Language: English Original: French

AFRICAN DEVELOPMENT FUND

PROJECT :

MULTINATIONAL (BURUNDI/RWANDA)

PROJECT TO DEVELOP ROADS (MUGINA-MABANDA-

LAKE NYANZA AND RUBAVU-GISIZA) AND FACILITATE

TRANSPORT ON THE NORTH-SOUTH CORRIDOR -

PHASE III

COUNTRIES: BURUNDI AND RWANDA

Date: MARCH 2012

Appraisal Team

Team Leader: : M. SOUARE, Chief Transport Engineer, OITC.2

Team Members: P. MORE-NDONG, Principal Transport Engineer, OITC.2

M.T. WADDA-SENGHORE, Senior Transport Engineer, OITC.2

M. BENARD, Principal Transport Economist, OITC.1

J.P. KALALA, Principal Socio-economist, OITC.1

P. MUNYARUYENZI, Infrastructure Specialist, OITC.2/RWFO

G. KARARA, Procurement Expert, ORPF.1/RWFO

M. KINANE, Y.P., Environmentalist, ONEC.3

A. MOHAMED-MOUSSA, Y.P., Financial Analyst, OITC.2

E. NGODE, Financial Management Expert (Consultant),

ORPF.2/EARC

B. WINSTON, Transport Facilitation Expert (Consultant)

Sector Director : G. MBESHERUBUSA

Regional Director (EARC) : G. NEGATU

Sector Division Manager : A. OUMAROU

Peer Reviewers

P. RUGUMIRE, Principal Transport Engineer, OITC.1

J.S. TOKINDANG, Principal Country Economist, BIFO

A. EKPO, Macro-economist, OSGE.1

M. MBODJ, Transport Economist (Consultant), OITC.1

TABLE OF CONTENTS

1. STRATEGIC THRUST AND RATIONALE ................................................................ 1

1.1 PROJECT LINKAGES WITH NATIONAL STRATEGIES AND OBJECTIVES ..................................................... 1

1.2 RATIONALE FOR BANK’S INVOLVEMENT ............................................................................................... 1

1.3 AID COORDINATION ............................................................................................................................... 2

2. PROJECT DESCRIPTION ............................................................................................. 2

2.1 PROJECT COMPONENTS .......................................................................................................................... 2

2.2 TECHNICAL SOLUTIONS ADOPTED AND ALTERNATIVES EXPLORED ...................................................... 3

2.3 PROJECT TYPE ....................................................................................................................................... 4

2.4 PROJECT COST AND FINANCING ARRANGEMENTS ................................................................................. 4

2.5 PROJECT AREA AND BENEFICIARIES ...................................................................................................... 6

2.6 PARTICIPATORY APPROACH FOR PROJECT IDENTIFICATION, DESIGN AND IMPLEMENTATION ............... 7

2.7 EXPERIENCE OF THE BANK GROUP, LESSONS LEARNED FROM THE PROJECT DESIGN ............................ 7

2.8 KEY PERFORMANCE INDICATORS .......................................................................................................... 8

2.9 PROJECT FEASIBILITY ............................................................................................................................. 8

2.1. ECONOMIC PERFORMANCE .................................................................................................................... 8

2.10 ENVIRONMENTAL AND SOCIAL IMPACT ................................................................................................. 9

3. IMPLEMENTATION ................................................................................................... 11

3.1. IMPLEMENTATION ARRANGEMENTS .................................................................................................... 11

3.2. MONITORING ....................................................................................................................................... 12

3.3. GOVERNANCE ...................................................................................................................................... 13

3.4. SUSTAINABILITY .................................................................................................................................. 14

3.5. RISK MANAGEMENT ............................................................................................................................ 15

3.6. KNOWLEDGE BUILDING ....................................................................................................................... 15

5. LEGAL FRAMEWORK .............................................................................................. 15

5.1. LEGAL INSTRUMENT ............................................................................................................................ 15

5.2. CONDITIONS ASSOCIATED WITH BANK’S INTERVENTION .................................................................... 15

5.3. COMPLIANCE WITH BANK POLICIES ..................................................................................................... 17

6. RECOMMENDATION ................................................................................................ 17

Appendix I: Comparative Socio-Economic Indicators 1

Appendix II: A. Table of Bank Portfolio in Burundi 1

Appendix II: B. Table of Bank Portfolio in Rwanda 1

Appendix III.1: Major Related Projects Financed by the Bank and Other Development

Partners in Burundi 3

Appendix III.2: Major Related Projects Financed by the Bank and Other Development

Partners in Rwanda 3

Appendix IV: Map of Project Area 1

Annex A.1: Detailed Cost Estimate by Component in Burundi 1

Annex A.2: Detailed Cost Estimate by Component in Rwanda 1

Annex B.1: Procurement 7

Currency Equivalents

March 2012

UA 1 = USD 1.55602

UA 1 = RWF 937.928

UA 1 = BIF 2,187.73

USD 1 = RWF 602.774

USD 1 = BIF 1,405.978

Fiscal Year

Rwanda: 1 July to 30 June

Burundi: 1 January to 31 December

Weights and Measures

1 metric tonne = 2,204 pounds (lbs.)

1 kilogramme (kg) = 2.2 lbs.

1 metre (m) = 3.28 feet (ft.)

1 millimetre (mm) = 0.03937 inches (”)

1 kilometre (km) = 0.62 mile

1 hectare (ha) = 2.471 acres

Acronyms and Abbreviations

AADT Annual Average Daily Traffic GCI Global Competitiveness Index

ABEDA Arab Bank for Economic

Development in Africa

GDP Gross Domestic Product

GB Government of Burundi

GR Government of Rwanda

AfDB African Development Bank HIV Human Immunodeficiency Virus

ADF African Development Fund ICB International Competitive Bidding

APD Detailed design IRR Internal Rate of Return

APS

Preliminary design

JICA Japan International Cooperation Agency

NPV Net Present Value

BIF Burundian Franc OdR Roads Authority

CEPGL Economic Community of the Great

Lakes Countries

PBA Performance-Based Allocation

CF Counterpart Funds PIA Project Impact Area

CSP Country Strategy Paper

CTP Technical Steering Committee PRSP

Poverty Reduction Strategy Paper

EAC East African Community

EDF European Development Fund RISP Regional Integration Strategy Paper (RISP)

RO Regional Operation

ESIA

Environmental and Social Impact

Assessment

RTDA Rwanda Transport Development Agency

STI Sexually transmitted infection

ESMP Environmental and Social

Management Plan

VOC Vehicle operating cost

ii

Loan Information Client information

BORROWER : REPUBLIC OF BURUNDI

REPUBLIC OF RWANDA

EXECUTING AGENCY : ROADS AUTHORITY (ODR) - BURUNDI

RWANDA TRANSPORT DEVELOPEMENT

AGENCY (RTDA) - RWANDA

Key Information on the ADF Financing

Loan/Grant Currency Unit of Account (UA)

Interest type N/A

Interest rate margin N/A

Service commission for the

ADF loan

0.75% per annum on the undisbursed loan amount

ADF loan commitment fee

0.5% on the undisbursed loan amount, 120 days after

the signing of the Loan Agreement

Other costs N/A

ADF loan tenor 50 years

ADF loan grace period and

reimbursement

10 years

FRR, NPV (baseline scenario) N/A

ERR, NPV (baseline scenario) 19.6% and USD 59.61 million

Implementation Timeframe – Milestones (expected)

Concept Note approval

February 2012

Project approval June 2012

Implementation December 2012

Last disbursement December 2017

Completion December 2016

Last reimbursement (Rwanda) December 2062

iii

EXECUTIVE SUMMARY

Project Overview

This project is the third phase of the North-South Corridor (Mugina-Bujumbura-Ruhwa-

Rusizi-Ntendezi-Rubavu/Goma) development works, covering 458 km (244 km in Burundi

and 214 km in Rwanda) and linking Tanzania, Burundi, Rwanda and the Democratic

Republic of Congo (DRC). The total project cost, net of taxes and duties and including

physical contingencies and price escalation, stands at UA 81.79 million. The Bank's

contribution is estimated at UA 72.55 million. Specifically, the project works planned include

the construction and asphalting of 45 km of roads in Burundi (Lake Nyanza-Mabanda

Mugina) and a 47.9 km road in Rwanda (Rubavu-Gisiza). The project also includes ancillary

works for: (i) the construction of feeder roads, river quays and school fences; and (ii) the

rehabilitation of markets and health centres, and the installation of traffic lights on the road

section crossing Bujumbura City. It also comprises measures to facilitate transport, road

safety, studies, as well as a management support component.

The project’s sector objective is to contribute to economic growth of Burundi and Rwanda by

developing transport infrastructure, with a view to strengthening competitiveness and

sustaining the growth of their economies.

Needs Assessment

In Rwanda and Burundi, the Rubavu-Gisiza and Lake Nyanza-Mabanda-Mugina road

sections are the last missing links to be developed; they form an integral part of the Mugina-

Bujumbura-Ruhwa-Rusizi-Ntendezi-Rubavu/Goma multinational road connection which

plays an important role in the development and diversification of national and international

trade flows in the sub-region. The Tanzanian section of this corridor – a 65 km stretch linking

Mugina and Kigoma (a Port city in Tanzania) - is fully paved and in good condition, while

the Congolese part is being constructed with European Union funding. This corridor is among

the priority roads selected for the Economic Community of Great Lakes Countries (CEPGL)

and forms part of the transport strategy of the East African Community (EAC).

Bank’s Value Added

This new operation is a continuation of the following previous Bank funding for the corridor,

approved by the ADF Board of Directors: (i) a UA 13.5 million loan and a UA 1.5 million

grant approved in October 2003 to Rwanda for the rehabilitation of the Bugarama-Rusizi and

Bugarama-Ruhwa links (the World Bank funded a 30-km stretch of the Burundian section of

the corridor); and (ii ) a loan and a grant totalling UA 100 million provided in 2008 for the

second phase of the Burundi-Rwanda Multinational Road Project. This new operation will

enable the Bank to consolidate the gains of the previous phases of the project with a view to

achieving the set objectives of strategies pursued by the countries concerned as well as those

contained in the Bank's regional strategy.

Knowledge Building

The project will provide an opportunity for improving knowledge in regional infrastructure

priorities in line with Bank Group’s Regional Integration Strategy Paper (RISP 2011-2015).

It comprises studies aimed at defining: (i) specific and appropriate additional transport

facilitation measures that will take into account the physical specificities at the border

between the two countries; and (ii) steps to be taken to reduce transport cost along the

corridor.

iv

RESULT-BASED LOGICAL FRAMEWORK

Country and Project Name: Burundi/Rwanda - Multinational Project to Develop Roads (Mugina-Mabanda—Lake Nyanza And Rubavu-Gisiza) and Facilitate Transport on the North-South Corridor -

Phase III

Project Objective: Facilitate transport on the North-South Corridor and within the entire East African Economic Community (EAC)

Results Chain Performance Indicators Means of

Verification Risks/Mitigation Measures

Indicator (including CSI) Baseline Target

Imp

act

Contribute to economic growth in Burundi and Rwanda through the development of transport

infrastructure with a view to strengthening the

competitiveness of their economies.

GDP growth rate In 2011: Burundi: 3.9%

Rwanda: 7.5%

In 2020: Burundi: 4.7%

Rwanda: 9.0 %

National/ regional/ international statistical

reports

Risks:

(i) Political instability in the East

African region and, in the case of Burundi, possible return of the

rebellion;

Mitigation measures:

(ii) Continuation of pacification efforts

in the region, under the auspices of the EAC;

Risks:

(i) Non pursuit of the regional

integration policy;

(ii) Lack of resources for road funds;

(iii) Non-functionality of the single

border post (PCUF).

Mitigation measures

(i) Commitment of Rwanda and

Burundi to the EAC regional integration

initiatives and establishment of a common market protocol;

(ii) Commitment in Burundi to increase

(with effect from 2013) the base of the

fuel levy; (iii) Recruitment of a PCUF

manager;

(iv) The activities of the joint

technical committee set up in Nemba will be extended to this PCUF

Value of commercial exchanges within the EAC

In 2011: USD 500 million

In 2020: USD 650 million

Ou

tco

mes

Outcome 1:

General reduction in transport cost

1.1 Vehicle operating cost (VOC),

1.2 Border-crossing time

1.3 Increased annual average daily traffic

(AADT) crossing the border

In 2011:

1.1 VOC = USD 0.84

per veh./km for a light vehicle;

1.2 Seven (7) hours

on average for a

vehicle to cross the border

1.3 450 AADT

From 2016:

1.1 USD 0.35 per veh./km for a light vehicle

1.2 3.5 h on average for a vehicle to cross the

border

1.3 5% increase in the AADT

Road Agencies

(OdR in Burundi and RTDA in Rwanda)

Statistical reports of

the countries/the EAC

Freight/transport

associations in both

countries

Single border post

(PCUF) management report.

