacity building
3.2.12 ESMP implementation will be monitored by a local ESMP monitoring unit, composed
of representatives of the relevant municipal and county services performed. This unit will be
supported by the Department of the ESIA of DGTP and Benin Environmental Agency who
will follow up according to their powers. Regarding the latter, and pending the signing of an
order fixing the amount of the fee for projects in general and highway projects in particular, a
Memorandum of Understanding to be signed between the DGTP and EBA to define the
monitoring methodology.
12
3.2.13 In the context of strengthening the environmental and social capacities of actors it is
considered providing: (i) the training of actors on the EESS; (ii) updating the how to manual
for road projects by integrating the aspects concerning expropriations, gender and climate
change coupled with the training of actors; (iii) training of 2 and 4 wheels mechanics under
the pilot phase under the GEF; (iv) capacity building of stakeholders responsible for the forest
reserve management.
IV –Implementation
4.1. Implementation arrangement
4.1.1 The project executing agency is the Ministry of Public Works and Transport (MTPT)
through the Directorate-General of Public Works (DGTP). This Directorate has sufficient
staff and a proven track record in implementing projects regarding national or international
roads, funded by donors including the ADF, IDA, EU, IDB, BOAD, etc. DGTP therefore has
the skills to coordinate and oversee the implementation of the components related to road
construction, environmental and social policies and institutional support.
To ensure effective monitoring of project delivery, a coordinator (experienced road engineer)
at the DTN whose résumé has been approved by the evaluation mission staff has been
appointed. He monitored the detail design studies and the project preparedness and appraisal
missions. A 2nd
engineer from DTN will be seconded on the ground to work with a City
Council Officer from Parakou to set up a team of 2 counterparts who will closely liaise with
the various technical departments concerned as well as the consultant responsible for work
supervision. In addition, the Senior Accounting Officer and the Executive responsible for the
financial management of road projects in progress, who are fully conversant with SYSCOA
accounting set of references will take care of the financial and accounting management of the
project. The team thus formed will be set up through the order issued by the Minister of
Public Works and Transport and will be equipped based on the Government counterpart with
the means necessary for the performance of its mission (operation, etc.). The staff of the DTN
has already received training in project management and on the rules and procedures of the
Bank with regard to the acquisition and disbursement. Another training session is scheduled
during the project launch mission. The project coordinator’s performance will be subject to
annual evaluation on the basis of a contract of performance to be finalized before negotiation.
4.1.2 Progress has been made in terms of harmonization of aid and of implementation of the
Paris Declaration on aid responsiveness in respect of the use of public bodies as regards
projects delivery in both countries. As part of the Bank's portfolio in Benin, the share of
projects at risk increased from 47% in 2010 to 25% in 2014, which reflects a net improvement
in the implementing capacity of countries.
Procurement activities
4.1.3 The national procurement procedures in Benin were assessed by the Bank in 2011.
The national system of public procurement mostly complies with international standards and
the standard files for national invitations to bid (DTAON) were inspired by the standard
documents of multilateral development banks and international financial institutions.
Accordingly, in accordance with the letter of agreement established between the Government
of Benin and the Bank in respect of the use of national procedures for national invitation to
bid, acquisitions of goods whose amounts are below the thresholds established by the Bank
for Benin, will be processed through National Competitive Bidding (AON) in accordance
with the national legislation on public procurement using the standard documents for local
invitations to bid. All other acquisitions of goods will be made by international competitive
13
bidding (AOI) and by selection of consultancy services, in accordance with the “Rules and
Procedures of the Bank for the acquisition of goods and works”, dated May 2008, revised in
July 2012 and with the “Rules and Procedures of the Bank for the use of Consultants”, dated
May 2008, revised in July 2012, using the standard documents for invitation to bids relevant
to the Bank, as well as to the provisions which will be laid down in the financing agreement.
The BOAD has agreed to abide by the rules and procedures of the Bank in respect of
acquisitions.
Financial Management
4.1.4 The implementing agency selected to deliver the project should have adequate technical,
human and material resources; a reliable institutional environment, including an effective
system of internal control; qualified, readily available and motivated senior personnel, as well
as appropriate tools, in support of (i) proper accountability and exhaustively the whole of the
operations performed during the project life cycle; (ii) the backup of both financial data and
assets acquired; (iii) the information and the audit of available financial resources. A review
of the financial management system of the project has been carried out. The evaluation was
related to the Project Delivery Unit within the General Directorate of Public Works (DGTP)
of Benin which will be responsible for administrative, financial and accounting management.
