Project Name. PROJECT INFORMATION DOCUMENT (PID) APPRAISAL STAGE Report No.: AB1464 SL Infrastructure Development Project (Transport)

Transcription

1 Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized Project Name PROJECT INFORMATION DOCUMENT (PID) APPRAISAL STAGE Report No.: AB1464 SL Infrastructure Development Project (Transport) Region AFRICA Sector Roads and highways (52%); Ports, waterways and shipping (28%); Aviation (20%) Project ID P Borrower(s) REPUBLIC OF SIERRA LEONE Implementing Agency Ministry of Finance Sierra Leone Ministry of Transport and Communications Sierra Leone Republic of Sierra Leone Sierra Leone Environment Category [ ] A [X] B [ ] C [ ] FI [ ] TBD (to be determined) Date PID Prepared May 6, 2005 Date of Appraisal May 9, 2005 Authorization Date of Board Approval September 22, Country and Sector Background During the period of civil unrest ( ) Sierra Leone s transport infrastructure suffered from widespread destruction and lack of maintenance. Seriously degraded roads left whole sections of the country and isolated communities cut off from the rest of the country, while the Port of Freetown and Freetown International Airport underwent successive rounds of destruction, endangering the country s economic lifelines to the outside world. Prior to the outbreak of hostilities, Sierra Leone had a National Transport Policy, which was developed with the support of the Bank under the Third Road Rehabilitation and Maintenance Project (RRMP 3). This Policy provided the foundation for a multi-donor supported Ten Year Transport Sector Investment Plan (1995), with the Bank playing a coordinating role through the Transport Sector Project (TSP). As the security situation stabilized in 2001, Bank and other donor programs were reoriented toward emergency reconstruction/rehabilitation on the road network and restoration of port and airport operations. Additionally, the TSP financed in 2002 the National Transport Strategy and Investment Plan (SLNTP), which updated the prioritized framework for immediate and longer term investments and lays out key sector policy reforms and strategies, focusing on support to the national reconstruction and poverty reduction programs. In December 2004, Sierra Leone produced its final Poverty Reduction Strategy Paper (PRSP). The pro-poor growth strategy focuses on putting to use under-utilized capacity in the agricultural

2 and mining sectors, expansion in manufacturing and services sectors, and higher public investment in infrastructure projects. Growth in agricultural production is strongly oriented toward food security, while parallel efforts are planned in export diversification and tourism. The PRSP recognizes the importance of accessibility and transport infrastructure for achieving the above goals. Moreover, the Food Security Strategy for Sierra Leone (September 2004) identifies poor road access as a key factor inhibiting marketing of food, and specifies improvement of both major and farm access/rural roads as a strategic measure to achieve the President s pledge that no Sierra Leonean should go to bed hungry. Primary and feeder road development are among the PRSP Poverty Reduction Indicators for Pillar # 2. In addition, divestiture and privatization in transport and shipping sectors form part of the PRSP strategy for redefining the role of government in the economy and creating opportunities for private sector development. As the country embarks on the implementation of this strategy, a number of issues specific to the transport sector stand out: Roads: The official public road network of Sierra Leone totals about 11,000 km, of which some 8,000 km are classified in the National Road System (NRS) and the remaining 3,000 is made up of local networks and unclassified roads and tracks. Although, even the most essential of the primary core network has deteriorated to the point certain sections are impassable in the rainy seasons. The Sierra Leone Roads Authority (SLRA) is in the process of bringing the core and feeder road networks up to a minimum functional standard. Faced with limited domestic and external funding, SLRA has identified a core primary network of about 2,000 km that will ensure basic access to the country s regions, complemented by feeder and local road networks, which link communities to the primary network. Despite current donor commitments on the main and feeder roads, there remain major gaps and under-funding on the core road network, which still has to be brought up to a fully accessible standard. At the same time, district linkages from the core road network on secondary and feeder roads are only partially covered by donor programs, with additional scattered community-based programs such as NaCSA designed to provide purely localized improvements not geared to overall connectivity to the main network. Government s focus on post-war emergency works led to the substantial deferment of the original sector policy of network planning and management by SLRA, with private-sector implementation of engineering and maintenance works. Rather, SLRA has been under constant pressure to allocate Independent Road Maintenance Fund resources (funded through road user charges) to emergency works implemented by force account. This has effectively precluded implementation of the annual maintenance programs, and has negatively impacted the development of private sector participation in road works. The situation is further aggravated by the current Road Maintenance Fund setup, in which the Fund is directly managed by SLRA, who finds itself with an inherent conflict of interest and under constant pressure to respond to the ad hoc emergency demands. In addition, the current emphasis on feeder roads by several donors is leading to the development of engineered roads for which there is no secure maintenance funding. To address the above issues, Government, through the SLNTP, developed an overall strategy for road network management, which focuses on filling in priority gaps in the core and feeder road networks, subject to funding, while providing basic access to isolated rural communities, in conjunction with community-based programs. The sector management issues are being

