The World Bank FOR OFFICIAL USE...
Transcript of The World Bank FOR OFFICIAL USE...
Document of
The World Bank
FOR OFFICIAL USE ONLY
Report No: 59947-ML
PROJECT PAPER
ON A
PROPOSED ADDITIONAL CREDIT
IN THE AMOUNT OF SDR14.2 MILLION
(US$23 MILLION EQUIVALENT)
TO THE
REPUBLIC OF MALI
FOR THE
SECOND TRANSPORT SECTOR PROJECT
May 25, 2011
Transport Sector
Country Department AFCW3
Africa Region
This document has a restricted distribution and may be used by recipients only in the
performance of their official duties. Its contents may not otherwise be disclosed without
World Bank authorization.
Pub
lic D
iscl
osur
e A
utho
rized
Pub
lic D
iscl
osur
e A
utho
rized
Pub
lic D
iscl
osur
e A
utho
rized
Pub
lic D
iscl
osur
e A
utho
rized
Pub
lic D
iscl
osur
e A
utho
rized
Pub
lic D
iscl
osur
e A
utho
rized
Pub
lic D
iscl
osur
e A
utho
rized
Pub
lic D
iscl
osur
e A
utho
rized
CURRENCY EQUIVALENTS
(Exchange Rate Effective April 30, 2011)
Currency Unit = FCFA
FCFA 441 = US$1
US$1.62 = SDR 1
FISCAL YEAR
January 1 – December 31
ABBREVIATIONS AND ACRONYMS
AF Additional Financing
AfDB African Development Bank
AGEROUTE Agence d’Exécution des Travaux d’Entretien Routier (Road
Maintenance Works Execution Agency)
AGETIER Agence d'Exécution des Travaux d'Infrastructures et d'Equipements
Ruraux (Infrastructure and Rural Equipment Works Execution Agency)
ARAP Abbreviated Resettlement Action Plan
BADEA Arab Bank for Economic Development in Africa
CAS Country Assistance Strategy
CMDT Compagnie Malienne pour le Développement des Textiles (Malian
Textile Development Company)
DNACPN Direction Nationale de l’Assainissement et du Contrôle des Pollutions et
des Nuisances
ERR
ESIA
Economic Rate of Return
Environmental Social Impact Assessment
ESMF Environmental Social Management Framework
ESMP Environmental Social Management Plan
EU European Union
FCFA CFA Franc (Franc of the Communauté Financière Africaine (Franc of
African Financial Community))
FM Financial Management
GDP Gross Domestic Product
GNI Gross National Income
GOM Government of Mali
GPN General Procurement Notice
GPRSF Growth and Poverty Reduction Strategy Framework
HIV/AIDS Human Immunodeficiency Virus/Acquired Immune Deficiency
Syndrome
IBRD International Bank for Reconstruction and Development
ICB International Competitive Bidding
IDA International Development Association
IDB Islamic Development Bank
IFR Interim Financial Report
IP Implementation Progress
ISA International Standards on Auditing
KfW Kreditanstalt fuer Wiederaufbau
M&E Monitoring and Evaluation
MET Ministry of Equipment and Transport
MTSP-II Mali Second Transport Sector Project
NCU National Coordination Unit
NGO Non Governmental Organization
OHADA Organisation pour l’Harmonisation en Afrique du Droit des Affaires
(Organization for Harmonization of Business Law in Africa)
OHVN Office de la Haute Vallée du Niger (Upper Niger River Valley Program)
OP/BP Operational Policy/Bank Procedure
ORAF Operational Risk Assessment Framework
PAD Project Appraisal Document
PAP Project Affected People
PBMC Performance Based Maintenance Contract
PCR Physical Cultural Resource
PCRMP Physical Cultural Resource Management Plan
PDO Project Development Objective
PIA Project Impact Area
PP Project Paper
RAI Rural Access Index
RAP Resettlement Action Plan
RED Road Economic Decision
RPF Resettlement Policy Framework
SDR Special Drawing Rights
SIL Specific Investment Loan
SPN Specific Procurement Notice
SSA Sub-Saharan Africa
TCIP Transport Corridors Improvement Project
TSP Transport Sector Project
UNDB United Nations Development Business
UNDP United Nations Development Program
US$ United States Dollar
VAT Value Added Tax
VOC Vehicle Operating Cost
WATTFP West Africa Transport & Transit Facilitation Project
Vice President: Obiageli K. Ezekwesili
Country Director: Ousmane Diagana
Sector Manager: Supee Teravaninthorn
Task Team Leader: Fabio Galli
THE REPUBLIC OF MALI
SECOND TRANSPORT SECTOR PROJECT
ADDITIONAL FINANCING
CONTENTS
Additional Financing Data Sheet ................................................................................................... i
I. Introduction ..........................................................................................................................1
II. Background and Rationale for Additional Financing in the amount of US$23 million ......1
III. Proposed Changes ................................................................................................................5
IV. Appraisal Summary .............................................................................................................7
Annex 1: Revised Results Framework and Monitoring Indicators ..............................................13
Annex 2: Operational Risk Assessment Framework (ORAF) .....................................................18
Annex 3: Procurement Arrangements ..........................................................................................21
Annex 4: Financial Management and Disbursement ...................................................................27
i
THE REPUBLIC OF MALI
SECOND TRANSPORT SECTOR PROJECT
ADDITIONAL FINANCING DATA SHEET
Basic Information - Additional Financing (AF)
Country Director: Ousmane Diagana
Sector Director: Jamal Saghir
Sector Manager: Supee Teravaninthorn
Team Leader: Fabio Galli
Project ID: P121693
Expected Effectiveness Date: September
30, 2011
Lending Instrument: Specific Investment
Loan (SIL)
Additional Financing Type: Cost Overrun
and Scale Up
Sectors: Transport (Roads and Highways)
100%
Themes: Rural services and infrastructure
90%, other urban development 10%
Environmental category: B
Expected Closing Date: December 31,
2014
Joint IFC: NO
Joint Level: NA
Basic Information - Original Project
Project ID: P090075 Environmental category: B (Partial
Assessment)
Project Name: Mali Second Transport
Sector Project
Expected Closing Date: December 31,
2014
Lending Instrument: Specific Investment
Loan (SIL)
Joint IFC: NO
Joint Level: NA
AF Project Financing Data
[ ] Loan [X] Credit [ ] Grant [ ] Guarantee [ ] Other:
Proposed terms: Standard IDA Credit Terms
AF Financing Plan (US$m)
Source Total Amount (US $m)
Total Project Cost:
Cofinancing:
Borrower:
Total Bank Financing:
IBRD
IDA
New
Recommitted
27.0
0.0
4.0
23.0
0.0
23.0
23.0
0.0
Client Information
Recipient: The Republic of Mali
Responsible Agency: Ministry of Equipment and Transport (MET), National Coordination
Unit (NCU)
Contact Person: Mr. Tiémoko Y. KONE
Telephone No.: (223) 66 75 95 18
Email: [email protected] or [email protected]
ii
AF Estimated Disbursements (Bank FY/US$m)
FY 2012 2013 2014 2015
Annual 2.0 10.0 9.0 2.0
Cumulative 2.0 12.0 21.0 23.0
Project Development Objective and Description
Original Project Development Objective: The PDO for the project is to provide access and
better transport services to the recipient‟s rural and urban communities through improvement
of essential rural infrastructure and important Bamako transport infrastructure.
Revised Project Development Objective: The PDO for the proposed Additional Financing
(AF) will remain the same as for the Mali Second Transport Sector Project (MTSP-II).
Project Description:
What follows is a short description of the MTSP-II components:
Component A (Rural Access Improvement). This component includes the following
five sub-components: (a) rehabilitation of about 350 km of rural roads (Bandiagara –
Douentza (including the Togo-Tongo section) (140 km) and Kita – Toukoto - Bafoulabe
(210 km)); (b) periodic maintenance of about 1,400 km of rural roads; (c) performance
based maintenance of about 400 km of rural roads; (d) implementation of socioeconomic
activities proposed by local communities; and (e) reconstruction of four river jetties
along the Niger River.
Component B (Bamako Urban Transport System Improvement). This component
includes the following four sub-components: (a) reconstruction of a 1.3 km bus-only lane
on the Boulevard du Peuple; (b) reconstruction of a partially dedicated 4.8 km ring road
for minibuses (SOTRAMA ring road) in downtown Bamako to segregate and facilitate
minibus traffic; (c) rebuilding pedestrian walkways and constructing two pedestrian
overpasses; and (d) providing institutional support, technical assistance and consultant
services to develop traffic management capacity for the city of Bamako.