A Project Coordinator and a Senior Accountant were identified. The formal decision
(ministerial order) to set up the aforesaid Unit or to appoint previously designated officials
will be taken before the negotiations relating to the project. Moreover, the shortcomings
detailed in the technical Appendix B4 were identified on the various components of the
financial management. That is why the national system will not be used in the context of this
project.
4.1.5 An accounting system specific to the project will therefore be put in place and will be
linked to (A) an integrated management software configured according to commitment
accounting rules of a private type adapted to project management and capable of (i) producing
financial statements for annual summaries comprising a consolidated and cumulative cash
flow statement mode of the year, as well as a balance sheet; (ii) carry out the monitoring of
budget implementation through the establishment of an acceptable budgetary accounting; (iii)
record the expenditures by category and by components, and resources by funding source.
The project Management will keep an independent accounting system so as to produce its
own financial statements. Transactions to be recorded in the accounting records of the project
will include not only those relating to the use of AfDF funds, but also those being
implemented against the counterpart funds and (B) a guidebook of administrative, accounting
and financial procedures with a clear separation of duties
Disbursement
4.1.6 Disbursements out of the AfDF funds will be done through the following two
methods: (i) via direct payments as recommended for the payment of the expenses relating to
work and control, as well as the other consultants’ services, including the audit of the
accounts, etc. etc. and (ii) through the method of reimbursement which will only be used in
case of need for reimbursement of eligible expenditure to the project and whose the
prefinancing has been authorized on the counterpart funds. Disbursements on the counterpart
funds will be done following the national procedures in accordance with the provisions (i) of
Decree N° 2012-226 of 13 August 2012 issued by the President of the Benin Republic on the
establishment and management terms and conditions of a Beninese fund of counterpart funds
devoted to projects; (ii) of the decree of the Minister of Economy and Finance No.
1136/MEF/DC/SGM/CAA of the December 07, 2012 laying down detailed rules for the
application of the decree on the establishment and to the modalities of management of
Beninese counterpart funds in respect of projects; (iii) and the Economy and Finance
14
Minister’s circular letter N° 2157/MEF/DC/SGM/CAA relating to procedures for mobilizing
and using Beninese counterpart funds devoted to projects.
Audit
4.1.7 An independent external private auditor will be recruited on the basis of terms of
reference acceptable to the Bank and in accordance with the rules and procedures of the Bank.
His/Her contract will cover a budget year renewable on the basis of the quality of the services
previously provided. The reports that he/she will produce for each budget year will be
forwarded to the Bank for approval, not later than six months after the close of the said budget
year.
Timeline for implementation and supervision
4.1.8 Project delivery will run from June 2015 to December 2019. The relevant timeline for
implementation, abstract at the beginning of this report is outlined in detail in Appendix C. 1
of the attached document. Upon the approval of the funding of the project, the AfDF will
launch the project and will subsequently conduct supervisory missions whose provisional
timetable and composition are shown in Appendix VI of the document attached hereto.
4.2. Monitoring
Monthly and quarterly progress reports will be prepared by the consultants responsible
for monitoring and supervising the work on behalf of the implementing agency which will on
a quarterly basis regularly provide to the Bank the projects progress reports of including the
implementation of the PGES based on the standard format of the Bank and encapsulating the
whole of the project activities. These reports will include physical, financial, social and
environmental issues in order to help appraise the level of achievement of project goals.
Furthermore, supervisory missions of the Bank will be regularly carried out, in accordance
with the manual of operations of the Bank. A mid-term review, if needed, and a final
assessment including building sites completion reports and the completion report of the Bank
are also planned.
