Date of Submission to Coordination Unit:

A. GENERAL INFORMATION

1. Activity NameRegional Integration through Trade and Transport Corridors (TRANSTRAC) -Egypt activities

2. Requestor Information

Name: Rami AffifiTitle: Assistant to the Minister in charge of international, Regional and Arab Financing institutions and Organizations

Organization and Address: Ministry of Ministry of Investment and International Cooperation Egypt

Address: 8 Adly Street, Cairo, Egypt

Telephone: +(202) 2391 2815 - 2391 6214 Email: ramy_afifi88@yahoo.com

3. Recipient Entity Name: Ambassador Mahmoud Allam Title: Advisor to the Minister

Organization and Address: Ministry of Transport

El Nasr Road, Nasr City, Cairo, Egypt

Telephone: +(202) 2400 8166 Email: mallam@mot.gov.eg

4. ISA SC RepresentativeName: : Julien SERRE Title: FEMIP Trust Fund Manager

Organization and Address: : European Investment Bank

100 Boulevard Konrad Adenauer Luxembourg L 2950

Telephone: +52 621 339 175 Email: j.serre@eib.org

5. Type of Execution (check the applicable box)√ Type Endorsements Justification

Country-Execution Attach written endorsement from designated ISA

√ Joint Country/ISA-Execution

Attach written endorsement from designated ISA

Due to its regional dimension and approach, which includes three other countries in

addition to Egypt, the need for an ISA to execute in coordination with the national authorities is essential.

EIB will carry out procurement and financial management. It will also coordinate between the four targeted countries. EIB will leverage its capacity and experience in financing transport projects and supporting their preparation. EIB will also use if relevant its participation in the Arab Financing Facility for Infrastructure.The country will be responsible for local coordination and monitoring and evaluation as well as relevant capacity building activities

To ensure country ownership the ISA execution will be closely coordinated with the country activities.

ISA-Execution for Country Attach written endorsement from designated ISA

ISA-Execution for Parliaments

Attach written endorsements from designated Ministry and ISA

The EIB’s proposed TRANSTRAC initiative aims at enhancing economic development and employment creation in the Transition Countries by building up the transport sector capacity to identify, prioritise, prepare and implement projects that are consistent with both national and regional objectives, and that can meet the due diligence requirements of potential international funders and as a result help connect the region and integrate it into the global economy, support trade, boost development and address key transport challenges. Under this initiative, it is proposed to particularly support preparation of trade and transport corridors for Egypt, Jordan, Morocco and Tunisia (the proposed project to be supported by MENA TF). These countries are also the members of the Agadir Agreement. The Agreement unites the four countries of North Africa and the Middle East that are the most integrated with global production chains. However, none of the Agadir members traded more than 3 percent of its imports and exports with its partners to this Agreement. It is hoped that, once the trade, customs and logistics policies and reforms are implemented in the four countries, imports and exports between them will increase. TRANSTRAC would then contribute to increasing both intra-trade and trade beyond the borders of the Agadir partners.

EIB will also ensure that TRANSTRAC is coordinated with the LOGISMED TA proposal, promoting logistic networks and platforms in the Mediterranean countries. In this regard, the coordination efforts will be harmonized between LOGISMED TA and TRANSTRAC to ensure that future platforms can benefit from relevant activities in TRANSTRAC, with the active support of the ministry of transport.

Recent studies by the IMF, World Bank, IsDB and AfDB have shown that increasing trade competitiveness in the Middle East and North Africa region is a priority as: (i) trade facilitation and logistics bottlenecks are preventing potential growth opportunities from being realized, and impeding the integration of MENA countries into the outside world; (ii) increased trade will accelerate sustainable economic growth, opening up considerable opportunities of employment.

The proposals for each of the target transition countries (Egypt, Jordan, Morocco and Tunisia) promote:

1. trade facilitation2. improving the transport infrastructure3. improving transport and logistics services

The expected outcome would bring trade facilitation and infrastructure in the main trade corridors up to best practice international standards. The activities of the proposals would mainly encompass:

• institutional strengthening• public and private sector training• preparatory studies for border crossing facilities• preparatory studies for road, rail, port improvements

The removal of the supply chain constraints (customs, logistics hurdles, tariffs and non-tariff barriers, inadequate infrastructure, inadequate border crossings) through the future implementation of the recommended actions would open up additional opportunities for trade create substantial numbers of full-time jobs as well as temporary jobs in the construction industry and related activities. The opening and facilitation of priority corridors will also support development of less privileged regions of the four target countries.

On the basis of the recommendations of the different studies, and as confirmed with the governments, the proposed TA project (the proposal for MENA Transition Fund support) would include three components:

A. institutional and capacity building for regional trade framework improvement; B. preparatory studies for infrastructure improvements/investments of the priority corridors (including border

crossings); C. project preparation, management, coordination, monitoring and evaluation.

The main focus of the proposal is on component B which prepares future investments for which the governments would be able to quickly mobilize resources for their funding from IFIs (including the EIB). Although small in amount, due to the limited resources under the MENA TF, component A focuses on the essential capacity building and training for regional trade framework improvement.

The detailed activities to be supported under the proposed project are tailored to each country. They are in line with the recommendations of the different relevant studies financed or carried out by different international institutions (EU, EIB, WB, IMF, JICA, AfDB, IsDB, etc.). These studies are further referred to in the project description section of this proposal.

6. Geographic FocusIndividual country (name of country): Egypt

√ Regional or multiple countries (list countries): Under the Transport Sector Support for Transition Countries (TRANSTRAC) initiative, the requested support from MENA Transition Fund (DPTF) is for preparation of Priority Trade and Transport Corridors-focusing at a first stage on Egypt, Jordan, Morocco and Tunisia.

The present request concerns Egypt activities.

7. Amount Requested (USD) Amount Requested for direct Project Activities: (Egypt activities)(of which Amount Requested for direct ISA-Executed Project Activities):

USD4,000,000(USD3,300,000)

Amount Requested for ISA Indirect Costs:1 USD230,000Total Amount Requested: USD4,230,000

8. Expected Project Start, Closing and Final Disbursement DatesStart Date: September 1, 2013

(from grant approval to the start: preparation

Closing Date:

September 1, 2016 End Disbursement Date:

December 1, 2018

1 ISA indirect costs are for grant preparation, administration, management (implementation support/supervision) including staff time, travel, consultant costs, etc.

of TORs, RFPs and procurement)

9. Pillar(s) to which Activity RespondsPillar Primary

(One only)Secondary(All that apply)

Pillar Primary(One only)

Secondary(All that apply)

Investing in Sustainable Growth. This could include such topics as innovation and technology policy, enhancing the business environment (including for small and medium-sized enterprises as well as for local and foreign investment promotion), competition policy, private sector development strategies, access to finance, addressing urban congestion and energy intensity.

