Terms of Reference: Advisory services on Transport Policy in Liberia Terms of Reference Advisory services on Transport Policy in Liberia VN: 81175992 PN: Capacity Development in the Transport Sector in Liberia Form 41-10-9-en 1
Terms of Reference: Advisory services on Transport Policy in Liberia Table of Content Table of Content 2 Abbreviations 3 1. General Approach 4 I. Introduction 4 II. Key issues of Consultancy 5 2. Terms of Reference 7 I. General Terms of Reference for the Firm of Consultants 7 II. Detailed specifications 8 III. Terms of Reference for the experts 11 IV. Specification of inputs 14 Form 41-10-9-en 2
Abbreviations AfT Agenda for Transformation ALCC Association of Liberian Construction Contractors BMZ Bundesministerium für wirtschaftliche Zusammenarbeit und Entwicklung Federal Ministry for Economic Cooperation and Development of Germany CCCS Contractors Classification and Certification System EIA Environmental Impact Assessment GIZ Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH GPS Global Positioning System HDM-4 Highway Development and Management Model -4 ILO International Labour Organization M&E Monitoring and Evaluation MOT Ministry of Transport MPW Ministry of Public Works MSME Micro, Small and Medium-sized Enterprise NTMP National Transport Master Plan of Liberia NTPS National Transport Policy and Strategy PP Public Participation PPP Public Private Partnership RA Road Authority RED Road Economic Decision Model RFA Road Fund Administration RI Road Inventory RMMS Road Maintenance Management System RMMU Road Maintenance Management Unit WP Work Package 3
1. General Approach I. Introduction Liberia is a fragile state and one of the world s least developed countries. Its citizens have lived through years of civil war and instability. It was ranked 175 out of 187 countries on the United Nations Human Development Index for 2014. Population growth, economic development and reconstruction in the wake of the crises all pose huge challenges on Liberia. According to the World Bank s World Development Indicators 2012, 84% of Liberians live below the poverty line of USD 1.25 a day. According to the International Labor Organization s (ILO) Liberia Labor Force Survey 2010, 79% of the population are in precarious employment, are self-employed or do unpaid work at home. The government budget for the 2013/14 financial year only amounts to approximately USD 550,000,000. The institutional apparatus is still weak, despite the improvements made in recent years. Corruption is endemic. Since mid-2014, the country experiences a severe Ebola-epidemic, which adds to the social and economic challenges. The growth expectations for the GDP have been halved to pre-ebola forecasts. The overall impact for the country can only be estimated so far. In late 2012, the Liberian Government launched its Agenda for Transformation (AfT) as a new poverty reduction and development strategy, replacing the Lift Liberia Poverty Reduction Strategy. The AfT covers the period from 2012 to 2017 and forms part of the Liberia Rising 2030 long-term national vision, which aims to achieve middle-income country status by 2030. The objective for the transport sector is to secure safe, reliable, accessible and efficient transport services throughout the country. Roads and bridges are considered to be the linchpin when it comes to offering public services and carrying out key economic activities. One of the AfT s sector goals is to improve year-round accessibility of roads and bridges. Upgrading road links across the country and enhancing the operational efficiency of the road sector (administration, construction and maintenance) through improved planning processes and by increasing the involvement of the private sector in construction and maintenance are considered to be key factors for political and social reconstruction. GIZ, under the commission of BMZ, has given support in the transport sector for the development of a National Transport Master Plan (NTMP) till its endorsement in 2012. The NTMP is also integrated in the AfT. The road maintenance management system in a pilot region has been set up since 2012. This is a transparent system for determining the measures and budget required for maintenance. The institutional and human resource capacities in the sector are improved, especially at Ministry of Public Works (MPW). With the Contractors Classification and Certification System (CCCS) and the support of Association of Liberian Construction Contractors (ALCC), important foundations for promoting Liberian micro, small and medium-sized enterprises (MSMEs) have been laid. Liberian MSMEs lack sufficient resources and capacity to participate in tenders and works implementation for road construction projects. Due to inadequate road maintenance and the lack of new road construction measures, Liberia s transport sector is in very poor condition. Investment is badly needed in the transport sector. The AfT anticipates the construction or 4
maintenance of over 13,000 kilometers of primary, secondary and urban roads by 2017. Nearly all of the reform projects described in the NTMP for the sector (e.g. road management and funding, public transport and traffic safety) are still awaiting country-wide implementation. The capacity of Ministry of Transport (MOT) and MPW outside the capital is weak when it comes to needs assessment and the implementation and monitoring of construction measures. In nearly all counties only one resident engineer is employed. Overall, the transport sector s performance capacity at legal, institutional and human resources level is low (core problem). II. Key issues of Consultancy The Firm of Consultants is expected to provide services to support the implementation of objectives as described in the NTMP. This will be done by supporting the staff of the ministries and the integrated expert of GIZ in MPW as well as in cooperation with the regular staff of the GIZ project. The consultancy will focus on Capacity Building, Policy Advice and Technical Advice on road maintenance and general transport policy issues. This may include Capacity Building for ministries and national agencies in road management and maintenance as well as strategic planning o study tours o workshops o peer-learning o training courses Policy Advice to national ministries: o drafting of policies o drafting of legislation o drafting of reform programmes Technical Advice: o drafting of national road standards o road and bridge inventory Consultancy will be given in close cooperation with local stakeholders as well as integrated experts of GIZ. The consultant needs to ensure that contributions of the stakeholders are appropriately addressed and incorporated in the various drafts results. Pro-active support to the stakeholder engagement at different levels of participation will be expected from the Firm of Consultants. It will work in close cooperation with the Management of the Ministry of Public Works, Ministry of Transport and the GIZ Transport Project in Liberia. The Firm of Consultants in collaboration with the GIZ project staff is expected to organize workshops and meetings with partners and stakeholders for capacity building and training of staff. Success of the provided support by the Firm of Consultants will be measured by the achievement of indicators as described in the project proposal of GIZ to BMZ (see Annex). Two of the five indicators described in the project-proposal will be directly connected to the work of the Firm of Consultants: 1. 