Timeline for monitoring Project Delivery
Duration Steps Follow-up activities / feedback loop
Quarter 1 -
2015 Launch of the project Supervisory report and progress reports
Quarter 2 -
2015
Completion of acquisitions relating to civil
engineering work Procurement Plan /Progress Report
Quarter 3 -
2015 Mobilization of service providers Supervisory report and progress report
Quarter 4 -
2015 Start of road and related work Supervisory report and progress report
Quarter 1 -
2016
10% of rate of delivery of civil engineering
work Supervisory report and progress report
Quarter 3 -
2016
25% rate of delivery of civil engineering
work Supervisory report and progress report
Quarter 1 -
2017
60% rate of delivery of civil engineering
work Mid-term review and progress report
Quarter 3 –
2017 Completion of civil engineering work Supervisory report and progress report
Quarter 3 –
2018 Expiry of the warranty period Supervisory report and progress report
Quarter 4 –
2019 Project Completion Project Completion Report
15
4.3. Governance
4.3.1 The Government of Benin has taken strong action to combat corruption and has started
work on the reform issues related to internal control, notification and audits. Transparency
and fairness in the management of funds and government contracting have improved
markedly since 2006 through the following measures: i) release of a directory on reference
prices for government contracting; ii) enactment of a new code of government contracting; iii)
enactment in 2008 of a decree laying down the maximum deadlines for competitive bidding
steps; i) establishment in 2007 of an office of the State Inspectorate General reporting directly
to the President’s Office ; v) since 2008 the legal representative of the Treasury Department
has been reporting directly to the President’s Office; (vi) strengthening of the Inspectorate
General of Finance; and (vii) development of a new legal framework, the regulatory function
of government contracting being differentiated from that of public procurement management.
Besides, since 2008, the financial contribution of projects from the Beninese government is
granted by the CAA. These improvements have been secured thanks to the Bank’s active
contribution through a Project in Support of Audit Institutions and Support Programmes for
Growth Strategy and Poverty Reduction (PASCRP III and IV).
4.3.2 Corruption risks during procurement processes and the performance of relatively
highly-paid civil engineering contracts will be detected and mitigated through: i) the pre-
review process conducted by government contracting bodies from both countries; ii) the
review of procurement documents that helps the Bank to control the process via its non-
objection notification issued at each of the main steps; (iii) the Bank’s regular supervision and
the financial and accounting audit of the project underscoring abnormal discrepancies
between the scopes of work, service delivery and the work actually done and disbursements
and loan agreements; iv) the choice of direct method of payment with regard to the
disbursement of funds for contractors and service providers; and (v) the use of post-
qualification procedures which ensures for greater competition.
4.4. Sustainability
In respect of sustainable highway infrastructure, the road work relating to the project
involved will monitored by an engineering firm selected from among those with proven
experience and required engineering and technical skills. Moreover, it is anticipated that a
consultant will be tasked to conduct a technical audit. Finally, the existence of a financially-
independent National Strategy for Road Maintenance Fund (RF) in Benin shows evidence of
sustainability. The RF revenue which covers approximately 53% of current and periodic
maintenance requirements is expected to increase with the commissioning of new-built
tollbooths. As a result of such a deficit, resources are primarily allocated to a priority network
forming the two roads under the ongoing project in respect of the four major roads of the
national highway system. The project roads will therefore be maintained in the long term To
ensure both the satisfactory coverage of maintenance needs and upscale the local industry of
road maintenance, the EU funded since 2011, multi-year pilot routine maintenance programs.
As regards socio-economic infrastructure (markets, schools, women's centres, etc. ) which
will be renovated as part of the project, related maintenance will be provided by the City
Council of Parakou, thanks to the levies to be collected by the autonomous state-owned
bodies that the project will help to set up, as well as by Parents’ Associations. Finally, in
accordance with the road map adopted in May 2013 by WAEMU Ministers responsible for
Transport and Public Works, axle load control should become effective starting from the first
day of July 2014. Biannual campaigns to measure axle loads are carried out along the major
inter-African road systems, including the roads under the project and in terms of the platforms
with traffic of more than 200,000 tonnes of freight per year. Submission of campaign reports
to the Bank will be a condition of the project funding.
16
4.5. Risk Management
4.5.1 The successful implementation of the project and the achievement of its objectives
will depend on several factors that may each be a risk to the said project. Besides the risks
related to the governance and sustainability, the main ones are as shown below:
Risks related to results
4.5.2 Lack of resources for infrastructure maintenance: it is a moderate risk that is mitigated
by the inclusion of the project roads into the RMF priority program, the support to the
establishment of a management body of market infrastructure (which should help collect the
user charges for maintenance purposes) and a study on mobilizing local financial resources
which should help identify new sources of municipal revenues.
4.5.3 Resilience of the persons affected by the project to integrate the new locations of
markets and stations: this high risk will be mitigated by awareness of population and the
establishment of a framework for dialogue with local and governmental authorities.
