Document of

The World Bank

FOR OFFICIAL USE ONLY

Report No. 12536-TA

STAFF APPRAISAL REPORT

TANZANIA

SECOND INTEGRATED ROADS PROJECI

MARCH 17, 1994

MICROGRAPHICS

Report No: 12536 TAType: SAR

Energy and Infrastruct3re Operat ions DivisionEastern Africa Department

This document has a rticted dsisibullou and may be used by repients ondy In the perfonnance ofthewi officilt duties. Its cotnts may na otherwise be dicsed wihout Wodd Bank authrhizto

Pub

lic D

iscl

osur

e A

utho

rized

Pub

lic D

iscl

osur

e A

utho

rized

Pub

lic D

iscl

osur

e A

utho

rized

Pub

lic D

iscl

osur

e A

utho

rized

Currency Equivalent(As of September 30, 1993)

Currency Unit =Tanzanian Shilling

Tshl.0 = US$0.002US$1.0 = Tsh450

FISCAL YEAR

July 1 to June 30

WEIGHTS AND MEASURES

1 meter (m) = 3.2808 feet (ft)1 kllometer (km) = 0.6214 miles (mi)1 metric ton (tonnes) = 1.023 short tons

GLOSSARY OF ABBREVIATIONS

AADT - Average Annual Daily TrafficAfDB - African Development BankAGC = Attomey General's ChambersATC = Air Tanznia CorporationCCU = Contacts Control UnitCRB = Central Roads BoardCFB = Central Freight BureauCML = Central Materials LaboratoryCODAP = Coordination Office for Donor Assisted ProjectsDC = District CouncilDE = District EngineerDMI = Dar es Salaam Maritime InstituteDRA = Directorate for Roads and AerodromesEEC = European Economic CommunityERP = Econonmic Recovery ProgramERR = Economic Rate of RetumESAMI Eastern and Southem Africa Maagment InstuteFINNIDA = Finnish Intemational Development AgencyFY = Fiscal YearGDP - Gross Domestic ProductGOT = Government of TanzaniaICB = International Competitive BiddingIM = Inbm ate Means of TransportIRP-I = Integrated Roads Project ILGRF = Local Govermnent Road FundLPM Local Program ManagerMAG = Mnent Action Group

FOR OFFICIAL USE ONLY

MDB = Marketing Development BureauMCW - Ministry of Communications and WorksMCT - Minisry of Communcations and TransportMOF = Ministry of FinanceMWCT = Ministry of Works, Communications and TransportMWTI = Morogoro WoksTraining instituteMOW = Ministry of WorksNASACO = National Shipping Agencies CompanyNC = National CoordinatorNCC = National Construction CouncilNIT = National Institute of TransportNTI = Non-Transport InterventionNORAD = Norwegian Agency for Development CooperationNPRA = Norwegian Public Roads AdministaionNRSC = Nafional Road Safety CouncilNSC = National Steering ComnitteeNTC = National Transport CorporationOPEC Ornization for Petroleum Exportng CountniesPEHCOL = Plant and Equipment Hire Company LimitedPMO = Prime Ministers OfficePPAR = Project Perfoimance audit ReportPPF = Project Prearation FacilityRE R EnginREO = Regional Engineers OfficeRETCO T Regional Tfrucking CompanyRMI = Road Mainteance InitiativeRRB = Regional Roads BoardRRP = Railways Restucturing ProjectSDC = Swiss Development CooperationSINOTASHIP = China Tanzaia Shipping LineSOE = Statementof ExpenditureTACOSHIL = Tanzania Coastal Shipping LineTANZAM = Tanznia-Zambia EghwayTAZARA = Tanzania-Zambia Railways AuthorityTHA = Tanzania Harbours AuthorityTRC = Tanzania Railways CorporationUDA = Shiria La Usafiri Dar es SalaamUNDP = United Nations Development ProgrammeUSAID = United States Agency for Intemational DevelopmentVITP = Village Travel and Transport ProgramWPU = Women Participation Unit

This document has a restricted distnbuion and may be used by recpients only in the puorma of thdeiroficial duties Its contents may not otherwise be disclosed without World Bank authorzatio

UNITED REPUBLIC OF TANZANIASECOND INTEGRATED ROADS PROJECT

TABLE OF CONTS

CREDIT AND PROJECT S UM4ARY ................................................... i

I. COUNTRY SETTING ..................................................1l

II. MACROECONOMIC CONTEXT AND THE TRANSPORT SECTOR ...............1A. Historical and Current Economic Performance ...............................................1B. Inpact of the Integrted Roads Project on the Economy ................................2

III. THE TRANSPORT SECTOR ............................................... SA. Overall Sector Structure .................................................. SB. The Road Network .................................................. Sc. Road TransportSe ..................................................Service.6D. Port Subsector ................................................... 8E. Railways .................................................. 10F. Civil Aviation .................................................. 10G. Sector Organizaon and Admiisaon .................................................. 11H. Sector Development Strategy .................................................. 121. Previous Bank Group Involvement in the Sector ............................................... 15

IV. THE ROADS SUBSECTOR .................................................. 18A The Network ................................................... 8B. Subsector Development Strategy .................................................. 20

V. THE PROJECT .................................................. 27A. Project Origin, Rationale and Objectives .................................................. 27B. Project Description .................................................. 28C. Project Costs and Financing .................................................. 39

VI. PROJECT IMPLEMENTATION .................................................. 43A. Institutional Responsibilities .................................................. 43B. Project Coordination .................................................. 44C. Implementation Program .................................................. 44D. Procurement .................................................. 45E. Disbursements .................................................. 48F. Accounting and Auditing .................................................. 50G. Monitoring and Supervision .................................................. 50

VII. PROJECT JUSTIFICATION, BENEFITS AND RISKS ......................... ............ 52A. Justification and Benefits .................................................. 52B. Project Risks .................................................. 54

vm. AGREEMENTS REACHED AND RECOMMENDATION ............................. 56B. Conditions for Cret E ne ............................................ 6C. Condition ofDisbursement ................... 57D. Recommendation ................... 57

The repowt is based on the work of preapprasal appraisal and post-appraisal mission in MarchJune and October 1993 comrising the fbllowing: Mr. J. Maweni (Task Mer), Mr. R.Gopalrishnan (Senior Procrremn Specalist), Mr. L Hege (Pric Infiuatre Economst),Ms. R Matez (Operai Anlyst), Ms. C. Malmbeg-Calvo (Consultant), Mr. 0. EOevset(Conulta), Mr. T. Humes (Contan), Mr. B. Asebe (Cobsultant). ad Mr. 0. Soott(Consutant). Don repesnaIves who paicipated m t app l mission wee: Mr. B*.Tm s (EEC), and Mr. Nings (ODA). TIe analysis is based on the work of anearlier visit to Dar es Salaau by 'r. R. Tiliman (Senior Specialist). Secerialsupport and poduci of gpics was caried out by Ms. Nina Jones. The peer reviwers wereMessrs. L. Revuelt (Principal Transport Engieer) and L. Roome (Fiancial Analst). Mes. F.Colago and S. Weissaman are the Director and Division Chief respectiey, ofd theopraton

Annex 3-1 Letter of SectorPolcyAnnex 5S1 Capacity StrtheningProgmAmex 5-2 Trwn Roads Upradg and R ion ProgramAnnaex 5-3 Rra Roads Upgradig and Rh ton ProgramAnnex 54 Detaied Project CostiaesAnnex 5-S Prr,-act Compoet by FnnceAnnex S.6 Summary of Unfnded ProgramAnnex6-1 SchedulesAnnex 6-2 Estmated Schedule ofAnnex 6-3 Spin Pln Projec Progres Reporting an Impeenaio iesAnnex 6-4 Key Permance IndicaAnnex 6-S Doments Avalle in the Project Fo

ablm

2.1 Impact of Rhlitation Of the Kwa Sadala-sMbwera Rural Road2.2 Improv in Freigt and Passg Servces (rundma-Sumwg Road)3.1 Dar es ala Port: Past traffic Levels (million ton)4.1 Tduk and Region Roads by Surface Type4.2 Man Traffic Corridors and Leves4.3 Lages Urban Mkets and Rdeatd Transport Corrido4.4 Reun Budge Fnancing5.1 Summy of Trunk Roads Program5.2 Estmaed Project Cost5.3 Proct Financs Plan

MM 25511R

i

UNlIED REPUBLIC OF TANZANIASECOND EGRATED ROADS PROJECT

CREDIT AND PROJECT SUMMARY

United Republic of T =an

Beneficiaries: MinistFy of Works, Comnunications and Transport, National Construct;,nCouncil, National Transport Corporation, and National Institute ofTramsport.

Amount: SDR 123.3 milhon (US$170.2 million equivalent)

Tems.: Standard IDA terms with 40 years maturity

Description: The principal objective of the project is to support the coutrys economicecovery program by reducing transportation costs, i;mproving accessibility

to economically productive areas, and strengthening overall sectoradministrafion and organizational and financing arrangements in the roadssubsector. The project would support: (i) upgrading, rehabiitaton andmaintenance of high prioty truk, regional and essential district roadnetworks (including bridges and culverts); (ii) policy and institutonalreforms to improve sector admiistion, managemen and financing of theroad network and efficient provision of road transport services; (iii) a pilotprogram to improve village travel and transport through rehabilitation andmaintenance of road infiastructure, improving access to intermedmeans of transport and through non-transport interventions; and (iv)resurfacing of the runway at Kilimanjaro Intenational Airport to improvesafety and ensure continuation of services.

Benefits: The main benefits of the project are facilitation of economic growth asaccessibility is improved, markets are integrated, and travel times andtransport costs are reduced. Other benefits include long-term efficiencygains from improved sector administration and intermodal coordination.

Risks: The principal risks to the achievement of the project's developmentalobjectives include: (i) possible failure to improve or at least maintaininstitutional capacity to efficiently manage the road networks; (ii) shortfillsof domestic resources to support the project; (ii) a slower rate ofcontractor development to meet project needs; and (iv) low levels ofavailability of road maintenance equipment. The projects policy andinstitutional support component and implementation arangements arespecifically designed to manage these risks. Institutional risks would bemitigated through implementation of a capacity segtheing program toenhance staff skills in the key areas of procurment and contactmanagement, transport planning and management development, improved

ii

managemnt infonnation systems; and possible (depending on outcome ofstudies) fonnation, within 2 to 3 years, of a semi-autonomous road agencywith authority to establish staffing and remuneration policies independedyof civil service regaions. Financing risks would be managed through:conditioning of IDA disbursement for each of the FY1995/96 throughFY1997/98 trunk roads rehabilitation programs on satisfactoryachievment of both physical and financing targets of the previous year andadequate budgetary provisions for subsequent year, and unplementation.prior to CREDfT effectiveness, of an action plan for widening the scope ofthe Road Fund, out of which mainktnance funds are provided, andincreasg total revenues to fully fund all maOtance costs byFY1995l96. The risks related to the rate of development of the domesticconstruction industry would be addressed by improving managment of theRoad Fund to ensure timely payments to contractors and by vaig theproportion of road works carried out by domestic and intemationalcontractors, as needed. The problem of equipment availability is beingaddressed under the ongoing project by contracting out rehabiliton ofequipment to the private sector and by making management of the Plantand Equipment Hire Company Limited (PEHCOL) acountable to theBoard for performance through explicit perfonnance indicators while thecompany is being prepared for private sector participation within the next2-3 years.

Economic Rate of Return: The project's weihted average economic rate of return is 21%.

Estimated Project Costs and Financing Plan:

Local Foreign Total

US$ million(Equivalent)

Policy and Institutional Support 3.0 9.0 12.0Road Upgrading, Rehabilitation & Maintenance 126.3 391.8 518.1Village Travel and Transport Pilot Progaun 1.5 1.1 2.6Civil Aviation 0.6 3.8 4,4TOTAL BASE COST 131.4 405.7 537.1

Physical Coningcies 15.6 44.0 59.6Price Contngencies 12.9 40.7 DA

TOTAL PROJECT COST 159.9 490.4 6503of Which duties and Taxes 34.9 34.9

minanin lannIDA 30.0 140.2 170.2EEC 33.2 144.9 178.1AfDB - 108.9 108.9NORAD 11.0 30.7 41.7OPEC 5.1 33.2 38.3JAPAN 7.5 12.3 19.8KUWAfT 2.0 12.9 14.9SDC 1.1 4.0 5.1FINNIDA 2.1 3.3 5.4Government 67.9 - 67.9

TOTAL 159.9 490.4 60.3

Estimated IDA Disbursements:

Fiscal Year Ending June 30

Year 1995 1996 1997 1998 1999 2000 2001US$ Miion

Annual 15.7 38.0 45.9 42.2 22.2 5.0 1.2Cwnulative 15.7 53.7 99.6 141.8 164.0 169.0 170.2% of Credit 9.2 31.6 58.5 83.3 96.4 99.3 100.0

I

TANZANIASECOND INTEGRATED ROADS PROJECT

L COUNTRY SETTING

1.01 Tanzania has a large territory (slightly smaUler than France and Spain combined) and apopulation of about 28 nillion distributed mainly on its geographic periphery. Its economy isdominaed by agriculture which contributed about 60 percent of GDP in 1991. Most of theagricultura! output is produced by small farmers scattered in small rural comnunities, while themajor markets and processing centers for crops, as well as the distrbution points for agriculuraiputs and fuel, are cnceated in urban centers located at considerable distances firn each otherand from the major coastl seaports. Because of this structure of humnn settlements and ofproduction, transportation and communication assume an extraordinarily importat role inTanans economic development In additior to its role in integrating domestic markets,Tanzani's transort system provides an outlet to the sea for the landlocked countries of Malawi,Zambia, Burundi Rwanda, Zaire and Uganda. After coffee, the transport sector is the secondlagest eamer of foreign exchange.

IL MACROECONOMIC CONTEXT AND THIE TRANSPORT SECTOR

A. Historical and Current Economic Performance

2.01 Since indpendence in 1961, Tanzana's leadership has changed the countrys developmentstrategy and economic managemt system froan market-oriented to socialist-oriented and back tomarket-oriented with serious consequenc to the spatial organization and distribution of the socialand economic infrastructure as well as to economic progress and poverty alleviation objectives. Inthe first phase of market-led economic development (1961-66), the economy grew rapidly. Theintemational and dometc trade that emerged determined the direction and pattern of transportinfastru the relative growth of urban centers and the regional speciizaion of food and cashcrop production. Within this frameworlc, Tanzania produced for the world market thosecommodies in which it had comparative advantage; viz., sisal, cotton, coffee, tea,etc. A smallurban economy based on manufactureD handicraft and services emerged leading to urban-ruralexchange. The transport sector fostered the spatal division of labor and the progressive integrationof the domestic market.

2.02 In 1967, a new economic policy was announced by the leadership through the AnrsaDeclaaton. The new policy was to speed-up rural development and overall economuc developmentand help the couny to achieve self-reliance. The impact of the new economic mmagmt systemwas to after the pattern of inter-ruraL urban -rural, intra-urban as well as linkages of domestic tointemational maets. Large m financial, commeria, consruction, mining andexport and import businesses were nationalized, the rural economy was collectivized through avillagaton progrmn. With most ofthe economy under state control, public expenditures were seenas the veicle for developing the economy. Initially, the economy performed well with bothagriculture (3.3% p.a.) and industry growing at moderate rates betwe 1966 and 1975. Impressivegains were recorded in education, health and rural development. In an ion, territorialpries were introduced and this enouaged production in some isolated parts of the country.

2

2.03 However, by the early 1980's, the gap between public expenditure and agegare supply hadwidened, the current account deficit was about 15% of G(DP, intlation was about 30% and theexchange rate was substantially overvalued. These economic imbalances were caused primadly bythe high level of government expenditures and were exacerbated by the decline in the country's termsof trade (collapse of the coffee prices), cost of rebuilding the collapsed East African Communityinstitutions, decline in donor aid and the war with Uganda in 1979-80. With tese difficuldes, thelevel of wublic expenditures allocated for construction and maintenance started to decline resultingin severe deterioration of road infrastructure.

2.04 The Govemment supported a highly overvalued currency by means of rationing and pricecontrols which created an acute shortage of basic consumer goods. In the manufacturag sector, theshortage of foreign exchange for importation of intermediate goods led to under utilization ofcapacity and the parallel market began to flourish.

2.05 Having exhausted the various direct means of stimulating the economy and restoring growthto pre-1975 levels, in the mid-1980's, the Govermnent attempted a number of changes in economicincentives; but these were not comprehensive enough to address the high level of distortion in theeconomy. FiLlly, in 1986, the Gcovenmuent launched its first Economnic Recovery Progrm (ERP).The objectives of ERP were to achieve a positive growth rate in per capita income, lower theinflation rate and restore a sustainable balance of payments position. These objectves were to beachieved through policy and institutional refomis, market liberalization and enhancing the role ofthe private sector. Further, measures towards exchange rate equilibrium, positive interest rates,export promotion (eanings retention) were to be implemented through a gsadual dismantling of theadministtive controls over prices and marketing and distribution afrfngements. 7The introductionof these measures stimulated production, integrtion of domestic markets and changes in productionpattrns.

2.06 With the agricultural sector responding favorably to the ERP, it soon became apparent thatthe deteriorated road infrastructure, high transpor costs and lack of reLable means of transport hadbecome serious constraints to expansion of production and integration of markts. In 1990, thenegrted Roads Program wa launched as a ten-year prograsn aimed at stabi:zatic and

restoration of the road network. Th Integrated Roads Program is essentially a component of dsecountrys economic recovery program. The Integated Roads Project (IRP-1) is underimplementation and financing is expected to be fully commied by FY1994/95 when the proposedproject would come into effect.

B. Impact of the Integrated Roads Project on the Economy

2.07 Implementaton of IRP-I has already made some significant impacts on the mobility ofpassegers and goods, and significant reductions in travel times have been achieved on many routes.Traffic volumes on the rehabilitated road sections have doubled or tripled in the past two yew.These indications of increased economic and social activity suggest that there have been incomegains resulting from the roads programs. Specific evidence of the stimulus effect of roadrehabilitation/maintenance progran on the economy is available from traffic surveys and impactstudies which have been carred out recently. Studies by USAIDI and the Marketg DevelopmetBureau (MDB)2 in 1992 and 1993 respectively indicate significant shifts in production mixes as a

lEconomic Assessmet of KWA Sdala-Mbwe Road, USAID, Febnxmy 1993.

2]%U *wole Trae in Grins and Bers T=zai Marting Deveopment Buau, Dar es Salai, Jany 199m.

3

result of improved availability of transport. ne USAID sponsored study of the socio-cono-micimpact of rutal road rehabilitation in Kilimanjaro region is particularly illustrative.

Tabke 21 Impact of RehabiUtation of the Kwa Sadala-Mbwera Rural Road_ lR~~ilmanjaro Re on

Between July and September 1992, the Kwa Sadala4bwera road was rehabilitated from gravelstandard to engi"neered gravel standard by a local contractor with USAID financing under theIntegrated Roads Project. The road which stretchesfor a total of about 12.4 km has an area ofinfluence encompassing eleven villages with a total population of about 34,000 settled on highlyproductive agricultural land The main crops are maize, beans, bananas and coffee. InDe.ember 1992 USAID commissioned an economic and social impact assessment study. Themain findings of the study were a Jbllow.: (f) Annual Average daily traffic flows had Increasedfrom about 59 in 1990 to about 274 vpd; (ii) passenger traffic had Increasedfrom about 66 in1990 to about 1,300 per day; (iff) vehicle operating costs were estimated to have declined byabout 31% in real terms (from about US$0.51/km to US$0.35/kin; (iv) impact surveys ofhouseholds, schools, health centers and shops strongly confirmed that access to agriculturalinputs, equtpment and tools, marketfacilities, consumer goods, etc., had improved substantiallycompared to i990 when the baseline studies were carried out. The internal economic rate ofreturn was re-estimated at about 33% and 41 % without and with generated traffc respectiey.

2.08 A particularly noticeable impact of the road rehabilitation and maitenance programs hasbeen increases in the nwnber of tips by light vehicles and buses w1ich confirm the improvedmobility of goods and passengers. Table 2.2 illustrates this phenonenon.

Table 2.2 Improvments h Freight and Passenger ServicesTunduma-Sumbuwanga Road (226km of unpaved road rehabilitated under IRP-)

Before rehabilitation started on this road which stretches from Tunduma on the Tanzania-Zambia(Tanzam) Highway to Sumbuwanga the capital of Rukwa Region, there were no regular bus services.As sonn as initial advance maintenance had been carried out by the contractor regular bus servicesstarted Now there arefive relar trips per!dy.

2.09 The reduction in travel fmes resulting from road rehabilitation and better ma havegeaaly shortned travel times. The impact has been to increase the number of trps and tereenhance economic and social actiiy.

2.10 Neverthless, transport (alongside credit and nrual taxation) continues to be a powerulconstraint to income growth. This is demstrated in the studies conducted by MDB in 1991 and1992. lUes reports indicate that the transport systam is charactized by high cos andunavailabilty for crop collection away from major routes and that this has limited the potetal forboth incomes growth and maket integron. The high transport costs effectively lowr theproducer prices, thus limiting incomes and production incentives. Non-availability of trspot,often caused by the reluctance of private sector truck owners to operate on badly deteriorated roadssections inhibits production, incomes growth and market integration.

2.11 Thus, te proposed project focuses on improving road conditions in high priority corridorswhich link the production areas with the dormec markets (or ports for exports) so as to reducetransport costs and foster greater market intgration. It would also give high priority to improvingessential district roads in the most agriculturally productive areas in order to support high income

4

growth objctives. s alocation of hands for --bofaoWup roads among ias based on ctea which give high prioriy to tegions with more land suitable for agriculture, highpopulan to utlize the lad and low road des (amS.30.

5

mL THE ThANSPORT SECTOR

A. Overal Sector Structure

3.01 The tansport system consists of:

(a) a road new. xk toing about 88,000 knm;

(b) two railway ystems - the Tanzania Zambia Railway (TAZARA) which liks Dares saham with Zambia and the Tanzan Railways Corporaton (MRC) whichseres the cental and northem rions and provides tt to Zaire, Rwanda,Burundi and Uganda;

(c) te four tain ports of Dar es Salaam, Zanibar, Tanga and Mtwar.

(d) a civil aviion subsector consisting of Air Tanzia Corporation, several smallaiines, two iteatonal airports and more an 60 maller domestic aixports andair strips; and

(e) afleetofroadvelesof morethan 100,000.

L The Road Network

3.02 he road neork is by far the most domint tansport mode accounting for more than 60% ofthe total intemal taffic flows. henetwork consist of about 3,800 km of paved runk roadis,6,500 km of unpaved tunk roads, 17,730 km of rwnal roads and an estmated 30,000 km ofdistrict and fieder roads. In addition there are about 30,000 km of unclassified roads which aremanaged by pstatas, national pas and vilage councils.

3.03 By the mid 1980's, the road netwok had become sevely deteriorated as a result ofiadequate mainteance ove several years. It was estimatd tat only about 15% of the trunk and10% of he rual roads respectively were in good condition at dhe start of the gated RoadsProject in 1990. As a result of the road rehabilitation, upsading and manxtena works carriedoUt during the past 3 years, the proportio of tunk roads in good condition has more than doubledad ta of ruml rads has iased by at least 50.

3.04 Despite im sse iwrove e ovrall codio of the road netwotk requirescontiation of an intensive program ofehabflitation, upgrding and maintenance. The successesachieved under IRP-I are attnbutable to impl ion of key institutional changes early in the lifeof the project, support firm the Wold Baks Road Maintenance Iave (RI) 3 in analyzpolicy issues reltd to the management and financing of roads, reom of proemet practicesand cona a an, donor coopertion in support of an integrted strategy for the roadssubsector, and itroducn of a road toll (in the f of a surarge added to the price of fuel)which i deposed into a Road Fund account for financig rehabilitaon and mnenanc works

3 RM is a cmpoat of the SSATP (SubSh Arica Trsport Policy Progmm) The RM support couy-basd effrts to develop improved poles to deal with key aset of road manaemen and taing in ihtcomuries. Mne SAT is a multidon collaborative effort to improve t t polices ila SSA. n is one of theprgams of e Aftica Technical Depar_eut imaged by Ihe Envometally Sustinable Development Diviaoa(AFES).

6

(curentty being used for nmintenance only). The key insitutional changes which were implemwntedat the start of the project included: (i) creation of a sepazue Directorate for Roads and Aerodromes(DRA); and (ii) fonnation of a Regional Engineets Office in each regon (by combining twoprously existin offices), stegften staffing and decntralizing decision making authority forexecution of road itenc activities and award of contrac up to higher fiacial limuts thanbefore. While substal improvements have been made in strengthening the Ministry of Works,icmmunications and Trasport (MWCI) (alongside the improvements in road conditions), projectimplementation has also relied on heavy technWal assistance inputs by donors. To achievesustable imprvement, the proposed project's policy and insitutional support componat willseek to fiurter build techical and managl capacity and stregthen management of the RoadFund through: (i) systematc reviews of organiional and management systems and procedures andimplementation of best practices by MWCT staff with minimum technical assistance inputs; (ii)widenig the scope of the Road Fund to increase revenues for maintenance and improving thecolletion and disbursement arrangm_ents for maitance funds to ensure their timely availabilityto users; (iu) inoducing performance-base incentive systems to increase staff motivation; (iv)providing training, especially in areas c ty posing constaints to project implementation (i.e.procurment managemen and contract administaon, local construction industry, etc.), and (v)waining of planners and engineers in transport planning at central, regional and district levels.

C. Road Transport Services

3.05 There is limited available data on te size and charactristics of the vehicle population inthe couny. However, the best available estimates suggest a total fleet size of more than 100,000of which about 47% are private cars and pick-ups, 40% commercial vehicles, 7% buses and taxis,and the balance specdal purpose vehicles. In terms of ownership, the prvate sector dominates themket for both freight and passenger services. There are no regulatory barrers to madket entryand tarffs ha been decontrolled. Howver, for intra-regional traffic, tariffs are still beingestablished through a process of negotiation between operators and the Regional TransportCoordinating Commuttees. Simlarly in Dar es Salaam, bus tarffs are negotated betwee MWCTand the public and private operators. Inter-urban and intra-urban (apart from Dar es Salaam)passenger transportaton is provided entrely by the pnvate sector at maket deted rates.

3.06 In the trucking industry, the ten Se-owned Regional Tranport Companies (RETCOs)account for about 10-15% of the marke, marketing boards and parastals account for an additional5-10% and the balance is held by the private sectw. Road passenger transport services areprovided by the private sector with the exception of about 10% of Dar es Sal.-ms madrt which isserved by Shirik La Usafid Dar es Salaam Bus Cmpany (UDA), a parastat jointly owned by theNational Transport Company (NTC, 49%e) and the Dares Salaam City Counci (51%). Details ofthe ownesip and opeatng and financial performance of the RETCOs are given in the Project Fre(Part II) which is available in the Africa Region Information Center.

3.07 Alhugh the provision of road transport services has been liberalized, a number of criticalissues remain to be addressed. These are: (i) a low rate of investnent to place the aging fleet oftrucks and buses and to cater for growing demand; (ii) limited availability of transport services forboth passengers and freight in the rural areas, especially those areas at long distanc from the mincorridors; (iiw) weak financdal and operaing performance of UDA; (tv) poor road safer, and (v)non-enforcmen of axle load conrrol regulations and the damagn eftbct on roads of overloading.

3.08 Investment Performance: ITe recent Road Trasport Sty carried out by NTCindicates that the rate of vehicle replacement is only about half of what is required. Since the rate ofdemand for freight and passenge vehicles is esimabed to grow at about 8% and 5% respectively in

7

the next 45 years, investment requiamen are substntial. In recent years, the importation oftrasport vehicles has been supported by several donors. In the past, the RETCOts investmentrequirments were principally financed through Governent loans and equity contributions. Thus,between FY1986/87, the RETCOs imported trucks for a total cost of about Tsh 4,897 miilion ofwhich about Tsh 3,886 (79%) million was financed through the Goverment (42% in loans and37% in equity contributions). The RETCOs are now required to operate on a commercial basis andto atract prvate sector capital to finance their investment needs. To assist the Governe inimplementing this decision, IDA has approved a PPF to fimd a Road Transport ServicesRestructurig Study which will produce an action plan for comercialization /privatization of theRETCOs and UDA. The restructred/prvatzed compaues would be expected to operate moreefficienly and to generate adequate funds for investent.

3.09 Rural Transport: The further one moves away from the main road corridors, the moreacute the problems of transportation become for both passengers and feight. The high costs oftansport and in some cases non-availability, constitutes a powerful constraint to production andmarketing activities. Most pdvate sector operators prefer to provide services on inter-regionalroutes mainly because of the better condition of roads. Provision of services to remote areas is leftto the RETCOs which, as parastatals, are encouraged to operate in these areas. It is expected thatcommercialized or privatized RETCOs would pull out services to remote areas untl the condition ofthe roads has improved. Since the road rehabiliation works are expected to increase the proportionof the rural road network in good condition to only about 50% by year 2000, it is likely that someareas which are cuntly served by the RETCOs could be left without service as a result ofrestructuring the companies. The Road Trnsport Services Restrucnbg Study will exumine thisissue and propose possible solutions including the provision of Govem t incntives or themaintenance and support of RETCOs in such areas pending the improvement of the road network.

3.10 Operational and nancial Performance of UDA. Although UDA is owned by the NTCand the Dar es Salaam City Council, in practice the Government is responsible for injecting newcapital or bearing the burden of its inresing operatin losses. Between 1981/82 and 1990/91 thetotl annual number of passengers caried and the total annual kIlometers made by UDA's busesdeclied by about 20% and 10% per annum respectively. Since 1986/87, UDA's financialperformance has declined substantially each year and starting in 1988/89, the company has recordedincreasing annual losses. UDA's weak financial performance is primarily due to its high overheadexpenses relative to the size of its operations, an aging vehicle fleet which is expensive to maintain,manage inefficiencies and its inability to compete effuctively against the private sector whichcontols about 90% of the market The proposed Road Transport Services Restrcturing Studywould provide mmdations for the restructuing of UDA involving privatzation orcommercialiation with no recourse to Govement budgetay support

3.11 Enforcement of Vehicle Weight Control Regulations. The Traffic Act of 1973 providesauthority for the fomulation and enforcement of vehicle weigt regulations. Under IRP-I, theGoverment agreed to formuate an actioa program for improving vehicle weight control by July 1,1991. NORAD agreed to provide technical assistance to assist with the development of theprogram and IDA agreed to fund procurement of vehicle weight control equipment. An institutionalcooperation agreement between MWCT and the Norwegian Public Roads Administration (NPRA)through which NORAD support is provided was signed in March 1993. Procurement of 6stationery and 3 mobile weigh bridges and 15 sets of radio co ication equipment to facilitatecommunication with the traffic police is in process.

3.12 The main issue with vehicle weight control is that the existig reguations which wereenacted in 1987 (Govermment Notice No. 625) are not being effectively enforced and overloading is

8

rampant, thus causing rapid deterioration of roads. New regulations which include specified feesfor a range of overloads as wel as non-pricing enforcement arrangements have been formulated andsubmitted to the Attorney General and will soon be published in the Govennent Gazette.

3.13 Road Safety. About 60-70 persons per year per 10, 000 vehicles are killed in Tanzania asa result of road accidents. While this rate is about the same as the average for the region, it isnevertheless double that of Zimbabwe and Botswana and 20-30 times the average of developedcountries. The costs in economic and social tenns are enormous. The main reasons for thecountly's poor road safety record are laxity in traffic law enforcement, inadequate traing ofdrivers, poor condition of roads and vehicles and a lack of public awareness of safty issues. Oneof the principal constraints to management of road safety is the weak institutional framework. TheNational Road Safety Council (NRSC) is an advisory council of twelve members from the publicand private sectors (appointed by the Prune Minister) and has special responsibility for educationand training. The Commander of the traffic police provides the secretariat to the NRSC and isresponsible for implementation of its policies and programs.

3.14 Some progress has been achieved in improving the institutional framework for road safety.A Road Safety Unit headed by a chief engineer was established in 1992. The Unit, in coordinationwith the Ministiy of Home Affairs, is currently revising the Road Traffic Act which will alsoprovide the necessary legislation for reorganization of the NRSC.

3.15 Under IRP-, NORAD is providing about 36 man months of technical assistance to assistMWCT in preparing a road safety program comprising accident recording, analysis and researc,infoation and education, dnver traing and licensing, traffic law enforcement, vehicle testing andcontrol and road infrastructure and environment. The assistance is provided under institutionalcoperation agreement with NPRA. Under the proposed project, NORAD will provide additionalfnding for pilot efforts in accident recording and analysis in three regions (Dar es Salaam, Tangaand Mbeya).

