Document of The World Bank

FOR OFFICIAL USE ONLY

Report No: 44008-AFR

PROJECT APPRAISAL DOCUMENT

ON A PROPOSED GRANT TO THE REPUBLIC OF BENIN

IN THE AMOUNT OF SDR 6.1 MILLION (US$9 MILLION EQUIVALENT)

AND

ON A PROPOSED CREDIT TO THE REPUBLIC OF SENEGAL

IN THE AMOUNT OF SDR 4.70 MILLION (US$7 MILLION EQUIVALENT)

IN SUPPORT OF SECOND PHASE “B” OF

WEST AND CENTRAL AFRICA AIR TRANSPORT SAFETY & SECURITY ADAPTABLE PROGRAM LENDNG (APL) PROGRAM

February 3,2009

Africa Transport Sector Country Department AFRCI Africa Regional Office

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.

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CURRENCY EQUIVALENTS

(Exchange Rate Effective October 3 1, 2008)

CurrencyUnit = FCFA FCFA 51 1 US$l

US$1.49 = SDR 1

AAANS ADB AFTN AMHS ANAC APL ARMP

ASECNA

A T M ATN AVSEC BCEAO

BMPIU C A A CAA2 CAP CFAA CEMAC

CEO CMU COSCAP

CPMP CPS DA DAC DAF

FISCAL YEAR January 1 - December31

ABBREVIATIONS AND ACRONYMS

Administration o f Senegal National Air Activities African Development Bank Aeronautical Fixed Telecommunication Network Aeronautical Message Handling System Agence Nationale de 1 'Aviation Civile (National Civil Aviation Agency) Adaptable Program Lending Autorite' de Re'gulation des Marche's Publics (Public Procurement Regulatory Authority) Agence pour la Se'curite' de la Navigation Ae'rienne en Afrique et a Madagascar (Agency for Air Navigation Safety in Africa and Madagascar) Air Traffic Management Air Telecommunications Network Aviation Security Banque Centrale des Etats de 1 'Afrique de 1 'Ouest (Central Bank o f West African States) Budget Monitoring and Price Intelligence Unit Civi l Aviation Authority Caisse Autonome d 'Amortissement (Independent Amortization Fund) Cellule d 'Appui aux Projets et Programmes (Projects and Programs Support Unit) Country Financial Accountability Assessment Communaute' Economique et Mone'taire de 1 'Afrique Centrale (Economic and Monetary Community o f Central Africa) Chief Executive Officer Country Management Unit Cooperative Development o f Operational Safety and Continued Airworthiness Program Cellule des Passations des Marche's Publics (Public Procurement Unit) Country Partnership Strategy Designated Account Direction de 1 'Aviation Civile (Civil Aviation Directorate) Director o f Administration and Finance

ii

FOR OFFICIAL USE ONLY

DDI DGAC DL ECOWAS EIA EMCAP EO1 ESIA ESMF EU FA FAA FM FMR FPM GDP GPN HAALSS HF IAS IASA IATA IAU ICAO ICB IDA IDF IFFAS IFR I L S IPR IPSAS ISA ISR IT LAN LIB L S S MDA MDTF MPT MAT MOF NCB NDT NEPAD

Direction de la Dette et de I 'Investissement (Directorate for Debt and Investment) Direction Ge'ne'rale de 1 'Aviation Civile - France (French Civi l Aviation Agency) Disbursement Letter Economic Community o f Western African States Environmental Impact Assessment Economic Management Capacity Building Project Expression o f Interests Environmental and Social Impact Assessment Environmental and Social Management Framework European Union Fiduciary Agency Federal Aviation Administration (United States) Financial Management Financial Management Report Financial Procedures Manual Gross Domestic Product General Procurement Notice High Authority o f the Leopold Sedar Senghor Airport High Frequency International Accounting Standards International Aviation Safety Assessment (done by the FAA) International Air Transport Association Internal Audit Unit International Civil Aviation Organization International Competitive Bidding International Development Association International Development Fund International Financial Facility for Aviation Safety Interim Financial Report Instrument Landing System Interim Performance Review International Public Sector Accounting Standards International standards on Auditing Implementation Status Report Information Technology Local Area Network Limited International Bidding Leopold SCdar Senghor (Airport, Dakar Senegal) Ministries, Departments, and Agencies Multi-Donor Trust Fund Ministry o f Public Works and Transportation, Benin Ministry o f Infrastructure, Land Transport and Air Transport, Senegal Ministry o f Economy and Finance National Competitive Bidding Non Destructive Testing New Partnership for Africa's Development

This document has a restricted distribution and may be used by recipients only in the performance of their official duties. I t s contents may not be otherwise disclosed without World Bank authorization.

OP/BP PCU PEFA PEMFAR PET PFM PIE P I M PP PPR PSC R A A S REC RFP RIAS RSOA SAR SAW SATCOM SBD sc SDR QCBS LCS SOE SPN SSA TCB TIA TOR TSA TT TTL US$ UEMOA

UHF UNCITRAL UNDP USFAA VHF VOR W A WCA WTO WTTC

Operational Policy/Bank Procedures Program Coordination Unit (within each ANAC) Public Expenditure and Financial Accountability Public Expenditure Management and Financial Accountability Review Project Execution Team Public Financial Management Project Implementing Entity Project Implementation Manual Procurement Plan Post Procurement Review Project Steering Committee Regional Agencies for Aviation Safety Regional Economic Community Request for Proposal Regional Integration Assistance Strategy Regional Safety Oversight Agencies Search and Rescue ICAO's Standards And Recommended Practices Satellite Communication System Standard Bidding Documents Steering Committee Special Drawing Rights Quality-and Cost-Based Selection Least-Cost Selection Statement o f Expenditure Specific Procurement Notice Sub Saharan Africa Technical Cooperation Bureau Technical Implementation Agencies Terms o f Reference Transportation Security Administration (United States) Technical Teams Task Team Leader United States Dollar Union Economique et Mone'taire Ouest Afiicaine (West Africa Economic Monetary Union) Ultra High Frequency United Nations Commission on International Trade Law United Nations Development Program United States Federal Aviation Authority Very High Frequency VHF Omni directional Range navigation system Withdrawal Application West and Central Africa (Region) World Tourism Organization World Travel and Tourism Council

i v

YD Yamoussoukro Decision

Vice President: Obiageli K. Ezekwesili

Sector Manager: C. Sanjivi Rajasingham Regional Integration Director (Acting):

Task Team Leader:

Richard Scobey

Pierre Pozzo di Borgo

V

AFRICA Benin and Senegal Project . Phase 2-B of the West and Central Africa

Air Transport Safety & Security APL Program

CONTENTS

A . STRATEGIC CONTEXT AND RATIONALE .................................................................. 1 Countries and sector issues .................................................................................................. 1 1 .

2 . 3 .

Rationale for Bank involvement .......................................................................................... 2

Higher level objectives to which the program contributes .................................................. 4

B . PROGRAM DESCRIPTION ............................................................................................... 5 1 . 2 . 3 . 4 . 5 . 6 .

Lending instrument .............................................................................................................. 5 Program objectives and phases ............................................................................................ 5 Program development objective and key indicators ............................................................ 5 Program components ........................................................................................................... 6 Lessons learned and reflected in the program design .......................................................... 9

Alternatives considered and reasons for rejection ............................................................. 10

C . IMPLEMENTATION ......................................................................................................... 10

Partnership arrangements .................................................................................................. 10

Institutional and implementation arrangements ................................................................ 11

Monitoring and evaluation o f outcomes/results ................................................................ 12 4 . Sustainability ..................................................................................................................... 12

Critical risks and possible controversial aspects ............................................................... 13

Credit/Grant conditions and covenants .............................................................................. 15

1 . 2 . 3 .

5 . 6 .

D . APPRAISAL SUMMARY .................................................................................................. 17 Economic and financial analyses. ...................................................................................... 17

2 . Technical .......................................................................................................................... -17

3 . Fiduciary ............................................................................................................................ 19

4 . Social 19 5 . Environment ...................................................................................................................... 19

6 . Safeguard policies .............................................................................................................. 20

7 . Policy Exceptions and Readiness ..................................................................................... -20

1 .

.................................................................................................................................

. .

Annex 1: Country and Sector Background ............................................................................... 21

v i

Annex 2: Major Related Projects Financed by the Bank and/or other Agencies .................. 28

Annex 3: Results Framework and Monitoring ......................................................................... 30

Annex 4: Detailed Program Description ................................................................................... 34

Annex 5: Program Costs ............................................................................................................. 44

Annex 6: Implementation Arrangements and Monitoring Plan for Good Governance ....... 45

Annex 7: Financial Management and Disbursement Arrangements ..................................... 59

Annex 8: Procurement Arrangements ....................................................................................... 71

Annex 9: Economic and Financial Analysis .............................................................................. 82

Annex 10: Safeguard Policy Issues ............................................................................................ 89

Annex 11: Program Preparation and Supervision ................................................................... 90

Annex 12: Documents in the Program File ............................................................................... 92

Annex 13: Statement of Loans and Credits .............................................................................. 93

Annex 13: Statement of Loans and Credits .............................................................................. 94

Annex 14: Current Safety Oversight and Accident Situation of Air Transport in WCA .... 96

Annex 15: Country Selection Process ........................................................................................ 97

Annex 16: Country at a Glance ................................................................................................ 101

Annex 17: Maps - WCAATSSP - Phase 11-B ......................................................................... 105

vii

AFRICA AFTTR

33.57

62.65

Date: February 3,2009 Acting Regional Integration Director: Richard Scobey Sector ManagedDirector: C. Sanjivi Rajasingham

Team Leader: Pierre Pozzo di Borgo Sector: Regional integration (P); Infrastructure services for private sector development (S) ; Regulation and competition policy (S) ; Trade facilitation and market access (S) Environmental screening category: C Safeguard screening category: S2

Project ID: P108583 Lending Instrument: Adaptable Program Loan

Burkina Faso,

Guinea, Ma l i 96 1 S O 35.07 09/30/2006 12/3 1/2009 Cameroon,

92 5.1 1 67.76

APL 1

16.00 APL 2 -B Benin and 89 2.00 18.00 02/26/09 12/31/2012 Sene al

E TOTAL 55.28 151.50

APL 2-B - Project Financing Data Estimated Implementation Recipient/

Period (Bank FY) Borrower Indicative Financing Plan

100 0.00 55.28 96 6.11 158.1 1

Source

46.65 I 94 I 3.11 1 49.76 1 11/21/2007 I 06/30/2011 I Nigeria I

Local Foreign Total INTERNATIONAL DEVELOPMENT ASSOCIATION I

I Responsible Agency: Civil Aviation Agencies o f Senegal and Benin

v i i i

[ ]Yes [XI No Does the project depart from the CAS in content or other significant respects? Ref: PAD A.3 Does the project require any exceptions from Bank policies? Ref: PAD D. 7

I s approval for any policy exception sought from the Board? Does the project include any critical risks rated “substantial” or “high”? Ref: PAD C.5 Does the project meet the Regional criteria for readiness for implementation? Ref: PAD D. 7 Project development objectives Ref: PAD B.3, Technical Annex 3 The project development objectives are as follows: (i) Improve national Civi l Aviation Authorities’ (CAAs’) compliance with International Civi l Aviation Organization’s (ICAO’s) safety standards, (ii) Increase national CAAs’ compliance with ICAO’s security standards, and (iii) Enhance main international airports’ compliance with ICAO’s security standards. Project description Ref: PAD B.3, B.4 and Technical Annex 4 The progrim includes the following components:

[ ]Yes [XI N o

Have these been approved by Bank management? [ ]Yes [ 1 N o [ ]Yes [ ] No

[ X]Yes [ ] No

[XIYes [ ] N o

1. Aviation safety improvements (US7.6 million) For Benin (US$3.9 million):

0

Equipments and trainings for “Search and Rescue” activities; Replacement o f basic communications and inspections equipments (e.g., VHF radios, telephone network within the airport area, IT network at headquarters, etc.); Purchase o f technical library equipment (e.g., relevant ICAO’s manuals, directives, online library, training materials, etc.); Training o f civil aviation staff in the area o f civil aviation safety oversight; Dissemination and translation (in English) o f updated regulations; and Personnel training based on a prior needs’ assessment study.

For Senegal (US$3.7 million): 0

0

0

0

Medical equipment for ANACS’ medical center; Equipments and trainings for “Search and Rescue” activities; Setting-up o f an independent Office for aircraft incidents and accidents investigation; Purchase o f technical library equipment (e.g., relevant ICAO’s manuals, directives, online library, training materials, etc.); Training o f civil aviation staff in the area o f civil aviation safety oversight; Dissemination and translation (in English) o f updated regulations; and Personnel training based on a prior needs’ assessment study.

2. Aviation security improvements (US$6.2 million) For Benin (US$3.8 million):

Improvement o f airport security through the acquisition o f passengers and cargo x-ray machines as well as an explosive material tracer; Acquisition o f airport personnel identification equipment, security cameras, communications systems, and inspection equipments;

i x

For Senegal (US$2.4 million):

Updating o f technical regulation;

Training o f civil aviation staff in the area o f civil aviation security; and Training o f airport security personnel.

Installation o f an access control system at the airport; Training o f airport security personnel;

Acquisition o f training equipments, communication equipments, and patrol vehicles; and Review o f the institutional framework and fees allocation among civi l aviation entities.

3. Management and governance oversight of the national component of the program (US$ 4.2 million) For Benin (US$2.3 million) and for Senegal (US$1.9 million):

This activity i s meant to encompass the financing o f national program component’s operating costs covering CAA’s program dedicated personnel salaries for fiduciary management and technical management; office rentals; and expenses as well as inter alia annual fiduciary audits and day-to-day management. Safeguard policies triggered : None Re$ PAD 0.6, Technical Annex 10 Environmental Assessment (OP/BP/GP 4.0 1) : None Significant, non-standard conditions, if any, for: Re$ PAD C.6 Board presentation: None Credit effectiveness for both countries, unless indicated otherwise: Re$ PAD C.6.3 0

0

The ANAC/PCU has adopted an Administrative, Financial and Accounting Manual and Project Implementation Manual, both in form and substance, satisfactory to the Association; The PCU has recruited one procurement specialist (Benin and Senegal) and one accountant (Benin) and one administrative and financial director (Senegal), with qualifications, experience and terms o f reference acceptable to the Association, in line with the provisions o f Section I11 o f Schedule 2 to the Financing Agreement; An external auditor to the CAA/ANAC with qualifications, experience and terms o f reference satisfactory to the Association has been appointed by the Recipient, in accordance with the provisions o f Section I11 o f Schedule 2 to the Financing Agreement in order to audit the ANAC’s financial statements and the Project accounts and to audit, in Senegal, the Airport Security Fees collection and management; and The Subsidiary Agreement has been signed between the Recipient and the ANAC.

0

Covenants applicable to program implementation for both countries, unless indicated otherwise: Re$ PAD C.6.4

The Beneficiary will refrain from taking: o

o

PCU maintains staff satisfactory to the Association during the program duration; The government submits an amended Civil Aviation Code that complies with the ICAO

any decision and/or measure that affect adversely the ANAC/PCU’s ability to perform any o f - i t s obligations under the Project Agreement; any decision and/or measure that affect adversely the financial and administrative autonomy o f the ANAC;

X

Standard and Recommended Practices (SARPs) to i t s Parliament (Senegal): Cause the A N A C to provide to the Association independently audited financial reports on the activities of the ANAC, no later than six months after the end o f each fiscal year. To this end, the audit reports shall include statements o f revenues collected and the detail o f the expenditures incurred, with details o f the percentage o f expenditures used for safety and security activities; Provide to the Association no later than six months after the end o f each fiscal year an annual report o f the Airport Security Fees collection and transfer to ANACS carried out by an independent auditor with qualifications, experience and recruited pursuant to terms o f reference satisfactory to the Association (Senegal); Provide to the Association for analysis, Mid-term and end o f Project security and safety audits carried out by qualified consultants to review the implementation o f ICAO’s recommendations and/or action plans; Cause the A N A C to submit to the Association, no later than three months after each airport crisis exercise, a report describing the results o f each exercise carried out at Cotonou and Dakar airports, including qualified experts’ comments on the report f rom qualified consultants who observed the exercises. First crisis exercise i s to be carried out by no later than December 3 lSt, 2009 at both airports targeted under this phase o f the program. The crisis exercises will take place either each year (Benin) or every second year (Senegal); Cause the A N A C to submit to the Association throughout Project Implementation, reports, containing information pertaining to rate o f illegal objects, as defined by the ICAO, seized from passengers at the targeted airports, by private airline security personnel, by private airport security personnel and/or by the police. This submission to the Bank should be done on a quarterly basis, starting with the quarter ending on March 3 lSt, 2009; Cause the A N A C to submit to the Association, no later than 18 months after the Effective Date and six (6) months prior to the Closing Date, I C A O safety and security audit reports ; N o later than one month after the project Effective Date, or such later date as may be agreed upon by the Recipient and the Association in writing, the Recipient shall send to the Association the report o f the Recipient’s public accountant (commissaire aux comptes) on the 2006 and 2007 financial statements o f the A N A C (Benin) ; and N o later than eighteen (18) months after the Effective Date, or such later date as may be agreed upon by the Recipient and the Association in writing, the Recipient shall , in conjunction with the Association and the ANACS, carry out a mid term review o f the Project, covering the progress achieved in the implementation o f the Project. The Recipient shall prepare, or cause the ANACS to prepare, under terms o f reference satisfactory to the Association, and furnish to the Association three months prior to the beginning o f such mid term review o f the Project, or on such other date agreed upon with the Association in writing, a report integrating the results o f the monitoring and evaluation activities performed pursuant to this Agreement, on the progress achieved in the carrying out o f the Project during the period preceding the date o f such report, and setting out the measures recommended to ensure the efficient carrying out o f the Project and the achievement o f the objectives o f the Project during the period fol lowing such date.

x i

A. STRATEGIC CONTEXT AND RATIONALE

1. Countries and sector issues

1. Today, air transport accounts for up to 40 percent o f world trade by value. I t plays a significant role in the economic development o f countries. In Africa, where poor road, port and railway infrastructure often constrains the rapid and efficient movements o f high value goods earmarked for export, air transport holds both a potential for growth and a role for the economic development o f the continent. For now, however, reality has not met expectations and air services in Africa, and especially in West and Central Africa (WCA), continue to be inefficient, expensive and unreliable.

2. In order to address these shortcomings, African Ministers responsible for civil aviation adopted on November 14th, 1999 the Yamoussoukro Decision (YD) on the liberalization o f access to air transport markets in Africa. I t i s enforceable continent-wide since it was endorsed by the African Union Heads o f State under the African Union treaty framework in 2000. The Decision’s primary aim i s to liberalize intra-African air transport. In order to achieve this goal without compromising safety and security standards, the region Civil Aviations and Airport Authorities (CAAs) must be capable to collectively reach International Civi l Aviation Organization’s (ICAO) standards in these areas. ICAO’s

’ Standards and Recommended Practices (SAW) are contained in most o f the Annexes o f the Chicago Convention on International Civi l Aviation in the case o f aviation safety, and Annexes 9 and 17 in the case o f aviation security and facilitation.

3. The main safety’ issues facing WCA’s air transport sector today include the lack o f a compliant and enabling legal framework as well as a critical shortage in qualified inspection manpower. In WCA, fewer than six countries out o f 23 are considered to have the required level o f Civi l Aviation Administration capacities. The current situation results in the presence o f “junk companies” whose operations distort the air transport market prevent access to the world market for local African airlines and contribute largely to WCA high accident rates. According to ICAO’s statistics, the WCA region air transport accident rate was thirty times higher than o f the United States during the past years (see Annex 14).*

4. In terms o f ~ecur i ty ,~ currently fewer than five o f WCA’s numerous international airports are compliant with world standards. Indeed, most WCA international airports lack basic access control to runways and terminals as well as adequate security procedures. This situation endangers WCA’s air transport network security, resulting in sky-high insurance costs and high internal security costs for airlines. Moreover, in a post September 11 , 2001 environment, it r isks isolating WCA even further from main air trade flows.

ICAO Definition o f Air Transport Safety: A condition in which the risk o f harm or damage i s limited to an acceptable level. In 2005 alone, out o f 35 fatal accidents and the 1,269 related deaths worldwide, Sub-Saharan Africa (SSA) accounted for

13 o f these accidents and 374 of these deaths or 37% and 29% of the World’s total, respectively. These figures compare to SSA’s share o f the world’s total departure o f only 4.5%.

ICAO Definition Air Transport Security: A combination o f measures and human and material resources intended to safeguard civil aviation against acts o f unlawful interference.

3

1

5. Although the YD i s a continent wide initiative, i t s implementation in WCA has resulted in the signing o f an implementation memorandum o f understanding as well as, in November 2001, in the creation o f two Secretariat Units within the Economic Community o f West African States (ECOWAS)4 and the Cornrnunaute‘ Econornique et Mone‘taire de I ’Afrique Centrale (CEMAC).’ Additionally, in 2003, the region’s Ministers o f Transport agreed to support the following initiatives: (i) the revision and harmonization o f air transport legal and institutional frameworks at each country level, (ii) the development o f a new mechanism for effective regional technical and safety regulation, (iii) the creation of a regional economic regulatory framework to address competition, market access, consumer protection, and (iv) the upgrading o f security standards for each country as well as WCA’s main airports. In order to fund these initiatives, a scale up in donors and government support i s required.

2. Rationale for Bank involvement

6. The Bank was instrumental in the adoption o f the YD and later supported through successive regional IDF grants, the adoption o f common policies in safety and air transport regulations in WCA. However, the Bank along with regional institutions as well as other international lenders had to acknowledge that most WCA states did not and would not, in the foreseeable future, have the financial and human resources to comply with either United states or ICAO’s safety and security requirements unless external assistance was provided to them. Moreover, even when a state did prove i t s ability to comply with ICAO’s requirements, i t s capacity to maintain compliance and retain qualified personnel remained questionable as illustrated, unfortunately, by the Ghanaian CAA’s loss o f i t s US Federal Aviation Administration (FAA) International Aviation Safety Assessment (IASA) category I certification in April o f 2005. Accordingly, the Bank in coordination with regional institutions and other international lenders adopted a comprehensive approach to globally address these problems by supporting: (i) the establishment o f regional mechanisms to oversee safety and security standards in member countries, and (ii) the financing o f national safety and security support programs to enhance local CAA’s ability to comply with ICAO’s standards:

Establishment of regional mechanisms: Three Cooperative Development o f Operational Safety and Continued Airworthiness Program (COSCAP) projects were signed in 2003 and 2004 between the ICAO and the West African Economic and Monetary Union (UEMOA6) countries, the ICAO and the Banjul Accord countries (i.e., Non-UEMOA countries within ECOWAS), and the ICAO and the CEMAC countries. The ultimate objective o f such program i s to establish sub Regional Safety Oversight Agencies (RSOA) by January 1, 2010. The implementation o f these COSCAP projects was delayed by one year for the Banjul Accord and the UEMOA countries, and by two years for the CEMAC countries, mainly due to financing and lack o f coordination issues, despite the award o f

~~ ~

The ECOWAS countries are Senegal, Niger, Nigeria, Togo, Benin, Burkina Faso, Guinea, Guinea-Bissau,

The CEMAC countries are Cameroon, Central African Republic, Chad, Gabon, Equatorial Guinea and the

The UEMOA countries are Benin, Burkina Faso, Cote d’Ivoire, Guinea Bissau, Mali, Niger, Senegal and

Ghana, Mali, Cote d’Ivoire, Liberia, Sierra Leone, The Gambia and Cape Verde

Republic o f Congo,

Togo.

5

6

2

grants from the African Development Bank (ADB) and the French government. However, during the last COSCAP follow up meeting held in June, 2008, in Tunis, a detailed action plan was agreed in order to catch up with those delays. Through 2009, ECOWAS and CEMAC member countries wi l l therefore benefit, at no cost to them, from technical assistance in the area o f aviation safety. This assistance, however, wi l l be restricted mainly to specific training and technical advisory services as COSCAP projects’ resources are limited (i.e., each project’s budget i s less than US$4 million) and their scope excludes aviation and airport security. Nevertheless, the COSCAP projects represent an important f i rs t stepping stone towards the creation within UEMOA, ECOWAS and CEMAC o f regional aviation safety agencies whose future sector oversight roles w i l l be paramount to ensuring that each country CAAs achieve and maintain minimal compliance with ICAO’s standards.

Airport

0 Financing of national safety and security components: In spite o f the long term goal o f establishing regional aviation safety agencies in WCA, the enforcement o f aviation safety and security wi l l remain in the foreseeable future a national endeavor, if only for legal reason^.^ Accordingly, it i s critical that known shortcomings affecting national CAAs aviation safety and security oversight capacity as well as airport security personnel and infrastructure be addressed at a national level because regional aviation safety and security reflects each country’s achievements in these areas. This critical linkage between national and regional aviation safety and security i s confirmed by a review o f passenger traffic flows that shows that in 2006, more than 90 percent o f all passengers in Senegal and Benin are regionally’ and internationally bound (see Table 1 below).

International and Regional Passenger Traffic Total Passengers

Table 1: Estimated passenger traffic distribution in 2007 at selected airports in Benin and Senegal

Cotonou Dakar

100% 3 15,000 98% 1,727,000

7. This approach i s in l ine with the Regional Integration Assistance Strategy (MAS) for West Africa, adopted in August 2, 2001, and for Central Africa, adopted in February 6, 2003, as well as the Africa Action Plan adopted in September 6, 2005, in as much as it promotes, through regional integration, regional exchanges and economic growth.