Monitoring/Evaluati

on Reports

Outcome 2:

Improved rural accessibility

Rural accessibility index in the project impact area (PIA) measured by the percentage of the

population living within a 2-km walking

distance of a paved road.

In 2011:

Burundi: 20% Rwanda: 50%

In 2016:

Burundi: 25% Rwanda: 55%

Outcome 3

Living conditions of the population of the

project impact area.

3.1 Quantity of juice produced per woman

per hour 3.2 Number of temporary jobs created

In 2011

1. litres/hour

2. 0 (zero)

In 2016

1. 10 litres/hour 2. 4,000 jobs (30% of which are held

by women)

Output 1: Road Works

1.1 Construction of the corridor’s major roads

1.2 Works control and supervision

1.3 Raising the population’s awareness

concerning STIs, road safety and environmental protection

1.1 Linear sections of the main corridor

1.2 Number of works control and monitoring

reports produced

1.3 Number of people reached in both countries (in respect of HIV, road safety and

environmental protection)

In 2016:

1.1 92.9 km of roads constructed and paved

1.2 At least eight half-yearly progress reports

and a final implementation report is produced

1.3 At least 1,000 people were reached in each

country as part of the HIV, road safety and

environmental awareness effort

Progress Reports of

Executing Agencies

Project Supervision Reports

Project Completion

Reports

Risks:

(i) Cost overrun

Mitigation measures:

(i) Update of the studies on the project shortly before the project evaluation and

the launch of an international

v

Output 2: Transport facilitation measures

2.1 Equipment for commissioning of the single border post (PCUF) between the two

countries

2.2 Studies on the Mugina-Bujumbura Ruhwa

Corridor

2.1 Training of PCUF officers D

2.1 Amount of equipment provided to the

PCUF

2.2 Study reports produced

2.3 Number of PCUF officers trained

In 2012:

2.2 PCUF built but

not

equipped

: In 2016:

2.1 Supply of 3 computer terminals and 2 servers;

2.2 Study report on the Corridor available

2.3 At least 20 PCUF officers trained

competitive bidding procedure

Ou

tpu

ts

Output 3: Related activities

3.1 Feeder roads

3.2 Market rehabilitation

3.3 Health centre rehabilitation

3.4 Rehabilitation of school fences

3.5 Development of quays 3.6 Rehabilitation of traffic lights

3.7 Control and monitoring of ancillary

development works

Output 4: Studies

4.1 Road-related studies in Rwanda 4.2 Studies on the Lake Kivu Transport

Project

4.3 Studies on Bujumbura city bypass roads

Output 5: Capacity building, project

monitoring and management

5.1 Provision of IT equipment

5.2 Training of staff of executing agencies

5.3 Support for the Burundian Government’s

accession to COST

5.4 Accounting and financial audit 5.5 Road safety audit

5.6 Project technical audit

5.7 Impact monitoring and evaluation

3.1 Linear kilometres of rural roads in the

two countries

3.2 Number of markets rehabilitated in the

two countries

3.3 Number of health centres rehabilitated

3.4 Linear metres of school fences

rehabilitated

3.5 Number of quays rehabilitated

3.6 Number of traffic lights installed

3.7 Number of control reports produced on ancillary activities

4.1 Reports on road-related studies produced

4.2 Reports produced on lake transport

4.3 Reports produced on bypass roads

5.1 Number of equipment provided

5.2 Number of officers trained

5.3 Establishment of a COST Accession Committee

5.4 Number of reports produced

5.5 Number of reports produced

5.6 Number of reports produced

5.7 Number of reports produced

In 2016:

3.1 50 km of rural roads upgraded - 25 in Rwanda and 25 Burundi.

3.2 Two markets rehabilitated

3.3 One health centre rehabilitated in

Burundi

3.4 1,680 m of fences in Rwanda 3.5 Two docks rehabilitated in Rwanda

3.6 36 traffic lights installed in Burundi

3.7 48 audit reports on related works available

4.1 In 2016, two reports on various

studies available (4.2 & 4.3) 5.1 In 2016, supply of five computer

terminals in Burundi

5.2 In 2016, 20 RTDA and OdR officers were trained, based on

identified needs

5.3 Establishment of a COST-

implementation unit in Burundi

5.4 At least four audit reports

5.5 At least six audit reports on road

safety

5.6 At least four technical audit reports 5.7 At least six monitoring and

evaluation reports

3

vi

Components (Burundi) Components (Rwanda) Input/Resources

1. Road works: 45 km of roads, supervision of road

works, awareness-raising among the population

(STIs/HIV, road safety and environmental protection)

2. Transport facilitation measures: ICT studies and

measures at the border crossing.

3. Related activities: Rural roads, health centres, markets

and rehabilitation of traffic lights.

4. Ancillary activities: Feeder roads, health centres,

markets and rehabilitation of traffic lights.

5. Studies: Bujumbura bypasses.

6. Capacity building and project management:

Provision of IT equipment, building of OdR’s capacity,

support for accession to COST, financial audits and road

safety, monitoring and evaluation of project impacts.

1. Road works: 47.9 km of roads, supervision of road works, awareness-raising

among the population (STIs/HIV, road safety and, environmental protection )

2. Transport facilitation measures: ICT studies and measures at the border crossing,

equipment of the PCUF and training of its officers.

3. Related activities: Feeder roads, health centres, markets and rehabilitation of traffic

lights.

4. Studies: Road-related studies and studies on Lake Kivu transport

5. Capacity building and project management: Building of the RTDA project

executing agency, financial audits and road safety, monitoring and evaluation of

project impacts.

Sources of financing

Overall project cost = UA 81.79 million

Components In UA million

1. Road works 64.38

2. Transport facilitation

measures 0.51

3. Related activities 2.47

4. Studies 0.42

5. Capacity building and

project management 0.61

Base Cost 68.38

Physical contingencies 6.68

Financial contingencies 4.59

6. Vacation of the right-of-way 2.13

Total project cost 81.79

vii

PROJECT IMPLEMENTATION SCHEDULE

REPORT AND RECOMMENDATION OF BANK GROUP MANAGEMENT

CONCERNING A PROPOSAL TO AWARD A GRANT TO BURUNDI AND TO

EXTEND A LOAN AND AWARD A GRANT TO RWANDA

Management hereby presents the following report and recommendation concerning a

proposal to award a UA 27.5 million ADF grant to the Republic of Burundi, and to award a

UA 4.525 million grant and extend a UA 40.525 million loan to the Republic of Rwanda.

1. STRATEGIC THRUST AND RATIONALE

1.1 Project Linkages with National Strategies and Objectives

1.1.1 Burundi and Rwanda are landlocked countries with high transport costs, particularly

on major road corridors used for trade. It is to reduce the cost of trade that both countries

have gradually undertaken development works on these major corridors. This project, which

focuses mainly on the development of the missing links along the North-South Corridor (45

km in Burundi and 47.9 km in Rwanda), is part of the national policies of both countries as

set out in: (i) Rwanda’s "Vision 2020" and Economic Development and Poverty Reduction

Strategy; and (ii) Burundi’s "Vision 2025" and 2012-2015 Second Growth and Poverty

Reduction Strategy Paper (GPRSP II).

1.1.2 The North-South Corridor is also among the priority projects adopted within the

Economic Community of Great Lakes Countries (CEPGL) and in the transport strategy of the

East African Community (EAC), currently at the approval phase. The development of

regional integration transport infrastructure is a priority for the EAC, which has made

laudable efforts to set up a common market. The Bank's intervention on this corridor is in line

with the strategies outlined in the 2012-2016 Country Strategy Papers (CSPs) for Burundi

and Rwanda, and is channelled through the infrastructure development pillars contained

therein.

1.2 Rationale for Bank’s Involvement

1.2.1 The Bank has a comparative advantage in financing regional integration

infrastructure in Africa, compared with other financial and technical partners. Thus, it was

designated by NEPAD to lead the implementation of its transport infrastructure programme.

1.2.2 The current Bank involvement is a continuation of its previous funding of this

corridor: (i) a UA 13.5 million loan and a UA 1.5 million grant approved in October 2003 for

Rwanda for the rehabilitation of 50 km of roads (the World Bank concurrently financed a 30-

km stretch of the corridor in Burundi); (ii) a loan and grant totalling UA 100 million were

extended in 2008 to Rwanda and Burundi under of the Burundi-Rwanda Multinational Road

Project Phase II, for the construction of 101 km of roads (the 51 km Nyamitanga-Ruhwa road

in Burundi and the 50 km Cyangugu-Ntendezi-Mwityazo road in Rwanda) and the Single

Border Post (PCUF) at Ruhwa.

1.2.3 It is also consistent with the Bank’s 2011-2015 Regional Integration Strategy Paper

(RISP) for East Africa. The RISP aims to tackle one of the main challenges facing East

African integration, namely the poor regional transport infrastructure network that restricts

economic growth and trade expansion. The project is also consistent with: (i) the key thrusts

of the Bank’s Medium-Term Strategy (MTS 2008-2012), particularly with regard to

2

improving sea-access conditions for landlocked countries; and (ii) the Programme for

Infrastructure Development in Africa (PIDA).

1.3 Aid Coordination

1.3.1 In addition to the Bank, several other donors are involved in the transport sector in

both countries. These include the World Bank, the European Union, Arab Funds, JICA and

the China Exim Bank. As for USAID, it is primarily involved in financing rural roads in

Rwanda.

1.3.2 During project identification, preparation and appraisal missions, the Bank held

discussions with most of the development partners. Generally, as part of aid coordination, the

Bank and various development partners maintain sustained dialogue with the two

governments. In Burundi, meetings are held within the Partners’ Coordination Group (PCG).

In Rwanda, aid is coordinated through the Development Partners' Coordination Group

(GCPD). The two groups are broken down into sub-thematic groups responsible for sector-

based technical issues. The sub-thematic groups meet regularly.

Table 1.1: Aid Coordination

Sector or Sub-sector

Size

GDP Exports

Active

Population

Road Transport – Burundi * [N/A] [N/A] [N/A]

Road Transport – Rwanda ** [N/A] N/A [N/A]

Stakeholders - Annual Public Expenditure (average)

Burundi Rwanda

GBa Donors GR

b Donors

N/A. UA 104.79 million N/A AU 422.36 million

EU 11.52 EU 75.16

IDA 6.81 IDA 32.13

ADF 78.63 ADF 11.77

ABEDA 0.31 Arab Funds 83.88

OPEC 3.64 USAID 25.71

JICA 2.04 JICA 15.23

China Exim Bank 1.84 China Exim Bank 76.48

Level of donor coordination

Existence of leading working groups in Burundi and Rwanda Yes

Existence of SWAPs or integrated sector-wide approaches: in Burundi No (underway)

Existence of SWAPs or integrated sector-wide approaches: in Rwanda Yes

Involvement of ADF in aid coordination *** : in Burundi and Rwanda Yes/M

*

** Average (2006 – 2010) for transport

*** L: leader, M: member but leader, zero: no

involvement

‘a’ – five-year average (2006-2010)

‘b’ - five-year average (2007-2012)

2. PROJECT DESCRIPTION

2.1 Project Components

1.3.3 The project’s sector goal is to contribute to economic growth in Burundi and

Rwanda by developing transport infrastructure to enhance the competitiveness of their

economies. The specific objectives are: (i) reduce the general cost of transport on the North-

South corridor; (ii) reduce the border crossing time; and (iii) improve the living conditions of

the population within the project impact area (PIA) by facilitating access to basic services and

socio-economic infrastructure.

3

1.3.4 To achieve the above objectives, the project includes components that are presented

in Table 2.1 (see Appendix B for the rationale behind the design of each project component

Table 2.1

Project Components for Rwanda and Burundi

No. Component Name Total Cost

(UA million)

Component Description

1 Major Project Roads 74.98

In Burundi: Rehabilitation of the Lake Nyanza-Mabanda road

section (25 km) and construction the Mabanda-Mugina link (20 km).

In Rwanda: Construction of the Rubavu-Gisiza road (479 km).

In both countries: Control and supervision of works, awareness

campaign (HIV, road safety, and environmental protection).

2

Transport facilitation

measures

0.59

In both countries: - Studies on the facilitation of transport in the

Corridor covering the simplification and harmonization of the PCUF

operational procedures, including the drafting of a procedures

manual; an awareness campaign on the new simplified procedures to

be implemented; training of customs officers as well as PCUF users.

- Strengthening of the PCUF's information and communications

technology.

