AFRICAN DEVELOPMENT FUND LANGUAGE : ENGLISH ORIGINAL : FRENCH

REPUBLIC OF GUINEA

TOMBO-GBESSIA ROAD IMPROVEMENT PROJECT

APPRAISAL REPORT

DEPARTMENT OF INFRASTRUCTURE

CENTRAL AND WEST REGIONS MARCH 2005

TABLE OF CONTENTS PROJECT INFORMATION SHEET, CURRENCY EQUIVALENTS, WEIGHTS AND MEAURES, ACRONYMS AND ABBREVIATIONS, LIST OF TABLES, LIST OF ANNEXES, COMPARATIVE SOCIO-ECONOMIC INDICATORS, LOGICAL FRAMEWORK OF PROJECT, EXECUTIVE SUMMARY Page 1 ORIGIN AND HISTORY OF PROJECT 1 2. TRANSPORT SECTOR 2 2.1 Transport System 2

2.2 Transport Policy, Planning and Coordination 4 3. ROADS SUB-SECTOR 4 3.1 Road Network 4 3.2 Number of Vehicle on the Road and Traffic 5 3.3 Road Transport Industry 6 3.4 Road Construction Industry 7 3.5 Road Network Administration and Staff Training 7 3.6 Road Maintenance 9 3.7 Road Sub-sector Financing 9 4. THE PROJECT 11 4.1 Project Design and Rational 11 4.2 Project Area and Beneficiaries 13 4.3 Strategic Context 15 4.4 Project Objectives 16 4.5 Description of Project Outcomes 16 4.6 Impact on the Environment 21 4.7 Social Impact 23

4.8 Project Costs 24 4.9 Financing Sources and Expenditure Schedule 27 5. PROJECT IMPLEMENTATION 28 5.1 Executing Agency 28 5.2 Institutional Arrangements 29 5.3 Implementation and Supervision Schedule 30 5.4 Procurement Arrangements 32 5.5 Disbursement Arrangements 34 5.6 Monitoring and Evaluation 34 5.7 Financial and Audit Reports 35 5.8 Coordination of Assistance 35 6. SUSTAINABILITY AND RISKS OF THE PROJECT 35 6.1 Recurrent Expenditure 35 6.2 Sustainability of Project 36 6.3 Main Risks and Mitigative Measures 36 7. PROJECT BENEFITS 37 7.1 Economic Analysis 37 7.2 Economic Rate of Return and Sensitivity Analysis 38 8. CONCLUSIONS AND RECOMMENDATIONS 38 8.1 Conclusions 38

8.2 Recommendations 38 This report was written by Mrs. N. SENOU, Transport Economist (Extension 2632); Mr. M. SOUARE, Civil Engineer (Extension 36 22), and Mr. L. JOOTTUN, Environmentalist (Extension 2256), following an appraisal mission to Guinea in February-March 2005. Mrs. N.R. BA, Gender Expert, OCAR.0 and Mr. J. MURARA, Poverty Expert, ONSD also contributed to the preparation of this document. The Division Manager in charge is Mr. A. RUGAMBA (Extension 3069) and the Director in charge Mr. G. MBESHERUBUSA (Extension 2034).

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AFRICAN DEVELOPMENT FUND ATR-TUNIS

P.O. Box 323 – 1002 TUNIS Belvédère Tel: (216) 71 10 20 34 Fax: (216) 71 33 26 95

PROJECT INFORMATION SHEET

Date: February 2005

The information given hereunder is intended to provide guidance to prospective suppliers, contractors and all persons interested in the procurement of goods and services for the projects approved by the Boards of Directors of the Bank Group. More detailed information and guidance may be obtained from the Executing Agency of the Borrower. 1. COUNTRY AND NAME OF PROJECT : Guinea: Tombo-Gbessia Road Improvement Project 2. PROJECT AREA : City of Conakry 3. BORROWER : Republic of Guinea 4. EXECUTING AGENCY : Ministry of Public Works, through the National Road Investments Department P. O. Box 581 Conakry (Guinea): Tel. (224) 45 45 31 Fax : (224) 43 02 88 5. PROJECT DESCRIPTION : The Project has the following components: A - Works comprising:

a.1) the improvement of the Tombo-Gbessia Road with the construction of its permanent structures (interchanges, pedestrian overpasses, bridges and roundabouts), the construction of the Kenien-Bonfi feeder road leading off the main road, environmental protection works as well as water supply projects (creation of 8 safe water points in Madina and Bonfi markets);

a.2 construction of the Yimbaya bus station as well as environmental protection activities; a.3) control and supervision of the above works.

B - Institutional support comprising:

b.1) technical assistance to the National Road Investments Department (NRID) to install computer applications for technical calculation and management of new works contracts, and organization of retraining in Guinea for twenty-nine NRID civil engineers (in new engineering techniques for building roads and permanent structures, environmental management and contractorship (programming, budgeting, and public procurement) and three accountants – two from the NRID and one from the National Department of Debt and Public Investment (NDDPI) – in project, grant and loan accounting;

b.2) training abroad of five managerial staff members (including civil engineers from NRID and one economist from the NDDPI) in project management;

b.3) procurement and network connection of computer and office automation equipment in the NRID and organization of training on the use of such equipment;

b.4) public awareness seminars on: (i) road safety; (ii) environmental protection; and (iii) control of malaria, waterborne diseases, sexually transmitted diseases (STDs) and HIV/AIDS .

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C - Project management comprising: c.1) monitoring and coordination of project components; c.2) organization of project sites; and c.3) technical and financial audit of the project.

6. TOTAL COST (excluding all taxes and expropriation expenses) : 55.91 million i) Foreign exchange : 43.98 million ii) Local currency : 11.93 million 7. BANK GROUP LOAN ADF (African Development Fund) : UA 8.25 million 8. OTHER FINANCING SOURCES

* Agence française de développement (AFD) : UA 7.72 million * Arab Bank for Economic Development in Africa (ABEDA) : UA 7.89 million * Kuwaiti Development Fund (KDF) : UA 13.15 million * Saudi Development Fund (SDF) : UA 9.87 million * OPEC (Organization of Petroleum Exporting Countries) Fund : UA 3.29 million * Government of Guinea : UA 5.74 million

9. DATE OF APPROVAL OF ADF GRANT : June 2005 10 PROBABLE START-UP DATE OF ADF COMPONENTS : March 2006 11. DURATION OF ADF AND AFD COMPONENTS : 42 months 12. PROCUREMENT OF GOODS AND WORKS:

The goods and works financed by the ADF and the AFD shall be acquired through: A). National competitive bidding for procurement and network connection of computer and

office automation equipment and training of staff to use such equipment; B). International competitive bidding for road improvement works on the Tombo-Gbessia

main road and construction of the connecting Kenien-Bonfi feeder road; and C) International competitive bidding for construction works on the Yimbaya bus station.

13. RECRUITMENT OF CONSULTANTS:

Consultants shall be recruited through a bidding process based on shortlisting of: A) consultancy firms for: (a.1) control and supervision of road construction works (main road

and feeder road); (a.2) control and supervision of construction work on the Yimbaya bus station; (a.3) – technical assistance to NRID and retraining in Guinea of: i) 29 (twenty-nine) civil engineers from NRID, and ii) 3 (three) accountants: 2 (two) from the NRID and 1 (one) from the NDDPI; (iii) technical audit of works;

B) institutions abroad for the training of five managerial staff members in project management: four from the NRID and one from the NDDPI;

C) audit firms to audit project accounts; D) NGOs for sensitization seminars on: (i) road safety, (ii) environmental protection, (iii)

control of malaria, waterborne diseases, STDs and HIV/AIDS

14. ENVIRONMENTAL CATEGORY : I UA1 = SDR 1

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CURRENCY EQUIVALENTS / WEIGHTS AND MEASURES

Currency Equivalents (February 2005)

UA 1 = US$ 1.52049 US$ 1 = UA 0.65768 UA 1 = € 1.16647 € 1 = UA 0.85729

UA 1 = GNF 2 941.76 GNF 1 = UA 0.0003

Units of Measure : Metric System

Fiscal Year : 1st January - 31 December

ACRONYMS AND ABBREVIATIONS ABEDA : Arab Bank for Economic Development in Africa ADF : African Development Fund AFD : Agence française de développement BD : Bidding Documents CSF : Contractors Shortlist File DATY : Daily Average Traffic per Year EIB : European Investment Bank ESMP : Environmental and Social Management Plan GDP : Gross Domestic Product GNF : Guinean Franc HDM : Highway Development and Management IHTS : Inhabitants KDF : Kuwaiti Development Fund MPCA : Major Projects Control Agency MPW : Ministry of Public Works MT : Ministry of Transport NDDPI : National Department of Debt and Public Investments NDE : National Department of the Environment NDRT : National Department of Road Transport NDRM : National Department of Road Maintenance NGO : Non-Governmental Organisation NRAG : National Railway Authority of Guinea NRID : National Road Investments Department NTCD : Net of Taxes and Customs Duties NTP : National Transport Plan PA : Project Area PCWL : Public and Civil Works Laboratory PIC : Public Information Centre PIU : Project Implementation Unit PMCU : Project Monitoring and Coordination Unit PRSP : Poverty Reduction Strategy Paper RBCSP : Results-based Country Strategy Paper RMF : Road Maintenance Fund SDF : Saudi Development Fund SDR : Special Drawing Rights SPB : Studies and Planning Bureau STDs : Sexually Transmitted Diseases TRA : Temporary Relocation Agency UA : Unit of Account UDM : Urban Development Masterplan for Conakry UDP : Urban Development Program USD : United States Dollar Veh/d : Vehicules/day VOC : Vehicle Operating Cost WC : Working Capital

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LIST OF TABLES N° Titles 4.1 Summary of Estimated Project Costs by Component 4.1 bis Summary of Estimated Costs by Component Financed by the ADF or the AFD 4.2 Summary of Project Costs by Category of Expenditure 4.2 bis Summary of Project Costs by Category of Expenditure Financed by the ADF or the AFD 4.3 Project Financing Sources 4.3 bis Financing Sources of Components Financed by the ADF or the AFD 4.4 Expenditure Schedule per Component Financed by the ADF or the AFD 4.5 Schedule of Expenditure Financed by the ADF or the AFD per Financing Source 5.1 Projected Implementation Plan by Component Financed by the ADF or the AFD 5.2 Estimated Project Supervision Schedule 5.3 Procurement Arrangements for Works and Services Financed by the ADF or the AFD LIST OF ANNEXES N° Titles Number of pages 1. Country Map, Project Location of 2 2. Organizational Structure of the Executing Agency (MTP) 1 3 Financing Sources by Category of Expenditure Financed by the ADF 4. Detailed Implementation Schedule (time chart) for Components Financed by the ADF and the AFD 1 5 List of Equipment and Technical Assistance for the Project 1 6 Summary of Economic Analysis 2 7 Bank Group Operations in Guinea 2

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Guinea

COMPARATIVE SOCIO-ECONOMIC INDICATORS

Year Guinea Africa Developing countries Developed countries

Basic indicators

Area ('000 Km²) 246 30 061 80 976 54 658 Total population (millions) 2002 8.4 831.0 5 024.6 1 200.3 Urban population (% of Total) 2002 32.0 38.6 43.1 78.0 Population density (per Km²) 2002 34.0 27.6 60.6 22.9 Gross National Income (GNI) per capita (US$) 2002 150 650 1 154 26 214 Labor force participation - Total (%) 2002 49.4 43.1 45.6 54.6 Labor force participation - Female (%) 2002 47.1 33.8 39.7 44.9 Gender-related development index value 1997 0.381 0.484 0.655 0.905 Human development index (out of 174 countries) 2001 157 n.a. n.a. n.a. Population living on less than $1/day (%) 1991 26.3 46.7 23.0 20.0 Demographic indicators Population growth rate – Total (%) 2002 1.4 2.2 1.7 0.6 Population growth rate - Urban (%) 2002 4.7 3.9 2.9 0.5

Population < 15 years (%) 2002 44.8 43.2 32.4 18.0

Population >= 65 years (%) 2002 2.9 3.3 5.1 14.3 Dependency ratio (%) 2002 88.6 86.6 61.1 48.3 Sex ratio (males per 100 females) 2002 101.3 98.9 103.3 94.7 Female population aged 15 to 49 years (%) 2002 23.1 24.0 26.9 25.4 Life expectancy at birth - total (years) 2002 49.1 50.6 62.0 78.0 Life expectancy at birth - female (years) 2002 49.5 51.7 66.3 79.3 Crude birth rate (per 1000) 2002 42.9 37.3 24.0 12.0 Crude mortality rate (per 1000) 2002 16.1 15.3 8.4 10.3 Infant mortality rate (per 1000) 2002 101.7 81.9 60.9 7.5 Child mortality rate (per 1000) 2002 176.0 135.6 79.8 10.2 Maternal mortality rate (per 100000) 1999 528 641 440 13 Total fertility rate (per woman) 2002 5.8 4.9 2.8 1.7 Women using contraceptives (%) 1999 6.2 40.0 59.0 74.0 Health and nutrition indicators