8. In order to implement the approach described previously, the Bank has been asked to support the regional project’s national security and safety components as i ts local presence, ongoing transport projects and flexible lending instruments make it well suited to tackle the project’s financial (i.e., security investment) and institutional issues (ie., safety oversight arrangements, CAA’s reforms, regional pooling o f resources) simultaneously in most WCA countries. Meanwhile, support from other donors (e.g., the European Union (EU), ADB) and sector specific organizations (e.g., ICAO, US FAA) as well as from the

According to the 1944 Chicago convention, aviation regulation remains a sovereign activity. Until this

Regional traffic in this case covers all traffic within Africa.

7

approach i s altered, air safety and security wi l l continue to be managed at national levels.

3

member States themselves i s directed at ensuring the success o f the COSCAP projects as a necessary initial step towards the creation o f regional safety agencies.

9. Lastly, the Bank’s involvement in support o f the COSCAPs through national aviation component i s also warranted by: (i) the aviation sector’s economic impact and, (ii) the support it lends to further regional integration. In the present case, there i s a clear linkage between enhancements in air transport security and safety and lower travel costs (see Annex 9). Indeed, air carriers registered in countries with higher safety and security standards benefit from greater market access that stimulates competition. In WCA, where air service frequency i s generally poor, such impact could be especially important on tourism trade, a key sector for the region’s economic development. Additionally, improved safety and security w i l l translate into greater acceptance by the WCA countries o f each other’s carriers; thus strengthening regional integration. Besides, the countries involved will be adopting and using harmonized aviation codes and regulations, which will enhance the safety and security o f the air transportation network. Such a level o f harmonization could not be achieved unless there was a complementary effort carried out at national level to that o f the COSCAPs at the regional level, at least, regarding air safety oversight.

10. In light o f the above, there i s ample evidence that the West and Central Africa Air Transport Safety and Security Program (WCAATSSP) meets all the Bank’s regional eligibility criteria as: (i) it involves more than two countries; (ii) i t s economic and social benefits include enhanced carriers services and lower transport costs that promote national and regional tourism and trade growth; (iii) it supports ongoing regional initiatives to enhance aviation security and safety levels within WCA countries (Le., COSCAP projects) which, in turn, enhance the implementation o f the YD (Le., pan African air transport liberalization), and (iv) i t funds national activities which have clear externalities as overall WCA countries’ air safety and security depend on each country’s achievement in these areas and most WCA countries’ air traffic i s international, with a significant intra regional market share.

3. Higher level objectives to which the program contributes

1 1. In addition to allowing the identified countries in the region to significantly improve the results o f their ICAO Safety and Security Audits, the program higher objective i s to create a safe and secure environment for air transport in WCA that will allow African airlines to competitively access regional and worldwide market with the expected result to support sustainable economic growth region-wide. This higher objective i s consistent with the New Partnership for Africa’s Development (NEPAD) Infrastructure Short Term Action Plan, the YD as well as the Bank’s Africa Action Plan.

4

B. PROGRAM DESCRIPTION

1. Lending instrument

12. Since the readiness and needs o f the 23 WCA countries to receive support from the program vary significantly (see Annex 15), it was decided to select a horizontal Adaptable Program Loan (APL) instrument to allow for a phased long-term development program. Countries wi l l join the program under three successive phases using similar eligibility criteria. These criteria are: (i) the creation o f an administratively and financially autonomous national civi l aviation agency, (ii) the use o f aviation security and/or safety taxes for the purpose o f financing i ts civil aviation agency and, (iii) the attainment o f definite percentage o f compliance level with ICAO’s standards in the areas o f aviation security and safety, as well as improved airport security.

13. The program will be financed through the IDA program for regional projects under the IDA’S 15th replenishment (IDA 15), with country IDA allocations funding one third o f i t s cost and regional IDA funding financing two thirds o f i t s costs in recognition o f the positive externalities o f the program.

2. Program objectives and phases

14. Under Phase I o f the program, approved by the Board in April 2006, four countries; namely Burkina Faso, Cameroon, Guinea and Mali, received a total o f US$33.57 mill ion in grant and credit financing. Phase II-A o f the program was initiated with Nigeria following Board’s approval in October 2007, with a Credit amounting US$46.65 million. Subsequently, Phase II-B o f the program which includes Benin and Senegal for an estimated total investment cost o f US$16.00 million was developed. Phase I11 may encompass Mauritania, the Republic o f Congo, Equatorial Guinea, C6te d’ Ivoire, Ghana, Niger, Guinea Bissau, Liberia, Sierra Leone, Chad, Central African Republic, Sao Tom6 & Principe, and Togo for an estimated investment cost o f US$55.28 million.

15. As indicated in the program document submitted to the Board for Phase I, any country’s program component will be based on a set o f standardized project activities in aviation security and safety and airport security, to allow them to significantly improve their performances based on ICAO’s Safety and Security Audits. Benin and Senegal proposed program’s components do not depart from this requirement.

3. Program development objective and key indicators

16. The Program Development Objectives (PDOs) which apply to all program’s phases, and therefore to Benin and Senegal, are to: (i) Improve national Civil Aviation Authorities’ (CAAs) compliance with International Civi l Aviation Organization’s (ICAO) safety standards, (ii) Increase CAA’s compliance with ICAO’s security standards, in both cases, to achieve international average with all actions in their Corrective Action Plan contained in the respective audits completed, and (iii) Enhance main international airports’ compliance with ICAO’s security standards. In order to measure attainment o f these PDOs, the following key outcome indicators and target values are used for all participating countries:

5

PDO 1 - Improve CAA’s compliance with ICAO’s safety standards: 9 Compliance rate with ICAO aggregate safety standards based on ICAO’s audits,

with all actions in their Corrective Action Plan completed; 9 Percentage o f technical personnel in compliance with ICAO’s safety standards; and 9 Total CAA’s budget amount. PDO 2 - Improve CAA’s compliance with ICAO’s security standards: > Compliance rate with ICAO’s aggregate security standards based on ICAO’s audit,

with all recommendations addressed; 9 Percentage o f CAA’s ICAO’s certified security inspectors trained during the last

three years; 9 Level o f CAA’s budget dedicated to security; and 9 National Security Plan compliance with ICAO’s standards. PDO 3 - Enhance main international airports’ compliance with ICAO’s security standards: > Percentage o f airport security personnel with three or more years o f experience; > Number o f serious problems recorded during annual airport crisis exercises; and > Percentage o f embarking passengers stopped in possession o f illegal objects, as

defined by the ICAO, by airlines security personnel or the police.

17. to be used to evaluate the program’s impact:

Additionally, when applicable, the following longer term key outcome indicators are

e

e

e

0

4.

The country i s certified FAA IASA’ Category 1, in the case it anticipates to have direct flights to the United States o f America; Main international airports are certified for direct flights to the United States by the U S Transport Security Administration (TSA); No airlines registered in participating countries are listed on the European Union’s airline black list; and Overall WCA airline accident rate has decreased.

Program components

18. The program supports the ongoing development o f a regional Air Transport Program within the context o f the YD implementation. As such, it complements the work that i s currently undertaken by regional institutions (with donors’ support) in the area o f Air Transport Economic Regulation harmonization, while primarily focusing on airport and aviation safety and security. Secretariats are now officially established within the UEMOA, ECOWAS and CEMAC levels, in order to manage COSCAP programs: they have regional and national program management responsibilities in order to promote effective coordination and harmonization at the regional level. However, national program component continue to be effectively implemented independently by designated entities within each country.

International Aviation Safety Assessment. 9

6

19. Benin and Senegal program costs are estimated at US$18.00 million. Detailed national program component activities costs are presented in Table 2 below, for the two aviation agencies (CAAs) that will benefit from the project.

I

Table 2: Financing breakdown for the Benin and Senegal program components of the WCAATSSP (in US$ million) Sector o f activity I Financing sources I

Aviation Security

Imwovements

Aviation Safety Improvements

World Project Management ~ 1 Bank 1 1 and Oversight

Benin Senegal

Total

20. CAA each

- 3.9 3.8 2.3 10.0 9.0 1 .o 3.7 2.4 1.9 8.0 7.0 1 .o 7.6 6.2 4.2 18.0 16.0 2.0

National program component activities were elaborated with Benin and Senegal .s in order to address globally safety and security issues affecting the aviation sector in country. National C A A wi l l contribute through the provision o f office space and

manpower for duration o f the project.

4.1. Aviation safety improvements (US$7.6 million)

For Benin (US$3.9 million): 0

0

Equipment and training for “Search and Rescue” activities; Replacement o f basic communication and inspections equipment (e.g., very high frequency (VHF) radios, telephone network within the airport area, IT network at headquarters, etc.); Purchase o f technical library equipment (e.g., relevant ICAO’s manuals, directives, online library, training materials, etc.); Training o f civil aviation staff in the area o f civil aviation safety oversight; Dissemination and translation (in English) o f updated regulations; and Personnel training based on a prior needs assessment study.

0

0

0

For Senegal (US$3.7 million):

0

0

0

0

Medical equipment for ANACS’ medical center; Equipment and training for “Search and Rescue” activities; Setting-up o f an independent office for aircraft incidents and accidents investigation; Purchase o f technical library equipment (e.g., relevant ICAO’s manuals, directives, online library, training materials, etc.); Training o f civil aviation staf f in the area o f civil aviation safety oversight; Dissemination and translation (in English) o f updated regulations; and Personnel training based on a prior needs assessment study.

7

4.2. Aviation security improvements (USS6.2 million)

For Benin (US$3.8 million):

0

Improvement o f airport security through the acquisition o f passengers and cargo x-ray machines as well as an explosive material tracer; Acquisition o f airport personnel identification equipment, security cameras, communications systems, and inspection equipments; Training o f civil aviation staff in the area o f civil aviation security; Training o f airport security personnel.

For Senegal (US$2.4 million):

Updating o f technical regulation;

Installation o f an access control system at the airport; Training o f airport security personnel;

Acquisition o f training equipments, communication equipments, and patrol vehicles; and Review o f the institutional framework and fees allocation among civil aviation entities.

4.3 Management and governance oversight o f the national component of the program (US$4.2 million)

For Benin (US$2.3 million) and for Senegal (US$1.9 million):

21. This activity i s meant to encompass the financing o f national program component operating costs covering CAA program dedicated personnel salaries for fiduciary management and technical management, office rentals and expenses as well as inter alia annual fiduciary audits and day-to-day management.

4.4 Relationship between activities description in the Project Appraisal Document and the Financing Agreements

22. The negotiated Financing Agreements for both countries present the project’s components along the following lines: a) Strengthening o f Recipient’s sectoral policy and o f ANAC’s safety and security oversight capacity, b) Strenghtening o f airport security standards, and c) Project coordination, management and oversight. The content o f these components i s similar to those described above in sections 4.1 through 4.3. They are, however, just organized differently (i.e., aligned with beneficiaries versus functionalities). Table 3 shows the relationship in terms o f activities description between the PAD and the FAs.

8

Table 3: Project components relationship between the Finaning Agreements and the Project Appraisal Document

Financing Agreements Strengthening o f Recipient’s sectoral

policy and o f ANAC’s safety and security oversight capacity

0 Purchase o f technical library equipment (e.g., relevant ICAO’s manuals, directives, online library, training materials, etc.)

0 Training o f civil aviation staff in the area o f civil aviation safety oversight Dissemination and translation (in English) o f updated regulations Personnel training based on a prior needs assessment study Training o f civil aviation staff in the area o f civil aviation security

0 Medical equipment for ANACS’ center Setting-up o f an independent office for aircraft incidents and accidents investigation

equipment (e.g., relevant ICAO’s manuals, directives, online library, training materials, etc.)

0 Training o f civil aviation staff in the area o f civil aviation safety oversight

0 Dissemination and translation (in English) o f updated regulations

0 Personnel training based on a prior needs assessment studv

Purchase o f technical library

Strenghtening o f airport security and safety standards,

Equipment and training for “Search and

0 Replacement o f basic communication and Rescue” activities

inspections equipment (e.g., very high frequency (VHF) radios, telephone network within the airport area, I T network at headquarters, etc.);

0 Improvement o f airport security through the acquisition o f passengers and cargo x-ray machines as well as an explosive material tracer; Acquisition o f airport personnel identification equipment, security cameras, communications systems, and inspection equipments; Training o f airport security personnel. Equipment and training for “Search and

0 Installation o f an access control system at the

0 Training o f airport security personnel 0 Updating o f technical regulation; 0 Acquisition o f training equipments,

Rescue” activities

airport

communication equipments, and patrol vehicles

0 Review o f the institutional framework and fees allocation among civil aviation entities

Project coordination,

management and oversight

Same as PAD

5. Lessons learned and reflected in the program design

23. Since this program was the first regional aviation security and safety program in the Africa region, there were l imited precedents that could be used during the project design phase. However, the fol lowing findings from the implementation o f the first Phase and Phase 11-A o f the program have been used to better design the current program’s Phase 11-B:

Program design must reflect the intent, interest, and priorities of its beneficiaries and stakeholders so as to ensure their ownership and particularly their support to the accompanying reform processes. The implementation o f new audit standards by I C A O in the area o f security and safety as wel l as the agreement by al l I C A O members’ states in 2007 to publish the results o f their safety audit has effectively ended an era o f lack o f accountability within developing countries’ CAAs. Accordingly, national program components are now specifically designed around the results o f recently published I C A O

9

security and safety audits using new audit standards and do focus both in terms o f money and timeline more on manpower training and regulatory regime improvements over equipment acquisition when compared to the previous phase program activities. This change o f priority within each national program component has been demanded by beneficiary CAAs as it wi l l help them improve their now public ICAO compliance ratings in safety.

Program design must be coordinated with other donors in order to ensure consistency in the goals and expected outcomes of all planned and undergoing programs within the same sector. The program was developed in close cooperation with all the donors agencies involved in the aviation sector in WCA, especially USFAA, European Union (EU), ADB, DGAC, and ICAO. The Bank’s team has widely shared the initial results o f Phase I o f the program with all local and international partners in order to foster an Africa-wide initiative on aviation security and safety matters. This effort culminated in September 2007 with the announcement at the ICAO 2007 annual meetings o f an Africa wide initiative under the auspices o f the ICAO and the African Union (AU) to combat poor ICAO safety and security standards compliance by African’s CAAs.

Program design must emphasize capacity building for the targeted agencies. Experience in WCA countries confirms that sustained program impact depends on well- managed, well-financed executing agencies. Accordingly, during the preparation o f Phase 11-B o f the program, the Bank’s team has paid special attention to policy issues surrounding CAA’s financial and administrative autonomy with a view o f ensuring that sought after results in terms o f security and safety oversight capacity will be sustainable.

6. Alternatives considered and reasons for rejection

24. The only alternative to the regional approach recommended to develop adequate air transport safety and security would have been an individual country by country approach. Similar examples o f the former type o f approach (e.g., in Central America) have shown that a regional approach i s indeed the preferred option as small countries are unable to gather on their own the necessary resources to meet ICAO’s security and safety standards. Furthermore, by linking national activities to regional ones, more incentives are given to governments to carry out necessary sector reforms.

C. IMPLEMENTATION

1. Partnership arrangements

25. The program regional component (i.e., COSCAP projects) i s financed through grants obtained from other bi or multilateral donors, as well as from contributions to the member States. As shown in Table 4, the grant financing i s already secured and Benin and Senegal CAAs are eligible to benefit from the assistance o f the UEMOA’s COSCAPs. National program components also benefit from support o f bilateral technical assistance or aid, especially that o f the U S in the countries which are members o f the Safe Skies Initiative (Le., Senegal) and o f France when there i s an existing cooperation in the area o f security and/or safety (Le., Benin).

10

26. The Bank continues to work closely with others donors to finance at the national level complementary activities to that o f the COSCAPs as it wi l l not be able to answer requests for financing from all WCA countries at once. During a COSCAP follow-up meeting held in June 2008, in Tunis, it was reiterated that all the donors should coordinate their actions in order to avoid unnecessary duplications regarding capacity strengthening in air safety oversight, and to promote the concept and the creation o f Regional Safety Oversight Agencies.

European Commission Agreement European Commission Grant Others

Signed I Signed I Signed US$SOO,OOO I US$500,000 I US$500,000 ADB studv on regional air safetv agencies (US$400.000)

World Bank, 2008

2. Institutional and implementation arrangements

27. The implementation o f the program’s regional component (Le., COSCAP) i s overseen by the technical bureaus o f the two regional organizations: ECOWAS and CEMAC (see Figure 1) while the fiduciary implementation (financial management and procurement responsibilities) o f the national components wi l l be managed by the local CAAs in Benin and Senegal, through their Program Coordination Units (PCU). Technical management o f the program will also be handled by local CAAs as they possess unique technical knowledge in the field o f aviation. The CAAs will also draft initial technical documentation in support o f the project’s procurement activities, and oversee the implementation on the ground o f the project’s activities. As in other countries, financial and procurement assessments o f the PCU and CAAs have resulted in recommendations designed to address the shortcomings identified in terms o f financial and procurement capacities.

28: Disbursements for al l activities benefiting the agencies will be centralized in a designated account managed by the respective CAAs in order to increase project’s fiduciary compliance. Furthermore, the PCU personnel who i s made o f C A A staff will be strengthened by externally recruited specialists in the area o f procurement and financial management whose initial appointment will be for at least a year with terms o f reference explicitly geared towards building capacity o f the units and agencies’ staff. These recruitments w i l l be financed initially by the respective CAAs and reimbursed by IDA upon

11

effectiveness, subject to compliance with IDA’S procurement guidelines. The Financing Agreements wil l include a retroactive financing clause to this effect.

3. Monitoring and evaluation of outcomeshesults

29. The evaluation o f outcomes wil l be done primarily based on ICAO’s safety and security audits, using follow-up audits undertaken b y qualified consultants to measure progress made against baseline values. In some cases such as airport security, program impact will be measured using data collected by individual CAA (see Annex 3 for details), although the source o f the data will be either provided by independent operators such as airlines or qualified independent consultants. In order to preserve the confidentiality o f the data presented in ICAO’s audits, program indicators will only assess globally each country’s compliance with ICAO’s safety and security standards rather than identify individually the standards that have not been complied with. Nevertheless, discussions held with governments during project monitoring will cover specifically standards that have not been complied with, so as to secure the projected improvements in overall compliance rates. Every participating country will have their safety and security compliance with ICAO standards audited during the course o f the program (Le., at mid-term and at program closing).

World Bank, 2008 4. Sustainability

30. The key sustainability factors are: (i) institutional reforms have been implemented to ensure CAAs administrative and financial autonomy; (ii) necessary safety and security infrastructure and oversight capabilities have been established in the form o f potent national and regional safety and security agencies; (iii) appropriate financing mechanisms (e.g., user

12

fees) have been developed and adopted to sustain local and regional institutional oversight and security/safety infrastructure capacities. These factors are translated into project outcome indicators and legal covenants in order to secure project long term sustainability (see Annex 3 and section C.6.4).

5. Critical risks and possible controversial aspects

3 1. The primary risk concerns the implementation capacity o f the program’s activities by CAAs (see Table 5 below). This risk i s rated as moderate.” Since neither o f the two CAAs has ever managed a Bank’s project, the following arrangements have been made:

e

e

32.

The CAAs w i l l have fiduciary management responsibility o f the program. Accordingly, their procurement and financial management capacity will be strengthened through the transparent recruitment o f expert consultants paid by the program. The CAAs wi l l draft initial technical documentation in support o f the program’s procurement activities, and oversee the implementation on the ground o f the program’s activities.

Another program risk i s the limited ability o f CAAs to rigorously enforce security and safety standards on national operators such as airlines and airports operators. Fortunately, CAAs’ leverage in these areas wi l l be strengthened by the creation o f regional aviation safety agencies. Indeed, the African Development Bank (ADB) grant provided to ECOWAS, UEMOA and CEMAC to finance the three COSCAP projects in WCA requires the creation, before the end o f 2008, o f three regional safety agencies. A subsequent grant to finance COSCAP activities centered on aviation safety i s also programmed with a similar PDO (Le., creation o f regional security agencies). Finally, the current crackdown by European nations on unsafe airlines (e.g., suspension in September 2005 o f Cameroon Airlines’ access to the French airspace) i s forcing African governments to take aviation security and safety seriously as i s the public disclosure, starting in 2008, by the ICAO o f each member’s country C A A safety audit compliance rate results. Nevertheless, this risk i s rated as substantial in the case o f Senegal. In the case o f Benin the risk i s rated as moderate.

33. An additional risk concerns the ability o f CAAs to secure and maintain a technically proficient workforce so as to ensure the program’s sustainability. Although the autonomy o f the CAAs has been enshrined into law by decree No. 2004-598 o f October 29, 2004 for Benin and decree No. 2003-384 o f May 21, 2003 for Senegal, the number and share o f unqualified personnel in those CAAs remains high. Indeed, the recent ICAO safety audits carried out in Senegal and Benin show that the technical personnel o f each CAA i s only 39 percent compliant with ICAO technical standards in the case o f Senegal and 1 percent in the case o f Benin. Accordingly, unless CAAs’ workforce sk i l ls and numbers are radically readjusted in the coming years, serious concerns will remain about their ability to achieve world class aviation safety and security standards. The governments’ commitment to the Bank to improve each CAA’s budget and management autonomy during the project implementation through specific budgetary and training target represents a potent insurance

Risk for World Bank’s projects i s rated, from the highest to the lowest, as follows: High (H), Substantial 10

(S), Moderate (M), and low (L).

13

against this risk. Nevertheless, experience from Phase I of the project and the lack o f qualified aviation personnel within WCA suggests that this risk wi l l continue to be substantial.

Risks

Limited project

CAA

Limited ability o f CAA to

implementation capacity o f

34. Apart from the implementation arrangements, and in order to address governance risks, the program design incorporates a variety o f mitigation measures to ensure efficient and transparent decision making and use o f resources. Among them are: (i) the use from the program’s Phase I o f a technical database providing cost benchmarks for the standardized activities that will be implemented in Benin and Senegal so as to ensure bids’ cost fairness; (ii) the designation o f the CAAs as the sole responsible entities for fiduciary and procurement matters so as to hold a single entity accountable for any project governance issues as part o f the procurement and execution o f contracts; (iii) the strengthening o f the PCUs procurement and financial capacity through the transparent recruiting o f expert consultants in these matters, as needed; (iv) the implementation o f yearly independent financial audits o f the CAAs’ and the Program’s accounts; and (v) the elaboration o f a governance plan in each country, based on the previously quoted measures, complemented by a strengthening o f the internal control, the utilization o f the existing national measures against corruption, and the large diffusion o f the project’s objectives and results to all the stakeholders. Accordingly, the program’s governance risk was rated as moderate.

Risk rating with mitigation

Benin Senegal Benin Senegal

Mitigation measures

Recruitment o f Financial Management and Management and

(Consultants) to reinforce the CAA personnel.

Recruitment o f Financial

Procurement Specialists Procurement Specialists M M (Consultants) to reinforce the CAA personnel.

operators

and maintain a technically proficient workforce

Of CAA to Secure

Governance

aggressively enforce security and safety standards on national

Creation o f regional aviation security and safety agencies, public disclosure o f ICAO’s safety audit results

S S Strengthening the CAA’s capacity through large training programs and budgetary targets

Recruitment o f external fiduciary consultants within the CAA. the CAA. M M Adoption o f a governance plan for the component.

Recruitment o f external fiduciary consultants within

Adoption o f a governance plan for the component.

35. Based on the ratings given to the four above listed risks, overall risk for the program i s rated as substantial. However, a more in depth analysis o f the project’s r isks with mitigation measures i s presented in Annex 6.

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6. Credit/Grant conditions and covenants

6.1. The conditions for negotiations of the IDA Credit and Grant

36. None.

6.2. The conditions for Board approval

37. None.

6.3. The conditions for effectiveness of the IDA credit and Grant (above standard effectiveness conditions as specified in the General Conditions)

38. There are for both countries, unless indicated otherwise:

0 The ANAC/PCU has adopted an Administrative, Financial and Accounting Manual and Project Implementation Manual, both in form and substance, satisfactory to the Association; The PCU has recruited one procurement specialist (Benin and Senegal) and one accountant (Benin) and one administrative and financial director (Senegal), with qualifications, experience and terms o f reference acceptable to the Association, in line with the provisions o f Section I11 o f Schedule 2 to the Financing Agreement; An external auditor to the CAA/ANAC with qualifications, experience and terms o f reference satisfactory to the Association has been appointed by the Recipient, in accordance with the provisions o f Section I11 o f Schedule 2 to the Financing Agreement in order to audit the ANAC’s financial statements and the Project accounts and to audit, in Senegal, the Airport Security Fees collection and management; and The Subsidiary Agreement has been signed between the Recipient and the ANAC.