Component C (Institutional Strengthening and Project Management). This
component includes the following six sub-components: (a) support the implementation of
financial and institutional mechanisms to sustain road maintenance; (b) implement a
rural road access index study; (c) management of social and environmental aspects of
the project including HIV/AIDS prevention and road safety; (d) development of medium
term sector strategies including capacity building for various technical structures and
implementation agencies; (e) project management and financial and technical audits; and
(f) establish a monitoring and evaluation system (M&E), including communications
activities.
The proposed AF is expected to fund the following activities which fall under Component A
(Rural Access Improvement) of the MTSP-II:
Rehabilitation of the Bandiagara – Douentza rural road including the Togo-Tongo
section and excluding design and supervision consultant services (estimated cost
about US$17.8 million): The rehabilitation of the Bandiagara – Douentza rural road was
already included in the MTSP-II but could not be funded due to higher than expected bid
iii
prices. The proposed AF is expected to fund the rehabilitation of the critical Bandiagara
– Douentza (including the Togo – Tongo section) rural road including a limited set of
socio-economic infrastructure such as drilling of water wells in villages along the project
roads.
Periodic maintenance of an additional 275 km of rural roads excluding design and
supervision consultant services (estimated cost about US$4.4 million): The MTSP-II
is already funding the maintenance of about 1,800 km of rural roads, of which about
1,400 km have already been maintained. The proposed AF is expected to fund the
periodic maintenance of an additional 275 km of rural roads. The periodic maintenance
works contracts may also include a limited set of socio-economic infrastructure such as
drilling of water wells in villages along the project roads.
Design and supervision consultant services (estimated cost about US$0.8 million): The proposed AF will fund all consultant services required to implement the rural road
maintenance works.
Safeguard and Exception to Policies
Safeguard policies triggered:
Environmental Assessment (OP/BP 4.01)
Natural Habitats (OP/BP 4.04)
Forests (OP/BP 4.36)
Pest Management (OP 4.09)
Physical Cultural Resources (OP/BP 4.11)
Indigenous Peoples (OP/BP 4.10)
Involuntary Resettlement (OP/BP 4.12)
Safety of Dams (OP/BP 4.37)
Projects on International Waters (OP/BP 7.50)
Projects in Disputed Areas (OP/BP 7.60)
[X]Yes [ ] No
[ ]Yes [X] No
[X]Yes [ ] No
[ ]Yes [X] No
[X]Yes [ ] No
[ ]Yes [X] No
[X]Yes [ ] No
[ ]Yes [X] No
[ ]Yes [X] No
[ ]Yes [X] No
Does the project require any exceptions from Bank policies?
Have these been approved by Bank management?
[ ]Yes [X] No
Conditions and Legal Covenants: Additional Financing
Financing Agreement
Reference
Description of Condition/Covenant Due Date
Article V.5.01 The delegated management contract for Part 1 (b)
(i) and (ii) and (c) of the Project between the
Recipient and the Infrastructure and Rural
Equipment Works Execution Agency and the
delegated management contract for Part 1 (a) and
Part (b) (iii) of the Project between the
Beneficiary and the Road Maintenance Works
Execution Agency have been updated in form and
substance satisfactory to the Association.
Effectiveness
condition.
Schedule 2.
Section 2.B.1
The Recipient shall maintain or cause to be
maintained a financial management system in
accordance with the provisions of Section 4.09 of
the General Conditions.
Until the project
closes.
iv
Schedule 2.
Section 2.B.2
Without limitation on the provisions of Part A of
this Section, the Recipient shall prepare and
furnish to the Association not later than forty-five
(45) days after the end of each calendar quarter,
interim unaudited financial reports for the Project
covering the quarter, in form and substance
satisfactory to the Association.
Prepared and
furnished to the
Association no
later than forty-five
(45) days after the
end of each
calendar quarter.
Schedule 2.
Section 2.B.3
The Recipient shall have its Financial Statements
audited in accordance with the provisions of
Section 4.09 (b) of the General Conditions. Each
audit of the Financial Statements shall cover the
period of one fiscal year of the Recipient. The
audited Financial Statements for each such period
shall be furnished to the Association not later
than six months after the end of such period.
No later than six
months after the
end of each period
of one fiscal year
of the Recipient.
Schedule 2.
Section 5.B.1
The Recipient shall recruit, in accordance with
the provisions of Section III of this Schedule, an
external auditor, with qualifications, experience,
and terms of reference satisfactory to the
Association, for purposes of the audit referred to
in Section 2.B.3 of this Schedule.
No later than thirty
(30) days following
the Effective Date
Schedule 2.
Section 5.B.2
The Recipient shall ensure that funds allocated to
road maintenance as reflected in its draft 2010
Finance Law are at a minimum FCFA
14,500,000,000, and that, no later than September
30, 2011, 2012, 2013 and 2014 respectively, said
funds as reflected in its draft 2011, 2012, 2013
and 2014 Finance Law, respectively, shall be
those agreed with the Association.
No later than
September 30,
2011, 2012, 2013
and 2014
respectively.
Schedule 2.
Section 5.B.3
The Recipient shall continue to ensure that at
least 70 percent of its dedicated yearly road
maintenance funds are generated by road user
fees.
The Recipient shall
continue to do that
until the project
closes.
1
I. Introduction
1. The Project Paper (PP) seeks the approval of the Executive Directors to provide
Additional Financing (AF) in the amount of Special Drawing Rights (SDR) 14.2 million
(US$23 million equivalent) to the Republic of Mali for the Second Transport Sector Project
(MTSP-II) (Credit 4303-MLI). What follows is the rationale for the proposed AF, the proposed
changes and appraisal summary.
2. The proposed AF will help to finance the costs associated with: (a) substantial
implementation of part of the rural road rehabilitation sub-component activities that could not be
funded under the MTSP-II due to higher than expected civil works costs; and (b) a scale-up of
the implementation of the rural road periodic maintenance sub-component.
3. The activities planned under the proposed AF and the financial management,
procurement and implementation arrangements will be the same as for the MTSP-II. The
implementation of the proposed AF is expected to be completed within 36 months of the original
closing date for the MTSP-II of December 31, 2011.
4. Partnership arrangements. The MTSP-II is not being co-financed with any other
development partner. However, together with the International Development Association (IDA),
several development partners (European Union (EU), African Development Bank (AfDB),
Islamic Development Bank (IDB), Kreditanstalt fuer Wiederaufbau (KfW) and the Arab Bank
for Economic Development in Africa (BADEA)) are supporting the objectives of the Government
of Mali‟s (GOM‟s) 2007-2011 “Transport Sector Policy Letter”.
II. Background and Rationale for Additional Financing in the amount of US$23 million
Country context
5. Mali is a large (1,241,238 square km) land locked country with a rapidly increasing
population of about 14 million unevenly spatially distributed due to the fact that about 60 percent
of its surface area is desert. In 2009 Mali‟s per capita gross national income (GNI) was about
US$580 and it ranked 160 out of 169 countries covered by the 2010 United Nations
Development Program (UNDP) Human Development Index.
6. Mali‟s economy has shown good macro-economic resilience over the last several years,
despite having been hit by a series of external shocks (poor rains, food and oil price increases,
decrease in the price of cotton on world markets, world economic slowdown). This has translated
into an average real gross domestic product (GDP) growth rate of about 4.6 percent for the
2004-2008 period. Despite the global recession of 2008-2009, the GDP growth rate was still
about 4.5 percent in 2009 and increased to about 5.8 percent in 2010. However, Mali‟s economy
remains vulnerable to exogenous and endogenous shocks such as deterioration in the terms of
trade, poor rainfall, fall in remittances, tourist arrivals and aid flows and an increase in food and
oil prices. Although gold has become the most important export commodity by value, cotton
remains the second most important, and accounts for about 85 percent of Mali‟s export tonnage.
2
7. The modal share for road transport in Mali is currently over 90 percent for goods and
passengers, and over 90 percent of goods by volume are exported by road. Although over the last
two decades the GOM has invested heavily in improving its road network, the total road network
length is about 89,000 km which gives it one of the lowest road densities in West Africa.
Furthermore, its Rural Access Index (RAI) is about 16.7 percent which is below the average for
sub-Saharan Africa (SSA). Based on the recently adopted road classification system, Mali has a
total classified road network of 89,024 km of which: (a) 14,102 km of national roads [Route
d'Intérêt National]; (b) 7,052 km of regional roads [Route d'Intérêt Régional]; (c) 28,929 km of
local roads [Route d'Intérêt local]; and (d) 38,941 km of communal roads [Routes d'Intérêt
Communal].