Physicians (per 100000 inhabitants) 1999 10.7 57.6 78.0 287.0

Nurses (per 100000 inhabitants) 1995 55.7 105.8 98.0 782.0 Births attended by trained health personnel (%) 1999 35.0 38.0 56.0 99.0 Access to safe water (% of population) 2000 48.0 60.3 78.0 100.0 Access to health services (% of population) 1992 45.0 61.7 80.0 100.0 Access to sanitation (% of population) 2000 58.0 60.5 52.0 100.0 Percentage of adults (15-49 years) living with HIV/AIDS 1999 1.5 5.7 1.3 0.3 Incidence of tuberculosis (per 100000) 1999 63.0 198.0 144.0 11.0 Child immunization against tuberculosis (%) 2002 71.0 76.4 82.0 93.0 Child immunization against measles (%) 2002 61.0 67.7 73.0 90.0 Underweight children (% of children under 5) 1999 23.2 25.9 31.0 … Daily calorie supply per capita 2001 2 362 2 444 2 675 3 285 Public expenditure on health (as % of GDP) 1998 2.2 3.3 1.8 6.3 Education indicators Gross enrolment ratio (%)

Primary school - Total 2000 67.0 89.2 91.0 102.3

Primary school - Girls 2000 56.0 83.7 105.0 102.0 Secondary school - Total 1998 13.8 40.8 88.0 99.5 Secondary school - Girls 1999 7.3 38.2 45.8 100.8 Primary school female teaching staff (% of total) 1999 25.0 49.9 51.0 82.0 Adult literacy rate - Total (%) 2000 … 37.9 26.6 1.2 Adult literacy rate – Male (%) 2002 … 29.2 19.0 0.8 Adult literacy rate - Female (%) 2000 … 46.4 34.2 1.6 Percentage of GDP spent on education 1998 1.8 3.5 3.9 5.9 Environmental indicators Land use (arable land as percentage of total land area) 2002 3.6 6.2 9.9 11.6 Annual rate of deforestation (%) 1995 1.1 0.7 0.4 -0.2 Annual rate of reforestation (%) 1990 5.0 4.0 … … Per capita CO2 emissions (metric tons) 1998 0.2 1.1 1.9 12.3 Source: Compiled by the Statistics Division from ADB databases; UNAIDS; Live Database of the World Bank and the UN Population Division - Notes: n.a. Non Applicable

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GUINEA Tombo-Gbessia Road Improvement Project

Logical Framework of Project Start up date: March 2006 Completion date: December 2008 Design team: Mrs. N. SENOU, OCIN.3, Mr. M. SOUARE, OCIN.3, Mr. L. JOOTTUN, OCIN.O

NARRATIVE SUMMARY OBJECTIVELY VERIFIABLE INDICATORS MEANS OF VERIFICATION MAIN ASSUMPTIONS AND RISKS

1. SECTOR GOAL

Improve transport infrastructure and build roads to disadvantaged areas

1.1 Increase transport sector contribution to GDP from 5% to 7% by 2010

1.2 Increase urban mobility by about 20% in 2009

1.2 Transport and economic statistics

1.2 Transport statistics

2. PROJECT OBJECTIVE

2.1 a) Improve traffic fluidity and reduce transport costs and travel time on the Tombo-Gbessia road, b) Help to improve living conditions for the people in Conakry, and c) Build the technical and operational capacity of the NRID and NDDPI

2.1 From January 2009: (i) - Road maintenance

costs reduced by an average of 39% - Vehicle operating costs reduced by 30% to 40%, - Road travel time reduced by more than 80% (by 15 to 90 minutes); (ii) Access to safe water in Madina and Bonfi markets for about 25 900 persons.

2.1 Statistics and surveys

by the MPW 2.2 Statistics from the

Ministry of Water Resources

2 Enhanced efficiency

of Government policy in the transport sector

3. OUTCOMES 3.1 Tombo-Gbessia road

completed, permanent structures constructed, feeder road constructed and water supply support project implemented.

3.2 New bus station constructed

3.1 Technical and operational capacity of the NRID and NDDPI strengthened

3.4 People in Conakry sensitized and protected

3.1 (i) - From January 2009: About 10.7 km of

paved road developed into 2x3 lanes; -Five (5) interchanges, 2 roundabouts, 2 bridges and 4 pedestrian overpasses constructed; -Household transport expenses reduced by an average of 10%; -About 20% increase in transport facilities; -Some 3,407 km of the Kenien-Bonfi feeder road constructed and facilitating access to community social services for 45 000 inhabitants (47% female); -Eight (8) safe water points constructed in the Madina (5) and Bonfi (3) markets which improve health conditions for about 25 900 traders, about 80% of them women

3.2 From January 2009 : - One (1) bus station

constructed in Yimbaya on an area of 41 000 m2 - 175 more jobs created, including 150 for women

3.3 In 2009 : - Enhanced capacity for 29 road

engineers from the NRID trained in Guinea; -About 50% reduction in processing time for technical data on road and permanent structure engineering as well as procurement; -Better monitoring of technical studies conducted by private consultancy firms; -Adequate consideration of the environment in the technical design of road projects; -Enhanced capacity for 3 employees (2 from the NRID and 1 from NDDPI) in the management of project accounts and reliable project financial data; -Improved project management capacity for 5 managerial staff members (4 from NRID and 1 from NDDPI) through better management of the engineering team

3.4 At least 15 000 persons sensitized in 2008 to (i) road safety, (ii) environmental protection and (iii) control of malaria, water-borne diseases, STDs and HIV/AIDS and 10 000 treated mosquito nets distributed to pregnant women and children under 5

3.1 Quarterly project

status reports; -Report of the Project Monitoring and Coordination Committee; -Supervision reports of the Bank and other donors; -Acceptance reports; -Final project implementation report; -Project completion report

3.2 Idem 3.3 Retraining and

training report 3.4 Public awareness

reports

3.1 Effective defraying of

recurrent road maintenance costs

3.2 Implementation of the recommendations of the “study to improve traffic in the city of Conakry”, conducted in 2002, with ADF financing.

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4. ACTIVITIES A- Works and Goods

- Preparation of bidding documents (BD) and consultants’ shortlists

- Invitation of bids and award of contracts

- Conduct of construction work and supply of goods

- Acceptance of works and goods

B- Services (works control, institutional support, technical and financial audit of project) - Preparation of consultants’

hortlists (CS) - Shortlisting and award of

contracts - Service delivery - Performance of services - Final report services

4. INCOME / RESOURCES 4.1 Resources (in UA million)

F.E L.C Total Basic 37.11 10.17 47.28 Physical contingencies

3.71 0.9 4.61

Financial contingencies

3.16 0.86 4.02

Total NTCD & net of expropriations

43.98 11.93 55.,91

4.2 Financing plan MUC % ADF 8.25 14.8% AFD 7.72 13.8% ABEDA 7.89 14.1% KDF 13.15 23.5% SDF 9.87 17.7% OPEC Fund 3.29 5.9% Government 5.74 10.2% Total 55.91 100%

* net of expropriations Human resources Road engineers from NRID and accountants from NRID and NDDPI Consultants for works control, technical and financial audit of the project, technical assistance and retraining, training courses and sensitization seminars Supervision mission from the Bank and other donors

4.1 Memorandum of

understanding; -Signed contracts; - Disbursement statements; -Provisional and Final Estimates; -Project status reports; -Provisional and final acceptance reports for works and equipment; -Staff retraining and training report; -Technical and financial audit reports of project

4.1 Efficient management

of the Public Procurements Board

4.2 Better coordination of

project donors 4.3 Payment of

compensation to the people

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EXECUTIVE SUMMARY

1. ORIGIN AND HISTORY OF PROJECT 1.1 The Tombo-Gbessia road is a throughway that prolongs National Highway No. 1 (NH1) right up to Conakry Port. It is the main connection between the Capital and the hinterland and is one of the major urban roads in the city of Conakry. In a bid to improve traffic fluidity in Conakry and on Tombo-Gbessia road in particular, the Government requested financing from the Bank to improve this road. 1.2 The proposed project is in line with the Government’s policy of strengthening the role of road transport in the country’s economic development. It stems from the recommendations of the Urban Development Master Plan for Conakry (UDM) prepared in 1989 within the framework of the first Urban Development Program (UDP 1) financed by the World Bank and whose objective is to design a planning and development mechanism for Conakry. The investment program that resulted from the UDM was updated during the different subsequent phases of the UDP, the third of which is underway. Summary studies were conducted on this project in 1995, followed by complete detailed studies in 1999. The technical studies were updated in June 2003 and costs updated to 2005. Studies were also carried out for the new Yimbaya bus station that will replace the Madina station demolished because of the project. All these studies, financed by the ADF, were approved by the Government and the Bank. 1.3 This appraisal report has been prepared on the basis of detailed studies conducted through a participatory approach. It is also based on project preparation documents and information collected during discussions with central and local authorities as well as civil society during various missions, including the re-appraisal mission of February/March 2005. The project will be financed by the ADF, AFD, ABEDA, KDF, SDF, OPEC Fund and the Government. 2. Purpose of Grant The ADF grant, amounting to UA 8.25 million, represents 14.8% of total project costs (net all taxes, customs duties and expropriations). It will be used to finance 15% of expenditure in foreign exchange and 13.8% expenditure in local currency. 3. Sector and Specific Objectives of the Project

The sectoral objective of the project is to improve road infrastructure so as to increase its contribution to GDP and open up access to disadvantaged areas. Its specific objective is to: (i) improve traffic fluidity, cut costs and reduce travel time on the Tombo-Gbessia road; ii) help to improve living conditions for the inhabitants of Conakry; and (iii) build the technical and operational capacity of the National Road Investments Department (NRID) and the National Department of Debt and Public Investment (NDDPI).

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4. Brief Description of Project Achievements

To ensure attainment of the above-mentioned objectives, the following results should be obtained:

(a) About 10.7 km of paved roads improved between Tombo and Gbessia with a breadth of 15-21 m; 5 (five) interchanges, 2 (two) roundabouts, 2 (two) bridges and 7 (seven) pedestrian overpasses constructed; 3,407 km of feeder roads developed in Kenien and Bonfi; 8 safe water points installed in the Madina (5) and Bonfi (3) markets;

(b) One (1) bus station built in Yimbaya on a surface area of 41 000 m2; (c) Technical and operational capacity of the NRID and NDDPI

strengthened through staff training and retraining; and (d) Sensitization of project area inhabitants to: i) road safety issues,

environmental protection, malaria control, waterborne diseases, STDs and HIV/AIDS; ii) 10 000 treated mosquito nets distributed to women’s groups in the project area, with priority given to pregnant women and children under 5.

5. Project Costs The estimated cost of the project, net of taxes and customs duties (NTCD) and net of expropriations, is UA 55.91 million, of which UA 43.98 million is in foreign exchange and UA 11.93 million in local currency. Compensation for expropriated private property is evaluated at UA 1.87 million. The estimated cost of components financed by the ADF and AFD, NTCD and net of expropriations, stands at UA 16.89 million, of which UA 12.78 million is in foreign exchange and UA 4.11 million in local currency. 6. Financing Sources The project will be financed by the ADF (UA 8.25 million), AFD (UA 7.72 million), ABEDA (UA 7.89 million), KDF (UA 13.15 million), SDF (UA 9.87 million), OPEC Fund (UA 3.29 million), and the Government (UA 5.74 million). Project financing will be conducted as follows: a) works on the Moussodougou-Madina-Kenien-T1-Gbessia segment: ABEDA, KDF, SDF, OPEC Fund and the Government; b) works control on this segment: ABEDA and KDF, c) works and works control on the Tombo-Moussodougou segment: ADF and AFD, d) works and works control on the Kenien-Bonfi feeder road: ADF; e) works on the Yimbaya bus station: ADF and the Government; f) works control on the bus station: ADF and AFD, g) equipment of the Project Monitoring and Coordination Unit (PMCU): KDF; h) PMCU operating expenses: KDF and ADF ; i) institutional support, technical and financial audit of the project: ADF; j) consultancy fees for works organization on project sites: AFD.

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7. Project Implementation The project execution agency shall be the Ministry of Public Works operating through the NRID. Monitoring of project components financed by ABEDA, KDF, SDF, the OPEC Fund and the Government, is currently done by a team comprising: a) a civil engineer from the NRID (not yet formally appointed) and a technical assistant financed by KDF and whose mission will end by June 2006, when activities financed by the above-mentioned donors will end. Considering the complexity of the project and the need for regular monitoring of components financed by the ADF, as well as the need to evaluate the performance of the project monitoring team, the executing agency will se to the creation of a monitoring and coordination unit by ministerial order and reinforce it with one works supervision engineer, one environmentalist and one project accountant. Project activities will run for 61 months (from November 2003 to December 2008), including 42 months for components financed by the ADF and AFD (from June 2005 to December 2008). 8 Conclusions and Recommendations 8.1 Conclusions The Tombo-Gbessia road is part of the priority road network of Guinea and constitutes the backbone of Conakry’s road network. This road improvement project is one of the Government’s priorities for the development of this city. Any negative effects on the environment are controllable. This project is technically well designed and economically viable. It generates a 37.2% economic rate of return. 8.2 Recommendations

In the light of the foregoing, it is recommended that an ADF grant, not exceeding UA

8.25 million be awarded to the Republic of Guinea to finance the project as designed and described in this report. This grant shall be awarded subject to the fulfillment of the conditions specified in the grant agreement.