0

0

6.4. Legal covenants

39. There are for both countries, unless indicated otherwise:

0 The Beneficiary will refrain f rom taking: 0

0

P C U maintains staff satisfactory to the Association during the program duration; The government submits an amended C iv i l Aviat ion Code that complies with the SARP, to i t s Parliament (Senegal); Cause the A N A C to provide to the Association independently audited financial reports o n the activities o f the ANAC, no later than six months after the end o f each fiscal year. To this end, the audit reports shall include statements o f revenues collected and the detail o f the expenditures incurred, with details o f the percentage o f expenditures used for safety and security activities;

any decision and/or measure that affect adversely the ANAC/PCU’s ability to perform any o f i t s obligations under the Project Agreement; any decision and/or measure that affect adversely the financial and administrative autonomy o f the Agence Nationale de 1 ’Aviation Civile;

15

Provide to the Association no later than six months after the end o f each fiscal year an annual report o f the Airport Security Fees collection and transfer to ANACS carried out by an independent auditor with qualifications, experience and recruited pursuant to terms o f reference satisfactory to the Association (Senegal); Provide to the Association for analysis, Mid-term and end o f Project security and safety audits carried out by qualified consultants to review the implementation o f ICAO's recommendations and/or action plans ; Cause the A N A C to submit to the Association, no later than three months after each airport crisis exercise, a report describing the results o f each exercise carried out at Cotonou and Dakar airports, including qualified experts' comments on the report from qualified consultants who observed the exercises. First crisis exercise i s to be carried out by no later than December 3 lS', 2009 at both airports targeted under this phase o f the program. The crisis exercises will take place either each year (Benin) or every second year (Senegal). Cause the A N A C to submit to the Association throughout Project Implementation, reports, containing information pertaining to rate o f illegal objects, as defined by the ICAO, seized from passengers at the targeted airports, by private airline security personnel, by private airport security personnel and/or by the police. This submission to the Bank should be done on a quarterly basis, starting with the quarter ending on March 3 Is', 2009; Cause the A N A C to submit to the Association, no later than 18 months after the Effective Date and six (6) months prior to the Closing Date, I C A O safety and security audit reports ; N o later than one month after the project Effective Date, or such later date as may be agreed upon by the Recipient and the Association in writing, the Recipient shall send to the Association the report o f the Recipient's public accountant (commissaire aux comptes) o n the 2006 and 2007 financial statements o f the A N A C (Benin) ; and N o later than eighteen (1 8) months after the Effective Date, or such later date as may be agreed upon by the Recipient and the Association in writing, the Recipient shall , in conjunction with the Association and the ANACS, carry out a mid term review o f the Project, covering the progress achieved in the implementation o f the Project. The Recipient shall prepare, or cause the ANACS to prepare, under terms o f reference satisfactory to the Association, and furnish to the Association three months prior to the beginning o f such mid term review o f the Project, or on such other date agreed upon with the Association in writing, a report integrating the results o f the monitoring and evaluation activities performed pursuant to this Agreement, o n the progress achieved in the carrying out o f the Project during the period preceding the date o f such report, and setting out the measures recommended to ensure the efficient carrying out o f the Project and the achievement o f the objectives o f the Project during the period fol lowing such date.

.

16

D. APPRAISAL SUMMARY

1. Economic and financial analyses

40. The need for expanding and improving air services and markets in Africa, to which this program contributes, has been acknowledged by the NEPAD. It i s recognized that improvements and expansion o f aviation infrastructure can make a significant contribution to facilitating inward investment in tourism and developing non-traditional exports with relatively high value added content in Africa. These cannot take place, however, without adequate security and safety o f aviation operations. Accordingly, this program has the potential to indirectly impact the long term macro-economic growth prospects o f African economies by: (i) ensuring the sustainability o f other investments in the sector (e.g. airport facilities expansion, airlines services deregulation), (ii) promoting tourism activities, (iii) enhancing overall investment climate (i.e. inward investment levels), and (iv) expanding exports trade.

41. While Annex 9 details these potential impacts, i t is necessary to underscore that among al l o f the world’s regions; Afr ica is the most dependent on aviation services when it comes to tourism activities with, according to the World Travel Tourism Council (WTTC), almost three mi l l ion direct and indirect tourism jobs supported by air services in 2004. Likewise inward investment levels as well as international market access for W C A countries’ high value perishable agricultural goods such as cherry tomatoes and flowers are highly affected by the level o f security and safety o f airlines operations to/from and within WCA. As such, the program can be viewed as an important building stone in the overall economic development strategy o f the W C A countries.

2. Technical

42. In order to provide a comprehensive view o f the allocation o f funds, the abtivities to be financed under the program have been detailed and divided in eight categories (see Table 6). Each o f the category’s technical difficulty was assessed. While none o f them i s difficult to implement technically, this phase o f the program will benefit experience gleaned in Phases I and I1 regarding: (i) the supply o f goods, some o f which require careful procurement, such as x-rays, and (ii) training, where ease o f implementation o f o n site and off-site training has already been tested in several countries.

17

Table 6: Program costs by activity category and by aviation agency (in US$ millions)

World Bank, 2008

a) Personnel training: The aim i s to provide knowledge, experience and build capacity within the CAAs in the field o f air transport safety and security. Special attention will be also directed towards ensuring that airport and agency personnel are adequately trained to benefit fully from the equipment procured by the program.

b) CAA’s equipment: This category includes the procurement o f IT systems, security systems and the development o f training facilities in order to facilitate inner agency communications, and increase the agency security with a view to improve overall productivity.

c) Aviation equipment: This equipment aims at improving communication capacity o f each agency’s personnel as well as airport communication.

d) Airport security equipment: Screening and other security equipments are procured to strengthen the security o f Benin and Senegal International airports.

e) Crisis center equipment: Crisis management centers wi l l be installed or upgraded in Cotonou and Dakar international airports in accordance with ICAO’ s requirements.

f ) Airport infrastructure equipment: Airport infrastructure investments are essential for Benin and Senegal international airports to meet the most stringent international security and safety standards. This category includes closed circuit television monitoring systems.

g) Consultina services: These are studies, technical assistance, audits aimed at strengthening the CAAs capacities in their main mission o f supervising civil aviation safety and security and in the fiduciary field,

18

in order,to optimize a good management o f the project’s funds as wel l as the overall funds collected for the civil aviation industry.

h) Program management and miscellaneous: Program management costs include the costs incurred for the salaries o f pertinent staff in charge o f the fiduciary and technical management o f each program national component, the provision o f office spaces and/or rental costs, and similar obligations. Miscellaneous covers the cost o f various consulting services and audits.

3. Fiduciary

43. The overall assessment o f r isks in terms o f financial management for this program has been rated as moderate. This rating has been assigned in spite o f the fact that both Benin and Senegal’s CAAs wil l have adequate financial management capacity as part o f the credits effectiveness conditions. The Benin and Senegal CAAs will be responsible for reporting financial data (including the preparation o f Interim Financial Reports - IFRs) to both the government and the Bank.

44. The assessment revealed that there i s inadequate procurement capacity at the Benin and Senegal CAAs which have never managed a Bank financed project in the past. A Procurement Specialist will be hired to assist the regular staff at the Benin and Senegal CAAs in handling the programs’ fiduciary responsibilities. The latter will also be assisted in i t s tasks by personnel o f the respective CAAs as described in Annex 6 o f this document. Part o f the PCUs’ Procurement Specialists (Consultants) terms o f reference will include training and development o f the PCUs designated Procurement Officer’s skills in Bank procurement procedures. Identified weaknesses and risks resulting from the assessment wil l be addressed with the l i s t o f corrective measures that will be put in place prior and during program implementation as detailed in Annex 8 o f this document.

4. Social

45. N/A.

5. Environment

46. N o sensitive environmental issues should be raised by the program’s implementation as there will be no construction activities or land acquisition: The proposed investments are essentially for the acquisition o f basic communication and inspection equipments and the development o f safety and security programs. These investments do not have environmental or social safeguard implications; hence, there will be no negative impact f rom the program. The regulatory framework governing the environmental management o f operations in Senegal is wel l known since the Bank has multiple transport projects currently underway in this country. In the case o f operations at Cotonou airport, existing regulations are not known and will need to be investigated further in order to know if there i s an impact during the program implementation. However, due to the nature o f the work to be carried out at the airport, no environmental or social issues are anticipated as neither airport is experiencing issues related to illegal settlement on its premises (during the f i rst phase o f the program,

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mitigating measures were implemented for two countries). N o environmental or safeguard policies are triggered by investments under the current proposed operation.

6. Safeguard policies

47. The program i s categorized C for Benin and Senegal. N o safeguards policies apply.

7. Policy Exceptions and Readiness

48. The program does not require any exceptions from Bank’s policies.

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Annex 1: Country and Sector Background

West and Central Africa Air Transport Safety & Security Program Phase 2-B

1. The 23 countries o f Western and Central Africa represent a total land area o f over 9 million square kilometers, i.e. about the size o f Canada, with a combined population o f 28 1 million, i.e. about 4.5 percent o f world population. Most countries belong to the low income group, with per capita national incomes ranging from US$130 (Sierra Leone) to US$600 (CBte d'Ivoire). Only two countries, Cape Verde and Gabon, have a per capita income in excess o f US$l,OOO.

I. The Air Transport Market

2. As the air transport market i s linked to the volume o f the economy, traffic generation i s rather low in the region; the countries with the highest per capita and global income (or GDP) are also those where the higher air traffic figures are recorded.

Domestic air transport markets

3. The domestic air transport market i s non existent or marginal in some o f the smallest countries o f the sub-region, with the exception o f the island states such as Cape Verde. Other countries have a limited domestic air transport market; only one country, Nigeria, has a really important domestic air transport industry.

4. Due to the lack o f comprehensive statistics about regional air traffic," some estimates have been provided. The highest volume o f regional traffic for the year 2004 i s recorded in Senegal, with more than one million regional passengers, followed by Mali. Nigeria generates less regional traffic than Mali, Ghana or Cameroon, probably because the size o f i t s economy makes it more self-sufficient than i t s neighbors'; other factors may be security and facilitation problems, as well as the weakness o f Nigerian flag carriers on the regional market. Among individual routes, Lagos-Accra comes f i rs t with about 150,000 passengers (see Table 1 below). Other routes with sizeable traffic volumes are Dakar- Bamako, Dakar-Abidjan, Bamako-Abidjan; and Douala-Libreville. Actually, three high traffic density areas emerge: the Lagos-Accra-Freetown-Banjul corridor; the Dakar- Bamako-Abidjan corridor and the Douala-Libreville-Pointe Noire corridor. B y contrast with these high traffic density areas, traffics in the Sahel area and in Central Africa's landlocked countries are minimal. Economic l i n k s are the main driving force behind the inter-state market. Non-business or government related air traffic i s restricted to individuals in the higher income bracket.

