FOR OFFICIAL USE ONLY

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1 Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized Transport Sector Country Department AFCW3 Africa Region Document of The World Bank FOR OFFICIAL USE ONLY PROJECT PAPER ON A PROPOSED ADDITIONAL CREDIT IN THE AMOUNT OF SDR 12.7 MILLION (US$19.5 MILLION EQUIVALENT) TO THE REPUBLIC OF NIGER FOR A TRANSPORT SECTOR PROGRAM SUPPORT PROJECT February 25, 2013 Report No: NE This document is being made publicly available prior to Board consideration. This does not imply a presumed outcome. This document may be updated following Board consideration and the updated document will be made publicly available in accordance with the Bank's policy on Access to Information.

2 CURRENCY EQUIVALENTS (Exchange Rate Effective December 31, 2012) Currency Unit = Franc CFA Franc CFA = US$1 US$0.651 = SDR 1 FISCAL YEAR January 1 - December 31 ABBREVIATIONS AND ACRONYMS AF AFD AfDB ARMP BEEEI BOAD CAFER CAS CC/PST CNUT CPTP CTS/PST DEP DGER DSR DTT EC EDF EIA EMP EOI ESIA ESMP Additional Financing French Development Agency (Agence Franqaise de Diveloppement) African Development Bank Public Procurement Regulatory Authority (Autorit de Rfgulation des Marchis Publics) Environmental Impact Assessment Bureau (Bureau de l'evaluation Environnementale et Etudes d'impact) West African Development Bank (Banque Ouest-Africaine de Diveloppement) Road Fund (Caisse Autonome de Financement de l'entretien Routier) Country Assistance Strategy Program Coordination Unit (Cellule de Coordination du Programme Sectoriel des Transports) Nigerien Council of Transport Users (Conseil Nigdrien des utilisateurs du Transport) Training Institute of the Ministry of Equipment (Centre de Perfectionnement des Travaux Publics) Technical Steering Commitee of PST (Comit Technique de Suivi du PST) Directorate of Studies and Programs (Direction des Etudes et de la Programmation, Ministire de I'Equipement et Ministire des Transports) General Directorate of Roads Maintenance (Direction Gndrale de I'Entretien Routier) Directorate of Road Safety (Direction de la Scuriti Routidre) Land Transport Directorate (Direction des Transports Terrestres European Commission European Development Fund Environmental Impact Assessment Environmental Mitigations Plan Expressions of Interest Environmental and Social Impact Assessment Environmental and Social Management Plan

3 EU GDP GoN IBRD ICB IDA IP IRR LNTP M&E ME MT MTR NCB PAD PAPST PCU PDO PP PRSP PST RAI RAP RED RFP RN RPF SDR SIA SIL SIM TSP TSPSP UNDB European Union Gross Domestic product Government of Niger International Bank for Reconstruction and Development International Competitive Bidding International Development Association Implementation Performance Internal Rate of Return National Laboratory of Civil Engineering, Public Works and Housing (Laboratoire National des Travaux Publics et du Batiment) Monitoring and Evaluation Ministry of Equipment Ministry of Transport Mid Term Review National Competitive Bidding Project Appraisal Document Transport Sector Program Support Project (Projet d'appui au Programme Sectoriel des Transports) Program Coordination Unit Project Development Objectives Project Paper Poverty Reduction Strategy Paper Transport Sector Program (Programme Sectoriel des Transports) Rural Access Index Resettlement Action Plans Roads Economic Decision Model Request for Proposal National Road (Route Nationale) Resettlement Policy Framework Special Drawing Rights Social Impact Assessment Specific Investment Loan Sector Investment and Maintenance Loan Transport Sector Program Transport Sector Program Support Project United Nations Development Business Vice President: Country Director: Sector Director: Sector Manager: Task Team Leader: Makhtar Diop Ousmane Diagana Jamal Saghir Supee Teravaninthorn Aguiratou Savadogo-Tinto

4 REPUBLIC OF NIGER TRANSPORT SECTOR PROGRAM SUPPORT PROJECT ADDITIONAL FINANCING CONTENTS Page Additional Financing Data Sheet...i I. Introduction... 1 II. Background and Rationale for Additional Financing in the amount of US$19.50 million... 3 III. Proposed Changes... 5 IV. Appraisal Summary Annex 1: Revised Results Framework and Monitoring Annex 2: Operational Risk Assessment Framework (ORAF) Annex 3: Procurement Arrangements Annex 4: Allocation and Disbursement Annex 5: Transport Sector Program Support Project and the Proposed Additional Financing of Road Sections Map... 23

5 REPUBLIC OF NIGER TRANSPORT SECTOR PROGRAM SUPPORT PROJECT ADDITIONAL FINANCING PROJECT DATA SHEET Basic Information - Additional Financing (AF) Country Director: Ousmane Diagana Sectors: Rural and Inter-Urban Roads and Sector Manager/Director: Supee Highways (81%); Central government Teravaninthorn/Jamal Saghir administration (19%) Team Leader: Aguiratou Savadogo -Tinto Themes: Infrastructure services for private Project ID: P sector development (50%); Other public Expected Effectiveness Date: June 28, sector governance (25%); Rural services and 2013 infrastructure (25%) Lending Instrument: Sector Investment Environmental category: revise to "B partial and assessment" Maintenance Loan (SIM) Expected Closing Date: December 15, 2015 Additional Financing Type: Cost Overrun Joint IFC: NA and Scale up. Joint Level: NA Basic Information - Original Project Project ID: P Environmental category: B partial assessment Project Name: Transport Sector Program Expected Closing Date: December 15, 2013 Support Project Lending Instrument: SIM Joint IFC: NA Joint Level: NA AF Project Financing Data [ ] Loan [X] Credit []Grant [ ] Guarantee [ ] Other: Proposed terms: Standard IDA terms AF Financing Plan (US$m) Source Total Amount (US $m) Total Project Cost: Co-financing: Borrower: 0.14 Total IDA Financing: IBRD IDA: New Recommitted Client Information Recipient: Republic of Niger Responsible Agency: Cellule de Coordination du PST Contact Person: SINA Moumouni Telephone No.: Fax No.: Pdil- Papst Pri <pdilpapst@yahoo.fr>, PRI NIGER <pri@intnet.ne>, sina.moumouni(&,yahoo.fr i