D. Port Subsector

3.16 The ports subsector and in particular the port of Dar es alaam consutes a vital link inthe countrys transport system. The port of Dar es Salaam, together with the two railway systmsand two road corridors (Central corridor and Tanzam Highway), comprise strategic intationaltrsport corridors serving the mainland as well as the regional economies of Zambia, Malawi,Zaire, Burundi, Rwanda and Uganda.

3.17 Traffic trends for the port of Dar es Salaam reveal;

(a) dry cargo tonnages of about 9-10 % lower in 1991 than in 1987;

(b) preponderance of transit traffic;

(c) change in mix of transit traffic in the past ten years with increases in traffic forZaire, Burundi and Malawi and declining proportion of Zambian traffic; and

(d) increased contanerization, up from 19% of total dry cargo in 1983 to about 45% in1991.

3.18 Between 1987 and 1991 total dry cargo traffic declined by about 5.2% per annum tTablI). 1992 saw a substantial increase in dry cargo traffic (about 24.3%) due to the importation,

9

through the port, of drought relief supplies for Zambia and Malawi, about 344,000 and 64,000 tonsof grains respectively. The declining dry cargo traffic between 1987 and 1991 is due to theeconomic slowdown of the regional economies, particularly Zambia, since 1989, but is also due tostronger competition emerging from other regiona ports. Operaing efficiency improvements in theport and in TAZARA and TRC are needed to improve route competitiveness and enable Tanzaiato maintain or increase its foreign exchange revenues from transit trade.

Table 3.1: Dar es Salaam Port: Past Traffic Levels (million tons)

1986 1987 1988 1989 1990 1991 1992

Dry Cargo 1.73 2.08 2.05 1.91 1.88 1.89 2.35Bulk Oils 1.71 1.50 1.86 2.02 1.81 1.92 2.28

T:tal 3.44: 3.8 391 : 3.93 3.69 3.81 4.63-

3.19 Estimates of future traffic increases will be provided by the Port Development Study whichthe Tanzaia Harbours Authority (THA) is undertading with the assistance of consultants under theongoing Port Modernization Project (Credit 2095-TA). Future traffic increases will depend on theextent to which THA manages to improve its competitive positon against other regional ports giventhe likelihood of political stability in the concerned countries. Thus, while the decline in theZambian traffic may be partly attributable to economic slowdown, there are indications that thismay also be due to use of surfice transport for imports being sourced from the South.

3.20 While overall traffic growt has been minmal, the proportion of conainerized traffic hasncreased substantially over the years Wpma.1 . It is expected that future growth ofctonainerized traffic would continue to be fbster than that of non-containerized traffic. ForTanzana to retain its competitiveness against other regional transport corridors, it will be essenalto inprove railway facilities for transportation of containers and reduce the turn around times forcontainers. Possibilities for private sector construction and operation of inland container bandlingfacilities also need to be explored.

3.21 In the ports, attention needs to be focused on trainig, improving salaiy scales, productivityincentives, and divestiture of cargo handling and other activities. THA has initiated acommercialization/port restructuring study (under Credit 2095-TA) which would provide the basisfor implmentaion of a new corporate stateg. Other related issues are the need for dismann ofthe monopoly fimctions of the National Shipping Agencies Company (NASACO) and the TanzaniaCentral Freight Bureau (CFB). NASACO was established in 1973 to take over the shipping agencybusiness when private sector firms were nationalized. The CFB is responsible for booking space onships for both imports and exports. There would likely be cost advantages if competition wasallowed in these areas. Govermenfs plan to address these issues is reflected in its Letter of SectorPolicy (Anmex 3.1).

l0

E. Railways

3.22 The railway systems play an important role in the country's overall transport system. Theyform, together with the ports, transport corridors for the country's trade flows, and are responsiblefor a significant proportion of the internal movement of passengers and goods, particularly themovement of bulk commodities between Dar es Salaam and the distant centers in the hinterland.They also carry transit traffic for the landlocked regional countries and thus contribute significantlyto the country's foreign exchange earnings.

3.23 Tanzania Railways Corporation. From its establishment in 1978, TRC suffered fromdeclining traffic levels and poor financial performance. The principal causes of these problemswere poor availbility and utilization of assets, inadequate maintenance, inflexible tariff policies,weak management and overstafling. To address these issues, an Emergency Program (EP) waslaunched in 1987 as the first phase of a long-termn corporate recovery plan. The EP was successfulin stabilizing TRC's overall performance and a follow-on phase was launched in 1990 with thesupport of IDA and other donors (Railway Restructuring Project, Credit 2267-TA). This project isaimed at assisting TRC to strengthen its organiztion, eliminate regulatory bottlenecks to itsoperations and set it on a course to achieving commercial viability. The project also providessupport for infstructure rehabilitation.

3.24 About 20% of TRCs total tonnage is transit freight destined for Zaire, Rwanda, Burundiand Uganda. Thus, TRC makes a significant contribution to the transport sector's total foreignexchange revenues. With improvements in efficiency in both TRC and the Port of Dar es Salaasn,Tanznia could increase or at least maintain its share of the trade traffic of the hinterland countrieseven in the face of emerging competiton from other regional traffic corridors.

3.25 Tanzania-Zambia Railways (TAZARA). The TAZARA railway line primarily serves theZanbian and Malawian markets although in recent years its share of the domestic traffic hasincreased. TAZARA's operations are plagued by poor locomotives availability and reliability,inadequate coordination with the Zambia Railways, organizatonal and management inefficienciesand weak financial performance.

3.26 These problems are being addressed under a multi-donor efficiency improvement program.The efficient operation of TAZARA is essential for the competition of the port of Dar es Salaamagainst other regional ports.

F. Civil Aviation

3.27 Domestic air travel is important in Tanzania because of the long distances involved andbecause of the need to connect the abundant tourist attractions which could become a significantsource of foreign exchange in the future. There are more than 60 airports (including air strips) ofwlich three (Dar es Salaam, Kilimanjaro and Zanzibar) are used for scheduled international flights.The main problems encountered include lack of appropriate communication, navigation or firefightng equipment and in some cases badly deteriorated runways. The fundamental problem is thatairports are managed as part of Government departments without managerial autonomy or clearlydefined financial objectives. The Government intends to create an agency to be responsible formanagement of the major international airports on a commercial basis. The Department of CivilAviaton would be restructured and its role limited to regulation and licensing functions and initiallymanagement of the rest of the airports. As individual airports performance improve, they would betranssfrred to the Airports Authority. In the long-term, management of smaller domestic airports

would be devolved to local authoties. Under the proposed project, IDA assistance would beprovided for resurfcing of the badly deteriorated mmnay at Kilimanjaro International Airport. Teresurfacing is needed to enable continuation of flights into the airport which is important fotourism. The Government has provided in its FY1993194 budget adequae funds for procurement ofa navigation aids systems for the airport. During negotiaffons agreement was reached thatMWCT would complete a civil aviation restructuring study and agree with IDA on an action planfor implementation of agreed recommendations of the study not later than April 30, 1995 (parg8 01 (A)d) JJP-I is fimding management assistance to support ATC's restructuring/privatizationefforts. The Government has granted ATC managerial and operational autonomy and ATC is ableto set its own tariffs as well as to establish its staff hiring and remuneration policies. As a resultATC has reduced its workforce, re-established sound accounting systems, increased tariffi in 1992and is caying out financial restructuning of its balance sheet as a prelude to privatization.Iinplementation of these measures has enabled ATC to achieve, for the first tme in more than adecade, a modest operatig profit before interest during FY1992/93. To ensure continued progressin the preparations for privatization, ATC' should avoid incurring new long-term debt and therefore,during negotiations, the Government agreed that AC would refrain from entering into aircraftor equipment leasing agreements or invest in aircraft or equipment costing more than US$1.5million for the purpose of increasing its operating capacity without prior consultation andagreement with LDA (para. 8.01 (Al(a)).

G. Sector Organizaton and Administration

3.28 At present responsibility for ad on of the transport sector is divided among MWCTand the Prime Minstes Office. Since in , administration of the sector has beensubjected to several changes as a result of changing political attitudes. In 1984, the then separatMinstre of Works and Transport were merged to form the Ministry of Commnications andWorks (MCW). In the roads subsector, MCW was given responsibility for tunk roads, theMnistry of Local Govemment and Cooperatives, though its Distrid Councils, was responsible fordevelopment and maintenance of district roads and the Prime Ministers Office, through RegionalAdministrations, was responsible for the regional roads.

3.29 In 1990, MCW was again split into the Ministry of Works (MOW) and Ministry ofCommunications and Transport (MCI). MCT was responsible for overall transport sectoradinistation including oversight responsibilities for the tansport parasatls. On October 13,1993 MOW and MCT were again merged to form MWCT. The orgnizational structure ofMWCT is still being worked out. In developing new orgarrangements MWCT woultd beguided by the following principles: (i) the need to separt policy planning and formulation,ovesight and monitoring from operations and mnagemet of sactor activties; and (ii) ensure thatin the short-term the so far successful project implementation aran for the IRP programwill remain in force. During negotiations, the Government agreed to consult with IDA on anyproposed changes before thy are put into effect, in Internal organizational arrangements thatwould materially affect the implementation of the project (para. 8. 01 (A)&)).

3.30 The following activities are already being managed by autonomous parastatls underMWCPs oversight:

(a) Ports by the Tanzan Harbours Authority;

(b) Railways by Tanzania Railways Corporation and TAZARA

(c) Inland water ransport by TRC;

12

(d) M gmen of trmnsport companes and advisory support to theGovenunent on tanspost issues by the National Tanwsport Corporation;

(e) Train by the National Institute of Transport (NrIl), the Dar as SalaamMaritime Institute (DMI) and the Morogoro Works Traiing Institute(MWT1);

(f) Posts and Teleommcations by Poss Corporation and Telecommnunica-tions Cmpany;

(g) Air transport by Air Tanzania;

(h) Coast and ocean trasport by TACOSHILI and SINOTASHIP; and

(i) Developmet of domestic onstruction industry by the NationalConstruction Council.

3.31 About two years ago, the Governnt established an autonomous Plant and EquipmentHire Company (PEHCOL) to own and ret road maintenance equipment to MWCTs RegionalEngnes' Offices (REOs) and to private sectr contracto on a commercial basis. Efforts are nowunder way to stengii, PEHCOL's mangemt prior to private sector participation. Furthereffor to s =prt opeating fiuctions fiom MWCT are being foused oan the road network-mi urgional transpont companies and UDA, and on the civil aviation subsector. Inpractice MWCT ladcs the necessary adequately-trained and motivated staff to formulatecomvrehesve sworal policies, coordinate sectoral development plans, monitor the performance ofindividual parastatals and underakce regulatory fucions. Thefore, the proposed project's policyad institutional support mpnt includes vaious fms of trnig to build capacity in these

areas (aras. 5.!8. 5.19 and 5.20).

3.32 MWCT is responsible for nagent of the trunk and regional road netwoResponsibiity for the district and urban roads rem with the local arthonties under the overallministera overt of the Prime Ministeres Office. As part ofthe nization of the tansportsector, the Govemet is considerig, amongst other options, establishing a semi-atonomous roadsagency, wihin the next 2 to 3 years, to manage the road network (aM, 4.15). In the interim, theGovernment is implementg a management action pla ained at transformuig the culture of theDirecte of Roads and Aerodromes into a perfrmance-oriented orgnization. Ihe managementactin plan which compnse the estabhment of policy and tecnical advisory bodies andimp ttion of perfmance-based incetive systems is described in deti in Part I of theProject Fie.

IL Sector Development Strateg

3.33 By the mid-1980's, Tanzaias transport sector had seriously deteriorated as a result of pastneglect of manan, iadequate funding, lack of proper planning and coordination and highlycentralized procum ant mnagemet procedures. inadequate funding was a pardcularly majorfactor in the deterioration of the transport in tructure as the Government gave relatively lowpriority to he ransport sector (about 10-13 % of the total development and rrent budget). Thecontion of the countrys transport infustrcture became a serious constra to the success of theGovnments Economi Recovery Program To remove this constaint to the recoy of theeconomy, in 1987, te Goverment formuated a National Transport Policy which amongst other

13

is recommended a significant shif of public expenditure resources to transport infrastructure(20-25%A) including both capital and recurm expedtures.

3.34 Since the the Govnmet's policy objecive is to generate immdiate improvements in thesupply of transport servces and to iunate long-tenm development of the sector in tandem with therecovey of the economy. Comprehensive programs for each of the principal subsectors wereformulated and financng was secured from donors and multlateral institutions. ih the roadssubsector, the fir phase of the Integrted Roads Progam was designed to stabilize the condiion ofthe network tbrough rebabilitation and maintenance. In the ports subsector, the Port dniztonproject was designed to expand conainer storage, rehabilitate and upgrade inland continerteminals and provide tachnical assistne for insutional development. In the Railways subsector,a Railways Rsrting Project (RRP) was formulatd to provide support for infstructurereabilition, st ig TRC's organization, remove regulatory bottlenes and set thecoroation on a path to achieving commercial viability. All the three investnent programs areunder implementation and the proposed project would be the second phase of the Interated RoadsProgrm. The proposed project would consute the complete investment program for the roads(tunk regional and essential district) under the responsibility of MWCT during the projectimplementaton period. During negotiations agreement was reached that the Gownmnt wouldnot wudertake any proposed new investment in the road subsector estimated to cost more thanUS$3.0 million unless it has an economic rate of return of at least 12%1o, talcing into accountsocio-economic criteria (pmra. &OI (A)(c)) such as the need to evacuate food from surplus todeficit areas and to provide access to social servic.

3.35 Overall the total budget allocation for the transport sector has incresed from about 14% toabout 26% in FY1992/93 which is in line with the level mmded by the National TransportPolicy document in 1987. The relative currt priorites among sectors are illustrated in the gaphsbelow.

3.36 The developmet budget compnrises four major categories: economic services; prctiuctivesecto, social services and general administrationL The economic services sector which includestansport, energy, water, post and t trade etc.; ommands the largest share of thedevelopment budget (45-55%) and transport is the single lagest subsector. Socal services whichinclude health, education and housing is the second larget development budget category acountingfor about 25-26% of the total budge The budget allocafions for FY1991/92 and FY1992/93 showincreasing shares for the economic and social servic sectors and declining shares for theproductive and geadministration sectors in line with the Govemes policy objectives ofreducing the size of Govemnment and encouraging private invesmn in the productive sectors.

14

Allocation of Deeopment Budget Among Sectors (%)

1991192 1892/93

ADMIN ADMIN

SOCIALSOCIAL 259%. ....

ECON. ECON,49% 55%

PROD. 17%

3.37 Within the transport sector itsel£ the road subsector comnands a high proportion of thedevelnpent budget as can be seen in the graphs below. lle proportion of the transport sectordevelopmet budget allocated for roads increased from about 61% in FY1987/88 to about 66% inFY1992193 prinarily as a result ofthe implenon of the IRP-I. The share of the railwayssubsector has significanty increased from about 5% in FY1987/88 to about 13% in FY1992/93respectively as a result of the disbursements under the Railways Restructuring Project

Allocation of Development BudgetAmong Transport Modes

40___._ _ ._ 19991/92

o97 s 10 a u19"M 4 24 66 991j92 6 4 74 1619921" 13 6 66 16

Is

3.38 Whereas the sector's share of the development budget's increased from about 17% inFY1987/88 to about 38% in FY1992/93, its share of the recurrent budget has increased at a slowerrate except in the roads subsector where establishment of the Road Fund has increased maintenanceexpenditures by about three times the pre-1987 levels.

3.39 The Govermments current strategic objectives for the transport sector remnain centered oncompleting the recovery of the sector and laying the foundations for sustauned long-termdevelopment. To achieve these objectives, the Government's strategy consists of the following fourprincipal elements:

(a) an investment strategy centered on th_ principle of giving first priority tomnaintenance in allocating resources and on rehabilitation and upgrading of facilitiesrather an on new construction;

(b) a resource mobilization strateg aimed at achieving self-financing for thetransport sector parastatals in ports, civil aviation and road transport services andensuring full coverage of road maintenance expenditures from user charges in theroads subsector,

(c) an institutional inprovement strategy predicated on the need to enhance efficiencyof resource use through increasing managerial autonomny and accountability, andpersonnel sldlls and incentives; and

(d) a market liberalization strategy aimed at increasing private sector participation inrehabilitation and maintenance of infastrucue and operation of transport servicesand at achieving complete deregulation of tariffs in the sector.

L Previous Bank Group Involvement in the Sector

3.40 Since Tanzania became a Bank group member in 1964, it has received 12 credits and loanstotaling about US$ 452.6 million for financig transport sector investments. In the roads subsector,the Bank has financed six highway projects, the ongoing Integrated Roads Project (Credit 2149-TA)and a truckdng inustry project (Credit 743-TA). In fte ports subsector, the Bank group hasextended three credits totaling US$125.5 million to help finance port modernization by expandingcontainer handling capacity, improving equipment mantenace and general management skdlls. Thefirst credit to the Railways subsector (Credit 2267-TA) was approved by the Board in 1990 for atotal cf US$ 76 million. The earlier projects concentrated largely on financing of construction andequipment and the execution of physical components was generally satisfactory. In later years,focus shifted to strengthening of institutions with provision of technical assistance and training,particularly for road maintenance and road transportation.

3.41 The eight Project Performance Audit Reports (PPAR) which have been preparedtogether with the Bank's Operations Evaluation Department report on all Tanzania projects between1964 and 1988 provide a detailed account of the lessons learned under these projects. The mostsignificant overall conclusion from these reports is that while the objectives of physical investmentwere genrally achieved, success in meetng the objectives of tecnical assistance and trang waslimited. The success that was achieved in helping the RETCOs to improve operational and financialperfomance to satisfactory levels under the Trucking and Industry Rehabilitation and ImprovementProject (Credt 743-TA, approved in 1977), was considered sustainable only with significanttechnical assistance input. The fourth and fifth highvway projects supported a two-phase effort toestablish a tunk road maintenance operation, which filud to meet its objectives of proiding

16

adequate training for road personnel. lhe first three highway projects supported investments whichwere satisctorily completed although with some signficant delays. The Sixth Highway Project isalmost completed. It was slow in the initial phases because of institutional weaknesses and outdatedGovemnment procurement regulations. A Project Completion Report will be prepared inFY199419S.

3.42 Ihe Government and the donors involved m the sector recognized the undedying reasons forthe poor investments performance as:

(a) inadequate Government budget - only about 10-13% of the Government's budgetwas devoted to the transport sector and witfin this allocation maintenance receivedlower priority than investment;

(b) inefficient and weak institutonal structurs - inadequate numbers of sufficientlytrained and experienced staff and efficient management procedures;

(c) lack of coordination among donors to focus resources on the most critical areas -investments were being selected on the basis of donor preferences instead of on thebasis of properly prioritized Government prograins;and

(d) non-itegron of institutional and policy aspecs with investments - particularlyfailures to correlate investments with funding policies for sustainable maintenance.

3.43 In a series of meedngs starting with the Donors' Confernc in Amsha in 1987, theGovernmnt and the Donors tackled these issues, incorporated the lessons into the desi of the

wntegat.d Roads Project and have continued to use them as guidelines in monitoring theperforance of the project. Specifically, under IRP-I, the Governmet agreed to: (i) increase itsresource allocation to the transport sector to about 20-25% and to increase its fiuding of roadmainteance gradually to 100% by FY1995/96; (ii) undertake a study for reform of publicprocuremet and issue interim procurement guidelines for IRP-I; (iii) coordinate donor support forimpleentatio of an integated subsector invemt strateg; and (iv) to hold projectimplementation and annual workshops as well as a mid-term project implentin review.Further, in 1991, the Government joined the Road Maintenance Ifitiative and appointed a NationalRMI coordinator to help formulate management and finaning policies for the subsector. An Inter-Minsral Steering Committee was formed to guide the pohicy reform initiative. The work of theRMI has contributed to the policy and institutonal improvements that have taken place.

3.44 The proposed project design is based on: (i) a series of discussions between theGovmmnt IDA and donors since 1991; (ii) the outcome of the project implemeon reviewmeetings hosted by the Govemment and attended by donors and IDA in November 1992; (iii) theGovamaens docuent entitled "Peentation of the Second Integrated Roads Project", which wasdisuibuted to the donors in June 1993; and (iv) IDA appraisal and post-appraisal missions whichvisited Dar es Salaam in June and October 1993 respectively. The project design has also takenito account the experience gained under IRP-L particularly the benefit of project launch and annualworkshops, regular consultaions between donors and the Govemment including regular reportingsystems managed by CODAP. During the mid-erm impl ion review meetings theGovemen made detailed presentations of the impltion stats of each component andproblems were idenifie d discussed openly with the donors. The Govemntl also presentedtwo matrices on the stats of policy actions for each transport mode and for the roads subsector.The review mens suggested the need for fitmre attntion to be focused on improving the tuielyprovision of adeqat funds for road maintenance, further decentralization of implementatao

17

responsibility for rhabiitaton and matence to the REOs through appropnate or ionalchanges and increased conuacting out of wokss. The proceeings of the meetings are contained intwo volum of a report entitled, "The Summary of Proceeings and Papers presented at the IRP

impleman Review", copies of which are available in the Project File (Part 1) in the AfricaRegion Iformation Services Center. The Govemnment's preseation document for IRP-IIreviews the rationale for fiarter policy refonn and for continued financial support to the roadssubsector, in particular, provides funding estimuates needed to achieve the developmental objectivesof the IRP program and the road condition targets. It also outlines in matrix form, the further&'tions to be underta>en to achieve improvements in resource allocation and institutional capacity.'"ne Government will r.vise the docunt to reflect the final project design and the policy andinstitutional reforms to be undertake under IRP-II.

18

IV. THE ROADS SUBSECTOR

A. The Network

4.01 Tanzania has about 88,000 kan of road network of which about 60,000 km form theclassified network. Within the classified network about 10,281 km are trunk roads, 17,730 areregional roads and the rest are district roads. Trunk roads constitute the primary road network.Regional roads are the second layer which links up the trunk roads with the regional and maindistrict centers. Details of the trunk and regional road networks by surface type are given in Table4.1 below.

Table 4.1: Trunk and Regional Roads by Surface Type in Km (as of April 1992)

face Type ... : -Trunk Regional T.talAsphalt concrete 1,036 7 1,043Surfae dressed 2,216 90 2,306Gravel 2,645 6,665 9,310Earth 4,384 10,968 15,352Total 10281 17,730 28,011

4.02 Tanznia's road network can also be described in terms of traffic corrdors. Trafficcorridors typically connect nmajor urban areas, ports and border points and areas of high agriculturaloutput There are nine such corridors.

Table 4.2 Main Traffic Corridors and Traffic Levels

Corridor. KRm 1 - - : - Krnm : -- -K- AA:DTTanzania-Zambia 927 1,324 up to 1,500North-Eastern 657 950 -1,500Central 1,230 1,584 -550Lake Circuit 850 1,019 -500Southern Coastal 508 508 -500Southern 948 1,326 -200Western 1,202 1,286 -100Great North 706 1,024 -400Mid-West 1,201 1,201 -100

I/ Without branches.2/ Including branches.

4.03 Table 4.2 shows that the highest traffic levels occur on three main corridors, viz, theTanzam, the North -Eastern Corridor and the Central Corridor. The high levels of traffic on thesecorridors reflects the econonic importance of the agricultural and maret centers which they serveas well as their role as international transit routes. The table below illustates the importance of thecorridors in terms of the ten largest population centers or urban markets. Among them, the three

19

most important comdors serve urban markets which account for about 60 percent of the county'stotal urban population.

Table 4.3: Largest Urban Markets and Related Transport Corridors

'Urban MIaikel PouAtio CIrrickw

DareS Salaam 1,361,000 Tanzam/North/EaSt/Southemn CoastalMwanza 223,000 Central/Lake CircuitDodoma 204,000 Central/Great NorthTanga 187,000 North EastMbeya 153,000 TanzamArusha 135,000 Great NorthNorth EastMorogoro 118,000 Tanzam/CentalShinyanga 101,000 CentralMoshi 97,000 North East

4.04 The condition and levels of traffic on each of these three corridors are briefly describedbelow.

4.05 Tanzam Highway comnects Dar es Salaam and its seaport to Zambia, Malawi and Zaire.Traffic volumes range from 250 vpd between Mbeya and Tunduma to about 1, 500 vpd near Dar esSalaam. A large proportion of traffic on this road is heavy vehicles carrying imports and exportsfor the neighboring rgional economies and central Tanzania in compettion with the Railways.

4.06 North-Eastern Corridor. The conridor starts from Chalitze, about 100 krn west of Dar esSalasm on the Tanzain highway and links up Dar es Salaam with the towns of Moshi, Anisha andTanga and th Kenyan border m the north. The highest traffic volumes occur between Moshi andArsha (about 1,500 vpd) and between Segera and Chalinze (about 600vpd).

4.07 Central Corridor. The central corridor rivals the North-Easten and Tanzam corridors ineconomic importance. It is the longest corridor (1,076 kan) connecting most of central Taaniawith Dar es Salaam and providing an important transport corridor for the landlocked countries ofBurundi and Rwanda Two sections of the road betwee Morogoro and Dodoma (about 256 km )and between Isaka and the Burundi and Rwanda borders (333 kan) are bitumenized. The Morogoro-Dodoma section has deteriorated substantially and is scheduled for resealing under IRP-I. Thehighest traffic volunes occur between Morogoro and Dodoma (about 400 vpd). On the rest of thecorrdor, traffic levels approximate about 200 vpd. These traffic levels reflect a substantal incrsein the past 1 1/2 years which is attnbutable to improvements in the economy and to the moderateefficiency improvements in the port of Dar es Salaam.

4.08 Regional Roads. As might be expected, the 4istribution of regional roads shows a closecorrelation between land area (sq kIn) and the hngth of the road network and also regions withhigher agricultural output generally have larger size networks. The regional disbution of thenetwork is shown in the Project File (Part II).

4.09 Network Condition. The gaphs below illustrate the condition of the tnruk and regionalroad networks at the start of the IRP-I and about two years later. The progress is remarkabie in thecase of trn roads where the proportion of roads in good conition has doubled and significant(50%) for egional roads.

20

Road Condition

TRUNK ROADS -1990 0 Gd R0GIONAL ROADS -1990 0 Gesd

| Fair | F.13% 9K

-------- 32%

53% @ 34% 59%

TRUNK ROADS -1992 RWGONAL ROADS- 1992 °

Far M IF,

27% 28% pow ~~~~ ~~~~~14% .

36% j

45%

TRUNKS ROADS -1993 Go0 REIONAL ROADS 1993 3 Goo

2% 198%Peor38%

39% 44%

B. Subsector Development Strategy

4.10 By 1990 the road network had deteriorated to a very low level as indicated in the graphsabove. The Government and the donors identified the principal causes as:

(a) past iadequate allocation of resources for both regular and penodic mntnanceand for rebabilitation works;

(b) a highly centlized and poorly coordinated tansport ad raion system; and

(c) cumbersome procurement nis a augments.

4.11 IRP-I was designed to address the above problems and the progress achieved to-date interms of improving the mobility of passengers and goods, and encourging agriculural producfionis attributable to implementation of a stategy comprismg a ightly integated package of policy,instional and investment elements. These strategic elements fall into four principal categories asfolows:

(a) Investen Stategy

21

(b) Resource Mobilization Strategy;

(c) hstitutoal Improveent Statg; and

(d) Matket Liberalization Strategy.

(a) Investment Strategy

4.12 Resource Alocation. Prior to IRP-I, the road subsctor received only about 3-6 perct ofthe total public expenditur budget whie other contries in the regon with better infastrucueallocated between 10% and 20% for roads. Under the new trasport sector recoverl program, theGovernment's strategy for the roads sector was cetered on two prnciples. First, the overall size ofthe roads budget was to be increased sigificantly in line with the envisaged b-ae of the transportsector of 20-25 percent of total public expenditu. Second, road works were o be foused onrehabiitation and upgrading of pnority tUnk and rural roads that are essential for evacuation ofagriculur products. The shae of the transport sector has increased to about 38.5 % of the totalpublic expendiure budge in FY1992/93 of which more than 50% was for the roads subsector.The sector's FY1992/93 share of public exeditures is co with the 35% Rolling Plan andForward Budget Guidelines for the period FY1993/94- FY1995/96. The focus of the ivestntstrategy on unk and rural roads targeted at evacuatg agricultural products has been lagymaitained. The emphasis on th transport sector and on roads in particular wil be mainAined inallocatig pubLc editures among sectors. Ia ine with the ovall ic objectives,high prity will continue to be given to roads liing agricultural areas with consumer makets (orports for exots), but inxeased emphasis wil now also be accorded to roads that would supporttourism, minng, and other significant economic activities.

4.13 MWCT's network develoWent strategy reflects the following priorities:

(a) completing upgrading and rehabilitation of stategic corrdors;

(b) enrung connecivity betwen different levels of the network;

(c) caryig out spot improvements where these are more cost-efihetiv to de-bottleneck entffe routes tan complete rehabDition of the routes; and

(d) rehabilitation to minimum standards of road sections which have marginaleconomic rates of reurn but are important for tof food fom surplusto deficit regions.

22

(b) Resource Mobilization Strategy

4.14 A critical element of subsector development strtegy is resource mobilization. Since theadoption of a new tansport policy following the Arusha Conference on transport (1987), theGovernment has pursued the mobilization and allocation of adequate resources for trunk andregional roads networks as one of the most critical elements of its subsector development stategy.To implement this stey the Government introduced a road toll with effect from July 1, 1991, andopened a special account into which it deposits the moad toll and other road user charges. UnderIRP-1, an agreement was reached betwen the Government and IDA obligating the Government toptrde specific annual allocations for road mamtenance and to fiuy fund all road maintenance,either from the Road Fund or through its own budget by FY1995/96. Table 4.4 below shows theannual levels of Govemnmt budgets for recurrent expenditures and compares them with theestmates made at the time of IRP-I appraisal. There are three imporat points worth noting withregard to mantenance fning under IRP-I. First, the levels of budgeted recurrent expenditureshave exceeded the appraisal estmates in every year. Second, in FY1992/93, the flow of budgetedfinds to the Regional Engineers Offices were considerably delayed due to problems with thebaking system and other changes in the administrative methods for the Road Fund Ihird, donorcontributions were, in the past, not fully accouted for in the Governn's budgets. While, thelevels of donor funding for mantennce were initally less than expected at appraisal of IRP- theyhave recently increased to significant levels.

Table 4.4: Recurrent Budget ruianang (in USS million)

IRP-J AppraisalEsfdmtSes

Total Maint. 18.6 16.1 16.0 18.4Funding

Requiredof which:

Govt. 7.5 8.1 9.6 13.8(% of toial) 40.0 50.0 60.0 75.0

Donors 11.1 8.0 6.4 4.6

Acual Govt 4.0 6.5 5.8 10.8 12.0 14.7 21.0Contri.

4.15 With historically high levels of budget deficits, extrnal loans and grants have been used tofinance both development and part of the recuent budget. The Governmen's overallmacroeconomic strategy includes reducing the size of the govenment and parasals sector, andrequiing the infitructure and social service sectors to reduce dependence on the Governmenatbudget through improved cost-recovery policies. This would enable recunent costs in these sectorsto be fully met from domestic resources. Ineational loans and grants would then be limited tofunding investment. In the roads subsector, full coverg of ecurrent costs would be achieved byFY1995/96 as agreed under IRP-I.

2 Govemaent Conti-bution as estimate.

23

(c) Institutional Improvement Strategy

4.16 Major causes of the precipitous decline of the road network during the 1970's and 1980'sincluded the impact of devaluation on salaries, a weak and inefficient institutional structure foradministration and management of the network and inadequate funding. Under IRP, progress hasbeen achieved in reorganizing the then Ministry of Works to strengthen planning and programmingof the tunk and regional road networks through crcation of Directorate for Roads and Aerodromesand decentralization of authority for implementing road maintenance to the REOs. IDA and otherdonors have provided technical assistance to the REOs in some of the regions to assist withestablishment of maintenance planning and implementation systems and to train local staff.Standard procurement documents have been agreed with WA for use under the project and morethan 150 personnel have attended procurement training. Even more significantly IRP-I is financinga Procurement Reform Package which includes a comprehensive revamping of public procurementpolicies and procedures, org&.. - tion, and training for procurement and stores numnagement. Iheconsultants are on-board and the inception report was submitted in December 1993. This study willbuild on the reforms concerning procedures and standard documentation agreed to for IRP-I andbuild on the experience of IRP-I. This is the first effort undertaken by the Bank's Africa RegionalOffice in capacity building in the procurement area in a comprehensive manner.