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1 ORIGIN AND HISTORY OF PROJECT 1.1 Guinea has embarked on an economic recovery program to improve the living conditions of its population estimated at 9.3 million in 2005. In 2002, about 49% of its population was living below the poverty line. The Government, with the support of donors such as the African Development Bank, intends to use this program to reduce the national poverty rate from 40.3% to 30% by 2010. To attain this objective, the Government targets three main areas in its action plans, namely: (i) acceleration of economic growth through rehabilitation and development of economic infrastructure, including transport infrastructure; (ii) development and promotion of equitable access to basic services (education, health, water, sanitation, town planning and housing); and (iii) improvement of governance. 1.2 This Tombo-Gbessia Road Improvement Project is in line with Government policy to increase the contribution of road transport to national economic development through rehabilitation and development of national roads, primary roads, and major highways. This policy was implemented in Conakry in 1989 through the development of the Urban Development Master Plan (UDM), prepared under the first urban development program (UDP 1) financed by the World Bank. To take the recent development of the city into account, the investment program that emerged from the UDM was updated under the UDP which has entered its third implementation phase. 1.3 The project road, which features prominently in this investment program, is part of the country’s priority road network. Given its central position, this road is a throughway that prolongs NH1 right through to Conakry port. It is noteworthy that the NH1 drains two-thirds of the traffic from the hinterland to the capital, and is part of the Bamako-Kankan-Conakry Corridor that leads to Mali. The Tombo-Gbessia road is also part of the primary urban road network. Consequently, its improvement will enhance traffic fluidity, ease the transportation of goods to the economic centres of the capital and facilitate access to economic centers and the basic administrative and social services in the capital. Under implementation of the above-mentioned investment program and at the request of the Government the AFD financed summary project studies in 1995, followed by detailed studies in 1999 and updating of technical studies in June 2003. The cost of works was also updated in 2005. The AFD also financed the study for the development of the Yimbaya bus station and the Kenien-Bonfi feeder road. This new bus station will be constructed under the project to replace the Madina station demolished during project construction work. 1.4 At the request of the Government, the Bank fielded a project preparation mission in April 2003, followed by an appraisal mission in June 2003. Since the project could not be presented to the Bank’s Board of Directors because of sanctions imposed on Guinea, a re-appraisal mission was organized in February/March 2005 as soon as the sanctions were lifted. The project is classified in environmental category I. Consequently, a summary of the environmental and social impact assessment (ESIA) was forwarded to the Board on 22 July 2003 and published on the web site of the Public Information Center, in accordance with the relevant guidelines. Considering its socio-economic benefits, the project is in conformity with poverty reduction strategy paper (PRSP) and the Bank’s intervention strategy in Guinea, as developed in the Results-Based Interim Country Strategy Paper (RBICSP) 2005-2006, both of which have the common objective of promoting sustainable economic growth and poverty reduction.

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2. TRANSPORT SECTOR 2.1 Transport System 2.1.1 Given its surface area of about 246.000 km2 and a sea front that is close to 350 km long, Guinea has a diversified transport system, composed of road, rail, air, maritime and river forms of transport. Opening up access to neighboring countries, especially landlocked Mali, is one of the priorities of Government policy, which implies boosting the performance of the Conakry Port and building access corridors to the port to attract a substantial share of foreign trade. Creating such access has to start with the improvement of national and transnational highways as well as urban feeder roads leading from the Conakry Port, especially the Tombo-Gbessia road targeted by this project. The system has some shortcomings, due mainly to low modal integration, the poor state of transport infrastructure and an inadequate legal and statutory framework. In a bid to address these constraints, the Government defined certain measures in its National Transport Plan (NTP) presented to donors in Conakry in 2002 and which is currently being updated. Prominent among these measures are the need to reinforce programming of maintenance and improvement of transport infrastructure, in order to raise transport sector contribution from its current level of 5% to 7% by 2010. Road Transport 2.1.2 Road transport absorbs about 95% of the country’s domestic traffic and is based on a main road network of about 14.000 km, of which only 12% is paved. The dominance of road transport stems mainly from its flexibility and the absence of railway passenger transport. Road transport is wholly controlled by informal private sector operators, most of whom use very old vehicles, which are a frequent cause of road accidents that are sometimes fatal. Other road transport development constraints are the low density of the road network (2.7 km/100 km2 ), poor road maintenance and poor organization of road transport operators. 2.1.3 In Conakry, urban road transport is carried out on primary and secondary road networks of about 115.6 km and 200 km respectively, and on tertiary roads. Surveys conducted in 2001-2002 during preparation of the NTP and additional studies in June 2004 have revealed that flows of passengers and goods in Conakry represent about 67% and 34%, respectively, of total national flows. These flows transit through the Tombo-Gbessia road which is the backbone of Conakry’s urban road network. However, this urban mobility in Conakry is hampered by two major constraints, namely: (i) an inadequate, unevenly distributed and highly degraded road network; and (ii) an inadequate and poorly organized mass transport system. These two constraints are compounded by the linear physical structure of the city with a concentration of activities (administration, port, corporate headquarters, social centers, markets, bus station) in one place. 2.1.4 Conakry’s low absorptive capacity of urban traffic in is aggravated by: (i) relatively high transport costs; (ii) very long transit time due to traffic jams (about 60 minutes to cover 10.7 km) especially at peak hours, which limits the development of socio-economic activities and the mobility of factors of production; and (iii) a high number of road accidents (an average of 386 people injured in accidents in 2004, of which 306 were fatal). The traffic congestion is such that the Government has formally banned the circulation of trucks in the city from 7 a.m. to 10 a.m. and from 4 p.m. to 5 p.m. and imposed one-way traffic on some primary roads such as the Tombo-Gbessia road. Although these restrictions help to improve

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traffic fluidity, consumers are still penalized. Indeed, this problem prolongs goods storage time in the Conakry Port, thus delaying their arrival on the market and raising warehousing and transportation costs, which all translate into a higher selling price for consumers. Moreover, it gives rise to extra ship layover time and consequently the payment of demurrage. Improvement of the project road will eliminate most of the restrictions for incoming and outgoing traffic in Conakry. Other Modes of Transport 2.1.5 Railway Ttransport. Built in 1914, the national railway network is composed of one 662-km line, of which only a 36 km segment situated in Conakry is still used and maintained by the National Railways Authority of Guinea (ONCFG). Rehabilitation of this segment of the railway line for transportation of persons and goods was the subject of a preliminary feasibility study financed by the Swedish Fund and managed by the Bank. The Government intends to seek for financing for the project. Furthermore, the three main mining companies in Guinea operate three private networks for their own transport with a total line capacity of 385 km, linking the bauxite mines to the ports of Kamsar and Conakry. More than 10 million tons of bauxite and 500 000 tons of alumina are transported on these lines annually. 2.1.6 Air transport. To boost the air transport sub-sector, Guinea has developed a network of airports composed of the Conakry Gbessia International Airport, three regional airports (Kankan, Labe, N’Zerekore) and seven secondary airports. Moreover, 5 (five) private aerodromes are operated by diamond and bauxite mining companies. Thanks to an efficient maintenance and equipment renewal policy implemented by SOGEAC, a management company, the Conakry Gbessia Airport has a variety of infrastructure and equipment that is generally in good condition. In 2004, the traffic registered in this airport was 291,000 passengers and 4,100 metric tons of freight. Meanwhile, the secondary airports are only used occasionally. 2.1.7 Maritime transport. Maritime transport is the second biggest sub-sector in Guinea’s transport system. It revolves around two deep water ports, namely the commercial port of Conakry managed by the Conakry Port Authority (“Port Autonome de Conakry”) and the mineral port of Kamsar managed by the Bauxite Company of Guinea (“Compagnie de Bauxite de Guinée - CBG). There are also several secondary ports and docking sites. Traffic in the port of Conakry, which is the transit port for neighboring countries, reached about 5.68 million tons in 2004, of which container traffic made up 13%. Its average gross traffic (between 400 t/d and 720 t/d) corresponds to regional standards for various goods. The Government’s medium-term objective is to transform this port into a factor of sub-regional cooperation especially with Mali. Hence, several initiatives have already been taken, namely: the allotment of a port area to Mali for its traffic; financing (by the ADF and others) of the Kankan-Kouremale-Bamako road, which is an important segment of the access corridor with Mali and whose works are underway; extension of the Conakry port (financed by the EIB, AFD, KFW and the Autonomous Port of Conakry), the related works of which are at the start-up stage, to enable it to handle a higher volume of containers. As for the Kamsar port, it exports more than 10 million tons of bauxite per year. Moreover, on a smaller scale, a few dozen daily maritime trips, using motorized canoes, are conducted between the Kaloum Peninsula and the Loos Islands situated 8 km off the coast, to promote socio-economic activities between the islands and the mainland. River transport is practiced only during four months of the year and in the rainy season on the River Niger, from Kouroussa to Siguiri and

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Bamako, and on River Milo, a tributary of the Niger, from Kankan to Siguiri. No public investments have been made in the system over the last ten years and so the facilities are quite obsolete. 2.2 Transport Policy, Planning and Coordination 2.2.1 One of the Government’s major concerns is to create the right conditions for sustainable national economic growth and poverty reduction. The crucial role of the transport sector in the attainment of this objective has been restated in Guinea’s transport sector policy. The goal of this policy is to progressively eliminate the shortcomings and dysfunctionings in the sector that raise transport costs and harm trade. It focuses on: a) improving and ensuring the sustainability of transport infrastructure and services, notably roads, with a view to boosting socio-economic activities and improving the living conditions of the people, thereby contributing to poverty reduction; b) promoting the private sector; and c) enhancing the efficiency of the transport administration. The Government also intends to restore Conakry’s capacity to act as the engine of national economic growth by improving traffic mobility and access to various neighborhoods and centers of activity in the capital. 2.2.2 Responsibility for the transport sector falls mainly on the following ministries: (i) the Ministry of Public Works (MPW) which manages the national road network, including primary urban roads, through its various technical departments in charge of roads and the primary urban network; (ii) the Governorate and five urban districts of Conakry, which are responsible for the management of the secondary and tertiary road networks (The Ministry of Town Planning and Housing participates in the management of the secondary and tertiary networks under UDP3 financed by the World Bank.); (iii) the Ministry of Transport which regulates and coordinates the sector; and (iv) the Ministry of Agriculture which manages farm-to-market roads. Furthermore, the Ministries in charge of Planning, the Economy and Finance are responsible for programming investment and maintenance budgets and providing public financing to the sector. Although the sharing of responsibilities in road infrastructure management, including urban roads, has been well defined (primary network for the State, secondary and tertiary network for local councils), the system suffers from poor coordination, which sometimes leads to a dysfunction, notably in the management of primary urban roads. This stems from difficulties in controlling the number of vehicle on the road and the technical monitoring of the urban road sub-sector. Integration will be consolidated by improving infrastructure and implementing the attendant measures provided for in the NTP, notably regular consultation between the various actors of the transport sector and specifically between the technical services in charge of the road and urban networks. 3. ROAD SUB-SECTOR 3.1 Road network 3.1.1 Guinea has a road network of about 35.000 km, including 14 000 km (40%) of classified roads, of which about 3% are urban roads. The surface area of paved national highways is 1989 km. This network’s density of 2.7 km/100km² is relatively low compared to that of other countries in the sub-region, notably Ghana (6.2 km/100km²), Côte d’Ivoire (5.1 km/100km²), Benin (3.8 km/100km²) and Sierra Leone (2.9 km/100 km²). The state of Guinea’s road network, considered good, varies 28 and 35%, which is still poor. Given the country’s high hydrographic density and rolling topography, the national road network has a great number of permanent bridge structures: 1,946 concrete bridges, 36 metal bridges, 31 provisional bridges and 29 ferries.