6 AF Estimated Disbursements (IDA FY/US$m) FY FY14 FY15 FY16 Annual Cumulative Project Development Objective and Description Original project development objective: The project development objectives (PDO) are to: (i) improve the physical access of rural population to markets and services on selected unpaved sections of the Recipient's national road network; and (ii) strengthen the Recipient's institutional framework, management and implementation of road maintenance in Niger. Revised project development objective: The PDO remains unchanged. Project description: The achievement of the PDO is supported by two major components: * Component A - Periodic maintenance and rehabilitation of unpaved roads. * Component B - Institutional support to the main transport sector players through provision of capacity building and assistance in management and execution of road maintenance activities. Safeguard and Exception to Policies Safeguard policies triggered: Environmental Assessment (OP/BP 4.01) [X]Yes [ ] No Natural Habitats (OP/BP 4.04) [ ]Yes [X] No Forests (OP/BP 4.36) [ ]Yes [X] No Pest Management (OP 4.09) [ ]Yes [X] No Physical Cultural Resources (OP/BP 4.11) [X]Yes [ ] No Indigenous Peoples (OP/BP 4.10) [ ]Yes [X] No Involuntary Resettlement (OP/BP 4.12) [X]Yes [ ] No Safety of Dams (OP/BP 4.37) [ ]Yes [X] No Projects on International Waterways (OP/BP 7.50) [ ]Yes [X] No Projects in Disputed Areas (OP/BP 7.60) [ ]Yes [X] No Is approval of any policy waiver sought from the Board (or MD if RETF operation is RVP approved)? Has this been endorsed by IDA Management? (Only applies to Board approved operations) Does the project require any exception to IDA policy? Has this been approved by IDA Management? [ ]Yes [X] No [ ]Yes [ ] No [ ]Yes [X] No [ ]Yes [ ] No Conditions and Legal Covenants: Financing Agreement Description of Date Due Reference Condition/Covenant Article V (a) The Recipient has Effectiveness recruited the following staff for the Project, each with terms of ii

7 reference, qualification and experience satisfactory to the Association, in accordance with the provisions of Section III of Schedule 2 to this Agreement: (i) a coordinator; (ii) a financial management specialist; (iii) a procurement specialist; (iv) a monitoring and evaluation specialist; and (v) an accountant Article V (b) Recipient has Effectiveness established a clear and efficient mechanism for the direct payment of fuel levy for road usage to CAFER, and paid an amount of 5.9 billion Francs from the African Financial Community to CAFER, owed by the Recipient to CAFER for arrear payments for road maintenance financing accrued during previous years. Article V (c) The Recipient has: (i) Effectiveness opened the Project Account in accordance with the provisions of Section I.F.2(a) of Schedule 2 to the Financing Agreement; and (ii) paid into the Project Account as Counterpart Funds an amount approximately equivalent to not less than one hundred and forty thousand (140,000) Dollars in accordance with the 111

8 provisions of Section I.F.2(b)(i) of Schedule 2 to the Financing Agreement. This counterpart fund is for the financing of Schedule 2, Section I / F 2(b)(i) operating costs incurred on account of Project implementation, management and monitoring and evaluation by Focal Points, CP/PST, and CTS/PST and probable compensation for safeguards and severance payment Schedule 2 / Section I / F (1)(b) Inclusion of an amount No later than October 15, 2013, and and (c) satisfactory to the October 15 of each year thereafter Association in the draft annual budget law to be submitted to Parliament, in order to (i) increase the annual resources for the financing of road maintenance (through direct payment to CAFER of fuel levy for road usage as well as supplemental grants from the Recipient if needed) and (ii) finance activities included in the annual work plans and budgets not funded by donors; and quarterly provision to the Association of evidence that the funds have been made available to CAFER. Schedule 2./.Section II.B.4 the Recipient shall Not later than six months after engage independent effectiveness date auditors iv

9 I. Introduction REPUBLIC OF NIGER TRANSPORT SECTOR PROGRAM SUPPORT PROJECT ADDITIONAL FINANCING 1. This Project Paper (PP) seeks the approval of the Executive Directors to provide an additional credit in an amount of Special Drawing Rights (SDR) 12.7 million (US$19.50 million equivalent), to the Republic of Niger for the Transport Sector Program Support Project (TSPSP, Projet d'appui au Programme Sectoriel des Transports, PAPST), Project ID No. P101434, IDA Grant No. H378-NE. This additional credit will help finance the cost overruns under Component A (Periodic maintenance and rehabilitation of unpaved roads) that have arisen during the implementation of the project due to higher than expected road works costs, and to scale up some activities (see paragraph 7 below) under Component B (Institutional support to the main transport sector players) of the existing project. It will also help enhance the project's development impact and effectiveness. An official request for this Additional Financing (AF) was received from the Government of Niger, on April 4, The proposed AF will complement the original project and scale up the project's impact and effectiveness in the densely populated rural areas of the Dosso, Tillabery, Zinder, Maradi and Tahoua regions of southwestern and southern Niger. The project will improve rural mobility and linkage to markets and access to health and education centers. Road side village's population will benefit from temporary jobs created by the roads works 3. The proposed AF is consistent with the Project Development Objectives (PDOs) of the TSPSP, which was designed to support part of the Republic of Niger's National Transport Strategy adopted in 2004, and is fully in line with the National Road Transport Strategy objectives, to which the donors have agreed to support the government of Niger. The proposed AF meets the criteria of suitability and appropriateness as defined in Operations/IDA Policy (OP/BP 13.20) for the following reasons: (a) allows completion of the project activities for which there is a cost overrun; and (b) finances additional activities that allow the scaling up of the project's impact and development effectiveness. 4. Under the proposed AF, the project components will remain the same as in the original project, with some minor changes consisting of adding three newly created transport sector departments to be covered by Component B of the proposed project. The project will provide institutional support to the following newly created departments: (a) the National Laboratory of Civil Engineering, Public Works and Building (Laboratoire National des Travaux Publics et du Batiment, LNTPB), (b) the Training Institute of the Ministry of Equipment (Centre de Perfectionnement des Travaux publics, CPTP), and (c) the Nigerien Council of Transport Users (Conseil Nigerien des Utilisateurs du Transport, CNUT). 5. Component A (Periodic maintenance and rehabilitation of unpaved roads), consists of: (a) preparation of bidding documents; (b) execution of civil works on 6 lots of road sections; (c) supervision of civil works; and (d) monitoring and evaluation of project implementation and 1

10 impact. All these activities aim at improving access to markets and services for the population. Component A will be executed by the General Directorate of Roads Maintenance (Direction Gndrale de 'Entretien Routier, DGER) under the overall coordination of the Program Coordination Unit (Cellule de Coordination du Programme Sectoriel des Transport, CC/PST). 6. Component B (Institutional support to the main transport sector players through provision of capacity building and assistance in management and execution of road maintenance activities), provides: (a) technical assistance for capacity building in the Ministry of Equipment (ME) and its departments (Directorate of Studies and Programs - Direction des Etudes et de planification, DEP), DGER, LNTPB and CPTP); the Ministry of Transport (MT) and its departments (DEP, Land Transport Directorate - Direction des Transports Terrestres, DTT), Directorate of Road Safety (Direction de la Scuriti Routiere, DSR, and CNUT); the Road Fund (Caisse Autonome de Financement de 'Entretien Routier, CAFER); and the CC/PST, including monitoring of the TSP (Transport Sector Program, Programme Sectoriel des Transports, PST) and project indicators, management of planning and procurement activities, contract management, and road safety; (b) equipment and small works for programming and planning of road maintenance, road safety, collection and monitoring the TSP and project indicators; (c) multi-level training program to strengthen the capacities of the different transport sector entities, including development of planning tools, project preparation, quality assurance, contract management; (d) carrying out of sector studies; and (e) support to the CC/PST for the preparation, implementation and monitoring of the TSP and the TSPSP/AF, including the operating costs of the project; the cost of protocol with the Environmental Impact Assessment Bureau (Bureau de l'evaluation Environnementale et d'etudes d'impact, BEEEI) for safeguards monitoring; and the cost for the capacity building of the coordination unit. 7. The proposed project result indicators and targets have been updated during the preparation of the proposed AF to retrofit core indicators for the transport sector. The proposed AF activities will be monitored through these updated indicators and the results framework. 8. Partnership arrangements. The proposed AF is not co-financed with any other development partner. However, together with the IDA, several development partners are supporting the objectives of the Government of Niger's (GoN) Transport Sector Program. The TSPSP funded by IDA is in support of the TSP which is funded through parallel financing arrangements by other development partners under separate operations and procedures. The European Commission (EC), the African Development Bank (AfDB), the West African Development Bank (Banque Ouest-Africaine de Diveloppement, BOAD), and the French Development Agency (Agence Francaise de developpement, AFD) are the main financiers of the TSP. The EC is preparing its Tenth European Development Fund (EDF) for Niger and is planning to complement IDA's technical assistance to the ME and the MT, as well as financing the periodic maintenance of additional roads of the national network. Transport sector donors coordination is not formally set up. During every supervision mission, IDA took the opportunity to meet with the other donors based in Niger to discuss common issues of the sector. In this way EU and IDA are pushing together on the agenda of road maintenance system improvement. 2