4,000 kilometers of roadways (primary roads, secondary roads, access roads) are maintained on an ongoing basis. 5
Baseline value: 0 kilometers of roads in budget year 2012/13, 480 kilometers of roads planned in budget year 2013/14; target value: 4,000 kilometers of roads (primary roads, secondary roads, access roads) in budget year 2016/17; source: results of the analysis of MPW s road maintenance management system. 2. Five drafts of laws, implementing regulations or reform projects in the road sector based on the National Transport Strategy and the NTMP have been presented to the parliament or the cabinet or have been approved by the responsible ministry. Baseline value: 0; target value: five drafts have been presented or approved, starting from budget year 2014/15; source: announcement of implementing regulations and reform projects in newspapers or on the government s website, results of analysis of the agenda of the cabinet meetings (depending on the type of draft; drafts must be presented to the parliament or the cabinet or be approved by the responsible ministry). 6
2. Terms of Reference I. General Terms of Reference for the Firm of Consultants The Firm of Consultants will provide consulting services and technical assistance to the MOT and MPW to implement NTMP and NTPS. The Firm of Consultants works closely with and supports the project Capacity Development in the Transport Sector. The staff members seconded by the Firm of Consultants must cooperate closely with and adhere to orders from the project manager responsible for the commission by BMZ. Besides high technical competence, long-term experience in the sector as well as the region, advanced social sensitivity and intercultural competence are required to operate in the postconflict and now post-ebola situation. Reports are submitted every six months with a final report at the last month of contract based on the format of GIZ progress reports. All reports have to be written in English. Regular feedback shall be provided to the project manager after each assignment. Terms for missions shall be determined by the GIZ project staff before the beginning of each assignment. After an inception visit and a common workshop with GIZ, project management and local partners the Firm of Consultants should provide an Inception Report, including technical methodology and working plan. It is important to indicate that the project is within the objectives corridor defined above. The Firm of Consultants shall ensure that the Capacity WORKS management model is used. Results-based project implementation According to the agreement between GIZ and BMZ based on international commitments, objectives and results have to be achieved. Pre-defined indicators will prove the achievement. The framework of results-based project implementation allows greater flexibility on the input side. These two principles (results and greater flexibility) must be addressed in the service package offered by the Firm of Consultants. The above gives leeway with respect to the method proposed by the Firm of Consultants and to project implementation. In order to describe the success of a project, clear indicators that can provide evidence of the project results are needed. These are described in the project proposal (see Annex). Because of this, it is necessary to examine the conditions in the beginning and the situation at the end of the current project-phase. This should be taken into account in the service package to be drawn up by the Firm of Consultants. When preparing the service package, thought should be given to how to determine measurable values for the indicators in the key project phases, taking into account GIZ's principles on results monitoring. The Firm of Consultants is expected to act in agreement with the GIZ project staff and the partners, but respond to changes flexibly, especially if the project is in danger of straying from the defined results corridor (indicators above). All activities by the Firm of Consultants 7
are to be made in agreement with the GIZ project manager. In this context, the Firm of Consultants shall make appropriate use of the five success factors of GIZ's Capacity WORKS management model. Monitoring und evaluation GIZ attaches importance to monitoring of project developments. As in every project, developments that may lead to difficulties in a later project phase should be identified as early as possible. Furthermore, in view of the focus on results described above, results monitoring is crucially important. An efficient monitoring and evaluation system must be set up that allows our Liberian partners, the Firm of Consultants and GIZ to monitor project development and change strategy if necessary. The Firm of Consultants must therefore contribute to the existing monitoring and evaluation system. Care must be taken to align M&E with GIZ and Liberian partners to avoid the creation of parallel structures, and to ensure that use is made of already existing information. Here, too, the framework of a results-based project implementation must be adhered to. It is suggested that the M&E system is geared to the results chains. II. Detailed specifications Background: Policy development Since March 2008, the German government has been commissioning GIZ to implement the project Capacity Development in the Transport Sector in Liberia. So far, the National Transport Policy and Strategy (NTPS) and the National Transport Master Plan (NTMP) have been adopted and implementation efforts have started. Both documents will be given to the consultants for preparation of