4.17 The RIu is also supporting the capacity-building and policy reform process initiated underIRP. When the Government joined RMI (para. 3.43) a Coordinator was also appointed Policy

Adviser to MWCT and now works full-time assisting both IRP and the RMI to promote sustainablepolicies for managing and financing the road network. The Government's RMI unit is supervised bystaff from the Africa Technical Departnent which supports a variety of activities designed tofacilitate policy dialogue, and build consensus on new policy directions. The strength of the RMIprogram is that: (i) it has managed to actively involve the private sector in the policy reformprocess; (ii) since it works in parallel with the Bank's lending program, but is not directly tied to it,the reform process has been able to move at its own pace; and (iii) it has built a broad consensusthrough use of flexibly-designed study tours, small-scale studies carried out by local consulants,followed by workshops to share experience. The greatest strength of the RMI has been its ability tobuild commitment. The policy reform program is seen as a Tanzanian solution to a uniquelyTanzanian problem. Eight other countries in SSA are also participating in the RMI and a great dzalof added value has been derived from exchange of ideas between the various participating countries.

4.18 The Governnent recognizes that sustinability of the road network recovery programrequires further efforts to strengthen the organization, management and financing arrangements inthe subsector. The major weaknesses of the present organization, management and financingarrangements are:

(a) low level of salaries and lack of incentives to attract and retain appropriatelyqualified staff;

(b) inflexible staff recruitment and hiring practices;

(c) absence of commercially-oriented management structures, management informationand financial control systems; and

(d) lack of a financing mechanism which requires autonomy and administrativeimprovements to make the flow of fimds automatic.

24

In the context of the Government's overall sectw istituional iprovemt strtegy ofdecenralizin responsibilities for operation and management of transport activities to the privatesector or semiautonomous authorities, an action plan has been developed for reorganization of thesubsector. The action plan includes (i) the formation of the Central Roads Board (CRB) and ofRegional Roads Boards to advise the Minister on roads management issues; (ii) strengtheingmanagement procedures and systems within the Directorate of Roads and REOs through the workof a recently established advisory services grou (iii) reviews of possible organizationalarrangements for management of the subsector; (iv) strengthening roads fiansing arangements.Four of the CRB's members would represent the private sector (Chamber of Commerce, Institutionof Engineers, Automobile Association and Roads Association). This is expected to grealy increaseuser participation in the decision-making process in fte subsector. The organizationalreviews/studies are expected to result in the creation, within two to three years, of a semi-autonomous Road Agency to manage the trunk and regional road networks. The road agency wouldhave freedom to hire and fire staf, establish competitive salries to attract appropriately qualifiedstaff and to establish commercially-oriented management procedures (pares. 5.09 - 5.14) Duringnegotiations, it was agreed that, in the interim MWCT would, bv Credit Effectiveness commenceimplementation of a performance-based incentive sc.heme for its staff who are involved in themanagement and implementation of the project (vara 8 01 tB) (a).

4.19 Also key to sustainability of fte road network recovery program are the institutionalarrangements for the managm of the Road Fund. The Govemment recognizes the need tostrengthen the operation of the Road Fund so as to ensure the regular flow of adequate funds to theREOs responsible for implementing road works. To improve administration of the Road Fund, apossible alterative to the current arrangements of passing the revenues through Customs andthrough the Ministry of Finance is for the oil compames to make direct payment of the road toilproceeds into the Road Fund. Varfous options for management of the Fund are being consideredunder an EEC-Ffnanced Road User Charges Study and an action plan for Implementing agreedrecommendations will be agreed with IDA prior to effectiveness of the proposed CREDIT (ara8.01 i(B)(c)).

(d) Market Liberalization Strategy

4.20 The market liberalization strate adopted at the start of ERP-I includes:

(i) the promotion and ouragement of the local contractors to participate in therehabilitation and maitenance of road infirtructure;

(ii) encouragement of private plant pools to commercially operate and hire roadmaintenance equipment; and

(iii) providing more opporunities for private sector participation in provision of roadfreight and passenger transport services.

4.21 Construction Industry. At the start of IRP-I virtually almost all roads works were eitherundertake by international contractors or by the MCW's force account brigades. Part of the IRProad network stabilization program is to convert MWCTs Roads Directorate into a planning,contracting and works supervision unit to leave the actual execution of work to international anddomestic contactors. Substantial progress has been achieved m the past 3 years, more than 20rehabilitation and periodic maintenance contracts have been awarded to local contractors andseveral small maintenance contracts have also been awarded. Increasing attention is now focusedon imsproving contractors' performance and on developing more contractors to keep pace with the

25

work volume. A more detailed description of the domesfic construction industry and the sey forits development is provided in the Project File (Part 11).

4.22 Equipment Maagement. Under IRP-I, it was agreed to c liz the managmeof roads contruction equipment. All major road construction equipmet (except in a fiw cases ofdonor supported equipment pools) has been tranderred to PEHCOL which started hiring out unitsto REOs and contractors in July 1992. Donor supported equipment pools are also beingcommercially operated Te original intention was for establishment of private plant pools whichcould compete with PEHCOL. PEHCOL its, although onginally established as a parastaa wasto operate on a commrcuial basis and gadually to introduce private sector participation. DuningFY1991/92, the Govemment decided not to proceed with private plant pools for several reasonsincluding: (i) the resurnce of local road contactors who could take advantage of the liberalizationof financial and foreign exchange madts to equip themselves; (ii) the high cost of Cating severalplant pools and guaranteing them fixed levels of work progams, and (iii) the lihbraza ofinvesent rules and regulations which opened the door for the private sector to establish plant hirebusinesses without special assistance from the Govenment

4.23 PEHCOL has encountered significant problems, there were considerable delays inmpleting the transfer of equipment from MOW to PEHCOL and in gettg PEHCOL operational.

in addition other problems included the inital under capitalization, the poor condition of equipmentinherited from MOW, and te rapid build-up of arrears of receivables once operations commenced.These problems were conunded by the lack of adequate nmagerial skllls to operate a plant hirebusiness within PEHCOL. To address these problem, a Director General has been appointed, andother top managers are being recruited. PEHCOL has reduced the number of branches by abouthalt closed some workshops, reduced staff numbers, and egagd onsultants to prepare financialaccounts and design a suitable accounting system. Other actions in progress include processing ofcotats for: (i) technical services to manage proauemet of spare parts and carryout rehabilitationof equipment; (ii) consulant to value PEHCOLs asses; (iii) consultant to assist PEHCOL withrecruitme of top management; (iv) consultant to design performance monitoring indicators to beagreed between PEHCOL's managamt and PEHCOL's Board of Directors, and on the bas ofwhich mmagne incentives would be demied. The mnin focus of managenrent is to u'creaseequipment availability and utiliation and to prepare PEHCOL for privte sector participation inabout 24-36 months. Agreement between management and PEHCOL's Board of Directors onmanagement performance monitoring indicators together with the related incentive systems willbe a condition for effectiveness of the proposed Credit (Dara 8.01 (B)(b)).

4.24 The lack of a market for long-term capital is a constaint to fte acquisition of roadconstruction equipment by the private sector. However, contactors are increasingly purchasingtheir own equipment. PEHCOL has also formulated an action plan for auctioning some of itsequipment which it camnnot maintain or rehablitae and it is expected that private sector conutaorswill purchase and rehabiltate this equipment.

4.25 Road Transport Services. There are no barriers to entuy into the madret for provision oftransport services. This has been achieved through a gradual process of liberaliza over the pastfew years. In the trucing industry, the private sector operations dominate except in intra-regiontraffic which is unattractive because of the condition of the roads. Intra-region freight rtes whichare generaly not adhered to by private tuckers are not a constraint to the provision of intra-regionalfreight services.

4.26 The strategy in the mad transport services is now focused on completing the libalimionprocess by atacting private sector capital to the RETCO and UDA on the basis of the

26

commendations of tie Road Transport Senices Reructuring Study, mnpleing dereguaon ofinna-egion freight rtes and improvi the efficient and safe operaion of wvhicles.

27

V. THE PROJECT

A. Project Origin, Rationale and Objectives

5.01 Project Origin. Toward the close of the last decade, a ten-year road network stabilizationprogam was developed with clearly specfe objectives rlatd to physical works tas,istituional imrvements, resoure mobilization and c ercialization. The objectives wer tbring about 80% of the trunk road network and 50% of the regional road networks in goodcondition by the year 2000; (ii) strengthen the adminisuaton and mnagement of trunk and regionroads in order to maintai the rehabilited networks in good condtion; (i) im pv resourcemobilization and allocation in order to provide for adeWuate mainnc of the road networs and(iv) enbance road maintean capacity in the countey through promotion and use of domesticconactors and improve equipment availability thruh me of private sector operatedPlant pools. The ongoing Intgmted Roads Project was prepared in FY1989/90 as the first phase ofthe program to address these objectives. Interim physical tag under IRP-I were to bnng about60% of all trunk roads and 50% of all regional roads in the elev co regions to good condition bymid 1996.

5.02 Substantial progress had been achieved in meeting the projectas physical targets, as well asits institutional, resource mobilization, and c ercialization objectives. With regard to physicaltrgets, the proportion of tunk roads in good condition had increased from about 15% in 1990 toabout 39% by mid 1993 and that of regional roads had increased fomm 10% to abot 18% duringthe sam period. On the institutional front, trunk and regional road networks have been brougtunder common management by the DRA in MWCT, REOs have been finnly established andstaffing levels have been increased, and plant and equipnent has been transerred from MWCIto aseparate plant pool which has ste to operate on a comcial basis and is being prepared forprivate sector parTicipation whin 24-36 months. On the resource mobiliation fiont, a Road Fundwas established in July 1991 to finae road mainteance and rhablitation (currendy being usedfor mainenance only) with mvenues derived firm a surcharge on fuel sales and other chargs. As aresult Government findig of road maintance has increased by more than three tumes in a termsthe level at the stat of IRP. Inifial problems with tmely collecton and distbution of road fundrevenues have been overcome and since April 1993 reveus are flowing to the users on a monthlybasis. However, a study to explore and recommend alteative ways of improving the operaion ofthe Road Fund to make it a sustinable mechanism for financing of road works is in progess 4.192 and an action plan to be agreed with IDA on the basis of the study would be implemtedprior to effectiveness of the proposed CREDIT. On the melization fiont, more than 20 localcontractors are now undertking road rehabilitation and maintna works compared to almostnone at the beginng of IRP, training of labor-based contractors started in Januauy 1993 and initialindications reveal productivity and costs favorably comparable to equipment-based works, and morethan 200 contractors have so far been registered for road works.

5.03 It was envisaged that to adhieve the ten-year targets, a second phase or the proposedInteggated Roads I Project would be subsequently designed and implementation would start duringthe mid-1990s. The design of the second phase started with initial discussions between IDAmissions and the Govemment in 1991 and were followed by a seies of studies, Project

28

mplemetation Review Meeting hosted by fte Goverment in Novmber 1992; and preparaion ofa Govment document enUtiled, Presenation f the Second Intead Roads Project - wbich wasprovided to donors in Jun 1993. This document whih provides the ratiomale for futher policyreforms, investment requirms to achieve t physical works tets by year 2000 and finaningrequiremet toge with the work of an MA-led apprasa mission (with donor picipaibon) inJune 1993 and an IDA post-appraisal mission in October 1993 form the basis of the prqect¶sdesig.

5.04 Rationale for IDA Involvement. IDA inwolvment under IRP- bas supporedimplementatin of complex policy, institutional and managerial issues; bring about signifcantinprovemet in decenlization of decision manng authority, epansion of the pnvate sectordomestic construction industry, improving procrent and administatve praccs in the roadssector, and mobiliaion and coordiation of he substantal resourc required to support theprogram. Continued IDA involemet is essential to coordiate donors' support for theimplemention of the Govermenm's inted sector development stra. IDA woud provideadvice and finacig in support of dte im eat of the fowing policy and itioreforms:

(a) seaation of opemting fimtons from MWCr and stegting MWCrs capacityfor policy formiuon, coordinaig sector ineve , general ovegsigt regultonad perlfomance monitoring;

(b) fuirther improvement oforganizational and funding arments for the mad networkmanagement and inceve systems to enable the sectr to acqui and retiappropriately qualified st,

(c) furter dvelopment of the domestic constructon imduty (including c ncy); and

(d) restructring of the road transport servicas to increase competio and operatingefficiency.

5.05 Project Objectives. we principal objective of the project is to support TanzoniasEconomic Recovery Progrmn by reducing o costs and improving acoessbility toeconomically productive ares, primarily agriculture, tourism and mining. The project!s specificobjectives are to support implemenion or

(a) upgrading, rehabilitation and maintenaice of high priority U, regional andessential distict road network (including bridges, and culverts);

(b) policy and institutional reforms to improve sector administrtio managemet andfinacing of the road network and efficient provision of road tmsport services; and

(c) inceasing essibility and ural mobility by implemeting a pilot programcomprising rehabilitaton of rural transport infiastrucctur, inrasing access toitmediate means of tansport and no-transport intevents.

B. Project Description

5.06 The project woultd const ofthe fi)oowig man cmpone and related a

(a) Policy and nsituoionsd Support

29

(i) Strengthening Road Network Management;(ii) Strengthening Technical and Managerial Capacity;(iii) Developing the Domei Construcio Industry;(iv) Impving Management of Road Tansport Co _paies(v) Improving Relato and Management of Civil Aviation(vi) Policies and Futu Projet.

(b) Road Upgrading, Rehabilitatio and Bacldog Mantoee Progrms

(i) Truk Roads, Culverts and Bfidges mnludin& (a) hbilat of about 855kn comrsing 650 kn of paved roads and 205 n of gfrave rads; (b)upgrg to paved double surfaic dressed standards of about 785 Ik of gmrvroads; (c) spot improvements on a furtier 128 kin; (d) baddog perioicmaintenanc on about 520 kn; (e) rehabilitato of about 186 bridges andrplacemet of another 33 damaged or washed away bidgs totai at At5,530 m; and (t) procuremt of culverts estiated to cost USS3.0 million.

(ii) Rura Roads, Culverts and Bridges coinprishw:(a) rehabilition of about1,800 km of selected essl distict roads and 1,200 kn of regional roads;(b) backlog periodic maintmnce of about 1,370 kn of regional roads; and (c)rehablitation of bridges totaling about 864 m and replamet of about 22,500m of culverts on priorit road sections.

(c) Vidlage Travel and Transport Pilot Progra

(i) reablitaton of nual transport infi2structure;(i) incre access to inteediate means ofaspor; and(iii) improving access to non-transport intvenions.

(d) Civil Aviation

(i) Kiimjaro Itemational Airprt Resurfacin

(a) Policy and Institutional SunDort Program

5.07 Mhm objectives of he policy and inst nal support program ae to asss th nwlycratd MWCT to stngte its capacity to: (i) better manage the comtrs prmay trnk rgionaland essea disticts road netwodCr (Strengthen Road Network Ma t); () coordaeino l development, rwgulate transport sector rations to ensure fiir conmp on, saRfty and

. r, I - 0 y suslainable deveopment, monitor the perbrmance of transport sct paras_lsthrough more stuctured staff professional development and tiing (St Tecical andMnagerial Capacity); and (iu) facitae fiuer Development of the Domestc ConsuctionIndustry. he Road Network Manageumt and the Tehmical and Mamaga Capacityan ate bodt ained at building the susctoes techni and m ial sidlls indi&re, but comple y ways. The road network man_t will assist withientfication and implem atn of modem managemet systems and practices, and will ideniytechical and management training requim and refr them to MWCTs traing section. Thesonent also includes improvent of road safty and ofhe quaty of roadwrk .and 5J) Uiderthde Techical and Magei Capacity sub , training policies, strategiesand progras wil be set (taking into account _nand tehmnical w essidentified

30

und&r the road network managmet subcomponent), workshops and seminars will be managed, andeffectiveness of trag will be monitored.

5.08 The policy and institutional component would also support MWCTs efforts to firtherimprove the mma_nment of road transport paasttals (the regional trucking cempaes and theUDA bus compauy in Dar es Salaam), and the regulation and management of civil aviationsubsector on the basis of action plans to be reconunended by consultants for the Road TransportServices and Civil Aviation Subsector Restructring Studies. The two studies are being financedunder an IDA Project Preparation Facility. The program also includes about US$1.2 million forfinancing transport sector studies to assist with policy formulation and preparation of fitureprojects.

5.09 StenMting Road Network Management During the past 2-3 years, the Govenmment hastakm several steps to strengthen management of the road network. Prior to the start of IRP-I,management of tunk, regional and essental district roads was placed under one Ministry, aDirectorate for Roads and Aerodromes was created and in each region a REO was formed byconmining previously separate offices and greater autonomy was decentrazed to the REOs. In May1993 the process of establishing a Central Roads Board (under Section 4 of the HighwayOrdinance) comprising of 12 members, of which at least 4 would represent the private sector (para.4.17) to advise the Minister on road management issues, was initiated and its formal establishmentis expected to be gazetted shortly. Formalities for establishment of the Central Roads Board areexpected to be completed by end of March 1994. At the same time, Regional Roads Boards alsopermitted under the same Act were reactivated to oversee the management of the regional roads.Wiftin the Directorate of Roads and Aerodromes (DRA), an advisory group comprsing mailyMWCT staff was establshed recently. A series of short studies will also be caried out to definethe most appropriate organizational arrangements for road network managem including thepossibilty of creatg a semi-autonomous road agency. MWCTs action plans for strngtheng itsroad management and financing are described in dtail in Part II of the Project File.

5.10 The advisory group or Managemeat Action Group (MAO) established by the DRA isspecifically cuarged with the responsibility for or tional planning and management sysmsdeveopment The establishment of MAG is based on the findamental recognition that to strengthenmanageial capacity in the subsector requires local staff to take full responsit .ty for iniating andimplemening change with mnimum technical assistance input. MWCT has initially staffd MAGwith two higly qualified, competent and committed personnel.

5.11 MAG will build on the progress already achieved in the past by: (i) identifying "bestpractices" or systems and procedures which have served the organization well in some regions; (ii)organizng and conducting workshops and semmars to faciltate dissemination of best managementpractices and systms; (iii) assistng the REOs to implement those practices and systems approvedby senior management across the entre organation; and (iv) reiewing the procedures forcollection and disbursement of Road Funds as well as recomendg revenue increases required tomeet maintenance funding needs.

5.12 MAO would receive technical support from: (i) short-term consultants on specific issues;(i) local traimng institutions and MWCTs Training Section in organizing and conductingworkshops; (iii) donor technical experts at headquarters and in the regions who have implmentdsuccessfil management/organizational arangements; and (iv) te committee of DRAs chiefengiees which will serve as the technical forum for MAG issues. Policy support would beprovided through top MWCT roads managemt and the RMI coordinaor under the chairmaship

3,

of the Prncipal Secretauy of MWCT. The DRA would approve all recommendations for inprovingoperational procedures which do not have policy implications.

5.13 The project will support MAG by providing financing for: (i) short-term consultancyservices; (ii) study tours; (iii) travel allowances and subsistence for staff to visit REOs and conductreviews of manageme systems and procedures; and (iv) workshops and semins. The short-temconsultancy services would be used to guide MWCT staff on specific o tional or managemetissues and on implementation of proposed new systems.

5.14 MAG will have succeedd to theextent tat, vtin the next four to five years, the followingoutputs will have been achieved by MWCT with minimal techical assisunce input:

(a) improved and consistt operation of the road maintenance management systmthroughout the regions and its adoption by senior managment as a standardplaning and performance monitoring tool;

(b) a revised cost accountng system for road works and maintenance focused onproviding roads management with infonmation for decision-making purposesistead of merely meeting statty requ _ients of Govemmen;

(c) good quaty and timely completion of road works and maintenance coutracts;

(d) implemion ofa pavement management system for the subsector,

(e) improved road manuals suitable to meet local condions; and

(f) a perfonmane-based incentive system and flexible personnel an policiesenabling roads subsector management to hire and disniss staff.

5.15 Road Safty and Vehicle Weight Control. In addition to the exisng road safetycmponen under IRP-LI the project would include implenation ofcoun ures, trainimg ofdriving school instuctors, vehicle inspectors, priazy and seomday school teachers, regional andmunicipality/city engineers' staff in road safety and training in accident recording and analysis andalso routine inspection of private garges and driving schools. Equipment for overweight controland monitoring is being purchasee under IP-I. Under the project, efforts will be concentrated onimplemertation of enforcement measures.

5.16 Central Miterial Laboratory. MWCT has formulated a program to improve the utilizationof matrials for road construction. Ie program comprises: (i) resarch into the use of marginalquality construction materials,; (ii) pavement monitoring and monitoring of trial sections; (iii)technical assistance for St ig the organization and management of material laboratories.The program is being supported through NORAD funding. Under the project, NORAD wouldprovide incremtl support (about US$ 1.15 million) for short-tw technical assistance and forpurchases of road mateials testing equipment for centrl matials laboratory.

5.17 Strenathening Technical and M a Capacity: Despite the progress which has beenachieved in upgrading technical and managerial skldls in the past three years (Dara. 5.7, there stilemist weaknesses which affect adrmistration of the sector and the timely and efficientimplementon of projects. The pnncipal weaknesses which have been identfied in recentconsulnts reports include: (i) slow decision making on procurement issues, in processingcontractors' claims and weak supervision of contractors and consultants (USAID report entited

32

Deentralization: Finance and Managemnt Project, Policy Implenon Review of ATAPAgricultural Transport Assistance Progrm"; etc); and (ii) lack of coordination in transportplanning. MWCVs program for strengthening capacity addresses iumnediate policy andimplementation issues and is given in Annex 5.1 During negotiations, agreement was reached withthe Govenmecat on the capacity strngthen program for fiscal year 1994/95. Agreement wasalso reached that detailed annal progms for subsequent years would be agreed by March 31 ofeach year on the basis of needs assessments to be continually carried out by MWCTs TraiingSection under tht Directte of Personnel and Administration in collaboration with MAG (pWrm.6.08(cO.

5.18 lhe procurement ma mt and contract d ion and "Challenges ofManagement" courses will be designed on the basis of the findin of MAG's reviews of roadmaagmet procedures and systems and will be delivered by ESAMI and NCC. MAO findingswill also be used to identify relevant executive management programs for roads management staff.The annual implementation workshops which have contributed significantly to building consensusand ownership of the progrmn under IRP-I wil include, among topics for discussion, the issuesidentified through MAO reviews. The workshops will also be expanded to include an annualworkshop on Transport Policy and Planning for all major players in the sector to be held prior to thepreparabon of the annual budget This should help MWCT to better coordinate policies andresource allocation among different transport modes. An Introduction to IRP course will beconducted internally by CODAP, CCU and senior roads staff. The introduction to IRP course willhelp to expand the degee of staff involvement at all levels in the program and build commitmentwhich is necessary for sustainability.

5.19 The project will support MWCrs technical and capacity sength program byfnding: (i) the courses to be delivered by local institutons in procurmeant and contacadministaion transport policy planning for regional and distict plannes and enie and"Chllenges of Managemen"; (ia) short-tenn consultancy services to assist the Training Sectionwith design or presentation of short-term courses; (iii) workshops; (iv) executive developmentcourses and study tours and other trainmg courses for engineers, technicians, foremen andadministrative staff.

5.20 New technical and managemet skills need to be developed to enable MWCT to assumeresponsibility for policy setting, regulation, intermodal coordination, performance nwitoring, andenvironmenl management as operating functions are shifted to the private sector or toautonomous/semi-autonomous authorities. A special arangement involving on the job training ofMWCT staff by one foreign, one regional and two associate consultants under the supervision of aforeign consultant firm will be put in place. About eight MWCT staff and two associates fromlocal consulting firms will be trained in the areas of transport planning, operations, infornmtiontechnology and vehicle licensing. It is proposed to extend the conact of the consultant who iscurrently assisting MWCT in ransport planning and operations so that he would provide teservices of the intanational and regional expert. The associate consultants would be selected inaccordance with the Bank's Guidelines for Selection of Consultants. During negotiations, agreementwas reached on a work program for the consultants and MWCVs staff (ga. 6.08(c)). MWCT isalso carfying out six short term studies under IRP-I to provide ons on strengtheningsector administration, particularly in the areas of planning, coordinating, performance monitoring,etc. Agreemn was also reached on target dates for completion of these studies (para. 6.08 (a)(i)).

33

5.21 levelopng «e Domestic Consuction Industy: The Govemmentfs stagy fordevelopment of the industry (including consultants) is described in detail in Part II of Project File.The stateg which has been developed with IDA assistance under IRP-I calls for, inter alia (i)increased taiing of domestic contactors; (ii) developing new sustaiuable mechanisms forfinancig aining of contraCtOrS; (jU) developing an information data bank for the constructionindustry; and (iv) stregthening the skills of the National Construction Coum4il to develop theindustry. To implement the raining conponent of the strategy, NCC has developed a program fortraining of about 100 contractors between FY1994/95 and FY1999/00. Several training approacheswill be used, such as the labor-based model used in Kilimazjaro, the development of pettycontuactors model used in Iringa, and a proposed contacting out of training to a consultat fimn.To inplement other aspects of the strtegy, IDA has provided assistance under IRP-I for studies todevelop action plans for establishment of a construction industry development fimd and for anindustry data bank. The proposed project would provide assistance for NCCs stregy fordevelopmg the domestic construction industry by financimg:

(i) contractor training services to assist NCC in tang about 36 contactors inegions with limited numbers of qualified contrctors (especially Tabora, Singida,Dodoma, Ma, Rukwa and Kigoma);

(ii) training advisory services to assist NCC in designing and ofering training toexisting and new contactors in other regions and to consultants;

(i) short-term consulting servces to help NCC in addressing specific issues incontrator/consultant development;

(iv) taining workshops and seminars for NCC staff at a total cost of US$200,000; and

(v) office equipment and vehicles for the contractor traner in the six regions,replication of the Kilimanjaro labor-based contactor development scheme in otherregions and for NCC's Head Office.

5.22 The contractor training services in priorty regions (gam. 5.21 (i)) would be provided by aconsultant to be engaged according to the Bank's guidelixs for selection of consultants. Thetraiing consultant would provide classroom and on-the-job training to pospeive contractors. Oncompletion of eir classroom traig, the contractors would be provisionally regitred andawarded contracts by MWCT on the basis of prices to be recommded by MWCrs regionalsuperMion consultants. The tnig contract would be iniially two years covenng three regions(Dodoma, Singida and Tabora) with an option for extension for a further two years to cover theremaing regions. MWCT would award small contacts to NCC's tuanee conUtctors on the basisof prices determined by indepdent consultants and NCC would assist the tunee conactors inobtaning performance bonds.

5.23 At present there are no designated authorities for registration of road contractors andconsult. The Goverment has decided to designate appropnate authorities and the necessarylegislative mendments are being preparec A fornal registation authority for rw*4 contcorswould be able to collec registration fees to be used for funding the regular h iting of theconcts' register which would become the sole basis for eligibility of local conactors toparticipate in bids.

34

5.24 gmprov Managment of Road Trn TChmnies: Te objective of this subcomponentis to assist the Govemment iu (i) detemning the acions needed to complete deregulation of itra-regional tariffs, restructure RETCOs and UDA and review regulatoty condiuons needed to ensuresafety andards; and (ii) implementng the m n ons f the study particularly thosepertaining to RETCOs and UDA An action plan, satisfactory to the Association, forimplementation of the sf4'r recommendations would be submittedto IDA by April 30, 1995(gara. 8.01 (A)(e)f.

(b) Road Upgrading, Rehabilitation and Bacldog Maintenance Programs

5.25 The objectives of this component are to improve the physical condition of the trunk,regional and esse district road networks so as to assist the economic recovery process. Thecapital expenditure programs included in this component are for, (i) Trunk Roads, Clverts adBrdges; and (ii) Rural Roads, Culverts and Bridges. The recurrent enditue programcomprising routine and normal peiodic maintenance prgrams which will be filly fimded by theGovenment is described in paras. S.33 and 5.34.

5.26 Trunk Roads, Culverts and Bridges Program. The trunk roads, culverts and bridgesprogram has been determined on the basis of the network development state descnbed in OM4-13 which gives high priority to corridors linking agricultre producing areas and regionalecononies to the main domeeic markt and to the port of Dar es Salaatn. All ivetmts arerequired to generate a rate of retu of at least 12%/e. The progran is summarized in Table .}Ibelow and provided in detail in Annex 5-2.

5.27 Feasibility studies have been completed for all the major roads sections to be included in theupgrading and rehabilittion program and detailed einyeerng has been completed f&r all roadsections to be contracted in FY1994/95. Detailed engiering is also in progress for most of theroad sections for which works would be contracted in FY1995/96.

5.28 The bridge rehabilitation requiremet were identfied in an inventory survey followed bydetailed engineering carried out by eonsultants under IRP-I. MWCT has proritized the bndges andgrouped them into the following three palkages for implemention under the proposed project (i)Package 1- replacement of 15 bridges which were washed out in Lindi and Mtwara regions duringthe 1990 floods; (ii) Package I- rehabilitation and replacement of about 128 bridges in the Coast,Dar es Salaam, Rukwa, Morogoro, kming, Mbeya, Ruvuma and Arusha regions; and (iii) PackageE- rehabilitation and replaement of about 51 bndges along Songea-Masasi rad. Details of tebridges are provided in Annex 5.2. A fourth package comprising rehabilitation and replacement ofabout 25 bridges in Mtwara and Lindi regions would be carred out if financing becomes avaiable(Ann 5.

35

Table 5.1: Sunmary of Trunk Roads Program4

Works Corridor Total km Completion Fiscal Yea_ 1995 1996 1997 1998 1999 2000

Paved Roads Rehab. Tanzam 571 77 365 129Gravel Roads Rehab. Southen 121 71 so - -

Westen 83 83 - -

total 204 71 50 83Upgading Gravel Roads to Centra 673 47 459 102 65Paved ____

Lake 80 o 80S.Coastal 12 12GtNorth 99 99total 864 - 47 471 281 65

Spot blpovements(gravel Southem 338 338roads)_ _- - - --

Western 473 240 233MidWest 473 116 91 266

. total 1284 116 669 266 233Bacog Periodic Tazam 22 7 15Mdaintenance ___

DSM 7 7Central 60 60Lake 145 78 67Ot North 284 154 130

518 246 272Grand Totals ! 3441 246 506 719 897 646 427

5.29 Rural Roads, Culverts and Bridges Program. The principal objective of this program isto imprwe he condition of the ural roads which lnk productive (prinarily agricultural) areas withthe trunk road network and the market centers. The improvement of rural roads would also providethe rural population with access to social facilities, stimulate production, and facilitate the deliveryof food supplies to food deficit areas.

5.30 The rurAl roads program is designed to complete te IRP-I work pr and to nearlyfulfill the taget of brwing about 50% of the rural road networks to good condition by the year2000 (nara. 5.35). The invesanent shortfills under IRP-I are principally because of low costestimates at appraisal. There was no experience on which to base cost esfimates as there were nosubstantial road works in progress prior to IRP-I. The overall physical program for IRP-II wasallocated among the regions based on data on land area suitable for agriculture, rural populationdensity per land area suitable for agrculture and road density per land area suitable for agriculture.These statistics derived fiom the recent IDA report, "Agriculture Sector Mmrdum," October1993 were used to formulate relationships which give high priority to those regions having moreland area suitable for agriculure, high population to utilize the land, but low road densities withinthe land area suitable for agriculture. For each of the three investment categories (distict andfeder roads, regional roads and bacldog periodic maintne) the relationshps were used to deriveweighting fictors for allocating investment among the regions. Details on the derivation of ftesefactors are provided in the Project File (Part II). The investnent allocations among the regions

4excludes suibprjects listed in Annex 5-9 for which no firm financing has yet been secured

36

were adjusted to ensure mimummn regional allocation of 50 kn for district and feders roads and 40mn for regional road rehabflitation.

5.31 W-ithn their physical investent allocations fte regions detemined the specific prioriyroads for rehabiitation and baddog periodic maintce based on unifonn socio-economic andte al crtena which woe developed by MWCT and reviewd by IMA and the donors durig theImplementat Review for IRP-I in November 1992. The parmtes an which the cria(Economic Index) are based are taffic volunes, road condition and inpovement costs. Wile theEl provides aood V gde for the selctiao of rural roads consideration has also been gn to otherknown factr such as: (i) lnkges to agricultre production areas, processin plants, hydrpoepln sits and socal cedns; and (ii) connectivity and coniwnity of regional road netwodrs relativel good condition as well as better intgaon with the tunk road netwok A deailed ruwrads prga including bridges and culva is Provided inm he 3I.