√ Enhancing Economic Governance. This could include areas such as transparency, anti-corruption and accountability policies, asset recovery, public financial management and oversight, public sector audit and evaluation, integrity, procurement reform, regulatory quality and administrative simplification, investor and consumer protection, access to economic data and information, management of environmental and social impacts, capacity building for local government and decentralization, support for the Open Government Partnership, creation of new and innovative government agencies related to new transitional reforms, reform of public service delivery in the social and infrastructure sectors, and sound banking systems.

√

Inclusive Development and Job Creation. This could include support of policies for integrating lagging regions, skills and labor market policies, increasing youth employability, enhancing female labor force participation, integrating people with disabilities, vocational training, pension reform, improving job conditions and regulations, financial inclusion, promoting equitable fiscal policies and social safety net reform.

√ Competitiveness and Integration. This could include such topics as logistics, behind-the-border regulatory convergence, trade strategy and negotiations, planning and facilitation of cross-border infrastructure, and promoting and facilitating infrastructure projects, particularly in the areas of urban infrastructure, transport, trade facilitation and private sector development.

√

B. STRATEGIC CONTEXT

10. Country and Sector Issues Regional Context

Political uncertainty in the Arab Countries in Transition (ACT) has continued in recent months, especially as the escalation of the conflict in Syria is creating negative regional spillovers. Several transition governments have faced intense macroeconomic challenges over the last two years. With the exception of Libya, the ACTs’ growth in 2012 has remained weak in light of continued policy uncertainty, regional tensions, the deteriorating global economy, and high food and fuel commodity prices. A moderate recovery is expected in 2013. The shrinking of fiscal and reserve buffers over the past year has left very little policy space and heightened vulnerabilities. Prompt policy action and timely and adequate international support are essential to maintain macroeconomic stability and address long-running structural deficiencies, to lay the foundation for inclusive growth and job creation for a young and growing population.

The external environment has continued to deteriorate: international food and fuel prices have continued to rise and economic activity in trading partners, both in Europe and key emerging markets, has weakened. As a

consequence, exports, which had remained relatively robust in 2011, have declined significantly, while import bills are continuing to grow with escalating food and fuel prices.

One of the most telling economic statistics about the region is that non-oil exports of the region, the whole region, are $365 billion, about the same as the exports of Belgium, a country of 11 million people (not 300 million as in MENA). This region suffers from a lack of integration into the world economy. Several studies and reports highlight the need for stronger emphasis on trade in the region, including the Deauville Partnership Trade and FDI report in 2012. This is of particular importance in the context of renewed calls for Deep and Comprehensive Free Trade Agreement between Morocco, Jordan, Tunisia, Egypt and the EU.

Economic integration can contribute delivering growth on a scale and timetable that would create enough jobs for the rapidly growing populations in the ACT is economic integration. Statistics show that GDP per capita and exports in the MENA region are significantly lower than the average for emerging market and developing economies. With regard to market access, trade restrictiveness is one important problem holding back the region. It remains high despite significant tariff reforms.

Most MENA oil importers (including Morocco, Tunisia, Jordan and Egypt) have streamlined and lowered tariffs over the past two decades, often via trade agreements with the European Union and the United States. Europe is a key export destination for the MENA region (exports to the European Union, as percent of total exports, were 26% for Mashreq and 57% for Maghreb countries in 2011). Trade, particularly in the North African countries, remains oriented mainly toward Europe, and the region has thus benefited relatively little from the high growth of many emerging markets. Deeper trade integration with international markets could give the MENA region a substantial economic boost. Empirical evidence suggests that increasing the region’s openness to equal that of emerging Asia could raise annual per capita GDP growth by almost a full percentage point. MENA oil importers also trade little with their immediate neighbors. According to IMF and other studies, given their close proximity (distance is one of the most important determinants of trade), these countries could be exporting about 50 percent more than they currently are. Trade within the MENA regional groups remains very low.

Country Context

Egypt has managed to preserve macroeconomic stability in the period following the revolution, but a broad-based recovery of the economy has yet to set in. Growth has been held back by political and policy uncertainty, security problems, and the global slowdown. Moreover, financial fragilities have risen owing to a decline in international reserves and an increase in the fiscal deficit and domestic t-bill rates. Egypt’s medium-term prospects remain favorable, provided the country quickly puts in place a comprehensive economic program that addresses the fiscal and balance of payments deficits and builds foundations for achieving higher and more socially balanced growth.

The IMF highlights in its outlook for the country, that the most immediate policy challenges are to contain the large fiscal and balance of payments deficits, support a rapid economic recovery and job creation, and protect the most vulnerable segments of the population. It also stresses that possible measures in the short run include increasing infrastructure, education, and health spending to boost growth and social outcomes, and to create jobs. The medium-term challenges for the country reside in sustaining higher and more socially balanced growth will require policies to leverage Egypt’s considerable economic potential and unleash its dynamic private sector. Creating a more transparent and competitive business environment, streamlining burdensome regulations, and improving access to financing, especially for small enterprises, should help boost economic activity and create jobs. Increasing investment in human capital and infrastructure should help provide more equal access to job and business opportunities for all sections of society.

Logistics and Trade Context and Key Issues

Until 2011, Egypt’s logistics sector represented annual expenditures of nearly U$70 billion or about 15% of GDP, with planned investments of $7.5 billion and needs for double that amount if the logistics constraints on economic growth are to be significantly reduced. As well as being a key driver for economic growth, efficient logistics are also important for private sector development and employment generation.

There is an established relationship between a country’s logistics performance and its export performance and overall economic growth. Yet critical inefficiencies in Egypt’s logistics value chains, result in a 25 percent excess in export times and higher logistics costs (33 percent of retail prices compared to 22 percent in EU countries such as Spain).