the task after contracting. These two core documents form the basis for strategic development of the whole transport sector, with specific focus on roads as the main mode of transport in Liberia. NTMP provides more detail from economic and engineering perspectives using scientific methodology through processes and procedures in sustaining the road network, by using the Road Economic Decision Model (RED) and Highway Development and Management Model -4 (HDM-4). After analyzing all of those processes and procedures the NTMP recommends a systematic way of implementing road rehabilitation and maintenance by instituting a Road Maintenance Management System. In the field of policy development, the project is working with the two line ministries of the sector, MPW and MOT. For MPW support was given to the planning- as well as to the technical department for further strategic and policy development. MPW has the mandate to manage all public infrastructures. Support to the MOT included strengthening its role in the sector and the decentralization of its services. MOT should be the government entity responsible for regulation and strategic planning of the Liberian transport sector. It currently also provides driver licensing and vehicle registration. 8
During the project term so far, several draft documents were developed and submitted to MPW and MOT: Environmental Impact Assessment (EIA), Public Private Partnership (PPP) Public Participation, draft act on RA/RFA, decentralization of driver licensing and standard contacts type for MSME. However, planning and implementation capacities within the ministries and changes on the political level hampered the execution process. Background: Road Maintenance Recent policy statements reiterate the government intentions to give the road sector its fullest attention in terms of infrastructure development and service delivery. However, the low commitment for road maintenance by the Liberian government is holding back progress, which also influences further donor inputs. In Liberia, the approach for road maintenance is based on the road maintenance strategy adopted by MPW. The strategy recommends the establishment of a Road Maintenance Management System (RMMS), setting up a Road Maintenance Management Unit (RMMU) and creating a Road Authority and Road Fund Administration. The first two conditions have been supported by the GIZ project in the last term. The RMMU is a unit specifically for planning and steering maintenance measures. RMMS is the software system used for processing and storing road related data. It will determine in a transparent way the required budget and regular works for road maintenance. Currently, Roughton RoMaps is the basic software in use. In 2012, a pilot region was set up and the system so far included road condition survey for primary and secondary roads, as well as budget calculation. However, due to budgetary constraints, no works contracts were awarded. For further implementation MPW needs to select major corridors for a pilot based on the ministry s priority. The Maintenance strategy strongly recommends the establishment of a Road Authority (RA) and Road Fund Administration (RFA) for dedicated management of road maintenance. The RA will be formed out of existing MPW structures, whereas the RFA is a completely new entity which is to collect revenue for road maintenance financed through fuel levy, road user and cross border charges, vehicle registration revenues etc. So far, GIZ has been supporting the ministry in drafting new legislation in the road sector, e.g. the Road Authority Act and the Act for Road Fund Administration. Additionally, the reformed classification system for construction contractors (CCCS) has been established within the MPW to strengthen implementation quality. During the project s recent phase, institutional and human capacities in the sector have improved, especially at MPW. Nevertheless, capacities remain low and ownership is still lacking. There has been intensive training in GPS for residents engineers of the ministry, and GIS training was successfully done for two engineers based in the ministry. The RMMU to some extend conducts surveys in collaboration with some of the donor partners who are working in line with MPW on road maintenance related issues. The MPW trained GPS technician s duty is to further support other resident engineers in the counties who have not benefited from the trainings so far. 9
Specific Requirements: The Firm of Consultants is expected to provide technical assistance to both ministries MOT and MPW in the implementation of the NTMP and NTPS. MPW shall be supported to improve the road maintenance management. Key to that will be the development of national standards and enhancing the road inventory including bridges. The road inventory (RI) is essential for financing road works or maintenance, it consist of reliable technical data that is needed for budgeting of road works. MOT is the lead ministry on the policies component of the NTMP and NTPS, through sector coordination. It ensures that recommendations in these two documents are implemented through a stakeholder dialogue within the transport sector. To be able to do this it is important to revive a NTPS secretariat for transport sector coordination to ensure full implementation. MPW has the lead on the technical components of the NTMP with respect to roads maintenance in establishing and implementing a Road Maintenance Management System. The scope of work is divided into two work packages (WP): WP 1: Technical assistance on development and implementation of national transport policies. The following policies are in discussion or under preparation o MPW: regulation on standardized procurements system o MOT: Road Safety regulation, Decentralization of basic services Additional topics have to be defined in cooperation with the political partners of the project WP 2: Implementation of a road maintenance management system Development of national, technical standards as well as safety standards for road works Enlargement of the national road inventory to national level and including bridges The Firm of Consultants has to bear in mind, that the institutional reform for road maintenance, including the foundation of a National Road Authority and Road Fund Administration, can have influence on the advisory work. Support for the reform might be part of the GIZ project, but under a different assignment. The inputs in WP2 have to be done in strong collaboration with two integrated experts in MPW. All activities have to be aligned with their work. Technical assistance includes the elaboration of legal drafts and strategies, decentralization of public services and capacity development on human and organizational level. 10