3 addressed through further rationalization of road sector institutions in conjunction with the National Commission for Privatization (NCP). Under PHRD-financed preparation studies, an agreed Road Sector Management Action Plan is being drafted, which is built around: i) refining the establishment of the Independent Road Maintenance Fund (through continued funding by Road User Charges plus any Government contributions) specifically for programmed road maintenance by priority, with the Fund managed and controlled by its own autonomous Board in lieu of the current SLRA management; ii) the funding of all emergency road maintenance works will be by separate Government funding of SLRA (with details drawn up under the Road Sector Management Action Plan Study); iii) the privatization of the existing SLRA Mechanical Services Unit (MSU) to an autonomous Mechanical Services entity such that the MSU is separated entirely from SLRA and free to operate as a commercial plant hire company; and iv) ultimately restructuring SLRA as a service provider/projects management agency, which plans and implements programmed maintenance works and development projects. Port: The TSP restored operations at the Port of Freetown after years of neglect and damage by civil unrest. This included physical investments in port infrastructure and equipment, and institutional support and assistance in moving toward a landlord port model. Although traffic has improved with increased ship calls, the Sierra Leone Port Authority (SLPA) has been plagued by inefficient operations, low maintenance and uncompetitive costs. In addition, further infrastructure and equipment are needed to address the medium to long term handling capacity of the port and to meet internationally recognized environmental, safety and security standards. Also, under the NCP supervision and with TSP support, the port s slipway is the process of being sold and ferry services are being concessioned. In addition, spurred by the President s June 2004 address (which expressed disappointment with port performance and calling for accelerated action) the Government has embarked on the concerted program to transform the port to full landlord status. This is being achieved through: (i) the introduction in January 2005 of a new General Manager, recruited from the Ghana Ports and Harbors Authority (GPHA); the aim being to achieve a clear break with past practices and introducing fresh management perspectives founded on the Ghana landlord port model; and (ii) the implementation of an Action Plan for the restructuring of SLPA and the privatization of the core activities, through the concessioning of the container terminal and issuing of licenses for the service providers for non-container (bulk handling) cargo. The Action Plan, formulated with funding through TSP, includes three components: (i) activities leading up the privatization; (ii) activities related to the restructuring of the SLPA; and (iii) definition of the economic and technical regulatory functions associated with the revised SLPA structure. These activities will be initially funded by a Project Preparation Facility (PPF). Linked to the above activities is the determination of appropriate investments in infrastructure and equipment, given the shifting responsibilities of the SLPA as a landlord entity and the desire to attract private investment, while providing adequate incentives to attract that investment. To this end, the PHRD grant has funded a technical, economic and environmental feasibility study for extending paving of the container stacking area, as well as identifying necessary safety and environmental equipment.