Risks related to operations
4.5.4 Resilience of persons affected by the project to release the work sites: this risk deemed
to moderate will be mitigated through raising the awareness of local populations, the
establishment of a framework for concerted action with the local authorities and the
Government and compensation for the people affected by the said project.
4.5.5 Unforeseeable rise in the cost of the work: this risk, though moderate, will be
mitigated by the availability of relatively recent detailed working designs (2013) and a
provision for price increases. Furthermore, the procurement files are in the process of being
finalised, which will help us to kick-start competitive bidding processes upon the approval of
the loan including acquisition modes ensuring wide competition (publication in UNDB, in
newspapers having wide circulation and with the embassies of the member countries present
in both countries, in the General Procurement Notice and in specific notices);
4.5.6 Lengthy delays in the ratification of the loan: it is a moderate risk that can be mitigated
by the simplification of existing ratification procedures since the establishment of the new
Ministry for Relations with Institutions and whose role is to make relations with the
Parliament easier, among other things.
4.5.7 Fiduciary Risk (procurement and financial management): it is a moderate risk that will
be mitigated by regular oversight of the project, annual audits of the project accounts,
monitoring system of project delivery (reports, etc. ) and the launch of the project which will
be the occasion to ponder over the project delivery terms and conditions. Moreover, the office
of the Bank based in Togo (30 min flight from Cotonou) will provide close support to the
implementing body;
4.5.8 Non-provision in a timely manner of the counterpart funds: this is a substantial risk
given the high level of the counterpart fund (10% of project cost). It will be mitigated by the
funding terms which provide for the opening of the project’s account for counterpart funds
and its replenishment according to the schedule of expenditures of the project;
4.6. Knowledge Development
4.6.1 A number of studies have shown that the cost and conditions of transportation impact
the cost of goods, the cross-border trade and the living conditions of the populations. In order
to check on this relationship in its context, project design will include an agreed set of
17
performance indicators aimed to effectively appraise the project achievements and results.
Such indicators were outlined in paragraph 2.10 above.
4.6.2 The establishment of an operational monitoring and assessment mechanism for this
project impact will help build and disseminate knowledge. The monitoring of indicators will
be done by a consultancy firm that will confirm the reference base prior to the onset of the
project activities and the impact evaluation at the end of the project.
4.6.3 The main knowledge will be disseminated through a national participatory workshop
and will be incorporated into the database of the Directorate of Planning and monitoring-
evaluation (DPSE) at the DGTP in Benin.
V – Legal Framework
5.1. Legal Instrument
The instruments devoted to fund this project include (i) an ADF concessionary loan; (ii) a
BOAD concessional loan of 13.62 million UA; and (iii) a BOAD non-concessional loan of
20.44 million UA, (iii) a GEEF grant of 1 861 574 USD. The ADF loan amounting to
23 800 000 UA from 2014 PBA and 11 530 415 UA from 2015 PBA, will be fully funded
from the country ADF 13 allocation.
5.2. Conditions associated with the Bank’s intervention
A. Conditions precedent to the entry into force
A.1 Conditions precedent to the entry into force of the AfDF loan and GEF grant
The entry into force of the loan agreement will be conditional on the borrower’s
implementation of the conditions laid down in section 12.0.1 of the General Conditions
applicable to loan and security agreements. The GEF grant with enter into force upon the
signature of the Agreement.
B. Conditions precedent to the first disbursement of the AfDF loan
The first disbursement of the loan will be conditional on the borrower’s implementation of the
following conditions:
i) Provide the AfDF with the evidence of the opening of an account with the General
Directorate of the Treasury and Public Accounting Department, on behalf of the project
and its replenishment with an amount equivalent to the expenditures of the national
counterpart for the first year (paragraphs 2.8.3);
C. Other Conditions
AfDF Loan and GEF grant:
i) Provide to the ADF, not later than 30 April of each budget year, the evidence of the
account replenishment in accordance with the needs for the year including the account for
counterpart funds (para. 2.8.3);
ii) Provide to the ADF, not later than 31 March of each budget year, the reports of the
biannual campaigns to measure axle loads, carried out during the previous year,
throughout the system of inter-African major roads, including the project roads of and the
platforms generating a traffic of more than 200,000 tonnes of freight per year (paragraph
4.4.2).
iii) Provide, as and when progress before any work begins, evidence of compensation for
those affected by Project in the concerned area, according to resettlement plan and the
18
rules and procedures of the Fund on the subject, including Policy on involuntary
resettlement Fund.