11 II. Background and Rationale for Additional Financing in the amount of US$19.50 million 9. Country Context. Niger is one of the world's poorest and least developed countries, ranked 186 out of 187 countries on United Nations Development Program (UNDP) Human Development Index of The average real gross domestic product (GDP) growth rate for the period was about 3.1 percent due to poor climatic conditions. About 80 percent of the population lives in rural areas and derive their livelihoods from agriculture and livestock. The main drivers of economic growth are agriculture, mining, and more recently, the oil sector. Despite periodic setbacks due to droughts, conflict in the sub-region, and political instability, average real per capita GDP growth has been positive since 2000, reversing falling real per capita GDP during the 1990's. 10. Niger is a very large (1,267,000 square km) land locked country with a rapidly increasing population of about 16 million (growing at about 3.3 percent per annum, currently one of the highest population growth rates in the world) which is very unevenly distributed due to the large desert areas in the north of the country. This means that the travel distances between major cities can reach up to 1,500 km. Therefore, due to the need to connect the major population centers of the country, lack of railway infrastructure, the government faces major road rehabilitation and maintenance needs. Transport infrastructure is in a poor condition and the road network needs to be rehabilitated and expanded to support the country's economic development. 11. The country has limited resources for investment in the transport sector. In this context, the country continues to rely on development partner support to rehabilitate its road network. In , the original project was designed to help the country respond to the significant needs required to maintain and rehabilitate the road network. (The maintenance needs were quantified at about US$30 million a year for the core road network and at about US$52 million a year for the whole road network). 12. At present, GoN is required to refund ineligible expenditures to IDA that have occurred under a different project of the country portfolio. The Country Management Unit is actively working to resolve the matter. 13. The original project. The financing for the TSPSP was approved, as a grant, on April 29, 2008, for an amount of SDR 18 million (US$30 million equivalent), and declared effective on September 10, 2008, with the current closing date of December 15, Project objectives. The original objectives of the TSPSP, which are to: (a) improve the physical access of rural population to markets and services on selected unpaved sections of the national road network; and (b) strengthen the institutional framework, management and implementation of road maintenance in Niger, remain unchanged. 15. The achievement of the PDO is supported by two major components: Component A - Periodic maintenance and spot rehabilitation of unpaved roads; and Component B - Institutional support to the main transport sector players through provision of capacity building and assistance in management and execution of road maintenance activities. 3

12 16. Project implementation performance. The TSPSP is well on track in achieving the physical execution of activities, and most of the results indicators. The disbursement rate is about 93 percent or US$27.9 million against an initial amount of US$30 million. During the last twelve months, both the Implementation Performance (IP) and PDO were rated either as Satisfactory (S) or Moderately Satisfactory (MS). The PDO was rated MS due to the fact that out of the full targeted length of 1,056 km of unpaved roads of the national road network, which was planned at the beginning of the project, only 750 km (71 percent), was implemented by December 15, The project continues to be in compliance with all major legal covenants and there are no unresolved fiduciary, social and environmental issues. A social and environment audit was conducted, for the roads works already completed. The environment audit report was reviewed and cleared by IDA. The report concluded that the project has implemented most of the environment impact mitigation activities, provided advice on improving the preparation and implementation of ESMPs. 17. The design of the original project has not been modified. The activities proposed under AF for Component A are the rural road sections that could not be completed under the original project due to cost overruns. Some minor activities have been added under Component B, to enhance the project's development impact and effectiveness to achieve the original project objectives. The content of the proposed AF is compliant with the PDO of the TSPSP, the country's Poverty Reduction Strategy Paper (PSRP) and IDA's Country Assistance Strategy (CAS) for the period (Report No IDA/R ) ( ), the country policy note of and the World Bank's Africa Strategy. 18. Rationale for AF. The proposed AF is required to finance an unanticipated cost overrun in implementing Component A of the project caused by higher than expected road works costs. While the TSPSP is well on track in terms of physical execution of activities, disbursement, and most of the results indicators, the project could not fund the proposed number of km initially planned for periodic maintenance (about 1,056 km) impacting the achievement of the PDO. The costs overruns were due to: (a) higher (35 percent more) than anticipated bid prices for the road maintenance works contracts, compared to the original Project Appraisal Document (PAD) estimates, primarily caused by an increase in petroleum products and road construction costs throughout Sub-Saharan Africa during that period ( ); (b) need to perform additional critical works on some of the project roads during execution of initial contracts, due to the additional damage/deterioration caused to them by the heavy floods of 2009; and (c) long time gap between when the engineering studies were completed and when the road works actually started leading to more deteriorated road surface conditions. 19. The original project design included two road works phases aimed at enabling more accurate and updated road maintenance works cost estimates during project implementation. Furthermore, as a result of the experience gained during the implementation of the first phase of road works, the time frame required to execute the second phase was considerably shortened to reduce the time gap between completion of the engineering studies and actual commencement of works, thus minimizing the risk of increased bid prices compared to bid estimates. Nevertheless, the cost increase during the first phase of the road works was unavoidable due to the factors cited in above paragraph 17. To further reduce the risk of cost overruns for the road works proposed under the AF, the technical studies have been updated, and more robust cost estimates for the 4