The Firm of Consultants shall provide intermittent experts and short-term experts with a total personnel input of up to 33 expert months. The team of experts should comprise of experts with international, regional and national experience, proven knowledge in road maintenance, financial and institutional set-up as well as in the development of transport-policies and strategies in developing countries. The profiles for the experts will be defined in accordance with the needs identified with the Liberian partners. However, the Firm of Consultants is requested to include CVs of available experts, indicating (international) experience, qualifications and language skills. III. Terms of Reference for the experts To achieve the specified objectives, GIZ expects the Firm of Consultants to provide an expert pool that covers the two work packages: - a pool of intermittent international short-term experts (WP1) (up to 18 personmonths) to provide consultancy services to the MPW and MOT on policy drafting and implementation and capacity development. - a pool of international short-term experts (WP2) (up to 8 person months) to provide consultancy services to MPW on road maintenance issues. All experts should be internationally experienced with good spoken and written English and preferably German language skills and be familiar with GIZ Capacity WORKS management model. Furthermore, capacity development experience should include public administration, preferably in developing countries. One member of the team is to be named team leader. The team-leader is to have excellent spoken and written skills of the English language. Also, at least the team leader should have significant experience in working in Liberia, the Mano River Union and fragile states in general. The dates and duration of the individual assignments are to be coordinated flexibly with the Liberian partners and GIZ. Assignment under WP2 might require travels to the countryside of Liberia. The contracting period is estimated to be from July 1 st, 2015 June 30 th, 2017 1. Keys tasks in the area of policy development: For WP 1, the Firm of Consultants shall provide the following services: 1. Technical assistance, including drafting of policies and regulations, to MOT and MPW for the advancement of policies in discussion; the core areas will be defined during the inception visit according to the priorities of the partners in the road-sector. 2. Support to both ministries in the identification of further relevant priority legislation and reform programs according to the NTMP and their advancement. 3. Capacitation of staff of relevant authorities on transport policy and legislation 11
(conducting workshops and training courses, support knowledge exchange and learning) 4. Support both ministries in implementing new legislation and reforms. In this WP the consultants shall directly contribute to the achievement of indicator 2 (see above): Five drafts of laws, implementing regulations or reform projects in the road sector based on the National Transport Strategy and the NTMP have been presented to the parliament or the cabinet or have been approved by the responsible ministry. A constant consultation with the partners to agree upon strategies and mid-term plans in the road-sector is mandatory. The consultancy relies on the national priorities of the government of the Republic of Liberia and is obliged to follow the national demands and strategies in the road sector. Therefore, a close cooperation with the partners and stakeholders to keep up to date is demanded. However, work plans and all work-steps will be discussed with the GIZ project manager and her/his representative. 2. Advisory functions under WP1 Provide advisory services to partners in drafting and implementation of standards, legislation and reform programs. Prepare respective draft documents to be forwarded to cabinet and parliament. Develop reform programs with partners based on the NTMP and be forwarded to the cabinet or adopted as regulations within the ministries. Providing assistance and liaise with MPW on drafting national technical standards for construction and maintenance and developing a safety standard for road works. Align activities with the efforts of implementing the Road Fund Administration and the Road Authority (not subject herein). Support capacity development on transport policy, strategic development and management within the partner ministries. This can be done through specific training, workshops or other suitable methods like e.g. on the job training. Ministry staff must be capacitated to develop and implement policies based on the NTMP on their own. 3. Key tasks in the area of Road Maintenance: For WP 2, the Firm of consultants shall provide the following services: 1. Technical Assistance to MPW on implementation of a road-maintenance management system, and on 2. Capacitation of staff of relevant units within MPW on road management and road maintenance (conducting workshops and training courses, support knowledge exchange and learning). These measures have to be aligned with the input of the integrated experts. 3. Design and setup an expert concept for expansion of the road inventory, including additional secondary roads, and establishing a bridge inventory. 12
4. Support in planning of road maintenance measures and their budgeting. The work of the consultants shall directly contribute to the achievement of indicator 1: 4,000 kilometers of road (primary roads, secondary roads, access roads) are maintained on an ongoing basis. 4. Advisory functions under WP2 Provide advice and support to strengthen the institutional setup for sustainable road maintenance Support capacity building through workshops, trainings etc. on road maintenance and construction with partners and relevant stakeholders. Specific topics and methods for capacity building will be determined together with GIZ project management and partners. Collaborate and align with Integrated Experts (IF/CIM), whose key tasks are the management of road and bridge inventory and conduction of a road condition survey. They are expected to deliver a complete inventory list of roads and bridges, including all relevant data, in collaboration with MPW and Resident Engineers) 5. Project management function The assignment requires several project management activities within both work packages. These shall be done by one team leader who is to be assigned for these tasks in advance. Functions include: 1. Provide support and expert advice to the GIZ project team, thus supporting to implement the German contribution in the partner country institutions. 