D. Undertakings. The Borrower agrees to the satisfaction of the Fund:
i) Implement the Project, the Environmental and Social Management Plan (ESMP) and the
Abridged Resettlement Plan (ARP) and also enforce their implementation by its
contracting parties, in accordance with the national law and with the recommendations,
requirements and procedures contained in the ESMP, the CRP and the relevant rules and
procedures of the Fund.
ii) Refrain from commencing construction work on a concerned area without the affected
persons in such areas having received full compensation; and
iii) To report on a quarterly basis in form acceptable to the Fund on the Environmental and
Social Management Plan (ESMP) and the Abridged Resettlement Plan (ARP), including
the appropriate corrective actions to be undertaken.
5.3. Compliance with the Bank’s Policies
* No exception is provided within the policies.
* The proposed project is consistent with all applicable policies of the Bank.
5.4. Constraint related to the concentration at the beginning of the cycle
(Frontloading)
Taking into account the concentration rule at the beginning of the ADF cycle which imply
that a country should not commits, during the first year of the ADF cycle concerned, more
than 50% of its allocation. It is therefore recommended that a loan of 23, 8 million of UA
being accorder in 2014 and the remaining balance, 11,53 million of UA, being subject to a
request for approval by the Board during the year 2015 on a lapse-of-time procedure. A
request substantiating the frontloading by the country’s absorptive capacity, the undertaken
reforms and the performance of the country is attached as appendix IV.
VI – CONCLUSIONS AND RECOMMENDATIONS
6.1. Conclusions
The project relates to one of the missing road sections of one of the most important corridors
from an economic standpoint in West Africa. It will help promote the urban economic
activities in Parakou, thereby responding to Benin poverty reduction strategies. It is consistent
with the 2013-2022 Long-term Strategy of the Bank. Thanks to its contribution to the
reduction of transportation costs, to economic growth and to the improvement of the living
conditions of the populations of its area of influence, the project will be instrumental in
reducing poverty in Benin. Its internal economic rate of return estimated at 25.0 % is
satisfactory.
6.2. Recommendations
The Management recommends that (i) the Board of Directors approve the ADF loan proposal
amounting to UA 23,800 million to the Benin Republic; (ii) the Boards of Directors approve
the implementation of the project by the Bank of GEF Fund amounting to US 1,861,574, for
funding the project described in this report and according to the above conditions and (iii) the
Board of Directors approve during the year 2015 on Lapse of Time basis the balance of UA
11.53 million on the basis of the same appraisal report.
I
Appendix I. Benin Comparative Socio-economic Indicators
Year Benin Africa
Develo-
ping
Countries
Develo-
ped
Countries
Basic Indicators
Area ( '000 Km²) 2011 113 30 323 98 458 35 811Total Population (millions) 2013 10,3 1 109,0 5 909,3 1 252,8Urban Population (% of Total) 2013 46,2 40,2 47,7 78,3Population Density (per Km²) 2013 80,8 46,9 70,7 23,5GNI per Capita (US $) 2012 750 1 719 3 815 38 412Labor Force Participation - Total (%) 2012-2013 36,9 37,4 67,9 72,1Labor Force Participation - Female (%) 2012-2013 47,7 42,5 38,6 44,6Gender -Related Dev elopment Index Value 2007-2011 0,477 0,502 0,694 0,911Human Dev elop. Index (Rank among 187 countries) 2012 166 ... ... ...Popul. Liv ing Below $ 1.25 a Day (% of Population)2003-2011 47,3 40,0 20,6 ...