13 road works have been used. Finally, the procurement process for the proposed AF will be fast tracked to ensure that the road works contracts are awarded by credit effectiveness. 20. The proposed AF will enable the project to fully achieve the objectives of the Project through the implementation of Component A (Periodic maintenance and rehabilitation of unpaved roads) of the original project and to fund some additional activities to support institutional strengthening under Component B (Institutional support to main transport sector players). More specifically, the main activity by value that will be covered under the proposed AF is the periodic maintenance (Component A) of the remaining road length part of the unpaved national road network. About 750 km of roads have already been successfully maintained under the original project, while the remaining 306 km of roads are expected to be maintained under the proposed AF. The current closing date of the original project is December 15, 2013 and the proposed AF closing date is set for December 15, Alternatives considered to this proposed AF. The alternative of closing the project with a gap of non-executed road length maintenance works of 306 km was considered. However, this alternative would only lead to the partial achievement of key project objectives. More specifically, the 1,056 km of rural roads for maintenance under the original project had been carefully selected to maximize the opening of rural areas and link them to markets. The proposed AF is therefore necessary to fill the gap and complete the PDO of the original project, which aims at improving the physical access of rural population to markets and services on the selected unpaved sections of the national road network. Furthermore, under the current adverse economic climate, GoN does not have the budgetary means to directly fund the additional activities from its budget. III. Proposed Changes 22. Objectives and scope. The PDO and design of the proposed AF remains the same. Minor institutional strengthening and capacity building activities have been added to Component B to support three recently created road sector agencies. 23. The proposed AF activities are a continuation of the original project and will not affect the outcomes of the project. The proposed activities are as follows: * Component A: Periodic maintenance and rehabilitation of unpaved roads (about US$15.95 million). This component includes: (a) maintenance and rehabilitation of about 306 km of key roads composed of Balleyara (PK RN25 )-Tabla-Loga (40 km), Dogonkiria-Bagaroua (66 km), Maradi-Madarounfa-Fronti&re Nig6ria (54 km), Tessaoua-Gabaouri-Korghom (47 km) and Kell6-Gour6 (99 km) subdivided into two sections [RN 11 PK7-RN34 PK61 (Kell6-Gour6) (61 km) and RN34 PK61-RN34 PK 121 (Kell6-Gour6) (38 km)]; (b) supervision consultancy services for the road works; and (c) technical audits. * Component B: Institutional support to the main transport sector players through provision of capacity building and assistance in management and execution of road maintenance activities (about US$3.55million). This component supports Component A by improving the management and sustainability of road maintenance. The specific 5

14 activities will complete those achieved under the original project, and include the following: (a) technical assistance for capacity building in the DEP/ME, DEP/MT, DGER, CAFER, CNUT, CPTP, LNTPB, DSR and CC/PST, including the monitoring of TSP and project indicators, management of planning and procurement activities, contract management, road safety, and sector reforms implementation; (b) equipment for programming and planning of road maintenance, laboratory, road safety, and collection and monitoring of TSP and project indicators; and (c) multi-level training program to strengthen the capacities of the different transport sector entities, including development of planning tools, project preparation, quality assurance, contract management; and (d) carrying out of sector studies. This component will also provide institutional support to the CC/PST for the preparation, implementation and monitoring of the TSP and the proposed AF. It will fund (a) the operating costs of the project; (b) the cost of protocol with the BEEEI for safeguards monitoring; (c) the cost of monitoring and evaluation of data collection; and (d) the cost for the capacity building of the coordination unit. Finally, the component will also provide institutional support to the Steering committee and the technical committee in charge of project implementation oversight. Table 1: Project Outcome Indicators Original Changes with Revised Target Proposed AF Target 1. Improved connectivity: Share of rural population with access to an all-season road (average Rural Access Index) has increased by 3% in the project area 2. Reduced transport time to operators transport (a) 2 hours from (a) 2 hours from (a) 5h00 time decreased by Balleyara to Balleyara to Banibangou Banibangou (a) 2 hours from Balleyara to Banibangou (from 9 to (b) 30 minutes (b) 30 minutes from Kollo-Kirtachi (measured 7hours) from Kollo- (b) Ih30 during the original in replacement of Maradi (b) 30 minutes Kirtachi Madarounfa ( was not rehabilitated during the from Maradi (c) 30 minutes Madaroufa from Tessaoua original project) (3h to 2h30) to Gabaouri- (not assessed) Khorgom 3. Number of rural people with access to an all-t season road in the project implementation area ,5,8 4. Roads in good and fair condition as a share of total classified roads 85%o No change 85%o 5. Size of the total classified network Not defined No change 6,278 Table 2: Project Costs by Component Original Changes with Revised Cost Proposed AF Cost Component A: Periodic maintenance and rehabilitation of unpaved roads Component B: Institutional support to the main transport sector players implementatio area Total

15 IV. Appraisal Summary 24. Proposed activities. The activities that are expected to be funded under the proposed AF are essentially the same as those funded under the original project: (a) rehabilitation of about 306 km of rural roads; (b) supervision of roads works; (c) technical audits; and (d) institutional support to the departments of the ME and the MT and CAFER. The GoN has accepted to make a provision of funds to the amount of US$0.14 million to finance part of the operating costs of the focal points', the steering committee and the technical committee in charge of the supervision of the project implementation as well as probable compensation for safeguards and severance payment. 25. Technical execution of the project. The implementation of the 306 km of rural roads rehabilitation will be executed by contractors procured through a competitive bidding process. Lessons learned from implementing the original project roads rehabilitation works have been incorporated in the proposed AF, and includes strengthened supervision and oversight by the GoN for the quality and timeliness of works execution; as well as timely reporting on the execution of environmental and social mitigation action plans. A disbursement plan has been established and will be monitored by the supervision consultant in coordination with the supervision unit inside the ME and reported to IDA regularly. 26. Institutional support to transport sector stakeholder. The institutional support for the activities funded under the proposed AF will benefit the implementing agencies. They are designed to strengthen their capacity to better manage and monitor their activities and the ones of the project. In addition, the proposed AF will finance some key equipment for the LNTPB, the CPTP and CNUT. Part of the operating cost linked to the management tasks to be performed by the Administration's staff will be co-financed by the GoN. 27. Implementation arrangements. The original project implementation arrangements will be retained for the proposed AF. More specifically, the project activities will be implemented through the ME (DEP, DGER, LNTPB and CPTP), the MT (DEP, DSR and CNUT) and coordinated by the existing CC/PST who is in charge of the fiduciary aspects of the project. For the proposed AF implementation, the focal point will be identified in the MT to complement those already in place in the ME. The focal points will work closely with the CC/PST and liaise with the Ministries during the project implementation. Since the Mid Term Review (MTR) of the original project, the implementation arrangements have been enhanced by putting in place two additional technical staffs (one engineer and one safeguards specialist) in the ME to ensure close day to day supervision of project activities. 28. Social and environmental safeguards implementation arrangements. The proposed AF, like the original project, is classified as Category B indicating that the environmental and social impacts are likely to be small-scale, site-specific and thus manageable at an acceptable level. The proposed civil works activities are similar in type and impact to what has already been funded under the original project. IDA will trigger a new safeguard policy (Physical Cultural Resources (OP/BP 4.11) in addition to the two already triggered for the original project Consisting of staff from GoN. 7

16 (Environmental Assessment (OP/BP 4.01) and Involuntary Resettlement (OP/BP 4.12). The Environmental and Social Management Plans (ESMPs) for those road segments that affect physical cultural resources will include appropriate mitigation measures. 29. The Environmental Impact Assessment (EIA), including the ESMP covering 13 sections of earth roads in five regions (Dosso, Tillaberi, Tahoua, Maradi and Zinder), and the Resettlement Policy Framework (RPF) of the original project, prepared and disclosed in-country and at IDA's Infoshop on December 31, 2007 and January 4, 2008, respectively, still apply since the proposed AF covers the same roads that were originally included under the project. An Abbreviated Resettlement Action Plan (ARAP) acceptable to IDA was prepared for the Balleyara-Banibangou road segment in August 2010, where four people were compensated for loss of land and assets. The Social Impact Assessment (SIA) conducted in 2007 and updated for the five roads sections of the proposed AF in October 2012, was consulted upon and reviewed, cleared and disclosed by IDA on January 9, Following are the roads sections concerned: Balleyara (PK RN25)-Tabla-Loga (40 km), Dogonkiria-Bagaroua (66 km), Maradi- Madarounfa-Fronti&re Nig6ria (54 km), Tessaoua-Gabaouri-Korghom (47 km) and Kell6-Gour6 (99 km) subdivided into two sections: RN1 1 PK7-RN34 PK61 (Kell6-Gour6) (61 km), and RN34 PK61-RN34 PK 121 (Kell6-Gour6) (38 km). 30. The SIA concluded that there would be no need to displace and compensate people within a strip of 10 meters of each side of the road on the respective road sections. Nevertheless, the assessment identified some localized negative impacts on some of the people living along the project roads during the roads rehabilitation works, and proposed corrective measures (through Social Impact Mitigation Action Plans) to be taken in order to protect population from the spread of Human Immunodeficiency Virus/Acquired Immunodeficiency Syndrome (HIV/AIDS), dust, accidents, and to sensitize the local population employed by contractors for non-qualified works. These mitigation measures have been budgeted for, and will be included in the bidding documents. An SIA prepared in May 2012 for the Kelle-Gour6 road section (Phase 2 of the road works) found that 15 people were compensated for loss of land and assets; a social audit on the Project Affected People (PAP) will be carried-out, and the GoN is to confirm that the compensation process is satisfactory. The EIA including ESMP was also updated in October 2012, and it was disclosed by IDA on January 9, Fiduciary aspects of the proposed AF. The TSPSP continues to be in compliance with all major fiduciary covenants and there are no pending financial management, procurement, social and environmental issues. The financial management system will remain the same and IDA's procurement procedures and guidelines will fully apply to the proposed AF activities. Furthermore, all the contracts for which procurement has not yet started will follow IDA's new procurement and consultants guidelines of January 2011 (Guidelines: Procurement Goods, Works, and Non-Consulting Services under IBRD Loans and IDA Credits, published by IDA in January 2011: and Guidelines: Selection and Employment of Consultants by World Bank Borrowers, published by IDA in January 2011). Detailed procurement arrangements are in Annex 3. "Guidelines on Preventing and Combating Fraud and Corruption in Projects Financing by IBRD Loans and IDA Credits and Grants", dated October 15, 2006 and updated January 2011, shall also apply to the Project. Finally, all of the project staff contracts should be approved by IDA, and staff recruited before credit effectiveness. 8

17 32. Monitoring and Evaluation (M&E). The M&E for the proposed AF will be based on the original project M&E system. The CC/PST, the focal points in the two ministries (ME and MT), are in charge of collecting and analyzing data to feed the results framework. The TSPSP key indicators will continue to be followed for the activities to be carried out under the proposed AF. The reporting system will be reinforced so that the safeguards indicators are better reflected in the reports. The achievement of the project development objectives will be measured using the following key indicators: (a) Rural Access Indicator (RAI) - proportion of population within 2 km of all-weather roads in the project area; and (b) transport time for operators in project selected areas; (c) Number of rural people with access to an all-season road in the project implementation area; (d) Roads in good and fair condition as a share of total classified roads; (e) Size of the total classified network. Intermediate outcome indicators related to the effects of adequate completion of road works and increased maintenance revenues will be monitored in order to measure the implementation performance through the two project components. The monitoring and evaluation arrangements to measure the development impact of the project are detailed in Annex 1. In addition, the project will support the collection of some TSP indicators such as the vehicle average daily traffic, which will provide a measure of real number of road users. 33. Economic Analysis. The methodology used for the economic analysis of the original project is the Roads Economic Decision (RED) model. The economic analysis of the proposed AF activities is fully consistent and coherent with what was used in the PAD for the TSPSP. The investment on each project road section should yield an Internal Rate of Return (IRR) higher than 12 percent to be considered acceptable. Despite the overall roads rehabilitation cost increase since 2008, the economic analysis for the original project continues to be viable. The updated analysis found a weighted IRR of 16 percent against 32.2 percent when the original project was prepared. 34. The economic analysis for the original project was carried out for nine road sections out of the 13 road sections included in the project. The analysis was done for a period of 10 years, adopting a discount rate of 12 percent. Based on the road conditions, roughness indexes of 4 to 10 were used for different sections, and a reasonable assumption of 10 percent traffic growth rate was made. Among those nine sections, five are being financed under the proposed AF. The overall length of the five roads sections that benefitted from an economic analysis is 224 km or about 73.2 percent of the total number of 306 km to be rehabilitated which is significant. 35. The results from the original project's economic analysis and the updated one for the road section covered by the proposed AF are given below. The evaluation showed that all the five sections have an IRR equal to or higher than 12 percent. The one with an IRR of 12 percent is a short road section with low traffic volume; this section has been selected to open up access to a large number of populations thus bringing significant socio-economic benefits. 9

18 Table 3: Results of the Analysis of Original Project Road No Traffic per day in Km IRR(%) Table 4: Additional Financing Road SectionS 2 IRR IRR Road At original AF Road sections recalculated number appraisal August and 66% and 34% Lot 1: Balleyara (PK RN25 )-Tabla-Loga 22% and 14% 338 (8+32=40 km) % Lot 2: Dogonkiria-Bagaroua (66 km) % Lot 3: Maradi-Madarounfa-Fronti&e Nig6ria (54 km) 18% % Lot 4: Tessaoua-Gabaouri-Korghom (47 km) 12% 721 Lot 5: RN1 1 PK7-RN34 PK61 (Kell6-Gour6)(61 km) Traffic <50% 721 Lot 6: RN34 PK61-RN34 PK 121 (Kell6-Gour6) (38 km) Traffic <50% 36. For the proposed AF roads works sections, the weighted updated IRR is 16 percent. The social benefit brought by this project is also important even if it is difficult to quantify it. More specifically, the proposed project roads will provide social benefits to local communities by improving the access to basic services and markets. For example, to access the nearest health center, it can take nearly eight hours on the Tabla-Loga road (20 km), and Dogon-Kiria- Bagaroua road (40 km) which will be significantly reduced once the road rehabilitation works are completed. Finally, it is estimated that rehabilitation and maintenance of the proposed AF roads will improve accessibility for nearly 242,000 people. 37. Readiness for implementation. The activities that are expected to be funded under the proposed AF have been fully prepared and are ready for early implementation. More specifically, the cost estimates, detailed engineering and bidding documents have been updated for the entire road rehabilitation works. ESMPs had been prepared and disclosed for all the roads sections (including those of the proposed AF) on December The updated ESIA was approved by IDA and disclosed in country on January 4, 2013 and at Info-Shop on January 9, The implementing agencies and the current Project Coordination Unit (PCU) are already fully mobilized to prepare and implement the proposed AF activities. Focal points will be identified in the MT to complement those already in place in the ME and will work closely with the CC/PST and liaise with the Ministries during the project implementation. 38. Since the MTR of the original project in January 2011, two technical staff/focal points (one engineer and one safeguards specialist) have been designated in the ME to ensure close day to day supervision of project activities. The road works bidding documents were finalized and submitted to IDA for review on February 6, This will ensure that the civil works procurement process can be completed by the proposed AF effectiveness. This means that the 2 Results of the analysis made at the preparation of the original project 10