5. The collapse o f Air Afrique, subsequent abolition o f barriers to market entry set by the YaoundC Treaty, and the entry into force o f the Yamoussoukro Decision affected the economic context o f inter-state air transport but did not substantially alter these traffic patterns.

~~~

" In the statistics used by WCA countries, regional air transport traffic often refers to air transport within Sub- Saharan Africa countries.

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Ta

Source: Air Transport in West and Central Africa, Fact and Issues, Michel Iches, 2008

Continental markets

6. Traffic with North Africa has developed steadily, capitalizing on traditional trade l i n k s (especially between Morocco and Senegal) and common culture. Maghreb airlines also offer attractive alternatives for onward connections to Europe, North America and the Middle-East. However, traffic volumes remain modest, except in Casablanca for traffic originating francophone African countries to European destinations.

7. The major routes with Southern Africa traffic are to and from Johannesburg. Traffic with Eastern Africa comprises an important proportion o f connecting traffic continuing to the Middle East and South Asia.

Intercontinental market

8. The intercontinental market i s dominated by the traffic flows to and from Europe. It has steadily increased over the recent years at an average annual growth rate of nearly seven percent, i.e. about double world average during the same period. The collapse o f two o f the region’s major airlines, Air Afrique and Nigeria Airways, may have affected individual routes but had no negative impact on total traffic. Elimination of services on some routes was quickly substituted by alternative routings, demonstrating that there i s some degree o f competition between the carriers (at least on markets served by more than one long haul carrier).

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9. In 2005, overall traffic volume with Europe i s estimated at about 4.6 million passengers annually. The country with the largest air traffic with Europe i s Nigeria (just under one million passengers p.a.), closely followed by Senegal, (over 900,000 annual passengers). Cape Verde ranks third with about half a mill ion passengers, followed by Ghana. All other countries trail behind with traffic volumes under 300,000 passengers and most under 100,000. The first four countries (Nigeria, Senegal, Cape Verde and Ghana) account for about two-thirds o f the total traffic recorded between Europe and the region’s 23 countries.

Benin Senegal Total Be 1 g ium Spain France

66 66 129 129

79 539 61 8 United Kingdom Italy

10. Among the European countries with scheduled air l i n k s with the two program countries (Phase I1 B), France ranks f i rst with about 618,000 passengers, i.e. just above the 60 percent mark; Spain i s second with 129,000 passengers, and Italy third with about 94,000 passengers. France-Senegal i s the major route with over one-half million passengers.

26 26 94 94

1 1. The Middle-East market i s growing, especially with the increasing role o f Dubai as a trade hub between West Africa and Asia. A large number o f charter flights are also operated every year during the Hajj period (pilgrimage to Mecca). Much o f the traffic with the Middle-East i s carried as sixth freedom via European or North African connections, traffic data based on direct air services tend to underestimate this market. Much o f the traffic with the Americas i s also carried via sixth-freedom connections. Direct traffic has fallen because all major U S carriers phased out their services to the region whereas Air Afrique and Nigeria Airways, once the region’s major operators on the transatlantic route, disappeared from the market. South African’s fifth freedom services provide the major direct link between the region and North America.

Portugal Total

Consolidated traffic results

88 88 79 942 1,021

12. Total air traffic o f the 23 states amounted in 2003 to 11 million passengers p.a. (without double-counts) o f which about nine million on international routes, i.e. less than two percent o f the World total. Out o f this total, about five million were recorded inside the region: three mill ion as inter-state and two mill ion as domestic. Long haul traffic totals six million, of: which Europe represents two-thirds (4.6 million) and the rest o f Africa about one million.

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Fares and costs

13. Airfares in the Western and Central Africa Region are considered up to 50 percent higher than world averages, thus hampering the development o f traffic and the region’s economies. Historically, protectionist policies granting monopoly rights to state- owned airlines contributed to keep fares high. These barriers are now gone and new airlines were created in large numbers, but the size o f the market remains small because o f the low per capita income and barriers to the development o f the tourism industry. This has an impact on air fares through less competition and higher costs, as fixed costs are spread over a smaller number o f passengers, fleets and equipment are underutilized, etc:Jet fuel and other consumable goods used in air transport often have to be imported and are subject to all the extra costs associated with imported goods in developing countries. This i s even worse in landlocked countries where j e t fuel must be trucked over long distances from the ocean ports.

14. According to airlines, airport landing fees and air navigation charges in the region are more expensive than elsewhere in the world. The underutilization o f equipment and facilities because o f low traffic i s a key factor to these higher costs.

15. High interest rates make the cost o f aircraft acquisition higher, especially for “undercapitalized” airlines. Too many o f the region’s airlines just do not have enough equity to support safe and sustainable operations. National regulatory authorities sometimes issue Air Operator Certificates without fully screening the applicants’ financial fitness. Low safety and security are also responsible for much higher insurance premiums.

The competitive context

16. With the elimination o f the YaoundC Treaty system and the coming into force o f the Yamoussoukro Decision, many o f the most heavily trafficked routes in the inter-state market were operated in 2003 by more than two carriers: six on Bamako-Dakar, four on Abidjan-Lagos, three on Douala-Libreville, four on Cotonou-LomC, etc. However, such routes were not numerous, even though they carried the largest part o f the traffic. Most other routes were served by only one or two carriers. On intercontinental routes, there was competition on the higher density routes: nine carriers on Lagos-Europe, five on Accra- Europe, seven scheduled carriers on Dakar-Europe (plus an even larger number o f charter operators and 6th freedom connections offered by North African airlines). On the other hand, from Bangui to Europe there was only one carrier, with just one weekly service.

11. The Region’s Air Transport Industry

17. In the past six years, all o f the region’s major legacy air carriers have gone out o f business (Air Afrique and Nigeria Airways in 2002, followed by Ghana Airways and Air Gabon, and, recently Cameroon Airlines). New entrants, such as Air Senegal International, Virgin Nigeria as well as some o f Nigeria’s new privately-owned domestic airlines have partly taken over the market previously served by these legacy carriers. However, they have been unable to fill the void completely and the WCA region’s air transport industry remains weak in the face o f leading actors based outside the region. Air France-KLM continues to

24

be number one on the market, followed by Royal Air Maroc, British Airways, Emirates and South African Airways. The most remarkable change i s the fast growth o f North African carriers operating in 6‘h freedom to Europe, North America and the Middle-East via their Mediterranean hubs. Out o f an estimated 13.2 million passengers generated in 2007 to, from and within the region, 3.9 million are recorded on domestic routes (chiefly in Nigeria), 1.7 million on interstate regional routes, and 7.6 million on routes with the rest o f the world (half o f this volume being carried by the five foreign carriers mentioned above).

18. With around five million passengers a year, Nigeria bears today the most active commercial aviation sector in WCA. The country has a large number o f privately owned airlines which operate mainly on the country’s dynamic and highly competitive domestic market. For some carriers, this fierce competition led to a drop in the quality o f service. Indeed, in April 2003, only 29 out o f 34 airlines were cleared after CAA’s audit o f private airlines. This number has since then dropped further to a mere 18.

19. The infrastructure sector comprises Air Traffic Management (ATM) service providers, airport authorities and airport management companies, and ground handling organizations. More than half the region’s countries are members o f ASECNA. The organization was established in 1959 as “multinational statutory body” with i t s headquarters in Dakar and provides Air Traffic Services for the upper space international airports. The Robertsfield ACC i s another multinational body operating ATM services for Guinea, Liberia and Sierra Leone, with i t s headquarters relocated at Conakry. Ghana, Cape Verde and Nigeria have their own ATM organizations.

20. Most o f the region’s airports are part o f the public sector with some cases o f partial privatization through concession arrangements or service contracts. Ground handling services are either provided in monopoly or le f t to each airline’s initiative.

The role of air transport in the region’s development

21. The macro-economic weight o f air transport in the region can be estimated between US$4 and 5 billion o f which about 60 percent for the traffic to and from Europe, whereas inter-state and domestic traffic represent respectively about 15 percent and 8 percent.

22. Specific economic sectors would benefit from the improvement o f air services: tourism, agriculture (especially for the export o f off-season h i t and produce), and manufacturing (especially for the supply o f spare parts and the movement o f maintenance crews). Air transport may also be an alternative for communications to landlocked or isolated communities, where it can resist the competition o f cheaper land transport. I t also provides job opportunities for qualified workers, especially in the technical and managerial specialties. Pilots and crewmembers are only the most conspicuous examples o f such jobs. This i s o f particular importance in WCA countries which experience high rates o f unemployment among higher education graduates.

25

111. Recent Events and Current Trends

The Yamoussoukro Decision

23. The Yamoussoukro Decision (YD) came into force on 12 August 2002, after a two- year transition period. This has not immediately revolutionized the air transport business, but has strengthened the legal status o f the air carriers’ rights, in particular on fifth freedom sectors. On many routes, “third party” carriers (Le. carriers that are not nationals o f either country on a sector between two countries) now offer fifth freedom services; it even happens that some sectors are only served by fifth freedom carriers. On some heavily trafficked routes, the number o f carriers now operating can be quite high, thus ensuring effective competition, whereas providing more travel and connection opportunities to consumers and a choice o f schedules. All in all, the industry’s executives and civil aviation officials are, on the average, rather satisfied that “the system works” and they feel relieved compared to what they feared when the YD came into force five year ago.

The collapse of Air Afrique and the end of the YaoundC Treaty

24. Air Afrique’s possible collapse has been considered a likely event ever since the early 1990s. All attempts to save the multinational carrier through “financial restructuring” eventually failed and the company had to stop i ts operations and f i le for bankruptcy on 8 February 2002. Air Afrique’s market share had consistently gone down from 1997 to 2002 and i t s traffic decreased even on sectors where total traffic was growing steadily. During the same period, Cameroon Airlines and Air Gabon were doing comparatively better on their own markets. This illustrated Air Afrique’s increasing inability to appeal to customers. As an immediate consequence, all speculations about “revising” or “updating” the YaoundC Treaty became irrelevant. Discussions about “reviving” the multinational airline under a different form have so far been unsuccessful, whether at the same level or at sub-regional levels such as CEMAC or UEMOA.

Consolidation forces in Europe’s air transport industry

25. Without going into details, considering the huge weight o f the traffic to Europe as well as at the market share o f European carriers in the region’s air transport business, events affecting Europe’s airline industry always have an impact for the region. Air transport liberalization o f the 1990s i s progressively reshaping the structures o f Europe’s airline industry and transport patterns. Next steps are expected to be the “pooling” o f traffic rights with the United States and possibly with some o f West and Central Africa’s sub-regional groupings. As a result o f this consolidation process, three carriers: Air France-KLM, British Airways and Lufthansa altogether hold 30 percent o f West and Central Africa’s air transport business.

The emergence of new carriers

26. The emergence o f new carriers has quickly provided a substitute to Air Afrique’s inter-state services in West and to a lesser extent Central Africa. They operate smaller aircraft, offer higher frequencies and schedules better suited to the demand. They also own

26

their fleet, are determined to’ “play by the rules” (comply with safety regulations, apply stable schedules and stable fare structures) and operate with a long term perspective. Some have the technical backing o f a strong partner, such as Royal Air Maroc for Air Senegal and Air France for Air Ivoire. These recent developments confirms, however, that the future o f these new airlines remains uncertain as Air Senegal has de-facto re-nationalized following the refusal o f Royal Air Maroc to participate in i t s re-capitalization after incurring large operating losses while Air France has pulled out o f i ts technical support to Air Ivoire. Likewise, Air Mauritania collapsed at the end o f 2007 and the gradual expansion o f the privately operated Air Burkina and Air Mal i (same owner) will not compensate for the loss o f services incurred since the disappearance o f Air Afrique.

Prospects

27. Among the most widely used projections in the aviation community, there are those o f the aircraft manufacturers. According to Airbus Industries’ projections, Africa’s economy should grow at an average rate o f five percent over the next 15 years, thus strongly increasing the need for air transportation. For the 2007-2016 period, Africa’s traffic with North America Asia and the Middle-East i s expected to enjoy more than eight percent o f annual growth, while traffic with Latin America and Europe should grow respectively at six percent and five percent a year. Although intra regional traffic has been growing at a slow pace these past 20 years (three percent), it i s expected to grow at an average o f eight percent over the next 10 years.

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Annex 2: Major Related Projects Financed by the Bank and/or other Agencies

West and Central Africa Air Transport Safety & Security APL Program Phase 2-B

COSCAP Project (Cooperative Development of Operational Safety and Continued Airworthiness)

1. Major donors including the ADB, the French Cooperation and the EU have agreed to finance under a grant agreement three COSCAP projects in WCA with one covering the UEMOA + Mauritania countries, one covering the CEMAC countries and one covering the non UEMOA countries within ECOWAS (also known as the Banjul Accord). These projects complement at the regional level the national activities that will be funded by this program.

2. The COSCAP’s main objective i s to enable West and Central Africa to integrate the international civil aviation network by enhancing i t s civil aviation safety along the lines o f the Yamoussoukro Decision policies. To achieve this objective, the following goals need to be reached:

Ensure reinforcement o f aviation safety supervision capacity within the civil aviation institutions;

0 Establish economic and technical rules for aviation safety in l ine with the recommendations o f the ICAO so as to enhance safety and efficiency within the civil aviation sub-sector; and Reduce the general costs o f air transport.

To attain these objectives, the following issues need to be addressed:

0

0

0

Harmonization, elaboration and adoption o f technical regulations for civil aviation safety; Three autonomous and functional Regional Agencies for Aviation Safety (R4AS) must be created and the air transport safety supervision capacities must be enforced; The capacity for coordination and follow up on the Yamoussoukro Decision must be enforced; and Capacities for follow up and management o f Regional Economic Communities (REC) must also be enforced.

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Project Name

Region

Project Cost

Project Executives

Donors

Implementation starting date

Project duration

COSCAP

West and Central Africa

US$19.37 million (value o f December 2004) - Communaute Economique et Monetaire d’ Afrique Centrale

(CEMAC) West Africa Economic and Monetary Union (UEMOA) Economic Community o f West African States (ECOWAS)

French, UE, IFFAS coop: US$6.98 million Others: (Boeing, Airbus, FAA): US$l .OO million

- - - ADB : US$6.74 million - - - CEMAC: US$l ,17 million - ECOWAS/GAB: US$1.17 million - UEMOA: US$1.05 million - Governments: US$1.25 million May 2005

37 months

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Annex 3: Results Framework and Monitoring

West and Central Africa Air Transport Safety & Security APL Program Phase 2-B

PDO Table 1: Results Framework for program component

Outcome Indicators

1) Improve national CAAs’ aompliance with ICAO’s safety standards

2) Increase national CAAs’ compliance with ICAO’s security standards

3) Enhance main international airports’ compliance with ICAO’s security standards

Intermediate Results One per Component

Component aviation safety

Compliance rates with ICAO’s safety standards reach at least:

Percentage o f technical personnel in compliance wii.. ICAO’s safety standards reaches at least:

CAAs’ total budget level reaches at least (in FCFA billions):

Compliance rate with ICAO’s aggregate safety standards based on ICAO’s audits, with all actions in their Corrective Action Plan completed; Percentage of technical personnel in compliance with ICAO’s safety standards; and Total CAAs’ budget amount.

Compliance rate with ICAO’s aggregate security standards based on ICAO’s audit, with a l l recommendations addressed; Percentage o f CAA’s security inspectors, who‘received during the last three years a security training conforming to ICAO standards; Level o f CAA’s (Benin) and CAA and other entities’ (Senegal) budget dedicated to security; and National Security Plan compliance with ICAO’s standards.

Percentage o f airport security personnel with three or more years of experience; Number of serious problems recorded during airport crisis exercises taking place annually (Benin) or every second year (Senegal); and Percentage o f embarking passengers stopped in possession o f illegal objects, as defined by the ICAO by private security personnel mandated by airlines or airport authorities, or/and by the National Police.

Results Indicators for Each Component

e > 40% in Benin e > 80% in Senegal

>30%inBenin e > 70% in Senegal

e 1.3 in Benin 3.75 in Senegal

Use of Outcome Information

Measure improvements in: 1) CAAs’ compliance rates with ICAO’s security and safety standards, 2) targeted airports security levels, and 3) sustainability o f these improvements.

Use of Results Monitoring

Identify problems and associated solutions in CAAs’ safety oversight capacity

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Intermediate Results One per Component

Component aviation security 0 Compliance rates with

ICAO’s security standards reach at least:

0 Percentage o f C a s ’ security inspectors, who received duting the last three )‘ears a security training conforming to ICAO standards:

CAA’s (Benin) and CAA and other entities’ (Senegal) budget le \ e l dedicated to security reaches at least (in FCFA millions):

Component airport security

0 Percentage o f airport security personnel with at least three or more years o f experience:

0 Number o f serious problems recorded during airport crisis exercises taking place annually (Benin) or every second year (Senegal):

0 Percentage o f embarking passengers stopped in possession of illegal objects as defined by the ICAO by private security personnel mandated by airlines or airport authorities, orland by the National Police.

Results Indicators for Each Component

0 >6O% in Benin 0 >60% in Senegal

0 >40% in Benin >6O% in Senegal

0 328inBenin 0 2,800 in Senegal

0 >45% in Benin 0 >75% in Senegal

0 <5 inBenin 0 <5 in Senegal

0 <2% in Benin 0 <2% in Senegal

Use of Results Monitoring

Identify problems and associated solutions in CAAs’ security oversight capacity

Identify problems and associated solutions in international airport security measures

31

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Annex 4: Detailed Program Description

West and Central Africa Air Transport Safety & Security Program Phase 2-B

Benin Aviation Sector and Program ComDonents

I. Overview

1. It i s estimated that transport sector represents about seven percent o f Benin’s GDP, and the improvement in transport infrastructures and related services would contribute to strengthen the country’s competitiveness, develop trade, boost economic growth, and reduce poverty. Despite various priorities and a limited budget, the government o f Benin recently made an effort to improve the main airport o f Cotonou through the extension o f i t s aircraft parking capacity (from nine to twenty-three parking station, including one for large body aircraft) and the construction o f a second taxiway. I t also launched a study for the extension o f the runway. However, government’s investments are not secured and only occur from time to time, depending on annual spending priorities.

2. Air transport traffic in Benin i s rather modest, with a total around 315,000 passengers per year, concentrated at the international airport o f Cotonou. Today, the aviation sector in Benin i s organized around the following entities:

The Anence Nationale de I’Aviation Civile (ANAC), which i s the authority in charge o f the Civil Aviation. ANAC i s an autonomous administrative entity established in 2004, replacing the former Civil Aviation Directorate (DAC). The ANAC has an annual budget o f about FCFA 1.2 billion (or about US$2.6 million), which allows it to cover i t s operating expenses, and make few investments, mainly in buildings so far. I t s resources come from security fees (3 8 percent), aeronautic development fees (45 percent), and concession fees (1 1 percent). Thus, ANAC i s theoretically financially sustainable and should be able to invest more to maintain or acquire safety and security equipments in the future.

The Anence pour la Se‘curite‘ de la Navigation Ae‘rienne en Afiiuue e t h Madagascar (ASECNA), which i s in charge o f the management o f both the country’s lower air space, and the Cotonou airport.

3. Besides, several foreign airlines (Air France, Air Burkina, Compagnie aerieme du Mali, Royal Air Maroc, Afriqiyah, Air Senegal International, Air Ivoire, Air Mauritanie, Virgin Nigeria Airways, and Kenya Airways) are operating long haul and regional flights to and from the country. There are also several private companies which are registered in the country (Benin Golf Air, Trans Air Benin, Aero Benin, West Africa Airways, Alafia jet, Cotair, Benin Littoral Airways, and a last one, Royal Air Benin, for which the registration process i s in-progress), and several aircrafts are registered in Benin.

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11. National Aviation Issues

Revenues Operational Revenues Subsidies Total Revenues costs

4. the most pressing ones are the following:

A host o f issues affect day-to-day operations o f the aviation sector in Benin. Among

(millions) I (thousands) (millions) 1 (thousands) 1US$ = 539 FCFA 1,272.2 2,360.3 906.3 1,704.0

74.8 139.0 35.0 65.8 1,347.0 2,499.3 941.3 1.769.3

1US$ = 532 FCFA

Insufficiencies in technical staff Benin’s conformity rate with ICAO’s standards i s very low, regarding safety issues: only 20 percent for the overall assessment, with specifically catastrophic results for the C A A personnel’s qualifications and competencies (only a l i t t l e bit more than 1 percent). These results are among the worst ones in the region, and demonstrate a lack o f valuable technical staff within the ANAC, both in terms o f quality and quantity.

Governance: A N A C i s collecting fees amounting yearly about US$3 million, yet it only recruited this year an external auditor who i s analyzing i t s financial statements since its inception. The preliminary audit results raise questions some aspect o f ANAC’ s financial management and procedures and particular attention should be paid to how the organization proposes to address these remarks. 0 Obsolete legislation: Benin’s Civ i l Aviation Code was adopted in 1962 and was never updated or complemented. As a result, the country’s legislation and regulations were continuously rated as “non-conform” by I C A O because o f out-dated provisions or inexistent regulations. The A N A C has then no legal or regulatory reference to fulfill its duties whereas those are i t s key work instruments. 0 Bonuses; The C A A pays bonuses to the personnel o f the private security companies deployed at Cotonou airport whereas the c iv i l servants working in the law enforcement agencies (Le., police, gendarmerie and customs agents) directly submit their own service invoices to air carriers, without any control o f the basis o f their calculations, nor their true distribution among the so-called beneficiaries.

Purchases Transports External services

Table 1: Benin - ANACs financial statements

95.1 176.5 42.8 80.5 0.2 0.4 0.3 0.5

149.0 276.5 138.2 259.7 Other costs 17.4 32.4 I 17.7 I 33.3 Labor costs 299.0 554.8 I 211.2 I 397.0

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Depreciation expenses Financial Costs Total costs Net income

77.4 143.7 90.0 169.0 0.2 0.4 0.1 0.2

638.5 1,184.6 500.3 940.4 708.5 1,314.7 441.0 829.0

111. Addressing National Aviation Issues

5. Based on the observations made during the program preparation, as well as the data provided by the local aviation authorities, a specific action plan for the ANAC and other aviation related entities was developed. This plan represents an answer to the specific issues raised and complements the activities financed by the Government and the ANAC. I t is:

e Insufficiencies in technical staff ANAC will gradually recruit technical staff to reinforce the existing ones and the Program wi l l finance staffs training based on a training plan to be approved by the Bank. Staffs qualification will be evaluated independently by an independent qualified team during the program’s mid-term and end term review. e Governance: Additional fiduciary control wi l l be implemented through the recruitment o f an independent international auditor in order, not only to review the conformity o f the financial statements with standard international practices, but also, to advise on how to ensure long term sustainability o f ANAC. e Obsolete legislation: After ICAO’s audits, the C A A undertook a long and thorough review o f the legislation. Consequently, a new Civi l Aviation Code i s being drafted to address ICAO’s remarks and i s scheduled to be published before the end o f 2008. The new code should allow ANAC improve significantly i t s compliance rate with ICAO’s standards. In order to help ANAC in this important endeavor, the program wi l l finance technical consultants to ensure the code’s relevance to ICAO’s standards. e Security uersonnel bonuses: a thorough study will be carried out to review the current system to ensure i t s fairness and consistency as such bonuses should be paid transparently to all the personnel involved in airport security activities.

IV. Program Components and Detailed Activities

6. On the basis o f the shortcomings and needs previously identified, an investment l i s t covering the national needs o f the aviation sector in Benin was developed. I t s total estimated cost stands at US$lO.O million. In order to provide a comprehensive view o f the allocation o f funds, the activities to be financed under the project have been detailed and classified in the following categories:

i) ii) iii) iv) 4 vi) vii) viii)

Personnel training; ANAC equipment; Aviation’s communicatiodnavigational aid equipment; Airport security equipment; Crisis center equipment; Airport infrastructure equipment; Consulting services and miscellaneous; and Program management (including Client in-kind contribution).

36

Table 2: Program costs by activity and category (in US$ millions)

a) Personnel training

7. The aim i s to mainly enhance ANAC’s personnel knowledge base and i t s experience in aviation safety and security. Therefore, training for safety oversight personnel as well as security training for the key operational personnel, including those working at Cotonou airport will be undertaken. An assessment study o f the existing personnel sk i l ls will be carried out in order to identify the specific needs for emergency training. The fields o f training will encompass aviation safety (CNS/ATM - Communication Navigation Sys tedA i r Traffic Management and avionics, etc.), and security (screening equipment technology operations and maintenance for the users o f the newly acquired equipment, etc.). Total program cost for this activity is estimated at US$1.47 million.

b) ANAC equipment

8. The equipment to be acquired for A N A C will help complete its technical library, enhance i ts personnel training center and deploy a centralized telecommunication system between the ANAC’s headquarter and i t s departments as wel l as the key entities working at Cotonou airport. This will be done to facilitate inner communications and improve overall productivity. Overall cost for this activity is estimated at US$0.79 mil l ion.

c) Aviation equipment

9. The acquisition o f communication (VHF; Talkie-walkie) and radio equipment, as well as equipments and vehicles for Search and Rescue (SAR) activities is designed to improve f ield communication capacity o f ANAC’s personnel and remedy the lack o f Search and Rescue (SAR) capacity. Total cost for this activity is estimated at US$2.82 million.

d) Airport security equipment

10. Explosive material tracers as well as smaller security equipments, such as telescopic mirrors, will be procured and installed at the airport o f Cotonou, to enhance the airport security. Likewise, five x-ray machines for freight and passenger luggage screening will be purchased. The deployment o f these new machines at Cotonou airport will ensure that 100

37

percent o f all cargoes and luggage placed on board airplane operating from the airport have been screened. Total cost for this activity i s estimated at US$1.53 million. These purchases will allow the redeployment o f some older hardware to Parakou airport as soon as it i s operational.

e) Crisis center equipment

11. A building dedicated to airport crisis management i s under construction at Cotonou airport. I t s equipment w i l l be financed under the program for an estimated cost o f US$O.13 million.

f ) Airport infrastructure equipment

12. The airport will be equipped with a closed circuit television monitoring systems in order to meet the international security and safety standards. This investment i s to be complemented by appropriate training o f the personnel operating such system. Total cost for airport infrastructure upgrade i s estimated at US$0.75 million.

g) Consulting services and Miscellaneous

13. strengthening, program audits. Total cost for these items i s estimated at US$0.93 million.

This activity covers the various items such as consulting services related to capacity