Demographic Indicators
Population Grow th Rate - Total (%) 2013 2,7 2,5 1,3 0,3Population Grow th Rate - Urban (%) 2013 4,1 3,4 2,5 0,6Population < 15 y ears (%) 2013 42,8 40,9 28,3 16,4Population >= 65 y ears (%) 2013 2,9 3,5 6,1 16,8Dependency Ratio (%) 2013 86,1 77,9 52,4 49,9Sex Ratio (per 100 female) 2013 99,3 100,0 103,3 94,4Female Population 15-49 y ears (% of total population) 2013 23,8 24,0 53,1 45,2Life Ex pectancy at Birth - Total (y ears) 2013 59,3 59,2 68,4 77,8Life Ex pectancy at Birth - Female (y ears) 2013 60,7 60,3 70,3 81,2Crude Birth Rate (per 1,000) 2013 36,4 34,8 21,2 11,2Crude Death Rate (per 1,000) 2013 9,5 10,4 7,6 10,4Infant Mortality Rate (per 1,000) 2013 68,1 61,9 39,8 5,5Child Mortality Rate (per 1,000) 2013 107,3 97,4 56,3 6,6Total Fertility Rate (per w oman) 2013 4,8 4,6 2,6 1,7Maternal Mortality Rate (per 100,000) 2010 350,0 415,3 240,0 16,0Women Using Contraception (%) 2013 21,6 34,9 62,6 71,3
Health & Nutrition Indicators
Phy sicians (per 100,000 people) 2004-2011 5,9 47,1 117,8 297,8Nurses (per 100,000 people)* 2004-2011 77,1 132,6 202,7 842,7Births attended by Trained Health Personnel (%) 2006-2011 74,0 52,6 66,3 ...Access to Safe Water (% of Population) 2012 76,1 68,8 87,2 99,2Access to Health Serv ices (% of Population) 2000 42,0 65,2 80,0 100,0Access to Sanitation (% of Population) 2012 14,3 39,4 56,9 96,2Percent. of Adults (aged 15-49) Liv ing w ith HIV/AIDS2006-2012 1,1 3,9 1,2 ...Incidence of Tuberculosis (per 100,000) 2012 70,0 223,6 144,0 23,0Child Immunization Against Tuberculosis (%) 2012 94,0 83,0 81,5 96,1Child Immunization Against Measles (%) 2012 72,0 74,0 83,0 94,3Underw eight Children (% of children under 5 y ears) 2005-2012 20,2 19,7 17,0 1,4Daily Calorie Supply per Capita 2009 2 592 2 481 2 675 3 285Public Ex penditure on Health (as % of GDP) 2011-2012 2,4 2,9 3,0 7,5
Education Indicators
Gross Enrolment Ratio (%)
Primary School - Total 2012 122,8 101,9 109,4 100,9 Primary School - Female 2012 115,9 97,9 107,6 100,6 Secondary School - Total 2011-2012 47,7 47,4 69,1 100,2 Secondary School - Female 2011-2012 36,1 44,0 67,8 99,7Primary School Female Teaching Staff (% of Total) 2012 20,9 46,6 58,0 84,3Adult literacy Rate - Total (%) 2006-2012 28,7 62,0 80,3 99,2Adult literacy Rate - Male (%) 2006-2012 40,6 70,7 85,9 99,3Adult literacy Rate - Female (%) 2006-2012 18,4 53,7 74,9 99,0Percentage of GDP Spent on Education 2010-2012 5,3 5,3 4,3 5,5
Environmental Indicators
Land Use (Arable Land as % of Total Land Area) 2011 22,9 7,6 10,7 10,8Annual Rate of Deforestation (%) 2000-2009 2,3 0,6 0,4 -0,2Forest (As % of Land Area) 2011 40,0 23,0 28,2 35,0Per Capita CO2 Emissions (metric tons) 2011 0,5 1,2 3,0 11,6
Sources: AfDB Statistics Department Databases; last update :
United Nations Population Division, World Population Prospects: The 2012 Revision;
World Bank: World Development Indicators; UNAIDS; UNSD; WHO, UNICEF, WRI, UNDP; Country Reports.
For any given interval, the value refers to the most recent year available during the period
Note : n.a. : Not Applicable ; … : Data Not Available.