Objective, design and scope of the original Project
8. The MTSP-II was approved by the World Bank Board of Directors on May 24, 2007 and
became effective on August 31, 2007. The total estimated project cost was about
US$106.1 million of which about US$90.0 million was funded by IDA and the balance (about
US$16.1 million) by GOM. The closing date of the original MTSP-II is December 31, 2011,
which is being extended to December 31, 2014, to coincide with the closing date of the AF.
9. The Project Development Objective (PDO) is to provide access and better transport
services to the recipient‟s rural and urban communities through improvement of essential rural
infrastructure and important Bamako transport infrastructure.
10. The MTSP-II supports the objectives of GOM‟s “Transport Policy Letter” (2007-2011)
which focuses on: (a) regional social and economic development; (b) provision of sustainable
transport infrastructure; (c) increased mobility of persons in rural/urban areas; (d) increased
efficiency and performance of the transport of goods sector; (e) private sector participation in the
transport sector; (f) institutional capacity building in the transport sector; (g) integration of social
and environmental issues in the transport sector; and (h) Human Immunodeficiency
Virus/Acquired Immune Deficiency Syndrome (HIV/AIDS) prevention in the transport sector.
These strategic objectives are the key pillars of GOM‟s ongoing Transport Sector Program.
11. The MTSP-II objectives are also consistent with Mali‟s second Growth and Poverty
Reduction Strategy Framework (GPRSF) and the Bank‟s current Country Assistance Strategy
(CAS) Pillar One which focus on developing infrastructure and strengthening productive sectors.
More specifically, the project directly supports the following Pillar One‟s priorities: (a) food
security and rural development; and (b) infrastructure development. What follows is a short
description of the major MTSP-II components.
12. Component A (Rural Access Improvement). This component includes the following
five sub-components: (a) rehabilitation of about 350 km of rural roads (Bandiagara – Douentza
(including the Togo-Tongo section) (140 km) and Kita – Toukoto - Bafoulabe (210 km)); (b)
periodic maintenance of about 1,400 km of rural roads; (c) performance based maintenance of
about 400 km of rural roads; (d) implementation of socioeconomic activities proposed by local
communities; and (e) reconstruction of four river jetties along the Niger River.
3
13. Component B (Bamako Urban Transport System Improvement). This component
includes the following four sub-components: (a) reconstruction of a 1.3 km bus-only lane on the
Boulevard du Peuple; (b) reconstruction of a partially dedicated 4.8 km ring road for minibuses
(SOTRAMA ring road) in downtown Bamako to segregate and facilitate minibus traffic;
(c) rebuilding pedestrian walkways and constructing two pedestrian overpasses; and
(d) providing institutional support, technical assistance and consultant services to develop traffic
management capacity for the city of Bamako.
14. Component C (Institutional Strengthening and Project Management). This
component includes the following six sub-components: (a) support the implementation of
financial and institutional mechanisms to sustain road maintenance; (b) implement a rural road
access index study; (c) management of social and environmental aspects of the project including
HIV/AIDS prevention and road safety; (d) development of medium term sector strategies
including capacity building for various technical structures and implementation agencies;
(e) project management and financial and technical audits; and (f) establish a monitoring and
evaluation system (M&E), including communications activities.
Project implementation performance
15. Achievements. The MTSP-II has made good overall implementation progress despite the
funding gap.
16. Project ratings. During the last twelve months the PDO rating was either Moderately
Satisfactory or Satisfactory while the Implementation Progress (IP) rating was either Satisfactory
or Moderately Satisfactory. The March 2011 supervision mission for the MTSP-II rated the
achievement of the PDOs as Satisfactory and IP rating as Moderately Satisfactory. The primary
reason for the Moderately Satisfactory IP rating is due to the disbursement lag caused
by: (a) slower than expected implementation of the two largest road works contracts (Bamako
urban road infrastructure works and Badougou – Toukoto – Bafoulabe road rehabilitation works)
which make up over 50 percent of project funds; and (b) decision taken by GOM in agreement
with IDA, to put on hold certain project activities to preserve sufficient unallocated funding to
fully fund the urban transport infrastructure component. As a result of the October 2010 midterm
review of the project, it was decided to re-start the implementation of the balance of activities
that had been put on hold. Furthermore, the contractors in consultation with GOM, have put in
place measures such as the mobilization of additional plant, personnel and equipment, to
improve the physical implementation performance of the above cited works contracts. This
means that project disbursements are now expected to pick up substantially over the next six
months. What follows is an update of project implementation progress broken down by major
component.
17. Component A. Tangible improvements have already been achieved under the MTSP-II in
improving rural road access and mobility through the implementation of the following major
sub-components: (a) periodic maintenance of about 1,000 km of key rural roads throughout Mali;
(b) performance based maintenance of about 400 km of key rural roads; (c) rehabilitation of the
first 45 km of the Badougou – Toukoto – Bafoulabe rural road; and (d) rehabilitation/
reconstruction of four river jetties.
4
18. Component B. The MTSP-II has also made progress in improving the Bamako urban
transport system through: (a) rehabilitation of about 18 km of pedestrian walkways;
(b) rehabilitation of the SOTRAMA ring road; and (c) substantial rehabilitation of the about
1.3 km Boulevard du Peuple.
19. Component C. The MTSP-II has also made good progress in facilitating institutional
strengthening of the road transport sector. For example, with support from the MTSP-II, GOM
has been able to fully operationalize the Mali Road Authority, which is responsible for road
maintenance funding. Furthermore, the MTSP-II was partially responsible for GOM increasing
in 2009 the fuel levy dedicated for road maintenance from FCFA 3 per liter to FCFA 25 per liter.
This has meant that for fiscal year 2010, about 85 percent of Mali‟s Road Authority budget was
generated by road user charges, of which two-thirds was derived from the fuel levy. Finally, by
funding two major road maintenance contracts covering about 400 km, the MTSP-II has
successfully introduced Performance Based Road Maintenance Contracts (PBMC) to Mali.
20. Project disbursements. As of end-April 2011 cumulative disbursements for the MTSP-II
had reached about 62 percent (US$56.2 million) of the original Credit amount. Thanks to
measures already taken by GOM to boost disbursements, by end-July 2011 cumulative project
disbursements are expected to reach about US$68 million, which is about 75 percent of the
original Credit amount.
21. Fiduciary compliance. The MTSP-II continues to be in compliance with all legal
covenants and there are no unresolved Financial Management (FM), procurement, social and
environmental fiduciary issues. In addition, the MTSP-II has not had any audit issues and all
audits are current.
Rationale for the proposed AF
22. The overall rationale for the proposed AF is to assist the MTSP-II to fully achieve its
PDO which is to provide access and better transport services to the recipient‟s rural and urban
communities through improvement of essential rural infrastructure and important Bamako
transport infrastructure. This will be achieved by funding under the proposed AF an
unanticipated financing gap and by scaling up the implementation of one of the project sub-
components. The proposed AF will support the following specific activities: (a) rehabilitation of
the Bandiagara – Douentza rural road (including the Togo-Tongo section) (about 140 km);
(b) periodic maintenance of an additional 275 km of rural roads; and (c) design and supervision
consultant services.
23. The proposed AF is expected to cover the financing gap caused by higher than
anticipated bid prices for the rural road rehabilitation works contracts (Bandiagara – Douentza
and Badougou – Toukoto – Bafoulabe) when compared to the MTSP-II Project Appraisal
Document (PAD) estimates. The higher than expected costs were primarily caused by an
increase in the price of petroleum products and road construction costs throughout Sub Sahara
Africa (SSA) during the 2007/2008 period. The activity that will be scaled up under the proposed
AF is the rural road periodic maintenance sub-component. So far under the MTSP-II about
5
1,400 km of rural roads have already been successfully maintained and under the proposed AF
an additional 275 km of rural roads are expected to be maintained.
24. The rural roads that are expected to be funded under the proposed AF are critical to the
country‟s overall economic development, rural connectivity and accessibility. For example, the
Bandiagara – Douentza (including the Togo-Tongo section) rural road connects the country‟s
main tourist area (Plateau Dongo/Gourma) with the national road network, and provides an
alternative all weather road between the cities of Sevare and Douentza, and through one of the
poorest and most isolated parts of Mali. The periodic maintenance of an additional 275 km of
rural roads will improve all weather rural accessibility and agricultural productivity in key cotton
producing areas.