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3.1.2 The urban roads in Conakry are classified into a primary network (115.6 km), a secondary network (200 km) and a tertiary network whose area is unknown. The entire primary network is paved. Conakry’s structuring road network covers the five urban districts of the capital. It is composed of five longitudinal West-East roads (Tombo-Gbessia, Corniche Nord, Donka-Kipé Road, Niger Road and Corniche Sud) interconnected by a score of transversal North-South roads. Although its traffic carrying capacity is clearly insufficient, the geometry of Conakry’s road network is satisfactory on the whole. Constructed around 1965, the 10.7 km long Tombo-Gbessia road, by virtue of its central position serves as both an expressway to the city center where all administrative, social and community services are located and a thoroughfare linking Conakry Port and other major commercial facilities, including the Madina international market, to the Conakry International Airport in Gbessia. 3.1.3 Conakry’s road network is dense and modern in the older urban districts (Kaloum, Matam and Dixinn), but sparse and generally under-developed in the new districts (Ratoma, Matoto). Indeed, the roads in Kaloum are generally good, completely paved, well structured and evenly distributed into a North-East/South-West orthogonal matrix. The roads in Dixinn and Matam, which are in a poor state and are only partially paved, are well distributed, except for access roads to certain heavily populated neighborhoods in Matam which are poorly maintained footpaths. The roads in Ratoma and Matoto, which are found on rugged terrain, are irregular and often discontinuous with few connections between neighborhoods, a factor which accounts for the unbalanced land occupancy in Conakry. These roads are currently being developed under the UDP3. It is noteworthy that only the primary urban network in these five districts is paved. 3.1.4 On the whole, Conakry’s road network is characterized by generalized degradation of sidewalks, obsolete traffic lights, as well as poor pavement markings and road signs. These problems will soon be addressed by the maintenance services of the Governorate of Conakry and the local councils that have just been equipped under the World Bank’s UDP to enhance management of the network by improving the planning, programming and budgeting of road maintenance. 3.2 Number of Vehicles on the Road Traffic Vehicle population 3.2.1 The vehicle population, one-third of which are trucks, is estimated at 110 000, with about 88% of them concentrated in Conakry. Its annual growth rate is 5%. Conakry’s car ownership ratio went up from 2.8 vehicles per 1000 inhabitants (inhabit.) in 1993 to 8 vehicles per 1000 inhab. in 2002. The increase in the number of vehicles stems from the liberalization of trade and massive importation of second-hand vehicles which make up about 85% of the vehicle population. This high proportion of second-hand cars accounts for the rapid ageing of the vehicle population and increases vehicle operating costs and the number of accidents. Although there has been an improvement in the state of vehicles in circulation over the last ten years, the sheer number of old vehicles continues to pose a problem in terms of reliability, safety and pollution. Vehicles that are more than twelve years old make up 52% of private cars, 64% of minibuses and light-duty trucks, 73% of buses and motor coaches and 66% of trucks and trailers. Measures have been taken to improve on the technical condition of vehicles. Hence, an international (private) company undertaking technical vehicle inspection, with a capacity of about 100 vehicles/day, has signed a concession contract with

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the National Department of Land Transport (NDLT) to conduct a systematic technical inspection of second-hand vehicles before they are registered, insured or put to use. New vehicles are inspected after two years. In the other urban areas, the car ownership ratio, which is much lower, rose from 3.1 vehicles per 1000 inhab. in 1993 to 3.6 vehicles per 1000 inhab. in 2002. Traffic 3.2.2 Over the last few years, Guinea’s road network has borne an estimated annual total traffic of 1.3 billion passenger-kilometers for passenger transport and close to 1 billion ton-kilometers for freight transport. The paved road network bears close to 80% of this traffic, which includes about 18-25% of the heavy goods vehicle traffic that is one of the main causes of early degradation of paved roads. Better protection of the national paved road network will soon be ensured through the setting up of weight-toll stations for which a national competitive bidding process is underway for the construction work and selection of concessionaires. 3.2.3 Studies conducted in Conakry have established that the city absorbs more than half of the national traffic in terms of passenger-kilometers and ton-kilometers. The daily average traffic per year (DATY) in Conakry ranges from 20.000 to 45.000 vehicles/day on the primary network. It is growing by an average rate of 8%/year for light vehicles and 3%/year for heavy goods vehicles. This growth in traffic leads to traffic jams whose consequences have already been analysed in Paragraph 2.1.4 above. The volume of traffic on the inter-urban network is about 6000 vehicles/day near the capital Conakry and ranges from 800 to 1500 vehicles/day near the provincial capitals. Given the general state of the road network which is deemed acceptable and the high number of old vehicles, transportation is carried out under difficult conditions which do not always guarantee the safety of persons and goods. However, a sharp improvement in the situation is expected at the end of the rehabilitation and periodic maintenance programs initiated over the last few years and the continued application of attendant measures governing the technical inspection of vehicles. 3.3 Road transport industry 3.3.1 The highly competitive road transport market in Guinea is controlled by private small-scale and informal transporters. Anyone is free to engage in this activity, although its practice is subject to registration in the road transporters register and ownership of at least one vehicle. Road transport is carried out by transporters from Guinea and others from the sub-region who are specialized in inter-State transport. These national operators of the transport industry are organized into two groups which operate over the entire national territory, namely: the National Inter-professional Federation of Free Unions of Transporters, Mechanics, Fishermen and Sea Farmers, as well as the National Union of Road Transporters. Transport tariffs are set by mutual agreement between the Ministry of Transport and trade unions, for passenger transport, and by direct and free negotiation between transporters and loaders for freight transport. This situation stems from the fact that supply is greater than demand for freight transport and this makes it possible for the freight owner to negotiate the best transport costs on the market. 3.3.2 The road transport industry in urban areas, dominated by mass transit taxis and minibuses, is also characterized by the high number of old vehicles and the disparity between the supply and demand. There is inadequate supply of passenger transport during peak hours

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and oversupply at off-peak hours, which leads to systematic overloading of vehicles during peak hours (at least 30 persons in a minibus instead of 17) as well as disorganized and dangerous occupancy of the road by waiting passengers. Meanwhile, goods transport is constantly in excess supply. The trade unions manage public transport and the bus stations where they ensure compliance with established regulations and organize drivers to take turns transporting passengers. In a bid to improve circulation in the capital Conakry, a study on traffic fluidity was conducted with AFD financing. A traffic circulation plan was prepared and additional urban development activities were defined. The results of that study were validated during a workshop but are yet to be adopted by the Government. Implementation of these results will help to improve traffic fluidity in Conakry in general and on project infrastructure in particular. The Government has to finalize this study in consultation with the AFD which is ready to positively examine possibilities of financing actions for the implementation of the recommendations of the said study. Proof of the adoption of the recommendation of this study is one of the grant conditions (Condition Ten). 3.4 Road construction industry 3.4.1 Guinea has good quality construction material that can be easily exploited. However; it has a long rainy season that lasts for about five months of the year. The road construction industry is recent in Guinea. There is a proliferation of public works and civil engineering SMEs (more than 400) but their performance remains poor, except for three of them. The participation of local enterprises in road construction remains limited because they rarely satisfy the criteria for technical qualification (in terms of previous projects executed, available material and business turnover) as required in the bidding documents. As a result, foreign companies are usually recruited for the execution of major projects through international or national competitive bidding. The SMEs execute subcontracted works such as the building of culverts and small bridges. Road studies, control and supervision of works are usually conducted by foreign consultancy firms. However, over the past few years, small consultancy firms capable of conducting studies of average importance (studies on small permanent structures and building of farm-to-market roads) have emerged and are becoming increasingly more viable. 3.4.2 Capacity building for local SMEs and consultancy firms is one of the priorities of Government policy in the road sub-sector. The Government is organizing training for SMEs, with European Union assistance, in the area of bid preparation (determination of unit price, preparation and presentation of bids, field trips, financial management…) to encourage the emergence of SMEs specialized in road construction and capable of carrying out good financial management. Furthermore, to enhance the level of equipment used by public works SMEs, the Government obtained a consignment of public works equipment with a European Union grant, to equip two enterprises engaged in routine maintenance of paved roads and one company producing aggregate. This equipment will be given to the enterprises under a lease agreement after a restrictive bidding process. 3.5 Administration of the road network and staff training Administration of the road network 3.5.1 The new Government formed in February 2004 shared the responsibilities of the Ministry of Public Works and Transport (MPWT) between the Ministry of Public Works (MPW) and the Ministry of Transport (MT). The MPW is in charge of national road

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infrastructure, the urban primary road network and, by delegation, the prefectoral and community networks. It exercises supervisory authority over external services such as the Public Works and Civil Engineering Laboratory (PWCEL) and the National Geographic Institute (NGI). The MT is in charge of road transport operations as well as the management and operation of air, rail and maritime transport infrastructure. 3.5.2 The MPW operates through national technical departments, notably the National Department of Road Investments (NRID), the National Department of Road Maintenance (NDRM) and regional departments. The NRID is responsible for standardization, programming, study and implementation of road projects. It has three technical divisions, including the Road Projects Technical Control Division (RPTCD) and a technical staff composed of 29 civil engineers, including the director and two women, one building engineer and 6 engineering aides including 2 women. The NDRM is responsible for programming and execution of maintenance work within the framework of gradual privatization of such works; it has two central technical divisions and two regional road maintenance offices. The management of the road network is equally improved through the weight-toll stations referred to in Paragraph 3.2.2. 3.5.3 The administration of the secondary and tertiary network in Conakry is the responsibility of the Governorate and the local authorities through decentralized technical structures with programming and execution duties similar to those of the central structures of the MPW. The administrative structure set up to administer the national and urban road network is good, although it requires better coordination of actions between the MPW responsible for management of the national and urban road network, and the Governorate and the Ministry of Housing responsible for the secondary road network. Staff training and retraining 3.5.4 The Government’s policy of privatizing road projects and the attendant redefinition of the duties of Departments in charge of roads, highlighted the need to build the capacity of these departments in the areas of planning, programming and administration of the sub-sector. Short training courses attended by managerial staff of the administration over the last ten years, were financed by the EDF and World Bank under various road projects. Other types of training, notably in project appraisal, are provided by technical assistants or consultancy firms during the conduct of commissioned studies. On the whole, retraining needs in road engineering techniques and permanent structure technology remain unaddressed. The NRID has no scientific contract management tools for new works and technical calculation that can enable it to efficiently conduct its new project supervision missions. To that end, the current project makes provision for institutional support to build its technical and operational capacities. 3.5.5 The managerial staff working in the decentralized structures in the various urban districts of Conakry have practically no possibility of attending refresher courses in order to enhance performance of their tasks and responsibilities. In response to this training need, the UDP3 financed by the World Bank and whose first phase is underway, has a component on capacity-building for decentralized structures, to improve the management performance of urban councils. Furthermore, the MPW and the Governorate of Conakry intend to institute a platform for enhancement of their technical collaboration. In the current project, the Governorate will be represented by the Interministerial Project Monitoring Committee.

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3.6 Road maintenance 3.6.1 In the implementation of its policy to ensure sustainability of urban road and network maintenance, the Government took a certain number of measures relating to: (i) the reorganization of services in charge of roads, with the attendant reinforcement and redeployment of national capacities including the privatization of road maintenance and; (ii) sustainability and safeguarding of its financing. All these road maintenance works were executed on a contract basis after a bidding process. The NDRM is responsible for preparing and implementing road and network maintenance programs, as well as monitoring and control of corresponding works. In execution of this new mission and considering its staff renewal constraints, the Government lays special emphasis on capacity building for services in charge of roads and networks and continuation of the deconcentration and decentralization process initiated 10 years earlier. 3.6.2 The national highways and the primary roads of Conakry are managed by the Regional Road Maintenance Offices (RRMO) of the MPW, found in each of the country’s geographical regions including Conakry, while the secondary and tertiary roads are managed by the local authorities. The maintenance activities executed by the MPW are prepared by technicians distributed in the 33 Public Works Sectors, who travel to every part of the networks and prepare information reports that they send back as itinerary plans to the RRMO and then to the NDRM where such information is processed. Every October, RRMO officials meet at the NDRM and, depending on the available resources, establish an order of priority for works and submit their road maintenance program to the RMF board of directors. 3.6.3 All routine and periodic maintenance works are conducted on a contract basis. The construction of the Kénien – Bonfi feeder road, which connects to the Tombo – Gbessia Highway, helps to solve traffic congestion problems and opens up access to densely populated poor areas. Considering the importance of this road, the Government has decided to reclassify it as a primary road, so as to include it in the network that has to be maintained with RMF financing. Government commitment to reclassify the Kénien – Bonfi feeder road and the effective reclassification thereof shall be one of the grant conditions. 3.7 Financing of the road sub-sector Financing of road investments 3.7.1 More than 80% of road investments are financed with external resources. Apart from the ADF, the main donors intervening in road projects are the AFD, the European Union, the World Bank, the OPEC Fund, ABEDA, KDF, SDF and IsDB. The Government makes a counterpart contribution that varies with the financial partner concerned. The objective of these projects is to improve the service level of the network so that it can efficiently contribute to Guinea’s economic development. 3.7.2 The main donors for urban roads are: a) the World Bank which currently finances UDP3 with an IDA loan of US$ 18 million. This project, whose objectives include creating access roads to the neighborhoods, entails drainage of Conakry, improvement of some secondary roads in the city and institutional support to local councils to help them defray their recurrent infrastructure costs and enhance their role of supervising the secondary roads; b) the Kuwaiti Fund which currently finances the following urban roads: the Tombo-Gbessia road for US$ 20 million, Anco-5-Sonfonia (T4-T7) US$ 10 million; technical studies and works on the Matoto-Km 36 road for US$ 7 million; and the Matoto-Dabonpa road for US$ 16 million.