COMPARATIVE SOCIO-ECONOMIC INDICATORS
Benin
mai 2014
0102030405060708090
20
05
20
06
20
07
20
08
20
09
20
10
20
11
20
12
20
13
Infant Mortality Rate( Per 1000 )
Benin Africa
0
200
400
600
800
1000
1200
1400
1600
1800
20
04
20
05
20
06
20
07
20
08
20
09
20
10
20
11
20
12
GNI Per Capita US $
Benin Africa
0,0
0,5
1,0
1,5
2,0
2,5
3,0
3,5
20
05
20
06
20
07
20
08
20
09
20
10
20
11
20
12
20
13
Population Growth Rate (%)
Benin Africa
111213141516171
20
05
20
06
20
07
20
08
20
09
20
10
20
11
20
12
20
13
Life Expectancy at Birth (years)
Benin Africa
II
Appendix II: Table of the AfDB’s portfolio in Benin
Project Name Status Age Appr.Date Into Force ComplDate Disbursed Approved Rate disbursed
WATER AND SANITATION
SUUPORT TO DECENTRALIZATION OF WATER &
SANITATION SERVICES OnGo 1,7 29/10/2012 22/03/2013 31/12/2016 227 748,92 929 096,23 24,51
FAECAL SLUDGE MANAGEMENT IN GRAND
COTONOU OnGo 1,5 04/01/2013 10/06/2013 31/03/2017 54 212,14 989 995,72 5,48
TRANSPORTATION
NDALI-NIKKI ROAD PROJECT OnGo 4,3 07/04/2010 22/10/2010 30/06/2014 4 867 930,12 11 500 000,00 42,33
NDALI-NIKKI ROAD PROJECT OnGo 4,3 07/04/2010 22/04/2010 30/06/2014 15 841 086,19 22 180 000,00 71,42
FARMING
RURAL INFRA PROJECT SUPPORT_VALLÉE L'OUÉMÉ OnGo 0,8 30/09/2013 25/11/2013 31/12/2017 0,00 444 000,00 0,00
RURAL INFRA PROJECT SUPPORT_VALLÉE L'OUÉMÉ OnGo 0,7 23/10/2013 09/05/2014 31/12/2017 0,00 39 500 000,00 0,00
RURAL INFRA PROJECT SUPPORT_VALLÉE L'OUÉMÉ OnGo 0,7 23/10/2013 09/01/2014 31/12/2017 0,00 530 000,00 0,00
RURAL INFRA PROJECT SUPPORT_VALLÉE L'OUÉMÉ APVD 0,7 23/10/2013 31/12/2017 0,00 4 679 457,00 0,00
URG PROG FOR MUNICIP MALANVILLE & KARIMAMA APVD 0,3 19/03/2014 31/12/2014 0,00 516 232,28 0,00
SUPP. PROJECT TO MILK, MEAT SECTORS OnGo 5,6 27/11/2008 20/01/2010 31/12/2015 5 479 470,65 25 000 000,00 21,92
MUNICIPAL FORESTS MANAGEMENT (PAGEFCOM) OnGo 9,0 06/07/2005 24/03/2006 31/12/2014 10 721 318,62 19 240 000,00 55,72
MUNICIPAL FORESTS MANAGEMENT (PAGEFCOM) OnGo 9,0 06/07/2005 24/03/2006 31/12/2014 15 750 444,15 15 760 000,00 99,94
GOVERNANCE
PROJECT IN SUPPORT OF PUBLIC FINANCE
MANAGEMENT OnGo 3,6 24/11/2010 14/10/2011 31/12/2015 1 122 937,35 5 000 000,00 22,46
SOCIAL
DEVELOPMENT OF THE HEALTH SYSTEM OnGo 9,2 22/04/2005 28/12/2005 31/12/2014 15 103 348,30 22 000 000,00 68,65
MULTINATIONAL
BENIN/TOGO: ROAD REHABILITATION PROJECT OnGo 2,8 05/10/2011 12/11/2012 31/12/2016 8 364 209,85 38 870 000,00 21,52
BENIN/TOGO: ROAD REHABILITATION PROJECT OnGo 2,8 05/10/2011 02/12/2011 31/12/2016 6 715 062,74 34 270 000,00 19,59
PROJECT IN SUPPORT OF COTTON INDUSTRY -
BENIN OnGo 7,6 29/11/2006 27/02/2008 31/12/2014 5 965 918,10 8 000 000,00 74,57
BENIN - TOGO - GHANA POWER INTERCONNECTION OnGo 7,3 04/04/2007 12/07/2010 31/12/2015 2 836 586,94 17 390 000,00 16,31
93 050 274,07 266 798 781,23
III
Appendix III: table of costs per category and per source
CATEGORIES AfDF BENIN BOAD FEM
TOTAL
PROJECT Currency ML Total Currency ML Total Currency ML Total Currency ML Total
GOODS 0,11 0,03 0,14 0,00 0,00 0,00 0,19 0,05 0,25 0,00 0,00 0,00 0,38
WORKS 23,40 5,86 29,26 0,75 4,13 4,88 22,40 5,61 28,01 0,20 0,09 0,29 62,44
SERVICES 1,56 0,64 2,20 0,00 0,00 0,00 1,34 0,84 2,18 0,57 0,21 0,79 5,17
SUNDRY 0,00 0,00 0,00 0,00 1,91 1,91 0,00 0,00 0,00 0,00 0,00 0,00 1,91
Total baseline
costs 25,07 6,52 31,59 0,75 6,04 6,79 23,94 6,50 30,44 0,77 0,30 1,07 69,90
Material
contingencies 2,13 0,55 2,69 0,06 0,51 0,58 2,04 0,55 2,59 0,07 0,03 0,09 5,94
Financial
contingency 0,83 0,22 1,05 0,02 0,20 0,23 0,80 0,22 1,01 0,03 0,01 0,04 2,33
TOTAL 28,04 7,29 35,33 0,84 6,76 7,59 26,77 7,27 34,04 0,87 0,34 1,20 78,17
IV
Appendix IV. Benin: Parakou Urban Transportation Project
Frontloading Justification Note for the Country-Team Meeting
1. Country performance
The country’s growth economy has undergone some reorganization during the past three
years. The actual rate of growth of the economy has indeed increased from 2.6 % in 2010 to