4 Airport: The TSP also supported SLAA in restoring commercial operations at Freetown (Lungi) International Airport. The Sierra Leone Airports Authority (SLAA) has an extremely competent management structure which has successfully managed development funds and revenues to address priority infrastructure and equipment needs. However, further infrastructure and equipment inputs are needed to meet internationally-accepted aircraft and passengers security and safety standards. SLAA also intends to pursue a quality improvement program with an emphasis on customer service, and is in dire need of an improved management information system (MIS), as well as training support. 2. Objective(s) The provision of sustainable access for Food Security and Poverty Reduction. 3. Rationale for Bank Involvement Given the PRSP orientation toward food security and intersectoral linkages, the Bank s intervention in the transport sector is focused on achieving accessibility through reliable road access to and from rural areas, as well as ensuring adequate and safe port and airport facilities for passengers, exports and imports. Reliable road access can only be achieved through a functioning core road network (with sustainable provisions for maintenance), from which secondary and feeder road links to the rural areas emanate. This basic accessibility is an essential precursor to the country s pro-poor economic growth and national integration strategies. With the above objectives in mind and in the context of the President s No one goes to bed hungry pledge, the project design team formulated a comprehensive project proposal, costed at approximately US$ 158 million. Taking account of other donor commitments in the sector, this proposal would include: (i) rehabilitation of four main roads (315 km), which would fill-in the remaining gaps/re-establish the most basic all weather core road network as the basis for country wide connectivity; (ii) extend the connectivity to the basic core network through rehabilitation/ upgrading of some 1,000 km of key primary gravel roads that link rural and food producing areas to the essential core network, markets input supply, etc.; and finally (iii) extend the connectivity to the most distant rural communities and agriculture development through rehabilitation of 400 km of additional secondary and feeder roads linking communities to the core road network. However, in view of the available funding for IDP (US$ 38 million), the project cannot cover the comprehensive network-wide rehabilitation envisaged in the comprehensive proposal. Thus, only a limited number of components of the comprehensive package is being funded under the project, focusing on two sections of the primary core road network (98 km) and prioritized gravel and feeder road links to the rural areas (about 400 km), combined with priority infrastructure and equipment requirements in the port and international airport, as well as institutional support in all three subsectors. The physical investments on the primary core road network have been identified in close coordination with other donor commitments, notably European Union (EU), Islamic Development Bank/Kuwait Fund, DFID and AfDB. On the secondary and feeder road networks, four target districts (provisionally Kailahun, Kono, Koinadougou and one other) have also been identified in conjunction with other donor commitments to: (i) address accessibility in the most

5 access poor districts identified in the Food Security Strategy; and (ii) complement the Banksupported National Social Action Project (NSAP), which is financing community level access improvements through NaCSA, so as to achieve connectivity to the main network and related services. Project interventions in the Port of Freetown have been selected to complement previous and ongoing operations by the World Food Program (WFP). Institutional support for road sector management will build on the continuing collaboration with EU-financed technical assistance to SLRA in the fields of road maintenance and financial management. The Bank s incremental contribution will be to fill some of the most important gaps in the country s stock of essential transport infrastructure assets. In addition, the Bank has historically held the unique position of engaging the Government and other donors in a sector-based dialogue aimed at establishing policy and institutional reforms. The project will benefit from Sierra Leone s participation in the Bank Sub-Saharan Africa Travel and Transport Program (SSATP), which promotes exchange of knowledge and experience in road sector management among 30 member countries in Sub Saharan Africa. The Country Assistance Strategy (CAS FY06-09) for Sierra Leone is presently under preparation and is scheduled for Board approval in May The CAS as drafted recognizes transport infrastructure, as a key element in promoting growth and employment generation, particularly in addressing the need to address youth unemployment. 4. Description Component A: Road Network. The project will finance the rehabilitation of two segments of the primary core road network, Bo-Kenema (63 km) and Makeni-Matatoka (35 km), as well as approximately 400 km in four access-poor districts (Kailahun, Kono, Koinadougou and one other), to be selected on a priority basis to provide access from the core primary network to the rural areas and achieve maximum impact on food security and poverty reduction. A key element of Government s strategy is to restore the essential links as a fundamental basis for poverty reduction, food security and national integration strategies. In the context of a PHRD-financed Road Sector Management Action Plan, the project will also continue to support reform and restructuring of the road sector, aimed at encouraging private sector participation and redefinition of Government s role away from force account works. This will include technical assistance and other support for the above-mentioned Action Plan, built around establishment of an Independent Road Maintenance Fund with an autonomous Board and reorganization of SLRA; together with a review of the management structure associated with user charge collection and business scope of SLRTA in their new roles. Component B: Freetown Port. In the context of an Action Plan for Privatization of the Port s Core Activities, financed under the previous Bank-financed Transport Sector Project (TSP), this project will finance the expansion of the paved container stacking area, as part of an incentive package for the concessioning of the port container handling operations; plus specialized equipment to meet internationally recognized environmental and safety standards (particularly related to navigational aids, oil spills, waste management and safety and security management). Through PPF financing, the project will support the implementation of the above mentioned Action Plan, involving: (i) concessioning the container terminal and licensing the bulk handling