3 Ancillary activities 2.88

In Burundi: Construction of 25 km of feeder roads (including 5 km

using the labour-intensive approach), rehabilitation of a rural market

and a health centre, support to women's associations, rehabilitation of

traffic lights in Bujumbura.

In Rwanda: Construction of 25 km of feeder roads, construction of a

school fence school, rehabilitation of a market, including the

construction of counters for women and construction of two river

quays.

In both countries: Control and supervision of ancillary development

works.

4 Studies 0.49 In Rwanda: Road-related studies and studies on transport on Lake

Kivu.

5

Capacity building,

project management

and monitoring

0.72

In Burundi: Provision of IT equipment and accounting software, and

training for the OdR, support for the Government’s accession to

COST

In Rwanda: Training of TRDA officers

In both countries: Financial audits, road safety audits,

monitoring/evaluation of project impacts

6 Vacation of the

right-of-way 2.13

In both countries: Compensation of persons adversely affected by the

project

2.2 Technical Solutions Adopted and Alternatives Explored

2.2.1 In Rwanda, the development solution proposed involves building a 10 metre-wide

platform, comprising a 7 metre-wide floor and two shoulders of 1.5 m each. In built-up areas,

the shoulders will be 2 m wide. Typically, structure of the pavement will include: (i) a sub-

base course of selected natural materials, with an average thickness of 20 cm; (ii) a 20 cm-

thick base course of unsorted sand-gravel aggregate; and (iii) a 5 cm-thick surface course of

bituminous concrete. The shoulders will be double-coated.

2.2.2 In Burundi, the layout of the Mabanda-Mugina road section will comprise a platform

necessary for the reconstruction of a 7 metre-wide pavement and two shoulders of 1.5 metres

each. Typically, the structure of the pavement will include: (i) a sub-base course, 24 cm thick

on average, of lateritic gravel; (ii) an 18 cm-thick base course of crushed unsorted gravel

4

aggregate; and (iii) a 5 cm-thick surface course of bitumen-sand-gravel aggregate. The

shoulders will have two-layer surface coating. As for the Lake Nyanza-Mabanda section, the

solution is to scarify the existing pavement to transform it into a sub-base layer. A 15 cm-

thick course of crushed unsorted gravel will be built. The 5 cm-thick surface course will be of

bituminous concrete.

2.2.3 The proposed alternative technical solutions and the reasons for their rejection are

presented in Table 2.2 below:

Table 2.2

Proposed Alternative Solutions and Reasons for their Rejection

Alternative solution Brief description Reason for the rejection

Burundi:

- Construction of the Mugina-

Mabanda road section

involving the double-layer

coating of the pavement;

- Strengthening of the

Mabanda-Lake Nyanza road

section.

- - Sub-base course of laterite gravel

(20 cm); base course of cement-

enhanced laterite (cement floor),

with a double-coated wearing

course;

- Carry out only periodic

maintenance by replacing the

current degraded coating with a

double coating.

- Base course: difficult to

implement, non-

compliance with regional

standards (bituminous

concrete) for corridors;

- Due to the degradation of

the existing pavement, the

current base course cannot

be maintained.

Rwanda:

- Construction of the Rubavu-

Gisiza road section with a

double course.

- Sub-base course of lateritic gravel

and a base course of soil-cement

mixture, with a double-coated

surfacing.

Same reasons as stated above.

2.3 Project Type

The project is a standalone multinational operation that will be financed by a loan and two

grants from the ADF, through the lending facilities of the Bank's windows for performance-

based country allocations (PBA) and allocations for regional operations (RO).

2.4 Project Cost and Financing Arrangements

2.4.1 The total cost1 amounts to UA 81.79 million (USD 126.86 million). ADF

contribution stands at UA 72.55 million, corresponding to 89% of the total project cost. The

governments of Burundi and Rwanda will pour UA 3.07 million and UA 6.16 million into the

project, representing 10% and 12% of component costs in each country, respectively.

1 This estimate is based on detailed design studies, international standards and average unit costs of similar services and works

performed recently in both countries.

5

Table 2.3

Project Cost Estimates by Component

No. Components

UA (million)

Foreign

Exchange % Foreign

Exchange

Local

Currency Total

1 Major project roads 51.17 13.22 64.39 79%

2 Transport facilitation measures 0.32 0.19 0.51 63%

3 Related activities 1.95 0.52 2.47 79%

4 Studies 0.29 0.12 0.42 70%

5 Capacity building and project

management/monitoring 0.53 0.08 0.61 86%

Total base cost 54.26 14.13 68.39 79%

Physical contingencies 5.31 1.37 6.68 79%

Price escalation 3.64 0.95 4.59 79%

6 Vacation of the right-of-way 0.00 2.13 2.13 0%

Total project cost 63.21 18.58 81.79 77%

2.4.2 In Rwanda, the cost of the components (exclusive of taxes), as summarized in Table

2.4, is estimated at UA 51.22 million, broken down into foreign exchange (UA 38.99 million)

and local currency (UA 12.23 million) expenditure. In Burundi, the project cost is estimated

at UA 30.57 million, broken down into foreign exchange (UA 24.22 million) and local

currency (UA 6.36 million) expenditure.

Table 2.4

Project Cost Estimates by Component and Country (UA million)

No

. Components

Rwanda Burundi Foreign

Exchange

%

Foreign

Exchange

Local

Currency Total

Foreign

Exchange

Local

Currency Total

1 Major project

roads 32.3 8.34 40.57 18.93 4.87 23.80 79%

2

Transport

facilitation

measures

0.22 0.05 0.27 0.10 0.14 0.24 63%

3 Related activities 1.04 0.29 1.33 0.91 0.23 1.13 79%

4 Studies 0.16 0.07 0.23 0.13 0.06 0.19 70%

5

Capacity building

and project

management/

monitoring

0.16 0.02 0.18 0.37 0.07 0.44 86%

Base cost 33.81 8.77 42.58 20.44 5.37 25.81 79%

Physical

contingencies 3.33 0.86 4.19 1.98 0.51 2.49 79%

Price escalation 1.86 0.48 2.34 1.79 0.47 2.25 79%

6 Vacation of the

right-of-way 0.00 2.11 2.11 0.00 0.02 0.02 0%

TOTAL 38.99 12.23 51.22 24.21 6.36 30.57 77%

2.4.3 Table 2.5 shows ADF sources of financing, Tables 2.6 and 2.7 show the project

costs by expenditure category and the expenditure schedule by component.

6

Table 2.5

Sources of Financing

Source

Amount (UA million)

TOTAL Instrument GB GR

PBA RO CF PBA RO CF?

ADF 11 16.5 1.81 2.715 32.03 Grant

ADF 16.21 24,315 40,53 Loan

GB 3.07 3.07 CF

GR 6.16 6.16 CF

TOTAL 30.57 51.22 81.79

Table 2.6

Project Costs by Expenditure Category and by Country (UA million)

No. Category

RWANDA BURUNDI Project

Cost Sources of Financing

ADF GR Total ADF GB Total

1 Goods 009 0.00 0.09 0.09 0.00 0.09 0.19

2 Works 37.02 3.50 40.53 21.24 2.58 23.82 64.35

3 Services 1.94 0.02 1.96 1.88 0.00 1.88 3.84

Base cost 39.06 3.52 42.58 23.22 2.58 25.80 68.38

Physical contingencies 3.84 0.35 4.19 2.24 0.25 2.49 6.68

Price escalation 2.15 0.19 2.34 2.03 0.23 2.25 4.59

Vacation of right-of-way 0.00 2.11 2.11 0.00 0.02 0.02 2.13

Total 45.05 6.17 51.22 27.50 3.08 30.57 81.79

Table 2.7

Expenditure Schedule by Component

No. Component (UA million)

2012 2013 2014 2015 Total

1 Major roads 13.07 19.33 28.80 3.18 64.38

2 Transport facilitation measures - 0.33 0.18 - 0.51

3 Related activities 0.21 1.94 0.32 - 2.47

4 Studies - - 0.42 - 0.42

5 Capacity building and project

management/monitoring 0.17 0.02 0.19 0.22 0.61

Total base cost 13.46 21.61 29.91 3.40 68.38

Physical contingencies 1.33 2.13 2.91 0.32 6.68

Price escalation 0.90 1.45 2.00 0.23 4.59

6 Vacation of right-of-way 2.13 - - - 2.13

Total 17.82 25.20 34.82 3.95 81.79

2.5 Project Area and Beneficiaries

2.5.1 In Burundi, the project impact area (PIA) covers the communes of Mabanda and

Lake Nyanza, within Makamba Province. In 2011, this Province had an estimated population

of 483 100, or almost 5.3% of Burundi's total population. The population of Mabanda

commune is estimated at 64,247, of whom 33,017 or 51.4% are women, while that of the

Lake Nyanza commune is estimated at 112,752, including 56,638 women, i.e. 50.23%. In

Rwanda, the PIA consists of two districts (Rubavu and Rutsiro) in Western Province. This

7

Province has a population of two million, or 24% of the total population. The population of

the project impact area was estimated in 2010 at 706,000.

2.5.2 Both in Burundi and Rwanda, the economy of the project impact area (PIA) is

essentially based on subsistence agriculture and cash crops, mainly tea and coffee. Generally,

farms do not exceed one hectare and their management remains largely traditional. The lack

of farm-to-market transport infrastructure is one of the reasons for the high poverty rate

within the PIA. Completion of this project will have a definite impact on improving the living

conditions of the population of the area, including through job creation, income generation,

opening up of production areas, etc. These socio-economic impacts generated by the road

will be magnified by the ancillary works and the awareness-raising campaigns.

2.6 Participatory Approach for Project Identification, Design and Implementation

2.6.1 Various stakeholders (NGOs, local communities, associations, cooperatives, national

and local administrative and political authorities) were extensively consulted during the

project identification, preparation and appraisal missions in both Rwanda and Burundi. The

participatory sessions made it possible to have a better grasp of the complaints of the

inhabitants of the project impact area and to agree on the ancillary works to be financed as

part of the project.

2.6.2 In both countries, participatory consultation sessions were held with beneficiaries

during the ODA studies and the appraisal. About 1,000 persons were met, 45% of them

women. Plenary sessions were held with local communities and those affected by the

expropriations carried out as part of the project. In Burundi, the sessions held with persons

whose properties were likely to be expropriated offered an opportunity to take account of

other properties not listed in the consultant's study, particularly banana plantations. Thus, the

number of persons affected increased from 20 to 51. Studies on the Lake Nyanza-Mabanda

section did not mark any properties for expropriation.

2.7 Experience of the Bank Group, Lessons Learned from the Project Design

2.7.1 The project design took into account the Bank's experience in implementing

multinational infrastructure projects. The main difficulties facing the project relate to the

plethora of stakeholders and the inadequate involvement of regional economic communities.

This project drew from the gains of the institutional arrangements of the previous two

multinational projects, namely: (i) the establishment of implementation units that included

focal points in charge of project components other than works, such as transport facilitation;

(ii) the establishment of a sub-regional technical steering committee (CTP) under the aegis of

the CEPGL; and (iii) the drawing up of a bilateral agreement governing PCUF operation. The

project also factored in efforts made by the countries in mobilizing the counterpart financing,

particularly with regard to the procedure for funding Burundi's special account.

2.7.2 Furthermore, the staff of executing agencies have already received training in

management and project monitoring, while each country has been offered technical assistance

(road expert and transport economist). This has contributed to building capacity in both

countries. The consolidation of these two projects will improve the transport performance and

transport facilitation in Rwanda and Burundi, and ensure greater integration of Burundi and

Rwanda in the EAC.

8

2.8 Key Performance Indicators

2.8.1 The key performance indicators and expected outcomes upon project completion are

indicated in the results-based logical framework. They are: (i) the GDP growth rate; (ii) the

value of trade within the EAC; (iii) the general cost of transport; (iv) the border-crossing

time; (v) the increase in annual average daily traffic; (vi) the rural accessibility index; (vii)

the number of temporary jobs created; and (vii) the quantity of fruits produced locally. The

baseline for these indicators will be validated early in the project. An appraisal will be

conducted mid-term and at project completion by a consultant, in collaboration with the

RTDA in Rwanda and the Institute of Statistics and Economic Studies of Burundi

(ISTEEBU).

2.8.2 In addition to these impact indicators, outcomes and outputs, it is also necessary to

consider the Bank’s institutional performance indicators linked to the project implementation.

These are mainly: (i) the implementation timeframe and fulfilment of conditions precedent to

first disbursement of funds; (ii) procurement delays; (iii) the average project progress

indicator (PI); and (iv) the trend of the disbursement rate in relation to the expenditure

schedule. These indicators will be monitored during supervision missions and in the daily

management of the project

3. PROJECT FEASIBILITY

3.1. Economic Performance

3.1.1. The economic analysis was made using the HDM-4 model, based on the cost-benefit

analysis between situations “without” and “with” the project over a 20-year-period starting

from the commissioning of the road. A discount rate of 12% and a residual value of 25% are

taken into account. The costs considered are: (i) investment costs2; (ii) maintenance costs of

road sections and vehicle operating costs. The benefits are related to the general reduction of

transport cost (time savings and vehicle operating costs) and gains in the road maintenance

cost throughout the corridor. The cost of ancillary works and the agricultural value added

were considered in the model as costs and exogenous benefits. The normal average traffic

volume recorded in 2011 was approximately 300 vehicles per day on the Burundian section

of the corridor and 142 vehicles per day on the Rwandan section. The volume of heavy

vehicles on the project road is 33% on average on Burundi’s section of the road and 52% on

Rwanda’s section.

3.1.2. The assessment of the investment cost (2011 prices) of building the road sections in

bituminous concrete shows a 19.2% economic internal rate of return (EIRR) for the entire

project. A sensitivity analysis based on a simultaneous increase in investment costs by 10%

and a 10% decrease in benefits (worst case scenario) shows a 16.3% EIRR for the entire

project. It is clear from the foregoing that the development level adopted for the project road

is economically justified.

Table 3.1

Economic and Financial Figures (detailed calculation available in Annex E)

EIRR (baseline scenario),

NPV (12% discount)

19.22%, USD 58.51 million

EIRR (+10% of costs -10% profits),

NPV (12% discount)

16.3%, USD 34.27 million

2 Related to the works and their control, and to physical contingencies, excluding price escalation

9

3.2. Environmental and Social Impact

Environment

3.2.1. The project was classified under Category 1, given the nature of the works and the

combined number of persons affected. Environmental compliance certificates were issued in

July 2011 and February 2012 for the Rwandan and Burundian sections, respectively. The

summary of the Environmental and Social Impact Assessment (ESIA) and the Resettlement

and Compensation Plan were posted on the Bank's website on 8 February 2012, in

accordance with Bank rules and procedures.

3.2.2. The project’s main potential negative environmental impacts will be limited,

reversible and controllable through the implementation of appropriate mitigation measures.

The main positive and negative environmental impacts that the project could generate as well

as the proposed mitigation/improvement measures are described in Technical Annex E. The

estimated cost of ESMP measures stands at BIF 68,000,000 million and FRW 415,400,000

for Burundi and Rwanda, respectively.

Climate Change

3.2.3. Key Issues: Analysis of historical climate data shows that the effects of climate

change are already apparent in Burundi and Rwanda. They are related to the increase in mean

annual temperature and especially rainfall, which increases the risk of flooding and damage

of infrastructure, farmland, etc.

3.2.4. Adaptation measures: Adaptation options included in the project are: (i) appropriate

sizing of hydraulic structures, taking into account the rainfall and peak flow return periods;

(ii) weatherproofing of the road, especially in the valleys and plateaux; and (iii) planting of

trees and building of protective structures (retaining walls, riprap brickwork, gabions, etc.) in

slope areas.

3.2.5. Mitigation measures: Although there is no baseline data on greenhouse gas

emissions in the project area, a slight increase in the emission of gases is expected, compared

with the situation without the project, due mainly to increased traffic. Mitigation measures

under this project include: (i) the fluidity of traffic and speed control that may reduce CO2

emissions by 15% along this road; (ii) the planting of alignment trees over a distance of 150

m on either side of the road at the entrance and exit of each village crossed, which will help

to sequester some of the carbon emitted as a result of the road; and (iii) the raising of

environmental protection awareness, including by addressing topics related to water and soil

conservation techniques (WSC), deforestation control, etc.

Gender

3.2.6. In both countries, women are the key players in the agricultural sector, accounting

for 52.3%, compared to 38.8% for men. In the two districts covered by the project impact

area (PIA) in Rwanda, women make up about 53% of the total population. They occupy two-

thirds of informal sector jobs, account for roughly 90% of the area's staple food production

and are particularly active in food production activities and livestock, post-harvest operations,

handicraft and marketing. The PIA has several women's self-help groups. The advent of this

project may lead to time savings and a reduction in transport costs, thereby improving

women's access to various basic services. The monitoring and evaluation mechanism that will

10

be put in place under this project will allow for a more accurate assessment of the benefits

that women may derive from the project in terms of improved living conditions. During the

assessment of the impact on beneficiaries, these women will have an opportunity to indicate

their perception of the impacts of the project and the level to which it would have achieved its

objectives.

3.2.7. The road construction will have a positive impact on the situation of women in

Burundi and Rwanda, notably through: (i) the development of two health centres; and (ii) the

rehabilitation of two rural markets, mainly used by women. Moreover, women’s associations

in Burundi will receive support in the form of small agro-processing equipment such as

presses, grinders and mixers.

Social

3.2.8. In Burundi, about 30% of the population of the PIA is affected by poverty, which is

above the national average of 25%. In Rwanda, approximately 62% of the population in the

project area live below the poverty line, having as main sources of income agriculture,

livestock and fisheries. In both countries, the economy of the PIA is mainly based on

agriculture, followed by livestock and fisheries. Completion of this project will have a

definite impact in terms of improving the living conditions of residents of the project impact

area, especially by creating jobs through the labour-intensive approach to be used on 5

kilometres of feeder roads (pilot project), and also by generating income or opening up

production areas. These socio-economic impacts of the road will be magnified by the

execution of ancillary works and the conduct of awareness campaigns.

Road Safety

3.2.9. The road safety component consists essentially in conducting an audit during the

project execution. The audit involves validating the road safety aspects of the project design

prior to works start-up. This assessment will be based, among others factors, on identification

of accident-prone areas, using historical information available on the incidence of such

accidents. The audit will propose appropriate mitigation measures such as speed bumps and

speed restriction signs. The monitoring and control aspects of road safety will subsequently

be conducted during the works implementation phase. In parallel, road safety awareness

campaigns will be launched, with residents of the project area and road users as target.

Creating groups in villages to raise awareness among other villagers will be explored. An

audit will be conducted at the end of works to ascertain the proper implementation of project

measures. It is also advisable to document, in report form, the lessons derived from various

stages of implementation of the measures. These activities will complement the road safety

efforts of both governments detailed in Annex. It is worth noting that Rwanda is already

applying the SADC standards concerning horizontal and vertical signage.

Involuntary Resettlement

3.2.10. In Burundi, 51 persons, including 8 women (representing 13% of the project-

affected persons (PAPs)), are owners of restaurants, shops, residential buildings and banana

farms that will be affected during construction. The amount of compensation was estimated at

BIF 41,267,000 or approximately UA 0.02 million, payable by the Government of Burundi

prior to the start of works. A Summary Resettlement Plan (SRP) has been produced for this

road section, in accordance with Bank rules and procedures. Preparation and presentation of

the SRP as well as effective payment of compensation to PAPs are project conditions.

11

3.2.11. In Rwanda, 207 persons, including 62 women (representing 30% of the PAPs), are

owners of 136 residential buildings, 67 commercial buildings, two offices and a fence

(belonging to an agricultural cooperative) that the works will directly affect. Since a

household in the project area has an average of 5 to 10 members, the number of persons

affected by the 136 residential buildings stands at 1,042. Therefore, the total of number of

those who will be affected is estimated at 1,109 persons. The cost of compensation, flanking

measures and relocation is estimated at RWF 1,959,080,000, or about UA 2.41 million. This

amount will be paid by the Government of Rwanda, under the RAP provisions. A

comprehensive resettlement plan has been produced for this road section, in accordance with

Bank rules and procedures. Preparation and presentation of the SRP as well as effective

payment of compensation to PAPs are project conditions.

4. IMPLEMENTATION

4.1. Implementation Arrangements

4.1.1 Executing Agencies: In the two countries, the project components will be

implemented by their respective road authorities. In Rwanda, the executing agency will be

the Ministry of Infrastructure, through the “Rwanda Transport Development Agency”

(RTDA), and in Burundi, the same role will be played by the Ministry of Transport, Public

Works and Equipment through the Roads Authority (OdR). In Rwanda, the RTDA will

appoint a project coordinator (PC) to manage and coordinate all project activities. In Burundi,

the OdR will work with an existing team (the management unit set up under the Nyamitanga -

Ruhwa Project on the North-South Corridor) to ensure continuity and proper coordination of

activities on this corridor. The said unit will be backed up by a civil engineer and technical

assistance financed by the Bank under the NH5 (Nyamitanga-Ruhwa) and Gitega-Ngozi

Rehabilitation Projects Phases I & II. During execution, the project coordinators will use the

existing management systems in the areas of finance, procurement and the environment.

4.1.2 A performance contract will be signed between the Directors-General of the

executing agencies and task managers for an annual evaluation of their performance. For

better monitoring of the transport facilitation component, a focal point from the Ministries in

charge of Transport will be appointed. Before appointing the future project coordinators, their

CVs will be approved by the Bank.

4.1.3 Institutional Arrangements: As part of their services, control missions will train the

counterparts of the two governments and will provide them support (IT equipment, training in

developing price structures, archiving and using accounting software). Furthermore, the

entire project implementation will be coordinated by the Technical Steering Committee

(CTP) established under the previous project on the corridor (the project is on-going). The

CTP will coordinate the project activities related to the transport facilitation component. At

the end of the on-going project on the corridor, the operating costs of the CTP will be borne

by the counterpart funds.

Procurement

4.1.4 All goods, works and consulting services financed from Bank resources will be

procured according to Bank Rules and Procedures for the Procurement of Goods and Works

or Rules and Procedures for the Use of Consultancy Services (May 2008 edition), whichever

applies, using standard Bank competitive bidding documents. The OdR and RTDA will be

12

responsible for the procurement of goods, works and services (as appropriate) as described in

detail in Annex B.

Financial Management and Disbursement Arrangements

4.1.5 In Rwanda, financial and accounting management will be provided by the RTDA

unit in charge of Finance, which has the IT tools (management software) and needed capacity

for the analytical and accounting management of projects. In Burundi, financial and

accounting management will be the responsibility of the OdR. To strengthen the effectiveness

level of the OdR, provision has been made to: (i) support staff training and re-training

programmes; (ii) review the existing manual of administrative and financial procedures; (iii)

improve the performance of the accounting software; and (iv) identify and codify fixed assets

for better control. Details of the financial management of each executing agency are provided

in Annex B.

4.1.6 The direct disbursement method will be used for goods, works and consultancy

services financed from the ADF grants and loan. The authorities will forward to the Bank,

after verification and certification, invoices and statements from suppliers, contractors and

consultants for settlement. In Burundi, the Government has chosen to open a special account

bearing the project’s name at a local bank acceptable to the ADF to keep the counterpart

funds. This account will be funded annually, according to the annual schedule of expenditure.

Evidence of opening of the account and regular payment into it by the Donee is a project

condition.

4.2. Monitoring

4.2.1. Project implementation will be monitored at several levels. First, there is close

monitoring to be provided by the Bank’s offices in Rwanda and Burundi. Qualified

consultants will be hired to control and monitor the quality and progress of work on a daily

basis. The executing agencies are responsible for coordinating all project activities in each

country and will produce quarterly progress reports, including the implementation status of

ESMP measures.

4.2.2. Environmental and social impact monitoring will be conducted by the executing

agencies directly responsible for implementing the ESMP and RAP. The executing agencies

are expected to submit quarterly progress reports to the Bank, detailing the implementation

status of the ESMP measures. The consultant responsible for works supervision will ensure

full compliance with the mitigation measures contained in the ESMP and RAP. The RTDA

and OdR will also be responsible for monitoring the ESMP and RAP.

4.2.3. Financial management and auditing will be monitored through the accounting and

reporting procedures. The executing agencies provide for a mid-term review of the project as

well as the preparation of the project completion report by the end of the project.

4.2.4. The monitoring and evaluation (M & E) mechanism that will be operational from

project start to finish will monitor the project’s impacts in Burundi and Rwanda through the

logical framework indicators. This mechanism will: (i) specify the project indicators and set a

baseline for project impact monitoring requirements; (ii) collect and manage information on

the level of implementation of various project components through a relational database; and

(iii) conduct impact assessments at mid-term and at project completion, based on the same

method as that used to define the baseline situation.