While road transportation accounts for most of Egypt’s domestic logistics costs, accounting for more than 70% of total tons per kilometer transported within the country (and more than 90% if pipelines are excluded), maritime transport accounts for almost 99 percent of Egypt’s international trade by volume and external logistics costs. While most OECD and MNA countries also rely heavily on road transport for the domestic logistics, they tend to use rail services in a higher percentage than does Egypt,

Efficient logistics are a necessary condition for a country’s overall development and economic growth. Egypt can make improvements in most of the areas In that context, a good way to measure a country’s logistics expertise is the Logistic Performance Index (LPI), an indicator compiled by the World Bank. According to this index, Egypt (ranked 57 out of 155 countries, in 2012 with an LPI of 2.98) advances the regional average (LPI of 2.60) and is clearly lagging behind the EU average (LPI of 3.49). Egypt’s biggest weaknesses according to the LPI are in the Infrastructure and Customs categories.

Different studies showed that the country’s weak road transportation infrastructure and services were the biggest challenge facing trade and logistics. The main problem facing Egypt’s road infrastructure is an unmaintained and unevenly distributed road network connecting the country, while road services suffer from a lack of trucking industry regulation, which produces numerous downstream problems (delays, quality of service, approvals, etc.). The dependence of the Egyptian logistics chain on road services makes it even more vital for these problems to be corrected to decrease export time and increase product quality, thereby opening up new markets for Egyptian exports.

Inefficiencies in the maritime sector are also affecting Egypt’s logistics performance. Maritime flows in Egypt accounted for 99 percent of the country’s international trade. There are critical problems and inefficiencies in Egyptian ports (delays, handling, procedures, lack of investments, etc.). These are a disincentive for potential investors, holding back global logistics operators, shipping companies, and other related services providers from fully developing their service. This ultimately translates into higher costs for importers and exporters, since higher port and terminal handling costs are transferred into final transport fees. Reforming both maritime infrastructure and services was identified in different studies as an opportunity for high improvement and high impact, both in terms of facilitating trade and investment and for creating jobs.

Transport Sector Context and Key Issues

Road Transport, Infrastructure and Freight services

Egypt has some 92,370 km of roads, 74,820 km of which are paved (81 percent of total). Roads linking Cairo with Alexandria, Suez and Port Said are generally in good condition, while roads outside these areas are less well maintained. The road network is unevenly distributed, with a high concentration of roads in and around Cairo and the Nile Delta area.

Without better road connections to rural areas, it will continue to be difficult for producers to get their goods to markets whether for national consumption or for export. Some of the impacts of these problems are high vehicle operating costs, low average speeds and long transit times. Longer transit times mean that more regional warehouses are needed, increasing infrastructure costs and working capital requirements. Another consequence of poor road infrastructure and road transport services is the high frequency of fatal accidents involving trucks, estimated at about three quarters of the 8,000 road deaths each year.

The government plans to upgrade the road network using public-private partnerships (PPP) for some projects. However, there has been no significant interest from private sector given the perception of a high level of risk, weak legal frameworks and uncertainties regarding financial profitability and high construction costs.

Weak road transport services are perhaps the largest logistical challenge in Egypt. Not only is trucking the main mode for moving goods domestically, but it is also an essential link in the Egyptian export chains. Truck loads account for 33,268 million tons-km of goods moved per year, about 90 percent of the country’s non-pipeline total. There are five public trucking companies which have a market share of 3.1%, while the rest of the market is controlled by thousands of small operators with very few having more than 20 trucks, with the overall average being less than two trucks per owner. Many trucks are old and in poor condition, with an average age of 13 years. There are few specialized vehicles with reefer devices or refrigerated trucks available to transport perishable goods and few container trucks. There is a lack of cargo and load trucking legislation and very limited availability of insurance coverage for cargo. A direct consequence of the unreliable and uninsured trucking services is a high working capital requirement for users of trucking services. Too many manufacturers are forced to invest in and operate their own truck fleet diverting resources and attention from their core activities and increasing logistics costs. Another issue is trans-continental shipments to Europe. Egypt is not a signatory of the TIR (Transport International Routier) convention, which simplifies international traffic procedures. There are few Egyptian truck drivers able to drive on European roads. This limits the potential of trans continental trucking and Egypt’s exports‐ to Europe. The presence of a large informal sector, combined with low appreciation for quality trucking services, makes it more difficult for large sophisticated operators and service providers to enter the industry. Formal companies have to compete with the low prices charged by informal trucking providers, low profit margins, and generally unfair competition. The organization in charge of the trucking sector is the General Authority for Roads, Bridges and Land Transport (GARBLT) and is responsible for:

Maintenance, contracting, and construction of the road and motorway network Regulation of interurban road freight Regulation of passenger transport

Maritime Transport

Maritime flows in Egypt accounted for 99 percent of the country’s international trade in 2006. Egypt is also among the largest 20 developing countries in terms of container traffic. This fact makes reforming and improving maritime infrastructure and services extremely important for Egyptian goods to reach international markets. Additionally, problems and inefficiencies in Egyptian ports are a disincentive for potential investors, holding back global logistics operators, shipping companies, and other related services providers from fully developing their service. This ultimately translates into higher costs for importers and exporters, since higher port and terminal handling costs are transferred into final transport fees. As the entry point for foreign trade, ports also have a significant impact on the country’s image as a business partner. Reforming both maritime infrastructure and services was identified as an opportunity for high improvement and high impact, both in terms of facilitating trade and investment and for creating jobs. The problems facing both parts of the maritime logistics industry and recommendations for improvement are outlined below.

Port Infrastructure

Egypt’s port system is complex and extensive, with nine main commercial ports, 14 petroleum ports, 11 tourist ports and numerous other specialized ports for industries like mining and fishing. Prior to the crisis, 112.2 million tons of cargo was transported including imported, exported, local, and transit cargo. About 5.1 million TEUs containers were handled through Egyptian ports, of which 3.3 million were transshipment containers and 1.8 million were domestic cargo.

On the Mediterranean Sea, the port system comprises Alexandria and its natural extension El Dekheila west of the Nile; and Damietta, Port Said, and the new port of East Port Said east of the Nile which is concessioned to a private port operator. On the Red Sea, the port system includes Adabiya, Ain Sokhna (operated by a private company under a concession), and Suez. Egyptian ports are managed by four port authorities (PA): Alexandria PA, Port Said PA, Damietta PA, and Red Sea PA. These are directly supervised by the Maritime Transport Authority. Egyptian port infrastructure appears in an intermediate position in international rankings.

The main ports by traffic are Alexandria, Damietta, and Port Said, jointly handling 85 percent of Egypt’s cargo

tonnage and 92 percent of its containerized trade. Alexandria is by far the most important port, handling about 60 percent of Egypt’s trade. There is also a relatively elevated concentration of container traffic in ports with a high transshipment activity, of which Damietta and Port Said handle the majority.