6 operations; (ii) restructuring SLPA, including revision of legal status, staff reduction and social mitigation plan, development/management of the port s land holdings, establishing financial modeling of charges and tariffs and completion of the sale of slipway assets and concessioning of ferry services; and (iii) redefinition of the port s technical and regulatory functions in the context of its overall reform. The PPF supported activities are expected to extend into the first year of the project; the project also provides for additional institutional support to be identified during the course of the project on an as-needed basis. Component C: Freetown International Airport. The project will finance rehabilitation and improvements to the runway, taxiway and lighting to safely accommodate modern aircraft; and installation/upgrading of the water and electricity supplies for security, sanitation fire fighting and back-up supplies. The project will also finance support to SLAA s efforts to increase efficiency and competitiveness, through training and technical assistance. Component D: Project Coordination and Studies. The project will finance project management and coordination for the three sector-based components, through a Coordination and Monitoring Unit (CMU) of the Ministry of Transport and Communications (MOTC). This will include financial management, monitoring and performance indicators, environmental and social safeguard expertise and technical audit and procurement capacity. The project will also finance a Master Plan Study for the International Airport, as well as other studies to be identified. 5. Financing Source: ($m.) BORROWER/RECIPIENT 7.6* INTERNATIONAL DEVELOPMENT ASSOCIATION 38.0 Total 45.6 * including severance payments to displaced staff in SLPA restructuring. 6. Implementation The project will be managed by the Ministry of Transport and Communications (MOTC), through its Coordination and Monitoring Unit (CMU). Each implementing agency, that is, Sierra Leone Roads Authority (SLRA), Sierra Leone Ports Authority (SLPA) and Sierra Leone Airports Authority (SLAA) will be responsible for implementing and reporting on the components in their respective sectors. The CMU will be a lifeline link to funding for these agencies and will monitor their conformance with agreed action plans, available budget, Safeguards and other Bank requirements. Disbursements will be centralized through one special account managed by the CMU. Progress reports by each agency will follow a specified format and will be submitted to the CMU, who will transmit them to the Bank, with an Executive Summary. These arrangements will be laid out in a Memorandum of Understanding, signed by all the parties. 7. Sustainability The Government s commitment to and ownership of the project may be seen in the Cabinet s adoption of the National Transport Strategy and Investment Plan ( ), which serves as the basis for the road management strategy and sector reforms supported by the project. In

7 addition, the reforms in the port and road sectors are being implemented under the supervision of the National Commission for Privatization (NCP) and are included in the NCP s Work Plan. Moreover, the reform of the SLPA to a landlord port has been given strong impetus by the President s address of June 3, 2004 on the transformation of the SLPA. Critical to the sustainability of the project will be the establishment of the new Independent Road Maintenance Fund and the restructuring of SLRA on a solid footing. A second critical factor will be the engendering of a good working relationship between the Independent Road Maintenance Fund, SLRA and SLRTA and the minimizing of administrative costs. The project addresses these concerns in the design by placing a heavy emphasis on institutional support to these agencies, in collaboration with other donors. 8. Lessons Learned from Past Operations in the Country/Sector Physical investments and institutional support. The project design reflects one of the main conclusions of the 2002 National Transport Strategy and Investment Plan that physical investments by priority must be accompanied by secure maintenance funding and transparent management, if the benefits of these investments are not to be short-lived. For this reason, the project design includes a mix of prioritized infrastructure investments, institutional reform and capacity building. This approach has become all the more compelling, as the country emerges from the post-conflict emergency situation to one focused on achieving a stable physical and institutional environment, without which food security, access to markets and poverty reduction through economic growth cannot occur. Such considerations underline the project s support to road sector management reform, which aims to reverse the current vicious cycle, which starts with increased force account emergency works, preventing the carrying out of prioritized annual road maintenance programs with the stifling of a stable contracting environment for consultants and contractors. Quality of works. TSP experience has also revealed some shortcomings on quality control of works and services. As such, there is need to address quality assurance in future projects. Accordingly, the IDP design pays particular attention to promoting professional standards and instituting quality assurance provisions. A system of half yearly technical (and financial audits) will also provide independent verifications. Monitoring indicators. The proposed monitoring and evaluation indicators are to draw direct relationships between component results and expected outcomes. 9. Safeguard Policies (including public consultation) Safeguard Policies Triggered by the Project Yes No Environmental Assessment (OP/BP/GP 4.01) [X] [ ] Natural Habitats (OP/BP 4.04) [ ] [ ] Pest Management (OP 4.09) [ ] [ ] Cultural Property (OPN 11.03, being revised as OP 4.11) [ ] [ ] Involuntary Resettlement (OP/BP 4.12) [X] [ ] Indigenous Peoples (OD 4.20, being revised as OP 4.10) [ ] [ ]