5.32 Bridge rehbiaton requuments have been detarmned by the REOs to ensure Xth (i)stuctur n roads with high Els and in need of ehabilitaion wi receive intvest and (i) brdgeon roads in rlatively pasable conditions, especialy dilapidated bridges, are incled in theprogram. A lare proportion of the bridges will be rehabilitatd in agriculturally rich regions whichbave hiWher rainall and are tere more prone to flooding and bridge washouts. DuringnegotatIons, agreement was reached on thefirst tranche covering about two years (AM 5Agreement was also reached that the program for the remaining years will be reviewed andareed with the Government annually, as part of the three year roling plan and forwardbudgeat cycle with emphsis on initiating engineering services at least 12 mons beore thestart ofthe year in which the works would be contracted (pra. 6.O7fb)).

5.33 Routine and Normal Periodic Maintesnace Program Total mntenan requirements(ex g baddog periodic maitnane, which is incuded under the Road UpgadinRehabiitaio and Badldog Periodic Maienac Program) comprises: (i) nonnal or currentperodic maintan wos; and (i) routine m_ain . Bacldog _ cworks w have beenidentified and included in the capital expndur budget as the works are more of a capital tharecure nature. MWCT bas calcuated the normal periodic and routine maintenance findingrequire_me for the yeas FY1994/95 through FY1999/00 taldng into acount the existi networkand the planned upgradinhalitat and backlog priodic maintenan wodss. MWCsma_owe stratea accords the highest priority to fimding routine and normal periodicmaintenance on road sections in good and fair condition before spot improvements to rd sectoin poor condition. The proected normal periodic and routine mnteac requnane_ are shown inte graph below.

37

IRP MAINTENANCE COST ESTIMATES

mm WM7 WM mmi ulaa am a,"~~*No,ll.lod

IRMOL MAX 1_ull ltill UMI 2UIV nAa

m pmo m a gum nbe n

e_aabet IRP1 aswl. emaneaneprga shos avrg e.o atnnecst

-- a t 1396 S197 for rural ra ds.

=~~~~~~~~~~3.5 54.73 34311 34.102 363 43

5.34 R i apparent *wonm te road rontine maintenance Is epected to iring ral temwle normal periodic mitanewill remain a irly consan up to about 1998 beforeinreasnbecahe of the largebadog periodc mainten and iabilitaoion wok being underta in thbispe Ths is th case since allm rod sections god and fi cndiion wo be sect torouxnel and a substa l part of the network will be unde rhitioor backlogpeoi _ e. The grapph also illusrts that manteac levels would be broadlycomparable to IRP-I estimates. The n _j prog shows average per Mmn maintenance costsof about US$1,490 for tm9nk roads and US$1,070 ifr rural roads.

5.3 Road Condions. The road codons taes or the IRP progam are to bi about 80%of he t onmk and 50%t of te regil road networs in good cod n by year 2000 with establishedinterim targets fr the first and se cd ph Th adconditao targets wir the proposed projectare to to e proporwIhe of trunk and reioal roads ind a agconto to 65% and 48%respectively. Avthird phse of the program which is expecste to com coas comnl ci inFYr99899 would enab letel prog s objectives to be fily realized mhe annual road cdititargets for FY1994/95 trough FY1999/00 are dshow f on ky ped fnce indicators.

5.36 Fundint of Road Maince. IlA and some Donors bave agreed to provide fimding forbacklog peidc mantnace. The Govenmn would fuily fun ora periodic and rotn

mantnac. This would be consstn with the agremn reace with IDA, under IR-Je inac e to wi the Govn is obligated to fiy fid all maintenane by FY1995/96.Esiae revenus from te Road Fund, sumsgte present roadt oil as the only source ofreene (at its curet level) woud cove about 6S% of the reqied mainnac fianin duringFY199S196 and FY1999/00. Three possible stratges for closing the funding gap are; (i)

elmiatngthe unaccune for reene losses which have been idenified by a USAID-fiundedstudy thus raising coveae of maitna_ costs to about 72%/ betwee FY199S/96 andFY1999/00; (ii) raising the road toll from about US$0.067 per liter to US$0.082 in PY1994/95 andto USS0.087 per liter in subsequent years witout eliminatng the unaccounted for rve; azid (ii)limining the u for losse and inrasug the road toi to about USS0.073 in FY1'49439

and US$0.078 per liter in later years. A fioh sOra would be to widen the scope of Roa4 Fundrevenues to include other elements of a road taiiff (i.e., vebicle licensing fees and int tionl

38

transit fees), thus enabling the Road Fund to cover maintena costs as well as a portion of theehabilitation costs. A deailed analysis of ficing options is availble in the Project Files (PartU). The EEC-financed Road User Charges Std would provide the basis for IDA and theGovernment to agree on an action plan for, amongst other things, widening the scope of menuesfor the Fund (,Mra. 8.01 (B) (c).

(c) Village Travel and Transport Pilot Program

5.37 Ibis is a pilot program that is designed to leam-by-doing to provide a basis for a ruraltasport strate which can be replicated across the entre conuy. The mai objecthes of thecomponent are to icrea accessibility and rural mobility by: (i) supporting susinable selfhelpschemes desiged to improve locl transport infstructr; (a) stregening the capacity of districtegie (DEs) to plan and better manage their district road netwrs (iu) promoting imtmediatemen of transport and providig advice on how best to use them; and (iv) supporting provision ofnon-tansport invions which help to reduce tme and effort spent by households on transportactivities. The proposed activities constitute a basket of potential program outputs or a "menu ofchoicee for the vllages. Only a few pnority acivites would be caried out in each communitybased on the choices of the communities.

5.38 Rural Transport Infastructure compises communiy roads, footpalls, tracks and trails.The project would finance (i) traing of the District Egmeers (DE), and distict planers, roadinspectors and foremen i road plauning and labor-based work methods; (ii) consultnts support forpreparatin or road network pls; (iv) materials which are not available locally; and (v) roadworks supervi support sevices for participating villages. Trang would enable the DEs tocay out inventories of the roads in their distict and foremen to effectively supenvse the self-helpwork on roads and tuw. Consulnts would help the districts to prepar road network plans whichwould provide a basis for them to deennine the best use of their linited maitenance capacity andfuinding frm the Local Govemmet Road Fund (LGRF). The criteria for allocations amongdiscts and wiin the disticts from the LORF will be addressed in an RMI fiunded study to becompleted in early 1994. The taing program for District Planners and DEs in FY1994/95 wouldthen include these criteria. During negotiations agreement was reached that allocations from theLGRF would be based on needs and capacity criteria to be agreed with IDA by July 1, 1995 (onhe basis of the study's recommendations) (Dpara. 8.01 (A)( J (iJ).

5.39 Promotion of IlMTs. The project wil promote use of Intenwdiate Means of Transport(fMTs) by financing: (i) taining of villagers in the production and mainutenance of IMTs; (ii) thecosts of inproving the design of IMTs sdected by the disticts; and (iii) a study on the demand forcrdit in the project area to assess the demand reated to lMTs and non-tnsport interendtions(scope of services descrbed in Part I of the Project Fle). If the dmand for credit foracqution of IMTs and Non-Transport Inrvons MI) is demonstrated, the study will alsorecommend appropriate credit delivery mechanisms including possibilities for inroducigIIDA/donor supported revolving funds to provide credt.

5.40 Non-Transport Interventions. Non-transport related inteentions such as rehabilton,and, in some instas, proson of water wells and milling machines, can reduce

distae to these facilites and tefore lessen the time and effrt spent in accessing thm eproject would provide ainig in manta and rebabilition of NTl.

5.41 Imp n Arngements As a pilot program, akenive instituional models forprogam _ r and impl ion will be trWied out in diffrent disticts to yield erince

39

on best pracuce for design of rual travel and tansport projects. The options are likely to includeimpl_menttion by: (i) an NGO in collaboration with District Counl (DC); (ii) contracting outmanagement to the private sector by a DC; and (iii) incorration of progrmn acivities withinexisting donor programs. A National Program Coorditor (NC) will coordinate training andmonitrng of he progran in all pilot districts and prepare guidelies for implemention of thenational rural transport policy. The NC will have overall responsibility for ainistraion,planning, desig and exacution in the IDA fiunded district though the Local Program Manager(LPM), and will haise closely with otier dono supported disticts. The NC wil be b atMWCT headqrs in Dar es Salaan. The MWCT wil appoint a cuntepart to the NC. Theresponsibilities of the NC are described in fiurther detail in Par II of the Project Fle. Aconsultant will be hired under IRP-I to work out the details of the institutional set-up in the pilotdisticts (scope of sevices are is given i Par II of the Project Flde). In order to providecompatible data for perfoana eval donors supporting the pilot project wil be requested tochoose fom the recommended insutional frameworks.

5.42. At the district level the LPM will be responsible for iniating contacts with the concemedcomunities and assisting them with selection and implemeon of activities. The project willprovide taining for LPMs and cmmuy developmt staff in participatory methodology wherebythey leam to asi conummities to set their own piorites and orge themselves to effictivelycarry out their projects in a sustnable manner. Scope of services for the training in parficipatorymethodology to be provided by consultants is detailed in Part II of the Project File.

5.43 Monitoring and Evaluation As a piot program, the VTTP wil only yield lessms if itsimpacts are systematically measured and evaluated. Ih NC will be the responsible for establishiga fiamneworlc for measurig and evaluating progrm inputs and outputs and will be assisted by alocal cons,ltant to be funded under the project The consultnt will also be required to desigaccounti' X and internal control systems for the implementg agencies as well as to monitor andevalte perfornce. Furtier details on the fimework for mnoring will be worked out by theNC together with the local consultnt as indidual project work programs emerge in the districts.

(d) Civil Aviadon

5.44 About US$5.0 million would be provided under the IDA credit fbr rsurfcing of theunway at Kilimajaro hnstrato Aipor The rurfcin was *w in a consultantstudy in 1990. An update of the study is being financed by IDA under IRP and a draft report wassubmitted to IDA during negotiatos.

C. Project Costs and Finacing

5.45 The total cost of the project is _ematd at US$650.3 million equivalent, comprisingUS$629.3 million for road upgradi& rhabiliation and backdog periodic maitance works,US$2.9 million for implemi of a viae travel and transport pilot program, US$5.1 millionfor resurcing of Kilimanjaro Interational Aiport, and US$13.0 million for supporting policy andinstitonal reforms in the roads subsector including strengthening ovall transport sectoradmnistrtion. Of the total cost about US$490.4 nilion or 75 % would be in foreign costs and thebalnce in local cost. Tct esfimates include about US$59.6 million in physical contingenciesor about II % of the total base costs, US$53.6 million in price congencies or about 9% of thetotal base cost plus physical contnges. En1ering design and onstucto supervision costsare included in fte civil works cost estaes at about 10% of base costs. The price cnigncies

40

have been calculated on the basis of es_imaed intemational inflaon of 2.8 percent from FY1994/95onwards for both local and foreign inflation expressed in tenns of US$ Dollars. A sunuy of thecost esfimates is provided in Table 5.2 below and the detailed estimates are contained in Alu 54.

Table .2 Estimated Project Costs

(IS$ million equivalent)TANZAIINEOARTUD ROADS 11 PROlECr % %T.lC _PCS mtIa*dCSWAWAu mUSsM rp s

Letal To3u 8.. Loa Eodn16, zb Co,

SUIUtm,iva1lduANotwmkManaganant 164.0 1.379,2 13743.2 03 3.2 3S 91 ICWAfustirn aRbyD0Vdcnt 253.8 1.201.0 3.458 0.5 2 3.0 a1 _7-z4glnhTAdwaMaa iUCq-Iy 941.3 798.7 117.9 2.0 14 3.6 45 1bwaam"N,a,t0fRoadTzasPmto. 20.0 180.2 200.3 0.0 0.4 0.4 90bmpZovIn.g ManapmmtotChtI Aviation 22.U 202.8 2253. 0. 0.4 0.5 90&dod Pfct mAkodFtwekog ata . IN .9 90

Sw_nil_b-S 1.47[.7 4s412.4 1 ~~3.0 9.0 120 7 2

L Rad Upna R.1b__ & MuTrzkRndbidRiubi un UpoRah 42.75C4 157729.3 200.4$S 8?.0 323.0 4080 79 76R.3RoudR¢aMibanidoP&URmdin 12.1723 19f92.9 31,96.2 24.8 40.3 611 62 1343mlulaceMg PuicEmu m.a38 14.98.3 22.1t66 14.3 305 45.0 68 S

S_IRRU Wgdbag, ReM BAMa . 62,06f.2 192I=10. 254,5.3 126.3 391.8 S311 76 96

C.VUibail, sdTna lat W _PIPPnc t MAmt W2.6 297.9 350.4 0.3 06 0.7 as

asrnnhipeAWAftwiga.tia 22t4.3 31.8 242.1 0.5 0.0 03 7ReadlaFf sln*uIg 317.7 198.2 316.0 0.6 0.4 1.0 38PaaiitWAtiqUseot3ntnueiateMmauotltmmt 4S1 33B 82S 0.1 0. 0.2 41No.TWnhlnhtbavwis _ 9.6 89.6 O.2 _ 0.2

8*WWV3hepTnVu Td Pla*aMhFt.p 732.9 347 1,280.6 1.5 1.3 26 43

3ChtAvhtrAipatPgRw&dia C30.4 13615. 2.165.9 0.6 3.8 4.4_ 6 1daChAvitls . _ _ _ 4

T*W DAZELU4U COMT 64.372.2 199,33. 263.9011 133.4 4037 537.1 75 300PlIcIlCImtiog a 7.6111 21.643B 29,3319 136 44.0 59.6 74 11

WCadvg t4.451.7 7130=2 30 9.S 12.9 40.7 336 76 101..3PRJETCOSTS 96,712.0 297.5099 394-229159.9490.4 6503 75 32i

5.46 Project Fimancing. A tentative financing plan for the project is provided in Table 5.3below. The plan is based on expressions of interest received from donors during and after aConference held in Arusha on October 4 and 5, 1993. An IDA credit of US$170.2 million wouldfinance about 28 % of the total project costs excluding taxes and duties. The Goverment wouldcontribute about US$31 million or about 5% of total project coss net of taxes. In addition, theGovenment would finance, from the Road Fund, noral peniodic and routine maintan cosSamounting to about US$36.0 million per annum during the life of the project. Oveal, theGovenmeat's contribution would be about 33% of the total program costs if mintenance finding isincluded with investment costs. The appraised progam also includes subprojects Listed in Annex S-6jand toaling about US$57 million (base costs) for which financing has not yet been secured.

5.47 Priority for use of IDA funds is given to components aimed at strengtening road networkmanagement, enhancing technical and managerial capacity, and rehabilitatingupgrading ruralroads, clearing bacldog periodic maienance and cariying out spot improvemenu on trunk roadslinking fbod surplus with deficit regions. Annex 5.5 shows the project components by financiers.

4)

Table 5.3 Financing Plan

Financier Local Foreign Total

US$ million(Equivalent)

IDA 30.0 140.2 170.2EEC 33.2 144.9. 178.1AfDB - 108.9 108.9NORAD 11.0 30.7 41.7OPEC 5.1 33.1 38.3JAPAN 7.5 12.3 19.8KUWAIT 2.0 12.9 14.9SDC 1.1 4.0 5.1FINNIDA 2.1 3.3 5.4Govenment 67.9 - 67.9

TOTAL 159.9 490.4 650.3

Project Impact on Poverty

5.48 Tbe project would support the Govenmens poverty alleviation objectives in seral waYs.F.irst tbrough is focus on supportig the economys producive sector pimaily agricultu, theproject would benefit the poor rural population by providing them with access to markets for theirproducts at reduced transport costs. Second, the domesti construction development progamwould provide support to small conactors to imrove their wodrs management skllhs and enhancetheir opportunities to parficipate in road maitance activities. Small labor-based conactoswould also be provided with tring and techical advice. Third, the village travel and transportcomponent would help improve ural roads infrastucture at the lowest levels of the network,support acquisition of intneedate means of transport by vilagers and through non-transportmitenrtions help reduce transport burdens especially for the women residents of the rural areas.

Environmental Issues

5.49. Since no new roads would be constuted, no major environmntal ssues are expected toarise. Neverhdless, special care needs to be taken to ensure that constriction traffic does notdisrupt game parks, site camps have adeWate arangement for disposing ef waste, borrow pits andquarries are not left uncovered, and emissions from equipment are controiled. Also, health hazardsarsing from the close contact between local inhabitants and large concentration of constructionworkers need to be minimized. MWCT is implementig the following measures agreed under IRP-I: (i) specific aspects affecting the, nviromnent are included in the tms of reference for studies formajor investments and conditions of contract for procurement of works and goods; (ii) in particularall tenms of reference include specific refeces to any aspects of the studies, instllations,equipment or works which may have adverse envionmental impact; (iii) attention is given toincluding appropriate measures for off-road traffic, roadworks deposits, camps and workshopsespecially in national parks and wedands; (iv) conactors are required to provide appropriateimmunization and health srvices to workers and famiies; (v) borrow pits and drainage works are

required to be free draing and erosion controls to be properly designed; (vi) plant equipment andvehicles equipped are requird to be maintained with adequate noise and pollution controls; (vii)road taffic and diversion and safety measures are properly installed and maintined; and (viii)camps and workshops are required to have saniary faciL;ties and to incorporate measures fordealing wih contamiated run-off and waste. Ihe Ngorongoro Access Roads feasibility and study

42

being financed under an IDA PPF requires careful study of the impact of increased traffic to wildlifeand the traditional ihabitants of fte areas and preparation of a mitigation plan.

5.50 Under fte project, MWCT would continue to carry out road works in accordance withsound envimental practices as agreed under IRP-I. In additon, it was agreed duringnegotiations that MWCT would: (1) review the effectiveness of its current policies and theirimplementation; and ([i) prepare a manual on sound environmental design and managementstrategies for design and implementation of inland surface transport projects (paraA.01 (A) (h)).Tlese services will be carried by short-term consultants. The draft tems of reference for theservices are given in the Project File (Part II).

Role of Women

5.51 The project would help to improve the social and economic status of women in severalways. Firt, buildg upon the experience of some donors in rwal roads mntenance supportprogms (e.g. NORAI) in Tanga and Mbeya regions), more opportunities would be provided towomen to participate in labor-based works. Second, the village travel and transport componentwould help to reduce the burden of head loading, particularly for water portage, firewood collectionand transportation of grains to grinding mills-burdens which are mostly borne by women. Third,MWCT has already started providing more training opportnities for women under the ongoingIRP-I through its Women Participation Unit (WPU) under the DRA. Thus the proposed projectwould increase opportunites for upgradig women's skldls and improving their participation in thewoads sector.

43

VL PROJECT DMILEMENTATION

A. Institutional Respons&bilities

6.01 The Govemmeut of Tanzania would have overall responsibility for implan of theproject through the MWCT and the parast and other bodies attached to them. These are thesame institutions that are implemting the ongoing IRP-I

6.02 Responsibility for implementation of the Pol;cy and Insfitutional Support componentwould be exercised dtough the followig organzations and departments:

(a) MWCTs Directore for Roads and Aerodromes for the Roads NetworksManagment subomponent with the excepfion of the taiing of vehicle inspectorsand dniving instuctors which wil be maaed by NIT under the guidance of theRoad Safety Unit;

(b) MWC?s Directorate for Administration and Personnel for theTechnical and aaerial Capacity subcmpouent with the exception of thecasultncy sevices for tansport opwittions and planng which will be managedby the Planing Directorate;

(c) NTC for the subeo t to improve managemet of road trasport companies(RETCOs and UDA); and

(d) DCA for improvement of the management and regulation of the civil aviationsubsector, and

(e) NCC for development of the construction industry.

6.03 Implementaton responsibit for the Road Upgrading, Rehabilittion and MaintenancePrograms (mra. 5.25 - 5.32) would be exercised by MWCrs Directorate for Roads andAerodromes and the REOs. Ihe DRA would also be responsble for the execution of airportresurfcing works at Kilinmjaro airpor The VTP would be coordinated by a NatonalCoordnator in the office of the National Coordinator for the Road Mainxtenance Iniitive and theRural Travel and Trnsport Project.

6.04 The project would be implemented in acrdance with (i) o onal and managmtaranmn (ara. 6.02 and 6.05k (ii) mlemenation program (paWas 6.07 & 6.08 and Annex&f; (iii) prcunt procedures (paras. 6.0 6.12; (iv) accounting auditing and disbursementproc.:dures (paras. 6.13 - 6.19); and (v) monitoring and reporting systems (@a.62&)which wereagre duing negotiatons. However, the recent merger of MOW and MWCT as well as theimplementalon of policies to separat managemnt of operations from policy formulation andplanning (pa( . 3.22) will result in o cbanges which may alter the existinproposedproject implementtion arrangements. Agreement was reached that, changes in intentalorganizational arrangements of MWCT which would materially affect project implementation willbeagreedwithIDAbeforetheyareimplemented (vpra. 8.01 (f) .

44

B. Projedt Coordination

6.05 Under IRP-l, CODAP has geneally perfomed sasfactonrily in coordinating projetnpiementation both intemally among executing agencies and exnaUay with donors. Overall

project accountig, auditng and disbursemen and performance reporting are handed by this office.With the expansion of the IRP program into phase II efforts ae required to unprove intemalcoordinaton particularly to: (i) ensue that implementing agencies are provided up-to-datemplementatioguidelines; (ii) stegte CODAP's review fiuction of proposals submitted byimplementing agenci and offer approprate advice. Log-term technical assistac has beenprovided to CODAP both under the Sixth BHghway and Integrated Roads Projects and will not becontinued under this project. However, short-term technical assistance would be fimded under thecapaci s h program as required and agreed with IMA. CODAP staff are being tainedto take over full responsibility fbr its activities stating in FY1994195. During implentation ofIRP-I donor coordination has also been failCitated throu the UNDP Principal Transport Engiewho is fte Govemnmens adviser on transport maters, in geral and specifically n implementatioof IRP. The UNDP has exended his sevices for a furtier two years up to the end of 1995 (UNDPProject URT/92/001). The Adviser will condnue to assist CODAP staff to manage donorcoordination.

C. a Program

6.06 During negotiations agreement was reached that the Govemment would implement theproject In accordance with the implementation programs described below:

6.07 Upgrading, Rehabiltaion and Maiteace Programs. Implementation of thisconmp would be based on:

(a) schedules for tunk roads and bridges presented in A= 61 together withschedules for reuitment of related engneeing and supervision consulns and onproject monioring indicators in Aniex 6.5 and

(b) the regional roads (including selected essential district and feede roads)rehabilitation and periodic mainte programs for FY1994195 and FY1995/96(nar 5.30 and Annex 5.3) and progrms for subsequent years to be agreed withIDA by March 31 in the year preceding the year in which the relevant works wouldbe contacted.

6.08 Policy and Ist onal Support Progrus. The programs comprise the following:

(a) action plans agreed during negti for (i) stengthnn ovall transport sectordminisration which would include taret dates stctory to IDA for completico

of several studies on coordination of transport sector planning and adminisain(para 5.20): (ii) improving orgaiaton, mnagmnt and fiuding arrangements forthe road networks (as. 5.09 and 5.36);

() the following workshops and conferene on project imple on to be conductedby te Govenmnt: (i) amnual workshops; (ii) worksh on special issues asreomnded by the proposed n_ma t advisoy group on terms and conditionsto be agreed with te Association; (iii) workshops an sector policies and plans priorto each budget session; and (iii) a project implemention (mid-term) review byNovember 30, 1997 (a. S.18);

45

(c) (i) MWCTs capacity strengthening progran for FY1994/95 as detailed in Annex S-I and programs for later years to be agreed with IDA on an annual basis; and (ii)detailed work progrm for taining of MWCT staff by consultants in transportplanning operations, informaion ehnology and vehicle licensing (pa. 5.iZQsubmited to IDA dun nesatons:

(d) action plan for restructunng the Avdl aviation subsector to be agreed by April30,1995; and

(e) an action plan for restructng the RETCOs and UDA to be agreed with IDA byApril 30, 1995, based on the rdns of the Road Transport ServicesRestructuring Study (m. 5.24).

6.09 Detailed engineering has been completed for all tunk roads sections for which works willbe contracted in FY1994/95 and is in progress for most of the road sections for works to beconacted in FY1995/96. Where the permace of consultants for detailed engineering issatisfactory, their services may be extended to cover supervision of works. All trunk road worswill be supervised by consutants. IDA-Financed regional roads works would be supersed byconsants who will be responsible for supervsion of all rural road sections in their regions and fortaining REO's staff.

6.10 To facilitate internal coordination within and among the implementing agencies, CODAPcoordinated prepamtion of a draft project implemenation manual which was reviewe with theGovement duing negotiaons and will be updated by CREDIT effectiveness and as requiredtherafter. The implementation mamal wil also be used as the basic course material for thentoduction to IRP courses for MWCT staff and wil assist in helping more staff to undetand the

progm. The manual will contain the following: (i) a brief description of project components; (ii)description of project imp ion responsibilities; (iii) implementation schedules by componetincludn details of procrment and execution (completion) tagets;(iv) procurent proceduesincluding charts of document flows; (v) details of project monioring and supervis1on systemshowing samples formats for periodic reports to be produced by the executing agencies at staftdtme intervals; and (vi) disbursemet procedures.

D. Procurement

6.11 Procrement arrangements are summarized below.

46

Summary of Procuremeat Arrangements(USS Miwion)

ICB LCB Oter N8F TotlA. Civit Wodks 125.6 36.0 6.01 427.2 594.8

_(108.7) (30.0) (5.0) (143.7)B. Gools 7.0 0.72 1.8 9.5

|(S.91 (.?) (6.6)C. Consulting &Sevices & Technical Assistance

(i) Cons utants Servioes 40.5 40.5________________ _ _ ___ _ (14.4)3 (14.4)

(ii) Taini 2.5 2.5_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ __ (2.5) (2.5)

(iii) Fellowships 1.6 1.6___________________ -- (1.6) (1.6)

(iv) Stuies IA 1A(1.4 (1.4)

Total 132.6 36.0 52.7 429.0 650.3_____________________________________________ (114.6) (30.0) (25-6) ( (170.2)

Note: Figures in parenthesis are the respective amounts finaced by IMA

I Emrgcycvlwocoactsand trilontttobeawaeunder_thdomesti_comusoiusyd petprge2 Eqpwntitobepouedtrug diopngpooim3 IncltUds 1351. mllion for reaYment of ProectPMaWarain Faclty dvanoe

6.12 Procrment for all civil works contact above US$3.0 million would be carried out underICB procedures. For civil works conacts of up to US$3.0 million, LCB procedures woultd beemployed and bidding would be open to all local firms regisered with the appropriate designatedauthority (pa. 5L23) and to any interestd freign firms. Under the ongoing project all civil worksconracts up to US$3.0 millon are being awarded under LCB procedres. The level of competitionfor LCB works has been satisfatory, and donors, particularly USAIID are supportng developmentof a compeitive domestic constuction industry through financing LCB civil works contrcts.SmaU emergey works contrcts and contracts to be awarded under NCCs domesdc constructiondevelopment program of up to US$250,000 may be awarded on the basis of cost esdmatesestablished by inde dent consultants. Conacts for the supply of goods estmatd to cost lessthan US$200,000 nmy be procuted though shopping. Procrement of equipment costing more thanUS$200,000 would be camed out under ICB procedus. Vehicles and equipment for NCCsdomestic constuction, industy development and cmputers will be procured throughthe UN1s hiter Agency Prcment Services Organization or through intemational shoppingprocedures.

6.13 Agrments have been obtainedat (i) consultants for Engineering design and Supervisionstudies and rainig would be selected following the BanWIDA guidelines for selection ofconsultants; (ii) provision of the conuant guidelines requiring prior approval of short list,selection procedures, letters of invitation for proposals, evaluation reports, and contracts wouldapply to conacts estimated to cost less $100,000 equivalent each. IDA would agree to the

tension of consultancy services in specific cases where the need Sbr conuity and all otherrelevant aspects are deonstrable to its saIsfion This would be applicable to consulundertag detailed design whose services may be etded to cover supervision of work and inother cases where the csul' services have been cleady beneficial to the client and aresatisfactory to IDA.

47

6.14 The development of the domestic consulting industry would be encouraged in accordancewith paragraphs 1.11 through 1.14 of the "Guidelines for Use of Consultants by World BankBorrowers and by the World Bank as Executing Agency".

6.15 All procurement packages above US$1.0 million for civil works and U$500,000 for otherswould be subject to prior review by IDA. All contracts for consulting firms above US$ 100,000 willbe subject to prior review by IDA. Local contractors would be eligible for a 7.5% preferencemargin under ICB contracts. The procurement packages financed by various cofinanciers will beprepared according to the respective donor pratices or guidelines.

6.16 AtDB has provided the Contracts Control Unit of MWCT with the services of a ContractManagment Specialist and a Procurement Specialist and the orgnzational set-up has beenstregthened. An agreed skill transfer program is in place and Tanzanian Engineers are nowworking with expatiates and the emphasis is on leaming through working. A plan for preparation,finaizaion and use of standard doc on has been agreed with IDA under IRP-I and is beingimplmented. The standard documents agreed under IRP-I have been modified to suit the changedrequirmnts and were submited to the Bank's for its review and clearance during negotitons.Also agreement was reached duing negotation for the following actions to be implemented underthe project:

(a) time standards for procurement activities. The target time firne from the date ofbid opening to the signature of contract would be 120 days for works, 45-60 daysfor goods and 90 days for consultants services;

(b) stndard evaluation fonnats would be used by MCWT and Consultants;

(c) CCU would prepare and issue checldists to the implementing agencies and theirconsultants, and the originator of the documents would have to ensure that thedocuments comply with the procurment procedures and guidelines;

(d) CCU would develop guidelines and procedures for Contract Mnagementespecially processing of claims and documentation for payment and MCWT wouldImplement the guidelines by October 31,1994;

(e) All procurement documention submitted to IDA would be accompanied by theappropriate tracking sheet and all evaluation and contracts wculd be providedunder the duly filled-in IDA procurement monitoring forms;

(D) CCU would be the quality control area for procurement management, allprocuremt docunon prior to clearance from funding agencies would bereviewed by CCU and implementing agencies would be provided with feedback forimprovement and

(g) CCU would be the coordinting body for organizing and implementing trainingprograms in the areas of prcurement

48

6.17 Disbursements are expected to be over 12 semesters in line with the curren esdimates forthe IRP-I profile Thus the credit is expected to be filly disbursed by December 31, 2000.

6.18 Under IRP-1 monthly disbursemets have increased froin US$0.95 million in FYI990/91 toUS$2.2 million FY1992/93 and a current level of US$2.5 million. The montly disbursements willpeak in FY1994/95 to reach US$5.5 million and then decline to US$0.2 million in FY1996/97,when rma g small amounts will be disbursed. The graph below shows the histoncal andprojected average monthly disbursements for IRP-I and the monthy estmates for IRP-II and thecombined estimats for the two projects during the overlap peiod (FY1994/95 - FY1996/97). Thecombined dibsements for the two projects will peak at about US$7.0 million per month inFY1994/95.

Actual and Projected Monthly Disbursements

Uss .. ._ _ _ _ _ _- _- _-:

/_

9 /

S~~~~~~~~~~~~~~~~~~~~~Tl/

FY91 JFY92 Fs3 FY94 FY95 FY96 FY97 FY98 FY99 FV5o FY01

6.19 The monthly disburement of US$5.5 million for IRP-I in FY1994/95 is based on contactscommitted and is therefore considered a reasonable forecast CODAP's capacity to processdisbursements has been icreasing since the ineption of IRP-1 and on that basis, disbursements forboth prtects, even at their peak in FY1994/95 should be wiuin MWCT capacity to manage.

6.20 The cumlative disbursement profies for the two credits are shown in the gph below. Theslower tak-off-in IRP-I disbursements an the projections for IRP-I are due to he early ocusunder IRP-I on: (i) implementing the orgational changes (creato of a new Diredorate ofRoads and Aerodromes, REOs) and draliion of authority; (ii) establishing and strnteingnew procreumt and conact am n procedures. Although further efforts are requird,IRP-I has succeeded in building substantial capacity in the management of prorementc , onactadministions and disburs. hrer, on this basis the projected disbusemens fo IRP-IIare consdered reasonable.

49

Sewond WwSU*d Roads PojecAolzaa and Projcted cwnuaiimr Dingma

USSMilliM

350

300- .-.. -- ....

250

ISO~~~~~~~~~~~~~~~~~~~~~- S-

100 A

so

0FMl FY9 FM9 FYM FY9 FY9 FY9 FM9 FM9 FM0 FMl

6.21 Mme credit will be disbursed against the following categories and on the basis of theestimated disbursemient schedule given in AM63

Disbursement Account IDA Amouat % of ExpenditureUSS million to be Financed

Civi Works 130.1 100%1/ of foreign costs50% of local costs

Equipment & Vehicles 6.2 100% of foreign Cosft

Consultants Services 13.2 100%/

Traiin& and Studis 4.4 100%/PPF Advance 1.5 Amounts due

Unallocated ~~~~~~14,8

Total 170.2

6.22 Disbursements for procurement of goods and works costiog less tha US$100,000equivalent wdi be made agains stateents of expenditures (SOE). Otherdibrent will bemade against standard . A revolving fund will be established in a special accountopened in foreign currency in a Bank acceptable to ]DA.. An advance of US$12.0 million frocm IDAfunds will be made into the Special Account after creditefectivenes to cover four months ofproject expenditure eligible for I1DA financing. The Special Account wdi be replenished followingapplication for ribsentby MWCT, togehe with appropriate, supportingdcmnainThe amount of IDA replenishmen will not exeed the authornzed allocation.