2. Coordinating all activities with key stakeholders and ensuring transparency for the partner 3. Supporting GIZ project management in updating and adapting the project design based on principles of Capacity WORKS, and in preparing and adapting the plan of operations. 4. Identifying the need for short-term assignments, planning and steering the assignments, and supporting the local and international short-term experts 5. Monitoring and documenting work progress, ensuring an M&E system is in place 6. Support preparation and conduction of evaluations 7. Regular reporting every six months and providing a final report in the final month of the contract period. 6. Deliverables The firm of consultants is to deliver the following: 13
1. Inception report: An inception report should be issued by the end of week 4 from the start of the contracting period. The inception report shall confirm the detailed approach to the assignment, confirm the intended methodology, work plan and time schedule. Inception interviews with the partners are to be done and results included in the report too. The report should also point out critical elements in the study and indicate possible mitigation scenarios. A short review and further use of existing studies, policies and other documents should be included in the report. Also the inception report is to include results of the kick-off workshops and point out the needs and opinions of the partner organizations. 2. Draft Policies: The consultancy will deliver draft policies developed in cooperation with the partners, based on the national demands. 3. Regular reports: For both working packages the firm of consultants will deliver joint reports on the progress to the GIZ project manager. Mission reports are to be handed in after each assignment of STE, regular reporting is to be done every six month 4. Workshops: The firm of consultants will conduct at least two workshops for each work package. The first one is to be considered as a kick-off workshop to gather the opinions, interests and ideas of the major stakeholders as well as to develop a common idea for each work package. The kick-off workshops are to be conducted not later than 4 weeks after start of the contracting period. The documentation and results of these workshops are to be included in the inception reports. A wrap-up workshop at the end of the consultancy will summarize all activities and provide the partners as well as the project with further options for the future. Results of the wrap-up workshops are to be included in the final report. 5. Trainings: Various trainings in different topics concerning road maintenance as well as policy development are to be conducted and prepared. Training material is to be developed and given to the participating partners after the training courses. The total amount of trainings is to be clarified with the partners and GIZ project manager after the inception report. 6. Final report: The final report will conclude the consultancy. It is to be delivered in the final month of the contracting period. One key-element of the final report will be a conclusion with a future view on both work packages. The report should point out critical points for the future and give first ideas on how to solve them. The final report is to be discussed with GIZ project management before finalization. IV. Specification of inputs 1. Assignment of personnel WP 1: Pool of intermittent int. experts for up to 18 expert months. WP 2: Pool of short-term int. experts for up to 8 expert months. 14
2. Items of equipment The Firm of Consultants will procure office equipment (computer, printer, etc.) related to implementation up to a total value of EUR 10,000. All procurement has to follow GIZ rules and regulations. GIZ will provide one vehicle for the Firm of Consultants. A driver, maintenance and fuel costs will be covered by the Firm of Consultants. The Firm of Consultants will provide one apartment for their experts to cover accommodation. 3. Expendable goods The Firm of Consultants shall assume the operating costs for project vehicles and ongoing office costs in the partner country (costs for materials and telephone/fax etc.). GIZ will provide for water and electricity. 4. Partner inputs The local partners provide office-space for up to 2 persons. 5. Trainings, Workshops and upgrading The Firm of Consultants shall assume the costs for preparation, training materials, venue and feeding for trainings and workshops as well as own participation at stakeholder workshops up to EUR 100.000,00. Costs for participants must not be covered by the Firm of Consultants. 6. Flexible remuneration item A flexible remuneration item of EUR 95.000,00 shall be foreseen. 15
Capacity Development in the Road Transport Sector in Liberia, Project number ANNEX 1: PROJECT PROPOSAL Submission of an offer for implementing a follow-on phase at an estimated offer price of up to EUR 6,000,000 CRS purpose code: 21010 DAC and BMZ markers GG (Gender equality): 1 PD/GG (Participatory development/good governance): 1 UR (Environmental protection and resource conservation): 1 TD (Trade development): - DES (Combating desertification): 0 KLM (Climate change, greenhouse gas reduction): 0 KLA (Adaptation to climate change): 1 BTR (Biodiversity convention): 0 PBA (Programme-based approaches): 0 Action is required due to risks and/or potential in the fields of environmental protection and resource conservation, greenhouse gas reduction or adaptation to climate change; see annex on in-depth environmental and climate assessment. AO (Poverty orientation): MSA FS (Peace and security): 1 LE (Rural development and food security): 1 After a review of alternative options, the TC measure presented in the offer and its promotion are held to yield the most favourable relationship between the purpose of the TC measure and the funds to be used. Form 12-6-13-de