h) Program management

14. This activity covers the program management costs and the Client in-kind contribution, such as office spaces and supplies, the salary o f the PCU personnel allocated to the Program implementation. Total cost for these items i s estimated at US$l.58 million.

38

Senegal Aviation Sector and Program Components

Overview

15. The government o f Senegal i s ambitious to position i t s capital city, Dakar, as a hub in West Africa for air traffic to and from Europe, North America, and South America. To this end, a new international airport Blaise Diagne will be constructed in Ndiass. This new international airport wi l l be financed by a “Fee for the Development o f Airport Infrastructure” currently collected on passengers using international airports in Senegal. As a matter o f fact, i t i s estimated that the capacity o f the current main international airport o f Senegal, Dakar Ldopold Sedar Senghor (L.S.S.) i s not sufficient to absorb the traffic of passengers and cargo which are projected to reach about three million (vs. less than two million now) and 54,000 tons in 2020, respectively. Nevertheless, the current state o f Dakar International Airport in terms o f safety and security i s adequate as the airport i s allowed to offer direct flights f r o d t o the United Stated o f America. However, as Senegal i s not rated by the US FAA as IASA Category I, these flights can only be operated by carriers registered in countries rated Category I. Accordingly, Senegalese registered carriers cannot for now provide passenger and cargo services to North America.

16. Today, the aviation sector in Senegal i s organized around the following entities:

The ANACS, which i s the Senegalese authority in charge o f the Civil Aviation. ANACS i s an autonomous administrative entity established in 2002. It became operational in mid-2003 when it replaced the former Civil Aviation Directorate (DAC). I t i s under the authority o f the Minister in charge o f air transport. ANACS has an annual budget of FCFA 3.42 billion (or about US$7.6 million), stemming mainly from users’ fees (more than 85 percent), including civil aviation fees (about 40 percent), concession fees from airport management entities (30 percent) and handling companies (1 5 percent). Unlike similar authorities in Africa, ANACS collects very l i t t le security fees even though it i s in charge o f security supervision. However, ANACS budget seems sufficient to ensure i ts financial sustainability, at least when it comes to covering i t s operating expenses. I t s capacity to invest and maintain safety and security equipments has yet to be demonstrated, however. The Anence pour la Se‘curite‘ de la Navigation Ae‘rienne en Afiiaue et 6 Madanascar (ASECNA,) which i s in charge o f the management o f the country’s lower air space. The Authoritv for National Aeronautical Activities (AAANS, ) which i s responsible for the management o f airports in Senegal pursuant to a Particular Agreement signed between the government and the ASECNA. The High Authoritv of Le‘opold Se‘dar Senghor Airport (HAALSS), which i s responsible for the coordination and implementation o f security measures at Dakar International Airport. I t s activities are financed by the security fees it collects on passengers using the airport.

39

National Aviation Issues

17. Among the most pressing ones are:

A host o f issues affect day-to-day operations o f the aviation sector in Senegal.

Governance issue regarding the security fees: there i s a lack o f transparency in the collection, management and use o f the security fees. To-date, there i s no separate accounting records and no external control o f these fees. I t i s estimated that the overall security fees collected in 2007 amounted to US$5 million, with almost ha l f o f it transferred to HAALSS, and the rest, kept by the A A A N S for, theoretically, being used to financed investments to be made on behalf o f the HAALSS. In addition, there i s no legal text establishing the sharing mechanisms for these fees among the two beneficiary entities. Instead, the distribution i s based on a simple and non-motivated decision o f the Minister in charge o f air transport. As a result, ANACS never receives a portion o f these fees (except in 2005 when it got US$400,000), and i s not relying on them for i t s budget. Lack of autonomy of the entity in charge of aircraft incidents and accidents, which has been signaled several times to Senegal by ICAO. For the time being, such task i s assigned to ANACS with the result o f not guarantying any due process.

Source: ANAC Addressing National Aviation Issues

18. Based on the observations made during the preparation mission, as wel l as the data provided by the local aviation authorities, the Bank’s Team devised a specific investment program for A N A C S and other aviation related entities. This investment program represents an answer to the specific issues raised and complements the activities financed by the Government and the ANACS.

40

On the governance issue regarding the securitv fees: The current situation i s not normal, because ANACS i s the official entity in charge o f aviation security supervision. I t i s rather the intervention o f the AAANYASECNA, the airport management entity, in the collection and the management o f those fees which raises a host o f issues. Accordingly, a review o f the whole payment and collection mechanism will be undertaken in order to clarify each entity’s contribution in air transport security activities in order to propose the most adequate system. On the lack of autonomv of the entity in charge of aircraft incidents and accidents: The Program will help the Government create an autonomous Office for aircraft incidents and accidents.

4. Program Components and Detailed Activities

19. O n the basis o f the shortcomings and needs previously identified, an investment list covering the national needs o f the aviation sector in Senegal was developed, with total investment estimated at US$8 million. In order to provide a comprehensive view o f the allocation o f funds, the activities to be financed under the program have been detailed and classified in the following categories:

i) i i) iii) iv) V I vi) vii) viii)

Personnel training; ANACS equipment; Aviation communication/ navigational aid equipment; Airport security equipment; Crisis center equipment; Airport infrastructure equipment; Consulting services and miscellaneous; and Program management (including Client in-kind contribution).

Table 4: Program costs by activity and category (in US$ millions)

I Total I 8.00

41

a) Personnel training

20. The aim i s to enhance the knowledge base and the experience in aviation safety and security staff, mainly o f ANACS personnel. Therefore, training for safety oversight personnel as well as security training for the key operational personnel, including those working at Dakar Leopold SCdar Senghor Airport will be undertaken. An assessment study o f the existing personnel skills will be carried out in order to identify the specific needs for emergency training. The fields o f training and exercises will encompass aviation safety, air traffic control, crisis management, and Search and Rescue (SAR). Total estimated cost for this activity i s estimated at US$2.03 million.

b) Agency equipment

21. The equipment to be acquired for the ANACS will be aimed at completing i t s technical library and i t s personnel training equipments, enhancing i t s management o f airport slot allocation as well as improve i t s overall productivity. This will include medical equipment which will be used to carry normal medical checks (i.e., vision test, lung x rays, urine and blood tests) for the l imited numbers o f aircrews which are licensed in Senegal (i.e., less than 50). These checks will be done by a doctor under contract with ANACS who will be responsible to dispose properly and safely o f any any medical supplies used to administer these tests. Overall cost for this activity i s estimated at US$1.80 mil l ion.

c) Aviation equipment

22. The acquisition o f communication (VHF; Talkie-walkie) and radio equipment, as well as equipment and vehicles for SAR activities for ANACS aims at improving the field communication capacity o f the Agency’s personnel. Total cost for this activity is estimated at US$O. 16 million.

d) Airport security equipment

23. Senghor Airport.

As mentioned above, security equipment i s not an issue for Dakar LCopold Sedar

e) Crisis center equipment

24. Field missions have revealed that there i s already a crisis management centers at Dakar Ldopold Sedar Senghor Airport, and the eventual upgrading o f i t s equipment was not selected as a priority for the current Program’s financing.

f ) Airport infrastructure equipment

25. Investment i s needed for a closed circuit television monitoring systems at Dakar LCopold Sedar Senghor Airport. These investments are to be complemented by appropriate training o f airport personnel. Total cost for airport infrastructure upgrade i s estimated at US$0.75 million.

42

g) Consulting services and Miscellaneous

26. Besides the activities related to capacity strengthening and program audits, this category covers various consulting services aimed at: (i) supporting ANACS in updating i t s technical regulations, translating them into English and disseminating them; (ii) helping the Government and ANACS set up an office for aircraft incidents and accidents; and (iii) reviewing the overall system for the collection and the management o f security fees, in accordance with the effective responsibilities o f each agency involved in this process. Total cost for these items is estimated at U S 1 . 8 8 million.

h) Program management

27. This activity covers the PCU’s related management and operating costs, as well as the Client in-kind contribution, such as office spaces and supplies, the salary o f the PCU personnel allocated to the Program implementation. Total cost for these items i s estimated at US$1.38 million.

43

Annex 5: Program Costs West and Central Africa Air Transport Safety & Security APL Program Phase 2-B

Program Costs by Component andlor Activity Personnel training.

Local Foreign Total US$ million US$ million US$ million

0.00 1.47 1.47 ANAC equipment I 0.00 0.79 0.79 Aviation equipment 0.00 2.82 2.82 Airport security equipment Crisis center equipment

0.00 1.53 1.53 0.00 0.13 0.13

44

Airport infrastructure equipment Consulting services & miscellaneous

in-kind contribution) Total

Program management (incl. Client

0.00 0.75 0.75 0.00 0.93 0.93 1 .oo 0.58 1.58

1.00 9.00 10.00

Program Costs by Component andlor Activity Personnel training ANACS equipment Aviation eauinment

Local Foreign Total US$ million US$ million US$ million

0.00 2.03 2.03 0.00 1.80 1.80 0.00 0.16 0.16

Airport security equipment Crisis center equipment Airport infrastructure equipment Consulting services & miscellaneous

0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.75 0.75 0.00 1.88 1.88

Program management Total

1 .oo 0.38 1.38 1.00 7.00 8.00

Annex 6: Implementation Arrangements and Monitoring Plan for Good Governance

I. Program Implementation mechanisms

I. 1. Regional Coordination

1. The implementation o f the program i s done on a country basis, using the arrangements agreed with each government. The African Development Bank and other donors are funding al l activities relevant to the regional coordination o f the program which are implemented by the respective Regional Economic Communities (RECs) (Le. the UEMOA, ECOWAS and C E M A C Secretariats). Therefore, the fiduciary elements o f this coordination are not spelled out in this Annex which focuses mostly o n implementation arrangements o f the Benin and Senegal credits funded under the program. N o program- funded activity per se necessitates simultaneous involvement o f two or more countries. In Benin and Senegal, the program will be implemented by the ANACs established on October 29,2004 by Decree 2004-598 at the Ministry o f Public Works and Transportation for Benin and on May 21, 2003 by Decree 2003-384 at the Ministry in charge o f Transportation for Senegal. The ANACs will manage procurement and disbursement activities and will have financial autonomy. Additional staffing for the ANACs will be recruited and/or trained on World Bank’s procedures when deemed necessary.

2. In both Senegal and Benin, the ANACs will have to report back respectively to the Ministry o f Public Works and Transportation and the Ministry o f Infrastructure, Land Transport and Air Transport. Separate Financing Agreements will therefore be signed between the governments o f Benin and Senegal and IDA. In addition, subsidiary agreements will be signed between the governments and the ANACs, and Project Agreements between IDA and the ANACs.

I. 2. Arrangements in each country

Fiduciary Agencies (FAs), Technical Implementation Agencies (TIA) and Technical Teams (TTs).

3. In Senegal, the program wil l have at least three direct beneficiaries: the ANACS, the HAALSS and the aircraft Accidents and incidents Investigation Office (AIO) which will be set up with the program’s support. In order to simplify the program’s management, it i s proposed to concentrate i t s fiduciary responsibility within the ANACS so as to make it the Fiduciary Agency (FA). The ANAC, therefore, wil l act as the fiduciary responsible for the support i t receives and for those received by the other beneficiaries. These beneficiaries will remain in charge o f the technical implementation o f their activities (through Technical Implementation Agencies or TIA) and will appoint technical teams (TT) to fo l low up the implementation. In Benin, the implementation arrangement is different since the program’s beneficiary i s essentially the ANAC. However, in both countries, several structures external to the administration o f civil aviation will also benefit f rom the project through training programs, and sometimes through the provision o f equipments for their operation. 4. The performance o f the ANACs will be reviewed joint ly by the Ministries o f Finance and Publics Works and Transportation in Benin and by the Ministry o f Finance and

45

the Ministry o f Infrastructure, Land Transport and Air Transport in Senegal. The reviews will take place on a regular basis as well as during Bank’s supervision missions at least twice a year. Remedial measures will be taken in case o f problems or non-performance.

5. at the regional level, i s described in the diagram below :

The general organization o f the program in each country, including i ts supervision

lementation arrangements dese loped in the sections related to

in the section as the same mechanisms

6. The ANACS will be the main fiduciary agency because it i s the guardian o f government’s sovereign responsibility in terms o f aviation sector’s international commitments and issues as well as will benefit from the majority o f the activities to be financed by the Program. To this end, the ANACS fiduciary management capacity will be strengthened.

46

7. Meanwhile, each TT will be led by a manager under the direct authority o f the chief executive officer (CEO) or the executive secretary o f each organization (in the case o f the HAALSS, it would be a Senior Officer, and in the case o f the ANACS, it would be the project coordinator himself), and by the head o f the AI0 once it i s set up within the Ministry. Coordination between technical and fiduciary responsibilities will fo l low the principles outlined below, with mechanisms o f internal and external controls also described as follows (see below for further details).

Costing of activities

Implementation program X

Table 1: Implementation Technical FYduciaq Implementing.

AgencyfTIA) ANAC in Benin

HAAZSS, and AIO (once it is set

c up)' ig Senegal

' @Fey

@ ANACS, ' and

yzr

X

X

All activities I I

~ ~~~ ~~

Issuance of

Interest Expression of

Procurement: evaluation of bids / proposals

Design of the

activities program scope and X

~

X

X

I

Procurement : Technical specifications/ Terms of Reference (TORS)

Procurement: bidding documents X

X

X

nd good governance COI

Go

Senegal , -

Existence of an internal audit and control function (AN AC S)

Risk analysis (Steering Committee, ANACS)

Realism check (Steering Committee, HAALSS and ANACS)

Systematic checks to detect collusion or fraud cases (Internal Auditor - ANACS, Markets Authority (DCMP - Ministry of Finance)

Check o f selected ex-post and ex-ante methods (internal auditor, DCMP)

Ex-post and ex-ante control (Markets Commission, Markets Authority (Internal Auditor, DCMP for amounts above the threshold of public procurement code)

trol arrangements

ernanre Control

Benin

Existence of an internal audit and control function (ANAC), Ministry General Inspection department, MDCTTP

Risk analysis (Steering Committee, ANAC)

Realism check (Steering Committee and ANAC). Elaboration of a procurement plan to be approved by the IDA before implementation Systematic checks to ensure the impartiality of the Terms of Reference / Technical Specifications (Internal Auditor ANAC, Markets Authority (CPMP DNMP - Ministry of Economy and Finance)) Verification of certain ex-post and ex ante to ensure compliance with procedures, transparency o f the process and neutrality of content (internal auditor, IG MDCTTP, CPMP, DNMP)

Ex-post and ex-ante control (ANAC Internal Auditor, CPMP, DNMP for amounts above the threshold of public procurement code)

47

Activity +

Procurement: evaluation o f bidstproposals

Contract awardlsigning

Technical control and technical certification of activities

Payment requests

Appeals mechanism t Remedies Control of adequate project audits

X

Ex-post and ex-ante control (Markets Commission, Markets Authority (Internal Auditor, DCMP for amounts above the threshold o f public mocurement code).

X

X Controls (by Technical Commissions, Internal Auditor)

Financial audits (Independent consultants) X

(DG ANACS, ARMP, Conciliator, Justice)

External Audit, internal check, Audit Bench (Chambre des comDtes)

ernance Control

Benin

Ex-post and ex-ante control (ANAC Internal Auditor, CPMP, DNMP for amounts above the threshold o f public procurement code)

Check o f the conformity of contracts’ contents by the Financial Controller, possible remedies o f bidders to an independent organ (CNRMP), apriori review and aposteriori annual review o f the IDA

Controls (by Technical Commissions, Internal Auditor)

Financial audits (Independent consultants)

(DG ANAC, Regulatory Commission in charge o f public contracts)

External audit, internal check, Audit Bench, General Inspections MDCTTP

Organization of the fiduciary agencies (FA) and description o f arrangements

8. In Benin, the A N A C has a Chief Financial Officer, an Assistant in charge o f accounts and accounting staff, a Procurement Officer within the Department o f infrastructure, and an Internal Auditor. In Senegal, the fiduciary team o f the ANACS will consist o f a Chief Financial and Administrative Officer, a Chief Accountant and an accountant staff. The fiduciary team o f the A N A C in Benin will be strengthened by two consultants (a Procurement Specialist and a Financial Management Specialist), while in Senegal, a Procurement Specialist (funded by the program), a Financial Manager and an Internal Auditor (using ANACS’ financing) will be recruited. The activities o f the ANACs and their annual financial reporting will be subjected to reviews by independent external auditors which will be hired in accordance with Bank’s procedures and funded by the program. The individual consultants will be hired before the credit’s effectiveness and will be appointed for an init ial period o f one year, based on a renewable contract depending on their performance and the needs o f the program. They will complement the technical (or financial) and procurement expertise o f the ANACs members already in place. Their terms o f reference will include a clear obligation to train their ANACs counterparts in order to strengthen their capacity.

48

9. The TTs and FAs will be established on the basis o f terms reference acceptable to the World Bank and staffed with employees with qualifications and experiences also acceptable to the Bank. The Bank will review the draft terms o f reference for the TTs and the CVs o f the proposed current or future staff.

10. The TTs’ capacity can be strengthened to allow them to implement their respective components on a day-to-day basis in l ine with procedures governing the program’s preparation and implementation. Particularly, in the case o f Senegal, each team leader (HAALSS and AIO) will have direct access to the project coordinator, especially for implementation issues, without having to go through the administrative proceedings and hurdle o f having the ministerhead o f structure sign o f f each correspondence addressed to other structures.

11. There i s sufficient technical knowledge within the ANACs to ensure: (i) the elaboration o f preliminary technical documentation in support o f the activities to be undertaken by each Agency and contained in its procurement plan, and (ii) the supervision o f the program implementation in the field, as well as the reporting activities to their General Director. Nevertheless, it was agreed that consultants recruited nationally using Bank’s procedures may punctually assist the current staff and help the agencies to build their management and program implementation capacity.

12. In Senegal, ANACS’ project team will be comprised o f the fol lowing staff:

Fiduciary Team: 0 A Coordinator; 0 A Chief Financial Officer; 0 A Management Controller; 0 A Chief Accountant; 0

0 An Internal Auditor. A Procurement Consultant (to be recruited from outside the structure); and

Technical Team: 0

0 The Director o f Navigation. The Director o f Control and Security; and

Within the HAALSS, the Technical Team will include: 0 The Focal Point (Chief Administrative and Financial Officer); and 0 The Head o f security control o f the Dakar airport

Within the AIO, once i t i s set up, the Head o f the AI0 will act as the focal point.

13. In Benin, ANAC’s project team will be comprised o f the fol lowing staff:

Fiduciary Team: 0 A Coordinator; 0 A Chief Financial Officer;

49

0 A Procurement Manager (head o f the infrastructure service); A Financial Specialist (to be recruited using the program’s funding);

0 An Accountant; 0 A Procurement Consultant (to be recruited); and

The General Inspection department within the Ministry in charge o f Transport which will fulfil the duties o f Internal Auditor.

Technical Team: 0

0

The Director o f Air Operations; and The Coordinator o f Security at the airport o f Cotonou (chief o f airfields in Benin for the ASECNA) .

14. Oversight: the Ministry in charge o f Transport and Public Works in Benin and the Ministry o f Transport in Senegal will be responsible for the overall oversight o f the program. The respective ministries will carry out overall oversight, provide pol icy direction, and solve any problem that may hamper the preparation and implementation o f the program. These ministries will chair the Program Steering Committees (SC) which will meet quarterly to review the status o f the development program and i t s performance. This review process will be based on the quarterly financial management reports as wel l as procurement and program implementation reports prepared by the ANACs. The General Director o f each A N A C will provide the secretariat o f these steering committees.

15. Monitoring and Evaluation: The performance indicators o f the project listed in Annex 3 must be monitored carefully by the ANACs o n a quarterly basis, taking into account the data provided by each operational department in charge o f safety and security, and by security companies operating at the airports. In addition, at the project mid-term and 6 months before its end date, a full audit in l ine with ICAO’s methodologies will be conducted by an independent consultant funded by the project to estimate the values o f al l project’s indicators.

I. 3. ANACs and Program Steering Committees Scope o f Services

Program Coordination Unit (PCU)

16. The Program Coordination Unit in each A N A C will perform the daily management o f the program based on the applicable provisions o f each Financing Agreement and any other applicable agreements (Le., Project Agreements between each A N A C and IDA and Subsidiary Agreements between each A N A C and their respective governments).

17. Specifically, each country’s A N A C will implement the fol lowing program management activities (also see Table 1):

0

0

0

0 Prepare program’s contract documents;

Prepare the program implementation plan; Select consultants in accordance with the procedures o f the Bank; Carry out tenders for goods and services using Bank’s procedures;

50

e e e

e e

e

e

e

e

e e

e e e e e

Prepare tender documents; Evaluate bids; Undertake contract negotiations; Facilitate the issuance o f awards; Liaise with the Bank as part o f i t s coordinating role; Discuss detailed program activities with consultants, suppliers and businesses; Facilitate mobilization o f companies and consultants; Facilitate customs clearance where applicable; Oversee and monitor consultants and suppliers; Oversee the program implementation at a l l levels; Write procedures for receiving, verifying and paying bills o n time; Ensure the expedient payment o f consultants, suppliers and contractors; Prepare and submit progress reports in an expedient manner; Ensure that financial audits are conducted on time; Conduct the monitoring o f performance indicators; and Keep track o f program’s records, reports and information.

Responsibility o f ANACs’ Project Coordinators

18. leadership. As such, he/she will:

The Project Coordinator within each A N A C will be in charge o f the program’s

Be in charge o f daily activities; Plan, manage, monitor and coordinate the components o f these activities; Implement the program in l ine with the global plan o f operations and schedules of activities and report changes thereto; Monitor contractual compliance o f consultants, suppliers and contractors’ performances; and Ensure that a structured and consistent monitoring o f implementation progress exists, including quarterly and annual reports and performance indicators.

Program Steering Committee (SC)

19. ANACs:

The Bank has approved the following line-ups as proposed by Benin and Senegal’s

Senegal Chairman:

The ministry in charge o f c iv i l aviation or his representative.

Members: A representative o f the Directorate o f Economic Cooperation and Finance o f the Ministry o f Finance; A representative o f the airport police; Two representatives o f the Ministry o f the Armed Forces (Minist2re des Forces Arme‘es);

51

0

0

The General Secretary o f the High Authority o f the Leopold Sedar Senghor Airport (Haute Autorite' de 1 'Ae'roport Le'opold Se'dar Senghor, HAALSS) or his representative; The General Director o f the Airports o f Senegal (Ae'roports du Se'ne'gal, ADS) or his representative; The General Director of Meteorology o f Senegal or his representative; The person in charge of the aircraft Accident and Incidents Investigation Office (AIO), when the office i s created.

Benin Chairman: 0 The Deputy Minister o f Land Transport, Air Transport, and Public Works (Ministre

De'le'guk, auprBs du Pre'sident de la Re'publique, Charge' des Transports Terrestres, des Transports Ae'riens et des Travaux Publics (MDCTTTATP/PR)).

Members: 0 A representative o f the Ministry in charge o f Forcasting, Development and Monitoring

o f Public Action (Minist&-e charge' de la Prospective, du De'veloppement et de 1 'Evaluation de 1 'Action Publique - Direction Ge'ne'rale des Investissements et du Financement du De'veloppement ); A representative o f the Ministry o f Economy and Finance (Independent Amortization Fund : Caisse Autonome d 'Amortissements) A representative o f the Ministry o f Interior and Public Safety (Ministire de 1 'Inte'rieur et de la Se'curite' Publique); A representative o f the Ministry of National Defense (MinistBre de la De'fense Nationale); The Managing Director o f the National Civil Aviation Agency ; and The Director o f Planning and Forecasting o f MDCTTTATP/PR (provides the Secretariat o f the Steering Committee; Directeur de la Programmation et de la Prospective du MDCTTTATP/PR).

0

0

0

0

0

Responsibilities of the Program Steering Committee (SC)

20. 0 Providing support and resolving any issues that may hamper project implementation and

would require interventions from other ministries or departments o f the government; 0 Providing policy direction on matters relating to the project preparation and

implementation; 0 Carrying out risk assessments, particularly o f fiduciary risks, related to the program's

implementation, in l ine with the current ongoing dialogue on governance issues between the World Bank and the government; Assessing reports regarding program internal controls which will be delivered by the internal auditor o f the ANACS (Senegal) and the general inspections o f the Ministry of Transport (Benin); and Supervising and monitoring the program's performance indicators.

The SC in each country will be responsible for:

0

0

The SC will meet at least quarterly.

52

Responsibilities of General Directors, Ministers, and supervision Ministries

21. The DGs and heads o f the TIA will joint ly be responsible for:

0 Providing support and resolving any issues that may hamper the program’s implementation and would require interventions from other ministries or departments o f the government; Providing policy direction on matters relating to the program’s preparation and implementation; and

0 Carrying out risk assessments o f fiduciary risks related to the program’s implementation, in l ine with ongoing dialogue on governance issues between the World Bank and the government.

11. Good Governance Monitoring Plan

11.1. M a i n risks of corruption - inherent risks

22. established, are listed in the matrix below.

The main r isks o f corruption, as wel l as the mitigation measures that will be

Table 2: R i s k s and Mitigation Measures .of Corruption Situations vulnerable to

corruption

Lack o f administrative and financial autonomy (risk o f inappropriate interference in management) o f ANACs

Lack o f capacity and experience o f Fiduciary Agencies for procurement procedures o f the Bank (risk concerning procurement and use o f assets)

Senegal: lack o f traceability o f the collection and management o f safety charges

Risk

High

High

High

11.2. Control risks

Concerned entities

ANAC and Technical and financial Supervision Ministries

ANAC

ADS and technical supervision Ministry

Mitigation measures

(i) Strengthening fiduciary systems o f ANAC; (ii) Text reforms, notably to provide ANAC with legal personality; (iii) Securing ANACs’ resources through the use o f equity resources (mainly from aeronautical charges); and (iv) Monitoring ANACs’ budgets, their development and their use, particularly to strengthen the supervision o f safety and security. (i) Measures to strengthen the capacity o f these agencies through trainings (initiation and training on the job), recruitment o f experienced specialists (which wi l l also have an obligation to train these agencies’ staff); (ii) Implementation o f control mechanisms at various levels (control and internal audit, external audit as well as roles dedicated to the leaders o f these agencies, and to the Steering Committees).

Independent audit o f financial statements o f the new ADS.

23. In order to mitigate risks, many control mechanisms will be established. The main tool for governance control will be to give responsibility to a structure that will guarantee respect o f basic governance and transparency principles at the program level. These principles, when it comes to their fiduciary aspects, are listed in the Table below. In each country, a structure wil l be designated to oversee these aspects. In Senegal, the Steering

53

Index

Committee (SC) will be in charge o f producing a bi-annual report on governance issues independently f rom the TIAs. In Benin, it i s proposed that this role be assigned to the General Inspection Department, within the Ministry o f Transport.

24. governance monitoring:

In both countries, the following institutions are already in place for the purpose o f

Area

Intern a 1 control and

auditing

Public contracts

Fight against

corruption

External audit and

rendering o f annual

accounts

Table 3: Institutions for Governan Sen e e a 1

General Inspection Departments (Inspections Gknkrales Ministkrielles and Inspection Gknkrale d’Etat)