8 Forests (OP/BP 4.36) [ ] [ ] Safety of Dams (OP/BP 4.37) [ ] [ ] Projects in Disputed Areas (OP/BP/GP 7.60) * [ ] [ ] Projects on International Waterways (OP/BP/GP 7.50) [ ] [ ] With regard to OP 4.01 (Environmental Assessment), the project was rated environmental category B. Environmental analyses have been carried out for each component as follows: (i) Environmental and Social Assessment and Management Plan for Bo-Kenema and Makeni- Matatoka Roads; (ii) Port Environmental Management Plan for Freetown Port; (iii) Environmental Impact Assessment and Environmental Management Plan for Freetown International Airport; and (iv) Environmental and Social Management Framework for the Feeder/Rural roads which have yet to be identified. With regard to OP 4.12 (Involuntary Resettlement), the Government has prepared a Resettlement Policy Framework for the feeder/rural roads. Although, it is not anticipated that project interventions will require land acquisition or will restrict access to natural or economic resources, this policy framework has been prepared to provide the appropriate guidance on resettlement and compensation, should the occasion arise. All safeguard documentation will be disclosed in country and in the Infoshop by May 9, The project components will include activities which have a positive impact on the environment and will also include mitigation measures for potential adverse impacts. Primary Road Network. No major environmental issues exist on the project-financed primary road investments, Makeni Matatoka and Bo - Kenema. These investments involve rehabilitation of existing paved alignments, which were constructed clear of the long established land settlements, with no stall holders or markets along the road alignments. An environmental analysis was carried out and an Environmental and Social Management Plan has been prepared. Feeder/Rural Roads. Since the location of the rural roads to be improved is not yet known, an Environmental and Social Policy Framework has been prepared, which lays out a procedural framework for implementing the environmental and social management process in the selection, planning and implementation of these subprojects. Although it is not anticipated that these investments will involve any resettlement, the Government has prepared a Resettlement Policy Framework, which will be applied in the event such issues arise. Port Component. An Environmental Assessment and Port Environmental Management Plan have been prepared. This includes sampling of the seabed to determine that no toxic materials will be dredged. In addition, an environmental audit will be prepared to establish baseline environmental conditions and operational framework, which will be incorporated into the concession. No significant environmental issues are anticipated on the project-financed port investments, as all the physical works are planned within the port s existing secure industrial area. As part of the Port reform supported by the Bank, consultations will be carried out with employees and workers who will potentially be made redundant under the privatization reform. * By supporting the proposed project, the Bank does not intend to prejudice the final determination of the parties claims on the disputed areas

9 Freetown International Airport Component. An Environmental Impact Assessment and Management Plan have been prepared. No adverse environmental issues are anticipated on the project-financed airport investments. 10. List of Factual Technical Documents Feasibility Study Rehabilitation of 100km of Paved Roads Makeni-Matotoka (35km) & Bo- Kenema (65km) Draft Reports, Mouchel Parkman. Preliminary Draft Feasibility Report, March Final Environmental and Social Assessment and Management Report, March Technical Evaluation, Detailed Engineering Design, Preparation of Tender Documents : Upgrading of Lungi Airport Infrastructure Draft Revision B Reports, Mouchel Parkman Draft Feasibility and Design Report, January 2005 Environmental and Social Impact Assessment and Management Plan Final Report, January Port of Freetown Equipment Needs and Physical Expansion Feasibility Study (including Port Environmental Management Plan) Final Report, NIRAS, January nd Draft Final Road Sector Management Action Plan, Africon, January Contact point Contact: David Stephen Rudge Title: Task Team Leader Tel: (202) Fax: (202) Drudge@worldbank.org 11. For more information contact: The InfoShop The World Bank 1818 H Street, NW Washington, D.C Telephone: (202) Fax: (202) Web: