NATIONAL EMERGENCY NATIONAL EMERGENCY TRANSPORT TRANSPORT

REHABILITATION PROJECTREHABILITATION PROJECT

FINALFINAL PROJECT PROPOSALPROJECT PROPOSAL

Presentation to the Presentation to the

MDTF Oversight CommitteeMDTF Oversight CommitteeKhartoum August 28, 2006Khartoum August 28, 2006

Outline of PresentationOutline of Presentation

JAM RecommendationsJAM Recommendations Proposed ProjectProposed Project Why the Project?Why the Project? Project ComponentsProject Components Project Costs and FinancingProject Costs and Financing Implementation Plan and ScheduleImplementation Plan and Schedule Implementation ArrangementsImplementation Arrangements Matters ArisingMatters Arising

JAM Recommendations - JAM Recommendations - 11

RailwaysRailways Thrust:Thrust: Focus on activities and initiatives to Focus on activities and initiatives to

enable it continue to carry present commercial enable it continue to carry present commercial traffic and gradually carry a substantial part of traffic and gradually carry a substantial part of the additional traffic required by peace the additional traffic required by peace keeping operations and traffic related to keeping operations and traffic related to rehabilitation efforts. rehabilitation efforts.

Action PlanAction Plan: Deepen private sector : Deepen private sector involvement; expand use of multi-modal involvement; expand use of multi-modal operations; upgrade skills and make modest operations; upgrade skills and make modest investment to rehabilitate and upgrade critical investment to rehabilitate and upgrade critical rail links. rail links.

Proposed Investment PlanProposed Investment Plan: US$129 million : US$129 million plus US$140 million private sector.plus US$140 million private sector.

JAM Recommendations - JAM Recommendations - 22

Inland Water TransportInland Water Transport Thrust:Thrust: In addition to incremental In addition to incremental

investment, restructure so that private sector investment, restructure so that private sector can play greater rolecan play greater role

Action PlanAction Plan: Promote development of : Promote development of policies and undertake emergency policies and undertake emergency rehabilitation works. Make comprehensive rehabilitation works. Make comprehensive investments in the Juba to Kosti river investments in the Juba to Kosti river transport system.transport system.

Proposed Investment PlanProposed Investment Plan: US$140 million: US$140 million

JAM Recommendations - JAM Recommendations - 33

Roads and BridgesRoads and Bridges Thrust:Thrust: Improving North – South connections; Improving North – South connections;

developing South – South road network, developing South – South road network, reducing isolation in the Three Area and linking reducing isolation in the Three Area and linking regional markets and countries. regional markets and countries.

Action PlanAction Plan: Build up institutional capacity, : Build up institutional capacity, develop road network in the South and other develop road network in the South and other war-affected areas and develop rural roads in war-affected areas and develop rural roads in the entire country, support private sector the entire country, support private sector involvement. involvement.

Proposed Investment PlanProposed Investment Plan: US$871 million: US$871 million

Implementing the JAM Implementing the JAM RecommendationsRecommendations

SETIDP: SETIDP: Addressing recommendations focused on Addressing recommendations focused on the South. Under implementation.the South. Under implementation.

Transport Master Plan: Transport Master Plan: Addressing the policy Addressing the policy institutional and regulatory issues and long term institutional and regulatory issues and long term investment needs. Recruitment of consultants investment needs. Recruitment of consultants launched.launched.

NETREP: NETREP: Proposed National Project focused on rail, Proposed National Project focused on rail, river transport and road improvements, especially in river transport and road improvements, especially in Three Areas. Three Areas.

Joint Coordinating Committee being convened to Joint Coordinating Committee being convened to provide regular dialogue between GNU and GoSS.provide regular dialogue between GNU and GoSS.

Proposed ProjectProposed Project ThrustThrust: Implement short term (Phase 1) : Implement short term (Phase 1)

recommendations of JAM for railways, inland water recommendations of JAM for railways, inland water transport and roads (especially in the Three Areas).transport and roads (especially in the Three Areas).

Development ObjectiveDevelopment Objective: Facilitate the country’s : Facilitate the country’s economic and social recovery through improved physical economic and social recovery through improved physical access to goods, markets, and administrative and social access to goods, markets, and administrative and social services. services.