25. Finally, GOM evaluated the possibility of funding through its own budget the cost
overruns and scaling up of certain activities of the MTSP-II but was not able to mobilize the
requisite funding. Therefore, GOM has requested IDA for additional funding to cover both the
funding gap and to scale up certain project activities to fully meet the PDO for the MTSP-II.
III. Proposed Changes
26. PDO. The PDO for the MTSP-II remains relevant and consistent with the activities being
proposed under the AF. Therefore, no changes and/or modifications will be made to the PDO.
The proposed AF will only be supporting activities that were included in the MTSP-II.
27. Implementation framework. The implementation arrangements for the proposed AF will
remain the same as for the MTSP-II. The existing Steering Committee will be responsible for
overall oversight for the implementation of the MTSP-II and proposed AF, while the existing
National Coordination Unit (NCU) will be responsible for overall coordination and
implementation. The Ministry of Equipment and Transport (MET) will delegate the management
of the implementation of the rural road works component to the Road Maintenance Works
Execution Agency (AGEROUTE) and the Infrastructure and Rural Equipment Works Execution
Agency (AGETIER) through a “Convention de Maitrise d’Ouvrage Déleguée”. Under the
MTSP-II both AGEROUTE and AGETIER have been effective in expediting the procurement
process and in closely managing on the field the implementation of civil works contracts.
Furthermore, the FM, procurement, social and environmental fiduciary arrangements for the
proposed AF are expected to remain the same as for the MTSP-II.
28. Social and environmental safeguards. The environmental category rating for the
MTSP-II is „B‟. Taking into account that the proposed AF will not fund any new activities, the
environmental rating for the proposed AF will also remain a category „B‟. No additional
safeguard policies will be triggered beyond what has already been triggered for the MTSP-II.
29. Environmental and social safeguards for the civil works to be financed under the
proposed AF will be guided by the Environmental Social Management Framework (ESMF) and
Resettlement Policy Framework (RPF) prepared for MTSP-II. Environmental Social Impact
Assessments (ESIAs)/Environmental Social Management Plans (ESMPs) and Resettlement
Action Plans (RAPs) are expected to be prepared as and when necessary during project
6
implementation once sites and works are identified. A Physical Cultural Resources Management
Plan (PCRMP) has been prepared, consulted upon and disclosed in April 2011 for the
Bandiagara – Douentza rural road (including the Togo-Tongo section), rehabilitation works to
protect cultural heritage sites along the road and will be implemented together with the
environmental mitigation measures.
30. Results framework. The proposed AF is expected to fund activities already covered
under the MTSP-II. The results framework has been slightly revised to assess progress to date in
the implementation of the activities being implemented under the MTSP-II and to include the
planned activities under the proposed AF. More specifically under the proposed AF: (a) the
number of km of rural roads to be maintained under the project will be increased from about
1,800 km to about 2,075 km; (b) the number of km of rural roads to be rehabilitated will decrease
from about 350 km to about 295 km due to the fact that the Kita – Toukoto (about 55 km) section
of the Kita – Toukoto – Bafoulabe road had already been rehabilitated under a different
development partner project funding; (c) the number of local development activities
implemented has been modified to number of local infrastructure constructed/rehabilitated since
this activity is limited to minor civil works (i.e.; drilling of wells and minor rehabilitation to
schools and rural dispensaries) in selected villages along the rural roads being maintained under
the project; and (d) the Sorokoro – Fana rural road section (27 km) was dropped due to the fact
that the section was in good condition and was replaced by another rural road section that was
more deteriorated and required periodic maintenance. Annex 1 gives the details of the expected
changes in the M&E framework for the proposed AF.
Proposed AF activities
31. The total estimated cost of the proposed AF activities, including all taxes is about
US$27 million. IDA is expected to provide about US$23 million in financing for the proposed
AF, while GOM will provide about US$4 million in counterpart funding in the form of tax
exemptions. This is the same counterpart funding arrangement that was used for the MTSP-II.
The proposed AF is expected to fund the following activities which fall under Component A
(Rural Access Improvement) of the MTSP-II:
Rehabilitation of the Bandiagara – Douentza rural road including the Togo-Tongo
section and excluding design and supervision consultant services (estimated cost
about US$17.8 million): The rehabilitation of the Bandiagara – Douentza rural road
(including the Togo – Tongo section) was already included in the MTSP-II but could not
be funded due to higher than expected bid prices. The proposed AF is expected to fund
the rehabilitation of the critical Bandiagara – Douentza (including the Togo – Tongo
section) rural road including a limited set of socio-economic infrastructure such as
drilling of water wells in villages along the project roads.
Periodic maintenance of an additional 275 km of rural roads excluding design and
supervision consultant services (estimated cost about US$4.4 million): The MTSP-II
is already funding the maintenance of about 1,800 km of rural roads, of which about
1,400 km have already been maintained. The proposed AF is expected to fund the
periodic maintenance of an additional 275 km of rural roads. The periodic maintenance
7
works contracts may also include a limited set of socio-economic infrastructure such as
drilling of water wells in villages along the project roads.
Design and supervision consultant services (estimated cost about US$0.8 million):
The proposed AF will fund all consultant services required to implement the rural road
maintenance works.
Table 1 – MTSP-II and Proposed AF Costs (US$ million equivalent)
Project Component Original Project Cost Additional Financing Revised Cost
IDA GOM Total IDA GOM Total IDA GOM Total
A. Rural Access
Improvement 68.8 12.3 81.1 23.0 4.0 27.0 91.8 16.3 108.1
B. Bamako Urban
Transport System
Improvement
15.0 3.1 18.1 0.0 0.0 0.0 15.0 3.1 18.1
C. Institutional
Strengthening and Project
Management
6.2 0.7 6.9 0.0 0.0 0.0 6.2 0.7 6.9
TOTAL 90.0 16.1 106.1 23.0 4.0 27.0 113.0 20.1 133.1
32. Implementation time frame for proposed AF activities. The activities to be funded by
the proposed AF are expected to be completed by December 31, 2014, which is within 36
months of the December 31, 2011 original closing date of the MTSP-II.
IV. Appraisal Summary
Proposed activities
33. The activities that are planned to be funded under the proposed AF are the same as those
funded under the Component A (Rural Access Improvement) of the MTSP-II and are:
(a) rehabilitation of Bandiagara – Douentza (including the Togo-Tongo section) rural road (about
140 km),; (b) periodic maintenance of an additional 275 km of rural roads; and (c) design and
supervision consultant services.
Economic analysis
34. The economic analysis for the proposed AF rural road rehabilitation and maintenance
works will use the same methodology that was used for the MTSP-II.
35. The Bandiagara – Douentza rural road (including the Togo-Tongo section) was selected
from the priority list of roads identified under the IDA funded Transport Sector Project (TSP)
and is part of the GOM‟s priority road investment program. The estimated Economic Rate of
Return (ERR) for the rehabilitation of the Bandiagara - Douentza (including the Togo – Tongo
section) rural road has been assessed using the Road Economic Decision (RED) Model and has
been estimated in the PAD at about 15 percent. The economic analysis is in the process of being
updated to re-confirm the ERR for the planned Bandiagara – Douentza (including the Togo-
Tongo section) rural road rehabilitation works.
8
36. Consistent with the MTSP-II, the rural roads slated for periodic maintenance under the
proposed AF are expected to be selected from cotton growing areas or areas with high
agricultural potential. They will then be submitted to the same multi-criteria approach that was
used under the MTSP-II, which is based on a combination of economic and social benefits such
as: (a) provision of all weather rural access; (b) reduction in Vehicle Operating Costs (VOCs);
and (c) generation of agricultural benefits and surpluses.
Implementation arrangements
37. Overall implementation of the proposed AF will be coordinated and supervised by the
already existing and fully functioning Steering Committee established under the MTSP-II. The
transport sector NCU, is already established and working on the implementation of other IDA
funded projects, and will continue to be used to coordinate the implementation of the proposed
AF activities. The NCU will also continue to be responsible to meet the financial, procurement,
social, environmental, M&E aspects for the proposed AF.
38. The existing implementation arrangements in which the management of road works
contracts has been delegated by GOM to AGEROUTE and AGETIER will remain in place. The
proposed AF will build on the experience accumulated with the implementation of the parent
project as well as that of other IDA funded transport sector projects to ensure that AGEROUTE
and AGETIER play their full intended role as GOM‟s technical advisors and engineer (Maîtrise
d’Ouvrage Déléguée). The focal points already in place in the two agencies will continue
working in close collaboration with the NCU to implement the proposed AF activities.