Table of contents List of abbreviations 18 A.1. Brief description 20 A.2 Context in the priority area 20 A.2.1 Goals and strategies of partner country in the priority area 20 A.2.2 Activities of other donors, harmonisation of donor contributions 21 A.3 Description of the German development cooperation programme 22 A.4 Proposed measures to be taken by BMZ 22 A.4.1 Measures within the scope of the political and priority area dialogue 22 A.4.2 Modifications to the delivery of German development cooperation 22 B.1 Brief description of the Capacity Development in the Road Transport Sector in Liberia project 22 B.2 Problem and potential analysis (related to the TC measure) 24 B.3 Description of the TC measure 26 B.3.1 Objectives and indicators 26 B.3.2 Target groups and other stakeholders 27 B.3.3 Executing agency and partner structures 28 B.3.4 Design of the TC measure 28 B.3.5 Total costs, commission value, partner inputs, combined financing, term/schedule 32 B.3.6 Results and risks of the TC measure 33 B.3.7 Declaration 36 Annexes Cost estimate and plan of outgoing funds by financial year Results matrix In-depth environmental and climate assessment 17
List of abbreviations AfDB African Development Bank AfT ALCC Agenda for Transformation, Liberia Liberia s growth and development strategy 2012 2017 Association of Liberian Construction Contractors CCCS Contractors Classification and Certification System, Liberia EU European Union HCD Human capacity development ILO International Labour Organization MSME Micro, small and medium-sized enterprises LRA Liberian Road Authority LRF Liberian Road Fund LRTF Liberia Reconstruction Trust Fund MOT Ministry of Transport, Liberia MPW Ministry of Public Works, Liberia NTMP National Transport Master Plan 18
OPRC Output- and performance-based road contracts USAID United States Agency for International Development 19
A.1. Brief description Not applicable as this is an individual proposal. See B.1 A.2 Context in the priority area A.2.1 Goals and strategies of partner country in the priority area In late 2012 the Liberian Government launched its Agenda for Transformation (AfT) as a new poverty reduction and development strategy, replacing the Lift Liberia Poverty Reduction Strategy. The AfT covers the period from 2012 to 2017 and forms part of the Liberia Rising 2030 long-term national vision, which aims to achieve middle-income country status for Liberia by 2030. The objective for the transport sector is to secure safe, reliable, accessible and efficient transport services throughout the country. Roads and bridges are considered to be the linchpin when it comes to offering public services and carrying out key economic activities. One of the AfT s sector goals is to improve year-round accessibility of roads and bridges. Upgrading road links across the country and enhancing the operational efficiency of the road sector (administration, construction and maintenance) through improved planning processes and by increasing the involvement of the private sector in construction and maintenance are considered to be key factors for political and social reconstruction. The strategy also calls for the use of labour-intensive technologies to reduce unemployment. Participation of stakeholders and local administrations in road construction planning and monitoring construction projects is to be improved. While road construction is to continue to be financed largely by international donors, the costs of road maintenance are increasingly to be financed from the government s budget. When it comes to prioritising the measures for roads and bridges, and the road maintenance strategy, the AfT refers to the National Transport Master Plan (NTMP), which is supported by the technical cooperation measure. The NTMP was adopted in May 2012 as a basis for planning for the next ten years. The debate that preceded its approval demonstrated that new construction and paving of roads continues to be a high political priority. The Ministry of Public Works (MPW) is responsible for achieving the AfT s goals for roads and bridges, while the Ministry of Planning and Economic Affairs is responsible for overall implementation of the AfT. The associated monitoring system requires surveys to be conducted at three-month intervals. The participating ministries, such as the Ministry of Transport (MOT) and MPW, will supply their data for this. Private sector development is one of the AfT s superordinate objectives for creating employment and prosperity, as well as for reducing poverty. Since 2012, the Liberian Government has increasingly considered measures to fight youth unemployment and promote youth employment. When selecting sectors to be promoted, a key factor that speaks in favour of Liberia s infrastructure and roads sector is the employment and poverty reduction potential that can be realised in the medium term. In the budget for 2012/13 which forms part of a medium-term financial planning process for the first time the largest individual item among the national priority programmes is the 20
infrastructure sector, comprising ports, roads and power, as well as internet technology. Goodquality nationwide road links, particularly between Monrovia and the regional administrative centres, are seen as essential for national political and social reconstruction and are connected with the Ministry of Planning s economic corridors scheme. Infrastructure is also a priority for the 2013/14 budget, which provides USD 553,000,000 in national funds and foresees an additional USD 648,000,000 in donor funding (2012/13: USD 672,000,000 budget funds and USD 487,000,000 donor funding). This increase in donor funds is at odds with the government s earlier declaration of intent to reduce this funding by 2016. A.2.2 Activities of other donors, harmonisation of donor contributions Other donors such as the World Bank, the African Development Bank (AfDB), the European Union (EU), Norway, Sweden and the United States are focusing their inputs on financing infrastructure projects (road construction and rehabilitation, energy supply, ports, rehabilitation of public buildings, etc.), both as contributors to the Liberia Reconstruction Trust Fund (LRTF) administered by the World Bank, as well as in their own measures. As stated in the new European Development Fund (EDF), the EU will no longer provide funding for the road sector in future. Activities in the education sector will be expanded. The World Bank is currently still implementing a project for constructing over 200 kilometres of access roads on behalf of the EU. The Kuwait Fund and AfDB plan to pave individual primary roads. For this undertaking, AfDB will use a traditional form of contract rather than the output- and performance-based road contracts (OPRCs) approach promoted by the LRTF. According to AfDB, the traditional form of contract (road construction and maintenance awarded in two lots) is cheaper and quicker