19 planned road works are expected to start by the second quarter of fiscal year Thus, the readiness for implementation of the activities to be funded under the proposed AF can be considered as high. 39. Risks and Results. The overall risk during the preparation of the proposed AF is rated as Moderate. It has been assessed that the remaining risks identified will only have Moderate impact. Nevertheless, it is important to raise the risk of cost overruns for road works, if not implemented on time, or if there are major delays in the procurement process, or if there is an increase in cost parameters. The risks and their mitigation measures are listed in the Operational Risk Assessment Framework (ORAF) (see Annex 3). The summary of risk ratings are given in Table 5 below. Table 5: Risk Ratings Summary Risk Stakeholder Risk Implementing Agency Risk Rating Moderate - Capacity Moderate - Governance Moderate Project Risk Moderate - Design High - Social and Environmental Moderate - Program and Donor Moderate - Delivery Monitoring and Sustainability Substantial Overall Implementation Risk Moderate 40. Project closing date. The current closing date of the original project is December 15, The closing date of the proposed AF is December 15, Costs and financing plan. IDA will provide a Credit of about US$19.50 million, of which US$15.95 million will be allocated to the implementation of the periodic maintenance works on about 306 km of unpaved roads, and US$3.55 million for institutional support to the ME, and the MT (i.e., operating costs for the CC/PST and the implementing agencies CAFER, CNUT, LNTP, and BEEEI). GoN will provide about US$0.14 million to support part of the operating costs of the steering committee and the technical committee in charge of the supervision of the project implementation. Annex 5 includes the activities and estimated costs that the proposed AF is expected to fund. The original project and proposed AF costs are shown in Table 2, allocation and disbursement are shown in Annex IDA Policy Exceptions/waivers. No IDA policy exceptions or waivers are required for the proposed AF activities. 11

20 Annex 1: Revised Results Framework and Monitoring NIGER: Transport Sector Program Support Project-Additional Financing Table 1: Results Framework Revision to the Results Framework Comments/Rationale for Change Project Development Objective Improve the physical access of rural population to markets and services on selected unpaved sections of the national road network. Strengthen the institutional framework, management and implementation of road maintenance. PDO indicators No change No change Improved connectivity: Improved connectivity: Share of Slightly revised to reflect the Proportion of population rural population with access to an introduction of new Transport sector living within 2 km of the all- all-season road (average Rural core indicators. weather roads (average Rural Access Index) has increased by Access Index) has increased 3% in the project area. by 3% in the project area. Reduced transport time to Reduced transport time to Revised to include two road operators: transport time operators: transport time sections. decreased by 2 hours from decreased by: Balleyara to Banibangou, and * 2 hours from Balleyara to 30 minutes from Maradi to Banibangou, Madarounfa. * 30 minutes from Kollo to Kirtachi, and * 30 minutes from Tessaoua to Gabaouri- Khorgom Number of rural people with Revision included in the ISR to access to an all-season road reflect the introduction of new of which, Transport sector core indicator s Number of female beneficiaries (following the change in IDA with access to an all-season road. management decision to measure the sectors core indicators). Roads in good and fair condition Revision included in the ISR to as a share of total classified reflect the introduction of new roads. Transport sector core indicators. e.f Revision included in the ISR to Siewofk. treflect the introduction of new Transport sector core indicators ( 12

21 Intermediate Results indicators Number of Direct beneficiaries of Revision included in the ISR to the project reflect the introduction of new Core indicators. of which Female (percentage) This indicator aims to capture data relating to people or group of people who directly are benefiting from project interventions. Component A: Periodic Maintenance and Rehabilitation of Unpaved Roads: Adequate completion of works contracts Increased average daily DROPPED The team proposes to drop this traffic by category and sub- indicator because it is not category of users: measurable. The target of such Intermediates Means of indicator is difficult to set up as the Transport (IMT) non- increase of IMT on the road is not motorized, IMT motorized, attributed to the road rehabilitation buses, trucks, etc. only. The discussion with the client has shown that measuring this indicator is not relevant to the project PDO and is costly. Number of km of roads No Change maintained/rehabilitated under the project. Number of people benefiting This additional indicator will from short-term jobs capture short term jobs created and consequently amount of revenue distributed to local workers during works. Component B: Institutional Support in Management and Execution of Road Maintenance Increase of mobilized maintenance revenues Revenues mobilized by FCFA 7.5 billion by end of 2015 CAFER from fuel levy, tolls, and overloading have reached at least FCFA 5.6 billion by end of Annual execution rate of No Change During the three past years, due to maintenance budget is not Niger's economic, political and below 95% by regional security context, there have been shits in public expenditures leading to lower than planned funding for road maintenance. For this reason, the team prudently kept the same target as on * Indicate if the indicator is Dropped, Continued, New, Revised, or if there is a change in the end of project target value 13

22 Table 2: Revised Project Results Framework Target Values Data collection Project Outcomes Baseline Progress To Year 1 Year 2 Year 3 Indicators core Unit of Original Date Source/ Responsible for Measure AF baseline methodology data collection Start (2012) (2008) Project Development Objective indicators Direct beneficiaries of the project Number 2,261,751 2,388,280 2,486,170 2,506,137 Annual Surveys DGER of which female (percentage) Reduced transport time to operators: transport time decreased by: x (a) 2 hours from Balleyara to (a) Hours (a) 9 (a) 5 (a) 5 (a) 5 (a) 5 Banibangou (b) 30 minutes from Kollo- (b)hours (b) 2.45 (b) IhI8 (b) 1h30 (b) 1h30 (b) 1h30 Kirtachi (c) 30 minutes from Tessaoua to (c) Hours N/A (c) 3h (c) 3h (c) 2h30 (c) 2h30 Gabaouri-Khorgom Annual Surveys DGER Share of rural population with Percentage DGER access to an all-season road Annual Surveys Number of km, roads maintained/ Number ,000 1,056 DGER rehabilitated under the project Annual DGER reports Roads in good and fair condition as Percentage DGER a share of total classified roads Annual DGER reports Number of rural people with access End of to an all-season road in the project Number 2,437,532 2,575,408 2,575,408 2,830,949 2,853,685 annually area planned Surveys DGER roads works Number of female beneficiaries with End of access to an all-season road under Number the project 1,219,134 1,292,152 1,292,152 1,421,626 1,432,989 annually planned Surveys DGER works Component A: Periodic Maintenance and Rehabilitation of Unpaved Roads: Adequate completion of works contracts Size of the total classified network M actualized and disaggregated into: Kilometers Annual DGER reports DGER - National 10,652 10,652 10,652 10,652 10,652 - Regional 2,068 2,068 2,068 2,068 2,068 14