-$ includes w_tos and semina

So

F. Accounting and Auditing

6.23 MWCT and all unpiementin agencies (NCC, NTC, NI), would maintain adequate projectaccounts in accordance with internationally recognized standards and practices. Annual auditswould be carried out by auditors acceptable to IDA on the project accounts, including specialaccount and SOEs. Each audit report together with a management letter for the agencies receivingassistance under the project would be sent to IDA within six months of the end of the fiscal year.The management letter should cover the auditors' observations and recommendations forimprovement of accounting and internal control systems, and financial practices. Under the ongoingproject, MWCT is in compliance with auditing covenants. Adequate records and accounts wouldalso be maintainedfor the Road Fund acconts for trunk and regional roads andfor urban anddistrict roads and would be subjected to an annual technical and financial audit in accordancewith terms of reference acceptable to IDA (para. &01 (A)(g)ii)). Since the Road Fund wasestablished after IDA approval of the Credit for IRP-I, there is no current auditing and reportingrequiremnut conceming the Fund under the Credit. However, under the Audit and ExchequerAct,the Auditor general is required to anually confim that the proceeds from te fiud have beenused in accordance with the purpos for which the find was created. Agreement has beenreached with the Government that it would complete the audits for the Road Fund accounts fortrnk and regional roads and urban and district roads for the period FY1992193 prfor to Crediteffectiveness (para. 8.01 (B)(d)).

G. Monitoring and Supervision

6.24 IDA would supervise and monitor implementation of the project in accordance with theimplementation programs described in ras. 6.066.09 the detailed programs to be incorporatedin the implementaion manual being prepared by MWCT, and the monitoring indicators i Annex 6-5. In addition, IDA supervision would also rely on concise monthly and quarterly progress reportssimiar to those being prepared by CODAP for WtP-I and submitted to all donors and IDA covering:(i) revised cost estmates for individual conacts and the total project, including best esimates ofphysical and price contingencies; (ii) revised timing of procurement actions including advertisig,bidding, contract award, and completion time for individual contacts; (ni) status of progress forphysical works as well as policy and institutional support components; and (iv) a project completionreport within six months of the credites closing date. In addition, the Government would hold annualreviews with IDA, by March 31 of each year of: (i) the road upgading, rehabilitation andmaintenance programs; (ii) proposals for the next three years of road investment and mainutenanceprogram, including physical, financial and tainig aspects and reach agreement with IDA on thebudget esimates for the upgrading, rehabilitation and maintenance progams for the following fiscalyear.

6.25 Estimates of IDA's mission timing, areas of focus, professional skdlls requirements andinputs are provided in Annex 6-4.. As happened so successfaRy under IRP-I, annual workshopsinvolving staff from implementing agencies, would be held to maintain the focus on implementationof the project according to plan and continuously assess the suitability of project design in relationto its developmental objectives. By November 30, 1997, the Government would convene ProjectImplementation Review Meetings (mid-term review) to be attende by aUl donors and beneficiaryorganizatons. The objectives of the meetings would be to review the overall stats of projectimplementation, detennine any required changes in design or implementation arrangements neededto ensure achievement of the project's developmental objectives. Specifically the review meetingswould focus on the status of progress in: (i) separating, managemet of operations fiom MWCT, inparticular decisions regarding formation of a semi-autonomous road agency and mnagane t

Si

arrangemens for civil aviation and road tansport companies; (ii) irasing road fimd revenue tosufficient levels to cover routie and nonmal periodic maintenance costs and achievig fiLstertransfer of road fimd revnues to users; (iii) developing organizional and manage_mt systemswith the services of MWCTs advisoy services group; (iv) implemtg a restructuring anddivestiture progm for the RETCOs and UDA, (vi) prepai of a manual establising soundenviro ntal desig and manant streges for inland su e transport projects; (vii) trainingof domestic contacto; and (viii) achieving the physical wos targets related to Ian completed androad conditions.

52

VIL PROJECT JUSTIFICATION, BENEFTS AND RISKS

A. Justihcation and Benefits

7.01 Ihe proposed project supports the success of the countrys economic recovezy throughreducing tansport costs, fc g increase levs of economic activity and the ingratin ofdomestic mars. The proect would also support the itensification of market liberalizationrefonns, contibute to the integmtion of regional economues through improvement of the majorintnational transit corridors, and help to improve the county's forign excbange earnings.

7.02 Macroeconomic Impact. As indicated in paras. 2.07-2.11 the improvements which havetaken place in the first 3 years of the impleon of IRP-I have already brought aboutsigficant benefits in the form of increased ecnomic actvity and changes in production paterns,reductions m velicle operatig costs and travel tims. However, transportation costs andavaiabili rmain powerful constaints to further and sustned economic recovery. The proposedproject would help reduce these constamts trugh imprvement of the prorty tunk, regional andessenti distict roads and by helping to improve the mameof road transport parastatas.

7.03 Policy and Instiftuional Reforms. The project is also justfied on the grounds that itwould support implementation of the followmg policy and sttutional reforms:

(a) reform of the instonal structure for adminision of the transport sector in orderto unify overall sector policy formulation, planming, monitoring, thus improvingintenmodal coordination and efficiency,

(b) improvemen of organizational and funding for the road networkand incentive systems, thus enabling the roads sector to acquire and

retain appropriately qualified staff, and

(c) development of the docstic construction and consulting industries which would helpimprove project sustinability in the long-tem.

Benefits of the Proposed Physical Investments

7.04 The physical components proposed for inclusion under the project are the Road Upgrading,Rehabilitation and aintenance Program; and he eurcng of Kilimanjaro Inteational AirptRral roads economic prioridzation has been carried out on the basis of the economic index asdescribed in paRM. 5.31 and in Part U of the Prject Files. The feasibility of resurfacing the runwayfor the airport is being updated and a draft report was submitted to IDA during negotiations.

7.05 Tnok Roads. Th feasibility studies for roads included in the project were caried outbetween 1988 and 1992, a period during which the National Consumer Price index rose from about1320 to about 3396 in June 1993. Recent taffic counts also indicated that taffic growth hasincreased substanally above the feasibility study forecasts for rehabilitated roads. MWCrteefore requested its consultants to review the price changes and traffic growth since the sdiaeswere carried out so as to determine the adjustment factors neesary to update the costs and beefitsstreams as of early 1993. Traffic counts were canied out on most of the trunk roads and thedistribution by vehicle type ddetmined. Table 7.1 shows the results of the traffic counts and thepercentage distribution by vehicle type.

Table 7.1 Sample TrafMc Counts on TrunkRoads (1993)

53

% Distribution by T,e of TrafficRoad Section Lenth Tfic Cas PIJp Truck Ful Tc Sedi Buses Buses

AADT <5T Trais >ST Trailers 4SP >25PChalinzeMelea 129 1,271 8.7 18.6 17.0 19.1 8.4 8.4 7.7 12.1

Manyoni4Sngida 128 448 13.5 49.6 3.4 17.3 9.7 3.2 0.4 2.9

Singida,Shelui 110 S44 9.7 8.8 4.3 IS.0 33.7 25.6 0.3 2.6

Nzega,Shiyanga 75 183 5.1 30.7 8.9 28.0 8.9 4A 5.9 6.3

Masasi-Nangombe 50 192 0.3 37.3 22.6 35.3 0.3 0.0 1.4 2.8

Nangombe. 338 180 5.6 30.2 18.1 42.8 0.1 0.1 01 2.6Namtumbo

NamutwboSongea 71 134 15.7 35.6 3.9 33A 1.0 0.00 5.8 4.6

Smbuwang- 240 39 6.7 31.0 0.0 38.9 3.9 17.8 0 1.7mpanda

Kigoma-Kastlu 83 94 4.1 45.7 4.8 31.2 0.00 2.2 2.0 10.0

KasulNyakanazi 233 114 2.3 29.5 9.6 19.1 18.9 19.4 0.3 0.9

7.06 Assuming a constant distrbution pattem anug vehicle types, fiuture taffic has beenestimated to grow at the rate of about 5% per annum. This is considered a coservatve estimate astraffic growth on rehabiLitated roads has more than doubled the esmates in most of the recetfasibilWiy stdies.

7.07 On the basis of the updated data, the Econmic Rate of Retum (ERR) was calculated forindividuals road sections. All road sectons should achieve a minimum ERR of at least 120/. ERRsfor spot imprvement works intended to open up road sections or entire corridors by undertakngminial roadworks would be lcuated during the detailed enginering phase whn the materisrequirements can be quantified with reasonable accry. Ihese works would also be required toachieve ERR of at least 12%. MWCr uses the TRRL Road Investmt Model (RTIM2) forcalculating the ERR. Ihe model which is widely-used in many counies in feasibility studies forroad investnents uses as its main variables, vehicle openg cost savings (benefits) andconstruction, vehicle operaing, and maintenance costs (costs). The results of the econmic analysisare given in table 7.2 below:

54

Table 7.2 Ecoenomlc Anabsis of Truak RoadsCodor Road Secllon Length AADT Constr. Proposed EJR Sbta

(n) Cost Wors date(USS

.. IlIon)6

TANZAM DSM-Mlandizi 47 I,500 15.5 rehab ac 33A FY95/96Cbalinze-Meleda 129 1,271 25.8 rebab ac 22.2 FY97.98Maheage.mula 30 381 3.9 rehab ac 37.0 FY96/97Msimba-ringa-Iawa 365 381 16.0 vebab ac 37.0 FY96197

Centra Dodoma-Manyoi 116 195 36.5 UG G>SD 13.8 FY95/96Mayoi.Singida 128 448 40.3 UG G0>SD 19.7 FY95/96Singida-Shelui 110 544 12.0 UG >0)D 16.9 PY96/97Shelui-Nzega 102 544 30.6 UG 0>SD 28.2 FY96/97Nz%ga-8binyangu 75 183 34.0 Ih0 G>S) 21.5 FY95196SShyainyaga 65 171 21.1 UOG>SD 13.6 1Y97/98BdrShinyanga Bdr-Magogo 47 230 14.8 UG 0>SD) 16.2 FY94/95River

Lake Bulroba-Muleba 80 140- 25.2 UG G0>D 12.1 FY96/97458

SouthenMaasi-Nangomba 50 192 3.6 rihab g 26.0 FY95/96Naugomba,Namtumbo 338 180 4.5 0G1 S/a FY95/96Naimnumbo-Songea 71 134 S.0 rehab g 26.0 FY94/95

SoudthnCoastal

Rufiji River Cr 12 8/a- 12.0 UG G>SD & n/a FY95/96

Westen Surbubana-Mana 240 39 4.8 rehab g n/a FY95/96Kigomi-Kasulu 83 94 3.3 UGEPG 44.4 PY96/97Kasdu-Nyakaazi 233 114 4.2 G0SI na PY97/98

OtNorth Wakuyuyi-Oldeani 99 239 30.0 UG10>SD 22A PY96/97

rehab ac rehabilitation of asphak road surfcesUG G>SD = upgrale from gravel surfae to surfce dressigrehab g = rehabilitation of gravel roadG SI = Gravel spot inprovemUG > G = upgrade from earth surface to gravel standard

B. Project Risks

7.08 Sensitivity analysis was carried out for road sections with marginal ERR. Three scenarioswere tested for these cases: (i) construction costs icrease by 10%; (ii) construction costs increaseby 20* and (ii) traffic grows at about 3% per annum instead of the assumed rate of S/e. Theanalysis owed that highr c trucon costs would depress the ERR by about 1% and 2% forcost icease of 10% and 20% respectively. Therefore, the risk of low economic rems as a resultof higher constuction costs is minimal. Further, the risk of higher costs is less because whereas theconstruction costs are based on experene under W-l, recent bids received indicate declning unit

6 Bm Costs excludin pyscal ad price coinncies

55

costs as the economy is liberalized and competition increases in the sector. lhe impact of reducedtraffic would be more significant with decreases in ERRs of about 4%0 for a 2% decrease in trafficvolumes. However. recent expeence has shown traffic increases of twice or more than origalfeasibility estinutes suggesting that there is considerable suppressed demand. With the economyprojected to continue growing at about 4% per annum, the risk of traffic growth rates of 3% orlower is minimal.

Table 7.3: Sensitivity AnalysisCorridor Road Section Length AADT Constr. ERR +10% +20%

(km) Cost (US$ Cost Cost000)

Central Dodoma-Manyoni 116 195 13.8 12.9 12.0Singida-Shelul 110 544 16.9 16.3 15.7Shinyanga-Shinyanga Bdr 65 171 13.6 12.9 12.0

Lake Bukoba-Muleba 80 140-458 12.1 11.2 10.4

7.09 The more significant risks are: (i) possible failure to improve or at least maintaininstitutional capacity to effectively manage the road networks; (ii) domestic resources fordevelopment expenditures may not be adequate to complemnnt the foreign resources; (ii) contactorcapacity may not develop at a rate comnsurate with the size of the program; and (lii) sufficientroad works equipment may not be available.

7.10 Institutional risks would be mitigated through implementation of a capacity-stengtheningprogram to enhance staff skdlls in the key areas of procurement and contact management, transportplanning and management development, improved management information systems and possibleformnaon (depending on the outcome of studies) within 2-3 years of a semi-autonomous roadagency with autonomy to establish staffing and remuneration policies independently of civil serviceregulations. The Goverment has confimed to IDA that it woul provide adequate fluids to coverup to 10% of the development budget requirements of the project. Because of the different costsharing policies of the donors contributing to the project, the Government would need to provideonly about 5% of the development budget needs. This should be easily achievable since resourceswill be shifted away from the Government and paastatal sectors towards infiastructure and thesocial sectors as the Government implements its public sector restructuring policy. For recurentexpenditures, the Government would fully fund routme and normal periodic maintenance st inFY1995/96. Its total contribution to maintenance fUnding through the road fuid would be aboutUS$36 million per annum for the life of the project. The Government has confirmed that it wouldprowde resources to meet target maintenance costs shown in vara 5.33 or such rewsed estimatesas may be agreed with IDA during project implementation Also the condifions of disbursementfor rehabilitation of trunk roads for FY1995/96 through 1997/98 would be that: (f) theGovernment would have allocated agreed annual allocations for those years; and (ii) adequateand timely releases of fimds from the previous year's budget for road rehabilitation andmaintenance ofall trunkand regional roads programs would have been made (para 8.01 (C(aJ).

7.11 The risk of slower development of the construction industry would be mitigated by supportfor the contractors to be provided under the project through NCC (ras 5.21) and through aflexible design of the project which would allow an increase in the rate of usage of intemationalcontractors if necessary. The problem of equipment availability is being addressed under theongoing project by contracting out rehabilitation of equipment to the private sector and by makingPEHCOL mnagemt accountable to the Board for performance through explicit performanceindicators while the company is prepared for private sector participation within the next 2-3 years.

56

vmJL AGREEMENTS REACHIED AND RECOMMENDATION

8.01 The agrments reached during negotiations, the conditions for Credit Effictiveness and theconditions of disbursement are as follows:

A. Agreements Reached During Negotiations

(a) the Govemment would pursue a privatization strategy for Air Tanzania Corporationand that pending its privafization, ATC would not enter into aircraft or equipmentleasing agrents or invest in aircraft equipment costing more than US$1.5 millionfor the purpose of increasing its operating capacity without prior consultation andagreement with IDA (para- 3.27);

(b) the Govenunent would consult with IDA on any proposed changes in intenalorganizational arragements of MWCT which would materially affect theimplementation of the project (oaras. 3.29 & 6.04).

(c) the Govemment would not undertake any proposed new investment m the roadsector, estimated to cost more than US$3.0 million unless it has an estimatedecononic rate of return of at least 12%/o, taldng into account socio-economic criteriafp=. 3.34t,

(d) the Government would submit to IDA, by April 30, 1995, an action plan for therestructuring of the civil aviation subsector (nar_a.27J;

(e) the Government would submit, by April 30, 1995, an plan of action satisfactoy tothe Association, for restucuring of the RETCOs and UDA based on Goveumentdecisions to be made on the remdations of the Road Trnsport ServicesRestucturing Study (par. 5.24);

(f) the Government would increase revenue collection from user chawges, with a view tofilly fimding all maitenance costs by FY1995/96 with the exception of the bacldogperiodic maitance which is expected to be funded by donors (pam. 5.36);

(g) that: (i) allocation of funds from the Road Fund to districts and urban areas wouldbe based on needs and capacity criteria to be agreed vnth the Association by July 1,1995 based on the rmdations of an ongoing RMI-funded study (Vna=. .38)and (ii) submission of audit reports on the accounts of all project agencies includingthe accounts of the Road Fund for trunk and regional roads starting with FY1994/95(pars. 6.23);

(h) agreement that MWCT would review the effictiveness of its environmentalguidelines developed under CREDITS 2149-TA and 2267-TA and prepare a manualsetting down sound environmental design and mngem nt stategies for inlandsurfce transport projects (pam. 5.50)

B. Conditions for Credit Effectiveness

57

(a) cmncement of imlementtion of an incentive package, satisfictoty to theAssociatio for MWCT staff involved in the management and implemen n offtheproject (arl. A.fI

(b) evidence of the execution of the agrement between PEHCOLs Board of Dieorsand nmaagmt on perfonnmnce monitoring indicators, satisfacto;

(c) adoption of a plan of acdon to broaden the Road Fund's revenue base and to reducethe delays in collection and disbursement of funds based on recommendations of theRoad User Chages Studyto be agved with IIDA (PAm 4.19 A 5.361; and

(d) submission to IDA of audit reports for the Road Fund Accounts for trunk andregional roads and for urban and district roads for FY1992/93 (paa.i 62).

C. Condition of Disbursemt

(a) condition of disbment for rehbilitation of trnk roads for FY1995/96 through1997/98 would be that (i) the Govemmet would have allocated agreed annualbudgets fr those years; and (ii) adequate and umely releases of funds from theprevs year's budget for road rebabilitaion and mainan of all trunk andegional roads would have been made (pra. 7.10)

Recommendation

8.02 Subject to the above agrement and conditions, the project is suitable for a Credit to theGovement of Tanzania in the amount of SDR 123.3 milion (US$170.2 million equivalent), onstandard IDAterms.

ANNEX 3-158 Page 1 of 5

TANZANIASecond Integrated Roads Project

Letter of Sector Policy

Introduction

The putpose of tlis Le a to cofm our tansport sector polcim statgs andprograms of atio whih wil povde the bas for excution of the Proposed Second IntgmtedRoads Prjct The Govenme has aLrdy at its disposal seava docume which definetasport policy, including a draft National Transport Policy Docunt and a programm forTrnsport Sectr Recovy which wore submitted to the 1987 Arusha Tsport Sector DonorsCanfbrnce, a Roads Subsector Policy matix and a Tranport Sector Mtr which were presentdto the Consultative Group Meeting of June 1992 in Paris as well as to the MP ImpementationReview Meeig of November 1992. Fu rcmo, the Goverwnmet docmm t,P rPentation ofthe Second Integated Roads Proect,' dated June 1993 includes an Annex entitled 'TransportScto - Polcy and Statg Actons-Resouc and tituons", which sets out sues, pohcyobjectives, preset status and prposed actions. The Govrnmt wihes to draw on thesedocmenAs to describe the main tansport sector issu ncludinghe gremed actions which it hasdecided to tk, as well as to describe those actions that are scheduled to be tk during theimplementao period of the prposed projoct (FY94/95-FYOOIOI). Th lte describes theoveral tansport sector policis strategies, inv_esnt priorities and thed ficuses on th roadssubsector which is the main beneficiary of the proposed Credi

Overal Transport Sector Policies and Strategies

The Govemmes pnncipal poicy objectives are to strngthen its capacity to administerpolicy fomulation, oversight, coordination, regulation and moniring functions so as to cate anenvironment for fair compettion by opertos; separa opeating functons finm MWCT; andensure that parastats finciaon as commercial and autonou enis and to evenuy pivatizethem.

To strengthen its capacity to adminster th sector, on October 10, 1993, te Govmwemerged the Minstry of Works (MOW) and the Ministry of Co ns and Transport (MCI)to form the Ministiy of Works, Commcations and Transport (MWCT). Furdier, theGoveament is commssioning short studies aimed at restuurin the tsport sector to seekseparation of policy making and reguatoiy fuctios fim hose of mplemtaion. The objewvewould be for mple n functions to main with parastaas or private sectorwhile MWCT administers policy ftomation, oversight, coordination, regation and monrigfimctons to create an enabling enomn for fair coetiion by operators. The maincandidates for separation from MWCT are the management of roads for which establishment of asemi-autonomus roads agecy is under consderation, andthe managmet of aiports for which astudy will be completed in lae 1994. It is ex that the mmw ended acion plans and timebound action plans for the medium and long tem will evolve out of these studies and Govmntwill mace decisions and develop implan schedules by April 30, 1993.

Due to te large rquirm and limited resources, the Govenment is committed to aconthious prooess of rational pnoritizon and moniting of public sector eenditures, thereforeensring the formulation and consistent application of economic criter to rank all transport

ANNEX 3-1Page 2 of 5

expediu before major invesmnt decisions are tak. The Governmet will endavor to pursuoptnum use of donmestic resources and labor-based technologies, and build cnvirnmetalprotection aspect into panning an pl Furthermori, the Govement rognizes thned for increased use of infonuation telology to ensure improved data collection and analysi aswell as eftctiwve eecution of the MWCT fumtions of oversigh, coordination, monitoring andregulation of the tansport sector. Towards this end, well focused taig will be given to MWCTstaff as well as to local consulants, and synchronid acqisition of infomation thnolgyhardware and softwre will be carried out during implementtion of the Second btegrated RoadsProject.

A number of stbps have already been taken to ensur that parastatls operate asautonomous and commercial entites.

In the ports subsector, the Govemem has decided to dealit e responility foropeatig fctions away fiom the headquars to te ports and to cmnmio a port

mcalizatonrestructuring stUdY. he Tanania Harbours Authoity (THA), is developing anaction plan for port rsucturg and expect to complete the alon/s[ tnstudy by end of 1994 after which its recommendatons would be considered for implFurtherore, a peformance ag betwee MWCT and THA is to be estbli soon on thebasis of already agreed respective resposibilities and perormance targets under te Dar esSalaam Port Projec Phase, II. tnhe maritime and sbipping busess, the Governmnmt is reviewingthe relevant legislation as wel as the national Shipping Agencies Company and the Ta_naiaCentral Freight Bureau (TCFB) and will evolve a clar policy by Deceiber 1995.

In the Railways subsector, under a Memorandum of UIderstanding (MOU) between TRCmanagement and the Govemmt, TRC has been allowed to operate on cm i bais, therebysetn salaries and taking r decisions without rfnce to Govemnmena Further, m orde toenhance the cmpeitivs of TAZAW.A with other operators in the region, the Govrmen ofue United Akepublic of Tanzniia and the Republc o. Zambia have sed an agreeme(September 1993) allowing TAZARA to operate on a commercial basis.

In order to improve capacity and pefrmance of the air tansport sub-sector, theGovenmment has comnmissioned a study to look into the restructuring of the Directorate of CivilAviation (DCA) and the creation of a national airports agency to manage, operate and maintn themajor airports. However, the govenment will continue to provide for the uneconomical airports,especially in the remote areas. Further, the Civil Aviation Board (CAB) is implementing an "OpenSkies" policy and has granted opeating licenses to several opeators in the past year to competewith Air Tanzania Corporation (ATC). ATC has been allowed to oprate as a commercialbusiness with fieedom to set its own tariffi and its own stafng and remueaion policies. Therehas been marked inprovements in inteA magement and operational perfomance and ATC iscontinuing with restructuring of its balance sheet in prepration for privatizato.

nvestment Priorities

The Goverment is committed to increasing the share of inwestnt finds allocated toecnomic and social services sectors m line with its policy of reducing the size of Goverranut andecuri pnvate sector participation in the productive setors. Within the transport sector theneeds for road i&astructure and road transportation are bemg accorded the highest priority in

ANNEX 3-1Page 3 of 5

view of their cental role i faciting economc recovezy through evaution of crops to themarkets, deiveiy of agricultural inputs and movement of passnges.

in the roads subsector, resourc are allocated giving highest prioity to routiemaitenance1on roads in good and fair condition, penodic maintenance, rgency works anrehabilitation. Duing IRP-II, emphas will be put on rehbilit and upgading roads whilebuilding up the capacity of the local private construction indstry to repair and mantain roads andshrturces.

In July 1991, a Road Fund was estblished with the specific objectives of findingmaintnance and rehabilitation costs fom road user chges. he cages are drved fram a fueltoll levy which incrased from 648% (1991) to 11-16% (1993) of rail prices of peol an dieserespectively. hImede policy objectives include widing the Road Funcs mveu base andstrenghenn the amnistion of the Fund. By FY1995196 revenues from the Fund wiadequately fimd routine and normad periodic maitace of , regional and essenal districtroads under the responsibility of MWCT which are in good and fair candito Treafter thesateg will be to prgresively increase the fimding levels in eal ums, in orde to maintain theincreasing length o roads brought to good codition and to ensure that no roads would be allowedto revert to substndard condition

Roads Subsector

Investment Selection Criteria

XTe Government is fully committed to using economic critria in decidig o invsns.In the roads subsector, the network development stag is based on a corridor approac whichconsiders and defines the roads coeg urban areas, pors, tourist centers, minin agculualand other production centes. This approach enables the planning of road inv m to be basedon broader pnorities and significant sectors of the economy. The focus of investe prgmswill be on upgrading and rehabilitation, er than on new contuctio, except i cases ofemcrgency.

Trunk Roads: Within trsport comidos, individual road links are evaluated and rankedaccording to their esimated econmc rates of ret (ERRs). All road links are required to haveERR of at least 12%/o calculated on the basis of cost effective desig cteiia. However, since theERR does not always fully cature the benefits of road improvemes, exceptions to te 12% ERRcriteria are allowed for some cases such as where it is necessary to filitate the movment of foodbetween srplus production and deficit areas.

Rural Roads: Relaive priority ranking of rehabilitation and perioic _mai worksis based on an economic index (El) which takes into consideration taffic volume (ADI), roadcondition and cost of improvement in terms of cost/km (US$). Because the El does not adequaWelytake into accowunt the socioeconomic impact of the proposed road investns, or the impact onlocal mual ommunes of labor based road works and _ the meodolog will bereviewed and modified by June 30, 1995.

AN1NEX 3-1~ 61- Page 4 of 5

DEncutio gf Road Rehabfidicato Pan Up9rMdin

The Governent is committed to increasming the particpation of competitive localcontactors and consulan in desig and implemenation ofroad and bridge works. Pa _ang ofworks wil be geared to both developing the capacity of local constucon ndusty as well asprovding adequate oppomrities for foreig firms to participate in order to achieve the physicaltarets for the Second Itgrated Roads Project. For rral roads, laborbased techiques will beencouraged through tainin and appropriate specifcations.

Execution ofRoad Ma ce

The Governme is committed to inasing the share of maince works caried out byprivate setr contcts, theby reducing the share presy done by foe accut Usevenual objective is to matain a sklleton force account brigade for the purpose of traing,emergencis and for works that do n interest private contactors or would not be cost effbctive if

rre out by conrco. Annual targets for frce account contated wors will bedetemined each fiscal year, with the objective of havig a substantial proporio of manteancework caruied out by conact by fiscal year 1999/2000. Furtheor, the Gov_runt willencourage t development and use of labor-based methods in order to create local employmentand reduce the subsecos foreign currecy requiremnt.

The Govemet is committed to achieving efficient povision of euipme for road. Towards this end, the Goverment has estabished a parastaa organition (Plant

and Equiment He Company Limited) to own, manage and rent out heavy equipmet to MWCrsRegional and District Enginees and private contacors an commera tems. To improve itscommercial orientaton and prepa-e it for subsequet private sector participation, te Govcrnmenis requn PEHCOL ma t to enter mto a peormance agment with its Board from1994 onwards. Private sector firms are being encouraged to establish plant leasing opaions soas to create a competitive market for equipment and reduce costs of road works. Furtermore,Govemuent is conunitted to manage all its road equipment workshops along commercial lines,with users paynmg full hire rates.

Road Network Mt

in order to strgt the mangemet of the road nework, the Goemnet has adoptedan action plan conmrismg of several measures. As a first step, dte Ministy of Works,Communicatis and Transport has announced formati n of a Cetral Roads Board and RegionalRoads Boards which will advise the Minister on ways to stregte roads manageent. Second, ata techical level, a Manageme Action Group (MAG) will be fiomed under the authodty of theDirector of Roads and Arodm to assist him w orgational planning and developmetv,including establisient of "state of the art" man me inoaton system. Third, aproductivity-based incentive scheme for roads staff is expected to be in place by 1994. All theabove actions ar forerunners to the creatn of a semi-autonomus roads agency.

ANNEX 3-162 Page 5 of 5

Management of Road Safety and Vehicle Axle Lad Control

The Govcrnment is committed to road safety and axle load control enforcement programsin accordance with the SATCC agreemets. Consequently, reorganization and coordination ofroad traffic sf acftivities, revew of relevat legal instruments and enforcement of veicle weightconol are in progress and necesay legislWation will be enacted during 1994.

Road Transport Services

In order to improve availability, uiliation and operation of freight and passenger veicles,regulatory and adminitrave restictions on importation of vehicles and spare parts have beenremoved under the Open General License (OGL). Govement has allowed pricing of roadtansport services to be dermined by market fores wih a vew to allown operators recovettheir oprtng costs and to realize a reasonable retur n their assets. Subsidy needs, if any, willhave to be stdied and economically justified before application. The role and functions of NTC,RETCOs and UDA will be rviwed under the proposed Road Transport Services ResuctungStudy, on the basis of which a restructug and/or divestiture plan for road transport servicesincluding RETCOs and UDA would be completed by April 30,1995.

In urban areas, road rehabilitation and new construction works will include the provisionof special facilities for pedestians and non-motorized transport modes so as to encourage use ofintemdiate means of transport and to enhance safety as well as to improve traffic circulation inthe central business districts.

YMllage Travel and Transoort

Throughout Tanzia, many villages are cut off during the rainy season and transport isundertakn prdinantly by women head-loading. Therefor to improve accessibility of ruralvillages and to provide demonstrations of workable solutions to rural travel and tansport problemsthrough sustainable self-help schemes, the Govemment intends to conduct pilot projects in severaldistricts. The pilot projects will form a basis for formulation of policy and implenion strategyfor improving rural travel and transport In the county.

TANZANIASecond Integrated Roads Project

Capatity Strengthening Program (FY94/95-FY9899)

ToWal Cost F#Y94/9 ' $/ V90 Pf9 fl. . .