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Financing of road network maintenance 3.7.3 Until 2003, road maintenance was financed with the national budget. The amounts allocated, as contained in the accounts of the National Department of Road Maintenance (NDRM) was: GNF 7 billion en 1997; GNF 8.6 billion in 1998; GNF 11.475 billion in 1999; GNF 10 billion in 2000; GNF 13 billion in 2001; and GNF 15.5 billion in 2002. These highly variable allocations only covered 50% of expressed needs. To eliminate constraints to the mobilization of resources needed for road maintenance from the national budget, the Government created a second-generation Road Maintenance Fund (RMF), designed to finance maintenance of the priority road network, evaluated at 8.000 km (covering national and prefectoral roads, the primary network and farm-to-market roads), and having financial and managerial autonomy. It is managed by a committee in which the private sector is represented. Its financing mechanism is based on direct collection of the road maintenance tax (RMT), which comprises part of the special tax on petroleum products (GNF 60/liter of gasoline and GNF 65 /liter of gas oil). 3.7.4 Effective operation of the RMF started in December 2001, with the appointment of its Director General and members of the Board of Directors (BD), the opening of the RMF account and the adoption of instruments fixing tax rates. However, the first board meeting of the RMF held in April 2003 actually marked the start of its activities for 2003 financed mainly with a State subvention of GNF 10.4 billion. Payment of RMT proceeds into the RMF account was effective in 2004. Annual resources actually mobilized for maintenance of the national network and primary roads were GNF 14.448 million in 2003 and GNF 18.530 million in 2004 respectively, whereas real expressed needs were estimated at GNF 32.578 million in 2003 and GNF 31.03 million in 2004. These needs should be covered by the RMT, State contributions, HIPC funds and the European Union. The low percentage of resources mobilized stems from: a) non-payment by the European Union (EU) of its full contribution to RMF resources; b) delays in the institution of the RMT ; and c) non-payment of HIPC resources into the RMF because of Guinea’s failure to attain the completion point. Indeed, the EU contribution of GNF 11.945 billion projected for 2003 and all destined for periodic maintenance was paid in two tranches of GNF 4 billion in 2003 and GNF 7.945 billion in 2004. The rest of the Fund’s resources were used to finance routine maintenance and emergency work. The provisional report of the project technical audit conducted in 2005 with EU financing indicates that the use of resources allocated for periodic maintenance has not been fully justified by the executing agency. According to the EU, the non-justification of the gap noted would automatically lead to reimbursement of the corresponding amount by the Government. Discussions are currently underway between the two parties, not only about solving this particular problem, but also about continuing EU support to the RMF which should stand at 2 to 3 million Euros for 2005-2007. 3.7.5 Routine maintenance needs and a provision for emergency work are estimated at an average of GNF 47.5 billion per year from 2005 to 2007. Considering that fuel consumption rises by 3% for gasoline and 5% for gas oil from 2004, RMT proceeds will bring in about GNF 50 billion into the RMF at a rate of GNF 145/liter for gasoline and GNF 155/liter for gas oil, to be deducted from existing fuel taxes levied by the State of Guinea. Apart from these resources, there will be additional income estimated at GNF 3 billion, from the weight-toll stations to be created in 2006. RMF own resources, evaluated at GNF 53 billion/year, could then cover routine maintenance needs and certain emergency works from 2007. The Government has to take the certain measures to attain this objective and address periodic maintenance needs estimated at

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about GNF 40 billion from 2005, without resorting to external assistance. These measures are: (i) optimizing the efficiency of maintenance expenditure by establishing a proper order of priority for road maintenance works; (ii) conducting technical and financial audits to ensure compliance with procedures, eligibility of expenditure (maintenance works and their control), program implementation quality, execution of works and ascertaining that they tally with resources committed; iii) seeking and adopting an approach that allows for progressive elimination of the financing gap for maintenance needs considering the future growth of the priority network; and iv) getting parliament to adopt the levy of GNF 145/liter of gasoline and GNF 155/liter of gas oil for the RMF. Evidence of provisions adopted to implement these measures in one of the grant conditions (Condition Dvii). 3.7.6 Furthermore, maintenance of secondary and tertiary road networks is financed from the budget of the local councils and Governorate of Conakry, with the financial and technical assistance of UDP3 financed by the World Bank. The road maintenance budget over the last five years for Conakry stood at GNF 6884.21 million while estimated needs stood at GNF 12.5 billion. Under UDP3, the networks are gradually developed through the “Access Roads to Disadvantaged Neighborhoods” sub-component of the UDP, under: a) LCIP (Light Council Initiative Program) contracts prepared every year by each council at the request of the authorities and the people; and b) RPARP (Rehabilitation and Priority Access Roads Program) contracts for heavy construction works on interconnecting roads between neighborhoods. These LCIP and RPARP contracts are financed by the World Bank with US$ 1 million/year per urban district, on condition that the districts bring a maximum counterpart contribution of US$ 200.000. The districts are taking a long time in raising this contribution and this slows down timely intervention on the secondary and tertiary road networks. In a bid to improve collection of this contribution, the World Bank initiated a training program on taxation, tax collection and financial management, under the UDP. This training program is expected to improve the financial autonomy of councils and enhance their participation in the financing of council projects. 4. THE PROJECT 4.1 Design and Rationale of Project 4.1.1 The Tombo-Gbessia road, which underwent repairs (patching and paving of certain degraded sections) in 1995, has two types of surfaces: a flexible pavement in 2 lanes that are 7m wide, with mediocre deflections and a low quality index; and a rigid concrete pavement in two lanes that are 6.8m wide, with many cracks, unpaved shoulders and in very poor state. On the whole, drainage is insufficient and deficient, even non-existent in some cases. On account of the insufficient capacity of drainage facilities, the road is frequently flooded, notably under the Moussodougou bridge in Madina in Gbessia. Moreover, the daily traffic of about 38,000 registered on this road is handicapped by unauthorized commercial activities on the sidewalk, the saturation of the Madina bus station which is connected to the road and disorderly parking by road users. The combination of all these factors causes permanent traffic congestion and raises traffic time up to about two hours on this 10.7 km stretch of road. 4.1.2 Several specific and detailed studies have been conducted on the Tombo-Gbessia Highway, with comparison of various options that include: (i) development of the existing road into 2x2 lanes with no additional features; (ii) development of the road into 2 x 2 lanes with the construction of two roundabouts in Madina and Gbessia; and (iii) development of the

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road in to 2 x 3 lanes on the Tombo-Moussodougou and T1-Gbessia segments and the rest of it into 2 x 2 lanes, with construction of interchanges, roundabouts, pedestrian overpasses and bridges. This last option has the advantage of distributing traffic without creating any traffic conflict, eliminating all cross-traffic and interferences between pedestrians and vehicles. The Government participated in these studies at the national level and at the level of the local government structures in Conakry. The technical design of the road, retained for a duration of 20 years, was drawn up taking into consideration the traffic, urban road transport safety parameters and recommended geometrical characteristics. Also taken into consideration were information and data collected during consultation meetings, within the framework of the participatory approach, notably with: a) beneficiary populations, representatives of road users, women’s groups, the informal sector, the chamber of commerce, industry and handicrafts, NGOs, traders and the business community; and b) local government structures, central administrative services and public security forces in Conakry. 4.1.3 Complete studies were also conducted for the development of the feeder road connecting to the main road, and the standards adopted are those currently in force in Guinea, namely a breadth of 6 meters for secondary urban roads. This feeder road establishes a better connection between the main road and the disadvantaged neighbourhoods of Kenien and Bonfi. In the Madina and Bonfi markets, which are close to the Tombo-Gbessia road and the feeder road, water supply facilities (street fountains) will be made available as part of the project, to ensure access to safe water for traders, who are mostly women and children. The new Yimbaya bus station whose development was preceded by complete studies, will replace the former Madina bus station (situated along the Tombo-Gbessia road), demolished for project needs. The project design was also informed by: (a) lessons drawn from the interventions mentioned in Paragraph 4.1.5; and (b) recommendations of the study on the development of the Yimbaya bus station. The need to build this feeder road, the Yimbaya bus station and the safe water points was confirmed during the consultation meetings mentioned above. 4.1.4 The ‘Institutional Support’ component takes into account the shortcomings of services responsible for managing public road investments and the need to improve the management of the road network and ensure the environmental and social protection of the people in the project area. Furthermore, the seminars planned will supplement and consolidate the physical investments of the project. They are necessary because the structures to be erected (2x3 lanes, interchanges, pedestrian overpasses, bridges, roundabouts) are situated in the very heart of the capital and require a change of habits from the people with regard to movements, street-crossing and commercial practices (petty trading by the roadside). The ADF operation comes as a back-up to Government action to develop road infrastructure in Conakry, improve conditions for the circulation of goods and persons, control unhygienic practices and frequent flooding of the neighborhoods along the road and, indeed, reduce poverty. The training and retraining of managerial staff from the NRID and the NDDPI in new road and permanent structure construction techniques, project supervision missions, project management; and of accountants in efficient project bookkeeping will address the organizational shortcomings and ensure refresher training for the staff of these departments. Technical and financial audits of the project shall be conducted. Periodic technical audits need to be conducted because of the multiplicity of companies and consultancy firms working on the project road and the permanent structures. The point here is not merely to control the project work, but rather to ensure that the facilities are constructed according to the given specifications.

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4.1.5 Several road projects have been financed in Guinea by donors including the ADF. Since 1984, when it first intervened in the road sub-sector, the ADF has financed five operations, comprising three completed projects and two ongoing multinational operations (project and study). There are no projects financed by the Bank in urban areas. However, the UDP financed by the World Bank has helped to enhance the efficiency of the roads department and build the institutional capacity of local councils notably in the maintenance of secondary and tertiary road networks. However, these projects did not cover the social aspect of raising public awareness. To address this shortcoming and reinforce the social impact of the project, seminars have been planned to raise public awareness on road safety, water-borne diseases, malaria control, STDs and HIV/AIDS. Moreover, during preparation of the preceding projects (roads and road networks), institutional shortcomings, delays in the award of contracts and the payment of counterpart funds were identified as obstacles to the implementation of projects financed by donors. To address these constraints, the Government has continued to make efforts to streamline procedures in order to enhance the efficiency of public procurement management. Hence, major reforms have been implemented, notably the restructuring of the NRID, the creation of the Major Projects Control Authority (ACGP), which at the national level is responsible for monitoring projects costing more than GNF 1 billion, privatization of road maintenance and establishment of the second generation RMF. 4.1.6 This appraisal report was prepared using documents from completed studies that were conducted following the participatory approach. The discussions conducted by the project preparation and appraisal missions of April and June 2003, and the reappraisal mission of February 2005 made it possible to have a clear understanding of the people’s needs in terms of accessibility and mobility, as well as synergy between the project and interventions of other donors in the sub-sector. 4.2 Project Area and Beneficiaries Delimitation of Project Area 4.2.1 The Tombo-Gbessia Highway constitutes the backbone of the urban road network in Conakry. This road, its connecting Kenien-Bonfi feeder road, and the Yimbaya bus station are situated in this city which constitutes the direct project area (PA). Being the main hub of national traffic, the PA is composed of five urban districts (Kaloum, Matam, Matoto, Dixim et Ratoma) and covers an area of 450 km2 (or 45 000 hectares). It is a peninsular bordered by mangroves in certain areas where the people engage in sea-salt extraction and rice farming. It has a southern Guinean tropical climate with abundant rainfall averaging 4,100 mm and an average annual temperature of about 26.5° C. The extended project area is the national territory. Population and Poverty Profile 4.2.2 According to the last census of 1996, the PA had a population of about 1.093 million inhabitants (inhab.), or 15.2% of the national population. Going by the intercensal population growth rate of 4.1%, the population of the project area in 2005 was estimated at 1.42 million inhab., representing 52% of the urban population, with a density of 2,428.7 inhab./km2. This density is very high in the environs of Gbessia Airport. (30.000 inhab./km2). Women constitute 47.4% of the population in the PA due to massive male emigration to Conakry. They are organized into 673 groups. Moreover, the PA has more than 50% of urban households and about 15% of the country’s total households the size of its households are

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relatively big (8 persons). About 37% of these households are headed by women. According to the Quibb Survey of 2002 on the wellbeing of the population, about 27% of the population in the PA is poor and 13.6% of them are very poor. However, the PA stands out for the high access rate of its household to potable water, which is 93.7% (compared to the national rate of 62%) and 68.8% for covered latrines (compared to national average of 22.7%). Despite the high rate of access to potable water in the PA, the majority of public places that receive high concentrations of people daily do not have potable water points. Besides, the PA also faces the problem of overpopulation in areas with few roads and very little access to basic social and economic services (health, education and trade services) such as the Kenien and Bonfi neighborhoods. The demand for public transport is very high in these areas as in the rest of the country because of the low car ownership ratio, as mentioned in Paragraph 3.2.1. According to the study on traffic improvement in Conakry, conducted in 2002, the share of household income spent on transport is high and represents about 14% of total expenditure (a value that is practically equivalent to the value for health or housing). Execution of this project will facilitate access to health centers (notably hospitals), since the major ones are situated in the city center, towards Conakry Port. This will contribute to the attainment of the Millennium Development Goal of reducing mortality. 4.2.3 Health data from the PA shows that there is insufficient coverage in health services, just like in the rest of the country. Indeed, the access rate to health services is 64.2% (compared to the national average of 40.8%), which translates into health service coverage ratios of 1 hospital for about 203,000 inhab. and 1 health center for about 62,500 inhab., with an average ratio of 1 physician for every 3,500 inhab. National statistics show that the infant mortality rate is 74.1 per 1000 while maternal mortality rate stands at 528 deaths per 100,000 inhab. The morbidity rate is 21.3% (compared to the national rate of 28.3%). This situation stems mainly from limited compliance with the health map (distance, population) and insufficient infrastructure, low level of healthcare, poor quality of services and insufficient staff and drugs to cope with the massive demand for healthcare. It is noteworthy that in 2003, health services recorded about 81,000 cases of malaria and 4,350 cases of bloody diarrhea in the PA, caused mainly by the use of unsafe water and uncovered latrines (5.3% and 31.2% of the population respectively), both of which are health hazards because they are the source of water-borne diseases. With regard to STDs and AIDS, those who fall within the 25-34 age bracket are most affected. To attain its objective of equitable access to healthcare, the Government lays emphasis on raising the number and quality of health services and HIV-AIDS screening sessions. The installation of potable water points in the markets near the project highway and feeder road, the organization of seminars to raise public awareness and the provision of 10,000 treated mosquito nets to women’s groups in the project area (under service contracts), notably for pregnant women and children under 5, as well as publicized awareness-raising seminars will all contribute to enhancing the Government’ actions in combating the above-mentioned diseases, thereby contributing to the attainment of the Millennium Development Goal of curbing mortality. 4.2.4 According to the QUIDD Survey, the PA has a primary school access rate of 85.9% (compared to the national rate of 75.8%) and a net enrolment rate (children aged 7-12) of about 84.5% compared to 54.1% in the country. These rates are acceptable with a ratio of 40 pupils/teacher. This situation in the education sector is characterized by a significant improvement in the schooling of the young. However, the number of girls attending school (48% of the total pupil population) still remains low. With regard to energy, the Guinean system comprises two interconnected networks, including the Conakry-Kindia-Kankan network that supplies energy to the PA, the surrounding urban area and four villages in the Basse Guinée