Egyptian ports have seen some recent improvements with heavy investment coming from both public authorities and private operators. The value of investments in the period 2006-08 stood at $3.46 billion, including: $1.35 billion in the Damietta port, $960 million in Ain Sokhna, $900 million in East Port Said, as well as $250 million in Alexandria and El Dekheila. For the coming years, investments in ports are expected to reach some $4.70 billion, especially in East Port Said ($2.63 billion), Ain Sokhna ($2.08 billion), and Damietta ($1.75 billion) and mostly carried out by private investors under concessions of port terminals.

Despite this considerable investment activity in new and existing ports, a few critical problems, especially in infrastructure and equipment, persist. This is especially true of older ports. Poor port infrastructure has a negative impact on port performance, which increases Egypt’s maritime transport costs. The main problems that Egyptian ports suffer from are: (i) limited multimodal connectivity regarding rail access and high speed road connection to ports; (ii) lack of logistical platforms nearby ports; (iii) limited operation area; (iv) IT infrastructure not fully complying with international standards on safety and security; (v) insufficient water depth and berth length unable to accommodate the larger container ships.

The last of these constraints is especially critical in the ports of Alexandria, Damietta, and Port Said. These three ports have limited canal entrance depth (i.e. 11 meters in Damietta), short width quays (i.e. only 12 meters in Alexandria), and small quay surface (i.e. 720 square meters in Damietta), which limits the access of larger vessels to these ports.

Maritime Services

The maritime transport sector in Egypt is in need of a higher degree of integration with international regulation. The sector is governed by a number of general and specific laws and regulations introduced during the 1990s. Law 1 of 1998, amending Law 12 of 1964, allows private-sector participation in maritime transport activities and ship maintenance; and Law 22 of 1998, amending Law 1 of 1996, permits the Egyptian private sector to establish and operate ports. Ministerial Decree 3 of 1993, 19 of 1995, and Decree 30 of 1996 permit private sector companies to handle cargo in major Egyptian ports. Ministerial Decree 31 of 1994 sets standard charge policies for both national and foreign ships. As a result of the new legislation, private and foreign ownership is allowed for existing operators and new entrants in the cases of: international shipping, cabotage, cargo handling, storage and warehousing, freight forwarding, and maintenance and repair of vessels. In those cases, there are no limits on the shares of private and foreign equity in total equity for existing operators and new entrants.

Other problems in the maritime services sector in Egypt include: (i) Low productivity of stevedoring operations; (ii) excessive dwell time: Average dwell time in Egypt’s three main commercial ports (Alexandria, El Dekheila, and Damietta) is 21 days. Best practice dwell times are considered 7-12 days for general cargo and four to seven days for containers. The main causes of this delay are long document preparation times for importers and brokers, customs clearance procedures, quality control inspections, and a high rate of physical customs inspection; (iii) limited use of IT in port processes; (iv) high container fees.

Rail Transport

Rail has become a key transport mode for freight in OECD countries and could be used to transport a higher share of heavy non-perishable goods. Weak rail services in Egypt fail to offer an alternative to road transportation, with weak infrastructure and a sector dominated by a public operator. Developing rail infrastructure and services has cost advantages, is more environmentally friendly than road transportation, and will take some of the stress away from the overburdened and underdeveloped trucking industry. Rail transport is currently essentially used in Egypt for goods like iron, coal, petroleum, and is not used for the transport of perishable goods because of the lack of refrigerated containers to store goods.

Rail Infrastructure

Egypt’s rail network is operated by Egyptian National Railways (ENR). It comprises 9,435 km of tracks that use the international standard gauge of 1,435 mm. The main line runs from Alexandria to Aswan, however, most of the rail system is focused on the Nile delta, with lines essentially spreading out from Cairo.

Freight transport by rail in Egypt is limited in volume. ENR carried about 5.8 million tons of freight in 2010, a volume that shows a recovery from the low 5 million tons in 2009 after traffic has largely remained unchanged at 12 million in the late ‘90s and early ‘00s. Railway transport is essentially used for a few select goods such as iron, clay, coal, phosphate, and petroleum products, with a first inroad in container transport since 2009 (Ain Sokhna – Alexandria block trains).

The rail sector in Egypt is characterized by ENR’s outdated network, poor safety standards, and poor service. ENR itself lacks freight transport management expertise and had no specific management for freight transport operations until 2009. As a result, freight transport times are long and difficult to predict, making it difficult to rely on rail to transport time-sensitive goods. Other inefficiencies in the sector include: (I) route cross-subsidizing practices; (ii) complex customs procedures for multimodal chains that involve rail; (iii) inappropriate equipment for perishable goods (i.e. no reefer wagons available).

Modernization and Strengthening Plan of ENR

A major reform program (“the ENR Transformation Plan”) was launched by Government in December 2006 with the aim of modernizing the rail sector and improving safety standards. ENR is ambitious in their goals and is trying to accomplish in five years what other major European railways have taken 10 15 years to achieve.‐ The plan’s ultimate goal is to move ENR from a low-performing railway scheme to a high-performing railway structure open to competition. An important element of the plan is also to make rail freight transport a serious alternative to road transport. Developing the rail freight sector would not only increase freight transport capacities, but would also reduce the number of trucks on Egyptian roads.

Overall, the transportation authority acknowledges that changing and upgrading the railway network is a very complex process. It is necessary to both generate investment in the sector and prove to people that rail transport is a more cost effective option.

River Transport

Until the late 1960s, river was an important means of transportation for freight consignments between the north and south of Egypt. However, the emergence of faster land transport alternatives such as trucking and rail led to a decreasing reliance on river transport. The use of river transport for commercial purposes is now limited to the consignment of a few non-time sensitive goods. This is the consequence of a vicious circle, where river transport companies do not invest in new equipment and ships due to a reducing customer base and former customer companies switch to alternative transportation due to poor river transport service. In that context, the government has begun to take steps to develop this sector by encouraging investment in new ports. River transport presents an alternative for domestic freight and if developed will help alleviate reliance on road transportation.

River Infrastructure and Services

Egypt’s inland waterway network covers 3,500 kilometers, including the Nile, Lake Nasser, the Alexandria-Cairo waterway, as well as numerous smaller canals in the Delta region. The River Transport Authority (RTA) acts as both a regulator and service provider. River transport accounts for approximately six percent of domestic traffic in terms of tons per kilometer transported. This percentage is similar to that of the EU-25, but not all countries in this group have a river network that can be navigated. In Germany, where this network does exist, river transport accounts for 12 percent of inland traffic.