US$ 000 No. US$ 000 No. US$ 000 No. US$ 000 No. US$ No. US$00I I ~~~ ~ ~~~~~~~~~~~~~~~~~~~~~~~~~~~~000 O

vmugera Tecbnical Assidance to 245.0 175 I 245.0 -

I______ RBO Kagera , _._ _Managemet & Info. Executive Developmen 105.0 2 30.0 2 30.0 1 15.0 1 15.0 I 15.0Techmology __ _ _ _ _ _ _ _ _ _ ____ _ _ _ _ __ _ _

IRF Seminars 225.0 3 45.0 3 45.0 3 45.0 3 45.0 3 45.0Challnges_of 39.1 4 7.82 4 7.82 4 7.82 4 7.82 4 7.82Managenmet___MIS 30.0 4 6.0 4 6.0 64 6.0 4 6.0 41 6.0

_ Comnuter Courses 36.0 5 7.2 5 7.2 5 7.2 5 7.2 5 1 7.2Workshops IRP Inplementaion 350.0 50 70.0 50 70.0 50 70.0 S0 70.0 50 70.0

Transpxxt Planning & 90.0 30.0 30.0 30.0___._.____________Policy

Short-Tem Courses Procurement Management 153.0 20 30.6 20 30.6 20 30.6 20 30.6 20 30.6Contcdt Administation 127.0 20 31.75 20 31.75 20 31.75 20 31.75 -

Transport Plannig 1/ 305.6 30 551.4 30 S1.A 30 SIA 30 I tA1.4Oher Traig3 2/ 485.55 60 97.11 60 97.11 60 97.11 60 97.11 60 97.11Study Tours & Othr 120.0 2 30.0 2 30.0 2 30.0 2 30.0Commse

Coswutancy Seavices Forein Expt-nPlanning 360.01 90.0 180.0 90Regionda Egxpet-Plnning 180.0 45.0 1 90.0 45.0Local Consultants 45.0 11.3 = 22.5 11.2 =__Support to the nTF 25.0 5.0 5.0 5.0 _ 5.0 5.0

Academic Courses 3/ _____________ 720.0 9 217 6 145 5 121 5 121 5 121Road Safety (NTI) Traiing MAAP System 36.25 20 7.2S 20 7.25 20 7.25 20 7.25 20 7.25

Training for Driver Itist 94.5 10 18.9 10 18.9 10 18.9 10 18.9 10 18.9Vehile Inspectors 83.0 20 16.6 20 16.6 20 16.6 20 16.6 20 16.6 xTraining ___

Traning ofSchool 41.0 200 13.67 200 13.67 200 13.67 _ o_ eachers

Total = 1::: 3796 = 61.6 10= I1.0 750.50 =__ 5 447.4811 For Engineers and Plamers at Regional and Disrit LveL21 nludes Technical Trdning, System Specific Training, Magement Traiing, Ibud o to IRP4- for TeciciJasForan, e s ad Adm tve *St3U Iludes KSc. HlIway Eq4., KSc. Comruction Management, MSc. Civil E e (Material), MSc. Trlsport Econonist, NtSc. Bidge Ekq nneews,bc Traff Engineers B.Sc

Enviroiment EAsneas, ?. thcumn Rcosee

No. refers to the mnuber of pailciaWns

UNITED REPUBLIC OF TANZNIASecond ltegrated Roads Program

Trunk Roads, Culverts and Bridges ProgramTrunk Roads

DASE.uNGTH START SURFACE PROPOSED ERR CO_

CORRIDOR ROAD SECTION l DONOR DATE TYPj AMDT WORKS (%. UUssIDSalaMlandizt 47 AMl)B FY95196 Paved S1,500 rhbilitation 33A 15.5

(l) Tanzam Chalinne-MeleLa 129 AIDB FY97/ Paved 1,271 rehabilitat 22.2 25.8Mahene-lula 30 AIM)B FY96(97 Paved 381 rehabilitation 37.0 3.9Ms_____________W_ 365 NORAD FY96197 Paved 381 spot ehbiiatiou 37.0 16.0Dodoa-Mayo 116 EEC FY9519C _rve 195 uWgade to ds paved 13.8 36.5Manyori-Singida 128 EEC FY95/96 gravel 448 upgrade tod paved 19.7 40.3Singida-Shelni 110 IDA FY96/97 grave S44 upgradetods paved 16.9 12A

(2) Cet Shelui-Nzega 102 AlDB FY96/97 grave 44 upgpde to de paved 28.2 30.6NzeVg aShinYa /rh1de4S 105 BEC FY9/95 gravel 1983 upgrade to de paved 21.5 310Shian-Shiny. Br 65 IDA PY97/98 grave 171 upgrade to de paed 13.6 19hShiny. Bde . MWgo River 47 IDA .PY94195 g l 230 upgrae to ds paved 16.2 11.6

(3) Lake Bukoba-Muleba 80 AMDB FY967 l 140-458 rhab. and upgade to ds 12.1 25.2Masi-Nangoaba 50 IDA FY95/96 gravd 192 rabiliation 26.0 3.

(4) Souther Nngomba-Namntumbo 338 IDA MY95I9% gravel 180 spo impre nt 4.5Namtwnbo- Song 71 CIDNA FY94/9S grave 134 rehbilitation 26.0 5.0

(5) Southern Rufiji Rivr Crossing KF FY95/96 ravel upgrade to do plus bridge - 12.0

Coastal ___ _ _ _ _ _ _ _ _ _ __ __ _ _ _ ____ _ _

SumbawangaMpanda 240 WDA FY9519C gravel 39 spot unprovnct -4.8(6) Wetegn Kigoma-Kasulu 83 DA FY96/97 grivel 94 gv rehbilitation 44.0 3.3

Kasullu-Nyakanazi 233 ID[A FY97/98 gravel 114 spot _npvnt 4.2

(7) GreatNortk MakuyuNr-Nagor/ldeani 99 OPEC FY997 gavel 239 upgrde to dB paved 22. 30.0M p4da-lno 129 IDA PY96197 gravd spot iMveMet - 2.4

lapole 137 IDA FY96197 gravd . spot impvemet 2b6(8) Mid West lpoke-Tabon 91 IDA FY9S196 gravd 96 spot n _ 3.0

____________ Tabosu-Nzega 116 ID)A FY94t95 grael spot ipovmet 3.0

D5MAecess Pr JJCA FY949S NIA . . . 3

__ __ __ __ TOTALS 2,783 _ . - . .___ 358 .1 0I 1olbOQ

TANZANIASecond Interated Roads Profect

Trunk Roads Program

Periodic Mantenance Bakldog

EXPENDITURECORRIDOR ROAD SECTION KM DONOR BASE IUS$M)

(WORKS/ COST _vM I vw1ms._______________ .__________________ TOTALS 2/ (US$M)1/

TANZAM Ibanda-ItungiPort 7127 NORAD 0.21 0.21 .Sonowe-Tundums 15170 NORAD 1.00 1.00

CENTRAL Rusumo-Rusahungs 60193 EEC 1.75 1.75LAKE Nyaguge-Musoma 1051184 EEC 3.64 2.69 0.95

Muleba-Biharamulo 40/99 AfDB 1.00 1.00

SOUTHERN Mtwara-Masasi 100/200 R 3.30 3.30GREAT Mmjingu-Babti 24159 IDA 0.60 0.60 - 0%

NORTH Babtl-SlngWia 401266 IDA 1.00 . 1.00Dodma-Mtera 401125 IDA 1.00 1.00 .Mtera-ringa 40/127 IDA 1.00 1.00Makuyuni-Ngorongoro 40/100 IDA 1.00 1.00 .Arusha-Namanga 100/100 AfDBINORAD 3.00 - 1.00 2.00

D'SALAAM Pugu Road (to Airport) 2/123 IDA 0.34 0.34 -ACCESS Nelson Mandela Road

(Port Access) 5/16 IDA 0.66 0.66 .SUB-TOTAL: ROAD 643/1614 18.0 8.0 10.0MAINTENANCE

Culverts 3/ IDA 3.0 3.0 .

BASE COST-PERIODIC MAINTENANCE BACKLOG _24.0 12.0 12.0I/ Base cost exc;ludes contingencies taxes and duties.2/ Shows the number of km to be maitained out of the total road section length.31 Cuhrt wiii be procured under ICB procedures with IDA financing and wil be insta11ed using Road Fund services.

0 I

TANZANUSecoad Integrated Roads Programa

Trunk Roads Progrm

Summary f Tnmk Road BDrdgesll:~~~~~~~ - .... - _ -_

TOTAL TOTALNO. OF LIENGTH MINOR NEW BASESTRUC- STRUC- REPAIRS REPASRS REDICK BRDGES COST 21

PACKAGEIZONE CONTENT REGION TURES R US( OOEl US$'S'0 USS'OOO _usS'00 USS000L South-Eas Zone Em rgency ws, 15 bridges Mtwaa 9 482.1 7.181 7,181

desu_yed by 1990 flood. Lindi 6 381.7 4,881 4,881ToW

I __ _____= 15 863.8 0 0 0 120.962 12.062

Cetre-North Zone New bndges and rqpaus m Slam 1 40.1 186 1,868centrl and nrthern part of Coast 27 389.7 4 377 70 234 685the country. Morogoro 44 830.4 143 640 393 641 1.817

Iringa 14 534.9 21 378 399Mbeya 35 909.4 49 S56 212 2,917 3,734Rukva 7 40.1 7 112 119Arush 4 66.7 35 130 165Ruvuma S 316.7 23 23

TotalPac U__e n 137 3.128.00 240 1.93 787 5.790 8.810UL SouEast Zone Bridges along Masasi-Mtwa Ruvumu 28 577. 7 136 62 5;26 5,469

Nangurukuru Road Mtwara 23 271.1 521 72 593Tota

efiam __ 51 648.9 7 657 134 5264. 6,062GRANDTOTaAL _ 2051 44071247122 4. 7 265C 921 23.116 26.934

1V Details of lIdividual Bridges wil be included In the Project Ipementatin Mumal21 Ban cost excudes condingedcIes, tae and dties

OQ0I

TANZANJAsa_l sbdwRon&p'rd

mA Na nm __ __ _ __ _

IDA-FbmedlWf IB _ Re ee IAIegt v) 3Mg. ames p Cu 31

(FY) - - Largh (m) Waf um1t1.(Im996t hmA-

50 . P113 O0.0 1

TutguJ*a Packa-Dodiood 61 (10) 311 1.44 t7Cno(5).

Ta.Olmmant 40 PB 0.64

FFhQim(5) 0.0STOWl 151 (20) . 2A

2. (1995) ._..m

53C unyu(14 Pm 1.067Gulwe4Cibas 36 a M(8) DFR O.S4 46Med-Ic 18 .DFR 0.36 43

- i u0 a(10) IRK 0.75 In34 MRR 0.68 61

Tot al 171 (32) 3.69

3.(1994/95) AnS

MMA-Dourba bRydo5 so PUB 0.80 133S DFR 0.70 4t 0_4

SM61144_9801040" 43 PUB 0.69 13N *ubvAp-Mt&N0W is5 DFR 0.30 2Doncro.NgOMM 26 RRR 0.52 ItSh9ids-Ndqo4uzp 64 Ussr (30) RRR 1.73 5M*fHydem B (S) * 0.08Manduli-LOBceDo OIdceO () 0.02Mcedui-Lonodldo Nro (5) 0.06Motzu-LOdo Moi (5) *___ 0.0OTOW 2_3__ U3 (50) . 5.06

4. (199495) MwazsMaFN.g1Fay.-Mala 51 NyuasO(30) DFR 1.47 ISN 1VICAlk"dow-LIMINS!"ba 30 DiR 0.60 11d_Ny ko-Nythmos-Nkme 44 D.8R .8 12K"WVSUe3iiMw* I DFR O.16 12M000111104"falo_"Wal"m 55 MWO1(10) PUB 1.03 17NlASOgNgaaao0-B1u4 41 1RR 0.82 25

_. 41, q, p 36 . _RRR 0.72 76_ _TOW_. 265 40) - 5.68 -

FY - fiAmikapdy.istAscb *ikd 'waits us choledfgood. mumua.PUB - ibul *imt*ma 01}MI - wad tdbSP-ed°OFR - amancial H

TANZANISecond btegrted Roads Project

Rural Read Progamm

IDA ,Fhaced Works (LC)REGION ROAD NAME LENGT PROPOSED ECoNOMC CO1ST fTART

OM) _____ INDEX U8S, ,,, DAT

COAST 1) L1a_s**.TaWa 19 DPR is 0.38 1994ff2)Lugolie.Ubam.ofad 1 _16 DMI 14 032 1994853) Kih nuS_20 DFR 23 0.40 1994054__82 1MB 20 131 19586SobTold Cent 137 2.41

SHINYANGA 3) Luguu-mmW* 30 D1R II 0.60 199682) KuaM3iKiMwdi.MAtp" 63 DlR 33 3.26 1994953) MwAgmzMai*W 47 DFR 12 0.94 19%54) K1_da _AB.MA-Bdii 69 MB 47 S.tO 1996U75) MaU_&4ia 40 PMB 40 0.4 19945S_bTOaI Shi em 249 4 - _4_

MlAJAR 1) NewA1a. i4g AW 65 PM18 153 3.04 996w72) Madu Mumbe. I 8 PMB 142 0.28 19956 O.3) MpspUr4CU10-Nym 4Wu 37 PUB 118 0.59 139956 co4) Mtwar-Nevwa 68 RRR 114 136 1997I88____________.__ _ SubTotl Mtm 8 _ IS _ 3.27ARUSHA 1) K__e.n River 29 RRR 75 0.58 199495

2) Taugn-Akei-Nkoernp 22 DFR 21 0.44 199415. ___________________ Sob Tod A a 53 1.0DODOMAISINrIDA 3) *tK w ( y r 26 RRR 60 0.64 1996972) Ih LIdu 123 PMB 2 1.97 1996197

3) lHeku 35 DFR 6 0.70 199674) KlMho.CKbyubo(Bwpu)* 0 PM8 0.1 |19968._________ SoTob l P.aD I gan 384 __ 3.46

MAR WJA WANZA 1) _ _wegabmbs 24 DFR 8 0.48 1994ff2) Is IDF 9 0m 19943) KaIkowe._orep I5 DFR t0 0.30 1994854) S _pdaub 30 PMB K6 0,4 1994855) m wma 30 RRR 22 0.60 1994956) .Reuu.Kiaa(M*igm&) 20 RRR 25 06 1994V507) 8 Ciar (Trah) 20 n 3R 25 .19945 G8) KYPN_A4Bwu-Mwa 8 DFR 12 0.d6 199459) 8tmb-BuSmbo 3 M R3 6 0.06 199495 Ul10)Ikns4bkiaiK=gw(Mo I_ I_ . 0.411994195

_SubToed Muu/Mw=aa 165 _ 3.40

TANZANIASecond Integrated Roads Project

Rural Road Progam

_____________JIDA-Fnaced Wor (LCB)REGION ROAD NAME L3CT PROPOSED ECONOMIC sTTif

OM) 'WORKS [nD USS _mi DAAE

KIGOMA 1) 16 D t 032 19952) H-aW Myuu 36 DFR t5 .72 199453)KaIha2I.Mkp b _12 DfR t0 0.24 1994095

4) Xmvlw u I DFR 10 0.16 1994855) xw1"4f*ui 35 DFR 12 0.70 199S056) Nyulia 31 DPR 11 02199057) ShuboWkumk-lya 16 PMB 6 0.26 199U05S) K _sba4Hi. 8 PMB 39 0.13 1994959) _ _ r 39 PUB 13 .77 1990510) Bed Mmyssu 40 ER 0 020199I4095II) KId_AUim ~r . . 0.27 19949512) K CrwiIafwip4 (lW*ni)* 0.12 1994513) KidKi.R w(Mkoua) . 0.09 994195SubTal tOgoa 241 5.20

TABORA 3) Ipaga.Mhf (Ihur 3 DFR 6 0.91 2990$ oa

2) lgdbKCha 39 DFR 9 0.78 199053) UmhmjRyD* 21 DFR 8 0.42 3941954) Iberg n_o4 42 DFR 12 0.84 13905

_- - 5) Kd&UsCbmw 14 RRR 4 0. 8199s6) TAh wa S RRR 0.10 1994957) TabcaJyudai 21 RRR 8 0.42 19940953) TabMn*i (Isr . 0 0.23 3941959) Tabma.Chup (cIuauuId.m) * 0.23 399/05Sub Told Tabe ISO 43

TOTAL 586 27.51*Bidge name in parentisis -

.~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~I

I- i

TANZANIASoud Inegrted Rabd Pirjed

RBuid Roads Progrm - Disict and Feeder Roads (Od0er Dous)

REION ROAD NAME LENU ACXGE ECONOMIC .XIU .TAZT FUNDING

Q__) No. INDE (C DATE AG_NCYDIIUA 1) WiMokMqwlanDula 715 S 1.5 1999

2) O1obnyc 26 2 1 0.52 995196 EEC3) NyigtMgololo 39 3 9 0.75 1996SSub Ta Ihigp 140 2.=0

Loot 1) lwa*kaD&ukiw&.Ndapd 1 1 6 1.021 95196 FINNlDA3) Ngongo.Mmdaw 27 2 5 0.54 195196 _ _

SubTdOal Liam_ 78 1.56

UKWA I) N la-tali.Mti_,bwa 46 1 11 0.92 19941952)MWapt*_ Kxb 20 2 13 0.40 1995196 NORAD3) MqyauuiGtay 28 3 tO 0.56 1995196

SubTdd Rukwa 94 1.81

MBEYA 1) Ibstm-Luwii 55 2 20 1.10 1996J972) Shigp nbadba 27 3 15 0.5419961973) K&kdo-Mwea 12 1 18 0.24 1995196 NORAD4) Soanyp.Siniike 10 3 26 0.20 1996/975) IWo ie-Kikondo.DB Makdo 36 1 75 0.72 1995/96SubTodd Mbea 140 2.80

MOROGORO 1) n ga-Nyandm 20 t 3 0.40 19951962) Anp MjooKati 35 I 2 0.70 19951963) M 4mvizi-Lnug 13 1 2 0.26 1995196 SDC4) MpangTawca 35 2 2 0.70 19961975) Matlnyi-Kilos kwa MPPO 37 3 2 0.74 1996W7Sub Tda Moigoo 140 2.80

RUVUMA 1) H.a.Kiada 30 1 4 0.60 995962) N&&AluWnao-Urta.NpmNbo 10 I 4 0.20 199596 EEC3) Uwot-KbuaRwuda 15 3 4 0.30 19961974) UnyarvTO-Lipauat 30 2 4 0.60 tm/15965) TvD&u nsmam e"dwkI 21 3 4 0.42 19960976) Mbm.Mbuk 10 2 3 0.20 199596

Nates-Samala to 3 3 0.201996'97 O '.To. _ .Ruv.m 1.61 2.52

71 ANNEX 5-3Page S of 12

_ S

ji t__

Seeud lutogated Reads ProjcRura Roads Progr - Priodk Baclog M at mac (lomoui)

REGION ROAD NAME LENGTH PACKAGE ECXNOMIC cwr SfARr 1DING

____________________ ._________________ _ No. ,E (UE) mlNaN INDuD __) DATE AGENCV

IRINOA l) kmp-Dabip So 1 79 0.80 199697 EE

LINDI 1) Nan vwtNjio 50 l 6 0.20199495 FINNIDA

4PEYA 1) Miowo.Utau*l 74 1 60 1.18 1995/96 NORAD

MOROGORO I) IdisM _pt 15 I 8 0.24 1995/96 DC

RUKWA 1) Namwy k=rd 45 1 13 0.72 1996/97 NORAD

RUVUMA 1) Kh.hai4 25 1 9 0.40 1996/K2) Mbmbe Bary-tuMi 30 I 7 0.48 1996197 EEC3) Mtwawa V'lage-Uger 35 1 8 0.56 1995/96

TANGA 1) Tig .paagani 50 1 24 0.80 1996~97 NORAD.. _ _ _ _ _ _ _ . _ _ _ _ _ _ - _ _ . . _ , _. _ _ _ _ _ _ _ _ _ _ . . _ _ _ _ ,

DSALAAM 1) Kiwki-PaeAw_A 58 1 72 0.93 1996/97 JAPAN

TOTAL 432 6.91

lI

ao

tn

73ANNEX 5-3Page 7 of 12

IL Iii 100 l1 I I0 ! 1 1

FIT -- ! | -- 0

TANZANIASecond Itegrated Roads ProjectRurl Road Bridges and Culverts

REGION ROAD NAM BRMIGE NAM SPAN COST FUNDING.__m (USS Miton) AGENCY

MBEYA Mp=ba wtM(Ih je Did) Mail 13.0 0.19Ipaa*lCtmnb (Kyeb DMU) Nsesi 15.0 0.23RujW-M&4

%bira (Mbya Disict) MuWa 15.0 0.23 NORADMbalizi-Makonos (Chuna Diatid) Umemule 7.0 0.11

__________ __ Sub Total 50 0.76

ItINOA Daba.dIdeto Idde 18.0 0.27bris.Paw Hobo 12.0 0.18

nuIfa4ms Nyaac 5.0 0.08 EECNduhlmo.Bultgwa _ , Mtanzioa 5 0.08

Sub Total 40.2 0.61

RUKWA Mpa-Karanw uana 7.0 0.11Cba&Nwuw1CKili Cba~ 17.0 0.26 NORADlAelaMwiw"i!2mm CKaen 16.0 0.24

Sub Toal- 40.0 0.61MOROGORO Momoro-Kisaki Ruvu 56.6 0.25 SDC

RU\JvMA KICi-LituIi N&ina 25,0 0.39Ki*m-Mbaa Mbatil 10.0 0.15 EECM basabay. ,,i Liwoa 501 0.08

Sub Total 400 0.62

TANGA Sakfra-Mkwaja Kwakiwara 5.0 0.08Sara-Mkwaja MuagZi 14.0 0.21KwaimkoroAmani Kwamkoo(lI) 7.0 0.11Magamb-Shum Grwal 4.0 0.06 NORADZmi-Lungua MAngo 6.0 0.09Magamba-Malbwi Kwai 4.0 0.06

______________ SubTal T. 400 0.61 _ IV

0B

%.n0

75 ANNEX 5-3Page 9 of 12

I

|-m

-m -X

ati lit

TANZANIASecod l _tegaed Road ProjetUfunded Roral Road Bridg

REGION ROAD NAM1 RDGE NAME SPAN COST

D'SALAAM ftp.Kinwui Iev. 1. 0.23Kibmube44agwmpiFi Kibwegu 10.0 0.15

E.JclmbuI4'anbmuaazi Kimbsma !15.0 0.23

Sub Tab! _ =__ 40.0 0.61KAGERA K#j&ulm-hB n Iuma 11.0 0.18

KI Kyah lb 113.0 0.20Kmiaw Klebe 25 038

Sub Todd _ _ _ 15.0 0.76MTWARA Mmak&4NmW*u Mgk 1X2 17.0 0.26

Mpqm*.KiImv lnbeW.M66 10.0 0.15MUi,-?NdUe! Miytyu 7.0 0.11Ner_hUAtwa Nmyamba 3.0 0.12N_ ___ Naguw__ _ ___ _.0 0.12

_ Sub'7 ->t _ _ ___ 50.0 0.6

KIaLMNJARO Ki;-siuid-Kicbw da8 Ng.ube IKRam 20.0 0.30Kihu.KivhhCidau dis NgNmne Mw,o t1O.0 0.15MarAa.N_w Patrai 10.0 0.15

SbT_ _ ___ 40.0 _ _0_

TOTALS 280. 2.73

o wOI

TANZANIASecond Intbred Roads Project

Unfunded (erv) Rura Roads Progrm

REGION ROAD NAME LENGI PACKAGE PROPOSED ECNOMIC W6T STARTOno No. WORKS INDEX _ (Uss men) DATE

DAR ES SALAAM 1) TabDa-r 3 P 14 1 DFR 372 0.28 1994952)Kvws.Ob*-Mbad 17 1 DFR 166 034 19941953) LMuauni. X_wubesKw 19 I DFR 46 0.38 199495Sub ToW Der es Sm 50so 1.00

DAR ESSALAM 3) Tab-Knamipup 12 1 R_ 582 0.24 19971982) Cawe,06ba.Mbez S I RR 116 0.16 199193) L1g _ -i-Kwab-K w 42 2 RRR 72 04 19712

SubTlal TdTd DarSam 62 1.24

KAGRA 1) BWob&-Ny&kat 10 1 DFR 14 0.20 199672) K4di&gn&BDymg* 23 1 DFR 13 0.46 199697.3) katwIcyayabus 12 2 DFR 5 0.24 199674) K a_b Rubpa Hospia 4 2 DFR 12 0.08 1996197 s5) KatoX -Kad_Rd 10 2 DFR 5 0.28 1996197 '4

Sub Toal Total Kaga 59 1.26

K_JMANJARO I) moga ni-mma vote 9 1 DFR 17 0.18 1951962) Msdot-LowURombo 9 I DFR 16 0.18 M995(963) LawaIklad,tadLku 8 I DFR 16 0.16 1995(964) Kkwaai.sni kwa Kindi 10 I DFR I5 0.20 19951965) Motram-Boamb 14 1 DFR 13 0.28 1995196Sub Toed Kiimaqo 1.00

KAGE_ 1) lCoko-Nyazn*m s0 I PMB 10 0.80 1399596

.~ ~ ~~ a

s0 0.80SubTu al Ka

KIUMAWJARO 1) A ob e-anp Jim 4Avud 26 1 PMB 390 0.42 1995962) KWaro MIC Toob- Madms 16 2 PMB 145 0.26 t996973) Mar. uKn - ps 6 1 PMB 25 0.10 199S964) ModbiT.P.C. (Pau) t8 I PMB 42 0.J81 951965) Lmbo-KCikwmI 5 2 PMB 48 0.08 1996197 Sub Teed 1Cilimtj ro 71 1.14 *

o lw

78 ANNEX 5-3

Page 12 of 12

I 1 ---Jiv__ g

_ I e

_F}02 .C

i iiIi A,I

Vi I R

TANZAAINTEGRATED ROADS n PROJECr

DeWdCu

Brakdown oTotalas had CanL

BassCost Towas knbdlna Cant1nMaci For~ (Eel Duties

1995 1996 1997 1998 1999 2000 2001 Totd 1995 1996 1997 199I 1999 2000 2001 Total Exda. Taxe) Taxes Tot

L 1w>oCodsA. MAO As0s.m 0.4 0.4 0 0.4 - - 1.5 OA 0. A 0.4 OA - 1.6 1.5 0.1 0.0 1.6

D. Co" midals LaboIlOyEqu;n_t 0.4 0S 0.1 0.1 0.1 - - 1.2 0A 0.5 0.1 0.1 0.1 13 13 0.1 1.3

C. Road Soft itE9uhim 0.1 0.2 0.0 0.0 0.0 - - 0.5 0.2 0.2 0.1 0.1 0.1 - O .OS 0.0 05

Clvi Wdaf 03 . . . . 03 03 , , , , , 03 03 0.0 0.0 03

Ebgin OA 0.0 00 * 0.0 0.0 0.0 * * * * 0 0.0 0.0 0.0

SR=u*im 0.0 00 - - 0.0 0.0 0. - -- . 0.0 0.0 0.0

S y* R IeUyt sdt 0.5 0.2 0.0 0.0 0.0 - 0.1 05 0.2 0.1 0.1 0.1 . 09 0. 0.1 0.0 0.9

low ~~~~1.2 1.1 .0.5 0.5 0.2 - - 3.6 1.3 1.2 0.6 0.6 0.2 3.8 3.5 0.3 0.0 3.8

X)NOL. M*&W

Ufl

0IN

80 ANEX54Pige 2 of 23

i 1 .0 .oo e. . .o *oo. .

ee...e .. ..ee o . .e .. o.....

fil a'' . .!C ... * . .....

F ~ ~ ~ 0 ,, ,0:e_ _,_ , , ;.00 O dd e, -_

3I . q333o *1-~ w.ev 2 -i. - o ,..i _, -.-- c _ * | ss I-| *@d @@d -°~ @00 doe3oooq-,eo

ti ~ ~~ ~ ~~ a s ai a a; o a o o _ _ o. o. e a °e at o o a: a ° a a ° ° qe

~~~~~a *$ ea ° aq a o. a. a 3 3 o o 3 o o a °° 3 o a° e oa 3 e °o a a

8}3~~~~~-0 0 - -... 0 0 - @0 . .

~~~~~~~~~~~~~*aiX a a. a a a . 0 0 00 0ii gJ a | ** ' doo@oc@ 3 0 ,,o3't t'3,Sf]1 e 30o o .a 3 'io.Ct *<; °* 3* g

| l i * * o 3 °o t 3 e. v o0oei o-i.r -o 363eo@o.,a|~ ~ ~ 0 -o@ o o03 o000 3 dd eeoo eooo o oeo°6e

2 ~ ~ ~ . ; § __e o etO. o~ ' o0 eo0ooo 0C 4

a~qaa~ o~qq~- .. o* *1 9* .00*c oo.l

000 001§}000 0000 000 @00000 . dd@@ |

. T TT 9.@I*~f aC@at T TT

TANZANIAINTEGRATED ROADS I PROJECT

Tabk 3 - Co _urion ldustry DvelopmentDetaUed Costs(USS Mil)

Breakd ot Totals lad. Cont

Base cost Totadl ludlg Coutluences For. (EId. uts &19 1996 1997 1998 1999 2000 2001 Totl 1995 1996 17 1998 1999 2000 2001 Total`Exb ames Taes Tota

L bwant CostsA. TechnIed Asistance

TiumingAdvisas 0.1 0.1 - - - - 0.2 0.1 0.1 v 0.3 0.2 0.0 - 0.3ShawtTamExpats 0.0 0.0 0.1 0.0 - - - 0.2 0.0 0.0 0.1 0.0 - - 0.2 0.2 0.0 0.2CGstructoTu3ars 0.3 0.4 0.4 0.4 - - 1.6 - 0.4 0.4 0.5 0.5 1.7 1.5 0.3 - 1.7

Sbtotal Tecboical Assists 0.1 0.5 0.5 0.4 0.4 - 2.0 0.1 0.5 0.5 0.5 - - 2.2 1.8 0.3 - 2.2a. Tnaning

TranigforrNCC 0.0 0.1 0.0 . - 0.1 - 0.0 0.1 0.0 - - - 0.1 0.1 0.0 - 0.1Wothops andScminw 0.0 0.0 0.0 0.0 - - - 0.1 0.0 0.0 0.0 0.0 - - - 0.1 - 0.1 - 0.1 XStudies 0.1 0.1 0.1 - - 0.2 - 0.1 0.1 0.1 - - - 0.2 0.1 0.1 - 0.2

Subtotal Tmining 0.0 0.1 0.1 0.1 - - 0.4 0.0 0.1 0.2 0.1 - - 0.4 0.2 0.2 . 0.4C. Equipment

TranEquipment - 0.2 0.1 - - - 0.4O 0.3 0.1 - - - OA OA 0.0 0.4OfficeEquixm-t 0.2 - - - - - 0.2 - 0.2 - - - - 0.2 0.2 0.0 - 0Vehicks . - - 0.1 - - - 0.1 - - 0.1 - - 0.1 0.1 0.0 - 0.1

Subtotal Equipment - 0.4 0.1 0.1 - - 3 0.6 - 0.4 0.1. 01 - - 0.7 0.7 0.0 0.7Total 0.2 1.0 0.7 0.6 0.4A 3.0 0.2 1.1 0.8 0.7 0.5 - 3.3 2.7 0.6 - 3.3

DONOR: IDA

"I .I

N

INTEGRATED ROADS U PROJECTTable 4 - Improvhg M ageent of Road Trnsport Compane

Detalled Costs(USS Monw)

Bmedown of Totas fueL Cont

Base Cost Totals Includin Contingencies For. (cL uti &1995 1996 1997 1998 1999 2000 2001 Total 1995 1996 1997 1998 1999 2000 2001 Total xzcb. Taxes) Tase Total

L Invesment CostsA. TenicalAssistnc 0.1 0.1 0.1 0.1 - 0.4 0.1 0.1 0.1 0.1 - - - OA 0.4 0.0 .OA

Tota 0.1 0.1 0.1 0.1 - - 0.4 0.1 0.1 0.1 0.1 - - - 0.4 0. 0.0 OA

DONOR: IDAINTEGRATED ROADS U PROJECT

Table S - lmprovng Maa men of Clvi AviationDetai Cots(USS Millon)

BasCost Totals Includi Contingencdes For. (Excl Dutes &195 19 1m 1998 1999 2000 2001 Total 1995 1996 1997 19 19 2000 2001 Total Ezch. Taxe) Tate Total

L Iwestment CostsA. TeomicalAssistlamc 0 0.2042 0 0 0 0 0 0.204 0 0.2173 0 0 0 0 0 0.2173 0.1956 0.0217 0 0.2173a Study 0.26 0 0 0 0 0 0 0.25 0.264 0 0 0 0 0 0 0.2643 0.2378 0.0264 0 0.2643

Totd 0.26 02042 0 0 0 0 0 OA59 0264 0.2173 0 0 0 0 0 0.4816 0.4334 0.0482 0 OA816

DONOR. IDA

INTEGRATED ROADS I PROJECTTable 6 - Sector Policies and Interim Projects

DeaWd Cosb(USS MilUo)

Bae Cost Totals Ilnduding Contnigencks For. (d Duties &1995 1996 199 1999 2000 2001 Total 1995 1996 1997 1998 1999 2000 2001 Total Eich. Taxes) Tate Total

L bwestment CostA. FeasibflitStdy _ ,0 0.5105 0.51 0 0 0 0 1.021 0 O.S705 0.S9 0 0 0 0 1.1S69 1.0412 0.1157 0 1.1569

Total 0 0.5105 0.51 0 0 0 0 1.021 0 O.S705 0.59 0 0 0 0 1.1569 1.0412 0.1157 0 1.1S69 ,=

DONOR. IDA

o I

TANZANIAINTEGRATED ROADS H PROJECT

Table 7 - Dar es Salam-[landiziDetaild Cost(USS Mille)

B rmkdewn of Toals IncL Coot

Be Cst Tobtls h CoD S For. (EzcL Ddes &1595 1996I 1997iS 1959 2000 2001 Totdl 1995 1956 199 1993 1999 200 2001 Tota lic. ams Tams Total

L Invstmt CostsA. aCI weit

Co _skuctica - 7.9 6.3 1.6 - - - 15.8 - 9.2 7.5 1.9 - - - 18.6 14.9 2.3 1.4 186EMinewi Deu* 0.4 OA - 0.8 OA 0.5 . . 0.9 0.7 0.1 0.1 0.9Swvisian - 0.4 0.3 0.1 - . - 0.8 - 0.4 OA 0.1 - 1.0 0.8 0.1 0.1 1.0

Tota A 8.7 6.6 1.7 - 17A 0.4 10.1 7.9 2.0 20.5 16A 2.6 1.5 20.5

DONOR: ADkan Deviopment Bank

TANZANIAINTEGRATED ROADS 1 PROJECT

Table 8 - Challm-eMdelela Deiled Cost(USS Milio)

Breakdown of ToaLs lacl Coot

Base Cost Totals Includle Cotlgendes For. (id Duties &1995 19961997 1998 199 2000 2001 Total 199599 1997I 1998 1999 2000 2001 Total lsck. Taz. Tame Total

L lnvestm..t CostA. CIVi Wors

CoasUclo 0.0 0.0 0.0 10.5 10.5 5.3 0.0 26.3 0.0 0.0 0.0 12.8 13.2 6.7 0.0 32.8 26.2 4.1 2.5 32.8Engining Desig 0.7 0.7 0.0 0.0 0.0 0.0 0.0 1.3 0.7 0.8 0.0 0.0 0.0 0.0 0.0 1.5 1.2 0.2 0.1 1.5Supcnn 0.0 0.0 0.0 0.6 0.6 0.3 0.0 1.A 0.0 0.0 0.0 0.7 0.7 0.4 0.0 1.7 1.A 0.2 0.1 1.7

Total 0.7 0.7 0.0 11.1 11.1 5.6 0.0 29.0 0.7 0.8 0.0 13.5 13.9 7.1 0.0 36.0 28.8 4.5 2.7 36.0

DONOR: African Developmnet Bank

0 1t')

TANZANIAINTEGRATED ROADS H PROJECT

Table 9 - Mimba-kirp-lpgrwaDetailed Costs(USS Mio)

Breakdown of Totas bid CoaL

Base Cost Totas InludingConutgendes For. (EzcL Duties &199S 1996 1997 1998 1999 2000 2001 Total 199S 1996 1997 199 1999 2000 2001 Total Rich. Taxes) Taxe Totd

L Iwestment CostA.Cvil Work

Consruction - 0.0 6.5 6.5 3.3 - 16.3 0.0 0.0 7.8 8.0 4.1 19.8 15.9 3.5 0.5 19.8Esgineer Design 0.4 OA - - - - 0.8 0.5 0.5 - * * 0.9 0.7 0.2 0.0 0.9Supevision 0.3 0.3 0.2 - - - - 0.9 OA 0.4 0.2 - - 1.0 0.8 0.2 0.0 1.0

Tdal 0.7 0.7 6.7 6.5 3.3 - . 18.0 0.9 0.9 8.0 8.0 4.1 - 21.8 17.4 3.8 0.5 21.8

DONOR NORAD

TANZANIAINTEGRATED ROADS U PROJECT 0>

Table 10 - Mahenge-laula >

Detaled Costs(USS Million)

Breakdown of Totals IncL Cout.