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region. It is evident that the most vulnerable social groups are affected by the state of transport infrastructure and the effects of endemic poverty. Women, children under 5 (about 16%), youths below 15 years of age (about 53%) and persons aged 65 and above (about 2.5%) fall within this category and are the main beneficiaries of the project. Execution of the project will speed up the circulation of goods and persons and facilitate transport and timely access to schools, thereby reducing late-coming and even absenteeism. It will enhance public awareness of road safety regulations since sensitization activities will be part of the national program. Economic activities

4.2.5 The PA is the country’s largest administrative and socio-economic center. However, the activity rate (labor that yields revenue in cash or in the form of goods and services), is still low at about 49.2% (of which 42% is in trade and 14% in services). The PA covers the main centers of employment and business (ministries, financial services and trading companies), as well as health, school, commercial and transport infrastructure (notably the Conakry Port, Conakry-Gbessia Airport and the central railway station), most of which is concentrated in the city center. Access to these areas is difficult on account of regular traffic congestion on the Tombo-Gbessia road. The economy of the PA depends mainly on fishing, handicrafts, industries, high-yielding off-season farming and trade through the Conakry Port. The flourishing fishing activities in the PA cover: (a) industrial fishing practiced by men; catches in the PA represent about 35%-45% of national production; (b) fish trade (processing and conservation of fishery products) and marketing of fishery products dominated by women. On the whole, there are: (i) 2,853 female fishmongers (about 92% of the national total) organized into cooperatives (121), found in the urban districts of Kaloum, Matam and Dixim that are directly connected to the main and feeder roads of the project; and (ii) individual female fishmongers who are generally girls aged 14 to 20 and female family heads (who have an average of 16 to 17 dependent persons). These women have 3 (three) fish-smoking centers: two of them in Kaloum and one in Matam. 4.2.6 The handicraft sector covers dyeing, tailoring, embroidery, hairdressing and small-scale catering. As in the rest of the country, the structured industrial fabric in the country is not dense. It represents about 67% of the country’s industrial sector, two-thirds of which is composed of the agro-food sectors. Poultry farming, the most widespread form of stockbreeding, represents about 16% of the national stockbreeding figure. The PA is essentially a commercial center. Intensive commercial activities are concentrated in the markets, including the Madina international market which has about 20,000 traders and the Bonfi market with about 5,900 traders, 80% of whom are women. Moreover, the Madina regional bus station, which receives more than 100,000 persons/day, handles all the traffic coming from the hinterland. However, the absence of adequate road infrastructure constitutes an obstacle to the city’s socio-economic development and increases the vulnerability of the most disadvantaged people. Improvement of the main road and its feeder roads will be beneficial to these men and women because it will guarantee rapid access to the commercial centers where they can quickly sell their often perishable goods. 4.3 Strategic Context 4.3.1 The Tombo-Gbessia road is particularly important to Guinea because it ensures quick access to the Conakry commercial port, the Conakry-Gbessia international airport and rail infrastructure for evacuation of minerals. Its development falls under the implementation of the urban development master plan for Conakry and the NTP. The project falls within the

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framework of an active policy to create more access to the Capital, which is a major economic center for the country, in order to improve living conditions in this city. The main goal of this policy is to relaunch national economic activities and poverty reduction. To that end, the Government has put in place a poverty reduction strategy framework to run till 2015, and initiated several infrastructure programs, some of which have already been implemented and others are either ongoing or under study. The expected positive outcomes of the project are congruent with Guinea’s PRSP objectives and the Bank’s 2005/2006 RBCSP for Guinea. The project will also contribute to the attainment of the Millennium Development Goals through: (i) poverty and famine reduction through better supply of foodstuff and an increase in the incomes of the most vulnerable groups, particularly women; (ii) HIV/AIDS control through protection of the most exposed peoples; (iii) environmental protection through restoration of the surrounding project area; (iv) reduction of maternal and infant mortality through control of water-borne diseases and malaria (second cause of mortality in children under 5). On these last two points, the project intervenes mainly by protecting women and children and facilitating access to health structures for them. 4.3.2 This project is the Bank’s fifth intervention in the road sub-sector under the strategy to increase access roads to various national localities and to neighboring countries. This project reflects the Government’s resolve to build economic development infrastructure that can bolster the creation of wealth and significantly raise living conditions. The proposed project will ease the mobility of the factors of production by improving traffic fluidity and the living conditions of people in the PA. Moreover, it will also provide an effective throughway to Conakry Port for Mali’s Bamako-Kouremale-Kankan-Conakry corridor, by creating a road that is congestion-free at all times. 4.4 Project Objectives

The sector goal of the project is to improve on transport infrastructure, so as to increase the sector’s contribution to GDP and open up access to disadvantaged areas. The specific project objectives are to: (i) enhance traffic fluidity and reduce transport costs and transit time on the Tombo-Gbessia road; (ii) help to improve living conditions for the people in Conakry; and (iii) build the technical and operational capacity of the National Department of Road Investments (NRID) and the National Department of Debt and Public Investment (NDDPI). 4.5 Description of Project Outcomes 4.5.1 The expected project outcomes are summed up as follows:

(i) About 10.7 km of paved road improved between Tombo and Gbessia Airport; 3,407 km of feeder roads developed in Kenien and Bonfi; 8 safe water points installed in the Madina (5) and Bonfi (3) markets;

(ii) 5 (five) interchanges, 2 (two) roundabouts and 7 (seven) pedestrian

overpasses constructed; 2 (two) bridges, one for the road and the other for the railway;

(iii) One (1) bus station built in Yimbaya on a surface area of 41 000 m2;

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(iv) Technical and operational capacity of the NRID and NDDPI strengthened through: (a) retraining of 29 (twenty-nine) civil engineers and 3 (three) accountants in Guinea; (b) training of five managerial staff members in project management abroad; and (c) procurement and network connection of computer equipment, office automation equipment and permanent structures;

(v) About 15,000 people in the project area sensitized to environmental

protection, road safety, malaria control, waterborne diseases, STDs and HIV/AIDS, and protected against these diseases through the distribution of 10,000 treated mosquito nets distributed to women’s groups in the project area (through the awareness-raising seminars contract), with priority given to pregnant women and children under 5.

4.5.2 The entire project comprises three components:

A. Works: They comprise:

(a.1) construction of the Tombo-Gbessia Highway (about 10.7 km),

construction of permanent structures (interchanges, roundabouts, bridges and pedestrian overpasses), improvement of the connecting Kenien-Bonfi feeder road (3,407) and development of potable water facilities as part of the project; and

(a.2) control and supervision of the above-mentioned works).

B. Institutional Support covering:

b.1) technical assistance and retraining in Guinea, as well as training abroad for staff responsible for road and public investments; and

b.2) procurement and network connection of computer and office automation

equipment in the NRID; b.3) seminars to raise public awareness on: (i) road safety, (ii) environmental

protection, and (iii) malaria, water-borne diseases, STDs and HIV/AIDS. C. Project Management, comprising the project monitoring and coordination by the

PMCU, the organization of project sites, and the technical and financial audit of the project.

4.5.3 The works are subdivided into five lots: (a) Lot 1 – the Tombo-Moussodougou road segment (about 1.5 km), - the Kenien-Bonfi connecting feeder road (about 3,400 km) – the Yimbaya bus station; (b) Lot 2 – the Moussodougou-Madina road segment (about 2 km); (c) Lot 3 – the Madina-Kenien road segment (about 3 km) and permanent structures; (d)Lot 4 – the Kenien-T1 road segment (about 2.5 km; and (e) Lot 5 - the T1-Gbessia road segment (about 2km) and permanent structures.

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Detailed Description of Components Financed by the ADF and AFD 4.5.4 The project components financed by the ADF and the AFD come as a supplement to operations financed by ABEDA, KDF, SDF and the Government. They are described below: A - Works, namely:

a.1) improvement of the Tombo-Moussodougou road segment (about 1.425

km), having 2 x 3 lanes with a total breadth of 21 m, separated by a median strip; construction of permanent structures (1 interchange with two loops, 2 roundabouts, 1 pedestrian overpass and 2 bridges at Moussodougou, one on the road and the other on the railway); improvement of the Kenien-Bonfi connecting feeder road (3,407 km); installation of 8 street fountains – 5 in Madina market and 3 in Bonfi market;

a.2) improvement of the Yimbaya bus station on an area of 41,000 m2; a.3) control and supervision of works on the Tombo-Moussodougou road

segment and the Kenien-Bonfi feeder road; and a.4) control and supervision of works on the Yimbaya bus station.

B - Institutional Support comprising:

b.1) technical assistance to the NRID for the setting up of computer applications for technical calculations and management of contracts for new works, as well as retraining in Guinea for: - 29 civil engineers from the NRID in new road and permanent structure construction techniques, environmental management and works supervision (programming, budgeting and procurement); – 3 accountants, including two from the NRID and one from the NDDPI in project accounting, grants and loans;

b.2) training abroad of 5 (five) managerial staff members in project

management (4 from the NRID and 1 from the NDDPI; b.3) procurement and network connection of computer and office-automation

equipment in the NRID; b.4) seminars to raise public awareness on: (i) road safety, (ii) environmental

protection, and (iii) malaria, water-borne diseases, STDs and HIV/AIDS. C -. Project Management comprising:

c.1) monitoring and coordination of the project by the PMCU covering the functioning of this Unit;

c.2) consultancy services for organization of work sites; c.3) technical and financial audit of the entire project.

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Construction of Roads, Permanent Structures, Bus Station and Water Points 4.5.5 The Tombo-Moussodougou road segment will have two paved road strips 21 m wide with 2x3 lanes and separated by a median strip that is 1.6 to 2 m wide. The road structure shall be composed of a 20 cm thick sub-base course of crushed gravel, a 13 cm thick base course of bitumen-treated gravel, and a 7 cm surface course of bituminous concrete. A complete interchange in reinforced concrete and two bridges (one on the road and the other on the railway) will also be constructed. A pedestrian overpass in reinforced concrete will be constructed near the Palais du Peuple to connect the courtyard of this building to the sidewalk that runs along the lagoon. 4.5.6 With regard to the Kenien–Bonfi feeder road, its structure shall be composed of: a) a sub-base course of gravelly laterite (15 cm), a base course of 0/20 stone chippings (18 cm) and a surface course in bituminous concrete (5 cm). Underground drains will be constructed to channel away surface runoff water. 4.5.7 Moreover, 8 (eight) street fountains (SF) will be constructed in the Madina (5) and Bonfi (3) markets to provide safe drinking water. Each SF shall have a blinding slab, a drainage well and four taps. These SFs shall be managed by the administrations of the two markets. 4.5.8 Furthermore, the Yimbaya bus station shall be constructed on an area of 41,000 m2 with the following facilities: (i) loading bays for at least 9 minibuses and 57 taxis for urban transport, 20 buses and 84 minibuses for inter-city transport; (ii) leasable areas composed of 2 refreshment stalls on a surface area of 40 m², 1 toilet on 75 m², 20 telephone booths, a luggage store on 100 m² and 8 shops on 15 m² each. Construction work will cover a 2x1 lane access road that is 250 m long, a roundabout, sheds and offices, and water and sanitation facilities. Environmental measures will be taken into consideration. It should be noted that the present Madina bus station is currently managed by a group of trade unions and government representatives. However, the revenue collected, notably user fees and rent income (from booths, stalls, toilets, luggage stores, etc...) is used for other purposes and not for defrayment of the bus station’s maintenance costs. To ensure the sustainability of the planned investment, the Government has to ensure the rational operation of the new Yimbaya bus station. An undertaking to ensure the sound management of the Yimbaya bus station, in terms of operation and maintenance, is one of the grant conditions (Condition B iii). The Government has opted for management by leasing for this new bus station, but the final instrument defining the management modalities has not yet been issued. Submission to the ADF of a formal instrument defining the management modalities of the Yimbaya bus station is one of the grant conditions (Condition Ci). Moreover, a management contract shall be signed between the Government and the private operator. However, the draft contract shall first of all be submitted to the ADF which shall issue a notice of no-objection. Submission of the management contract signed between the private operator and the Government for the Yimbaya bus station is also one of the grant conditions (Condition Di). Submission to the ADF of the bus station’s maintenance program is also one of the grant conditions (Condition D iv).