23 Number of people benefiting from End of short-term jobs Number NA annually planned Surveys DGER works Component B: Institutional Support in Management and Execution of Road Maintenance Increase of mobilized maintenance revenues Revenues mobilized by CAFER from fuel levy, tolls, and overloading have reached at least Value 3,500 5,600 5,800 6,000 7,500 Annual CAFER reports CAFER FCFA 6.2 billion by end of 2015 Annual execution rate of maintenance budget is not below Percentage 80% 95% 95% 95% 95% Annual CAFER reports CAFER 95% by

24 Annex 2: Operational Risk Assessment Framework (ORAF) NIGER: Transport Sector Program Support Project - Additional Financing Stage: Board Description: Risk Management: Project coordination may be difficult due to the fact that the The project has made provisions for operating costs to allow a smooth management and coordination focal points in the responsible ministries in charge of the of the project activities. technical implementation of the project have limited pav itd b The focal points pay incentives have been discussed at the preparation stage and counterpart funds to incentives to perform while the PCU team is better pa the project. pay them per diem have been agreed and put in the Financing Agreement. Resp.: Client Stage: Initial Due Date: N/A Status: Done Capacity Rating: Moderate Description: Risk Management: Implementation capacity and sustainability may be low. Implementation capacity has improved during the original project life for most of the project's aspects. The PCU procurement specialist left before December A procurement specialist is hired to carry out procurement activities In the meantime the project monitoring and Tight supervision of bidding process is underway to complete the process as quickly as possible. evaluation specialist who has procurement knowledge is Sustained support to the client by IDA's team to improve its procurement practice. overseeing the procurement process. Technical assistance to the ME and SMEs financed under the project and by the EU. There is a risk of slow procurement process. Resp.: IDA and Stage: NA De Date: Stats: Client Governance Rating: Moderate Description: Risk Management: Niger was ranked 134 out of 182 countries in 2011 by Government has created the national Agency of Public Procurement which is functioning well and Transparency International. The country is not listed in has taken good decisions during the procurement process. IDA's OPCS short list of countries with high systemic corruption. corrution.resp.: Client Stage: NA Due Date: Status: Design Rating: High Description: Risk Management: Risk of cost overrun for roads works if not implemented The proposed AF scope is implementable. Based on lessons learnt in the initial project on time or if there are major delays in the procurement implementation, unit costs have been estimated more realistically. The technical studies have been process. revised to include any additional road deterioration cost due to rainy seasons and the bidding documents have been submitted for a first IDA review on January 10, Selection process is expected to be closed by the effectiveness of the credit. 16

25 Resp.: Client and Stage: Due Date: project Status: Ongoing IDA Implementation evaluation Social & Environmental Rating: Moderate Description: Risk Management: The findings and recommendations of environmental and Audits have been carried out on the implementation of the first part of the project and endorsed by social assessment studies may not be properly IDA. Lessons learned in Phase 1 have been used to better implement Phase 2 of the original project. implemented. The institutional arrangement has been improved and the social and environmental aspects are better supervised by a technical staff designated for this task. This arrangement will be reinforced. Resp.: Stage: Due Date: Status: Program & Donor Rating: Moderate Description: Risk Management: The Transport Sector Program may not be implemented A transport policy note was prepared (in coordination with donors) and discussed with the new due to lack of enough funding and Government government. The transport strategy is updated and the main action plans are included in the country commitment to reforms in the transport sector. economic development paper prepared and submitted to all the sector donors. The strategy update has involved other donors. Action plans are under finalization by the client. For the reforms, IDA is implementing a series of Development Policy Operations which includes reforms for the sector. Resp.: Stage: Due Date: Status: Delivery Monitoring & Sustainability Rating: Substantial Description: Risk Management: Reforms on roads maintenance should continue to be supervised. The project Investment in the sector should be sustained by an will support activities to help the client speed up reforms in the sector and revise texts. The setup of efficient road maintenance management system. Roads a sustainable road maintenance system has been deeply discussed during project preparation and at maintenance reform has been supervised during the negotiations. The client has shown its concern for such a sustainable road maintenance system and project. The funds provision has varied along years. The committed to pay all the arrears of funds due to CAFER and revise CAFER's legal documents by update of road fund regulation has been slowed down by the Additional Financing effectiveness. various changes made at the institutional level. Resp.: Client Stage: Due Date: Status: Implementation Risk Rating: Moderate Comments: The preparation process was fully participative with the client. Lessons learned from the original project implementation were taken into account in the preparation of the AF and will contribute to speed the implementation and reduce risks. 17

26 Annex 3: Procurement Arrangements NIGER: Transport Sector Program Support Project - Additional Financing 1. Procurement responsibility and accountability. Procurement activities will be carried out by the Ministry of Equipment (ME) for Component A and the Ministry of Transport (MT) for Component B. 2. The ME and MT will carry out the following activities: preparing bidding documents, draft Request for Proposal (RFP), evaluation reports and draft contracts. The Program Coordination Unit (Cellule de Coordination du Programme Sectoriel des Transport, CC/PST) procurement specialist will support all the procurement activities and will insure compliance with IDA procedures. These activities will include (a) preparation and updating of the procurement plan, (b) monitoring the implementation of procurement activities, (c) development of procurement reports 3. Procurement arrangements. Procurement would be carried out in accordance with the World Bank's "Guidelines: Procurement Goods, Works, and Non-Consulting Services under IBRD Loans and IDA Credits, published by IDA in January 2011: and Guidelines: Selection and Employment of Consultants by World Bank Borrowers, published by IDA in January "Guidelines on Preventing and Combating Fraud and Corruption in Projects Financing by IBRD Loans and IDA Credits and Grants ", dated October 15, 2006 and updated January 2011, shall apply to the Project. 5. Requirements for National Competitive Bidding. Works, goods and non-consulting services contracts will use National Competitive Bidding (NCB) procurement methods in accordance with national procedures using Standard Bidding Document acceptable to IDA and subject to the additional requirements. 6. In accordance with paragraph 1.16 (e) of the Procurement Guidelines, each bidding document and contract financed out of the proceeds of the Financing shall provide that (a) the bidders, suppliers, contractors and their subcontractors, agents, personnel, consultants, service providers, or suppliers shall permit the Association, at its request, to inspect all accounts, records and other documents relating to the submission of bids and contract performance, and to have said accounts and records audited by auditors appointed by the Association; and (b) the deliberate and material violation of such provision may amount to an obstructive practice as defined in paragraph 1.16 (a)(v) of the Procurement Guidelines: * Invitations to bid shall be advertised in national newspapers with wide circulation. * The bid evaluation, qualification of bidders and contract award criteria shall be clearly indicated in the bidding documents. * Bidders shall be given adequate response time (at least four weeks) to submit bids from the date of the invitation to bid or the date of availability of bidding documents, whichever is later. 18