Focus:Focus: (i) Two key trade routes linking the North and (i) Two key trade routes linking the North and the South with Port Sudan (a) the Wau-Khartoum-Port the South with Port Sudan (a) the Wau-Khartoum-Port Sudan corridor and (b) Port Sudan – Kosti –Malakal – Sudan corridor and (b) Port Sudan – Kosti –Malakal – Juba corridor. (ii) Addressing the isolation of Juba corridor. (ii) Addressing the isolation of communities in marginalized areas, a key impediment to communities in marginalized areas, a key impediment to recovery and development. recovery and development.

Programmatic approachProgrammatic approach broken into three phases. broken into three phases. This presentation relates to Phase 1 for which This presentation relates to Phase 1 for which funding is requested.funding is requested.

Why the Project?Why the Project? Peace has (i) increased economic activities which is generating Peace has (i) increased economic activities which is generating

increased traffic especially for import and export. (ii) created the increased traffic especially for import and export. (ii) created the opportunity to improve connectivity between North and South and to opportunity to improve connectivity between North and South and to thus facilitate return of IDPs.thus facilitate return of IDPs.

Meeting increased traffic demand requires a multi-modal approach: Meeting increased traffic demand requires a multi-modal approach: safeguard highways, secure and reinstate critical rail and port assets, safeguard highways, secure and reinstate critical rail and port assets, improve travel and transport by river transport, adoption of modern improve travel and transport by river transport, adoption of modern operating practices, facilitate private sector investment .operating practices, facilitate private sector investment .

Without increasing available capacity, significant increase in Without increasing available capacity, significant increase in transport costs inevitable which would erode benefits of peace to the transport costs inevitable which would erode benefits of peace to the poor. poor.

Proposed activities provide immediate needed increase in transport Proposed activities provide immediate needed increase in transport capacity and will benefit the economy as a whole and the poor in capacity and will benefit the economy as a whole and the poor in particular.particular.

The Project – Component The Project – Component 1 - Rail1 - Rail

Rehabilitation of Babanousa-Wau Railway Line;Rehabilitation of Babanousa-Wau Railway Line; Rehabilitation of Bridge Number 353 on the Khartoum to Port Rehabilitation of Bridge Number 353 on the Khartoum to Port

Sudan rail section; Sudan rail section; Rail connections to the container depot in the Damadama area Rail connections to the container depot in the Damadama area

of Port Sudan; of Port Sudan; Improving rail connections at existing and new Port at Kosti; Improving rail connections at existing and new Port at Kosti; Studies on enhancing private sector participation in railway Studies on enhancing private sector participation in railway

operations; operations; Support for project management; Support for project management; Enhancement of sector management capacity; Enhancement of sector management capacity; Improving inter- modal operations at Port Sudan.Improving inter- modal operations at Port Sudan. Establish social safeguards Unit in MTRB. Establish social safeguards Unit in MTRB.

The Project – Component 2 The Project – Component 2 - River- River

Provision of Equipment in Support of Port Operation; Provision of Equipment in Support of Port Operation; Concession of the new port at Kosti;Concession of the new port at Kosti;

Study to establish emergency dredging and navigational Study to establish emergency dredging and navigational needs; needs;

Hydrographic survey of White Nile; andHydrographic survey of White Nile; and

Support for project implementation including targeted Support for project implementation including targeted institutional development and capacity building.institutional development and capacity building.

The Project – Component 3 The Project – Component 3 - Roads- Roads

PProgram of spot improvementsrogram of spot improvements on Kadougli to Kaouda road on Kadougli to Kaouda road (135 km) and section 2 of the E’ Damazin to El Kurmuk road (135 km) and section 2 of the E’ Damazin to El Kurmuk road (55km) and(55km) and

UpgradingUpgrading of Hamashkraid to El Gahwa road (90 km); of Hamashkraid to El Gahwa road (90 km); Detailed designDetailed design of Abu Jubayah to Talodi to Kadugli road of Abu Jubayah to Talodi to Kadugli road

(310 km), Damazin to Geissan road (160 km) and Toker to (310 km), Damazin to Geissan road (160 km) and Toker to Garora road (215 km);Garora road (215 km);

Feasibility studies and detailed designFeasibility studies and detailed design of Geissan to of Geissan to Kurmuk road (160 km), Damazin to Renk road (200 km), Kurmuk road (160 km), Damazin to Renk road (200 km), Kadugli to Hegleig road (170 km), and Muglad to Abyei road Kadugli to Hegleig road (170 km), and Muglad to Abyei road (160 km); (160 km);

Project management and institutional development and Project management and institutional development and capacity buildingcapacity building including (a) carrying out of various including (a) carrying out of various studies on sustainable road sector financing, road safety and studies on sustainable road sector financing, road safety and axle load control, (b) establishment of pavement axle load control, (b) establishment of pavement management system, (c) improvements to materials testing management system, (c) improvements to materials testing laboratory, and (d) training, workshops, study tours and laboratory, and (d) training, workshops, study tours and targeted TA. targeted TA.

Project Costs and Project Costs and FinancingFinancing

Phase Phase 11

Phase Phase 22

Phase Phase 33

TotalTotal RemarksRemarks

ComponenComponent 1t 1

41.9541.95 40.0040.00 TBDTBD 81.9581.95

ComponenComponent 2t 2

10.9610.96 -- -- 10.9610.96 Dredging Dredging via via bilateral bilateral fundsfunds

ComponenComponent 3t 3

89.2789.27 51.4951.49 137.0137.022

282.78282.78

TotalTotal 142.1142.188

91.4991.49 137.0137.022

370.69370.69

1. All figures in US$ million. 1. All figures in US$ million.

2. Financing: MDTF – US$48.50 million; GNU 2. Financing: MDTF – US$48.50 million; GNU US$93.68 million US$93.68 million

Implementation Plan and Implementation Plan and ScheduleSchedule

Implementation period Nov 2006 to Dec 2009Implementation period Nov 2006 to Dec 2009 Grant Agreement signed mid-September, 2006Grant Agreement signed mid-September, 2006 Project accounts opened and Implementation Project accounts opened and Implementation Manual ready mid-October, 2006 Manual ready mid-October, 2006 Project effectiveness October 31, 2006Project effectiveness October 31, 2006 Rail de-mining work starts early January, 2007Rail de-mining work starts early January, 2007 Tenders for cargo handling equipment for RTC Tenders for cargo handling equipment for RTC

launched mid-Oct 2006 and civil works early Nov launched mid-Oct 2006 and civil works early Nov 20062006

Tenders for first road contract launched mid-Tenders for first road contract launched mid-October with award early 2007October with award early 2007

Commencement of Phase 2/3 depends on Commencement of Phase 2/3 depends on progress with Phase 1 and funding availability. progress with Phase 1 and funding availability.

Implementation Implementation ArrangementsArrangements

Overall coordination and progress monitoring by Overall coordination and progress monitoring by

MTRB through its Planning Unit which is being MTRB through its Planning Unit which is being strengthened with TA.strengthened with TA.

Implementation by empowered Project Management Implementation by empowered Project Management Teams in each implementing agency (SRC, RTC and Teams in each implementing agency (SRC, RTC and NHA) which are already functional. NHA) which are already functional.

Each PMT comprises of seconded technical staff of Each PMT comprises of seconded technical staff of implementing agency plus recruited experts in implementing agency plus recruited experts in financial and procurement management with TA financial and procurement management with TA input as required. input as required.

Project Implementation Manual contains guidance Project Implementation Manual contains guidance on rules and procedures for use by PMT in on rules and procedures for use by PMT in implementing the Project. implementing the Project.

Matters ArisingMatters Arising

Financing envelope to be confirmed by Financing envelope to be confirmed by

MDTF/GNUMDTF/GNU MoFNE needs to:MoFNE needs to:1.1. Assist implementing agencies in timely opening Assist implementing agencies in timely opening

of Project Accounts.of Project Accounts.2.2. Make initial deposits into Project Accounts to Make initial deposits into Project Accounts to

cover initial project cost prior to disbursement of cover initial project cost prior to disbursement of funds by MDTF. These deposits to be reimbursed funds by MDTF. These deposits to be reimbursed through retroactive financing provision in the through retroactive financing provision in the Grant Agreement.Grant Agreement.

3.3. Assist SRC in timely finalization of the MoA for Assist SRC in timely finalization of the MoA for engagement of UNOPS. engagement of UNOPS.