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Control and Supervision of Works 4.5.9 These services cover construction work on both the road and the bus station, technical and environmental quality control for the construction work, preparation of monthly reports for the government and quarterly reports for donors. Moreover, the consultancy firm shall hire a specialized laboratory for all geotechnical tests on site and in the laboratory. The consultancy team must include an environmentalist who shall ensure that environmental and safety measures are implemented during the construction work. Furthermore, the firm shall provide special on-the-job training to experts designated by the executing agency. Institutional Support 4.5.10 This support covers: (i) technical assistance to the NRID for the setting up of computer complications for management of contracts for new works and technical calculation; (ii) retraining in Guinea of civil engineers and accountants from the NRID and the NDDPI. The retraining course will be organized in two annual sessions of three months with 15 days of training per month. The engineers will be distributed into three groups of about 10 persons/group; (iii) training in project management in a training institute abroad for five managerial staff members (four from the NRID and one from the NDDPI); and (iv) procurement and network connection of computer and office automation equipment at the NRID and training of staff on the use of such equipment. This support also covers the organization of publicized seminars to raise popular awareness on road safety, environmental protection, malaria, water-borne diseases, STDs and HIV/AIDS. Treated mosquito nets shall be procured under the seminar organization contracts and distributed, through women’s groups in the PA (and with the assistance of local elected officials), to pregnant women and children under 5. Project Management 4.5.11 Project management covers: A) project monitoring and coordination through the PMCU and will cover: (a.1) provision of office, transport and computer equipment to the Unit. It should be noted that this equipment has already been procured with financing from the Kuwaiti Fund and will be used for activities in the entire project. At the end of the project, they will be transferred to the NRID and will supplement the new equipment to be procured as part of institutional support to the NRID; (a.2) functioning of the PMCU. It will be financed by the Kuwaiti Fund right up to the end of works on Lots 2 to 5 projected for 2006. The rest of the financing shall be contributed by the ADF for the remaining duration of works for Lot 1 projected to finish at the end of 2008; B) the services of an individual consultant, for the organization of the project site (financing of this consultant shall be borne entirely by the ADF). 4.5.12 Management also covers the technical and financial audit of the project. The technical audit of works, to be conducted every six months, entails ensuring compliance with the project’s technical specifications and the conformity of procurements. 4.5.13 The organization of publicized seminars to raise popular awareness on road safety, environmental protection, malaria, water-borne diseases, STDs and HIV/AIDS. These seminars should target an estimated population of at least 50,000 persons. They will reinforce Government actions in the targeted areas and shall be conducted according to the national schedule drawn up to that effect.

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4.6 Impact on the Environment 4.6.1 The project is classified in Category 1, given its nature and its potential direct, indirect or induced effects. The ESIA was conducted through a participatory approach with due consideration for the people’s concerns. Moreover, the ESIA was put at the disposal of the public. The environmental assessment conducted on site shows that the most affected areas will be limited to the environs of the present road and the measures planned will mitigate such negative effects. The environmental and social impacts of the study and the mitigative measures are outlined in the summary ESIA forwarded to the Bank’s Public Information Centre. This summary and its addendum were also forwarded to the Board for information in July 2003 and May 2005, respectively. Positive Impact 4.6.2 Improvement of the road will generate positive effects such as the enhancement of road safety, the reduction of transport costs (notably for disadvantaged social groups) and transit time, and the improvement of living standards and conditions for the inhabitants of Conakry, thereby contributing to poverty reduction (a millennium development goal). Other positive effects are presented in detail in Paragraph 4.7. Potential Negative Impact 4.6.3 During the works, potential negative effects could come from: (i) increased gas emissions from the manufacture and spreading of plant mix; (ii) dust emissions from the spreading of materials; (iii) eventual spillage of environmental pollutants (drainage oils, wastewater and other waste) on the land and in the rainwater drainage systems; (iv) felling of trees (kapok trees, palm trees, etc.); (v) land subsidence due to the passage of heavy goods vehicles within a radius of about 500 m; (vi) noise pollution and vibrations mainly due to the operation of compressors, percussion drills and other equipment, the circulation of vehicles and the operation of stone crushers; (vii) temporary problems of access to nearby homes and expropriation. 4.6.4 During operation of the project roads, the foreseeable negative effects will relate to: (i) increased runoff of rainwater which could cause floods in the valleys; (ii) increased risk of road accidents due to higher speed by vehicles if appropriate measures are not taken; and (iii) increased risk of accidental spillage of toxic substances in the gutters and outlets. Mitigative Measures and Site Restoration 4.6.5 The measures advocated to mitigate the negative impact of the project, notably resettlement of displaced persons, are outlined in detail in the Environmental and Social Management Plan (ESMP) and the resettlement plan (RP) approved by the ADF. They mainly concern: (i) maintenance of access roads and deviations, and daily watering of these unpaved roads;(ii) equipment of the holding reservoir in the airport area with a siphon weir to speed up drainage, thereby limiting the risk of overflow in the basin in case of torrential rains; (iii) the opening of the drainage outlets in natural thalwegs, notably in the valleys of Dabondi and Bellevue, the construction of erosion control structures to limit the effects of runoff water; (iv) the inclusion of a “good environmental performance” clause in the contracts of enterprises making it mandatory for them to recover drainage oil and recycle it if possible and collect all waste matter from construction works.

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4.6.6 Construction work to enlarge the Dabondi embankment shall not interrupt the flow of water from the lake, even temporarily. Measures have to be taken jointly by the NRID and the Ministry of the Environment to ensure that this body of water keeps flowing. 4.6.7 The project site shall be cordoned off with very clear signs and markings. All construction equipment shall be fitted with backup alarms. Pedestrian movement shall be allowed under good safety conditions especially at road junctions and economic centers. Marked corridors will be created for pedestrian crossing, where necessary. During the launching and execution of works, road safety information and sensitization campaigns need to be conducted for communities living near the project road and drivers, especially those driving heavy goods vehicles. There are plans in the project to set up road signs limiting vehicle speed at sensitive points. The embankment slopes in five road junctions will be developed into green spaces with lawns and ornamental plants. 4.6.8 Quarries shall be clearly demarcated and operated in accordance with the provisions of the Mining Code and the Environment Code. Persons whose crops are destroyed in borrrow areas shall be compensated by the companies concerned. At the end of the project, the quarry sites have to be rehabilitated. Revegetation shall be done, subject to the approval of the landowners, by planting appropriate tree species that can be exploited rationally. The measures provided for in the ESMP shall be included in the terms of reference given to companies. This is one of the grant conditions (Condition Bi). 4.6.9 NGOs shall organize a publicized awareness-raising drive on water-borne diseases, STDs and HIV/AIDS, environmental protection and road safety using chat sessions, posters and banners. This campaign will target pupils, students, transporters’ unions, drivers and especially women, children and adolescents. 4.6.10 The control mission (CM) and the PMCU shall monitor the implementation of environmental and social measures and look for appropriate solutions to environmental problems. The CM shall also provide on-the-job training in social and environmental protection, management and monitoring to managerial staff from the NRID. The PMCU team shall be reinforced with one environmentalist from the ME, who shall work on a part-time basis to ensure implementation of environmental measures. Quarterly reports on environmental monitoring shall be sent to the ADF. Compensation shall be paid for expropriated land. Submission to the ADF of proof of payment of such compensation and of availability of a resettlement site, approved by the ME, is one of the grant conditions (Condition Ci and Cii).

4.6.11 The project provides for the demolition of fences, houses, administrative buildings, market stalls and workshops. The final results of studies carried out by the Inter-ministerial Technical Committee on Expropriation and Compensation (ITC) show that 565 buildings (most of which are of low and average standing and in squatter settlements) will be affected by the works. About 273 families will be affected (49 of them in Lot 1 financed by the ADF and AFD) representing 2,085 persons (293 of them in Lot 1). These families shall be compensated before the start of works, in accordance with procedures of the DHACO and DOCAD of the Ministry of Town Planning and Housing (MTPH). A list of these persons has also been finalized by the Government, in accordance with the relevant Bank policy.

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4.6.12 According to ITC findings, the overall amount of compensation is GNF 6,267,627,131, of which GNF 5,513,153,928 will be paid for private property. The Government had already paid GNF 2,306,494,911 in 2004 for works in Lots 3 and 5. The remaining balance is GNF 3,213,153,928 comprising: (i) the sum of GNF 1,451,565,446 for works in Lots 2 and 4, (ii) the sum of GNF 854,202,446 for works on the Tombo-Moussodougou road segment, (iii) the sum of GNF 907,286,036 for works on the Kénien-Bonfi feeder road. Moreover, the cost of environmental protection activities (monitoring of environmental measures, sensitization), estimated at GNF 428.57 million, are included in the project costs. It is noteworthy that the other costs related to rehabilitation of borrow pits, quarries, clean-up operations, land embellishment and signposting are included in the construction costs. 4.7 Social Impact Impact on Gender 4.7.1 Many benefits are expected from the project during both the execution and operational phases. Its greatest gender-related (men-women) benefits are: (i) the increased mobility of about 600.000 persons in the PA (users of transport services including women); (ii) the reduction of fuel consumption that could translate into a reduction in passenger transport fares, as a result of improved speed and a substantial reduction in congestion points; (iii) a 20% increase in the supply of transport; (iv) an improvement in health conditions for about 25,900 traders (80% of them women) in the Madina and Bonfi markets, through the construction of eight street fountains to directly supply potable water to these markets; (v) improved access, in terms of personal comfort and safety, to employment areas (basic administrative and social services, commercial centres, etc) and centers of economic activity, notably for women from the project area and those coming from the hinterland with the resulting development of trade, opportunities and higher incomes due to increased product sales; (vi) a reduction of more than 80% in passenger transit time on the Tombo-Gbessia road (15 mn instead of the current one and a half hours).

4.7.2 Moreover, the major drainage works planned for the project (which account for 22% of construction costs) will help to reduce rainy season floods: (a) on the main roads of the four urban districts (Kaloum, Matam, Matoto et Dixim) covered by the project infrastructure and which have more than 70% of the households in the PA; and (b) in the neighboring markets (Madina and Bonfi). This will help to enhance the quality of the human environment. Furthermore, the Kénien-Bonfi feeder road will facilitate direct access to health services in the city center for about 45,000 persons (47% of them women), thereby reducing the time needed to evacuate patients to hospital. Pedestrian overpasses, roundabouts, interchanges, roadside parking bays and parking lots will be provided to ensure the safety of the people in the PA. The sensitization seminars will raise awareness on the risk of endemic diseases such as malaria, water-borne diseases, STDs and HIV/AIDS. These activities will supplement the national program, reinforce the priority services planned for Conakry under UDP3 (garbage and solid waste collection, etc...) and help protect the people in the PA against poor sanitation and its effects, and even curb mortality. Impact on poverty 4.7.3 Execution of the project will reduce transport expenses by about 10% (mentioned in Paragraphs 4.2.2) for households in Conakry, which can then devote the earnings generated to other expenses (health, food, etc). It will also raise the profitability of public

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transport (no more vehicle rotation) which could bring down transport fares. New jobs will be created during the construction phase for some semi-skilled and unskilled workers in the national labor force (youths and manual workers). Considering the projected number of jobs (about 700 persons) and the minimum revenue required (about GNF 175,000), based on the experience in the country, at least GNF 122.5 million will be distributed to this workforce during the construction phase from 2003 to 2008. Women will also benefit from this project through the transport facilities that will ease their chores, increase their incomes, and raise household living standards. Drainage works on the main road, feeder road and related market infrastructure (Madina and Bonfi markets) will improve the hygiene and health status of the main users of these markets who are women and children. Furthermore, the construction of the new Yimbaya bus station will enhance user comfort and provide extra facilities. The operation of such facilities will generate about 175 new jobs (guard service, building maintenance, etc...), with 150 of them held by women. These women will reap direct benefits from the development of sales and catering activities in the bus station. 4.7.4 After project completion in 2008, the experience acquired by the youth and manual workers in the PA could be used to ensure bi-annual routine road maintenance, notably cantoning that should bring in an annual income of about GNF 10.5 million revenue for about 30 persons. Such remuneration will come as an addition to the people’s current income from peddling of various products. These cantoning activities and the revenue generated therefrom could address the need for paid employment for youths and, to a certain extent, reduce their level of poverty. Lastly, the reduction in transport fares resulting from the improved state of the road will boost commercial activities in the PA and bolster the burgeoning informal economy that is dominated by women. The living conditions of the people will also be improved through the awareness-raising campaigns to be conducted in markets, schools, health centres and other places. The project will thus contribute to attainment of the Millennium Development Goal of reducing poverty as well as infant and maternal mortality. 4.8 Project Costs 4.8.1 The estimated project cost, net of taxes and customs duties (NTCD) and net of expropriations, is GNF 164,465.51 million (UA 55.91 million), of which GNF 129,365.97 million (UA 43.98 million) is in foreign exchange and GNF 35,099.54 million (UA 11.93 million) in local currency. The estimated cost, NTCD and net of expropriation, of components proposed for financing to the ADF and the AFD, is GNF 49,622 million (UA 16.89 million) of which GNF 37,240 million (UA 12.65 million) is in foreign exchange, and GNF 12,440 million (UA 4.23 million) in local currency. The provision for physical contingencies is 10% of the basic cost. The 8.4% provision for price contingencies corresponds to an annual inflation rate of 2% for costs in foreign exchange and 12% for costs in local currency. This project cost was established following a detailed study on the Tombo-Gbessia road and the study on the Yimbaya bus station, both updated in 2003 and 2005. The total amount of compensation for expropriation of private property (to be defrayed by the Government) represents the equivalent of UA 1.87 million, including UA 0.6 million for components financed by the ADF and AFD. The amount of taxes for the project is estimated at GNF 42,761.03 million (UA 4.39 million), including GNF 12,901.72 million (UA 4.39 million) for components financed by the ADF and AFD. A summary of the estimated cost of the project and of components financed by the ADF is presented in Tables 4.1 and 4.1 bis below.