0 Internal auditors in autonomous structures 0 Existence o f a Procurement Regulation Agency

or ARMP Existence o f a Central Department for public contracts Procurement or DCMP within the Ministry o f Finance

0 Public Tenders Boards and Entities in charge o f the Control o f Public Tenders within ministries and public structures are operational

0 Existence o f Administrative and judiciary sanctions to infraction against the Procurement Code

CNLCC (National Board o f Fight against Corruption and Non-transparency) DREAT (Delegation for State reform and technical assistance), under the supervision o f the General Secretariat o f the Republic Presidency, and in charge o f the implementation o f the National Good Governance Program

0 A N T F

The recruitment o f an auditor and the implementation o f the recommendations o f the audit reports are carried out by the CAP o f the Ministry o f Economy and Finance

0 Audit Bench (judicial control)

: Monitoring Benin

General Inspection Departments (Inspections Gknkrales Ministkrielles and Inspection Gknkrale d ’Etat)

0 Internal auditors in autonomous structures 0 Review o f the Procurement Code

Existence and operation o f a National Public Tenders Regulation Board (CNRMP)

0 Existence o f a control entity: National Department o f Public Procurement (DNMP) within the Ministry o f Economy and Finance

0 Procurement Units (CPMP) in charge o f procurement and contracts control for contracts below the thresholds fixed in the Codes are operational within the ministry

0 Existence o f Administrative and judiciary sanctions to infraction against the Procurement Code

0 FONAC” and ALCRER16 which are civil society organizations, very active in the denunciations o f corruption cases Observatory for the Fight against Corruption (OLC)

0 Transparency International 0 Nouvel Ethique 0 ELAN

0 Audit Bench (judicial control) 0 Budgetary and financial Disciplinary Board (CDBF)

11.3. Action Plan

25. In order to reduce implementation risks, mitigate corruption risks, improve governance and sustain the program’s achievements beyond i t s term, measures related to the program’s fiduciary management will be strengthened (Le., see institutional arrangements in Annexes 7 and 8). These will come in addition to those measures specifically intended to mitigate the corruption risks identified above.

26. term, such as the following:

’’ FONAC = Front National des Organisations contre la Corruption l6 ALCRER = Association de Lune Contre l e Racisme, 1’Ethnocentrisme et l e RBgionalisme

Some controls are thus either already effective, or to be established in the very short

54

i)

i i)

The a priori control (by IDA and by various entities o f public procurement control) - as discussed above as well as in Annexes 7 and 8 o f this Project Assessment Document. During the implementation phase o f the program, the Bank, through i t s supervision missions, will especially ensure the respect o f governments’ commitments on improving governance; and Strengthening o f internal audits and controls (by ANACs and general inspection departments - see above the table about the roles distribution). Particular attention wi l l be given by the Bank’s team to the quality o f internal controls and audits to ensure that they are conducted according to international norms and standards. The review o f TOR and the corresponding reports are one o f the Bank’s means o f control.

27. In addition, the following measures are to be taken:

i) ii)

iii)

iv)

V I vi) vii) viii)

Strengthening o f the autonomy o f ANACs; In Senegal: establishment o f a monitoring system for the collection and the management o f safety charges; Improvement o f the flow o f information about the project and its goals (by ANAC and through dissemination to the public); Participation o f civil society representatives and users o f civil aviation and airports; Mitigation o f collusion risks; Mitigation o f forgery and fraud risks; Establishment o f a complaint handling system; and Creation o f a sanctions and remedies system.

a. Strengthening the autonomy of ANACs

28. The status o f each ANAC in both countries will be clarified through the updating o f existing texts, to ensure that they have real autonomy, both in administrative and financial terms, in accordance with ICAO’s recommendations. This approach i s intended to: (i) provide each ANAC with a legal personality; (ii) secure resources through the use o f user charges (mainly from aeronautical charges), and in particular avoid that ANACs depend on public budgets to carry out their mission; and (iii) monitor the evolution o f ANAC’s budgets and their use, in particular to ensure that the users’ fees collected are used to strengthen the supervision o f safety and security.

b. In Senegal: establishment of a monitoring system for the collection and the management of safety charges

29. The control o f the safety charges collection and management initially carried out by ASECNA, as manager o f the Dakar L.S.S. airport, and transferred to the Ae‘roports du Se‘ne‘gal (ADS) in 2008, i s listed among the commitments o f the Government o f Senegal within the framework o f the program’s implementation. Since no accounting o f these charges has previously been held, or at least disclosed, it i s now necessary that a recording o f these charges by an independent external auditor, recruited internationally, be

55

implemented in l ine with international accounting and financial rules using terms o f reference acceptable to the Bank.

c. Improvement of information diffusion regarding the program and i t s objectives

30. following:

In order to improve information dissemination, the main actions required are the

Fiduciary aspects

0 Disclose contracts awards ; 0

Make procurement information (plans, schedules, bidding documents, shortlists o f consultant, contracts awarded) available to the public promptly upon demand;

Carry out tenders openings publicly; Actively encourage representatives o f the c iv i l society groups to attend the public bid openings and other key procurement steps; and Give the possibility to al l the parties involved in the procurement to register off icial complaints related to the project.

3 1. In both countries, the requests for proposals and bidding documents are issued after advertising in the national press. The Procurement Law (in Senegal) also provides for public bid openings and appeals mechanisms.

Dissemination of performance indicators

32. In both countries, the ANACs will discuss the progress o f their program’s performance indicators with the community o f c iv i l aviation (airlines, service companies and administrations at airports), on a quarterly basis, to ensure proper monitoring o f these indicators by users. The ANACs will also inform these same structures o f the activities’ implementation progress. Performance indicators o f the project (see Annex 3) have the advantage o f measuring the improvement o f overall performance o f the ANACs, not just the physical implementation o f activities.,

d. Involvement o f civil society and users o f civil aviation and airports

33. To allow c iv i l society oversight, the main actions o f the project are to :

0

0

In relation to fiduciary issues: actively encourage representatives o f the c iv i l society groups to attend the public bid openings and other key procurement steps; In relation to the achievement o f the program’s development goals: share information with the media and c iv i l society groups on a regular basis in order to involve these parties in the monitoring process (see also above). Local and national committees o f airports security, which include stakeholders representatives and associations o f air transport operators, will be particularly targeted; and Carry out audits on previous procurements and thorough investigations in cases o f doubt on the competitive process.

56

e. Mitigation of collusion risks

34. actions o f the project are to:

This part essentially deals with fiduciary issues. To reduce collusion risks, the main

Appoint in each country fiduciary specialists who wil l support the management o f procurement o f goods and works for the project, and check the bids to detect any evidence o f collusion; Make procurement information (plans, schedules, bidding documents, shortlists o f consultants, contracts awarded, etc.) available to the public promptly upon request; Identify a l l the technical characteristics in the bidding documents to avoid pre-bid meetings; Advertise the bids with a standard agreed format and advertise them in a nationally circulated newspaper; Build capacity by providing guidelines and training on how to conduct clarifications/negotiations, as well as on monitoring contract implementation; and Benefit from the lessons learned during the f i rst phases o f the program in other countries regarding the most sensitive contracts, which allows the achievement o f harmonized technical specifications (particularly for the procurement o f equipment).

f. Mitigation of forgery and fraud risks

35. following :

To mitigate forgery and fraud risks, the main actions o f the project are the

Include a procurement specialist and financial management specialist within each implementing agency with fiduciary responsibilities, and build capacity in these fields in beneficiary structures which do not have fiduciary responsibility; Agree on a timeline for procurement decisions, to avoid procurement delays, and therefore reduce opportunities for corruption; Review regularly accounting reports including al l supporting documents (Le. travel report, receipts); Conduct third party audits which wil l include review o f procurement processes and results (end use checks, quality and quantity o f acquired goods/works/services, verification o f payments, price comparison between contract price and market price, etc.), preferably using available government structures; and Conduct training as needed to improve the capacity o f key personnel at a l l levels. Training will include, as necessary, aspects o f procurement, financial management, design, and supervision o f implementation.

Internal audits are also expected to be conducted.

g. Remedies

36. To implement remedy processes, the main actions o f the program are:

57

Establish in each PCU a mechanism to be in charge o f appeals, including keeping a record o f complaints and a method for tracking al l complaints received; Respond to al l claims within the time prescribed by contracts from the date o f receipt (most difficult action to achieve). This procedure already exists in Senegal within the framework o f the A M P , but it will have to be established in Benin in the project implementation manual; Ensuring the confidentiality o f informants identities; and Fol low the status o f investigations and submit to IDA reports on the measures taken.

h. Penalties and remedies

37. To implement a sanction and remedies process, the project wil l carry out actions similar to those undertaken within any World Bank Group funded activities. These are the following:

0 Establish a system o f remedial actions and sanctions for cases o f fraud, corruption, collusion and coercive practices. These may eventually result in the termination o f the relevant contract, possibly with additional penalties imposed (such as fines, blacklisting, etc.); Suspend or stop al l disbursements to any contract /location if cases o f corruption are not solved effectively; and Ensure the implementation o f decisions o f appealhemedies organ’s determined in the Public Procurement Code.

0

0

38. The parties shall ensure that the above mentioned sanctions and corrective measures are wel l known and understood by those responsible for the implementation o f the program, and by the public. Regarding the former ones, the Bank’s Team has already discussed these points with the FAs and the governments during the preparation phase o f the Program. As for the public, in particular users and stakeholders in the c iv i l aviation industry, their representatives were involved and informed o f the program’s various aspects, as wel l as of i t s risks, in order to raise their awareness and encourage them to keep monitoring the program carefully.

39. and the system o f governance: their implementation will simply have to be ensured.

In Senegal, these arrangements are already included in the public procurement code

58

Annex 7: Financial Management and Disbursement Arrangements

West and Central Africa Air Transport Safety & Security APL Program Phase 2-B

I. Executive Summary

1. The objective o f the Financial Management Assessments i s to determine whether each ANAC in Benin and Senegal have acceptable financial management arrangements in place to take on the program’s fiduciary responsibility. These arrangements include each agency’s accounting system and reporting, auditing, and internal controls. Each implementing unit financial management arrangement i s acceptable if it: (i) i s capable o f recording correctly all transactions and activities; (ii) supports the preparation o f regular and reliable financial statements; (iii) safeguards i ts assets, and (iv) i s subjected to a satisfactory auditing process. The financial management (FM) assessments o f the Benin and Senegal ANACs were carried out in accordance with the Financial Management Practices Manual issued by the Financial Management Sector Board on November 3, 2005. The conclusions o f the assessment are summarized in the table below:

Table 1: Conchs Benin

Financial management arrangements put in place by the ANAC meet the Bank’s minimum financial management requirements under OPh3P10.02. Therefore, the risk rating for the ANAC i s moderate.

ins from FM Assessment

Financial management arrangements have an overall moderate risk rating which satisfies the Bank’s minimum requirements under OPh3P 10.02

Senegal

59

11. Country Issues

Country

Benin

Senegal

Issues The government’s policy framework for Budget Management (Gestion Budgetaire AxCe sur les Resultats) i s based on the 2005 CFAA17 and the recent 2008 PEFA’* (Public Expenditure and Financial Accountability) assessment. Risks remain in the following areas: - Poor accounting recording and reporting system. Public accounts are generally incomplete and delayed; - Control mechanism. Ex-post controls are dncoordinated and include several units working independently, external audits are delayed; and - Surge in the use o f expenses following exceptional procedures. A PEFA exercise has been undertaken in 2007 and the report concluded that although some improvements in PFM reform implementation since the 2003 CFAA, key risks and challenges remains in area such as (i) effectiveness o f the internal audit system by the Supreme Audit Institution (Cows des Comptes); (ii) reliability o f data for monitoring the stock of arrears; and (iii) addressing the backlog of State accounts.

Mitigating measures Since May 2006, the government has taken strong measures to address these issues. A decree regulating internal audit has been adopted and the use of exceptional procedures has been strictly limited. The issue regarding delay in production of accounts i s being resolved with the future recruitment of additional staff and the deployment of accounting software to the sub-national level. Concerning external audits, discussions are in progress with the government to improve the working environment o f the chamber o f account.

The government has given priority to the improvement in these areas as well as local governance finance reforms. A Multi-Donor Trust Fund (MDTF) administrated by the Bank was set up to follow up the implementation o f the reforms. The GoS i s committed to conduct the PFM reform through the Creation o f a specific body - PFM Reform Steering Committee’s role i s to: (i) coordinate the reforms to be undertaken; (ii) harmonize Government actions; (iii) monitor the implementation of the action plan; and (iv) hold different actors accountable for DroQress.

I t i s an updated version o f the 200 1 CFAA The recent has just been completed November 2007

17

18

60

111. Fiduciary R i s k s and Mitigation Measures

Risk Rating

Benin

Risk Residual Risk Rating Risk Mitigation Measure

Inherent Risks:

S

Country: Poor governance/ Corruption/Weak internal control environmentDelay in the preparation and audit o f sate accounts.

Country issues section. Training will be provided to strengthen the ANAC staff capacity.

M

Implementing Entity: ANAC has no experience in the implementation o f a bank financed project. Project: ANAC FM staff i s qualified but has never executed a World Bank

M

financed project. Control Risks: Budgeting Accounting

I I M

Internal Control Funds Flow: ANAC i s not familiar with the World Bank FM and disbursement procedures. Difficulties in the timely submission o f acceptable Withdrawal Application (WA)/IFR may delay funds mobilization.. Internal Audit

With the implementation o f the audit action plan agreed during February 2008 FM mission, the delay will be erased by the end of the first quarter o f 2009. ANAC FM staff will be trained on the World Bank FM procedures and IFR. The comments provided during the

their quality. review of the IFR will help improve

External Audit: ANAC 2005 and 2006 audit reports not yet finalized. ANAC audit reports likely to be submitted late. M

M

M M

Reporting and Monitoring: Delays in the submission o f agreed IFR as the ANAC i s not familiar with the IDA FM requirements Information System Overall Risk:

S

The new government has taken strong measures for fighting against corruption. Issues relative to internal control, reporting, auditing are being addressed as mentioned above in the

S

S capacity.

M I I M M I I M M

S

M ANAC FM staff will be trained by the FM and disbursement specialists to be familiar with the Bank FM, reporting and disbursement procedures prior and after the program effectiveness.

M

S

S

M S

H: High S: Substantial M: Moderate L: Low

61

R& Inherent Risks: Country: PEFA exercise revealed unresolved weaknesses in PFM system.

Risk Rating Risk Mitigation Measure

S The CFAA and PEFA action plan i s under implementation and the government has created an Executive S

M

Implementing Entity: While basic legal and institutional framework

be hampered by political interference. Project: Specific sector with no experience of Bank’s projects.

i s in place, implementation may

Control R i s k s : Budgeting:

Secretariat to follow up. The Financing Agreement (FA) and procedures manual will provide an appropriate framework for the Program implementation.

S

The simple design o f the Program and the Program Implementation Manual (PIM) will help ANACS’s qualified staff to implement effectively the Program under Bank tight supervision.

Annual work plans will be prepared and

S

S

submitted to the Bank by November 30 of each year.

Accounting: Local staff has no IDA project experience.

Internal Control: The internal

Recruitment of an experienced and qualified Director of Administration and Finance (DAF) to support the accounting team. The existing computerized information system will be tailored to host the Program. The Administrative and Financial

S

S

Funds Flow: N o experience in disbursement procedures may delay replenishment o f funds.

procedures Manual will be set out with a clear description of the Approval and authorization processes. An internal Auditor will be recruited. A Designated Account will be opened by DDI (Direction de la Dette et de I ’Investissement) for the purpose o f the Program. Training of staff on Bank’s FM, procurement and disbursement procedures, will be provided.

S

Residual Risk Rating

M

S

M

M

M

L

M

M

M

62

External Audit: Recruitment o f a S

S

S

S

Legal Auditor (Commissaire aux Comptes) may not be transparent Reporting and Monitoring: Delays in the submission o f agreed IFR since ANAC i s not familiar with the IDA FM requirements Information System: The ANACS Information system may not be used efficiently or may not be able to provide acceptable IFR and other relevant reports

An external Auditor with experience and qualifications satisfactory to the Bank will be recruited The Bank will assist ANACS in defining the format and producing the quarterly reports (IFR)

The ANACS FMS will be trained to be familiar with the IDA FM reporting requirements. Agreement on the IFR format and content will be reached prior the program negotiation and will allow the ANACS to update its information system if needed

Overall ~ i s k : H - High S - Substantial

Country

Benin

Senegal

Strengths Weaknesses Qualified FM staff. 0 No experience in the implementation o f Computerized accounting and the Bank financed project. financial management information system. accounts.

0 Accounting and financial manual. 0 Sound budgetary monitoring process 0 Lack o f qualified and experienced FM

in place conducted by a qualified financial controller. 0 N o experience implementation of Bank

Manual that need an improvement. Inadequate positioning of FM function in the organization.

Delay for the audit o f the ANAC

staff.

Administrative and Financial procedures. 0

M

Country

M

Implementing agency Status

M

Benin

Senegal

M

ANAC will be the agency responsible for the overall program oversight and implementation. It will handle both technical and fiduciary responsibilities. ANAC will be the agency responsible for the overall program oversight and implementation. It will handle both technical and fiduciary responsibilities.

Existing body

Existing body

IV. Institutional and Implementation Arrangements

63

V. Budgeting Arrangements

Country

Benin

Status The ANAC budget including the program activities i s undertaken centrally by the financial department in consultation and with extensive detailed input by the respective implementing departments and adopted by the steering committee before the beginning o f the year. Program activities will be integrated in the ANAC budget and submitted to the IDA’S objection. Budget i s adopted by the SC before the beginning o f the year after internal consultation with implementing department. The financial controller i s in charge of budget monitoring.

VI. Internal Controls and Audit

Country

Benin

Senegal

2. Internal control comprises the whole systems o f control, financial or otherwise, established by the ANAC in order to (i) carry out the budget activities in an orderly and efficient manner; (ii) ensure adherence to policies and procedures; (iii) safeguard the assets; and (iv) secure as far as possible the completeness and accuracy o f the financial and other records.

Status There i s no internal audit department within ANAC. However with the segregation of duties and responsibilities, the ANAC internal control environment i s found to be adequate. Under this project, the General Inspection department within the Ministry in charge o f Transport carries out Internal Audit function with specific TOR. The steering committee approved the principle o f recruitment o f an Internal Auditor. The Bank wil l pay attention to the qualification, experience and TOR of the Internal Auditor.

VII. External Audit

3. ANACs financial statements will be audited by external independent auditors. The audit scope wi l l be extended and cover the activities financed under the program. Single opinion on the Annual Financial Statements in compliance with International Standards on Auditing (ISAs), will be required for each implementing agency. The auditors will be required to prepare a Management Letter giving observations and comments, and providing recommendations to improve the internal control. The ANACs audit reports which include the program activities will be submitted to IDA within six months o f the end o f the fiscal year.

VIII. Reporting and Monitoring

4. Quarterly IFRs derived from the implementing entities financial management information system will be prepared and include sources and uses o f funds by component. I t wi l l also include a comparison o f budgeted and actual program expenditures (commitment and disbursement) to date and for the quarter.

5. The implementing entities will produce annual financial statements, and these statements wi l l comply with International Accounting Standards (IAS) and World Bank requirements.

64

6. These financial statements 19will be comprised of:

0

A statement o f commitments;

0

A balance sheet reflecting the assets, liabilities and funding o f the program based on the cash; A statement o f sources and uses o f funds;

The accounting policies adopted and explanatory notes; and A management assertion that program funds have been expended for the intended purposes as specified in the relevant financing agreements.

7. IFR and send copy to the Bank within 45 days o f the end o f each quarter.

ANACs o f Senegal and Benin wi l l be responsible for preparing and submitting the

IX. Information Systems

8. A program-specific financial management system will be customized in the existing accounting software. The program chart o f accounts will accommodate the proposed program to capture sources and uses o f funds, assets and liabilities in sufficient detail. The system should integrate the budgeting, operating, and accounting applications to facilitate monitoring and reporting.

X. Accounting Policies and Procedures

9. Program accounts wi l l follow policies already in place with ANACs operations. Accounts wi l l be maintained on a cash basis, augmented with appropriate records and procedures to track commitments and to safeguard assets. Annual financial statements will be prepared in accordance with IAS.

10. statements, including information on the following:

The chart o f accounts will facilitate the preparation o f quarterly and annual financial

Total program expenditures; and Total program commitment.

1 1. Accounting and control procedures are documented in the Administrative, Accounting and Financial Manual.

l 9 I t should be noted that the program financial statements should be all inclusive and cover all sources and uses of funds and not only those provided through IDA funding. I t thus reflects al l program activities, financing, and expenditures, including funds from other development partners.

65

XI. Staffing

Country

Benin

Senegal

Staff in charge of the program FM matters

ANAC director o f administration and finance, chief financial and accounting services and accounting manager. All o f them are qualified but have never managed IDA financed project and are not familiar with the World bank FM procedures.

ANACS financial controller in charge of budget monitoring and a financial accountant.

Action

Bank FMS will provide training. The ANAC financial management and accounting staffs will contact other IDA financed projects for training to be able to be familiar with the Bank's FM and disbursement procedures and be able to prepared IFR. There i s a need o f recruiting a qualified director o f administration and finance (DAF) familiar with the Bank procedures to support the FM team. The Bank FMS will also urovide guidance and suuuort.

XII. Flow of Funds

12. Disbursements under the IDA credit may be made according to the agreed categories o f expenditures. At effectiveness, the credit may be disbursed fol lowing the transaction based disbursement. The conversion to report-based disbursements may be envisaged when the implementing entities have capacity to produce acceptable IFRs.

Country

Benin

Senegal

Type of Accounts and Currency Transaction Account (TA) at the Central bank (BCEAO) Designated Account (DA) in CFAF at ECOBANK.

0

0

0 Advance: CFAF 375,000,000

0 Designated account at Commercial

0 Allocation o f CFAF 300,000,000 Bank.

Status 0 Funds will flow from the credit account

through the Transaction Account (opened at the BCEAO and managed by the Independent Amortization Fund: Caisse Autonome d Ymortissement: CAA). The associated Designated Account will be opened at ECOBANK. Withdrawal Applications (WA) to be sent to IDA will be prepared by ANAC and signed by the CAA. Funds will flow from the IDA credit account to the designated account to be opened by DDI (Direction de la Dette et de 1 'Investissement) and managed by ANACS.

0

0

66

Figure 1: Flow of Funds Flow o f frtndt Betlit1

/I I (opened at ECOBANK)

managed by ANAC

- Fund.. , Reyoi ts , goods. etr

Flow of funds. Senegal .- - Funds

Reports. goods. etc.

Note: CA Caisse Autonome di lmort issement DP Direct Payment DDI WA Withdrawal Application IFR Interim un-audited Financial Report BCEAO Banque Centrale des Etats de 1'Afiique de 1'Ouest

Direct ion de la Dette et de 1 'Investissement

67

XIII. Retroactive financing

FY Annual Cumulative

13. The grant in Benin and the credit in Senegal wi l l provide for retroactive financing o f up to five percent o f each proposed amount, to finance expenditures, which were incurred before grant and credit approval and after September 1,2008.

2009 2010 2011 2012 2013 0.50 2.21 2.30 1.20 0.79 0.50 2.71 5.01 6.21 7.00

XIV. Disbursement Arrangements

The following table describes disbursement schedules per country:

Estimated disbursements Benin (Bank FY/US$m) FY I 2009 I 2010 I 2011 I 2012 I 2013

I I . I I

Annual I 0.50 I 2.79 I 2.70 I 1.80 I 1.21 Cumulative I 0.50 I 3.29 I 5.99 I 7.79 I 9.0

Expected effectiveness date: June 30, 2009 Expected closing date: December 3 1 , 2012

The disbursement amounts per country and per category are stated as follows:

Benin Amount of credit allocated 1

I

1. Civil Works. Goods and Consultant Services I 8.42 I

(Expressed in US$xlOOO) Category

I

I Amount o f credit Allocated I ! (Expressed in

I 2. Operating Costs 0.10 I

Senegal

Category -- -~ ' 1. Civil Works, Goods and Consultant Services 6.62

3. Unallocated Total

, 0.28 7.00

68

XV. Use of Statement of Expenditure

Country

Benin

Senegal

14. The thresholds for which expenses will be paid or reimbursed on the basis o f statements o f expenditure (SOE) will be specified in disbursements letters issued in each country. As an indication, these thresholds are:

SOE Less than: US$500,000 for works US$500,000 for goods US$200,000 for consulting firms US$50,000 for individual consultants Less than: US$500,000 for works US$500,000 for goods US$200,000 for consulting firms US$50,000 for individual consultants

Activity IFR Audit report review Transactions reviews, participation in the SPN mission Training / capacity building

XVI. Supervision Plan

Frequency Deliverable Quarterly Review letter filed in I R I S Annually Review letter filed in I R I S Bi-annual Aide memoire, FM rating

for ISR Annually Re p ort

15. Supervision activities will include review o f IFRs; review o f annual audited financial statements and management letter as well as timely follow-up o f issues arising; participation in program supervision missions as appropriate; and updating the FM rating in the Implementation Status Reports (ISR).

16. The intensity o f on-site FM visits will be based on the assessed FM risk for ANACs. However, given the fact the ANACs o f Benin and Senegal have never implemented in the past a Bank’s financed project, FM supervision will be intense the f i rst year o f the program and wil l focus on theses agencies FM capacity building.

XVII. Financial Management Action Plan

17. i t s financial management system.

The action plan below indicates the actions to be taken for the program to strengthen

69

Updating o f the Administrative, Financial Accounting Manual Recruitment of an Accountant Amointment o f external auditor

completion date body

ANAC By effectiveness

By effectiveness ANAC Bv effectiveness ANAC

Action to be taken

Recruitment o f a qualified Director of Finance to support existing FM team Update the Financial and Administrative Manual Recruitment o f an Independent External Auditor for the Audit of 2008 and 2009 Financial Statements and the collection and management o f the security fee

70

Expected Responsible completion date Body

ANACS By effectiveness

By effectiveness ANACS

By effectiveness CAPJANACS

Annex 8: Procurement Arrangements

West and Central Africa Air Transport Safety & Security Program Phase 2-B

I. General

Country Procurement context

1. Benin: A Country Procurement Assessment Report (CPAR), assessing the national procurement system, was carried out in April 1999 for Benin and an action plan for a procurement system reform was developed in November 2002, during a national workshop. This action plan supports the modernization o f the regulatory and institutional framework, and i t s objectives are to: (i) improve the management o f public contracts; (ii) modernize public procurement procedures; (iii) strengthen capacities; (iv) establish an independent control system; and (v) adopt anti-corruption measures. In addition, the plan provides for the gradual empowerment o f the decentralized procurement entities; the definition o f a strategic framework for capacity building in procurement; and the updating o f tools such as standard bidding documents and manual for procurement procedures to ensure effective use o f the procurement code.