13

Project Monitoring and Supervision Table

Timeframe Stage Control Process Monitoring

Activities T3-2012 Project launch Field mission Progress report

T1-2013 Project consideration-

procurement, reinstallation

Field mission/

Supervision Progress report

T3-2013, T1 & T3

2014 & 2015 Construction works

Field mission/

Supervision Progress report

T1-2016 Project completion Field mission Project completion

report

T1-2017 Guarantee period and first

year of activities

Field mission/

Transport facilitation

Transport facilitation

control report

4.3. Governance

4.3.1 In Burundi, strengthening governance and the fight against corruption remain major

challenges. The “Transparency International” indicator ranked the country 172nd

in 2011. In

addition, the Mo Ibrahim Governance Index shows that it maintained the overall score of

45/100 between 2009 and 2010, ranking 33rd

out of 53 African countries. Nevertheless, an

improvement of the situation is noted since the establishment of the Ombudsman Office in

late 2010 to fight corruption. Concerning economic governance, Burundi has made some

progress in improving its business climate with the adoption of the new Investment Code in

2008. The Code contains additional incentives for investors, particularly with regard to

warranty, freedom to transfer capital and dividends, and a streamlined approval process. In

addition, the country has agreed to accede to the Construction Sector Transparency Initiative

(COST)3. This project will help the country to put in place the first instruments required for

accession. A detailed note on COST is presented in the Technical Annexes.

4.3.2 Rwanda has adopted a firm position in principle on good governance, characterized

by zero-tolerance of corruption, aimed at promoting transparency and accountability in

managing public funds. Rwanda ranks 49th

out of 180 countries (Transparency International

2011) in terms of corruption, which is a significant improvement compared to 2009 (89th

out

of 180), and occupies a better position compared to its neighbours in the rankings and on the

basis of the Mo Ibrahim Governance Index in Africa. The Bank’s CPIA also shows an

improvement in overall rating from 3.25 in 2005 to 4.27 in 2009. At sector level, Rwanda has

a reputation as a country with a low incidence of corruption and a comparative regional

advantage in the regulatory system, judicial and institutional governance, and macroeconomic

stability. It is currently introducing a financial management system and decentralized

procurement, including the following: (i) establishment of a financial and accounting section;

(ii) establishment of a Public Procurement Board; and (iii) finalization of financial

management and procurement manuals.

3 COST is an international initiative supported by DFID and the World Bank to foster greater transparency and accountability in the

construction sector. In this regard, the initiative recommends the publication of information on the various stages of a project cycle,

such as the project content, its cost, the agencies and contractors involved, contract awards and any changes to the initially agreed terms.

Such transparency would help to boost efficiency and win the trust of domestic and foreign investors.

14

4.4. Sustainability

4.4.1 The project's sustainability hinges on the quality of works, the operating and

maintenance of infrastructure in place. It is in this light that extensive technical studies were

conducted for the project and the roads designed to comply with acceptable norms.

Furthermore, the trunk road and ancillary works will be procured through international

competitive bidding, thus guaranteeing the quality of the contractors selected. Regarding

infrastructure maintenance, the country has dedicated structures.

4.4.2 In Rwanda, the national road network is maintained by the Road Maintenance Fund

(FER) whose resources are derived mainly (70%) from road user charges4, at the rate of a

fixed amount of RWF 62.39 (USD 0.104) per litre, and toll revenue5 (about 30%). The Road

Fund is able to carry out routine maintenance on the classified network. For periodic

maintenance, given the accumulated deficit, the government continues to rely on financial

support from development partners. The resources allocated annually to the maintenance of

paved and earth roads of the national classified network increased from RWF 7 billion in

2007 to RWF 15.30 billion in 2011. Moreover, to combat the overloading of heavy vehicles,

there are plans to establish a system of penalties whose application is scheduled for end- 2014

following the installation of axle-load scales on the road network. The maintenance of feeder

roads and ancillary works will devolve upon village communities organized to that end.

4.4.3 In Burundi, road maintenance is financed by the National Road Fund (FRN), 80% of

whose resources are derived from the fuel tax. The routine road maintenance needs currently

estimated at BIF 15 billion per year will be increased to BIF 17 billion in 2014. Over the past

five years, road maintenance funds have increased from BIF 1.5 billion to 9.75 billion,

covering 65% of needs, and these efforts will be pursued by an increase in fuel tax from BIF

80/litre to BIF 120/litre from 2013. This will help to cover the recurrent maintenance needs.

Given the large proportion of heavy vehicles on the Corridor and to offset road degradation, a

programme to install axle-scales will be put in place with funding from the EU at the border

and Bujumbura Port, thus ensuring more effective control of the axle load both upstream (the

border) and downstream (the port). Regarding the organization of road maintenance,

technical assistance has been put in place as part of an on-going project to improve road

maintenance programming and management. OdR entrusts feeder road maintenance to the

Community Development Associations (ACD). Rural market maintenance is the

responsibility of the management committees of such markets. For their part, health centres,

will revert to the Ministry of Health once rehabilitation is completed. Yearly transmission to

the Bank of resources mobilized for road maintenance is a project condition.

4.4.4 At the institutional level, it is worth noting that there is a need for an efficient road

network management system. A Road Data Bank (BDR) charged with collecting, processing

and managing road data exists within the OdR, but is no longer functional since 2010 due to

lack of technical staff. The assignment of appropriate staff to BDR by mid-2013 is a

project condition.

4 Deducted directly from the sale of fuel 5 Collected mainly at the borders

15

4.5. Risk Management

4.5.1 The main risk likely to hinder the achievement of the project's impact is (i) political

instability in the East African region. The key risks identified in the results are: (ii)

discontinuation of the regional integration policy; (iii) insufficient resources of the road

funds; and (iv) non-operability of PCUF. Regarding outcomes, the main risk identified is: (v)

works cost overrun.

4.5.2 These risks are mitigated by the following measures and actions: (i) continuation of

efforts to pacify the region, under the auspices of the EAC to which both countries belong;

(ii) the commitment of Rwanda and Burundi to regional integration initiatives of the EAC

and the drafting of a protocol for a common market in the sub-region; (iii) Burundi’s

commitment to increase the fuel tax base from 2013; (iv) the appointment of a PCUF

manager and the extension of the application of the agreement signed by both countries for

the Nemba border post to this post; and (v) updating the project studies immediately prior to

project appraisal along with the launching of an international competitive bidding

procedure.

4.6. Knowledge Building

4.6.1 The project affords an opportunity to improve knowledge on priority regional

infrastructure in accordance with Bank Group’s RISP (2011-2015). The project includes

studies that will define: (i) additional specific and appropriate transport facilitation measures

that will take into account the physical specificities of the borders of both countries; and (ii)

the actions to be implemented to reduce transport cost on the corridor.

4.6.2 The project impact assessment conducted in each country by permanent structures is

designed especially to meet the need for knowledge building and ownership by national

authorities. Establishing the baseline before project start-up will provide a basis for

comparison to realistically assess the level of achievement of the project’s development

objectives. Comparison data will come from the results of the project impact assessment upon

completion of works.

5. LEGAL FRAMEWORK

5.1. Legal Instrument

5.1.1 The legal instruments of the project are a Loan Agreement for the loan extended to

Rwanda and two Protocol Agreements for the grants awarded to Rwanda and Burundi.

5.2. Conditions Associated with Bank’s Intervention

5.2.1 The ADF loan and grant shall fulfil the following special conditions.

A) Conditions precedent to loan and grant effectiveness

The effectiveness of the grants is subject to the signing by Burundi and Rwanda of the related

protocol agreements. The effectiveness of the ADF loan is subject to fulfilment by Rwanda of

the requirements under Section 12.01 of the General Conditions Applicable to Loan and

Guarantee Agreements (Sovereign Entities) of the Fund.

16

Republic of Rwanda

Conditions Precedent to First Disbursement of the Grant and Loan

The obligation of the Fund to release the first disbursement of the loan and grant shall be

subject to effectiveness of the protocol agreements and the loan agreement, pursuant to

paragraph 5.2.1 above, and evidence of fulfilment of the following conditions to the satisfaction

of the Fund, in both form and substance:

(i) Provide to the Fund, evidence of the development and presentation of a

Resettlement Action Plan (RAP) (paragraph 3.2.10); and

(ii) Provide to the Fund, evidence of: (a) actual payment of compensation to each

project-affected person (PAP) entitled to compensation; and (b) relocation of

each PAP entitled to relocation, in accordance with the RAP (paragraph 3.2.

11).

Republic of Burundi

Conditions Precedent to First Disbursement of the Grant

The obligation of the Fund to make the first disbursement of the grant shall be subject to

effectiveness of the protocol agreement in accordance with paragraph 5.2.1 above, and

evidence of fulfilment of the following conditions to the satisfaction of the Fund, in both

form and substance:

i. Provide to the Fund, evidence of the development and presentation of a

Resettlement Action Plan (PAR) (paragraph 3.2.10); and

ii. Provide to the Fund, evidence of: (a) actual payment of compensation to each

project-affected person (PAP) entitled to compensation; and/or (b) relocation

of each PAP entitled to relocation, in accordance with the RAP (paragraph

3.2.11);

iii. Provide evidence of the opening of a special account in a bank acceptable to

the Fund and deposit into the special account of BIF 250 million, representing

the expenditure of the first quarter of the project as counterpart funding

(paragraph 4.1.6);

Other Conditions

In addition, the Donee shall:

i. Provide evidence of annual replenishment of the counterpart funds account,

based on the expenditure schedule (paragraph 4.1.2);

ii.

Communicate to the Fund, no later than mid-2013, evidence of appropriate

staffing of the Road Data Bank to enable it to resume its activities (paragraph

4.4.4);

iii. Communicate to the Fund, no later than 31 December of each year, the amount

of funds secured for priority highway maintenance (4.4.3).

17

5.3. Compliance with Bank Policies

The project complies with the Bank’s policy on expenditure eligible for financing, and the

Bank’s recommendations on Road Works Unit Cost Study. It is also consistent with the CSPs

on Burundi and Rwanda.

6. RECOMMENDATION

Management recommends that the Board approve the extension of the (i) ADF Grant

Proposal of UA 27.50 million to the Republic of Burundi; (ii) ADF Grant Proposal of UA

4.525 million to the Republic of Rwanda; and (iii) ADF loan of UA 40.525 million to the

Republic of Rwanda, for the purposes and subject to the conditions stipulated in this report.

Appendix I

Comparative Socio-economic Indicators

Development Indicators

Social Indicators Burundi Rwanda

Africa Developing

countries 1990 2011 1990 2011 Area (000 Km²) 28 26 30 323 80 976

Total Population (millions) 5.6 8.6 7.1 10.9 1 044.3 5 732.2

Annual Population Growth Rate (%) 2.4 2.3 - 0.2 3.0 2.3 1.3

Life Expectancy at Birth -Total (years) 46.4 51.4 32.7 51.5 56.0 67.1

Child Mortality Rate (per 1,000) 122.5 94.6 124.8 94.4 78.6 46.9

Physicians (per 100,000 people) 5.8 … … 2.0 58.3 109.5

Births attended by Trained Health Personnel (%) … 33.6 … 38.6 50.2 64.1

Child Immunization against Measles (% of

children 12-23 months) 74.0 92.0 83.0 82.0 77.9 80.7

Gross Enrolment Ratio- Primary school (%) 70.6 156.3 75.6 142.6 100.4 107.2

Girls/Boys Ratio - Primary school (%) 80.4 98.8 98.5 102.1 90.9 100.0

Literacy Rate (% of population >15 years) 37.4 66.6 … 70.7 65.1 80.3

Access to Safe Water (% of population) 70.0 72.0 65.0 65.0 64.5 84.3

Access to Health Services(% of population) 44.0 46.0 29.0 54.0 41.0 53.6

Value of HDI (Rank among 187 countries) … 185.0 … 166.0 N/A N/A

Human Poverty Index (HPI-1) (% of Population) … 36.4 … 32.9 34.7 …

Macroeconomic Indicators Burundi Rwanda

2009 2010 2011 2009 2010 2011

GNI per capita, Atlas method ( current) 152 173 … 465 503 …

GDP (Million dollars current) 1 252 1 410 1 584 5 266 4 520 4 765

Real GDP Growth (% annual) 3.4 4.0 4.5 4.1 7.5 7.0

Real GDP Per Capita Growth (% annual) 0.6 1.4 2.1 1.0 4.4 3.9

Gross Domestic Investment (% of GDP) 25.0 25.9 28.2 21.6 20.6 20.9

Inflation (% annual) 10.7 5.7 9.7 10.3 2.3 3.9

Budget balance (% of GDP) -2.0 -3.0 -5.2 -0.8 0.0 0.0

Trade, External debt & Financial flows 2009 2010 2011 2009 2010 2011

Variation in Volume of Exports (%) 152 173 … 465 503 16.0

Variation in Volume of Imports (%) 6.3 4.9 -1.8 5.7 4.5 13.3

Variation in Terms of Trade 38.5 -30.9 50.2 -36.1 -6.1 -7.1

Trade Balance (Million USD) -233.6 -305.7 -338.9 -814.4 -779.4 -954.7

Trade Balance (% of GDP) -18.7 -21.7 -21.4 -15.5 -17.2 -20.0

Current Account Balance (USD Mn ) -213.8 -163.9 -174.3 -383.7 -270.9 -247.5

Current Account Balance (% of GDP) -17.1 -11.6 -11.0 -7.3 -6.0 -5.2

Debt Service (% of exports) 1.7 1.2 7.1 1.7 2.7 5.3

Total External Debt (% of GDP) 29.1 29.7 30.1 14.0 17.2 19.6

Net Total Financial Flows (USD Mn) 521.9 … … 1026.0 … …

Net Official Development Assistance (Mn USD) 548.8 … … 934.4 … …

Net Direct Investments (USD Mn) 9.9 14.1 … 118.7 42.3 …

International Reserves (months of imports) 3.9 3.3 … 3.7 3.9 …

Private sector development and

infrastructure

2005 2010 2011 2005 2010 2011

Time taken to Start a Business (days) 14 14 14 18 3 3

Investor Protection Index (0-10) 3.3 3.3 6.0 2.7 6.3 6.3

Landline Subscribers (per 1,000 people) 4.3 3.9 … 2.6 3.7 …

Internet Users (per 1,000 people) 21.1 137.2 … 24.2 334.0 …

Paved Roads (% of total roads) 29.4 … … … … …

Railway, Goods transported (million ton-km) … … … … … …

A. Table of Bank Portfolio in Burundi

Sector Project Name Approva

l Date Signature

Effective

ness

date

Effect.