Social and environmental safeguards
39. Environmental rating. The environmental rating for the proposed AF will remain the
same (B rating) as for the MTSP-II, and the same safeguard policies (Operational Policy/Bank
Procedure (OP/BP) 4.01, 4.11, 4.12 and 4.36) that were triggered for the MTSP-II are also
triggered for the proposed AF.
40. Background on implementation of social and environmental aspects of MTSP-II. As
part of the MTSP-II, an ESMF and a RPF were prepared and disclosed in-country in December
2006 and at the World Bank‟s InfoShop in January 2007. The environmental and social
safeguard measures for the MTSP-II road maintenance works were guided by the ESMF and the
RPF. This is because the rural roads to be rehabilitated or periodically maintained under the
MTSP-II were not all pre-selected and their locations were unknown during preparation. Rural
roads maintenance works financed under the MTSP-II were expected to be identified and
screened, on a programmatic/rolling basis, during the life of the MTSP-II. The ESMF and RPF
were disclosed in 2006 in-country and in 2007 at the World Bank‟s InfoShop for the MTSP-II,
and after review, were re-disclosed in 2008 during the preparation of the Mali component of the
West Africa Transport and Transit Facilitation Project (WATTFP).
41. Consistent with the disclosed ESMF, and RPF, site specific ESMPs have been prepared
and disclosed for each rural road rehabilitation and maintenance works funded under the
MTSP-II. The actual implementation of the ESMPs was carried out as part of the road
9
rehabilitation works contracts and supervised by the supervision consultants,
AGEROUTE/AGETIER and NCU. Environmental mitigation actions carried out under the
MTSP-II are primarily related to: (a) reforestation along the rural roads rehabilitated/maintained;
(b) dust and noise abatement during construction; (c) safe disposal of waste and excess
constructions materials; (d) ensuring that local flora and fauna is not disturbed, captured or
hunted by contractors; (e) restoring borrow pits and quarries used for the road rehabilitation and
periodic maintenance works; (f) sensitizing local communities on the importance of preserving
environment and maintaining the planted trees; and (g) sensitizing contractors‟ employees and
local communities alongside the roads on HIV/AIDS and other sexually transmitted diseases risk
mitigations. Where required, an Abbreviated Resettlement Action Plan (ARAP) has been
prepared and implemented consistent with the parameters of the already disclosed RPF.
42. The MTSP-II prepared a Physical Cultural Resources (PCR) study, inclusive of a
PCRMP, covering the Bandiagara-Douentza road (including the Togo-Tongo section) and Kita-
Tokoto-Bafoulabé rural roads, to ensure that due diligence will be exercised at all time during the
rehabilitation works. This study was disclosed in April 2011. Consistent with the triggering of
the cultural property policy, the project: (a) carried out a systematic study to identify and analyze
the potential disruption that rural roads rehabilitation could cause on cultural heritage in the
Project Impact Area (PIA); (b) developed a PCRMP for archaeological and cultural resources
and mitigation of impacts; and (c) geo-referenced the elements of archaeological and cultural
interest to be considered during project implementation. These main elements of cultural and
archeological importance concern cemeteries and places of worship and remembrance. The PCR
study emphasizes preserving the cultural resources deemed valuable from the point of view of
the local communities. This will require sustained consultation with local communities at the
preparatory, construction and operation of the road rehabilitated under the MTSP-II and
proposed AF.
43. OP/BP 4.36 (Forestry) was triggered for the MTSP-II due to the need to conduct
reforestation along the roads rehabilitated/maintained to compensate for loss of trees and
vegetation.
44. Finally, to monitor the implementation of the social and environmental aspects of the
MTSP-II, the NCU has recruited a Social and Environmental Specialist. As a result of putting in
place a robust social and environmental framework to cover the social and environmental
impacts of the multi-year rolling road rehabilitation/periodic rural road maintenance program
under the MTSP-II, the overall management of the social and environmental safeguards of the
MTSP-II has been deemed to be satisfactory.
45. Implementation of social and environmental aspects of proposed AF. The
implementation of the social and environmental safeguard measures for the proposed AF will
follow the provisions of ESMF and RPF that were prepared and disclosed for the whole transport
sector to meet the requirements of the MTSP-II. Once the full and final list of existing rural roads
to be maintained under the proposed AF has been finalized, ESIAs/ESMPs and any
RAPs/ARAPs as required, will be prepared for review by IDA. The finalization of the
ESIAs/EMPs and/or RAPs/ARAPs will be guided by the provisions of the recently completed
PCR study. This is to ensure that the potential PCR impacts of the road rehabilitation works
10
funded under the proposed AF are assessed and mitigation measures commensurate to those
impacts, including proper handling of chance finds are implemented in the design, screening,
implementation, monitoring of the proposed road maintenance works.
46. Once the site specific social and environmental safeguard instruments have been
reviewed and endorsed, they will be disclosed in country and at Bank InfoShop before the rural
roads rehabilitation/maintenance works start on the ground. The specific social and
environmental mitigation measures will be included in the contracts for rural road rehabilitation
and maintenance works and their implementation will be closely supervised by the supervision
consultants, AGEROUTE and AGETIER, and periodically by the NCU. The social impact
mitigation measures, linked to the possible need to acquire land or displace structures of Project
Affected Peoples (PAPs), will be prepared and implemented following the RPF and with the
assistance of NGOs or directly by the NCU.
47. As in the case of the MTSP-II, for the proposed AF, implementation monitoring of the
ESMPs and RAPs/ARAPs for the road rehabilitation works will be done by the NCU,
AGEROUTE and AGETIER who provide advice and technical support to contractors to reduce
the environmental impact during civil works execution. Sensitization campaigns will be
organized ahead of the rural roads works start, to explain the content of the measures and to
ensure the ownership and the participation by the concerned population. The NCU, AGEROUTE
and AGETIER will also review and approve the ESMPs, RAPs/ARAPs and related bidding
documents before their disclosure to ensure compliance with criteria established in the social and
environmental framework for the MTSP-II and proposed AF. Finally, the external monitoring
which is devolved to the Direction Nationale de l’Assainissement et du Contrôle des Pollutions
et des Nuisances (DNACPN), to verify compliance with national and Bank safeguard policies,
will now be expanded to include the PCR impact of planned road works activities under the
proposed AF.
Procurement
48. The procurement arrangements for the proposed AF will be the same as for the MTSP-II.
The only major difference is that for the proposed AF activities, the more up-to-date
procurement guidelines of January 2011 will apply - "Guidelines: Procurement of Goods, Works
and Non-consulting Services Under IBRD Loans and IDA Credits and Grants by World Bank
Borrowers" dated January 2011; and "Guidelines: Selection and Employment of Consultants
under IBRD Loans and IDA Credits and Grants by World Bank Borrowers" dated January 2011.
49. For each contract to be financed under the proposed AF, the different procurement or
consultant selection methods, estimated costs, prior review requirements, and time frame will be
described in the Procurement Plan, see Annex 3 for more details. A Procurement Plan for the
activities expected to be funded under the proposed AF has been prepared and approved by IDA
on April 4, 2011. The Procurement Plan is expected to be updated at least annually or as required
to reflect the project implementation progress.
11
50. The Borrower will prepare and submit to the Bank a General Procurement Notice (GPN)
which will be in addition to the GPN for the MTSP-II. A Specific Procurement Notice (SPN) for
all goods (if any) and works to be procured under International Competitive Bidding (ICB) and
Requests for Expressions of Interest for all consulting services costing the equivalent of
US$200,000 and above will be published in United Nations Development Business (UNDB) and
in the national press, in addition to other media with wide circulation. All other specific
procurement notices and other requests for expressions of interest shall be published at least in
the national press with wide circulation.
Financial Management
51. The proposed AF is expected to use the same financial management and disbursement
procedures that are being used for the MTSP-II. A financial management assessment of the NCU
that is already managing the FM aspects of the MTSP-II, and will manage the FM aspects of the
proposed AF, was conducted in accordance with the new World Bank Group Financial
Assessment Principles.
52. The overall financial management performance of the MTSP-II was rated Satisfactory
and the related FM risk was rated as Moderate following the last detailed review of FM aspects
in October 2010, which was updated in March 2011. Staffing remains adequate and proper books
of accounts and supporting documentation are kept in respect of all expenditures. The FM audit
for the year ending December 2009 for the MTSP-II was submitted on time, and was
unqualified. The interim un-audited financial reports for the MTSP-II are also in general
submitted on time and are acceptable to IDA.
53. In order to maintain and strengthen this adequate control environment, the MTSP-II
needs to: (a) update the FM and administrative procedures manual to take into account the
proposed AF activities; (b) include the proposed AF activities in the scope of the financial audit
for the year 2011; and (c) recruit a technical auditor to review technical aspect of the proposed
AF yearly implementation.
54. The overall risk for the proposed AF is rated as Low and based on the assessment the
management of the FM aspects satisfies the Bank‟s minimum requirements (OP/BP 10.02), and
therefore is adequate to provide, with reasonable assurance, accurate and timely financial
management information on the status of the project as required by IDA.
55. Effectiveness conditions. There are no FM effectiveness conditions for the proposed AF.
Proposed AF Risks
56. The activities to be funded under the proposed AF are subject to a limited range of risks
that can easily be mitigated. The weighted risk profile of the proposed AF activities can be
considered Low. See Annex 2 (Operational Risk Assessment Framework (ORAF)) for more
details.
12
Financial Terms and Conditions for Additional Financing
57. The proposed AF would be provided as an IDA Credit. The Country Financing
Parameters allows for up to 100 percent disbursement including taxes and duties. However,
GOM has agreed to provide about FCFA1.8 billion (about US$4 million equivalent) of
counterpart funds in the form of Value Added Tax (VAT) exemption for the civil works. This is
the same counterpart funding arrangement that has been successfully used for the MTSP-II.
13
Annex 1: Revised Results Framework and Monitoring Indicators
The Republic of Mali: Second Transport Sector Project – Additional Financing
Table 1: Results Framework
Revisions to the Results Framework Comments/
Rationale for Change
PDO
Current (PAD) Proposed
To provide access and better
transport services to the
Recipient‟s rural and urban
communities through
improvement of essential rural
infrastructure and important
Bamako transport
infrastructure
No change
PDO indicators
Current (PAD) Proposed change*
• Percentage of rural
population with access to all-
season road
Revised
Share of rural population with access to an
all-season road
Alignment with CORE indicator
wording.
• Time spent to reach specific
rural services from home Dropped
This indicator is difficult to define
and measure. The indicators on
people with access and the average
travel time will cover the main
results of the project intervention.
• Average time per km
traveled
Revised
Average time per km traveled
(rural/urban), disaggregated by:
- Roads under performance based
contracts
- Badougou - Bafoulabé road
- Rural road under periodic
maintenance
- Bandiagara - Douentza road
Breakdown per type of road has
been made in order to better
capture the improvement due to the
MTSP-II.
• Travel time along the
Boulevard du Peuple
No change
Used as outcome indicator in the
PAD.
• Accidents on Boulevard du
Peuple are reduced Continued
The AF does not include any urban
transport activities. Activities are
expected to be completed and
achieved by December 31, 2011.
Additional transport sector core indicators applicable to the AF:
New
Roads in good and fair condition as a share
of total classified roads (%)
Core indicator.
New
Total number of direct project
beneficiaries (total number), of which
female (percentage)
The use of this indicator is now
required for all investments
projects.
The direct project beneficiaries are
defined as people living in the PIA.
14
Revisions to the Results Framework Comments/
Rationale for Change
Intermediate Results indicators
Current (PAD) Proposed change*
Component A: Rural Access Improvement
• Number of km of road
rehabilitated (as per PAD)
Continued + revised
Rural roads rehabilitated (km) (decreased
from 350 km to 295 km)
The Kita – Toukoto road (about
55 km) has been dropped from the
MTSP-II.
• Number of km of road
maintained
Continued + revised
(increased from 1,800 km to 2,075 km)
Scaling up of periodic maintenance
component from 1,800 km to
2,075 km.
• Number of local
development activities
implemented
Continued + revised
Local infrastructure constructed/
rehabilitated (number)
The name of the indicator has been
modified to better reflect the
specific nature of the activities.
• Number of wharves built. Achieved
This activity has already been
completed under the MTSP-II, and
the related indicator has met the
target value of 4.
Component B: Bamako Urban transport System Improvement
New
Urban roads rehabilitated (km)
The proposed AF does not include
any urban transport activities.
Activities are expected to be
completed and achieved by
December 31, 2011.
New
Travel time for minibuses on SOTRAMA
ring road
The proposed AF does not include
any urban transport activities.
However, this is new indicator to
more comprehensively assess the
outcomes of the MTSP-II.
Component C: Institutional Strengthening and Project Management
• User charges are at least 40%
of the road maintenance
financing needs by 2008, and
70% by 2011
Continued
Already achieved in 2009, with a
road user charges‟ share in the road
fund‟s budget of 78%.
Furthermore, the resources of the
road fund‟s budget are expected to
be entirely composed for the first
time in 2010 of road user charges,
of which two-thirds being derived
from the fuel levy. The
sustainability of this financing
mechanism will be monitored
during the proposed AF period.
* Indicate if the indicator is Dropped, Continued, New, Revised, or if there is a change in the end of project target value
15
Table 2: Arrangements for Results Monitoring
Project Development Objective (PDO):
To provide access and better transport services to the Recipient’s rural and urban communities through improvement of essential rural infrastructure and important
Bamako transport infrastructure
PDO Level Results Indicators1
Co
re UOM2
Baseline
Original
Project
Start
(2008)
Progress
To Date
(2011)3
Cumulative Target Values4
Frequency Data Source/
Methodology
Responsibility
for Data
Collection
Comments 2012 2013 2014
1. Share of rural population with
access to an all-season road (in
the project area)
% 32 40 42 44 45 Annual Supervision
report NCU
2. Average time per km traveled
Minutes
per km
Not
defined
2a. Roads under performance
based contracts 1 1 1 1
Before the
works start
and after the
works are
completed
Supervision
report NCU
The value of this
indicator is not
cumulative and
can be measured
only before the
works start and
after the works
are finished.
There is no value
when the works
are in progress.
2b. Badougou - Bafoulabé road 1
2c. Rural road under periodic
maintenance (original project) 1.5 1.5 1.5
2d. Bandiagara - Douentza road 6 1.75
2e. Rural road under periodic
maintenance (additional financing) 1.5 1.5
3a. Travel time along the
Boulevard du Peuple
3b. Accidents on Boulevard du
Peuple
Minutes
Number
35
81
16
30
16
30
16
16
Achieved under
the MTSP-II.
1 Please indicate whether the indicator is a Core Sector Indicator (for additional guidance – please see http://coreindicators).
2 UOM = Unit of Measurement.
3 For new indicators introduced as part of the additional financing, the progress to date column is used to reflect the baseline value.
4 Target values should be entered for the years data will be available, not necessarily annually. Target values should normally be cumulative. If targets
refer to annual values, please indicate this in the indicator name and in the “Comments” column.
16
4. Roads in good and fair
condition as a share of total
classified roads
% 48 70 70.5 71 71 Annual Supervision
report NCU
Mali‟s total
classified road
network is 89,024
km.
Beneficiaries5
5. Direct project beneficiaries
Number Not
defined
0 2,682,000
End of project End of project
report NCU
This new
indicator will be
measured only at
the end of the
project.
5a. Original project 0 2,536,000
5b. Additional financing 0 146,000
6. Female 0 49.9%
6a. Original project 0 49.9%
6b. Additional financing 0 50.0%
Intermediate Results and Indicators
Intermediate Results Indicators
Co
re
Unit of
Measur
ement
Baseline
Original
Project
Start
(2008)
Progress
To Date
(2011)
Target Values
Frequency Data Source/
Methodology
Responsibility
for Data
Collection
Comments 2012 2013 2014
Intermediate Result 1: Rural Access Improvement
7. Rural roads rehabilitated
Km 0
45 155 200 295
Annual Supervision
report
NCU
AGEROUTE
7a. Badougou - Bafoulabé road 45 155 155 155
7b. Bandiagara - Douentza road 0 0 45 140
8. Rural road maintained
Km 0
1400 1800 2075 2075
Annual Supervision
report
NCU
AGETIER
8a. Original project 1400 1800 1800 1800
8b. Additional financing 0 0 275 275
9. Number of local infrastructure
constructed/rehabilitated Number 0 0 145 255 365
Annual Supervision
report
NCU
AGEROUTE
AGETIER
9a. Original project 138 237 334
5 All projects are encouraged to identify and measure the number of project beneficiaries. The adoption and reporting on this indicator is required for
investment projects which have an approval date of July 1, 2009 or later (for additional guidance – please see http://coreindicators).
17
9b. Additional financing 7 18 31
10. Number of wharves built Number 0 4 4
Achieved under
the original
project.
Intermediate Result 2: Bamako Urban Transport System Improvement
11. Non-rural roads rehabilitated Km 0 6.3 6.3 Achieved under
the original
project. 12. Travel time for minibuses on
SOTRAMA ring road Minutes
Not
defined 45 25 25 25
Intermediate Result 3: Institutional Strengthening
13. User charges are at least 40%
of the road maintenance financing
needs by 2008, and 70% by 2011.
% 25 786 80 80 80 Annual Road Funds
Report NCU
Already achieved
in 2009, with a
road user
charges‟ share in
the road fund‟s
budget of 78%.
Furthermore, the
resources of the
road fund‟s
budget are
expected to be
entirely
composed for the
first time in 2010
of road user
charges, of which
two-thirds being
derived from the
fuel levy. The
sustainability of
this financing
scheme will be
monitored during
the proposed AF
period.
6 Situation as of December 30, 2009.
18
Annex 2: Operational Risk Assessment Framework (ORAF)
Mali: Second Transport Sector Project – Additional Financing
Project Development Objective(s)
The PDO is to provide access and better transport services to the Recipient‟s rural and urban communities through improvement of
essential rural infrastructure and important Bamako transport infrastructure. The PDO for the proposed AF will remain exactly the
same as the original project.
PDO Level Results
Indicators:
1. Share of rural population with access to an all-season road (aligned with Core Indicator)
2. Average time per km traveled (rural/urban)
3. Rural roads rehabilitated (km)
4. Roads in good and fair condition as a share of total classified roads (percentage)
5. Direct project beneficiaries (total number), of which female (percentage)
Risk Category Risk Rating Risk Description Proposed Mitigation Measures
Project Stakeholder Risks
Low
The commitment of GOM and key
stakeholders for investments in the
rural and urban transport
infrastructure declines.
No specific mitigation measures except
continued successful implementation of
all project components.
Implementing Agency Risks Medium-I
Weakening overall implementing
agency capacity to implement all
aspects of the project.
NCU needs to continue to facilitate all
aspects of project implementation.
Project Risks
Design Risk Low
Complex project design affecting pace
of implementation of project and
proposed AF activities.
Part of the original MTSP-II activities
have already been successfully
implemented which reduces the design
risk since a narrower range of activities
remains to be implemented. Furthermore,
the proposed AF will only focus on a
19
limited set of activities in the rural roads
component that were already included and
appraised under the original project.
Social & Environmental
Risk Medium-L
Possible slow on the ground
implementation of social and
environmental mitigation measures
developed for the MTSP-II and
proposed AF activities.
The ESMF and RPF prepared for the
MTSP-II has guided the preparation of
ESIAs, ESMPs, and RAPs/ARAPs as the
sites and civil works have been finalized.
The AF includes a Cultural Property
Management Plan for the Bandiagara –
Douentza (including the Togo – Tongo
section) rural road segment.
Capacity and institutional arrangements
are already in place to implement the
social and environmental safeguards
mitigation measures for all MTSP-II and
proposed AF civil works. However,
further capacity building will be
undertaken to ensure more comprehensive
monitoring of the on the ground
implementation of social and
environmental safeguard measures.
Program & Donor Risk Low
Unexpected divergence in
development partners priorities in the
transport sector.
Development partners continue to meet on
a regular basis to ensure full alignment
and coherence in transport sector
priorities.
Delivery Quality Risk Medium-I
Higher than expected construction
costs, slow implementation and lower
than expected quality.
Careful review of unit prices used in
design and detailed engineering studies to
ensure realistic cost estimates of works.
Use of existing implementation
arrangements with AGEROUTE and
AGETIER as the „engineer‟ to ensure
proper supervision of civil works
contracts.
20
The Task Team will review in detail all
bidding documents and bid evaluation
reports in order to ensure that the lowest
evaluated responsive bidders are selected
by GOM.
Overall Risk Rating at
Preparation
Overall Risk Rating During
Implementation Comments
Medium-I Medium-I
The MTSP-II has been under implementation for over three years, and
despite a funding gap, its implementation so far has been broadly
successful. The proposed AF is expected to primarily fund activities that
could not be funded under the MTSP-II due to cost overruns and to scale
up activities that have been successfully implemented. All these activities
are part of the rural roads component (Component A).
21
Annex 3: Procurement Arrangements
Mali: Second Transport Sector Project - Additional Financing
A. General
1. Procurement for the proposed project would be carried out in accordance with the World
Bank‟s "Guidelines: Procurement of Goods, Works and Non-consulting Services Under IBRD
Loans and IDA Credits and Grants by World Bank Borrowers" dated January 2011; and
"Guidelines: Selection and Employment of Consultants under IBRD Loans and IDA Credits and
Grants by World Bank Borrowers" dated January 2011, and the provisions stipulated in the Legal
Agreement. The various items under different expenditure categories are described in general
below. For each contract to be financed by the Credit, the different procurement methods or
consultant selection methods, the need for pre-qualification, estimated costs, prior review
requirements, and time frame are agreed between the Borrower and the Bank in the Procurement
Plan. The Procurement Plan will be updated at least annually or as required to reflect the actual
project implementation.
2. Advertisement. The Borrower will prepare and submit to the Bank a General
Procurement Notice (GPN) which will be in addition to the GPN of the MTSP-II. The Borrower
will publish this additional GPN in United Nations Development Business (UNDB) online and in
local newspapers of wide national circulation. A Specific Procurement Notice (SPN) for all
goods (if any) and works to be procured under International Competitive Bidding (ICB) and
Requests for Expressions of Interest for all consulting services costing the equivalent of
US$200,000 and above will be published in UNDB and in the national press with wide
circulation, in addition to other media with wide circulation. All other specific procurement
notices and other requests for expressions of interest shall be published in the national press with
wide circulation. B. Assessment of the agency’s capacity to implement procurement
3. As in the case of the MTSP-II, for the proposed AF, the existing arrangements in which
the management of road works contract is delegated to AGETIER will remain in place.
AGEROUTE will be in charge of the road section Bandiagara-Douentza (including the Togo-
Tongo section), and AGETIER will handle the rural roads sections in the cotton production areas
of OHVN and CMDT. In addition, the NCU will be in charge of the overall procurement quality
control and the procurement operations for the socio-economic infrastructure associated to the
rural roads sections in the cotton production areas.
4. The proposed AF will build on the experience accumulated with the implementation of
the MTSP-II, as well as that of other transport sector projects, such as the Transport Corridors
Improvement Project (TCIP) and the WATTFP, to ensure that AGEROUTE and AGETIER play
their full intended role as the GOM‟s technical advisors and engineer in charge.
22
5. An assessment of the capacity of the implementing agencies to implement the
procurement activities linked to the proposed AF was carried out during March 2011. The
assessment reviewed the organizational structure for implementing the project and the interaction
between the project‟s staff responsible for procurement and the ministry‟s relevant central unit
for administration and finance. The key issues and risks concerning procurement for
implementation of the project have been identified and include the following points that were
pointed out during the assessment of the MTSP-II:
Inadequate communication between the technical structures in MET and the
delegated contract management agencies (AGEROUTE/AGETIER) has led to delays
in the update of technical specification and poor cost estimation.
Interaction between the implementing units and the MET‟s relevant central unit for
administration and finance, which may cause delays and possible political
interference; although it was not a major issue for the MTSP-II for the proposed AF
continued vigilance is required.
6. The proposed corrective measures which have been agreed are:
Strengthening the flow of communications to improve interaction, between the
technical structures, the procurement agencies, the NCU and the ministry‟s relevant
central unit for administration and finance, in their respective responsibilities;
turnover of staff should be minimized and any turnover which if necessary should be
properly managed to ensure continuity; and
All interactions related to the procurement responsibility must be consistent with the
institutional arrangements agreed on with the Borrower. In particular, all procurement
documents prepared by any execution agency will be reviewed by the Procurement
Officer based within the NCU, and transmitted for review to: (a) the National
Authorities in charge of such review; and (b) to the World Bank for contracts subject
to prior review.