2. Implementation o f the new institutional framework has translated into the creation o f a: (i) National Commission o f Public Procurement Regulation (CNRMP); entity independent o f procurement transactions and comprising the public and private sectors and civil society, and responsible for policy, audit o f public procurement and dealing with complaints from bidders; (ii) National Directorate for Public Procurement (DNMP) responsible for controlling the quality o f procurement transactions; and (iii) Public Procurement Units (CPMP) at Ministries level. The government i s harmonizing the legal and institutional procurement framework with the UEMOA Procurement Directives adopted by i t s Council o f Ministers in December 2005. To that end, a new procurement law has been sent to Parliament for adoption.

3. Senegal: The procurement process follows the Senegalese procurement code which i s regulated by the Decree n"2007-545 signed o f April 25, 2007. This code was drafted during the period 2005-2006 with IDA assistance, and it mainly comes as an amendment o f the 2002 procurement code which had major deviation with Bank's rules. In general, the current country's procurement procedures do not conflict with the Bank's Guidelines. N o special permits or licenses need to be specified in the credit documents, since Senegal procurement practices allow IDA procedures to take precedence over any contrary local regulation or practice. In addition, the code has established an independent regulatory agency which i s also in charge o f auditing procurement activities.

4. The new Public Procurement code i s already approved and under application and has introduced the following improvements: (i) a Public Procurement Directorate was created in 2007 (decree No 2007-547 dated April 25, 2007) for controlling procurement transactions o f all public contracting authority and (ii) a Public Procurement Regulatory Authority (Autorite' de Rkgulation des Marche's Publics - A M P ) was set up in 2007 (decree no 2007-546 dated April 25, 2007) for supervising the whole procurement system

71

including policy formulation, handling complaints, supervising procurement audits and implementing the capacity building program on procurement. These two entities are now operational. Standard bidding documents are s t i l l under preparation (Le., main national bidding documents are in the process o f validation).

Applicable procurement policies and procedures

5. All countries: Procurement for the proposed project would be carried out in accordance with the World Bank’s “Guidelines: Procurement under IBRD Loans and IDA Credits” dated May 2004 revised October 2006; and “Guidelines: Selection and Employment o f Consultants by World Bank Borrowers” dated May 2004 revised October 2006, and the provisions stipulated in the Financing Agreements. The various items under different expenditure categories are described in general below. For each contract to be financed by the credits, 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 Borrowers and the Bank in the respective Procurement Plans. The Procurement Plans will be updated at least annually or as required to reflect the actual project implementation needs and improvements in institutional capacity.

6. National Competitive Bidding (NCB) procedures may be used provided that: (i) bids are advertised in national newspapers with wide circulation; (ii) bid evaluation, bidder qualification and award criteria are specified clearly in the bidding documents; (iii) bidders are given adequate response time (minimum four weeks) to prepare and submit bids; (iv) bids are awarded to the lowest evaluated bidder proven this bidder i s qualified; (v) eligible bidders, including foreign bidders, are not precluded from participating; and (vi) no preference margin i s granted to domestic suppliers.

Procurement Documents

7. All countries: The procurement will be carried out using the Bank’s Standard Bidding Documents or Standard Request for Proposal (RFP) respectively for all ICB for goods and recruitment o f consultants. For NCB, the borrower shall submit a sample form of bidding documents to the Bank prior review and will use this type o f document throughout the project once agreed upon. The Sample Form o f Evaluation Reports developed by the Bank, wi l l be used.

Advertising procedures

8. All countries: General Procurement Notice (GPN), Specific Procurement Notices (SPN), Requests for Expression o f Interest and results o f the evaluation and contracts award should be published in accordance with advertising provisions in the following guidelines: “Guidelines: Procurement under IBRD Loans and IDA Credits ” dated May 2004 revised October 2006; and “Guidelines: Selection and Employment of Consultants by World Bank Borrowers” dated May 2004, revised October 2006. The borrower wi l l keep a l i s t o f received answers from potential bidders interested in the contracts.

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11. Procurement methods

9. All countries: For each contract to be financed by the credits, 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 Borrowers and the Bank in the respective Procurement Plans. The different types o f procurement activities and total costs o f contracts in the respective countries are as follows:

Training, Workshops, Study Tours, and Conferences: The training (including training material and support), workshops, conference attendance and study tours, will be carried out on the basis o f approved annual training and similar activities plan. A detailed training or workshop plan giving nature o f training/workshop, number o f trainees/participants, duration, staff months, timing and estimated cost will be submitted to IDA for review and approval prior to initiating the process. The appropriate methods o f selection will be derived from the detailed schedule. After the training, the beneficiaries will be requested to submit a brief report indicating what ski l l have been acquired and how these skills will contribute to enhance his performance and contribute to the attainment o f the project objective. Operational Costs: Operating costs financed by the project are incremental expenses, including office supplies, vehicles operation and maintenance, maintenance o f equipment, communication costs, rental expenses, utilities expenses, consumables, transport and accommodation, per diem, supervision costs and salaries o f locally contracted staff. They will be procured using the procurement procedures specified in the project’s Administrative, Financial and Accounting Manual acceptable to the Bank.

0

10. Benin: 0 Procurement of Goods: The total cost o f contracts o f Goods to be financed by IDA, i s

estimated at US$6 mi l l ion equivalent. The items would include: office equipments, furniture, information system equipments, detection equipments, vehicles, and office supplies. For shopping, the project procurement officer will keep a register o f suppliers updated at least every six months. Selection of Consultants: The project wil l finance Consultant Services such as studies, surveys, financial audits, trainers and workshops facilitators; the total cost o f consultant services to be financed by IDA i s estimated at US$0.93 million.

0

11. Senegal: 0 Procurement of Goods: Goods procured under this project would include but are not

limited to the acquisition o f computer hardware, office supplies, equipment for ANACS’s medical center designed, to perform basic medical checks on air crews for flight licences award and renewal purposes (e.g., electro cardiogram, pulmonary x-rays), airport security equipment and vehicles. The total cost o f goods to be financed by IDA i s estimated at US$2.2 mil l ion. Selection of Consultants: Activities needing selection o f consultants include, but are not limited to, the update o f the civil aviation Technical Regulations, the review o f the institutional framework for c iv i l aviation and the use o f the aviation fees, the translation in English o f the C iv i l Aviat ion Code and i t s regulations. The total cost o f consultant services to be financed by IDA is estimated at US$1.88 million.

0

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111. Procurement Implementation Arrangements and Assessment of Capacity to implement procurement

12. All countries: Each Borrower, through i t s implementation agency, will be responsible for the implementation o f procurement process relatives to the project activities identified for the concerned country. The procurement implementation arrangements and assessment o f capacity to implement procurement in the respective countries i s described below.

13. Benin: The procurement will be carried by ANAC. Procurement activities will be carried out by the Procurement officer who will be nominated by the agency. I t has been agreed that the Procurement officer shall be an Engineer. The Procurement officer will supervise and coordinate the project procurement activities that will be implemented by ANAC. He/She will work closely with the Procurement Unit (“Cellule de Passation des Marche‘s Publics ”) o f the Ministry in charge o f Civ i l Aviation. The Procurement Unit will be used only for prior review o f procurement documents and processes until ANAC’s own Procurement Unit has been created, as agreed with Government. This Procurement Unit i s expected to be operational before the project’s mid-term review. The Procurement Unit o f the Ministry o f Transport shall designate a focal point for project.

14. The project procurement officer will be responsible fo r the coordination o f al l procurement activities, including the following: (i) preparation and updating o f the procurement plans (ii) preparation, finalization and launching o f the Requests for Proposal and bidding documents; (iii) drafting o f minutes o f opening o f the bids/proposal and preparation o f the evaluation reports; (iv) submitting o f procurement documents (TORS, RFP, bidding documents, evaluation reports, contracts, etc.) to the Bank when prior review i s required; (v) preparing the contracts, and overseeing the payments to contractors; and (vi) drafting o f procurement progress report. All project procurement prior review documents should be submitted to IDA through the Project Coordination Unit. The procurement officer will oversee and manage the project’s procurement activities and ensure that these activities are proceeding in a timely manner and according to project’s objectives.

15. For particular or specialized procurement, the project may require the services o f a procurement consultant for bidding documents preparation and support in bids or proposal evaluations. In this case, the consultant should work closely with the procurement officer to strength his capacity.

16. An assessment o f the capacity o f A N A C to execute procurement was conducted by the Procurement Specialist based in the Benin Country Office. The assessment reviewed the organizational structure for implementing the project and the interaction between the project’s staff that will be responsible for procurement (procurement officer) and the project’s relevant Ministry (Ministry o f Transport). The assessment showed that neither A N A C nor the Ministry in charge o f Civ i l Aviation procurement unit were familiar with Bank’s procurement procedures. However, it was established that staff qualifications in each entity was sufficient to enable them to manage the project’s procurement activities, assuming they receive proper training.

74

17. Most o f the issues/ r isks concerning project procurement activities management were identified during this assessment. They include: (i) lack, at A N A C level, o f procurement staff that i s knowledgeable and experienced in Bank procurement procedures; (ii) delays in procurement review by National Directorate for Public Procurement (DNMP); (iii) lack o f standard bidding documents; and (iv) confusion within ANAC’s departments regarding procurement responsibilities (Le., between DISS and the Directorate in charge o f Financial management). Accordingly, the overall project risk for procurement was rated as Medium.

Submit to the Bank the revised procurement plan o f the f i rst 18 months. Actualize the procurement section o f the ODerations and Procedures Manual.

18. The measures agreed upon to strengthen the procurement management capacity are: (i) specific training on World Bank’s procurement procedures (goods and consultants services) for the nominated procurement officer, (ii) the use o f procurement consultant for specialized Procurement, (iii) the review o f the procurement section o f ANAC’s Administrative, Financial and Accounting Manual, and (iv) the use o f Bank standards’ documents for I C B and RFP.

Completed Project coordination

Before effectiveness

o f A N A C

A N A C

Table 1: Summary of the project preparation action plan

Procurement training for the project procurement officer and for the focal point o f project procurement documents review at the nrocurement unit o f the Ministrv o f Transnort.

I Task I Completion I Responsibility

Six month fol lowing effectiveness

Project coordination o f A N A C

I Nominate the project procurement officer. I Completed I A N A C I

19. Senegal: Procurement activities will be carried out by ANACS through a coordination unit. Accordingly, for now, there i s neither a procurement unit nor a procurement specialist within ANACS. ANACS procurement activities are currently conducted by the. staff responsible for logistics. ANACS reports directly to the Ministry in charge o f air transport and has not yet clarified i t s autonomy in the management o f its procurement activities. ANACS has been created by the law referenced 2002-31 signed on December 24, 2002. Based on the past experience in the PST2, ANACS has a capacity for procurement reporting but there i s no certainty, however, that the same staff will be available during the project implementation.

20. An assessment o f the capacity o f the project coordination unit to carry-out procurement for the project was carried out o n April 8th, 2008 by the Bank procurement specialist based in the Dakar Country Office. The assessment reviewed the organizational structure o f ANACS , interaction between staff members responsible for procurement and their level o f autonomy with regard to the Ministry’s office in terms o f procurement processes. The assessment also put an emphasis on the interaction with the structures benefiting from support and in charge o f technical implementation o f activities within the

75

project. The Project Coordination Unit staff is currently only composed o f a main coordinator, an expert on security issues, and a financial management specialist responsible for the management o f administrative and financial affairs. Accordingly, the overall project risk for procurement was rated as high.

21. The major procurement r isks are: (i) possible delays and ii) possible interference in procurement decisions including contract award and execution. It i s recommended that the responsibility o f each entity should be clearly defined in the related documents.

22. Mitigation of the risks linked to procurement: Since there i s no staff in place in the coordination unit to handle procurement activities, a qualified procurement specialist will be hired in a consultant position and hisher role will consist in supporting the project coordination unit within ANACS. H e or she will be positioned in the coordination unit and will also play an advisory role whenever necessary. He/She will be responsible for the preparation and evaluation o f the bidding documents as wel l as the fol low up o f the contract award process. For each project’s component, a procurement assistant will also be hired while existing staff involved in procurement activities will benefit from a capacity building program. This training will be specifically focused on Bank’s procedures and national procurement rules. Recruitment o f a qualified procurement specialist will be a condition of effectiveness.

IV. Procurement Plan

23. All countries: Each borrower has developed a draft Procurement Plan (PP) which provides the procurement methods for each contract. The plan covers the first eighteen months o f program implementation. This plan will be available at the Implementing Agency. I t will also be available in the project’s database and in the Bank’s external website. The Procurement Plan will be updated in agreement with the Bank at least annually in conjunction with an updated project annual work program or to reflect an action plan fol lowing improvements in institutional capacity. All procurement activities will be carried out in accordance with the original or formally updated agreed PP. The consolidated procurement plan is displayed below.

24. Goods and non-consulting services:

Prior Review Threshold: Procurement Decisions subject to Prior Review by the Bank as stated in Appendix 1 to the Guidelines for Procurement will be determined by the respective procurement plans.

76

1.

2.

Procurement method

ICB andLIB

NCB

I I I Methods can be applied for

Method Threshold (US$)

500,000

Comments Prior Review Threshold (US%)'*' Benin Senegal

any amount, but they are mandatory if the estimated 500,000 I 500,000 I

<500,000

<25,000 --

I cost is> US$ SOO,OOO.

_ _ The first two

The f i s t two

The first two

The f i rs t two contracts contracts

contracts contracts _ _

A l l contracts --

(*) The prior review is required for the first two contracts of each procurement method whatever the amount is.

Procurement Packages with Methods and Time Schedule:

1 NO 1 yes i 05/29/09 I _ _ 2 Security equipment (X I

Ray, scanner, etc.). j 1 1,532,500 ~ ICB ~ No No ~ yes ~ 12/29/08 ~ 3 lots

Video surveillance systems for the airport field. i

~ 750,000 ~

ICB ~ No 3 N o yes 06/13/10

&: ~ 1:: ~ 19/12/08

6/26/10 ~ -- ~ 317,500 ~ 112 ~ :; SAR Equipments SAR: beacon, radio, GPS, talkie walkie, VHF equipment.

Vehicles and motorcycles. 220,000

4

5

6 200,000 ICB 1 No Restricted area access control system. Emergency center equipments + furniture for the training center and the PCU. Telecommunication

200,000 ~ ICB No 7

1 I I I

1 150,000 network for ANAC/ASECNA/Airport NCB ~ No No yes 1 07/09/09 j

I

N o yes 04/30/09

N o yes 12/20/08

8 I i

55,000 I NCB I

interconnexion. Electronic and I T office equipment (tel., fax, telex), 9 didactic equipments. ICAO Security training equipment kit. ~ 50,000 ~ DC ~ No 10

77

i Estimated 1 E~~~~~ ' Procurement qualifi- cation I preference Prior

(yeslno) ~ (yes/no) ing Date

Comments Bids 1 Domestic

i Method Review opening/clos Description

. _ - 11 / ICAO technical library. / 25,000 1 DC 1 No 1 N o - 1 yes 1 12/20/08 I

15,000 1 Shopping 1 No N o yes 1 11/29/08 ~

IT equipment fir I I

Senc v- Video surveillance

systems for the airport field. Aeronautical medical equipment for :(i) radiography,(ii) biology analysis,(iii) electrocardiogram,( iv)

N o ~ Yes 02/26/09 750,000 ~ ICB i 1 I

I I

6oo'ooo ~ ICB 2 N o 0 1 /30/09 Yes

N o

No

No

Yes

ophthalmology, etc.. . Vehicles for : (i) airport

--____..

patrolling, with VHF(x4); (ii)SAR with VHF,UHF,HF, Radiogonometry and rotating lights; (iii)

Equipment for the Accident and Incident Investigation Office. communication equipment: VHF(x15)/ Talkie Walkiel radio relay. Inspection and didactic equipments and ICAO Security training equipments kit. Crisis management training. Electronic and IT equipments: (lotl) I T equipments (computers, printers, scanners); (lot2) Furniture and office supplies; (lot3) other I T

Inspection. . .

3 N o

No

No

N o

12/15/08 387,500 NCB

1 - - . . . . . . . . .

200,000 NCB I

0911 0109

12/15/08 I

859000 I NCB

6

- 7

50,000 1 DC I i

121 10108

N.A.

10/30/08

I 50,000 j Shopping

i

50,000 I Shopping 8 N o I No

- . .._ -.

N o NO - l.-_l_ll- s y d i e s . Equipments for SAR trainings. Equipments for the SAR

- I__

9 20,000 1 Shopping N.A.

coirdination center (office supplies and furniture, I T and electronic equipments, communication equipments).

I I

17,500 ~ Shopping I

1 I

N o No 10 1211 1/08

78

25. Consultants :

~

Threshold for Bank prior

Benin Senegal review(US$)(*) Comments Selection Threshold for each

Methods method(US$)

This method can be

amount. 1. QCB S -- 200,000 200,000 used for any contract

Prior Review Threshold: Selection decisions requiring prior review by the Bank as described in the Bank (( Guidelines: Selection and Employment of Consultants by the World Bank Borrowers D, Exhibit 1, will be determined in the procurement plans o f each country.

2. SBCQ Less than N /A N /A -- 100,000 Applicable especially

3.

4*

LCS _ _ 200,000 200,000 foraudits and insurance

The first The procurement plans

contracts Drior review.

contracts.

Individual _ _ two The first two can determine other Consultants contracts

5 .

(*)Prior review is mandatory for the f irst two contracts using each selection method, whatever their amount is. Prior review is also required for: (i) all Consultant Terms of Reference, and (ii) detailed budget of capacity strengthening activities, with estimated cost superior or equal to the equivalent of US$S, 000.

_- -- A l l contracts. Direct Contracting

79

Consultant's contracts with their selection methods and planning:

I I Expected

Estimated Cost 1 Selection Prior Review by ~ Proposals Submission Comments 1 (US%) I Method ' the Bank

Ref' No. Description of Assignment

L I Date

1

2

3

4

-

5 ___

6

-

7

__

8

9

10

11

12

-

13

14

Benin - - I -- . __ . . - -

up safety and 200,000 , QCBS ~ Yes 1 06/30/10

Yes i 11/15/08 100,000

100,000 1 IC Yes i 12/01/08

security audits I I i

1

Recruitment o f a Procurement Specialist Recruitment o f an Accountant/ Finance Assistant I Independent financial Audit ~

I

I i

LCS j Yes i 12/13/08 financier o f the project accounts 1 loo,ooo 1 the ANAC's financial statements 1 I I

I

New regulation (2009-201 Code 1) edition and technical and I 1 100,000 I IC ~~ I Yes 06/30/10

I

+ - +--- - dissemination activities Technical Assistance for I I I

~ ~

' 11/16/08 55,000 I IC ~ Yes upgrading the regulation and guidelines to conform ICAO security standards Technical Assistance for 1

I

I I I

j 55,000 ~ IC ~ Yes ~ 11/16/08 1 upgrading the regulation and guidelines to conform ICAO i i

_--I__

1 Translation o f the Code and safety standards

Preparation ofthe SARexercises 1 45,000 i QCBS 1 Yes ~ 11/31/09

30,000 ~ IC ~ No 07/02/09 Elaboration o f the initial and 1 periodic Safety training program ' Study on the allocation o f Security motivation premiums j I I ~

Preparation o f Crisis

Elaboration o f the initial and I I I management exercises (Security) 1 periodic Security training i 20,000 I C i NO program . I L , Elaboration o f technical ~ I

I

regulations into English - ~ - I No ~ 04/06/10 _____-

,

1 1 30,000 IC I No 1 1113 1/08

I 25,000 1 IC N o i 11/31/09

07/02/09 I

~

I ~

specifications o f the SAR 20,000 I IC N o 11/3 1/08 cartoeranhies I

I 1 750,000 ' QCBS 1 Yes I 02/16/09 1 Senegal

Update o f Safety Technical regulations

security audits Dissemination activities for the ' new civil aviation Code Review o f the institutional

I 1

i i

_ I 1 1

Follow up o f ICAO safety and ~ 2oo,ooo ' I QCBS Yes 06/301io 1 , I I

, 150,000 QCBS I N o 01/10/11

4 framework and fees allocation 1 125,000 ' QCBS i N o 01/20/09 1 5

I

among civil aviation entities ! 02/16/09 Drafting ofICAOAnnexes 9 & 1 loo,ooo ~ QcBs 1 No

17

80

I I I I ExDected 1 I Description ofAssignment 1 Estimated Cost ' Selection 1 Prior Review by Proposals

(US%) , Method I theBank I Submission ~

Comments 1 I 1 I

I ~'

1 i 100,000 QCBS N o 02/06/09

~

Setting-up o f I T sofiware slots I management

I w

121 10/08 Independent Financial Auditor QCBS 1 No Financial Assistant

I I Study for the creation of an I

Accident & Incidents 1 50,000 ~ QCBS N~ ~ 03/10/09 i I

I --+- ____ 50,000 1 IC 08/19/09

remilatinns 50,000 I , QCBS 1 NO 0911 1/09 !

nt of a Procurement

26. All countries - Short list comprising of entirely national consultants: Short list o f consultants for services, estimated to cost less than US$200,000 equivalent per contract, may comprise entirely o f national consultants in accordance with the provisions o f paragraph 2.7 o f the Consultant Guidelines. However, if foreign f i r m s have expressed interest, they should not be excluded from consideration.

V. Procurement supervisions missions and audits

27. All countries: In addition to the prior review to be carried out f rom World Bank offices, there will be one supervision mission every six months and at least one Bank annual Post Procurement Review (PPR); the ratio o f post review i s at least one to five contracts. Every six months the implementing agencies shall prepare and submit to the Bank review a project procurement management report with details on implementation.

81

Annex 9: Economic and Financial Analysis

West and Central Africa Air Transport Safety & Security Program Phase 2-B

1. Today West and Central Africa’s (WCA) air transport sector faces many safety and security issues and individually, most o f the W C A States do not have the financial and human resources to comply with either US, European or ICAO’s safety and security requirements. In West and Central African countries, the regional Air Transport Program initiated by the Bank i s aiming to enhance the compliance with security and safety international standards in support o f the economic and social development in the region. specific economic sectors would benefit from the improvement o f air services such as tourism and trade (Le. manufacturing, agriculture).

2. Measuring the economic benefits o f the implementation o f the program would require forecast data about the quantitative impact o f putting in place measures that would strengthen safety and security o f air transport in the targeted countries. No such information i s available, however, and no cost-related data can be obtained to make relevant computations. Furthermore, the nature o f the investments financed (Le.; airport security infrastructure and equipment, safety and security training) make any quantification o f these benefits dif f icult as these investments are among many others necessary to strengthen the aviation sector’s growth potential. Nevertheless, it i s s t i l l possible to highlight today’s impact o n the aviation sector globally in SSA countries based on available studies and surveys. More specifically the major impacts o f the program would be on tourism, travel fares, trade and investment into Africa.

I. Tourism in Africa - the Role of Aviation

3. In 2005, according to a World Tourism Organization (WTO) report, Afr ica accounted for 4 percent o f international tourist flows, or 37 mi l l ion tourists. Among Afr ican countries, six, namely Morocco, Tunisia, South Africa, Mauritius and the Seychelles accounted for 58 percent o f that total (see Table l), while Senegal, Benin accounted for only, respectively, 2.1 percent, and 0.5 percent o f that same total.

4. Although African’s share o f international tourism i s limited, with about 3.4 mi l l ion jobs (direct employment), it boats the third largest number o f direct and indirect tourism employments linked to air activities worldwide (see Figure 1). Such number provides strong evidence o f the unusually large dependency o f Africa’s tourism activities o n aviation services. Thus, Africa, and for that matter W C A countries depend, more than any other world’s regions or countries on aviation activities for their tourism activities.

82

Table 1: Tourism in Africa (2005)

2005

South Africa, Morocco, Seychelles, Mauritius, Tunisia Nigeria Senegal Burkina-Faso Cameroun Benin Mal i

International Tourist Market Share in Arrivals (000) the Region

21,828 58.5% 962 2.6% 769 2.1% 222 0.6% 190 0.5% 174 0.5% 143 0.4%

Guinea Rest of Africa Africa

Figure 1 : Tourism-related employment (indirect + direct) supported by air (2004) - _I-I___.____?

45 0.1% 12,979 34.8% 37,3 12 100.0%

7

6

5 v) S g 4 - .- E

3

2

1

0 Asia-Pacific Europe Africa Latin America/ North America Middle East

Caribbean

Source: OEF- WTTC, 2004

5. The proportion o f direct employment generated by tourism in Senegal and Benin i s in the range o f Africa’s most visited countries (see Figure 2); this underscores Senegal’s past ability to generate a significant amount o f jobs from tourists and reflects the country’s potential to carry on. At a regional level, Senegal i s the leading country in Western Africa, with the 68,000 jobs its tourism supports annually, while Benin’s tourism generates 40,000 direct jobs. About 6 percent o f Benin’s total capital investment depends o n tourism activities, which i s in the range o f the others western Africa countries (see Figure 4). Senegal achieves better, with more than 11 percent o f its total capital investments depending on tourism activities, almost as much as Morocco.

83

6. These numbers underscore the importance o f tourism for these countries’ economy and, consequently, that o f air transport which is in al l W C A the primary mode o f transport utilized for international tourists to reach them. It is not by mistake that the dominant countries in the African tourism industry (Le., the Group o f Five) al l boast wor ld class air carriers which are supported by world class c iv i l aviation authorities and airport security and safety. Indeed, among this group o f five, al l but the Seychelles which does not have national airlines are certified I A S A Category I by the U S FAA and airports certif ied by the U S TSA for direct flights to the USA.

Figure 2: Tourism industry direct employment in 2006

16.0% 14.9%

14.1% -- 14.0%

800.0

600.0

400.0

200.0

I 0.0

\ U d

Source: WTTC, 2008

12.0%

10.0%

8.0%

6.0%

4.0% I

9 2 3 % 394 \ +2.0%

%O%

84

Figure 3: Annual travel and tourism revenues (2006)

T 10,146

12,000

10,000

8,000

I- 5 - - 'E 6,000

3 4,000

2,000

0

4,Sl 1

3,238

. -- 31 3 31 2 247 m - I 876 7an I

Morocco Tunisia Kenya Cameroon Senegal Benin Burkina Guinea Faso

Source: WTTC, 2008

Figure 4: Tourism capital investment as a percentage o f total investment in 2006

0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 30.0%

Mauritius

Dominican Republic

Gambia

Tunisia

Cuba

South Africa

Morocco

Kenya

Senegal

Mali

Burkina Faso

Guinea

Cameroon

Benin

Nigeria

- 120.6%

4.6%

Source: WTTC 2008

85

11. Impact o f Aviation/Airport Safety and Security on Air Services Frequency and Price

7. Air transport services in Africa, and especially W C A countries, are characterized by the scarcity o f frequency offered as well as the high level o f fares they command. As shown in Figure 5, for international flights o f comparable times and distance, people traveling to/from Afr ica will pay anywhere from 40 to 13 8 percent more per miles f lown in business class. Such difference in price reflects mostly the lack o f competition to/from Afr ica whereas non-African international carriers hold a dominant position o n most international ci ty pair services as local carriers, when they exist, cannot simply compete head-to-head with vastly larger European carriers in large part due to poor safety and reliability records that hamper their competitiveness. This situation i s not, however, irreversible as shown by the successful growth o f national, albeit partially privately owned, Afr ican carriers such as Kenya Airways or Air Senegal International which have succeeded in competing head-to- head with European carriers with the correlated results o f lowering air fares o n these routes as well as increasing frequency. One key aspect o f these success story i s that both carriers have benefited from secured and safe airport infrastructure (i.e,, both Dakar and Nairobi airports are certified by the U S TSA for direct flights to the US) as well as adequately competent technical oversight from their respective c iv i l aviation authorities (Le., Kenya i s certified Level I by the U S FAA while Senegal i s not far from obtaining this certification).

Figure 5: Compared return fares on a sample of WCA and other long haul routes

1 6,000

I 5,000

1 4,000

H 3 3,000 8 n ‘C

I 2,000

I 1,000

I 0

9

Paris-Dakar* Tokyo-Bangkok Paris-Abidjan’ Paris-Dubai Paris-Brazzadlle’ Paris- SantoDomingo 1 -Business class fare +Flight time 1

I * W e s t African long haul routes

Source: Iches, Michel.: “Air Transport in Western and Central Africa: Facts and Issues.” The World Bank Group, August 2003.

86

8. A similar situation, although with even more pervasive effects exists in W C A regional aviation markets. Here competition i s even more restrained as countries continue to protect jealousy their national carriers behind safety and security arguments in spite o f the adoption o f the YD whose main purpose was to fully liberalize regional traffic. Indeed, time and time again evaluations o f the YD have shown that most countries were failing in implementing it with the worst offenders often hosting national champions. It has become amply clear, therefore, that any improvements in the general level o f aviation safety and security in W C A would preclude most countries from using the safety and security arguments to restrict market access and, thus, result in increasing service frequency as well as, more than likely, lower air fares.

111. Impact o f AviatiodAirport Safety and Security on Investment

9. According to a survey made by the consultant agency Healey and Baker in 2003, at a worldwide level, 56 percent o f international companies consider international air transport l i n k s to be an essential factor for locating businesses. Another survey made by IATA showed that 18 percent o f businesses’ past investment decisions were directly affected by the absence o f reliable, safe and secure air transport l i nks . This suggests that providing SSA countries with minimum safety and security requirements in the c iv i l aviation field can contribute to creating investment-attractive conditions for international companies.

10. An example o f these investment-attractive conditions i s the ability to negotiate and to conclude partnerships: a survey made by the Aviation Services o f the City o f London pointed out that while new technology, such as video or audio conferencing, can be useful, companies in the financial and business services sector st i l l consider flying for face-to-face meetings to be essential for winning new business and developing clients’ relationships. However, among the Safety and Security Program’s objectives i s that Airport authorities have adequate procedures in terms o f passengers’ control. A survey made by IATA in 2005 on a pol l o f 5 countries (Chile, China, the Czech Republic, France, the US) demonstrated that more than 65 percent o f businesses consider passenger air services as vital or very important for servicing or meeting consumer. Chinese f i r m s for instance place the greatest reliance on passenger air services for servicing or meeting clients, with nearly 90 percent o f their businesses reporting that they are vital or very important.

11. Also, overall, 85 percent o f businesses report that passenger air services are at least sometimes important for their sales, with 70 percent considering them to be either vital or very important. This dependency on air services means that companies have incentives to locate their operations in the vicinity o f major airports. Broadening the conclusions o f this survey to W C A countries shows that the program could have significant benefits on the overall region’s investment climate.

IV. Impact of Aviation/Airport Safety and Security on Exports Trade

12. A safe and secure air transport system i s one o f the major levers to sustain growth in the volume and the value o f the goods. Indeed, worldwide, up to 40 percent o f the value o f international trade in manufactured goods i s transported by air. However, 60 percent o f air cargo is actually carried as belly cargo by passenger airplanes. This means that air cargo

87

rates are directly affected by the level o f competition that exists on any given routes between passenger airlines. As such, favorable international air cargo rates to/from WCA cannot be secured without a vibrant air passenger, market which i tse l f i s subjected to the limitation imposed by low safety and security standards in the region. As shown by the example o f Kenya and Senegal, selected high value perishable high value agricultural goods such as cherry tomatoes (Senegal) or flowers (Kenya) can only gain international market access if the countries where they are produced have direct and affordable air l inks with their export markets (Le., Western Europe in the case o f Senegal and Kenya). Once more, such air services depend in large part on the level o f air security and safety that the exporting countries maintain.

V. Conclusions

13. Improvements in WCA’s aviation security and safety standards will not in and by themselves increase tourist flows, inward international direct investment or international trade. However, they will undoubtedly be an important enabler o f future growth in these activities as all depend heavily on the ease, affordability and access to the WCA market. The program should, therefore, be viewed as an important building stone in the overall economic development strategy o f the WCA countries.

VI. References

- - Air Transport Action Group (ATAG), “The economic and social benefits of air transport” (2005)

IATA, PriceWaterHouseCoopers : G Etude de la M i s e en Place d’une Structure Autonome de gestion de 1’Aviation Civile en RCpublique DCmocratique du Congo. Projet de Rapport de la phase 1 )) (19 AoQt 2005)

- Iches, Michel: “Air Transport in Western and Central Africa : Facts and Issues.” The World Bank Group, August 2003.

- UN Economic Commission for Africa: “Tourism in Africa and the Multilateral Trading System: Challenges and Opportunities.” Adrian Gauci, Vittorio Gerosa, Cornelius Mwalwanda

- United Nations Conference on Trade and Development, Economic Development in Africa. “Rethinking the Role o f Foreign Direct Investment”, United Nations, Geneva and New York 2005.

- WTO-S.A.F.E Program report: “The WTO strategy on Security and Facilitation Enhancement.” Assembly, 35” session. August 24, 2004 West and Central Africa Air Transport Safety and Security Program: Program Appraisal Document, Minutes, Notes and PowerPoint presentation o f the Decision Meeting. The World Bank, October 18, 2005. Air Transport Action Group (ATAG), “The economic and social benefits o f Air Transport”, 2008

-

-

88

Annex 10: Safeguard Policy Issues

West and Central Africa Air Transport Safety & Security APL Program Phase 2-B

1. not applicable.

The program is rated as a Category C project. Therefore, Safeguard Policy Issues are

89

Annex 11: Program Preparation and Supervision

Seynabou Seye (Senegal) ; Program Assistant ' A F C F l Marie Gave j STT i AFMMR

West and Central Africa Air Transport Safety & Security APL Program Phase 2-B

~~- l___-__ll_l-~

Planned date o f mid-term review June 30,2012 December 3 1,20 13 Planned closing date

Key institutions responsible for preparation o f the program: 0 ANACS (Senegal) 0 A N A C (Benin)

HAALSS (Senegal)

Bank staff and consultants who worked on the program included:

Sariette Jippe AFTTR j Michel Iches ' AFTTR

Specialist ~ AFTFM j Specialist i AFTFM

1 AFTPC I

90

' Charles Schlumberger 1 Gael Raballand

Bank funds expended to date on program preparation: 1. Bank resources: US$160,411.80 2. Trust funds: US$O.OO 3. Total: US$160,411.80

ETWTR Sr. Air Transport Specialist t - ' Transport Economist AFTTR 1

Estimated Approval and Supervision costs: 1. Remaining costs to approval: US$5,000 2. Estimated annual supervision cost: US$120,000

91

Annex 12: Documents in the Program Fi le

West and Central Africa Air Transport Safety & Security APL Program Phase 2-B

IDA processing internal documents:

Project Concept Note (January 2008) Integrated Safeguards Data Sheet - Concept stage (April 2008) Countersigned Integrated Safeguards Data Sheet - Appraisal stage (July 2008) Revised Countersigned Integrated Safeguards Data Sheet - Appraisal stage (November 5,2008) Project Information Document - Concept stage (April 2008) Project Information Document - Appraisal stage (July 2008) Revised Project Information Document - Appraisal stage (November 12,2008) Aides-memoire Preparation mission (April 2008) Minutes o f the Decision Meeting (July 2008) Aide-memoire Evaluation mission (October 2008) Minutes o f the Negotiations (November 2008) Status o f Negotiations (November 2008)

Clients’ documents:

Procurement - -

Benin Procurement Plan (June 2008 and December 2008) Senegal Procurement Plan (June 2008)

Legal documents - Letters approving negotiated documents (Benin: November 2008 - Senegal:

December 2008)) Letters nominating signatories to the Statutory Committee Reports (Benin: November 2008 - Senegal: December 2008) Benin: Decision No. 043 on Project Procurement Procedures Senegal: Decree No. 00001 650 dated November 2 1 , 2008, creating the Project Steering Comittee Benin: Arrete N o 1096 dated September 12,2008, creating the Project Steering Comittee

-

- -

-

Other documents

- Projet “COSCAP” pour la supervision de la sdcuritd aerienne dans les Etats membres de la CEMAC et de Sao Tome e Principe - Document Cadre (July 2000)

- Questionnaire Banque mondiale pour l’amelioration de la SCcurite et de la Sfirete adriennes (Mai 2004)

- -

OSTA Safety Audit o f African Airlines (July 2004) ICAO safety audits for Benin and Senegal (2006 and 2007)

92

Annex 13: Statement of Loans and Credits

BENIN:

Difference between expected and actual

disbursements Original Amount in US$ Millions

Project ID FY Purpose IBRD IDA SF GEF Cancel. Undisb. Orig. F rm Rev’d

PI04881 2008 Compet & Integrated Growth Opportunity 0.00 25.00 0.00 0.00 0.00 24.71 0.00 0.00

PO96056 2007 BJ- Multi Sectoral HIViAIDS SIL 2 0.00 35.00 0.00 0.00 0.00 30.48 3.33 0.00

PO96482 2006 BJ-MalariaCntrl Booster Prgm SIL (FY06) 0.00 31.00 0.00 0.00 0.00 16.69 7.75 0.00

PO82725 2006 BJ-Decentral City Mgmt 2 (FY06) 0.00 75.00 0.00 0.00 0.00 49.67 3.77 0.00 PO81484 2005 BJ-Natl CDD SIL (FY05) 0.00 50.00 0.00 0.00 0.00 23.06 9.63 0.00 PO79633 2005 BJ-Energy Srvc Delivery APL (FYOS) 0.00 52.00 0.00 0.00 0.00 30.50 20.62 -4.81

(FY07)

Total: 0.00 268.00 0.00 0.00 0.00 175.11 45.10 - 4.81

BENIN STATEMENT OF IFC’s

Held and Disbursed Portfolio In Millions o f U S Dollars

Committed Disbursed

IFC IFC

FY Approval Company Loan Equity Quasi Partic. Loan Equity Quasi Partic

2000 FMADEV 0.00 0.34 0.00 0.00 0.00 0.34 0.00 0.00

Total portfolio: 0.00 0.34 0.00 0.00 0.00 0.34 0.00 0.00

Approvals Pending Commitment

FY Approval Company Loan Equity Quasi Partic.

Total pending commitment: 0.00 0.00 0.00 0.00

93

Annex 13: Statement o f Loans and Credits SENEGAL:

Difference between expected and actual

disbursements Original Amount in US$ Millions

Project ID FY Purpose IBRD IDA SF GEF Cancel. Undisb. Orig. Frm. Rev’d

P105881 2009 PI05279 2008 PO84022 2007

PO89254 2007 PO97181 2007 PO93622 2006 PO88656 2006 PO83609 2006 PO86480 2005 PO85708 2005 PO73477 2005 PO69207 2005

PO80013 2004 PO51609 2003 PO74059 2002

PO41528 2001

SN-Sustainable Mgt of Fish Resources SN-En. Sec. Recov. Dev Policy Financing SN-Local Authorities Development Program SN-Quality EFA APL 2 (FY07) SN-Nutr Enhanc. Prog I1 - APL (FY07) SN-Agr Svcs & Prod Orgs APL 2 (FY06) SN-Participatory LOC Dev Prgm (FY06) SN-Agr Markets & Agribus Dev (FY06) SN-GIRMAC SIL (FY05) SN-Elec. Sew. for Rural Areas (FY05) SN-Elec Sec Eft7 Enhanc.Ph&e 1 APL-I SN-Casamance Emerg Reconstr Supt (FY05) SN-Priv Sec Adj Crdt (FY04) SN-Priv Inv Promotion SIL (FY03) SN-HIVIAIDS Prevent & Control APL (FY02) SN-Long Term Water Sec S I L (FYO1)

0.00 0.00 0.00

0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

0.00 0.00 0.00

0.00

3.50 80.00 80.00

30.00 15.00 20.00 50.05 35.00 10.00 29.90 15.70 20.00

45.00 46.00 30.00

125.00

0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

0.00 0.00 0.00

3.55 23.24 66.24

24.39 4.10

10.70 34.31 28.59 4.01

20.96 12.41 4.60

2 1.40 19.96 10.70

0.00 0.00 1.67 0.00

18.42 0.00

8.95 0.00 -2.76 0.00 1.77 0.00

23.61 0.00 4.64 0.00 2.10 0.00

19.10 -0.50 12.38 2.39 3.74 0.00

20.21 20.21 14.55 0.00 5.78 3.24

5.48 -15.41 -19.24

Total: 0.00 635.15 0.00 0.00 0.00 294.64 118.75 6.10

SENEGAL STATEMENT OF IFC’s

Held and Disbursed Portfolio In Millions o f U S Dollars

Com m itted Disbursed

IFC IFC

FY Approval Company Loan Equity Quasi Partic. Loan Equity Quasi Partic.

1980 BHS 0.00 0.46 0.00 0.00 0.00 0.46 0.00 0.00

1999 Ciments du Sahel 10.20 2.26 3.12 0.00 10.20 2.26 3.12 0.00

1997 GTI Dakar 10.41 1.68 0.00 9.04 7.49 1.51 0.00 9.04 1998 GTI Dakar 1.20 0.00 0.00 0.00 1.17 0.00 0.00 0.00 2005 K o u n o u n e 21.67 0.00 0.00 0.00 0.00 0.00 0.00 0.00 2001 SEF Royal Saly 1.41 0.00 0.00 0.00 1.41 0.00 0.00 0.00

Total portfolio: 44.89 4.40 3.12 9.04 20.27 4.23 3.12 9.04

94

Approvals Pending Commitment

FY Approval Company Loan Equity Quasi Partic

Total pending commitment 0 00 0 00 0 00 0 00

95

Annex 14: Current Safety Oversight and Accident Situation of Air Transport in WCA

West and Central Africa Air Transport Safety & Security APL Program Phase 2-B

70

60

50

40

30

20

10

60

0 Asia Pacific Eastern and Europe Middle East North and south West and

Southern Central America Centra I Africa America Africa

Lack of Effective Implementation of SARPs (in percent) Accident Rates in 2000 (per million of scehduled departures)

This chart, which was prepared on the basis o f information received by ICAO, demonstrates the relationship between the lack o f adequate air transport safety oversight and accidents. The l e f t column for each region shows the percentage o f findings (non-compliance) of ICAO's audits o f the regions CAA. The right column shows the accident rates o f scheduled air traffic. For the chart we clearly can derive two conclusions:

1. Poor safety oversight correlates directly with high accident rates; 2. West and Central Afr ica region has the highest accident rate, about 30 times higher

than the U S A (for illustration: the U S would have one major air crash every single week if they had the same safety record as W C A countries).

In order to successfully address the safety issues o f any country, adequate safety oversight by the county's Civ i l Aviat ion Authority must be the prime focus.

96

Annex 15: Country Selection Process

West and Central Africa Air Transport Safety & Security APL Program Phase 2-B

1. Tables 1 and 2 present the Program Team’s analysis and rationale for a phased approach based on each WCA country’s ability, willingness and expected benefit from participating in this program. Table 1 presents the evaluation criteria used to assess which country should be included in any or all o f three program phases. These are, namely:

Financial capacity - For this criterion, the Program Team used for each country the budget o f the civil aviation agency. This level provides a good indication o f the amount o f resources that each country can dedicate to ensure long t e r m sustainability o f security improvements that would result from the project implementation. Unfortunately, these figures are not always available, in particular for the countries where the CAA i s not yet financially autonomous. Safety - for this criterion, the Program Team used the rating employed by the US Federal Aviation Agency (Le., the International Aviation Safety Assessment program - IASA) to determine whether the countries in the program had already reached an adequate level o f safety compliance. Security - US Transport Security Agency (TSA) agency certification was used to assess whether a given airport was secured enough to allow for direct flights connection to/from the US. Need for Program Assistance - based on the outcome o f the three previous criteria (Le., financial capacity, safety and security) as well as the review o f existing ICAO’s security assessment reports for 17 country’s airports, the Program Team assigned a rating scale o f high, medium or low need for program assistance to each country. Using this rating, one country: Cape Verde whose C A A i s already IASA certified and has direct flight rights with the US, was judged to not requiring assistance. All other countries, with the exception o f Senegal, Gabon and the Gambia, saw their need for this program ranked high. Gabon and the Gambia’s medium rating came primarily from the fact that both countries CAA have relatively high level o f resources and proven achievements track record. Program Impact on Aviation Activities Growth - this criterion was used in recognition o f the fact that similar improvements in aviation safety and security would have different impacts in the countries included in the program. Like the previous criteria, a rating scale o f high, medium and low was used. In this specific case, the Program Team reviewed each country to evaluate whether aviation security and safety improvements would spur aviation activities growth because they would suddenly enable that country or that country’s main international airport to: 1) promote international tourism more efficiently (Le., lower airline insurance costs, thus lower the cost o f tourism in this country - case o f the Gambia), 2) maintain or enhance i ts status as a regional hub &e., case o f Abidjan or Douala) or 3) strengthen international services to/from this country (Le., case o f Senegal and to a lesser degree o f the Republic o f Congo, Central African Republic, Cameroon, Gabon, Guinea and Mali). For those countries which had received a low rating, the Program Team judged that the level o f aviation activities in these countries were highly dependent on local economic and political conditions and that, although highly desirable, improvements in aviation safety

97

and security would not make a significant difference in the level o f their aviation activities. Capacity to Implement - this last criterion was utilized to evaluate the risk associated with implementing the national component o f the program. Like both previous criteria, a rating scale o f high, medium and low was used. Individual country ratings were assigned based on the Bank’s prior experience in implementing projects in these countries as well as the Program Team specific knowledge o f the respective program implementation capacity o f local CAAs and airport authorities.

2. none, one, two or three o f the phases listed in Table 1 with:

Using the results o f this evaluation, the Program team assigned each country to

Phase I: I t includes the countries that were judged to be the most ready and where program assistance could immediately yield high returns. These are Guinea, Cameroon, Mal i and Burkina-Faso. Phase 11: After Nigeria, two new countries are now being incorporated in Phase two o f the program, which are Senegal and Benin. Phase 111: i t takes into account all the remaining countries.

3. The Program Team proceeded then to develop estimates o f the level o f investment necessary to implement the components o f the program, with, however, the actual figures for the countries o f Phase I (Cameroon, Guinea, Ma l i and Burkina-Faso) and Phase II-A (Nigeria). Table 2 presents the results o f this work. As can be seen, cost estimates were produced for each country’s CAA and airport-related components grouping the remaining ones in a last category called “other”.

4. For each country, the number o f airports to be covered under the program was taken into account as well as Program Team knowledge o f current airport security installations based on recent physical inspections o f these facilities (e.g., Abidjan, Douala, YaoundC) or ICAO inspections reports. Using these cost item figures, total estimated cost to implement the national component o f the program for the countries in Phases I, I1 and 111 came, respectively, at US$33.57, 62.65 and 55.28 million.

98

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Annex 16: Country at a Glance West and Central Africa Air Transport Safety and Security Program Phase 2-B - BENIN

POVERTY and SOCIAL

2007

GNI per capita (Atlas method, US$) GNI (Atlas method, US$ billions)

Average annual growth, 2001-07

Population (%! 3.2 Labor force (%) 3.4

M o s t recent es t lma te ( l a tes t year aval lable, 2001-07)

Poverty (%of population below nationalpovertyline) Urban population (%of totaipopulation) 41

56 infant mortality (per I000 live births) 68

22 Access to an improvedwater source (%o fpopulatfon) 65

98 Male 135 Female 87

Ben in

Population, mid-year (miliions) 9.0 570 5 1

Life expectancy at birth (pars)

Child malnutrition (%of children under5)

Literacy (%ofpopulation age ?5Y 35 Gross primary enro llment (%of school-age population)

KEY ECONOMIC RATIOS and LONG-TERM TRENDS

1987 1997

GDP (US$ billions) 16 2.2 Gross capital formation1GDP a .9 8.4 Exports of goods and ServicesIGDP 15.3 8.1 Gross domestic savingslGDP -2.8 5.6 Gross national SavingsIGDP 0.8 no Current account balancelGDP -5.9 -7.4 Interest payments1GDP 10 0.8 Total debVGDP 76.4 75.5 Total debt servicelexports 7.5 P.7 Present valueof debtiGDP Present value of debtlexports

1987-97 1997-07 2006 (average annual gm Wh) GDP 3.7 4.2 3.8 GDP percapita 0.1 10 0.6 Exports of goods and sewices 2.7 2.3

Sub- Saharan Low-

A f r l ca Income

600 952 762

2 5 2 6

36 51 94 27 58 59 94 9Q 88

2006

4 6

-9 0 0 3

776 136 r)9

645

1 2 8 576 749

2 2 2 7

32 57

29 66 61 94 130 89

a5

2007

5 4

-7 6

2007 2007-11

4.6 1.5

D evelo pment diamond.

Life expectancy

r

GNI Gross per primary capita enrollment

I

Access to improvedwatersource

- B enin __ Low-incomegroup

Economic ra t i os *

Trade

Domestic Capital savings formation

Indebtedness

--Benin - Low-incomegmup

STRUCTURE o f the ECONOMY

(%of GDP) Agncuiture Industry

Services

Household final consumption expenditure General gov't final consumption expenditure Imports of goods and services

M anufactunng

1987 1997 2006 2007

333 375 a 4 # 5 7 2 9 0

544 481

672 842 155 132 310 269

Growth o f cap l ta l and GDP (Oh)

30 T I

I 1 02 03 04 05 08 07

-GCF -GDP

(average annuaigmwth) ~gnculture Industry

M anufactunng Services

Household final consumption expenditure General gov't final Consumption expenditure Gross capital formation imports of goods and services

1987-97 1997-07 2006 2007

5 6 4 9 5 4 4 7 6 5 4 4 18 3 9

3 4 16 14 9 5 5 6 136 217 7 3 2 2 2 9

Growth o f expor ts and impor t s (%) 6

4

2

0

2 02 03 04 05 06 07

Note 2007 data are preliminaryestimates This table was producedfrom the Development Economics LDB database 'Thediamonds showfourkeyindicators in thecountry(in bo1d)comparedmthits income-group average If dataare missing thediamondmll

be incomplete

101

Benin

PRICES and GOVERNMENT F I N A N C E

D o m e s t i c p r i c e s (%change) Consumer pnces Implicit GDP deflator 3 0

1987 1997 2006 2007

3 8 5 0

3 0 3 0

2 5 2.9

G o v e r n m e n t f inance (%of GDP, includes current grants) Current revenue Current budget balance Overall SUrPlUSldefiCit

156 3.7 -3 0

T R A D E

(US$ millions) Tota leqor ts (fob)

Ginned cotton

M anufactures Totalimports (cif)

Food Fuel and energy Capital goods

CNdeoll

Export pnce index(2000=WO) Import pnce index(2OOO-WO) Terms of trade (20OO=WO)

1987

98 55 32

1997

4 9 145

7

426 DO 48

239

ni 93 Is

2006 2007 Expor t and Impor t l eve l s (US$ mlll.) ““ii 800

400

200

0

262

33 130

132

I 01 02 03 04 05 06 07

Exports mlmports

B A L A N C E o f P A Y M E N T S

(US$ miilions) Exports of goods and services Imports of goods and services Resource balance

Net income Net current transfers

Current account balance

Financing items (net) Changes in net reserves

1987

457 602 -145

-29 81

-93

58 35

1997

347 623

-276

-30 147

-159

173 -14

2006 2007 Cur ren t accoun t ba lance t o GDP (Oh)

-52 -55

-415

M e m o : Reserves including gold (US$ miilions) Conversion rate (DEC locaVUSS)

E X T E R N A L D E B T and RESOURCE FLOWS

(US$ millions)

300 5

We7

1 8 4 IBRD 0 IDA 1B6

Totaldebt service 41 IBRD 0 IDA 2

Total debt outstanding and disbursed

Composition of net resource flows Official grants 58 Official creditors 57 Pnvate creditors -1 Foreign direct investment (net inflows) 0 Portfolio equity(net inflows) 0

Commitments 48 Disbursements 22 Pnncipal repayments 0 Net flows 21 Interest payments 1 Net transfers 20

World Bank program

496 522.9

492 479 3 583.7

1997

1,627 0

5D

55 0 7

2006

824 0

P6

83 0 11

C o m p o s l t l o n o f 2006 deb t (US$ mill.)

0 176

0 1

E 369 t?6 22

0 27 2

1131 6 0

63 2

0 20 4 6 4 t?

30 32

8 24 4

20

0. Short-term 43

1 41

Note:This tabiewas producedfrom the Development Economics LDB database. 9/24/08

102

Senegal

PRICES and GOVERNMENT F I N A N C E

D o m e s t i c prices (%change) Consumer prices Implicit GDP deflator

Governmen t f inance (%of GDP. includes current grants) Current revenue Current budget balance Overall surplusldeficit

T R A D E

(US% miliions) Total exports (fob)

Groundnut products Phosphates Manufactures

Total imporls (cif) Food Fuel and energy Capital goods

Export pnce index(2000=WO) Impon price index (2000=WOJ Terms of trade (20OO-Wo)

B A L A N C E o f P A Y M E N T S

(US% millions) Exports of goods and servlces Imports o f goods and services Resource balance

Net income Net current transfen

Current account balance

Financing items (net) Changes in net reserves

M e m o : Reserves including gold (US$ millions) Conversion rate (DEC. loca//US%)

1987

-4.1 -16

170 0 6 -19

1987

671 70 66 157 1119 208 177 6 6

68 58 la

1987

102 1474 -342

-198 -6

-556

582 -26

23 300.5

EXTERNAL D E B T and RESOURCE FLOWS 1987

4 027 IBRD 0 6 IDA 506

Total debt service 387 IBRD 20 IDA 5

(US% mriifons) Total debt outstanding and disbursed

Composition of net resource flows Official grants 206 Official creditors 298 Pnvate creditors -25

-4 Foreign direct investment (net inflows) Portfolio equity(net inflows) 1

World Bank program Commitments 0 0 Disbursements 0 0 Pnncipal repayments Q Net flows 0 8 Interest payments 0 Net transfers 95

1997

18 2.1

'5.3 4.6 -15

1997

904 50

146 254

1306 289 9 1 8 2

98 96

0 2

1997

1276 1568 -291

-72 n 8

-185

8 8 n

395 583.7

1997

3,795 n

1187

251 9 17

238

15 7 6

8

n 2

8 4 60 15

45 0

35

2006

2.6 3.4

20.4 6.3 -4.1

2006

159 36 61

336 3,437

458 4 7 372

D6 P 1 87

2006

2,342 4,045 -1703

- 8 2 866

-980

805 7 5

897 522.9

2006

1,984 0

495

202 0

26

2,408 ln 6 58 0

320 0 1 15

16 0

0 6

2007

17 5 2

211 6 5 -51

2007

1628 42 95

336 3,574

460 4 0 376

99 120 83

2007

2,522 4,351

-1829

-66 100

-1002

1 0 5 - 0 4

903 479 3

2007

0 671

0 5

35 0 3

1 0 3

5 0 8

I -GDPdelidor -CPI I

Expor t a n d I m p o r t level8 (US$ mlll.) ,

4 000 T

1 01 02 03 04 05 OB 07 I mExportr mlnpOl35

Current a c c o u n t ba lance t o GDP (%I

C o m p o s i t i o n o f 2006 debt ( U S $ mlll.1

I G 95

A . IBRD E. Biimera 8. IDA D.Othnrmltilatnrsl F.Prlv.de C.IMF G-Short-tnrl

- Note This table was produced from the Development Economics LDB database 9/24/08

104

MAP SECTION

Zou Zou

Couffo Couffo

Ouémé

Ouémé M

ono M

ono

Sota Sota

Tassi

né

Tassi

né

Okp

ara

Okp

ara

Alp

ouro

A

lpou

ro

Mék

rou

Mék

rou

Alibori Alibori

Mékro

u

Mékro

u

Panja

ri

Panja

ri

NIGER RIVER

NIGER RIVER

BIGHT OF BENIN BIGHT OF BENIN

Lake Lake Volta Volta

Lake Lake Kainji Kainji

OOuuéémm

éé

M O N O M O N O

COUFFO COUFFO

B O R G O U B O R G O U

A L I B O R I A L I B O R I

ATA K O R A ATA K O R A

C O L L I N E S C O L L I N E S

D O N G A D O N G A

Z O U Z O U

ATLANTIQUE ATLANTIQUE

LITTORALLITTORAL

OU

EME

OU

EME

PLATEAU PLATEAU

Pobé Pobé

Bohicon Bohicon

Aplahoué Aplahoué

Cové Cové

Malanville Malanville

Dassa- Dassa- Zoumé Zoumé

Bembéréké Bembéréké

Abomey Abomey

Cotonou Cotonou

Sakété Sakété

Lokossa Lokossa

Dogbo Dogbo

Parakou Parakou

Natitingou Natitingou

Kandi Kandi

Ouidah Ouidah

Savalou Savalou

Djougou Djougou

PORTOPORTONOVONOVO

AAtt aa kk oo rr aa MM

oo uu nn tt aa ii nn ss

M O N O

COUFFO

B O R G O U

A L I B O R I

ATA K O R A

C O L L I N E S

D O N G A

Z O U

ATLANTIQUE

LITTORAL

OU

EME

PLATEAU

Pobé

Bohicon

Aplahoué

Cové

Malanville

Dassa- Zoumé

Bembéréké

Abomey

Cotonou

Sakété

Lokossa

Dogbo

Parakou

Natitingou

Kandi

Ouidah

Savalou

Djougou

PORTONOVO

TOGO

GHANA

NIGERIA

NIGER

BURKINA FASO

Zou

Couffo Ouémé

Mono

Sota

Tassi

né

Okp

ara

Alp

ouro

Pendjari

Mék

rou

Alibori

Mékro

u

Panja

ri

NIGER RIVER

BIGHT OF BENIN

Lake Volta

Lake Kainji

Koumongou Oué

mé

Gulf of Guinea

At a k o r a M

o u n t a i n s

To Dapaong

To Sokoto

To Dosso

To Kaiama

To Kabou

To Lomé

To Notsé

To Ibadan

0° 1°E

2°E

2°E

3°E 1°E

3°E 4°E

7°N

8°N 8°N

7°N

9°N 9°N

10°N 10°N

11°N 11°N

12°N

BENIN

This map was produced by the Map Design Unit of The World Bank. The boundaries, colors, denominations and any other informationshown on this map do not imply, on the part of The World BankGroup, any judgment on the legal status of any territory, or anyendorsement or acceptance of such boundaries.

0 604020 80

0 20 40 60 Miles

100 Kilometers

IBRD 36145

MAY 2008

BENIN

WEST AND CENTRAL AFRICAAIR TRANSPORT SECURITY AND

SAFETY PROJECT P108583Phase 2 of P083751

CADJEHOUN INTERNATIONAL AIRPORT

SELECTED CITIES AND TOWNS

DEPARTMENT CAPITALS

NATIONAL CAPITAL

RIVERS

MAIN ROADS

RAILROADS

DEPARTMENT BOUNDARIES

INTERNATIONAL BOUNDARIES

M ATA MM ATA M

T A M B A C O U N DT A M B A C O U N D AA

L O U G AL O U G A

K A O L A C KK A O L A C K

K O L D AK O L D A

ZIGUINCHORZIGUINCHOR

T H I È ST H I È S

D I O U R B E LD I O U R B E L

F A T I CF A T I C KK

S A I NS A I N T -T -L O U I SL O U I S

CCaassaammaannccee

LLaa FFeerrddoo

MMaall iinnkkee

Lac deLac deGuierGuier

VVaallllééee dduu FFeerrlloo

SSaalloouumm

SSaalloouu

mm

CCaassaammaannccee KKaayyaannggaa

KKoouulloouunnttoouu

SSaannddoouuggoouu

GGaammbbiiee

DDoouuee

FFaalléémméé

Darou MoustiDarou Mousti

MbakéMbaké

DaraaDaraa

KokiKoki

MpalMpal

TivaouaneTivaouane

MékhéMékhé

KayarKayar

LagbarLagbar

Haïré LaoHaïré Lao

ThilogneThilogne

MamâriMamâriVèlingaraVèlingara

SakoneSakone

KébémèrKébémèr

Nioro du RipNioro du Rip

Keur MadiabelKeur Madiabel

KarangKarang

GuinguinéoGuinguinéo

GossasGossas

NgandaNganda

KaffrineKaffrine

KoungheulKoungheul KoussanarKoussanar

MakaMaka

NiahNiahèneène

LinguèreLinguère

PayarPayar

Toubéré BafalToubéré Bafal

DialakotoDialakoto

MakoMako

DaganaDaganaNdiayèneNdiayène

Richard-TollRichard-Toll

BakelBakel

NayéNayé

KédougouKédougou

SarayaSaraya

VélingaraVélingara

MeedinaMeedinaGounasGounas

SédhiouSédhiou

BounkilingBounkiling

BignonaBignonaTanafTanaf

GoudompGoudomp

DianaDianaMalariMalari

DiouloulouDiouloulou

OussouyeOussouye

DiourbelDiourbel

FatickFatick

ThièsThiès

LougaLouga

KaolackKaolack

MatamMatam

TambacoundaTambacounda

KoldaKolda

ZiguinchorZiguinchor

M A U R I T A N I AM A U R I T A N I A

M A L IM A L I

THETHEGAMBIAGAMBIA

G U I N E A B I S S A UG U I N E A B I S S A UG U I N E AG U I N E A

To To NouakchottNouakchott

To To MboutMbout

To To BarraBarra

To To BanjulBanjul

To To KayesKayes

To To BalakeBalake

To To KoundaraKoundara

To To BafataBafata

To To FarimFarim

To To IngoreIngore

T A M B A C O U N D A

L O U G A

K A O L A C K

K O L D A

ZIGUINCHOR

CAP-VERT

T H I È S

D I O U R B E L

F A T I C K

S A I N T -L O U I S

M ATA M

Darou Mousti

Mbaké

Daraa

Koki

Mpal

Rufisque

Tivaouane

Mékhé

Kayar

Fâs Boye

Tioukougne Peul

LéonaNdiaye

Lagbar

Haïré Lao

Thilogne

MamâriVèlingara

Darou Khoudos

Ndangane

Sakone

Mbour

Kébémèr

Nioro du Rip

Diembéreng

Keur Madiabel

Karang

Guinguinéo

Gossas

Nganda

Kaffrine

Koungheul Koussanar

Maka

Niahène

Linguère

Payar

Toubéré Bafal

Dialakoto

Mako

RossoDagana

NdiayèneRichard-Toll

Podor

Kaedi

Bakel

Nayé

Kédougou

Saraya

Vélingara

MeedinaGounas

Sédhiou

Bounkiling

BignonaTanaf

Goudomp

DianaMalari

Diouloulou

Oussouye

Diourbel

Fatick

Thiès

Louga

Kaolack

Matam

Tambacounda

Kolda

Ziguinchor

Saint-Louis

DAKAR

M A U R I T A N I A

M A L I

THEGAMBIA

G U I N E A - B I S S A UG U I N E A

Lac deGuier

Vallée du Ferlo

Vallée du Ferlo Vallée du Mboun

Saloum

Salou

m

Casamance

Gambia

Kayanga

Koulountou

Sandougou

Gambie

Sénégal

Doue

Sénégal

Falémé

ATLANTICOCEAN

To Nouakchott

To Mbout

To Barra

To Banjul

To Kayes

To Balake

To Koundara

To Bafata

To Farim

To Ingore

Casamance

La Ferdo

Mal inke

419 m

18°W 16°W 14°W

16°W 14°W 12°W

12°W

14°N

16°N 16°N

12°N

14°N

SENEGAL

This map was produced by the Map Design Unit of The World Bank. The boundaries, colors, denominations and any other informationshown on this map do not imply, on the part of The World BankGroup, any judgment on the legal status of any territory, or anyendorsement or acceptance of such boundaries.

IBRD 36147

MAY 2008

LEOPOLD SEDAR SENGHORINTERNATIONAL AIRPORT

SELECTED CITIES AND TOWNS

REGION CAPITALS

NATIONAL CAPITAL

MAIN ROADS

RAILROADS

REGION BOUNDARIES

INTERNATIONAL BOUNDARIES

0 25 50

0 25 50 Miles

75 Kilometers

SENEGAL

WEST AND CENTRAL AFRICAAIR TRANSPORT SECURITY AND

SAFETY PROJECT P108583Phase 2 of P083751