to execute. The costs of rehabilitating and maintaining 249 kilometres of roads through OPRCs will be financed for a period of ten years via the LRTF. Furthermore, projects will be financed in the urban road sector in Monrovia. The government is still unclear about the LRTF s future role. The contractors carrying out road construction measures financed by the LRTF through OPRCs are exclusively Chinese construction firms. Japan is planning to upgrade a primary road in Greater Monrovia and Sweden is funding the construction of rural access roads in Lofa and other regions amounting to 560 kilometres. The United States Agency for International Development (USAID) is planning a road construction programme for rural access roads in several Liberian regions amounting to approximately USD 35,000,000. Implementation of the programme has been delayed since 2012, however. USAID is also involved in academic education. Working with Liberian universities, it is improving teaching and access to academic education, especially in the areas of agriculture and engineering. Capacity development is only available through German technical cooperation activities (for rural access roads, Sweden is providing this service to a limited extent). All other contributions are specifically earmarked for road construction measures. Both the World Bank and the EU are seeking support, primarily to address the fact that neither a Liberian Road Authority (LRA) nor a Liberian Road Fund (LRF) has yet been set up, and to pave the way for the transformation of the Infrastructure Implementation Unit (IIU) at MPW (which is financed by the World Bank) into an LRA. There is a good chance that the EU will provide cofinancing for advisory services that facilitate this institutional reform. 21
There is a regular exchange of information between the Liberian Government and the donors and implementing organisations, especially the EU, USAID, Sweden, Japan, AfDB, the World Bank and Germany. Based on the cooperative approaches adopted under the aegis of the EU, and supported by a provisional secretariat organised by the German technical cooperation actors, coordination meetings take place at MPW every two months. At these meetings, activities are agreed and issues of common interest are discussed. Improved coordination is needed, as funding is still being provided for road construction projects without making arrangements for future maintenance. Meetings have been held with Sweden, USAID and the World Bank on the role and development of MPW s Road Maintenance Management Unit. The meetings focused on how the unit can support new donor-financed projects if in future road maintenance measures introduced with the support of the technical cooperation measure are also expanded to include other counties beyond the pilot region. As individual donors, such as Sweden, provide further training for Liberian construction contractors, German technical cooperation actors also conduct regular meetings to coordinate training measures. A.3 Description of the German development cooperation programme Not applicable as this is an individual proposal. A.4 Proposed measures to be taken by BMZ A.4.1 None Measures within the scope of the political and priority area dialogue A.4.2 None Modifications to the delivery of German development cooperation B.1 Brief description of the Capacity Development in the Road Transport Sector in Liberia project Liberia is a fragile state and is one of the world s least developed countries. Its citizens have lived through years of civil war and instability. The institutional apparatus is still weak, despite the improvements made in recent years. Nearly all of the reform projects described in the NTMP for the sector (e.g. road management and funding, public transport and traffic safety) are still awaiting country-wide implementation. Due to inadequate road maintenance and the lack of new road construction measures, Liberia s transport sector is in very poor condition. In the budget year 2013/14, 480 of the total approximately 5,000 kilometres of primary and secondary 22
roads were maintained for the first time. The capacity of MOT and MPW outside the capital is weak. The core problem is the low performance capacity of the transport sector at legal, institutional and human resources level. The module objective is as follows: Performance capacity in the transport sector is improved at legal, institutional and individual level. The technical cooperation measure supports the government with improving performance capacity in the transport sector at legal, institutional and individual level. The main thrust of the measure involves implementing the national sectoral reform, with a focus on the road sector. The measure aims to expand road maintenance management from the pilot region (stretching from the area to the west of Monrovia to the border with Sierra Leone) to other regions that have not yet been selected. Additionally, youth employment promotion measures are to be integrated in the road sector in order to strengthen the performance capacity of the private sector. Traffic safety measures will aim to reduce the negative impacts of traffic growth. The technical cooperation measure works with the government, business associations and representatives of civil society at national level and increasingly in the counties. The project focuses on three fields of activity that contribute to achieving the module objective: (1) improving road maintenance, (2) implementing laws, strategies and reform programmes, and (3) employment promotion. The project cooperates with the Association for Liberian Construction Contractors (ALCC) in the following areas: monitoring the labour market, providing careers guidance, determining current and future training needs, and designing needed training content. The term of the technical cooperation measure is three years (August 2014 July 2017) and the German technical cooperation contribution will cost to up to EUR 6,000,000. 23