For 1st

Disb

Net

Commi

tments

(UAM)

Disburs

ed

Amoun

t

(UAM)

Disburs

ement

Ratio

(%)*

Last

Disb.

Closing

Date

Projec

t age

Perf Status*

*

Agriculture Lake Tanganyika Development Programme (Regional) 17-Nov-04 12-Jan-05 13-Jan-06 19-Dec-08 5.0 1.6 32.4 25-Apr-12 31-Dec-13 7.5 PPP

Agriculture Bugesera Rural Development Project (Regional) 25-Sep-09 4-Nov-09 4-Nov-09 6-Apr-10 15.0 1.3 8.5 13-Apr-12 31-Dec-15 2.6 PPP

Sub Total 20.0 2.9 14.4 5.1

Power Rehabil. and Exten. of Electric Infrastructure 5-Jul-07 17-Aug-

07 17-Aug-07

24-Aug-

07 7.3 6.7 92.2 24-Apr-12 30-Sep-12 4.9

Satisf

Power NELSAP Interconnection Project (Regional) 27-Nov-08 16-Mar-

09 16-Mar-09 7-Jul-11 15.2 0.4 2.6 6-Mar-12 31-Dec-14 3.5

Satisf

Sub Total

22.5 7.1 31.8

4.2

Social Multisector Resettlement Project (Loan) 13-Dec-04 12-Jan-05 1-Oct-05 1-Oct-05

17.0 8.3 48.7 10-Feb-12

30-Nov-

12 7.5 Satisf

Social Job-Creation Project 24-Jun-09 14-Sep-09 14-Oct-09

24-Nov-09 25.0 3.1 12.5

14-Feb-12 31-Dec-13 2.9 Satisf

Sub Total 42.0 11.4 27.2 5.2

Transport Gitega- Nyangungu-Ngozi Project, Phase 1 27-Sep-10 23-Feb-11 23-Feb-11 5-Dec-11 24.1 4.7 19.7 24-Apr-12 31-Dec-13 1.6 Satisf

Transport Gitega-Ngozi Project, Phase 2 (FSF Grant) 29-Jun-11 16-Mar-

12 16-Mar-12 Not Yet 32.0 0.0 0.0 0-Jan-00 31-Dec-15 0.8

Transport Gitega-Ngozi Project, Phase 2 (ADF Grant) 29-Jun-11 16-Mar-

12 16-Mar-12 Not Yet 10.0 0.0 0.0 None 31-Dec-15 0.8

Transport Kicukiro-Kirundo Road Project 20-Sep-06 30-Oct-06 30-Oct-06 15-Mar-

07 30.2 27.0 89.5

21-Mar-12

31-May-12

5.7 Satisf

Transport Nyamitanga-Ruhwa-Ntendezi-Mwityazo Road 16-Dec-08 16-Mar-

09 16-Mar-09 6-Jan-11 50.6 9.5 18.8

29-Mar-

12 31-Dec-13 3.4 Satisf

Transport Isaka-Kiga/Keza-Musongati, Railway, Phase 2 17-Nov-09 12-Feb-10 12-Feb-10 13-Apr-11 1.7 0.0 0.0 0-Jan-00 31-Dec-12 2.5 Satisf

Sub Total 148.6 41.3 27.8 2.5

Water/

Sanitation

Rural Hydraulic Infrastructure Rehabilitation and

Extension Project 14-Dec-05 13-Jan-06 13-Jan-06 10-Apr-07 12.0 8.7 72.9 20-Jun-11 30-Dec-12 6.5 PPP

Water/ Sanitation

Rehabil. and Exten. of Electric Infrastructure 5-Jul-07 17-Aug-

07 17-Aug-07

24-Aug-07

7.3 6.7 92.2 24-Apr-12 30-Sep-12 4.9 Satisf

Water/

Sanitation

Lake Victoria Water and Sanitation Programme

(Regional*) 17-Dec-10 4-Apr-11 4-Apr-11

23-Nov-

11 14.1 0.2 1.4

13-Mar-

12 31-Dec-15 1.4 Satisf

Grand Total 266.5 78.4 29.4 4.2

Source: SAP PS Module, EARC, Apr 2012

Note: *PP = Problematic Project, PPP = Potentially Problematic Project

NB

** Loans/Grants not signed and not included in

denominator

3

Agric. UA 20.0 mil

7%

Power UA22.5 mil

8%

Social UA 42.0

16% Transport

UA 148.6 mil 56%

Water & Sanitation.

UA 33.5 mil 13%

Sector Project Name

Source

of

funding

Approval

Signature

(DD/MM/

YY)

Effectivene

ss

Net

Commit

ments

Disbursement

Ratio (%)

Private

Sector

Industries & Mines Cimerwa expansion

Project

ADB 6/10/10 N/A N/A 000 0.0

Power Kivu Watt ADB 3/02/ 11 N/A N/A 0.00 0.00

Finance Rwanda Development

Bank

ADB 19/11/10 N/A 0.00 0.00

Total Private Sector 0.00 0.00

Public Sector Agriculture Bugesera Agricultural

Development Support

ADF-G 24/07/06 11/10/06 11/10/200

6

10.00 41.00

Livestock Infrastructure

Support Program

ADF 29/06/11 26/07/11 N/A 21.81 0.00

PPF LISP ADF 20/11/10 01/06/11 N/A 0.50 0.00

Sub-Total

Agriculture

02/01/00 32.31 13.7

Multisector Poverty Reduction Support

Program, Phase 4

ADF 15/07/11 18/07/11 18/07/11 23.19 100.0

Competitiveness and

Enterprise Dev. Proj

ADF-G 29/12/08 06/03/09 04/11/11 5.00 8.4

Support to policy and

Strategy Development

ADF-G 18/09/09 14/12/09 14/12/09 1.00 7.1

Sub-Total

Multisector

29.19 38.5

Transport Road Infrastructure Project ADF 8/10/03 6/11/03 12/10/04 13.5 88.0

Road Infrastructure Project ADF-G 8/10/03 6/11/03 6/11/03 1.50 63.1

Gitarama-Ngororero-

Mukumira Road Project

ADF 20/12/04 25/02/05 8/09/05 15.20 89.6

Butare-Kitabi-Ntendezi

Road Project

ADF-G 25/03/09 13/05/09 13/05/09 16.00 20.6

Sub-Total

Transport

46.20 65.30

Water and

Sanitation

Second Rural Water

Supply (RWS) Programme

ADF-G 1/07/09 10/09/09 12/03/10 10.00 27.50

Sub-Total Water

and Sanitation

10.00 27.50

Total Public-

National

132.30 30.1

Multinational

Public

Agriculture Bugesera-Rwanda Rural

Dev. Project

ADF-G 25/09/09 16/10/09 16/10/09 14.98 3.5

Power NELSAP-NBI-Rwanda ADF-G 27/11/08 16/03/09 16/03/09 30.47 0.0

Assessment of the Rusumo

power transmission lines

(RW/BI/…)

ADF-G 27/10/06 30/04/07 14/09/07 2.57 65.4

Transport Nyamitanga-Ruhwa-

Ntendezi-Mwityazo Road

ADF-G 16/12/08 16/03/09 16/03/09 50.62 19.0

Dsm-Isaka-Kigali Railway,

Phase II

ADF-G 17/11/09 12/02/10 12/02/10 1.67 0.0

Kicukiro-Kirundo Road

Project

ADF-G 20/09/06 30/10/06 30/10/06 15.30 91.0

Total Public

Multinational- 115.61 29.81

Total Public Sector 247.91 29.9

Total Public and

Private Sectors 247.91 29.9

Appendix III

Major Related Projects Financed by the Bank and other Development Partners in

Burundi

No. Donors Project Amount (UA million)

1 EDF Development and Asphalting of the Gitega-Karuzi Road and

Gitega Bypass 34.56

2 EDF Development and Asphalting of the Ruyigi-Cankuzo Road 19.00

3 OPEC Complement to the Development and Asphalting of the Kicukiro-

Kirundo Road (Gasenyi-Kirundo section)

7.71

4 ABEDA Development and Asphalting of the Bubanza-Ntamba Road 14.14

5 IDA Road Sector Development Project 29.25

6 ADF Kicukiro-Kirundo Road Project (Gasenyi-Kirundo section) 14.90

Appendix III.2: Major Related Projects Financed by the Bank and other Development

Partners in Rwanda

No Donors Project Name (lot) Amount (UA

million)

1 EDF Rehabilitation of the Kigali-Gatuna Road 40.60

2 EDF Sector Support (support to feeder roads rehabilitation) 34.56

3 ADF

Rehabilitation of the Bate-Kitabi-Ntendezi Road (lot3) 10.28

Study of the Dar Es Salaam –Isaka-Kigali/Keza-Musongati Railway (phase II) 1.07

Rehabilitation and Development of the Rusizi-Ntendezi-Mwiyazo Road (lot3) 32.52

4 ADF Road Infrastructure Project 15.00

5

ADF

Gitarama-Ngororero-Mukamira Road (Ngororero-Mukamira section)

15.20

ABEDA 6.43

OPEC 6.43

KDF 6.66

6

ABEDA

Kicukiro-Kirundo Road Project (Kicukiro-Mayange section)

4.82

OPEC 4.18

FSD 8.35

FAD 15.30

7 China Exim Bank

Development of the Rusizi-Ntendezi-Mwiyazo-Rubavu Road (lots 4 &5) 76.48

8

ABEDA

Development of the Rusizi-Ntendezi-Mwiyazo-Rubavu Road (lot7: Gisiza-

Rubengera)

7.07

KDF 8.35

OPEC 7.07

SDF 8.35

9

ABEDA

Bate-Kitabi-Ntendezi Road Rehabilitation Project (lot 2:30 km)

6.43

SDF 6.43

OPEC 3.21

10 JICA Construction of the Rusumo Bridge+ One Stop Border Post 15.23

11 World Bank Rehabilitation of the Kigali-Musanze Road 32.13

12 USAID Earth Roads Maintenance Programme (district roads and feeder roads) + Capacity

Building 25.71

Appendix IV

Map of the Project Area

Annex A

Page 1/2

Detailed Cost Estimate by Component in Burundi

BIF Million USD Million UA Million

Components F. Exch L.C. Total F. Exch. L.C. Total F. Exch. L.C. Total

1. Road Works 40,800.00 10,500.00 51,300.00 29.37 7.56 36.92 18.93 4.87 23.81

1.1. Works on the Mugina-Mabanda Section 19,200.00 4,800.00 24,000.00 13.82 3.45 17.27 8.91 2.23 11.14

1.2. Works on the Mabanda-Lake Nyanza Section 20,000.00 5,000.00 25 ,000.00 14.40 3.60 17.99 9.28 2.32 11.60

1.3. Works Control and Supervision 1,600.00 400.00 2,000.00 1.15 0.29 1.44 0.74 0.19 0.93

1.4. Sensitization of the population 0.00 300.00 300.00 0.00 0.22 0.22 0.00 0.14 0.14

2. Ancillary Developments 1,956.00 489.00 2,445.00 1.41 0.38 1.76 0.91 0.23 1.13

2.1. Rehabilitation of ancillary feeder roads 800.00 200.00 1,000.00 0.58 0.14 0.72 0.37 0.09 0.46

2.2. Construction of the Musenyi Market 440.00 110.00 550.00 0.32 0.08 0.40 0.20 0.05 0.26

2.3. Construction of the Musenyi Health Centre 280.00 70.00 350.00 0.20 0.05 0.25 0.13 0.03 0.16

2.4. Provision of traffic lights and road signs for the city of Bujumbura 240.00 60.00 300.00 0.17 0.04 0.22 0.11 0.03 0.14