3.5 % in 2011; 5.4 % in 2012, and 5.0 % in 2013. Growth recovery is mainly linked to the
increase in agricultural production and the activity of the trade segment. Inflation fell below
the community threshold of 3% in 2013. Public finance has improved with a public deficit
from 1.8 % of GDP in 2011 to 1.3 % in 2012 and 1.2 % in 2013, in connection with the
progress of customs receipts. External trade is still marked by a deficit which was aggravated
in 2013 due to the imports of mining interests. Economic outlook is bright with an economic
growth expected to be more than 6.0 % on average between 2014 and 2016, in connection
with the reforms undertaken in the port sector and in the agricultural sector and the
implementation of a major structuring investments program between 2014 and 2018.
2. Absorptive Capacity
Beninese authorities have been making efforts to increase its absorptive capacity. The active
portfolio of the Bank in Benin has 12 projects and is characterized by the predominance of
infrastructure (transportation, power, water and sanitation) with about 47 %. The portfolio
has two transportation projects, namely the Ndali-Nikki-Chicandou road located at the
Nigeria border and the multinational Lomé-Cotonou road rehabilitation project and
facilitation of the corridor Abidjan-Lagos. The overall disbursement rate is 38.1 %, with an
average age of 4.3 years. The most satisfactory performances are identified in transportation
infrastructure and in agriculture, according to the review of portfolio conducted in May 2014.
The country has just secured on the occasion of a round table held in June 2014 an important
support from the international financial community for the funding of a major investment
program seeking to increase the rate of investment to nearly 27.0 % in 2018 against 19%
currently. The country thus intends to set up before the end of 2014 a follow-up and
mobilization of commitment project deriving from the round table and increase its absorptive
capacity. Besides, the priority given by the Senior Management of the transportation sector,
the implementation of the new government contracting Code and the operationalization of the
public procurement unit at the Ministry of Transport and Public Works contribute to increase
the absorptive capacity in the transport sector.
3. Commitment of the country to carry out the reforms
Benin authorities have yielded encouraging results since 2012 by initiating a number of
structural reforms in the public finance management and key economic sectors. These reforms
aimed, inter alia (i) the increased mobilization of tax revenues and the improvement of the
efficiency of public expenditure; (ii) the modernization of the customs department and the
port authority; (iii) the improvement of the legal and organizational framework of the private
sector, (iv) the modernization of public administration.
The Bank has supported these reforms through the program in support of the economic and
financial reforms (PAREF) delivered in a satisfactory manner over the 2012-2013 period. The
country also concluded in June 2014, the implementation of the program of structural reforms
supported by the IMF extended Fund Facility. Discussions are ongoing with the IMF for the
development of a new program which should come into play before the end of 2014. The
implementation of structural reforms is still made more relevant for the delivery of the major
program of structuring investments decided on for the period 2014-2018.
V
Appendix V. Project Area Mapping
This map has been provided by the staff of the African Development Bank exclusively for the use of the readers of the report to which it is attached. The
names used and the borders shown on this map do not infer on the part of the AfDB Group and its members any judgment regarding the legal status of
a territory nor any approval or acceptance of its borders.