B.2 Problem and potential analysis (related to the TC measure) Liberia is a fragile state and is one of the world s least developed countries. Its citizens have lived through years of civil war and instability. It was ranked 174 out of 186 countries on the United Nations Human Development Index for 2012. Population growth, economic development and reconstruction in the wake of the crises all pose huge challenges for Liberia. According to the World Bank s World Development Indicators 2012, 84% of Liberians live below the poverty line of USD 1.25 a day. According to the International Labour Organization s (ILO) Liberia Labour Force Survey 2010, 79% of the population are in precarious employment, are self-employed or do unpaid work at home. The government budget for the 2013/14 financial year only amounts to approximately USD 550,000,000. The institutional apparatus is still weak, despite the improvements made in recent years. Corruption is endemic. Further challenges include implementing land reform, improving the conditions for investments and fighting youth unemployment. Liberian micro, small and medium-sized enterprises (MSMEs) lack sufficient resources and capacity to participate in tenders for road construction projects. Due to inadequate road maintenance and the lack of new road construction measures, Liberia s transport sector is in very poor condition. In the budget year 2013/14, 480 of the total approximately 5,000 kilometres of primary and secondary roads were maintained for the first time. Investment is badly needed in the transport sector. The AfT anticipates the construction or maintenance of over 13,000 kilometres of primary, secondary and urban roads by 2017. Nearly all of the reform projects described in the NTMP for the sector (e.g. road management and funding, public transport and traffic safety) are still awaiting country-wide implementation. The capacity of MOT and MPW outside the capital is weak when it comes to needs assessment and the implementation and monitoring of construction measures. Only one resident engineer is employed per county. The transport sector s performance capacity at legal, institutional and human resources level is low (core problem). The causes are rooted in the country s fragile statehood. To date, the government institutions have been not able to adequately guarantee legal security and transparency in administrative processes in all regions of the national territory. Additional reasons include underfunding of the road sector, particularly with respect to road maintenance. Most road construction and rehabilitation is financed by international donors. MPW s institutional transformation process, which will turn it into a streamlined core ministry with a subordinate road authority and road fund, has not yet been completed. The inadequate coordination between MOT and MPW and with other stakeholders in the sector reduces efficiency and effectiveness. Furthermore, the technical and management capacity of the public administration and the private sector is not sufficient. Due to civil war-related flight and loss, resources in the public administration and in private construction companies are only being restored very gradually. The generally poor level of education prevents the administration and the private sector from finding qualified personnel, despite high youth unemployment. The low employment rate in the formal sector is largely attributed to the major obstacles MSMEs have to overcome to enter the sector (i.e. official 24
registration of the companies). The plethora of regulations and high taxes in the formal sector means that the informal sector remains attractive. Negative effects include the lack of year-round access to road and transport services and the ensuing decelerated economic and social development. Products do not reach the markets, and social services such as health care and education are mostly unavailable in remote regions. Outside the capital, government services are available to only a limited extent and the poor accessibility of the county capitals complicates public administration. This causes increasing distance between the people and the government administrative bodies, with the people expecting little or no input from these bodies to improve their own situation. This lack of confidence in government bodies can compromise state legitimacy in the medium term. Failure to maintain the roads leads to high repair costs. The government s regulatory, planning, management and coordination capacity in the sector is low and this is conducive to corruption and bad investments. Liberian MSMEs are unable to provide practical training or work for unemployed young people. MSMEs have little access to funding and, as long as they operate in the informal sector, are unable to participate in official tenders. MSME employees have few possibilities to assert their employee rights, such as punctual wage payments, and are generally employed only on a seasonal basis. There are too few suitable jobs for Liberia s young people, most of whom have a low level of education. This contributes to a growing lack of prospects among young unemployed people, especially in remote regions. As a result, young people are more prone to violence, a tendency which is accommodated by local gang structures. The technical cooperation measure s potential: including the National Transport Master Plan in the AfT has made the measures described in the plan a top political priority. Implementing the list of legislative initiatives and reform programmes to be developed (which was adopted with the NTMP), especially those relating to road maintenance management, creates the foundation for the sustainable funding and maintenance of the roads. It secures the sustainability of the donor-financed investments and has the potential to improve the transparency of administrative processes. The measure can build on the capacity already developed at MPW. The Liberian Government also sees employment and poverty reduction potential in the road sector. The Contractors Classification and Certification System (CCCS) offers a financing mechanism for training courses in the construction sector that registered MSMEs can use to train employees. MPW s contractual conditions, which are suited to MSMEs, offer these enterprises the potential to increase commissions and employment. Cooperation with the World Bank on road maintenance management and with ILO, USAID and other organisations on employment promotion boosts the German contribution s effectiveness. The results achieved to date include the adoption of the National Transport Master Plan in May 2012 as the planning framework for the next ten years. The NTMP is also integrated in the AfT. The road maintenance management system in the pilot region has been in use since 2012. This is a transparent system for determining the budget required for maintenance. The institutional and human resource capacities in the sector are improved, especially at MPW. With the CCCS and the support of ALCC, important foundations for promoting Liberian MSMEs have been laid. 25