2.5. Support for women's associations

2.6. Control and monitoring of ancillary works 120.00 30.00 150.00 0.09 0.02 0.11 0.06 0.01 0.07

76.00 19.00 95.00 0.05 0.04 0.07 0.04 0.01 0.04

3.Studies 280.00 120.00 400.00 0.20 0.09 0.29 0.13 0.06 0.19

3.1. Studies on the Bujumbura city bypass 280.00 120.00 400.00 0.20 0.09 0.29 0.13 0.06 0.19

4. Transport and Trade Facilitation Measures 219.38 294.02 513.40 0.16 0.21 0.37 0.10 0.14 0.24

4.1. Provision of IT equipment 0.00 200.00 200.00 0.00 0.14 0.14 0.00 0.09 0.09

4.2. Study on Mugina/Bujumbura/Ruhwa/Gisenyi Corridor 219.38 94.02 313.40 0.16 0.07 0.23 0.10 0.04 0.15

5. Capacity Building 80.00 145.35 225.35 0.06 0.10 0.16 0.04 0.07 0.10

5.1. Support for Burundi’s accession to COST 80.00 20.00 100.00 0.06 0.01 0.07 0.04 0.01 0.05

5.2. Provision of computer terminal, accounting and training software 0.00 64.35 64.35 0.00 0.05 0.05 0.00 0.03 0.03

5.3. Training in the development of pricing structures and training of

assistants 0.00 61.00 61.00 0.00 0.04 0.04 0.00 0.03 0.03

6. Project Management and Monitoring 723.34 0.00 723.34 0.52 0.00 0.52 0.34 0.00 0.34

6.1. Audit of project accounts 117.34 0.00 117.34 0.08 0.00 0.08 0.05 0.00 0.05

6.2. Audit of road safety aspects 115.00 0.00 115.00 0.08 0.00 0.08 0.05 0.00 0.05

6.3. Technique audit of project 115.00 0.00 115.00 0.08 0.00 0.08 0.05 0.00 0.05

6.4. Monitoring-evaluation of project impact 376.00 0.00 376.00 0.27 0.00 0.27 0.17 0.00 0.17

Base cost 44,058.72 11,548.37 55,607.09 31.71 8.34 40.03 20.45 5.36 25.80

Physical Contingencies (PC) 10% 4 275.60 1,098.90 5,374.50 3.08 0.79 3.87 1.98 0.51 2.49

Price Escalation [7.96% x (base cost+PC)] 3 847.41 1,006.72 4,854.13 2.77 0.72 3.49 1.79 0.47 2.25

7. Vacation of the right-of-way 0.00 41.27 41.27 0.00 0.03 0.03 0.00 0.02 0.02

7.1. Land procurement, compensation for land, crops, etc. 0.00 41.27 41.27 0.00 0.03 0.03 0.00 0.02 0.02

GRAND TOTAL, NET OF TAXES AND DUTIES 52,181.73 13,695.26 65,876.99 37.56 9.89 47.42 24.22 6.36 30.57

Annex A

Page 2/2

Detailed Cost Estimate by Component in Rwanda

COMPONENTS

COSTS IN MILLION

RWF USD UA

Foreign Exchange Local Currency (LC) Total F. Exch LC Total F. Exch LC Total

1. Main Road Project

40.58

1.1 Works 29,132.20 7,280.80 36,413.00 48.72 12.18 60.89 3.41 7.85 39.26

1.2 Works control and supervision 764.48 327.64 1,092.12 1.28 0.55 1.83 0.82 0.35 1.18

1.3 Road safety awareness

129.85 129.85 - 0.22 0.22 - 0.14 0.14

2. Ancillary Developments

-

-

1.33

2.1 Markets 113.20 28.30 141.50 0.19 0.05 0.24 0.12 0.03 0.15

2.2 Construction of sale counters for women

25.00 25.00 - 0.04 0.04 - 0.03 0.03

2.3 School fences 67.20 16.80 84.00 0.11 0.03 0.14 0.07 0.02 0.09

2.4 Quays 341.04 85.26 426.30 0.57 0.14 0.71 0.37 0.09 0.46

2.5 Feeder roads (25km) 400.00 10000 500.00 0.67 0.17 0.84 0.43 0.11 0.54

2.5 Control and supervision of ancillary works 46.07 12.77 58.84 0.08 0.02 0.10 0.05 0.01 0.06

3. Studies

-

-

0.23

3.1 Economic studies 97.39 41.74 139.13 0.16 0.07 0.23 0.11 0.05 0.15

3.2 Road-related studies 51.94 22.26 74.20 0.09 0.04 0.12 0.06 0.02 0.08

4. Transport & Trade Facilitation Measures 200 50.00 250.00 0.33 0.08 0.42 0.22 0.05 0.27

5. Project Management

-

-

0.17

5.1 RTDA monitoring and evaluation

14 14.00 - 0.02 0.02 - 0.02 0.02

5.2 Project audits 99.259

99.26 0.17 - 0.17 0.11 - 0.11

5.3 Technical audit 45

45.00 0.08 - 0.08 0.05 - 0.05

BASE COST 31,357.79 8,134.42 39,492.20 52.44 13.60 66.04 33.81 8.77 42.5783

Physical contingencies 3,086.42 800.64 3,887.06 5.16 1.34 6.50 3.33 0.86 4.191

Price escalation (5%) 1,722.21 446.75 2,168.96 2.88 0.75 3.63 1.86 0.48 2.338

6. Vacation of rights-of-way

1,959.08 1,959.08 - 3.28 3.28 - 2.11 2.11

- - TOTAL 36,166.41 11,340.89 47,507.31 60.48 18.97 79.45 38.99 12.23 51.220

Annex B1

Page 1/7

Procurement

B.1.1: Procurement in Burundi

Procurement Methods

All goods, works and consultancy services financed from Bank resources shall be procured

according to Bank Rules and Procedures for the Procurement of Goods and Works or Rules

and Procedures for the Use of Consultants (May 2008 Edition), whichever applies, using the

Bank’s standard competitive bidding documents. The OdR will be responsible for the

procurement of goods/works/service contracts, consultancy services, and others (as

appropriate).

Works

The road works to rehabilitate 25 km of road between Lake Nyanza and Mabanda, estimated

at UA 13.74 million, the construction of a 20 km road between Mabanda and Mugina,

estimated at UA 13.19 million, and the supply and installation of traffic lights and road signs

throughout the crossing of Bujumbura city, estimated at UA 0.16 million, will be procured

according to international competitive bidding (ICB) procedures, in one indivisible lot.

The ancillary works, including: (i) the construction of 20 km of feeder roads; (ii) the building

of the Musenyi rural market; and (iii) the rehabilitation of the Musenyi health centre - a total

of UA 1.02 million, will be procured in a single lot, according to international competitive

bidding (ICB) procedures. It was agreed to construct 5 km of feeder roads using the labour-

intensive approach, due to the inaccessibility of the area by machines and the abundance of

local labour. The said works, estimated at UA 0.1 million, will be procured through local

shopping, due mainly to the low amount involved and the existence of firms capable of

performing this type of works.

Goods

The procurement of ICT equipment, as part of the transport facilitation activities at the PCUF

(section in Burundi only) for an estimated of UA 0.11 million, will be by local competitive

bidding (LCB). LCB was recommended in view of the low amount involved and the

existence of domestic firms capable of providing such facilities.

Consultancy services

The procurement of the following services: (i) inspection and monitoring of road works and

ancillary works, including training of counterparts, estimated at UA 1.48 million; (ii)

sensitization on STDs, other pandemics, environmental protection and road safety for an

estimated UA 0.16 million; (iii) Bujumbura City bypass study estimated at UA 0.22 million;

and (iv) transport facilitation study on the Burundian section of the corridor, estimated at UA

0.17 million, will be based on shortlists. The method used will be the quality and cost based

selection (QCBS) as defined in the Rules and Procedures for the Use of Consultants, May

2008 Edition.

Consultancy services for the financial audit of project accounts, estimated at UA 0.06 million,

will be based on a short list. The “least cost selection” (LCS) method will be used.

Procurement of individual consultancy services for: (i) technical audit (expert panel) of UA

Annex B1

Page 2/7

0.06 million, the road safety audit of UA 0.06 million and support to the Government as part

of Burundi's accession to the Construction Sector Transparency Initiative (COST), totalling

UA 0.06 million and which will each take less than 6 months, will be in accordance with

Bank rules in this regard.

The contract for monitoring and evaluating the project’s socio-economic in Burundi,

estimated at UA 0.21 million, will be awarded by direct negotiation, to the Burundi Institute

of Statistics and Economic Studies (ISTEEBU). This structure is the only one in Burundi that

monitors the country’s statistical data. Its personnel are trained for that purpose. Entrusting

the monitoring and evaluation to this state structure enables the country to own project

achievements and keep the data permanently. The choice of ISTEEBU is also due to the

desire to build national capacity for monitoring and evaluating the socio-economic impact of

road projects in Burundi. A “memorandum of understanding” satisfactory to the Bank shall

be signed between the OdR and ISTEEBU.

Publication: (i) the ICB and the results shall be published in United Nations Development

Business (UNDB); (ii) for the provision of services estimated at UA 200,000 or above UA

200,000 for consulting firms, and UA 50,000 for individual consultants, an advertisement

shall be published in the United Nations Development Business, on the Bank’s website and in

national newspapers; (iii) for contracts estimated at less than UA 200,000 awarded to

consulting firms, and UA 50,000 awarded to individual consultants, the Borrower may limit

the publication of the notice for expression of interest to national and regional newspapers.

However, any eligible consultant, whether regional or not, wishing to provide the services

requested, may express their desire to be put on the shortlist.

General Procurement Notice (GPN)

The text of the General Procurement Notice will be agreed upon with the OdR and issued for

publication on the Bank’s website and in UNDB online, as well as in a widely-circulated

local newspaper, upon approval of the grant proposal by the Board of Directors.

Review Procedures

The following documents are subject to Bank review and approval before publication: (i)

General Procurement Notice; (ii) Specific Procurement Notices; (iii) Notices for Expression

of Interest; (iv) Bidding Documents or Requests for Proposals from Consultants; (v) Reports

on Evaluation of Consultants' Technical Proposals; (vi) Reports on Evaluation of Consultants'

Financial Proposals, including contract award recommendations, minutes of negotiations and

duly initialled draft contract; (vii) Bid Appraisal Reports (bids from contractors/suppliers),

including contract award recommendations (goods and works); and (viii) draft contracts

(works) if these have been amended and differ from the drafts included in the bidding

documents.

National Laws and Regulations

In recent years, the Government of the Republic of Burundi has undertaken, with the support

of technical and financial partners (TFP), a programme of reforms to improve the public

procurement system. This has led to the revamping of Legislative Decree No. 1/015 of

19/05/1990 on the organic provisions on public procurement and Decree No. 100/120,

18/08/1990 on general specifications.

Annex B1

Page 3/7

Against this backdrop, the Public Procurement Code [Law No. 1/01 of 04/02/2008 on public

procurement and public service delegations] was adopted on 4 February 2008 and

implemented with effect from 4 October 2008. The new system is generally open to

competition and accepted good practices in line with international standards and principles

that ensure the transparency of procedures.

Simultaneous with the adoption of the 2008 Code, the institutions in charge of regulation

(Public Contracts Regulatory Authority (ARMP) - Decree No. 100/119 of 7 July 2008) and

monitoring the performance of public contracts (National Directorate of Public Procurement

Control (DNCMP) - Decree No. 100/120 of 8 July 2008) were put in place and are

functioning. Such is also the case of public procurement management units (CGMP) - Decree

100/123 of 11/07/2008) that were set up within the contracting authorities (ministries).

The evaluation of the use of the 2008 legal and regulatory framework by COMESA

consultants (October 2011) with the stakeholders and operators concerned, highlighted

inconsistencies and weaknesses, as well as fiduciary differences requiring the initiation of

dialogue with the country party for amendment/revision and adaptation of that framework.

The inconsistencies identified relate, for instance, to the application of certain provisions on

the thresholds according to the technical competence and qualification of stakeholders,

sanctions policies, control mechanisms, equivalence aspects and the need for harmonization

with TFPs with respect to Article 4 of the Code regarding procurement from external

funding.

It is also worth noting that the Bank recently initiated an evaluation of Burundi’s national

procurement procedures with a view to using the country’s standard competitive bidding

documents. The results of this study, which are not yet available, will be used to establish a

general plan of action with respect to the fiduciary differences with the national system.

Pending the results of this study, the goods, works and services financed by the Bank under

this project will be procured in accordance with Bank rules and procedures, using the Bank’s

appropriate standard competitive bidding documents [the World Bank, UNDP and European

Union do not use the code either].

In light of the foregoing, it was agreed with the Burundian party to use the Bank Rules and

Procedures for the Procurement of Goods, Works and Services under this project.

Executing Agencies

The OdR will be responsible for the procurement of goods, works and consulting services.

OdR’s resources, capacity, expertise and experience were analysed and deemed adequate to

undertake the procurement activities required under the project.

OdR staff have the expertise and proven experience in implementing projects financed by the

Bank and other donors. It has satisfactorily carried out the monitoring and management of

similar operations financed by the Bank, notably: (i) the Gitega-Ngozi Road Project; (ii) the

Nyamitanga-Ruhwa-Ntendezi-Mwityazo Multinational Project; and (iii) the Kicukiro-

Kirundo Project. In addition, executing agency staff have already received training in project

management and monitoring as well as technical assistance financed by the Bank under the

Nyamitanga-Ruhwa-Ntendezi-Mwwityazo Project, thus contributing to capacity building.

However, to harmonize and improve the procurement management function, a procurement

specialist will be recruited (approved beforehand by the Bank).

Annex B1

Page 4/7

Procurement plan

The Bank will review the procurement measures taken by the Borrower under the

procurement plan to ensure compliance with the loan agreement and its procurement rules.

The original procurement plan will cover the project period. The Borrower will update the

plan every year or as and when necessary, but always every 18 months during the project

implementation period. Any proposal to revise the procurement plan will be submitted to the

Bank for approval.

Summary Table of Procurement Methods used in Burundi (UA million)

Expenditure Categories ICB LCB Others Shortlists

Other than

ADFb

Total

A - Goods

-Computer equipment and software for the single border post 0.11 [0.11] 0.11 [0.11]

Total A 0.11 [0.11] 0.11 [0.11]

B – Works

-Road works and traffic lights 27.09 [24.04] 27.09 [24.04]

- Ancillary works (markets, health centres, feeder roads and

equipment for women) 1.02 [1.02]

1.02 [1.02]

- Labour-intensive works on5 km of feeder roads

0.11 [0.11] 0.11 [0.11]

Total B 28.10 [25.06] 0.11 [0.11] 28.21 [25.17]

C - Consultancy Services

- Inspection and supervision of road and ancillary works 1.15 [1.15] 1.15 [1.15]

- Sensitization of inhabitants 0.16 [0.16] 0.16 [0.16]

-Study of Bujumbura by-pass 0.22 [0.22] 0.22 [0.22]

- Transport facilitation study 0.17 [0.17] 0.17 [0.17]

-Training and supply of IT equipment 0.07 [0.07] 0.07 [0.07]

- Financial and accounting audit 0.06 [0.06] 0.06 [0.06]

- Technical and road safety audit and support for COST 0.18 [0.18] 0.18 [0.18]

- Monitoring & evaluation of the project’s socio-economic impact 0.21 [0.21] 0.21 [0.21]

Total C 0.00 0.00 0.00 0.00 0.21 [0.21] 2.02 [2.02] 2.23 [2.23]

Total 28.10 [25.06] 0.11 [0.11] 0.32 [0.32] 2.02 [2.02] 0.00 [0.00] 30.55* [27.50]

[ ] : ADF financing

(*) This cost does not include vacating the right-of-way

B.1.2 Procurement in Rwanda

Procurement Methods

All goods, works and consultancy services financed from Bank resources shall be procured

in accordance with Bank Rules and Procedures for the Procurement of Goods and Works or,

Rules and Procedures for the Use of Consultancy Services (May 2008 Edition), whichever

applies, using the Bank’s standard competitive bidding documents. The RTDA will be

responsible for the procurement of goods/works/services contracts, consultancy services, and

others (as appropriate)

Works

The construction and asphalting of 47.9 kilometres of road between Rubavu (former Gisenyi)

and Gisiza, estimated at UA 39.26 million, will be procured according to international

competitive bidding (ICB) procedures, in one indivisible lot.

Annex B1

Page 5/7

Ancillary works, including the rehabilitation of feeder roads (25 km), fencing of schools,

rehabilitation of a market, development of two river piers, amounting to a total of UA 1.27

million, will be procured through international competitive bidding (ICB) in one indivisible

lot.

Goods

IT equipment, including ICT user training as part of the transport facilitation activities at the

PCUF (section in Rwanda only), amounting to UA 0.11 million, will be procured through

Local Competitive Bidding (LCB). LCB was recommended to take into account the low

amount involved and the existence of domestic firms capable of providing such facilities.

Consultancy Services

The following services : (i) inspection and monitoring of road works and ancillary works for

an estimated UA 1.43 million; (ii) sensitization on STIs, other pandemics, environmental

protection and road safety in the project area for an estimated UA 0.16 million; (iii) road

studies for UA 0.10 million; (iv) detailed economic and technical studies on the Lake

Transport Project on Lake Kivu for the development of the Rubavu, Karongi and Rusizi ports

for UA 0.17 million; (v) transport facilitation study on the Rwandan section of the corridor

for an estimated UA 0.17 million, monitoring and evaluation of project impacts for UA 0.20

million; and (vii) financial audit, for UA 0.06 million, shall be procured on the basis of

shortlists. The quality and cost-based selection (QCBS) method will be used.

The project’s financial and accounting audit for an estimated UA 0.05 million, will be

procured on the basis of a shortlist and the “least cost selection” (LCS) method will be used.

The services of individual consultants for project technical audits (experts’ panel) and road

safety for a total of UA 0.12 million and which will each take less than six months, will be

procured in accordance with Bank rules in this regard.

Publication: (i) the ICB and the results shall be published in United Nations Development

Business (UNDB); (ii) for the provision of services estimated at UA 200,000 or above UA

200,000 for consulting firms, and UA 50,000 for individual consultants, an advertisement

shall be published in the United Nations Development Business, on the Bank’s website and in

national newspapers; (iii) for contracts estimated at less than UA 200,000 awarded to

consulting firms, and UA 50,000 awarded to individual consultants, the Borrower may limit

the publication of the notice for expression of interest to national and regional newspapers.

However, any eligible consultant, whether regional or not, wishing to provide the services

requested, may express their desire to be put on the shortlist

General Procurement Notice (GPN)

The text of the General Procurement Notice will be agreed upon with the RDTA and issued

for publication on the Bank’s website and in UNDB online, as well as in a widely-circulated

local newspaper, upon approval of the grant proposal by the Board of Directors.

Review Procedures

The following documents are subject to Bank review and approval before publication: (i)

General Procurement Notice; (ii) Specific Procurement Notices; (iii) Notices for Expression

of Interest; (iv) Bidding Documents or Requests for Proposals from Consultants; (v) Reports

Annex B1

Page 6/7

on Evaluation of Consultants' Technical Proposals; (vi) Reports on Evaluation of Consultants'

Financial Proposals, including contract award recommendations, minutes of negotiations and

duly initialled draft contract; (vii) Bid Appraisal Reports (bids from contractors/suppliers),

including contract award recommendations (goods and works); and (viii) draft contracts

(works) if these have been amended and differ from the drafts included in the bidding

documents.

National Laws and Regulations

The Government of Rwanda enacted the law on public procurement in 2007 and adopted the

regulations relating thereto in 2008. This Act applies to the procurement of goods, works and

consultancy or other services provided by entities using public funds. The law defines the

competitive bidding procedure as the default method for the procurement of goods, works

and services, and provides detailed procedures to be used in local and international

competitive bidding (the law also looks at other procurement methods).

Rwandan law on public procurement is based on standard documents to be used by entities

initiating bids for the procurement of goods and works, as well as calls for expression of

interest for consultancy services. Such standard documents form the basis of a sound public

procurement system, enabling the country to award good quality public contracts in a non-

discriminatory manner. However, some elements, such as provisions for incidental expenses,

spare parts and the prohibition to contact the buyer during bid appraisal do not feature in the

standard local competitive bidding documents for goods. Furthermore, the provisions relating

to the implementation schedule, the contract type, fraud and corruption, staff and work rules,

case of force majeure, the various options for the method of bid submission, the treatment of

confidential information, joint liability and qualification tables, are omitted in the standard

competitive bidding documents for minor works.

The internal control of the Rwandan procurement system is working satisfactorily. The 2007

law established procurement committees, units in charge of procurement as well as

independent panels at national and district level to deal with complaints and appeals from

bidders. In addition, the 2007 law on the procurement system provided for the establishment

and assignment of authority and responsibility to the RPPA6, which went operational

following the 2008 Act, with dual responsibility for a period of three years, to oversee

procurement activities and regulate them.

Since February 2011, the RPPA is no longer in charge of procurement activities. It now

devotes itself to regulation and supervision. It conducts periodic audits, in compliance with

the control and audit manual published in 2010. In addition, the Bank conducted a study in

2011 on ICB procedures in Rwanda and found them to be generally satisfactory. However, it

noted some discrepancies between those procedures and rules of the Bank in this regard.

In light of the foregoing, notably the discrepancies identified above, it was decided not to use

national procurement procedures under this project.

6 Rwanda Public Procurement Authority

Annex B1

Page 7/7

Executing Agency

The RTDA will be responsible for the procurement of goods, works and consultancy

services. The resources, capacity, expertise and experience of RTDA were analysed and

deemed adequate to handle procurement activities required under this project.

RTDA staff have expertise and proven experience in implementing projects financed by the

Bank and other donors. It satisfactorily carried out the monitoring and management of similar

operations financed by the Bank, notably: (i) the Nyamitanga - Ruhwa - Ntendezi - Mwityazo

Multinational Project (ii) the Kicukiro-Kirundo Project, (ii) the Gitarama-Ngororero-

Mukamira Road Project; and (iii) the Road Infrastructure Project. In addition, RTDA staff

have already received training in project management and monitoring, notably on the Bank’s

procurement procedures. Technical assistance financed by the Bank as part of the

Nyamitanga-Ruhwa-Ntendezi-Mwityazo Multinational Project was provided to the RTDA,

thereby strengthening its capacity. Furthermore, the RTDA has a procurement specialist (civil

engineer) who will be responsible for all procurement functions.

Procurement Plan

The Bank will review the procurement measures taken by the Borrower under the

procurement plan, to ensure compliance with the loan agreement and its procurement rules.

The original procurement plan will cover an initial period of at least 18 months. The

Borrower will update the plan every year or as and when necessary, but always every 18

months during the project implementation period. Any proposal to revise the procurement

plan will be submitted to the Bank for prior approval. The original procurement plan will be

submitted to the Bank prior to the negotiation of the grant.

Summary Table of Procurement Methods used in Rwanda (in UA million)

Expenditure categories

ICB LCB Others Shortlists

Other

than

ADFb

Total

A - Goods

- IT equipment for transport facilitation activities 0.11 [0.11]

Total A 0.00 0.00 0.11 0.11 0.11 [0.11]

B - Works

-Road works 45.28 [41.24] 0.00 0.00 0.00 0.00 0.00 0.00

45.28 [41.24]

-Ancillary works (feeder roads, markets, school fences)

1.46 [1.46]

1.46 [1.46]

Total B 46.74 [42.70] 0.00 [0.00] 0.00 [0.00] 0.00 [0.00]

46.74 [42.70]

C – Consultancy services

- Inspection and supervision of road and ancillary works 1.43 [1.43] 1.43 [1.43]

- Sensitization of inhabitants 0.16 [0.16] 0.16 [0.16]

-Road studies 0.09 [0.09] 0.09 [0.09]

-Economic and technical studies on lake transport on Lake Kivu 0.17 [0.17] 0.17 [0.17]

-Transport facilitation studies on the Rwandan section of the corridor 0.20 [0.20] 0.20 [0.20]

-Accounting and financial audit 0.06 [0.06] 0.06 [0.06]

-Technical and road safety audit 0.12 [0.12] 0.12 [0.12]

- Monitoring & evaluation of socio-economic impact of the project 0.02 [0.00] 0.02 [0.00]

Total C 0.00 0.00 0.00 0.00 0.00 [0.00] 2.26 [2.24]

2.26 [2.24]

Total 46.74 [42.70] 0.11 [0.11] 0.00 [0.00] 2.26 [2.24]

49.11* [45.05]

[ ] : ADF financing

(*) This cost does not include vacating the right-of-way