Base Cost Totals Inluding Coutineedes For. (ExcL Dutes &1995 1996 1997 1996 1999 2000 2001 Total 199 199 1997 199 1999 2000 2001 Totl Exch Taxes) Taxes Total

L Investment CostsA. ChU Wos

Consbauction - - 1.2 2.8 - - 4.0 - - 1A 3A - - - 4.8 3.9 0.6 OA 4.8EnginringDesign 0.1 0.1 - - - - - 0.2 0.1 0.1 - - - - 0.2 0.2 0.0 0.0 0.2Suprvisio 0.0 0.1 0.1 - - 0.2 - - 0.1 0.2 - - 0.3 0.2 0.0 0.0 0.3

Tota 0.1 0.1 1.3 2.9 4A 0.1 0.1 1.5 3.6 5.3 42 0.7 0.4 5.3

DONOR: Afrlcan Development Bank

0 '

o0I

TANZANIAINTEGRATED ROADS n PROJECT

Table 11- Dodoma-MawyoulDetaied Cost(USS Million)

Breakdown of Totals IncL Cent

_Bse Cost Totals Il Cntlaeuus For. (Ed. DuOtes o19 1996 IM 199f 1999 2000 2001 Total 199S 1996 I997 1996 1999 2000 2001 Totl Exc& Taes) Tas Totl

L Iwes_nt CostA. Civl Works

Cmniclion - 7.4 14.9 14.9 - - . 372 - 8.6 17.7 18.2 - - - 44.6 35.6 5.6 3.3 44.6Supvision - 0.4 0.7 0.7 - - 1.9 . OA 0.9 0.9 , - - 2.2 1.8 0.3 0.3 2.2

otad - 7.8 1S.6 1A6 - - 39.0 - 9.1 18.6 19.1 . - - 46.8 37.4 S.8 3.5 46.8

-ONOk. EEC

TANZANIAINTEGRATED ROADS H PROJECT 00

Table 12 - Manyoni-SigidaDetaied Costs(USS Miliou)

Breakdown of Totals lcL Coat

Base cost Totals Includilr Cotlances For. (ExcL Duties &I99 1996 1997 1999 2000 2001 Total 199S 1996 1 1998 19992000 2001 Total ltxdh Tam) Taxes Totd

L lvestment CostsA. CIvll Wors

( - 8.2 16A 16A - - . 41.1 - 9.6 19.6 20.1 - - 49.2 39A 8.6 1.2 49.2sulww'uion - 0.4 0.8 0.8 . . - 2.1 - 0.5 1.0 1.0 - - 2.S 2.0 0.4 0.! 2.5

robl . 8.6 17.2 17.2 - - - 43.1 - 10.0 20.6 21.1 - - 51.7 41.3 9.0 1.3 51.7

DONOR EEC

wA

TANZANMAIN1WGRATED ROADS 11 PROJECT

Tablk 13- SogIda-ShbeulDetaed Cost(USSl Know)

( IoTo"be)d ,n

Ban Cost Totals adadlueg Clodgedes For. (54 Daft 1M99 6 1997 1998 1999 2000 2001 Total 199S 1996 1m9 2000 21 Told IzdL Tins) Tas Totdl

L nvsslusuCostA. CiWork

Caluti - - 7.4 4.9 - 1 -12.2 U - 8.8 6.0 - -1 4.7 11 1.8 1.1 14.7Supeswiuion - 0.4 0.2 - - - 0.6 - 0.4 0.3 - - 0.7 0.6 0.1 .1 0.7

* 7.7 5.1 - * 12.8 - - 9.2 6.3 - - IS.S 12.4 1.9 1.2 15

DONOR IDA

TANZANIAINTEGRATED ROADS H PROJECT

Table 14 - SduINzegalNPetlDed Co(USS MAlRlo)

Breakdon ToTabb bld CoaL

Bae Cost Totabls dudbg Contaeudts For. (Ric e des&199s 1996 199 1998 1999 2001 Total 199S 1996 IM 998 19 2000 2001 Totl Ric Tun) Tun Totl

L awestme.t CostA. CivWorsb

Cons_u-ion 6.2 10.9 14.0 31.2 - . 7.4 13.3 17.6 . - 38.3 30.7 4.8 2.9 383Supvisio 0.3 0.5 0.7 - - 1.6 - - OA 0.7 0.9 - 1.9 1.5 02 0.1 1.9

Toal - - 6.5 11.5 14.7 . . 32.7 - . 7.8 14.0 18.4 - * 40.3 32.2 .O 3.0 40.3 ts

DONOR.- AMes Dllop_met Bak

0 1

TANZANAINTEGRATED ROADS U PROJECT

Table 15 - Nzega-ShIayangapTMnde-IsakaDetailed Costs(USS Million)

Bfrkdowm of Totas ld Coat.

Base Cost Totals Including Contingencies For. (lIcd utles &1995 1996 1997 1M 1999 2000 2001 Total 1995 196 1997 1999 1999 2000 2001 Totda EdiL Tgesa Tam Total

L I*avestiae,g CabtA. Civll Wed

Construlis a 12.6 12.6 6.3 - - 31.6 - 14.7 15.1 7,7 - - - 37.5 30.0 6.6 0.9 37.5Supervisio - 0.6 0.6 0.3 - - - 1.6 - 0.7 0.8 0.4 - - - 1.9 1.5 u.3 0.0 1.9

Total - 13.3 13.3 6.6 - - 33.2 - 15.4 15.8 8.1 - - - 39.3 31.5 6.9 1.0 39.3

DONOR: EBE

TANZANUIINTEGRATED ROADS n PROJECT co4

Table 16 - ShlnyangapSbnyaap BorderDetailed Costs(USS Milion)

Breakdown of Totals Inld Coot.

Base Cost Totals Including Contingenies For. (lide tits &199S 199 1997 198 199 2000 2001 Total 1995 1996 1997 1998 1999 2000 2001 Total lidL. Taxes) Taxes Total

L Investet CostsA. Civi Works

Constuction . - 3.9 7.7 7.7 - - 19A - 4.6 9.5 9.7 - 23.8 19.0 4.2 0.6 23.8Supvision - - - 0.2 0.4 OA. 1.0 - - _ 02 0.5 0.5 - 1.0 1.0 0.2 1.0 1.2

Toal W - 3.9 7.9 8.1 8.6 - 20.3 - - 4.6 9.7 10.2 0.5 25.0 20.0 4.4 0.6 25.0

DONOR: RIC

0I ILA. ;

o Nw

TANZANIAVITEGRATED ROADS UPROJECT

Table 17. Shh"Wsaa D.rdor.Magog RiverDO6U.d Costa(UJSS MieUM)

tacdBm cast Toals lncdlu Coehusd For. (EoL Dutk&

199 1996 199 195 1999 2000 201Ttl 19 1996 1997 199 1999 200 200 Trotal aL Taxe) Tax's TotalL lawestau CoAsbA.C1wilWeils

Coaesnktoh 7.1 4.7 III- - 1. 8.0 5.5 - - - 133 10.8 1.7 1.0 135Supavis.em 0.4 0.2 OA - - . 0C4 0.3 - - - 0.? OS5 0.1 0.1 0.7

TOWa 4 50 12. 4 SA .8 - - 14.211 I 1.8I 1.1 14.7i

DONOR- ObA

TANZUANI1INTEGRATED ROADS II PROJECT

Table tS8- flukbab-MuktbaDetasle Cults as(¶JSS MUMe) c

Dre&own ofTotals 1nA Casag

3mw Cast Total 1ndudln Castlgede Far. (Exd. Dutle&1995 199 199 1998 1999 200 2001 Tota 1995 1996 1997 1996 1999 200 2001 Total Exeb Taxes) Taxes Total

L Ihweslamu CostaA. CKvlWorks

Consrumtion 10.3 7.7 7.7 25.7 - 12.2 94 9.6 - 31.3 25.0 3.9 2.3 31.3Supervisi O .5 0.4 0.4 1 13 -0.6 0.5 0.5 * 1.6 1.3 0.2 0.1 1.6

Tooal - 0.8 8I 8.3 27.0 - 12.9 9.9 30.1 - 32.9 263 4.3 2.5 32.9

DONORz AMcam Dewlopmeu Dank

0 0'

TANZANIAINTEGRATED ROADS I PROJECT

Tabb 19 - RuWJ River CrossingDetaed Cos(USS Mino)

Breakdown of Totabs hnn OAu

Base Ct Total For. (EsxL Ddes &1995 1996 1997 1998 1999 2000 2001 Total 1995 1996 1997 1998 1999 2000 2001 Tota Etl Taxs Txs Total

L Jsrstmnt CostsA. CMI Works

Coa*ucion 2.0 5.1 5.1 - - - 12.3 2.3 6.1 6.3 - - - 14.7 11.7 1.A 1.1 14.7Superiion 0.1 0.2 0.2 - - 0.6 - 0.1 0.3 0.3 - - - 0.7 0.6 0.1 0.1 0.7Enguieeiing 0.5 0.2 - - - - 0.6 0.5 0.2 - - - - - 0O7 0.6 0.1 0.1 0.7

Total 0.S 2.2 SA SA - - - 13.5 O.5 2.6 64 6.6 - - - 16.1 12.9 20 1. 16.1

IONOR: KUWAIT

TANZANUAINTEGRATED ROADS I PROJECT

Table 20 - Masasi-NangombaDetailed Costs(USS Million)

Breakdmlm ffToabls [Rd Cost

BaseCost Totas ldudbakg Coatgedes For. (EidL Dutis &1995 t996 1997 1998 1999 2000 2001 Total 1995 1996 1997 1998 1999 2000 2001 Toal ExcL Taxes) Taxes Total

L lavestment CostsA. Civil Works

Consuction 2.0 1.7 - - - - 3.7 - 2.3 2.0 - - - - 4.3 32 0.8 0.3 4.3Supemsion - 0.1 0.1 - - - - 0.2 - 0.1 0.1 - - 0.2 02 0.0 0.0 0.2

Total 2.1 1.7 - - - - 3.9 - 2A 2.1 - - - 4.5 3A 0.8 0.3 4.5

DONOR IDA

so .z

ot .Fb

TANZANIAINTEGRATD ROADS II PROJECT

Table 21- Nagomba.NaustumboDetaiUed Cta(S$ MNO")

Bmkdowu . Tobtalb [a CoL

Base Cost Tobtls hlig Con d For. (BidL Dudes &1 199C 19 9 1998 199 2000 2001 Total 1995 19% 1997 1998 1999 2000 2001 Tota i Eds. Ts) Tom Tota

L Iweabent v stA. Ch4Vorks

Cosruction . 1.0 1.5 2.1 - 4.6 - 1.2 1.8 2.5 - - - 5.5 4.1 1.0 OA 5.SSupsision - 0.0 0.1 0.1 - 0.2 0.1 0.1 0.1 - - 0.3 0.2 0.0 0.0 03

Total * 1.1 1.6 22 - - 4.8 1.2 1.9 2.6 - - 5.8 44 1.0 0.4 S.8

DONOls iDA

TANZANIAINTEGRATED ROADS 1 PROJECT

Table 22 - NamtuwnboSongeaDetalted Costs(1)SS 1 i lon) °

Breakdown of Totals Ined CLLocal

Base Cost Totals Incuddie Contingeneks For. (ExcL Dutes &1995 1996 1997 1998 1999 2000 2001 Total 1995 1996 1997 1996 1999 2000 2001 Toal Exds, Taxes) Taes Tobt

1. Investment CostsA. Civil Works

Construction 2.0 3.1 - - - 5.1 23 3.6 - - - - 5.9 4A 1.0 OA 5.9Supernision 0.1 0.2 0.3 0.1 0.2 03 02 0.1 0.0 03

Total 2.1 3.2 . A- 5 24 3.8 6.3 4.6 1.1 0.5 6.2

DONOR: IDA

0 .0

LAi

I>

TANZANIAINTEGRATED ROADS 1 PROJIECT

Table 23 - Swmbawanga-MpandaDetaled Cosb(USS Mollos)

Bmckown ofTotals Id Cet

Base Cost Totab Inchading Congtbcies For. (ExcL Duties &1995 1996 1997 1998 1999 2 200 2001 Total 195 1996 1997 1998 1999 2000 2001 TOta Exch Taxes) Tam Total

L Intesta CosbA. OWl Works

Co _struction - 1.2 2.0 1.7 . . 4.9 1.4 2A 2.1 - 5.8 4A 1.0 OR 5.8En8ineerin Design 0.2 02- - 0 0.3 , - - - * 0.3 0.2 - - 03Superion - 0.1 0.1 0.1 - 0.3 - 0.1 0.1 0.1 - - -0.3 02 0.1 - 03

Totd 02 1.3 2.1 1.8 - - - A 0.3 1.5 2.5 2.2 - - 6.4 4.8 1.1 0.5 6.4

DONOR: IDA

T*t,NZANIAINTEGRATED ROADS I PROJECT

Table 24 - IUgoua-KCasuluDetailed Costs(USS Milion)

Breakdown of Totls Ind Coat1.4al

Bas cost Totals Induding Co encies For. (ExzL Dudes &199 199 997 1998 1999 2000 2001 Total 1995 1996 1997 1998 1999 2000 2001 Total Ech. Taxes) Tases Total

L Iwestmut CostaA. CNN Works

Constuio - - 3.1 0.3 - 3A - . 3.7 OA - - 4.0 3.0 0.7 0.3 4.1Enurinc g nesign 0.2 - - - - - 0.2 0.2 - . - - - . 0.2 0.1 - 0.2SuperAsion 0.0 0.1 - - - 0.2 0.0 - 0.2 - - .0.2 02 - - 0.2

Tobl 0.2 - 3.2 0.3 - 3.7 0.2 - 3.9 OA - - - 4.4 3.3 0.8 0.3 4A

DONOR. IDA

w utI

0 1b

TANZANLAINTEGRATED ROADS I PROJECT

Table 25 - Kasulu-NyakauasiDetaUed Costb4USS Miion)

Rewakdown eoTotal h1id. CoaeL

Base Cost Totl Jadu dh ontmdes For. (L Dutie &1995 1996 1997 199 1999 2000 2001 Tbl 199 1996 1997 1990 1999 200 2001 Total RIC Tsies Tazxs Tota

L JaWs CosbA. Qwivl Works

Camouctioea - - - 2.1 1.2 1.0 - 4.3 - 2 -2. S .S 13 5.440 0.9 OA 5.3Eniamig Desigp 0.2 - - - - - 0.2 0.2 .- - - 02 02 0.0 0.0 0.2SpeVsM - . 0.1 0.1 0.1 - 0.2 - 0. 0.1 0.1 - 0.3 0.2 0.0 0.0 0.3

TOWa 0.2 - 2.2 1.3 1.1 - 4.7 0.2 2.6 1.6 IA 5.9 4A 1.0 0.4 5.9

DONOR: ImA

TANZAN!A N

INTEGRATED ROADS 11 PROJECTTable 26- Mskuyunl-Ngorongoro

DetIled Cosb(US$ Million)

Breakdown of Total bi Coat

Bas Cost Totals ndu Continondes - For. (Rxd. Duties &L 1995 199 1997 1992 1999 2000 2001 Toital 1995 1996 1997 1998 1999 2000 2001 Totl ERch. Taesl Tases Tohtl

1 bwetwt otA. CbID Works

Construction - - 4.9 12.9 12.9 - . 30.6 S- 5. 15.7 16.1 - - 37.6 30.1 4.7 2.0 37.6Engineg Desigp 0.8 0.8 - - - - - 3.5 0.9 0.9 - - * - 1.8 IA 0.2 0.1 3.8Supvson - 0.3 0.6 0.6 1.6 . OA 0.8 0.8 - - 2.0 1.6 02 0.1 1.9

Totl 0.8 0.8 52 13.5 13.5 - - 33.7 0.9 0.9 6.2 16.5 16.9 - - 41.3 33.1 5.2 3.1 41.3

DONOR: OPEC

olN

TANZANUINTEGRATED ROADS H PROJECT

Table 27 - dpauda-ilymugaDetiled Costs(Liss Milion)

Breakdown of Totals IneL CotLocal

Bas Cost Totals Idchudhv Contlcmdes For. (EAd. Dudes &1995 I99 1997 1998 1999 2000 2001 Total 399 1996 1997 1998 l999 2000 2001 Total Exch. Taxe Taxes Total

L hnestnet CosbA. CMv Works

conactin 1 - .0 IA. - 2A - 1.2 1.7 - - 3.0 2.2 0.5 0.2 3.0EnpiaecnngDesip 0.Ql 0.* 0.1 , , , , 0.1 0.1 0.0 0.0 0.1Supivision _ 0.1 0.1 - 0.1 0.1 0.1 0.2 0.1 0.0 0.0 0.2

Total 0.1 - 1.1 1.5 - - - 2.7 0.1 - 13 1.8 - - 3.3 2.4 0.6 02 3.3

MNORM IDA

TANZNIAINTEGRATED ROADS II PROJECT

Table 28 - Inyonga-lpoleDetailed Costs(USS MUllon)

Breakdown of Totals EncL Cent.Local

Base Cost Totals Includ1n, Contingences For. (ExcL Dutdes &199 1996 1997 198 1999 2000 2001 Total 3995 1996 1997 1998 1999 2000 2001Tfo-ta-l Exci.. Taxes) Taxes Total

L Investment CostsA. Civ Works

Consteuction . 1.6 1.1 - - 2.7 0.0 - 39 1.3 - 3.2 2A 0.6 0.2 3.2Engineering Dsign 0.1 * * * * * - 0.1 0.2 * * 0.2 0.1 0.0 0.0 0.2Supervision - 0.1 0.1 - - - 0.1 - 0.1 0.1 - - - 0.2 0.1 0.0 0.0 0.2

Total 0.1 - 1.7 1.1 - 2.9 0.2 - 2.0 1.4 -A - 3.5 2.7 0.6 0.3 3.5

DONOR: IDA Q

I.n4-

TANZANUINTEGRATED ROADS n PROJECT

Table 29 - Ipolk - TaboraDetaed Cost(UJS$ Nloun)

Breakorwn ofTetab IndL Cent

Basn cost Totals Indudbig Coadnetendes For. (Ezi Dus &1995 1996 1997 19 99 2000 2001 Toeal 19 199C 1997 19 199 2000 2001 Total Elx Taxes) Taxes Tota

L Inveineen CoMstA. CH, Works

Coonstucti 1.0 2.1 - . - 3.1 - 1.2 2.4 - -3.6 2.7 0. 0.3 3.6EninecwinngDosi 0.2 - ' ' - 02 0.2 - - - - - 0.2 0.1 0.0 0.0 0.2Supmeison 0.1 - - - 0.2 0.1 0.1 - - P.2 0.1 0.0 0.0 0.2

TddmI 02 1.1 2.1 - 34 0.2 1.2 2.6 - 4.0 3.0 0.7 0.3 4.0

DON0 IDA

TANZANl INTECRATED ROADS 11 PROJECT

Table 30 - Tabora - NzegaDetiled Cosh(USS Millon)

eBmkdown of To"a InL Cont.

Base Cost Totab _ncuW1nr Cantineendes For. (ExCL Duties &1995 1996 1 191996 lC9 2000 2001 Total 1995 1996 1M 1996 1999 2000 2001 Total Exch TazXe Tases Total

L Invsment CostA. ChO Works

Constuction 2.1 1.0 - - - 3.1 2.3 12 - - 3.5 2.6 0.6 0.3 3.5Engineenag Design 0.2 - - - 0.2 0.2 - - - - - 0.2 0.1 0.0 0.0 0.2Supeision 0.1 0.0 02 0.1 0.1 - 0.2 0.1 0.0 0.0 0.2

Total 2.3 1.1 . -3.4 2.6 1.2 - 3.9 2.9 0.7 0.3 3.9

ONMR IDA

0 *-

MIeQ

95 ANNEX 5-4t ;§ p ~~~~~~~~~~~Page 17 of 23

1- -

~ P

U cn

a-

I

S..

X

ii!

TANZANIAINGRATED ROADS U PROJECT

Table 32 - Package I (Southeas Zne-Emergency)Debtled Coats(US$ MUIl)

Breakdown l Tobtls IeL CatLocal

Base Cost Totals htdi Cnnndes For. (Bal Daies &1995 1996 1997 199S 1999 2000 2001 Total 199S 1996 1997 1996 i999 2000 2001 Totd EadaL Tses) Taes Totad

L bwvat,e CostsA. v4 WorksConrsuctioo 5.9 6A 12A 6.8 7.5 - 143 10.7 2.S 1.1 143Supcraision 0.2 0.2 - - - - 0.5 0.3 03 - - - 0.6 0.4 0.1 0.0 0.6

Total 6.2 6.7 - - - - 12.8 7.0 7.8 - 14.8 11.1 2.6 1.1 14.8

TANZANSINTEGRATED ROADS 11 PROJECT

Table 33. Padcge n (Centre - Nortb Zne)Dealled Costs(USS M_O)

OBrekdown oTotas Int. CatLocal

Rase Cost Totsis Including Contingences For. (Excl Duties & 0

1995 1996 1997 199 1999 2000 2001 Total 199S 1996 1997 1998 1999 2000 2001 Total Exch Tas) Taxes TotdL Investment Costs

A. Civil Works DRConstruction - 4.3 4.3 - - . 8.6 5.0 5.1 - - - 10.1 8.1 13 0.8 10.1Supcnision - D.2 0.2 - - - - 0.4 0.2 0.3 - - - - 0.5 0.4 0.1 0.0 0.5

Total - 4.5 4.5 - - - 9.0 - 5.2 SA - . - - 10.6 8.5 1.3 0.8 10.6

TANZANIAINTEGRATED ROADS II PROJECTTable 34 - Package 111 (Southern Zone)

Deiled Costs(USS MMiln)

Breskdown fTotals IncL ContLocal

Base Cost Totals lndcudd Contingenc For. (Esd owe &1995 1996 1997 1998 1999 2000 2001 Total 19% 1996 1997 1998 1999 2000 2001 Total Etch. Taxes) Taxes Tota

1. Invesftent CostsA. Civil Works

Construction - 0.9 5.3 6 - 6.2 - 1.0 6.5 - - 7.6 5.7 1.3 0.6 7.6 ASuperision 0.1 0. 1 0.1 03 0.1 0.3 0.2 03 0. 0.1 0.0 0.3

Tobal - 0.1 0.9 5.4 - 6.5 0.1 1.1 6.7 - - - 7.9 5.9 1.4 0.6 7.9 t .

a- V

a

TANZANIAINTEGRATED ROADS 11 PROJECr

Table 35 - Paod Bdaclog Ms d_teatDefid Cesb(US$ Muook)

DreakdOrTabb [l COoL

Bam Coo Totak mW Ia adndagtngmdm For (EgA. Duda. &1995 1996 1997 1998 1999 2000 2001 Total 995 1996 1997 1996 t999 2001 2001 Totdl Eufa Tom) Tam Toa

A. Ta_a1. bmnda-ltuag Pet

Conjcos 0.2 0. - - . - 02 0.2 - . - 02 0.2 0.1 0.0 0.2Eaorina Doin 0.0 - - 0.0 0.0 - - - - - 0.0 0.0 0.0 0.0 0.0Supwtsio 0.0 - -0.0 0.0 0.0 0.0 0.0 0.0 0.0

Subtot Mad4-tham1 Pat 0.2 - * 0.2 03 - - - - 03 0.2 0.1 0.0 032. Songwe.Tuaduamm

Cuctioo - 1.0 - - - - - 1.0 . 1.2 1- - .2 0.9 03 0.0 1.2Engineering Duip 0.1 - * 0.1 0.1 - * 0.1 0.0 0.0 0.0 0.1suviercsion 0.1 - - - * - 0.1 0.1 - - - * - - 0.1 0.0 0.0 0.0 0.1

Subtota Soagwe-Tudma 0.1 1.0 - 1.1 0.1 1.2 13 1.0 03 0.0 1.3SubtotaTanam 0.3 1.0 . - -A - 1. 0.4 1.2 - - - 1.6 1.2 0.4 0.0 1.6B. Cenw

1. Ru_mo-RuahunapCometruction 1.8 - 8 . 2.1 . . - - 2.1 1.6 0.5 O.1 2.1EnghwaingDsign 0.1 - - - - 0.1 0.1 - - - - 0.1 0.1 0.0 0.0 O.tSupoavision - 0.1 - - - - - 0.1 0.1 - - - - 0.1 0.1 0.0 0.0 0.1

Subtotal Rusumo-Rusabung 0.1 1.9 - - - - 2.0 0.2 2t1 - .I 23 1.7 0.5 0.1 2.3C. Lke

1. Nyaguge-.MasasCo4ptruction 2.7 1.0 - - - - 3.7 3.1 1.1 - - - - - 4.2 3.2 1.0 0.1 4.2Engineering Desipn 0.2 - * - - - 0.2 0.2 - - 0.2 0.2 0.0 0.0 02Supavision 0.2 02 0.2 0.2 0.2 0.0 0.0 0.2

Subtotal Nyaguge-Masad Z9 t12 - - - - 4.1 3.3 1.3 4 - * . 4.7 3.5 1.0 0.1 4.72. Muleba-Bibamulo

Conruction 1.0 - - . - 1.0 t 1.2 - - - - 1.2 0.9 0.3 1.2EngieeningDDsign 0.1 - 0.1 0.1 -0.1 0.0 0.0 0.0 0.1Supcrvision - 0.1 0.1 - 0.1 0.1 0.0 0.0 0.0 0.1

Subtotdal MulbaBarmulo 0.1 l.1 - - - - - 1.1 0.1 1.2 .- - . 13 1.0 0.3 0.0 1.3Subtotal Lake 3.0 2.2 . . - - - 5.2 3A 2.6 - - . - - 6.0 4.5 1.3 0.1 6.0D. Soabut

1. Mtwara-M=iCmn"ctio - 34 3.4 3.9 -. 3 . 3.9 2.9 0.7 03 3.9Eagineering Design 0.2 - - .2 0.2 0. - - - - 02 0.1 0.0 0.0 0.2SupWtsviO - 0.2 - - - - . 0.2 0.2 - - - - 02 0.1 0.0 0.0 0.2

Subotal MtwUa-MasS 0.2 3.5 - - - - 3.7 0.2 4.1 i - * 4.3 32 0.8 03 4.3

0Q X* l

FL04I-

TANZANAINTEGRATED ROADS 11 PRoECr

Table 35 - Periodic Backlg Ma _lmaeDetmued Cab(USS M_)

Imbd ,mefTetda bd . Cnt.

BSeCod Totak Ladudhft Comthta i Foer (US Duda&1995 1996 1997 1998 1999 2000 2001 Totda 199S 1996 1997 1998 1999 2000 2001 ToW ftkd. Tab Tms Teta

L Sotiwm Caat1. Ul4bfy0

C _utaoa 1.5 - - -. 5 3.7 - - - - - 3.7 13 03 0.1 1.7EtasringDesip 0.1 -0.1 0.3 - .t - .1 0.1 0.0 0 0.1SqWXav 0.1 - - . - 0.t 0.l * - - 0.1 0.1 0.0 4,0 0.3

SubiW .ad7 Ml-goy. 3.7 1.7 1.9 - - - 1.9 1.4 0.3 0.1 1.9F. Grat NaWb

1. MItJIp- BabtC _mA*IQlio Q0.6 - 0.6 0.7 - - - 0.7 05 0.1 0.1 0.7EgirneorinS Desip 0.0 - * 0.0 0.0 . , , 0.0 0.0 0.0 0.0 0.0Supevision 0.0 - - 0.0 0.0 - - - - O - 4.0 0.0 0.0 OD 0.0

Subotal Mbjingu-Babati 0.7 - - - - 0.7 0.6 - - 0.8 0A O.l 0.1 0.82. Babad-Slngia

Conmlaction 1.0 - - - 1.0 1.2 - - - 1.2 0.9 0.2 0.1 1.2Eng_MeringDcip 0.1 . * 0.* 0.1 - - * 0.1 0.0 0. D 0.0 0.1Stviaion 0.1 - - - 0.1 - 0.1 - 8.1 0.0 0.0 0.0 0.3

SubkodtBabati-Singiad 0.1 1.1 - - * 1.1 0.1 1.3 * - 3 1.0 0.2 0.1 1.33. Dodoma-Mtera

Coutaction 1.0 - 1.0 * 1.2 * * - 1.2 0.9 0.2 0.1 1.2FnginecritnDcstip 0.1 - * * * * * 0.1 0.1 . - - 0.1 0.0 0.0 0.0 0.1Supervision - 0.1 - - ' 0.1 0.1 ' .1 0.0 0.0 0.0 0.3

SubtotalOdomt-Mtera 0.3 3.3 -. 0.1 1.3 - . 1.3 1.0 0.2 0.Q 134. Miera-lringa

ConsZsitsion - 1.0 - - - - 1.0 * 1.2 - - - - l2 0.9 0.2 0.1 1.2EngincrringDcsin 0.1 - - 0.1 0.1 * * * * * 0.1 0.0 0.0 0.0 0.1Superviion- 0.1 - - - - - 0.) 0.1 - - - 0.1 0.0 0.0 00 0.1

Subtotal tera-Itinga 0.1 1.1 - 1.2 0.1 1.3 - - - 1.3 1.0 0.2 0.1 1.35. Maluyuni-Ngonngogo

comljmtion 1.0 - * - - * 1.0 1.2 * 1.2 0.9 0.2 O.l 1.2Enginecring Design 0.1 * * * * * 0.3 0.1 . . . .0.1 0.0 0O. 0.0 0.1Superviasion - 0.1 - - - - 0.1 0.1 - . . - 0.1 0.0 0.0 0.0 0.1

Subtotal akuyuni-Ngoroagom 1.1 0.1 - . - - - 1.1 1.3 * 1 * - * .3 1.0 0.2 0.1 1.3Subtot Great Nrtb 1.9 3.2 - - - - 5.2 2.2 3.6 - - - - 5.9 4.5 1.0 0.4 5.9G. Dar eSa un t

1. PNgat RoadCoulactios 0.3 . * - - - 0.3 0.4 - - - - 0.4 0.3 0.1 0.0 0.4Enagisaing Desi 0.0 0.0 * * * * * * 0. 0.0 0.0 0.0 0.0S 9avii 0.0 - . - * - 0.0 0.0 - - - . - 0.0 0.0 0.0 O. 0.0 i

Snbttaig upResd 0.4 * - 0- .4 0.4 . - 0.4 0.3 0.1 0.0 8O.4Q2.N_ MNebuo 0ComUw~tion 0.7 - . - . - - 0.7 0.8 . - * 0.3 0.6 0.1 0.1 0.8 X

TANZANIAINTEGRATED ROADS 11 PROJECT

Table 35 Periodc Backlog Ma "nt _nDebd Cos(P85$ Mumio)

lDml owol Totals led Cost

Bae Cot Totabls Indudig Co_t1ngeades For. (EL Duds &1995 1996 1997 1998 1999 2000 2001 Total I1 1996 19 1998 19 200 20 Total Each. TLes) Tas Tot

E4asinedog Desp 0.0 , * * 0.0 0.0 . . . 0.0 0.0 0.0 0.0 0.0SUVision 0.0 . - - 0.0 0.0 - - - - 0.0 0.0 0.0 0.0 0.0

Subbtblsoandela 0.7 .v - - 0.7 0.8 - 0.8 0.6 0.1 0.1 0.8SubtotalDaea SlWm 1.1 - - 1.1 1.3 1- - - - .3 1.0 0.2 0.1 1.3Ht CubN

I. Eqmnt 3.1 - - - - 3.1 3.5 - . 3.5 2.6 0.6 0.3 3.5TOWa 11.3 11.9 - - - - 23.2 12.9 13.8 - - - 26.7 20.0 5.2 1.5 >4.7

'0Q

Dt..

F 4I-Uo i.

TANZNIARNTRATED ROADS 1 PROJECT

Table 36 - District lerel luplmendgtlnAgpcyDetaUed Costs(USS Miion)

14cdBase Cost Totals nckud1ngg22necs For. (Eci1 CdSs

199 1996 19 1998 1998 2000 2wo .Aa1 1996 1997 1998 1999 20 2001 Total Exch Taxes) Taxes TotL Invstmnt CostsA. Loe Project Managent and Adnistratio

TeclulAssistare 0.0 0.1 0.1 0.1 0.0 - - 0.3 0.0 0.1 0.1 0.1 0.0 - . 0.3 0.3 0.0 03A _llwos 0.0 0.0 0.0 O 0.0 - 0.1 0.0 0.0 0.0 0.0 0.0 - 0.1 - 0.1 0.0 0.1Ven 0.0 0.0 0.0 0.0 0.0 - - o 0.0 0.0 0.0 0.0 0.0 - o0.0 0.0 - 0.0 0.0TfaNNtCts 0.0 0.0 0.0 0.0 0,0 - 0.0 0.0 0.0 0.0 0.0 0.0n 0.0 0.0 0.0 0.0 0.0Wulshc 0.0 0.0 0.0 0.0 0.0 - 0.1 0.0 0.0 0.0 0.0 0.0 - 0.1 - 0.1 . 0.1

SubtotdLeadProjetuuentandgAdrWnfsrattimn 0.1 0.1 0.1 0.1 0.1 - 0.5 0.1 0.1 0.1 .1 0.1 - - 0.5 O 0.5 0.0 O.SL. Traspmst * lastrure

Draiaep s8ruab 0.0 0.1 0.1 0.1 0.1 - 03 0.0 0.1 0.1 0.1 0.1 0.3 0.2 0.1 0.0 0.3FeedirRoad Imrment 0.0 0. 0.1 0.1 0.1 - 0.4 0.0 0.1 0.1 0.1 0.1 - D 0A4 02 02 0.0 0.4Pa ond rraoi_ mromnt 0 0.0 0.0 0.0 0.0 -- 02 0.0 0.1 0.1 0.0 0.0 - 0.2 0.1 0.1 0.0 02TIug 0.0 0.0 0.0 0.0 0.0 02 0.0 0.0 0.0 0.0 0.0 - . 02 - 02 0.0 02Allwnc96 0.0 0.0 0.0 0.0 0.0 - - 0.1 0.0 0.0 0.0 0.0 0.0 . 0.1 - 0.1 0.0 0.1

SubtotraTrsportlnrmstruotwre 0.1 0.3 0.3 02 0.2 1.1 0.1 0.3 0.3 .0.3 0.3 1 2 0.5 0.7 0.1 1.2C. tionTransport Infrastructure

PIoNwroN. Trwapot Intervitrn 0.0 0.0 0.0 0.0 0.0 . 02 0.0 0.0 0.0 0.0 0.0 * 0.2 - 02 0.0 02Alowances 0.0 0 0.0 0.0 0.0 . 0.0 0.0 0.0 0.0 0.0 0.0 - 0.0 * 0.0 0.0 0.0

Subtotll NonTrnspot Inrsutu 0.0 0.0 0.0 O 0.0 - . 02 0.0 0.0 0.1 0.1 0.0 * . 02 * 02 0.0 020. ntennedlte Meas of Tganspogt

WmIwhaps and Tranng 0.0 O 0 0.0 0.0 O - 0.1 0.0 0.0 0.0 0.0 0.0 .* 0.1 0.0 0.0 0.0 0.1Aowances 0.0 0.0 0 0.0 0.0 - * 0.0 0.0 0.0 0.0 0.0 0.0 - * 0.0 0.0 0.0 0.0IMT 0.0 0.0 0.0 0.0 - 0.1 0.0 0.0 0.0 0.0 0.0 * 0.1 0.0 0.0 0.0 0.1

Subotal bwterm eamonsm of Traspwt 0.0 0.0 0.0 0.0 0.0 - - 0.2 0.0 0.0 0.0 0.0 0.0 - 02 0.1 0.1 0.0 02.Projec Coordination Office 02 0.2 02 02 - - 0.7 0.2 02 0.2 02 - * - 0.8 0.7 0.1 0.0 0.8

ala A0.4 0.8 0.7 0.0 0.4 - - 28 0.4 0.7 0.7 0.7 0.4 * - 2.9 1.3 1.5 0.1 2.9

orzNprA

N

o .o0-

TANZANINTGRATED ROADS H PROJECT

Table 37 . KiHlmaoar Airport ResurfadrJDetailed Costs(USS bMlion)

Bradml _ f TotTead Joel Co.

DueCod Totalsh ;t1u4iu Cudlnowks For. (EscL Duo &1995 t996 1997 9 299 2000 2001 Total 1995 1996 1997 bt.8 1999 2000 2001 TdSot FxciL Taxeal Tun Totel

L lwvimatw CosbaA. CbllWwb

C_IwSin * 4.1 * .4.1 4.8 v 4.8 4.1 0.5 0.2 4.8B _duhg 0.1 0.1 .* - . 0.2 0.1 0.1 -* * * 02 0.2 - 0.2

Siqgie1o 0.1 0.3 * 0.2 0.1 0.3 1 0.2 0.2 - * 0.2Tdl 0.2 43 . 44 0.2 5.0 5.2 4.4 0.5 0.2 5.2

~iXw Vs

0 IPh'

TANZANIAINTEGRATED ROADS ll PROJECT

C _byf_ Afitnanw(US$ lilian) Govenwnent Norad IDA SDC EEC DeeomentBan

Amount % Amount Amont Amount Amount % Am A. Polc and Intutiona Support

Sbengwthsn Road Netwerk MaU_agmmn 0.0 0.7 2.2 57.1 0. 21.1 - - 0.8 21.1 - -Consbuc lndusby Deepment 0.0 1.1 - 32 98. - . . .Building Tedhical and Ma Ia Capacy 0.1 - - 5.8 100.0 - - - - -

hprvg Manageent of Road Transport Cmips - - 0 * 4 100.0 - -mprov Mngemet of Civ Avain 0.0 - - - 0.5 100.0SecW Polces and Fue Prect 0.0 * - * .1 100.0

Subtoal Po"yand Isktt_Ial Support 0.1 0.5 2.2 16.9 9.9 76A - - 0.8 62 -S. Road Upgrading, Rehabiitafton & Maintenace

Tfu*RoafdandBuldg.sRetabMallailon UpgM 49.3 10.0 21.2 4.3 85.3 17.4 - 158.4 31.8 108.0 22.0Rural Roads md Biges Rehabflfon & Upgradng 11.3 13S 12.2 14.1 39.8 47.7 42 4.8 11.0 13.2 - -Cbarlng Bacdo Perlotic Maenme 6.8 12.4 5.4 9.8 29.2 53.1 0.2 04 10.6 18.1 1.0 1.8

Subtotal Road Upgradb Rehabiin Marntenance 67.4 10.7 38.8 6.1 154.2 24.5 4.4 0.7 177.3 282 108.9 17.3C. Village Travel and Trasport Pid Prog

Pr4ec Maagemt 0.0 5.0 0 . 0.7 95.0Ci*tr Implm t Agenress A*rnnron 0.0 4.2 02 31.6 02 32.6 02 31.6Road Infrasucture 0.1 4.8 0.4 31.4 0.4 32.4 0.4 31.4 - - - -FacaUseddof tennel ateMomnof TmAst 0.0 4.8 0.1 31.4 0.1 32.4 0.1 31A - - - -Non-Transport intervenftn 0.0 4.1 0.1 31.6 0.1 32.6 0.1 31.6 - - - -

Subtotal Vilage Travel and Transport Pt P Progra 0.1 4.7 0.7 23.3 1.4 48.7 0.7 23.3 - - - -D. Cihil Aviaion

Airpoterfacnu 0.4 6.9 - - 4.8 93.1 - -Totl Disbwsement 67.9 10.4 41.7 6.4 170.2 262 5.1 0.8 178.1 27.4 108.9 16.7

P zDm

o l

TANZANIAINTEGRATED ROADS II PROJECT

Components by Financers(USS Mlnlln) JAPAN Kuwa OPEC Finnda Total

Amount 'A Amount % Amount % Amount % AmountA. Policy and Insttutional Support

Srengthening Road Netwei1 Management t8Construction Industry Development - - - - - 3.2Ouiding Technical and Managera Capacity - - - - - - - - 3.8Improving Management of Road Transport Companies . . . . .0.4Improving Manageernt of CHl Avon - - - - - - - - 0.5Sector Polics and Future Projects - - - - - - - - 1.1

Subtotal Polcy and Insitutinal Support - - - - * * 13.0EL Road Upgrading, Reha~btaon & MaIntnanc

Trunk Roads and Bridges Rehabiltation & Upgrading 17.7 3.6 14.9 3.0 38.2 7.8 * - 491.0Rural Roads and Bridges Rehabiliftion & UpgradIng 0.7 0.8 - - - - 4.2 4.9 83.4Clearing Baddog Periodic MaIntenance 1.3 2A - - - 1.1 2.0 54.9

Subtotal Road Upgrading, Rehabilitation & Manenance 19.8 3.1 14.9 2.4 38.2 * 5.4 0.8 629.3C. Villge Travel and Transport Pilt Program

Proect Management - - - - - - - 0.8District Implementng Agencies Administration - - - - * 0.5Road Infrastructure * - - - 1.2Faclitating Use of Intermediate Means of Transport - - - - - - - 0.2Non-Transport Interventions - - - - - - - - 0.2

Subtotal Village Travel and Transport Pilot Progran - - - - - - - - 2.9D. CMvil Aviation

Airport Resurfacing - - - - - - - 5.2Total Disbursement 19.8 3.0 14.9 2.3 38.2 5.8 SA 0.8 650.3

tno0I

104 Page I of I

TANZANIASecond Integmated Roads ProjectSummay of Unfumded Program

|Comiponen . iante Y otm

US$ millior.Road Upgrading, Rehabiltation & Rehabilitation of about 119 km 1996197 15.0Maintenance of Kibada Jct.-Kibiti gtavel

road _

Backog periodic maintenance 1995196 1.50of 25 km of Lindi-Mingoyoroad , ._lBaclkog periodic maintenance 1995/96 4.00of 100 km out of 270 km ofBabati-Dodoma road _Backlog periodic maintance 199596 1.70of 10.3 kIn out of 12.3 km ofPugu road (Tnganyikamotors- Aitport Jct.) Backlog periodic maintenance 1995/96 1.40of 11 km out of 16 km NelsonMandeia road ._.Rural roads refer to Annex 13.63

5.4 for detAilsTrunk roads bridges (package 4.60TV) in Mtwara and Lindi

___________________________________ .regionsRoad tansport vehicles and spares Procurement of vehicles and 1994/95- 10.00

spares for RETCOs serving 1999/00remote areas .

Civil Aviaion Safety equipment for Intl. 1994195 2.50AirportsNavigation aids for Intl. 1994/95 2.50Airports

T O T A L i_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ S _ _ _ _ _ _ _ _ 56.83

1/ Costs do not include physical and price contingencies.

21 Would depend on the findings of a road transport services restructuring study to becommissioned by the Government. in addition to other objectives, the study would investigatethe implications of divestiture of RETCOs to remote areas and if service is likely to cease, thestudy would recommend alternative ways of providing service including incentives to privatesector operators and continuation of parastatal service for an interim period pendingimprovement of the road conditions in those areas.

Trunk Road and BHdge InvesntsImplemention Schidue

1992 _ 1993 1 1994 1 1995 1996 1 1997 1 1998 1 1 1999 1 20001ID Name Duration - 02 03 Q4 Q1 104Q2Q33 Q4 Q101 2 Q3Q401 2 Q3 Q4 102 Q4Q1 Q4 Q1lQ203 1 a W1 CORRIDOR: TANZAM 1 566ii

2 ROAD: D'SALAAM-MLANDIZI 1 305d _ _ _ _

3 Engineering Design 52.2w

4 Bid and Award Contract 52.2w

5 Implementation Process 156.6w

6 ROAD: CHALINZE-MELELA 1 304d

7 Engineering Design 104.2w N _ 0 _ _

8 Bid and Award Contract 62.2w

9 Implementation Process 104.4w sW MN

10 ROAD: MAHENGE-ILULA 1044d

11 Engineering Design 52.2w I I I I I12 Bid and Award Contract 52.2w

1 3 Implementation Process 104.4w

14 ROAD: MSIMBA-IRINGA-IGAWA 1306d t15 Feasibility Study 52.2w U VI'

1 6 Engineering Design 52.2w

1 7 Bid and Award Contract 52.2w

1 8 Implementation Process 104.4w

19 CORRIDOR: CENTRAL 2088d

20 ROAD: DODOMA-MANYONI 1 305d

21 Engineering Design 52.2w

22 Bid and Award Contract 52.2w

23 Implementation Process 156.6w X MEK i

24 ROAD: MANYON-SINGIDA 130d

25 Engineering Design 52.2w

26 Bid and Award Contract 52.2w

27 Implementation Process 156.6w __________.___________ -

28 ROAD: SINGIDA-SHELUI 1044d _ l tl I n

Project: IR11 I Critcal Progress SummaryDate: 2/7)94 NoncriMilestone * Rolled Up O)

Page 1

Truw* ROaW and 8rldg. InvestmentsImplementation Schedule

1992 1993 11994 11995 _ 1996 1997 1 I998 1999 20001in Name Duration 2 0304 01 013044 1 1030Q40 )I .I0304 (1020Q304 12 0304 Q1 034 2_ 40229 Engineering Design 52.2w

30 Bid adAadContract 52.2w

31 Implement'at'ion Process 104.4w

32 ROAD: SHELi:i-N1ZEGA ¶ 305d

33 EnginerigDesign 52.2w

34 Bid and Award Contract 52.2w

35 Implemenitation Process 156.6w

36 ROAD: NZEGA-SHINYANGA 35

37 Engineering Design 52.2w

38 Bid and Award Contract 52.2w

39 Implemenation Process 166

40 ROAD: SHINYANGA-SHY.BDR 1 305d

41 Engineering Design 52.2w

42 E4d -a n-d Aw-ar-d C-ontra-ct 52.2w43 ~~~Imple'Mentatio-nPro`c-ess- 156.6w

44 ROAD: SHINY BDR-MAGOGORV 14d P

45 Enginaeering -Deosign62w

46 Bid and Award Contract 2w

47 imple;mentatonPrcess 10.4

48 CORRIDOR: LAKE 1305d

49 ~~ROAD: BIJKOBA-MULEBA 13 O 5dd

50 EgneigDesign 52.2w …51 Bid~ and Award Contract 52.2w

52- implementation Process 156.6w t

53 CORR-IDO,R,:SO'UTHNERN 1 327d

54 ROA: MSASi NANGOMBA 1 327d l

55 Engineering Design52w

66 Bid and~ Awa-rd Contract 52.2w

Proect: 11W aI Critical poesSummary

Date: 2/7194 Noetca ietow Rolled Up <

Page 2

Trunk Road and Bridge InvestmentsImplementation Schedule

1992 _ 1993 1 1994 1995 1996 1997 _ 1998 1999 20001

ID Name Duration 103104102QQ3 014 230Q4 102 301 Q3Q4 Q1Q; Q304 I213Q41Q 04 Q2 Q367 Implementation Process 104.4w _ __

58 ROAD: NANGOMBA-NAMTUMBO 1305d lf " _ _

69 Engineering Design 52.2w

60 Bid and Award Contra 62.2w__

61 Implementation Process 166.6w _ I _!g o _62 ROAD: NAMTUMBO-SONGEA 10444

63 Engineering Design 62.2w

64 Bid and Award Contract 62.2w

65 Implementatio Process 104.4w

66 COR: SOUTHERN COASTAL 1305dE 666 | 6 giF"rn3 Orailin 1 63.obd~~~~~~ I It I I I I IIIIIIIIIII I67 nFGIneIERin DeOSINGn10d.i

69 Bid and Award Contract 52.2w

70 Implementation Process 1568.w

71 COR: WESTERN 156Bd

72 ROAD: SUMBAWANGA-MPANDA 1305d

73 EngIneering Design 52.2w

74 Bid arnd Award Contract52w

75 implementation Process 156.6w Run

76 ROAD: KIGOMA-KASULU 1044d

77 Engineering Design 2.2w

78 Bid and Award Contract 52.2w

79 Implementation Process 104.4w __|

80 ROAD: KASULU-NYAKANAZI 1305d

81 Engineering Design 52.2wx

82 Bid and Award Contract 5 I

83 Irr lementation Process 156.6w

84 COR: GREAT NORTH 1305d I II _

Poject: IRP It Cribcal Progress SummryDate: 217194 NOni,crcal Milstone Roled Up O

Page 3

Tmank Road and Bridge InvesumentsImplementation Schedule

1992 1 1993 1 1994 _1995 _ 1996 _ 1997 _ _ 1998 1999 12000

10 Name Duration _ 21Q3Q04101 2Q3 04 Q 1Q2Q3 QIQ21Q23Q4 Ql02 Q304 01102G304 02 3 4Ql12 0 31411 203

85 ROAD: MAKUY-NGORIOLOEANI 1 365d

86 Engfineering Design 52.2w

87 Bid and Award Contract 52.2w

88 Implermentation Process 156.6w

89 COR: MID WEST 18d4

90 ROAD: MPANDA-INYONGA 1 044d

91 Engineering Design 52.2w

92 Bid and Award Contract 52,2w

93 Implementation Process 104.4w

94 ROAD: INYONGA-IPOLE 1044d m95 EngIneering Design 52,2w

96 Bid and Award Contract 52.2w

97 Implementation Process 104.4w

98 ROAD: IPOLE-TABORA 1 044d 0)

99 Engineering Design 52.2w 7'Ic

100 Bid and Award Contract 52.2w

101 Implementation Process 104.4wMM m102 ROAD: TARORA-NZEGA 04If = W

103 EnginteerIng Design 62.2w

104 Bid and Award Contract 52.2w

105 Implementation Process 104.4w

106 COR: D'SALAIM ACCESS 522d

107 PRELIMINARIES 522d

108 Bid and Award Contract 52.2w m(

109 Implementation Process 52.2w ON

Project: MRP Ii Critcal Progress Sumnmary r

Data: 217194 NoneMcal Miletone *Roiled Up C0

Pageo 4

Tmnk Road and Bridge InvestmentsImplementation Schedule

Tnmk Road Brdges

1992 1993 1994 _ 1996 1996 _ 1997 1998 1999 20001ID Name Duration Q3Q4 Q12 3 1 Q2Q30Q1|Q2|Q304 Q 12 Q4Q 1 02lQ4 1Q 3Q4Q1QQ3Q4Q1 Q2l31 TRUNK ROAD BRIDGES 1566d

2 PACKAGE I 10,44d

3 Engineering Design 52.2w

4 Bid and Award Contract 52.2w

5 Implementation Process 104.4w _I

6 PACKAGEII 1 305d ___

7 Engineering Design 52.2Ww

8 Bid and Award Contract 52.2w

9 Implementation Process 104.4w

10 PACKAGE III 1566d

11 Engineering Design 52.2w si12 Bid and Award Contract 52.2w

13 Implementation Process 104.4wI-

0%I 1

0lG

Project: IRP | Cridcal_ Progress Sumnuarw yDate: 217/94 NoncrIfIcal Milestone * Roed Up 0

Page 1

110

Ax6-2Page 1 of 1

TANZANIASecond Integrated Roads Project

Disbursement ScheduleFiscal Year Ending Disbursement Cumulative Cumulative

(USS million) Disbursement (USS Disbursementmillion) %

Fiscal Year 1994/95June 30 15.70 15.70 9.2

Fiscal Year 1995/96December 31 15.70 31.40 18.5June 30 22.30 53.70 31.6

Friscal Year 1996197December 31 22.30 76.00 44.6June 30 23.60 99.60 58.5

Fiscal Year 1997/98December31 23.60 123.20 72.4June 30 18.60 141.80 83.3

Fiiscal Year 1998/99Decenber 31 18.60 160.40 94.2June 30 3.60 164.00 96.4

Fiscal Year 1999/00December 31 3.60 167.60 98.5June 30 1.40 169.00 99.3

Fiscal Year 2000/01December 31 1.20 170.20 100

illl

Anna 6-3Page 1 of 2

TANZANIASECOND INTEGRATED ROADS PROJECT

SDervision Plan

1. The Bonrowers supervision activities would be cared out by the Mnisty of Works,Communications and Transport (MWCT). MWCrs CODAP will contnue to cooriate projectimplementation both intemnally among executing agencies and extemally with donors. Theirsupervisory functions would involve the following:

(a) inital review, recordig and forwardig of-

(i) all procurement orders(ii) all disbursemnt requests(iii) special accounts expendtures/reimbursements

(b) preparation of an amnual project iplementation budget(c) preparation of bidding and other project conacts documents(d)- preparation of monthly financial statements(e) preparation of semi-annual reports on all aspects of project impl ion(f) preparation of annual project accounts(g) preparation and submission of annual progress reports to IDA in February/March

each year(g) arranging for the annual audits of project accounts and SOEs(h) liaising all Bank supervision missions

2. In addition to the regular supervision missions to be carried out by IDA in accordance with theschedule set out below, IDA staff would spend time at headquarters on dealing with coespondence,reviewing and commting on prom documents, burement requests, half-yearly reports andaudited accounts. The amount of tme esimated is as follows:

Project Year 1 10 swsProject Year 2 10 swsProject Year 3 10 swsProject Year 4 8 swsProject Year S 8 swsProject Year 6 8 sws

3. The Government will hold a project implementation (Mid-tenm Review) to be attended by thedonors and IDA by November 30, 1996. The terms of reference and background papers for the reviewwould be prepared by the Government with IDA staff assistance as may be necessary. The principalobjective of the implementation review would be to examine the status of implementation of the project,progress in procurement, disbursements, construction and institutinnal and policy reforms. It wouldalso include a review of quantitative and qualitative benefits anticipated from the project.

112

Page 2 of 2

Bank Supervision Input Into ActivitiesFiscal Year Appmximate Date Activity Expected Skills Staff inputFY1994/95 March 1995 Supervision Mission Financial Analyst 10.0

Transport Eiginer/ProcurementRural Roads SpecialistOperations AnalystEnvironmental Specialist _

FY1995/96 September 1995 Supervision Mission Financial Analyst 12.0Transport Enieer/ProcurementRural Roads SpecialistOperations Analyst

Mar 1996 Supervision Mission Financial Analyst 10.0Transport Enginee/ProcurementRural Roads Specilist

_________ .Operations AnalystFY1996/97 November 1996 Project Financial Analyst 12.0

Implemlnentation Transport Engineer/tReview Ruial Roads Specialist

Operations AnalystEavironmental Specialist

March 1997 Survision Mission Financial Analyst 10.0Transport EAginerocurementRural Roads Specialist

:_________ Operations AnWlystFY1997/98 September 1997 Supeision Mission Finc Analyst 12.0

Transport Engineierour tRural Roads SpecialistOperlations Analyst

Mach 1997 Supevision Mission Financial Analyst 10.0Trnswport Engineer/ProcurementRural Roads SpecialistOperations Analyst

FY1998/99 September 1998 Supervision Mission Finanial Analyst 12.0Transport Engieer/ProcurementRural Roads SpecialistOperations Analyst

March 1999 Supervision Mission Financial Analyst 10.0Transport Enginee/ProcurementRural Roads SpecialistOperations Analyst

FYI999/00 September 1999 Supervision Mission Transport EngineerPocurement 12.0Financial AnalystRural Roads SpecialistOperations Analyst

March 2000 Supervision Mission Tranort Engineer/Procurement 10.0Financial AnalystRural Roads Specialist

._______ Operations AnalystFY2000/01 September 2000 Prepartion Work for Financial Analyst 12.0

Project Completion Transort Engineer/ProcurementReport Rural Roads Specialist

Opeaions Analyst

TANZANIASecond Integrated Roads Project

KVe Peorfuma n Indito

Fiscal Year Ending June 30Attribute Indicator 1995 1996 1997 1998 1999 2000Physical Works km rehabilitated (paved roads) 77 445 129(trunk roads) km rehabilitated (ravel Loads) 71 50 83

km upgraded to paved roads 47 - 471 201 65km SPot improved (gravel roads) 116 669 266 - 233km periodic maint backlog (paved) 14 75 _____

km periodic maint backlog (gravel) 232 197 -

Road Condition Targets % good (trunk roads) 44 48 54 57 62 66% fair (tunk roads) 18 17 15 15 15 15% poor (trunk) 38 35 31 28 23 19% good (SLralroads) -29 33 37 43 46 47

%_fair (rural roads) 13 17 11 10 11 I 13% Poor (rural roads) 58 56 52 47 43 40

No.of Contractors Developed No. of contractors 12 30 48 12Output per trial contract 4.5 4.5 4 4.5

Participants in Key Courses Procurement Management 100 100 - -

Contract Supervision 50 50 -

Transport Planning for Regional & 64 62 62 62Urban Engineers and PlannersManagement Information Systems 2 4 6 4Challenges of Management for 12 18 20 5 2

____= ____ Engineers__ X

m~~~~~~~~~~~~~ m

IL~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ onev

0%0I 4

114Annex 6-5

TANZANIASecond Integrated Roads Project

Documents Available in the Project File

Part I consists of documents prepared by the Government and its consultants in the processo� preparing the project and Part U comprises working papers prepared by the appraisal missionand used for preparation of the Staff Appraisal Report and others which provide useful informationfor use by implementation agencies and Bank supervision missions.

Part I

(a) Documents and Papers Prepared by the Government

1. Presentation of the Second Integrated Roads Project, (IRP II), Pares Salaam, June 1993,

prepared by the Ministiy of Works and the Ministry of Communications and Transport.2. Presentation of the Second Integrated Roads Project, (IRP U), Annex B, Trunk RoadTransport Corridors, Par es Salsam, June 1993, prepared by the Ministy of Works and theMinistry of Communications and Transport.

3. Presentation of the Second Integrated Roads Project, (IRP U), Annex C, Prioritization andSelection of Rural Roads and Bridges for Investment, Dares Salaam, September 1993, preparedby the Ministry of Works and the Ministry of Communications and Transport.

4. The Summary of Proceedings and Papers presented at the IRP Implementation Review inNovember 1992.

5. Road Transport Study for the National Transport Corporation, prepared by the EconomicResearch Bureau, University of Dares Salasm, November 1992.

6. Second Integrated Roads Project, Review of Resource Allocation Policy, March 1993,prepared by S.M. Kaombwe (consultant for MCT).

(b) Papers Presented by the Government to the Donorst Conference(Arusha,4th and 5th October, 1993)

1. Transport Sector Administration: Plans for Restructuring of the Ministiy of Communications andTransport, presented by Mr. E.N. OleI(ambainei, Commissioner of Transport, MWCT;

2. Organization and Management of the Roads Network� (Status and Future Strategy),presented by Mr. H. Ci. Urio, Director of Roads and Aerodromes MWCT;

3. Trunk Road Corridor Strategy and Proposed Investments under the Second Phase of theIntegrated Roads Project (IRP U), presented by Messrs. A.N. Temba, Director of Planning andResearch, and J. L. Nguinbuilu, Chief Engineer, MWCT;

4. Human Resources Development, Proposed Assistance Under lRP fl�, presaMd by Mr. L.Mashamba, Director of administration and Personnel, MWCT;

115Annex 6-5

S. Road Transport: Action Plan & Investment Proposals, presented by Mr. P. Baidlana,Managin Director, NTC;

6. Development of the Construction Industry m Tanzana vnthin the fiamework of the IRP,presented by Mr. M. I. M. Msita, Executive Secretaiy, NCC;

7. Selection Criteria for Proposed Rural Roads Ivetmel under tP Ul, prepared by Dr. P.Komba, Chief Engineer, and Messrs. M.E. Chivaip and G.. Kinyero, Senior Fgines,MWCT;

8. Road Maintenance Strategy, Physical and Financial Targets; presented by Mr. F.T.Marmo, Chief Engineer, Programmi MWCT;

9. Pilot Village Travel and Transport Project (MP), presnted by Dr. C.K. Kaira,Transport Planning Adviser, MWCT; and

10. Integrated Roads Project, Fifth Status Report, presntd by Mr. P. Monis, UNDPAdviser, MWCT.

Part l

(a) Supplmental Guide for Implementation Agencies and IDA Supervision Missions

1. Road transport paastatals: A strategy for Improvement

2. Civil Aviation Subsector Restructung Sudy Terms of Refirence

3. Road Network Managmet and Financing Action Plan

4. Development of the Domnestic Const, action Idustry

5. Selection of Rural Roads Criteria

6. Anllysis of Ficing Options

7. Village Travel and Tanport Pilot Program

8. Terms of Reference for Enviromuental Studies

(b) Working Papers

1. Second ntegrted Roads Project, Working Paper on Enginng Issues, prepared by temission (Mr. 0. EUevset).

2. Pilot Village Travel and Transport Project, Project Document, October 1993, prepared bythe Mission (Ms. C. MalmberCalvo).

116Annx 6-5

3. Second Integrated Roads Project, Economic Analysis, August 1993, prepared by theMission (Mr. E. Asebe).

4. The Impact of Road Reabiitation on the Tannin Econony Septeer 1993, preparedby the Mission (Mr. E. Asebe).

S. h Management Action Group, MAO, preae by the Mission (Mr. N. Jugs, ODA).

6. Worlforce Developmet Strate Up to Year 2000 prepared by the Mission (Mr. T.Hernes).

NYt17,'nl/ Toya'a a t T1 j NogKisior 36a

Buk V . Launoba ara AuasMh

| ~~~~~~~~Isk * Shanyana _- /x.L)5 It A E

take ~ ~ ~~a

Ipole~~~~~~~~~~~~~Lk 1AIOoshya

.~~~~~~~~~~~'- Arus 9 a

The 4 oundaries, colors, tndf g, X P < AR Kr

deominakaon andngn

imply, on the pa,t of I + Ta6O SLhelu

Th Worl)+ /d Bank Goup,

an jugmn on the lea KILOMETERS 0 so 100 is 200s &d

sTatusyr of an \ en*or-y4 <

oAr E an \ dffisement / 'duri

or acetac ofaana suchMB A/ /

rhe boundaries. colors, z ^ ,iTb

Inyg on tne pert of * l . t _ _6

status of any terribry, _ _~~~~~~~~~~~~~~~~esrv

ZAIdRiEs Puw,fi

l . , . 36° _ \baw