27 * Eligible bidders, including foreign bidders, shall be allowed to participate. * No domestic preference shall be given to domestic contractors and to domestically manufactured goods. * Bids are awarded to the lowest evaluated bidder proven this bidder is qualified. * Fees charged for the bidding documents shall be reasonable and reflect only the cost of their printing and delivery to prospective bidders, and shall not be so high as to discourage qualified bidders. 7. Advertising. A comprehensive General Procurement Notice will be prepared by the Borrower and published in the United Nations Development Business online (UNDB online) following Board Approval, to announce major consulting assignments and any international competitive bidding (ICB). The General Procurement Notice shall include all ICB for works, goods, and non-consulting services contracts and all large consulting contracts (i.e. those estimated to cost US$200,000 or more). In addition, a specific procurement notice is required for all works and goods to be procured under ICB in UNDB online. Requests for Expressions of Interest (EOI) for consulting services expected to cost more than US$200,000 shall be advertised in UNDB online. An EOI is required in the national gazette, a national newspaper, or an electronic portal of free access for all consulting firm services regardless of the contract amount. In the case of NCB, a specific procurement notice will be published in the national gazette, a national newspaper, or an electronic portal of free access. Contract awards will also be published in UNDB, in accordance with IDA's Procurement Guidelines (paragraph 2.60) and Consultants Guidelines (paragraph 2.28). 19

28 8. Procurement methods and prior review thresholds Table 3.1: Thresholds for Procurement Methods and Prior Review Expenditure Contract Value Procurement Contract Subject to Category (Threshold) Method Prior Review US$ US$ 1. Works > 5,000,000 ICB All < 5,000,000 NCB <50000 At least 3 Quotations All No threshold Direct contracting 2. Goods > 500,000 ICB All < 500,000 NCB < 50,000 Shopping No threshold Direct contracting All 3. Consultants 3.1 Firms No threshold QCBS; LCS; FBS All contracts of US$200,000 and more 3.2 Individuals No threshold IC (at least 3 CVs) All contracts of US$100,000 and more No threshold Single Source All (Selection Firms & Individuals) All TORs regardless of the value of the contract are subject to prior review Regardless of the above thresholds, selected contracts in the Procurement Plan may be subject to prior review 9. Procurement Plan. A procurement plan for the proposed AF has been prepared and agreed with IDA during appraisal. The final version of this procurement plan has been discussed during negotiations and approved by IDA on January 14, During implementation, the procurement plan will be updated in agreement with the project team as required - at least annually - to reflect actual project implementation needs and improvements in institutional capacity. It will be available in the project's database and a summary will be disclosed on IDA's external website once the project is approved by the IDA's Board of Directors. 10. Supervision. In addition to prior reviews to be carried out by the Project Task Team, two field supervision missions are planned and at least one procurement post review per year. The Team's Procurement Specialist will provide continuous support to the implementing agencies. Independent procurement reviews will also be carried out if necessary. 20

29 Annex 4: Allocation and Disbursement NIGER: Transport Sector Program Support Project - Additional Financing Table 4.1- Estimated Amounts by Category of Expenditures Amount of the Percentage of Expenditures Category Financing Allocated to be Financed (expressed in US$) (inclusive of Taxes) (1) Goods, works and consultants' services for Part A of the Project (2) Goods, works and consultants' services, including Training, audits and Operating Costs for Part B of the Project (3) Unallocated TOTAL AMOUNT

30 Annex 5: Transport Sector Program Support Project and the Proposed Additional Financing of Road Sections NIGER: Transport Sector Program Support Project - Additional Financing Table 5.1 TSPSP and Proposed AF Road Sections No in Road section Lgth Region Comments RDB (km) AF road sections Priority section of the Dogondoutchi - Tahoua road for the opening up of the northern part of the Dosso region and the western part of the Tahoua region; 316 Dogonkiria - Bagaroua 66 Dosso complements work carried-out under the Transport Infrastructure Rehabilitation Project (Projet de Rdhabilitation des Infrastructures de Transports - PRIT). 611 PK RN25 - Tabla 8 Tillab6ry Opening-up of this part of the country, in 338 Tabla - Loga 32 Dosso complement of works carried-out under an European Uno(E)facig Union (EU) financing. Section of the National Road 18 (Route Nationale 405 Maradi - Madarounfa - 54 Maradi RN) allowing trade with Nigeria and connection Frontire Nig6ria between a highly populated zone and the town of Maradi. 721 PK7 RN 11 - K Complement of the road serving the area to the north PKr 99 Zinder of Zinder and alternative to the seasonal cuts on the Gourd RN1. Tessaoua-Gabaouri. In complement of the connection with the Trans- S (+Korghom) Saharan Highway, leading to Nigeria. Total AF roads sections 306 Original project implemented roads sections 509 PK 535 RN1 - Nigeria 25 Tahoua Section of the RN2 road allowing trade with Nigeria Priority section of the RN2, leading to Benin via the 305 Dioundiou - Bourelmi 69 Dosso important border city of Gaya, in complement of work completed under Swiss financing. Opening-up of this part of the country, in 629 Banibangou - Ball6yara 150 Tillab6ry complement of works carried-out under an EU financing. Trade corridor of agricultural products with Benin; 642 Kollo - Kirtachi 70 Tillab6ry complements work carried-out under FDA financing on the other side of Niger rive.r 56 Kelta - KDB PK 8780 (Kangui) Thu Connection between three populated areas. KDB PK 87 - Dakoro -. Opening-up of the zone in the north of Maradi. Soli Tagriss Parallel with the RN1. KDB PK Belb6dji- 145 Zinder Important for the distribution of the food aid. Sabon Kafi PK7 RN 11 - K Complement of the road serving the area to the north Zinder of Zinder and alternative to the seasonal cuts on the I RN1. Total roads section already 750 implemented 22

31 lo-e NIG E R.15'E 10 E.\L l B YA 1 NIGER i To Tarhi o SELECTED CITIES AND TOWNS A LiG E R I A o DEPARTMENT CAPITALS NATIONAL CAPITAL NIGER RIVERS Madama MAIN ROADS DEPARTMENT BOUNDARIES INTERNATIONAL BOUNDARIES This nap ~os produced by the Map Design Unit of The World Bank To Tmonrosset1 To Tam20nN The boundaries, colors, dnominabons and any other in"ortmo /n b shown on this map do not imply, Groop, ony judgmnent on the legal status of ony terntory, ony (1,944 m) endormennt or occeptance of such boundaries. on the port of The World Bank Mont Greboun A G A D E Z Kilometers Air M ts Miles Arlit Bilma MALI Agadez Ingal TAHOUA D F A. Gao Tabaradene 15 N - CHAD. 1''f1 Tahoua Tanout 15 N Keïta TI LL A B Rl Oio uya a1a rflnu ll oa Dlcr Nguigmni NiAMEY Birnin 01 MARADI a h e No \.Zinder Goure Maïné- Diffa. os Leve[-,Lk TO Magaria 1973 Level--- B U R KlI N A. DOSSO/ Konfagorta 2001 Level. Chad FASO NIGERIA ro 0 / BENIN ) 5 EKaduna10E5E»1 AtE 1 0 E1 1E