Egypt has shown a particular interest in recent years in developing and promoting river transport because it attracts tourism and helps reduce traffic levels on Egyptian roads. Recent efforts have mainly focused on dredging

the Nile, but also include other initiatives such as the construction of new locks.

Air Transport

Air cargo services in Egypt are limited. While a few niche markets rely on air transport, there are few options to choose from. Developing this industry and encouraging more operators to enter the market would open up more markets for perishable goods, and cut down on transport times to places like Europe. Egypt completed recently a project to upgrade and increase capacity of international airport in Cairo, paving the way for cargo services to potentially be available.

Air Infrastructure and Services

Egypt counts 16 commercial airports with paved runways of more than 1,500 meters (the minimum length needed for turboprop aircrafts such as the ATR72). The main international airport is government-owned and located in Cairo. Recent initiatives to upgrade this airport included the modernization of terminal 1, the construction of a new, third terminal, that cost around $560 million, and the rehabilitation and expansion of the second terminal. Air freight cargo is still infrequently used in Egypt.

Container Terminals

Although large capacity port container terminals exist, such as the East Port Said’s Suez Canal Container Terminal (SCCT), inland containers needed to provide alternatives to all international freight being processed in the ports. There are no freight terminals to deal with national trade, although these could provide an efficient solution to the day-time bans on truck movements in metropolitan areas. Cairo metropolitan area is poorly served by its few existing freight terminals such as the SOSDI (6th of October Storage & Distribution Co. SAE) that functions as dry port with customs clearance and storage facilities. SOSDI and similar facilities have limited space with little or no scope for expansion and have limited road access and no effective rail or river access. These terminals cannot efficiently fulfill the functions of an integrated Logistics Centers.

11. Alignment with Transition Fund ObjectiveThe Deauville Partnership Report on Trade and Foreign Direct Investment highlights that: “tackling costs associated with inefficient trade facilitation and logistics and weak access to trade finance and remittances is central to further integration of Partnership countries, both regionally and globally”. The costs of “connectivity” are often fixed, and as a result they disproportionately affect small firms, farmers, and the poor, severely limiting their participation in trade and investment. Reducing the costs associated with moving goods along international supply chains, whether these costs are measured in terms of time, money, or reliability, is a core element of a trade and FDI agenda. One of the three Deauville Partnership priorities is to: modernize trade facilitation services by enhancing the performance of trade corridors, whether air, sea, or land; improving markets for logistics services; increasing the efficiency of border management, including customs; and facilitating the cross-border movement of service suppliers.

The proposed project aligns well with the objective of the Transition Fund in terms of Competitiveness and Integration as it covers planning and facilitation of cross-border infrastructure, and promoting and facilitating infrastructure projects, particularly in the areas of transport, trade facilitation and private sector development. The project aligns also with Investing in Sustainable Growth as it enhances the business environment (including for small and medium-sized enterprises as well as for local and foreign investment promotion), competition policy and private sector development (exporters, freight forwarders, manufacturing industry, etc.). Through the capacity building for regional trade framework improvement, the proposed project aligns also well with Enhancing Economic Governance. Through facilitating trade and transport services which supports increased economic activity and job creation at different levels (manufacturing, agriculture, rural development, industrial activities, services, etc.), the project aligns well with Inclusive Development and Job Creation.

In terms of inclusiveness, equity and sustainability the DP report underlines that to be sustainable, the political economy of trade and FDI requires that the benefits of integration, which are often concentrated in the large cities

and among the more privileged sectors of the population, be shared as widely as possible across regions and people. Trade and FDI are more than simple exchanges of material goods and services: they have to do with people and their norms and values. To be sustainable, the political economy of trade and FDI needs to recognize the possible tensions between those societal policies. One of the Deauville Partnership priorities is to develop regional policies to connect lagging and remote regions, promote internal trade, and help poor people in these areas connect to the places where opportunities are concentrated.

12. Alignment with Country’s National StrategyCountry Action Plan under the Deauville Partnership: “Egypt: The Way Ahead Facing Current Challenges and Building for the Future”. Egypt’s priority areas in its medium term policy program under the Deauville partnership are sustainable growth, job creation, trade facilitation, and investment promotion—to be pursued through regional and global integration. The program is focusing on fostering investment through business friendly policies and public investments. Public investments will be accelerated under Private Public Partnerships (PPPs) and Build, Operate and Transfer (BOT), particularly in projects with highest developmental and social returns. At the trade level, Egypt is seeking increased opportunities for its exports in G-8 markets as well as extending the Qualified Industrial Zones (QIZ) umbrella to new areas. Egypt identifies as crucial to associate trade facilitation with investments promotion and improved domestic markets institutions and trade infrastructure to avoid supply bottlenecks and inflationary pressure.

The proposed project aligns well with the country’s Action Plan. Increasing trade competitiveness in the Middle East and North Africa region is a priority. Trade facilitation and logistics bottlenecks are preventing potential growth opportunities from being realized, and impeding the integration of MENA countries into the global economy. Increased trade will accelerate sustainable economic growth, opening up considerable opportunities of employment.

The trading process involves many different actors and numerous procedures. Strengthening the private sector involved in the trading process, such as freight forwarders, customs brokers and trucking companies, will further enhance economic growth and create jobs. Benefits from increased trade get transferred on to consumers as reduced transportation and transaction costs decrease the prices of the final products. The World Bank recent regional trade facilitation and infrastructure studies for Mashreq and Maghreb countries identified obstacles to trade in three dimensions: (i) trade facilitation; (ii) transport infrastructure, and (iii) transport and logistics services. A corridor approach enables attention to be focused on the areas that account for most of the trade of a country, ensuring that the measures implemented make sense in terms of international trade. Recent studies show that investing in trade and infrastructure helps accelerate sustainable growth, create jobs, strengthen governance framework and increase economic and social inclusion. These studies showed also that in the short-run every US$1 billion invested in infrastructure has the potential of generating up to 110,000 infrastructure-related jobs in the oil-importing countries, 26,000 jobs in the GCC economies, and 49,000 jobs in the developing oil exporting countries.

C. PROJECT DESCRIPTION

13. Project ObjectiveProject development objectives. The objective of the proposed project is to promote reduction of trade and transport barriers along the priority trade corridors of the country and in related border crossings.

The objective will be achieved through preparation of needed improvements of the country’s main trade corridors, particularly transport infrastructure, border crossings and accesses to those crossings. In this perspective, activities will focus on key studies and action plans to enable future investments in the trade corridors.

The ultimate outcome once the investments are put in place will be more efficient and fluid logistics chains enabling increased realization of the country’s and region’s trade potential and reduced transaction costs. The project will thus contribute to the ultimate goal, which is to facilitate increased global trade of the country and the sub-region, and through this to make a significant contribution to increased employment and regional and global

integration while supporting also development of less privileged regions of the country.

14. Project ComponentsEven more than before, the economic transition in Egypt is tied to its trade and transport connectivity, especially to other countries in the region. Egypt, thanks to the Suez Canal and its geographical location is in an interesting location. However not only does it face daunting domestic logistics costs in large part related to congestion, but it is far from being ideally connected, and logistically integrated to other Mediterranean countries or even with the Gulf countries through Saudi Arabia.

Some progress has been made over recent years to improve customs or regulate the trucking industry. However these efforts have been uncoordinated and do not add to a full effort to improve the supply chain connectivity in the country. The World Bank has recently completed a preliminary trade and transport facilitation assessment (TTFA) which highlighted some of the gaps and inconsistencies.

A recent World Bank connectivity study (still in draft) and a phase 1 trade facilitation and transport assessment (TTFA Phase 1) identified the following priority areas for improvement: (i) provide incentives to improve the quality of transport services, through wider use of ICT, certificates of professional competence; (ii) modernize the fragmented trucking industry; (iii) use the existing infrastructure more efficiently, such as faster clearance of imports in ports; (iv) improve railway and river services to ease congestion on roads; (v) take full account of the economics of roll-on-roll-off maritime operations before deciding to subsidize services; (vi) facilitate trade credit. The study and the TTFA highlight that institutions and government would benefit from capacity-building to carry out the ensuing action plan as it will: (i) provide a forum for trade stakeholders to seek consensus on facilitation measures; (ii) support capacity-building in the Ministry of Transport; (iii) develop information technology interfaces among stakeholders.

The priority trade and transport corridors identified under a recent JICA financed Master Plan for Egypt Multimodal Transport, and confirmed by the Government, are: (i) the Intermodal Transport Corridor which is important for sustainable freight transport (involving road, railway, maritime and inland waterway sectors) and linking the new 6th of October Value Added Center with both the Alexandria-area seaports and Sokhna port; and (ii) the Mediterranean Corridor from Libyan border to the Palestinian border and including major parts of the Cairo Outer Ring Road. The government has also the Suez Canal Corridor, linking Suez to Port Said as a priority.

The proposed TA project (the proposal for MENA Transition Fund support) includes three components. These are: (a) institutional and capacity building for regional trade framework improvements; (b) preparatory studies for infrastructure improvements of the priority corridors; (c) project preparation, management, coordination, monitoring and evaluation. The activities to be supported under the proposed project are in line with the recommendations of the Euro-Med transport program, the JICA study for the transport master plan, the Deauville Partnership Report on Trade and Foreign Direct Investment and the World Bank connectivity study. They are national priorities for the government with a regional dimension.

Component A: Institutional and capacity building for regional trade framework improvement (US$0.6 million). This component focuses on the essential capacity building and training for regional trade framework improvement. It includes the following specific activities. This component is country-executed, except sub-component (iii) which will be executed by the ISA.

a) TA to transportation activity in Egypt: Establishment of an investment unit with the Ministry of Transport, including setting up staffing, operating procedures and documents to be prepared, defining a medium term action plan including identifying potential projects and following up implementation of at least one pilot project.

Budget (US$0.3 million).

1. B) Preparation of road safety assessment and action plan (US$0.3 million). Road safety is a major issue in the country in general, and a source of delays and dis-functioning of the trade corridors in particular. This sub-component will support preparation of a road safety assessment and a plan of practical and implementable actions that would eventually be later on supported by IFIs. It is to be coordinated with the EU supported regional road safety action plan and the work being done by the Egyptian Road Safety Council.

Component B: Preparatory studies for infrastructure improvements of the priority corridors (US$3 million). This is the key component and it will support preparation of feasibility studies, detailed design and tender documents, environmental and social impact assessments for the priority trade and transport corridors. This component is fully ISA-executed.

Upgrading of the Mediterranean corridor. Expressway development plans foresee to extend to the Libyan and Palestinian borders. The Cairo outer ring road is part of the corridor. The Master Plan highlights that the improvement of the connectivity to both borders will result in a 20 to 23 percent reduction in travel time. The government, with the support of JICA, is advancing preparation of this corridor. There are no particular needs at this stage under the MENA Transition Fund.

1. Preparation of the Suez-Port Said corridor (US$1. million). Straddling one of the world's great sea routes, the Suez Canal corridor could become a bridge connecting Africa with Asia if a grand plan by Egypt comes to fruition. Revenues from the waterway linking the Red Sea with the Mediterranean rose 3.6 percent to $5.2 billion in the financial year ended June 30, and are a key source of foreign currency for Egypt's economy, along with tourism, oil and gas exports and remittances from Egyptians living abroad. The government plans to transform the corridor along the 100-mile length of the canal from an area of mostly flat, empty desert into a major world economic zone. It is targeting annual revenue of $100 billion from the canal in in the long term, as new projects come on stream and old ones are expanded. This subcomponent is composed of 4 activities: Activity one: Demand & Traffic assessment of the connectivity of the SC zone with Greater Cairo – this TA will finance study of options for transport means and alignments along the corridor and pre-feasibility study of selected alignment , Activity two: a Value added logistics center at East port Said ( each for 350,000USD) TA will cover Feasibility study of the Logistics center. Activity three: 10th of Ramadan Dry port is a key platform integrating the zone ports with existing and potential industrial zones and therby enhancing Integrated freight transport, a TA to cover a full fledged feasibility study for the 10th of Ramadan Dry port is estimated at a budget of USD$0.4M)

2. And activity four: Logistics Center 6th October.3. Preparation of selected activities for the Intermodal Transport corridor (US$1.7million). This priority

corridor enhances the value added logistics services. It includes railways, roads, inland waterways, ports and other associated works. The proposed TAs will particularly support pre-feasibility study for the Logistics Center and cold store at Alexandria Sea Port . This center will support development of internal and international trade for Egypt. And the two Rail links of AlRubeiki – Tebein and al Rubeiki -10 th of Ramadan – Belbeis , both connecting industrial zones and logistics centers and existing maritime port connections, therefore enhancing intermodal transport and developing trade.

4. TA for preparation of upgrading and expansion of Border crossing facilities (US$0. million). The Salloum border crossing TA project has been cancelled due to security reasons and funds to be reallocated within component B.

Component C: Project Preparation, Management, Coordination, Monitoring and Evaluation (US$0.4 million). The proposed TA will support a project management unit (PMU) for management activities associated with project coordination, including capacity building.

The PMU will work closely with the ISA with a view to providing a comprehensive monitoring and evaluation (M&E) system.

The PMU will be located at the Ministry of Transport (under the Advisor to the Minister).This component will be fully country-executed in close coordination with the ISA.

15. Key Indicators Linked to Objectives

1. About 100 transport staff (from different sub-sectors: roads, maritime transport, railways, ports, logistics) trained in: PPP aspects and techniques, road safety analysis and management, maritime transport and logistics, technical control and supervision of works, management of fleet of construction equipment, and construction project management.

2. Studies completed: (i) preparatory and feasibility study for Suez corridor completed; (ii) pre-feasibility study 6th October logistics center completed; (iii) pre-feasibility study for border crossing completed; (iv) road safety action plan completed.

D. IMPLEMENTATION

16. Partnership Arrangements (if applicable)JICA is financing a comprehensive Transport Strategy which is in its final stage. The strategy identifies and addresses the priority trade and transport corridors of the country.

The project (through EIB and the PMCU) will be closely coordinated with other initiatives, particularly with JICA (on the transport strategy regarding the trade and transport corridors), as well as with the EU Neighborhood Program Management and Support in the Transport Sector, the Euro-Med Regional Transport Action Plan for the Mediterranean Region (including the road safety regional program), the LogisMed TA project (under DPTF grants) for Morocco, Tunisia and Egypt, and the Euro-Med-Priority Transport Infrastructure Projects in the Mediterranean countries.

Upgrading of the Mediterranean corridor. Expressway development plans foresee to extend to the Libyan and Palestinian borders. The Cairo outer ring road is part of the corridor. The JICA financed Master Plan highlights that the improvement of the connectivity to both borders will result in a 20 to 23 percent reduction in travel time. The government, with the support of JICA, is advancing preparation of this corridor. There are no particular needs at this stage under the MENA Transition Fund. The PMCU and EIB will closely follow up with JICA on the progress of preparation of this important corridor.

17. Coordination with Country-led Mechanism/Donor Implemented Activities The proposed project under the EIB Transport Sector Support for Transition Countries (TRANSTRAC) initiative will be closely coordinated, for optimized complementarity, with the Euro-Med Transport Program and its Regional Transport Action Plan for the Mediterranean for 2007–2013. The Ministry of Transport is also the coordinator for the Euro-Med program and will ensure this complementarity as well as with the LogisMed TA project recently approved (with EIB as ISA, and focusing on logistics services and setting up a regional logistics observatory). The EIB will also ensure that TRANSTRAC is coordinated with the LOGISMED TA project, promoting logistic networks and platforms in Mediterranean countries. In this regard, the coordination efforts will be harmonized between LOGISMED TA and TRANSTRAC to ensure that future platforms can benefit from relevant activities in TRANSTRAC, with the active support of the ministry of transport.

Bridging the gap between identification of trans-Mediterranean transport networks and project implementation is yet to be filled, therefore that existing opportunities for funding by certain partners (such as in the context of EU’s Trans-European Transport network (TEN-T), with the EIB’s FEMIP (Facility for Euro-Mediterranean Investment and Partnership) and through other IFIs can be leveraged.

The European Commission (EC) Communication on transport cooperation in the EU neighbouring regions invites the EC and the IFIs to support the neighbouring countries in developing transport strategies and, predominantly, help them to identify priority infrastructure projects and prepare project proposals. The Communication calls for establishment of mature and sound priority projects pipeline with a long-term outlook of extending the Trans-European Transport network (TEN-T) beyond the EU’s border and connect the countries in the region by building the Trans-Mediterranean Transport Network.

The Euro-Med Transport Working Group on Infrastructure, to which EIB actively participated, agreed on further steps to implement both the regulatory reform and all related actions of the Regional Transport Action Plan for the Mediterranean for 2007–2013. The dialogue built with the Mediterranean partner countries resulted in a list of corridors/programmes/ projects that now needs to be rationalized and prioritized before being brought forward. The work will be further taken up by the EU Neighbourhood Program Management and Support in the Transport Sector to ensure progression and coordination in this area. As noted by recent reports, Transition Countries continue to actively participate in the various EC regional transport programmes and working groups and remained involved after the Arab Spring in the establishment of the future Trans-Mediterranean Transport

Network.

The investments identified under the proposed TA project, and which will be prepared under the project, would later on be submitted for eventual financing by IFIs. The proposed project will help the government in its coordination with IFIs for effective development impact of eventual IFI investment projects in trade and transport, and in mobilizing quick increased financing for these investment projects as a number of priority trade and transport corridors would be ready for financing.

18. Institutional and Implementation ArrangementsThe project will be joint EIB-Government executed. Due to its regional dimension and approach, which includes three other countries in addition to Egypt, the need for the EIB to execute in coordination with the national authorities is essential. All procurement activities, financial management and disbursement will be executed by the EIB according to its procedures and guidelines. This is in line with EIB’s practices for regional approaches and TA projects with regional dimension. The country will be responsible for contracts management, local coordination and monitoring and evaluation. This arrangement will ensure country ownership while benefiting from EIB expertise in regional approaches (such as FEMIP). The EIB will ensure coordination of the regional dimension. The four targeted transition countries (Egypt, Jordan, Morocco and Tunisia) agree and are comfortable with this procedure. The four countries are benefiting from a number of FEMIP TA grants executed by the EIB and coordinated by the countries.

A project management and coordination unit (PMCU) will be set at the Ministry of Transport under the Advisor to the Minister of Transport, and will be responsible for: (i) overall coordination of the project activities with the different ministries, entities and departments involved in the project; (ii) monitoring and evaluation of indicators and overall progress; (iii) continuous follow up and periodic reporting on progress; (iv) liaison and coordination with the EIB. The PMCU will be headed by a project coordinator who will be selected competitively, and will include an assistant. The coordinator and the assistant will be financed by the project. The Ministry will provide a counterpart to the project coordinator as well as another assistant, and will host the PMCU with related expenses.

Each ministry, entity and department involved in the project will designate a focal point (FP) who will coordinate closely with the PMCU the activities of the concerned ministry, entity or department. The PMCU and the FP will assist in the preparation of TORs for the different studies, TA and training activities, in the selection process of the consultants and in managing and following up on the progress of the different activities.

A Steering Committee (SC) might need to be set up comprising representatives of the ministries, entities and departments involved in the project. The SC will provide oversight and guidance during project progress and will assist in ensuring smooth implementation of the project activities. The PMCU will call for the SC meetings and will prepare the necessary documentation and reports for the meetings.

The EIB is the Implementing Support Agency. It will assist in designing an appropriate monitoring and evaluation system as well as an appropriate reporting format. The EIB will carry out regular supervision and implementation support missions to ascertain the quality of the different consultants work, ensure overall adequate progress and closely monitor the achievement of the objectives. The EIB will also attend the Steering Committee meetings for specific studies under this proposal as may be needed. The EIB will ensure coordination of the regional dimension and approach of the project.

19. Monitoring and Evaluation of ResultsAt the project start, the ISA will work closely with the PMCU and MoT in establishing the necessary monitoring and evaluation “M&E” framework for the project. Baseline data will be provided by the Focal Points (FPs), and exact yearly targets will be revised six months after the start of project implementation.

The PMCU will be responsible with the support of the ISA for the overall monitoring and evaluation according to the framework. It will coordinate with the FPs to establish the baselines, control the quality of the work of the

different consultants, and will follow up on the yearly (and six-month) targets and monitor the achievement of the objectives.

E. PROJECT BUDGETING AND FINANCING

20. Project Financing (including ISA Direct Costs2)Cost by Component Transition

Fund(USD)

Country Co-Financing

(USD)

Other Co-Financing

(USD)

Total(USD)

Component A: Institutional and capacity building for regional trade framework(a) Sub-component A.1: TA to transportation

(i) training for techniques for planning and financing of logistics facilities (US$0.2 million)*; (ii) training of all transports agencies in different PPP aspects and techniques (US$0.1 million) *; (iii) analysis of options for implementation of road asset management in Road Authority (US$0.1 million).

(b) Sub-component A.2: Road safety assessment and action plan

* country-executed

400,000

200,000

400,000

200,000

Component B: Preparatory studies for infrastructure improvements of the priority corridors(a) Sub-component B.1: Preparation of the Suez

Canal corridor(b) Sub-component B.2: Preparation of selected

activities of Intermodal corridor(c) Sub-component B.3: Preparation of upgrading

and expansion of border crossing facilities

1,300,000

1,7 00,000

1,300,000

1,700,000

Component 3: Project Preparation, Management, Coordination, Monitoring and Evaluation** Country execution

400,000 400,000

Total Project Cost 4,000,000 200,000 4,200,000

The above costs are estimates at this stage. The Terms of Reference (TORs) of the different studies and consultants services will be tailored, with agreement of the Government, to the available funds under the DP TF. The country co-financing is simply an in-kind estimate of the country’s contribution to the project management and coordination.

21. Budget Breakdown of Indirect Costs Requested (USD) Description Amount (USD)

For grant preparation, administration and implementation support:

Preparation,

administration, management, implementation support,

regional coordination including travel expenses,

30,000

50,000

150,000

2 ISA direct costs are those costs related to the ISA’s direct provision of technical assistance within the project.

consultants services and staff time.Total Indirect Costs 230,000

F. Results Framework and Monitoring

Project Development Objective (PDO): The objective of the proposed project is to promote reduction of trade and transport barriers along the priority trade corridors of the country and in related border crossings.

PDO Level Results Indicators* Unit of MeasureBaselin

e

Cumulative Target Values**Frequency

Data Source/Methodology

Responsibility for Data

Collection

Description (indicator

definition etc.)YR 1 YR2 YR3

Indicator One:About 100 transport staff (from different sub-sectors: roads, maritime transport, railways, ports, logistics) trained in: PPP aspects and techniques, road safety analysis and management, maritime transport and logistics, technical control and supervision of works, management of fleet of construction equipment, and construction project management.

# of participants

0 10 40 100 Bi-annually

Reports PMCU and Focal Points

Quantitative – number of participants who have successfully completed the training

Indicator Two:Studies completed: (i) preparatory and feasibility study for Suez corridor completed; (ii) pre-feasibility study intermodal transport corridors completed;; (iv) road safety action plan completed.

Percentage progress and # of studies

0 50% 100% Bi-annually

ReportsStudies produced

PMCU, Focal Points with EIB input

Quality studies completed and approved

INTERMEDIATE RESULTS

Intermediate Result (Component One): Institutional and capacity building for regional trade frameworkSub-component A.1: TA to TransportationSub-component A.2: Road safety assessment and action plan

Intermediate Result indicator One:TA to transportation (i) training for techniques for planning and financing of logistics facilities; (ii) training of all transports agencies in different PPP aspects and techniques; (iii) analysis of options for implementation of road asset management in Road Authority and training in project and construction fleet management.

Percentage progress and # of studies

# of participants

0

0 10

50%

50

100%

100

Bi-annually

Bi-annually

ReportsStudies produced

Reports

PMCU, Focal Points with EIB input

PMCU and Focal Points

Quality studies completed and approved

Qualitative- number of participants who have successfully completed the training.

Intermediate Result indicator : Road safety assessment and action plan completed

Percentage progress and action plan completed

0 10 50% 100% 3 -months

Reports PMCU, Focal Points with EIB input

Quality study and action plan produced and approved

Intermediate Result (Component Two): Preparatory studies for infrastructure improvements of the priority corridorsSub-component B.1: Preparation of the Suez Canal corridorSub-component B.2: Preparation of selected activities of Intermodal corridor

Intermediate Result indicator One:Preparation of the Suez-Port Said corridor: study of options for transport means and alignments along the corridor and pre-feasibility study of selected alignment

Percentage progress and studies completed

0 10 50% 100% 3 -months

Reports PMCU, Focal Points with EIB input

Quality studies produced and approved

Intermediate Result indicator Two:Preparation of the Intermodal Transport corridor: pre-feasibility study for intermodal transport corridors

Percentage progress and study completed

0 10 50% 100% 3 -months

Reports PMCU, Focal Points with EIB input

Quality study produced and approved

Intermediate Result (Component Three): Project Preparation, Management, Coordination, Monitoring and Evaluation

Intermediate Result indicator: Quality reportingTime based

0 33% 60% 100% 3-months

Reports PMCU and EIB

Quality reporting, M&E