7. The overall project risk for procurement under this additional financing is Moderate.
C. Procurement Plan
8. The Borrower‟s Procurement Plan will provide the basis for the procurement methods
that will be used under the proposed AF. The Procurement Plan for the proposed AF has been
reviewed and cleared by the Bank in April 2011, and will be available at the office of the UNC,
AGEROUTE and AGETIER. It will also be available in the project‟s database and in the World
Bank‟s external website. The Procurement Plan will be updated in agreement with the project
team annually or as required to reflect the actual project implementation needs and
improvements in institutional capacity. All subsequent updates will be disclosed once they are
approved by the World Bank.
23
D. Frequency of Procurement Supervision
9. In addition to the prior review supervision to be carried out from World Bank offices, the
capacity assessment of the Implementing Agency has recommended one supervision mission per
year to visit the field and to carry out post review of procurement actions.
E. Details of the procurement arrangements involving international competition
bidding
Table 1: Thresholds for Procurement Methods and Prior Review
Expenditure Contract Value Procurement Contract Subject to
Category (Threshold) Method Prior Review
1. Works ≥ US$5,000,000 ICB All
< US$5,000,000 NCB The first contract
< US$100,000 Shopping/Price Comparison All contracts with a cost estimate above
US$50,000
No threshold Direct Contracting All
2. Goods ≥ US$500,000 ICB All
< US$500,000 NCB The first contract
< US$50,000 Shopping All contracts with a cost estimate above
US$50,000
No threshold Single Source Selection All
3. Consultants
3.1 Firms No threshold QCBS; LCS; FBS; QBS - All contracts with a cost estimate equal or
above US$200,000; and
- The first contract below US$200, 000
< US$100,000 CQS The first contract and all short-lists under
CQS
3.2 Individuals No threshold Selection of Individual
Consultants (Comparison of
at least 3 CVs)
- All contract with a cost estimate equal or
above US$100,000;
- The first contract below US$100,000; and
- All short-lists for individual Consultants
Selection
No threshold Single Source Selection All
(Firms & Individuals)
All TORs regardless of the value of the contract and the selection method, are subject to prior review
24
Table 2: Summary of Proposed Procurement Arrangements
Project Components Procurement Method
(Amounts in US$ thousands, excluding counterpart funds)
International National Other Total
Competitive Competitive Methods
Bidding Bidding
Component A (Rural Access
Improvement) 17,053 4,631 1,316 23,000
Component B (Bamako Urban
Transport System Improvement) - - - -
Component C (Institutional
Strengthening and Project
Management)
- - - -
Total 17,053 4,631 1,316 23,000
25
Table 3: Procurement Plan
(Civil Works) 1 2 3 4 5 6 7 8 9
Ref.
No.
Contract Description Estimated
Cost (in
US$
thousands)
Proc.
Method
Prequal.
(yes/no)
Dom.
Prefe-
rence
(yes/no)
Review
by Bank
(Prior /
Post)
Expected
bid-
opening
Date
Comments
I. AGEROUTE
01 Rehabilitation works on
Bandiagara-Douentza rural
road including the Togo-
Tongo section
17, 053 ICB No No Prior
Review
Oct 31,
2011
Contract
signing
excepted
on Dec 16,
2011
Total AGEROUTE 17,053
II. Implementation Agency for Infrastructure Projects and Rural Equipment (AGETIER)
01 Periodic maintenance of rural
roads in the OHVN area (120
km) and realization of
economic and social
Infrastructure along the roads
2,021 NCB No NA Prior
Review
Sept 13,
2012
Contract
signing
expected
on Oct 30,
2012
02 Periodic maintenance works
of rural roads in CMDT area
(155 km) and realization of
economic and social
Infrastructure along the roads
2,610 NCB No NA Post
Review
Sept 23,
2012
Contract
signing
expected
on Nov 12,
2012
Total Works (AGETIER) 4,631
Overall Total Work 21,684
26
Table 4: Procurement Plan
(Consultancy Assignments with Selection Methods and Time Schedule) 1 2 3 4 5 6 7
Ref.
No.
Description of Assignment
Estimated
Cost
(US$
thousand)
Sélection
Method
Review
by Bank
(Prior/
Post)
Expected
Proposal
Submission
Date
Comments
I. AGEROUTE
01 Monitoring and Control of
construction works on Bandiagara
Douentza road and a section of the
Togo Tongo Motorway
853 QCBS Prior
Review
Sept 14,
2011
Contract
signing
expected
on Dec15,
2011
Total Consultants Services
(AGEROUTE) 853
II. AGETIER
01 Study, monitoring and control of
periodic maintenance works of rural
roads in OHVN area (120 km) and
realization of economic and social
infrastructure along the roads
202 QCBS
Prior
Review
Dec 2,2011
Contract
signing
expected
on March
8, 2012
Study, monitoring and control of
periodic maintenance works of rural
roads in the les CMDT area (155 km)
and realization of economic and social
infrastructure along the roads
261 QCBS Prior
Review Dec 11, 2012
Contract
signing
expected
on March
17, 2012
Total Consultants Services
(AGETIER) 463
Overall Total Consultants 1,316
27
Annex 4: Financial Management and Disbursement
Mali: Second Transport Sector Project - Additional Financing
Financing Management Arrangements
1. Financial Management (FM) implementation framework for the proposed AF. Overall
implementation of the proposed AF will be coordinated and supervised by the already existing
and fully operational NCU for the MTSP-II. The NCU coordinator will oversee the financial
management aspects of the project including the preparation of the financial statements,
providing quarterly Interim Financial Reports, monitoring financial transactions on the project‟s
accounts and making the necessary arrangements for the annual financial audit of the proposed
AF.
2. Budgeting arrangements. The budgeting process is clearly defined in the FM Manual
and the budget will be adopted before the beginning of the year and monitored through the
accounting software. The project consolidated budget will be submitted to the IDA‟s objection.
3. Accounting policies and procedures. The additional financing accounts will follow the
same accounting policies that of the current project in line with the Organization for
Harmonization of Business Law in Africa (OHADA) accounting standards. Project accounts will
be maintained on an accurate basis, supported with appropriate records and procedures to track
commitments and to safeguard assets. Annual financial statements will be prepared by the NCU
by using the existing accounting software being used for the MTSP-II.
4. Internal controls and internal audit. The NCU has already in place a manual of
accounting administrative and financial procedures for the MTSP-II. The manual ensures
adequate internal controls are in place for the preparation, approval and recording of transactions
as well as segregation of duties. The internal audit function is also in place and functioning well.
There is a good follow up of internal audit recommendations. 5. Reporting and monitoring. The Interim Financial Reports (IFRs) are expected to be
prepared on a quarterly basis. The IFR content will be the same as the current one elaborated
under the MTSP-II. It will include, among others, sources and uses of funds by project
expenditures classification and a comparison of budgeted and actual project expenditures
(commitment and disbursement) to date and for the quarter. The NCU will submit copies of the
IFRs to the Bank within 45 days following the end of the calendar quarter.
6. Funds flow. A designated account will be located in a commercial bank and managed by
the NCU. The Designated Account will be managed according to the disbursement procedures
described in the Administrative, Accounting and Financial Manual and Disbursement Letter.
7. External audit arrangements. The Financial Agreement will require the submission of
Audited Financial Statements for the NCU to IDA within six months after year-end. The external
auditor that has been recruited for the MTSP-II will also conduct from the year 2011 the
28
financial audit for the proposed AF activities. A single opinion on the Audited Project Financial
Statements in compliance with International Standards on Auditing (ISA) will be required.
8. FM arrangement prior to effectiveness. Adequate FM arrangements are already in place
for the proposed AF.
9. Other mitigation measures. In order to maintain and strengthen the control environment
that exists under the MTSP-II the following is required for the proposed AF: (a) include the
proposed AF activities in the scope of the financial audit for the year 2011; (b) recruit a technical
auditor; and (c) update the FM and administrative procedures manual to take into account the
proposed AF activities
10. Supervision and monitoring. Supervision activities will be performed following the
same periodicity as for MTSP-II.
Disbursement Arrangements
11. Report-based disbursements arrangements remain the same for the proposed AF. All
supporting documents will be provided for all transactions submitted to Bank prior review. The
others will be retained at the NCU and must be made available for periodic review by Bank‟s
missions and external auditors.
Table 1: Credit Proceeds Allocation Table
Category Amount of the Financing
Allocated (expressed in US$)
Percentage of Expenditures to be
Financed (excluding taxes)
(1) Goods, works, non consulting
services and consultants services for
the Project
23,000,000 100%
TOTAL AMOUNT 23,000,000 100%