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Table 4.1 Summary of Estimated Project Costs by Component

In GNF million In UA million

Components F.E. L.C. Total F.E. L.C. Total A. Works 104 268.46 28 185.32 132 453.53 35.44 9.58 45.03a.1 Improvement of the Tombo-Gbessia road 92 960.46 24 831.87 117 792..33 31.60 8.44 40.04a.2 Development of the Kénien – Bonfi feeder road 2, 521.10 840.37 3 361.46 0.86 0.29 1.14a.3 Construction of the Yimbaya bus station 3 798.31 1 266.10 5 064.41 1.29 0.43 1.72a.4 Control & monitoring of works on Tombo-Gbessia road 4 516.49 1 129.03 5 645.52 1.54 0.38 1.92a.5 Control & monitoring of works on Kénien-Bonfi feeder road 188.24 47.06 235.30 0.06 0.02 0.08a.6 Control & monitoring of works on Yimbaya bus station 283.61 70.90 354.51 0.10 0.02 0.12B Institutional support 2 753.09 1 307.35 4 060.13 0.94 0.44 1.38b.1 Training in project management (abroad) 102.14 102.14 0.03 0.00 0.03b.2 Technical training/Retraining (in Guinea) 44.99 104.99 149.98 0.02 0.04 0.06b.3 Computer and office automation equipment – NRID 1 523.20 652.80 2 176.00 0.52 0.22 0.74b.4 Technical assistance to NRID 1 082.75 270.69 1353.44 0.37 0.09 0.46b.5 Sensitization seminars 0 428.87 428.57 0 0.15 0.15C Management 2 135.20 271.98 2 407.18 0.73 0.10 0.82c.1.Project monitoring and coordination c.1.1 Functioning of the PMCU 975.11 271.97 1 247.09 0.33 0.09 0.42 c.1.2 Expert in project site organization 857.46 0 857.46 0.29 0.00 0.29c.2 Technical and financial audit of project 302.628 0.00 302.63 0.10 0.00 0.10Basic costs 109 156.97 29 914.. 35 139 070.83 37.11 10.17 47.28Physical contingencies (10%) 10 915.65 2 653.70 13 569.35 3.712 0.90 4.61Financial contingencies (8.4 %) 9 293.84 2 531.49 11 825.33 3.16 0.86 4.02Total cost NTCD and net of expropriations 129 365.97 35 099.54 164 465.51 43.98 11.93 55.91Compensation for expropriation - 5 513.15 5 513.15 0.00 1.87 1.87

Table 4.1 bis

Summary of Estimated Cost of Components Financed by the ADF and AFD

In GNF million In UA million Components F.E. L.C. Total F.E. L.C. Total A. Works 27 318.46 8 947.98 36 266.44 9.29 3.04 12.33a.1 Improvement of the Tombo-Gbessia road 19 101.00 6 367.00 25 468.00 6.49 2.16 8.66a.2 Development of the Kénien – Bonfi feeder road 2 521.10 840.37 3 361.46 0.86 0.29 1.14 a.3 Construction of the Yimbaya bus station 3 798.31 1 266.10 5 064.41 1.29 0.43 1.72 a.4 Control & monitoring of works on Tombo-Gbessia road 1 426.21 356.55 1 782.76 0.49 0.12 0.61a.5 Control & monitoring of works on Kénien-Bonfi feeder road 188.24 47.06 235.30 0.06 0.02 0.08 a.6 Control & monitoring of works on Yimbaya bus station 283.61 70.90 354.51 0.10 0.02 0.12 B Institutional support 2 753.09 1 307.35 4 060.13 0.94 0.44 1.38b.1 Training in project management (abroad) 102.14 102.14 0.03 0.03 b.2 Technical training/Retraining (in Guinea) 44.99 104.99 149.98 0.01 0.04 0.05 b.3 Computer and office automation equipment – NRID 1 523.20 652.80 2 176.00 0.52 0.22 0.74 b.4 Technical assistance to NRID 1082.75 270.69 1 353.44 0.37 0.09 0.46 b.5 Sensitization seminars 0 428.57 428.57 0 0.15 0.15C Management 1 160.09 28.20 1 188.29 0.39 0.01 0.40c.1.Project monitoring and coordination c.1.1 Functioning of the PMCU 28.20 28.20 0.01 0.01 c.1.2 Expert in project site organization 857.46 857.46 0.29 0.29 c.2 Technical and financial audit of project 302.63 302.63 0.10 0.10 Basic costs 31 231.63 10 443.23 41 664.86 10.61 3.55 14.16Physical contingencies (10%) 3 110.91 1 024.31 4 135.22 1.06 0.36 1.42Financial contingencies (8.4 %) 2 874.48 946.46 3 790.65 0.98 0.33 1.31Total cost NTCD and net of expropriations 37 240.60 12 440.58 49 622.00 12.65 4.23 16.89Compensation for expropriation 1 761.49 1 761.49 0.60 0.60

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4.8.2 The summaries of estimated project costs by expenditure category and of estimated costs by expenditure category financed by the ADF and AFD are presented in Tables 4.2 and 4.2 bis, respectively

Table 4.2 Summary of Estimated Project Costs by Expenditure Category

Categories m i l l i o n s G N F In UA million F.E. L.C. Total F.E. L.C. Total

A. Goods Computer and office automation equipment – NRID 1,523.20 652.80 2176.00 0.52 0.22 0.74B Works b.1 Improvement of the Tombo-Moussodougou road 92 960.46 24 831.87 117 792.33 31.60 8.44 40.04b.2 Development of the Kénien – Bonfi feeder road 2 521.10 840.37 3 361.46 0.86 0.29 1.14b.3 Construction of the Yimbaya bus station 3 798.31 1 266.10 5 064.41 1.29 0.43 1.72C Consultancy services c.1 Control & monitoring of works on Tombo-Moussodougou 4 516.49 1 129.03 5 645.52 1.54 0.38 1.92c.2 Control & monitoring of works on Kénien-Bonfi feeder road 188.24 47.06 235.30 0.06 0.02 0.08c.3 Control & monitoring of works on Yimbaya bus station 283.61 70.90 354.51 0.10 0.02 0.12c.4 Training in project management (abroad) 102.14 102.14 0.03 0.00 0.03c.5 Technical training/retraining (in Guinea) 44.99 104.99 149.98 0.05c.6 Technical assistance to NRID 1 082.75 270.69 1 353.44 0.46c.7 Sensitization seminars 0 428.57 428.57 0.00 0.15 0.15c.8 Expert in project site organization 857.46 0 857.46 0.29 0.00 0.29c.9 Technical and financial audit of the project 302.628 0.00 302.63 0.10 0.00 0.10D. Miscellaneous 0.00 0.00 0.00d.1 Functioning of PCMU 975.11 271.97 1 247.09 0.33 0.09 0.42Basic costs 109 156 29 914.35 139 070.83 37.11 10.17 47.28Physical contingencies 10%) 10 915.65 2 653.70 13 569.35 3.71 0.90 4.61Financial contingencies 9 293.84 2 531.49 11 825.33 3.16 0.86 4.02Total NTCD and net of expropriations 129 365.97 34 099.54 164 465.51 43.98 11.93 55.91

Table 4.2 bis

Summary of Estimated Costs by Expenditure Category Financed by the ADF In GNF million In UA million Categories F.E. L.C. Total F.E. L.C. Total A. Goods Computer and office automation equipment – NRID 1 523.20 652.80 2176.00 0.52 0.22 0.74B Works b.1 Improvement of the Tombo-Moussodougou road 19 101.00 6 367.00 25 468.00 6.49 2.16 8.66b.2 Development of the Kénien – Bonfi feeder road 2 521.10 840.37 3 361.46 0.86 0.29 1.14b.3 Construction of the Yimbaya bus station 3 798.31 1 266.10 5 064.41 1.29 0.43 1.72C Consultancy services c.1 Control & monitoring of works on Tombo-Moussodougou 1 426.21 356.55 1 782.76 0.49 0.12 0.61c.2 Control & monitoring of works on Kénien-Bonfi feeder road 188.24 47.06 235.30 0.06 0.02 0.08c.3 Control & monitoring of works on Yimbaya bus station 283.61 70.90 354.51 0.10 0.02 0.12c.4 Training in project management (abroad) 102.14 0.00 102.14 0.03 0.00 0.03c.5 Technical training/retraining (in Guinea) 44.99 104.99 149.98 0.01 0.04 0.05c.6 Technical assistance to NRID 1 082.75 270.69 1 353.44 0.37 0.09 0.46 c.7 Sensitization seminars - 428.57 428.57 - 0.15 0.15c.8 Expert in project site organization 857.46 0.00 857.46 0.29 0.00 0.29c.9 Technical and financial audit of the project 302.63 - 302.63 0.10 - 0.10 A. Goods Computer and office automation equipment – NRID 1 523.20 652.80 2176.00 0.52 0.22 0.74D. Miscellaneous d.1 Functioning of PCMU 0.00 28.20 28.20 0.00 0.01 0.01Basic costs 31 231.63 10 443.10 41 664.86 10.61 3.55 14.16Physical contingencies 10%) 3 123.16 1 043.32 4 166.49 1.07 0.35 1.42Financial contingencies 2 885.80 964.03 3 790.65 0.98 0.33 1.31Total NTCD and net of expropriations 37 240.60 12 440.58 49 622.00 12.66 4.23 16.89

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4.9 Financing Sources and Expenditure Schedule 4.9.1 The project will be financed by the ADF, AFD, ABEDA, KDF, SDF, OPEC Fund and the Government. The loans from ABEDA, KDF, SDF and OPEC Fund as well as the ADF grant have already been approved. The works financed by the other donors and which concern Lots 2 to 5 (see details in Paragraph 4.5.3) have already started. Their implementation status is presented in Paragraph 5.3.1. The project shall be financed as follows: (a) Works on the Moussodougou-Madina-Kenien-T1-Gbessia segment: ABEDA, KDF, SDF, OPEC Fund and the Government; (b) works control on this road segment: ABEDA and KDF; c) Works and works control on the Tombo-Moussodougou segment: ADF and AFD; (d) Works and works control on the Kenien-Bonfi feeder road: ADF; (e) Construction of the Yimbaya bus station: ADF and the Government; (f) works control on the bus station: ADF and AFD; (g) Equipment of the Project Monitoring and Coordination Unit (PMCU): KDF; (h) Operating expenses of the PMCU: KDF and ADF; (i) Institutional support, technical and financial audit of the project: ADF; (j) Consultancy fees for organization of project sites: AFD. Moreover, the Government will finance compensations for expropriation evaluated at the equivalent of UA 1.87 million (including UA 0.60 million for components financed by the ADF and the AFD) and pay taxes estimated at the equivalent of UA 14.54 million (including UA 4.39 million for components financed by the ADF and the AFD). The financing plan by source is presented in Table 4.3 below.

Table 4.3

Project Financing Sources (in UA million) Financing source In UA million %

ADF 8.25 14.8% AFD 7.72 13.8%

ABEDA 7.89 14.1% KDF 13.15 23.5% SDF 9.87 17.7%

OPEC 3.29 5.9% Government 5.74 10.3%

Total NTCD and net of expropriations 55.91 100% 4.9.2 The ADF will finance: (a) works on the Tombo-Moussodougou road segment and the control of the road and Yimbaya bus station construction works, jointly with the AFD; (b) construction work on the Yimbaya bus station, jointly with the Government; (c) works and works control and supervision on the Kénien-Bonfi feeder road, institutional support to the NRID and NDDPI, the technical and financial audit of the project and operating expenses of the PMCU. Meanwhile, the AFD will pay the expert responsible for organizing the project sites. The Government’s financial contribution to components financed by the ADF and AFD represents 5.2% of the total cost and 10.03% of combined ADF-Government financing. The financing sources for components financed by the ADF are presented in Table 4.3.bis below.

Table 4.3 bis Financing Sources for Components Financed by the ADF and AFD

In UA million F.E. ML Total %

ADF 6.60 1.65 8.25 48.9% AFD 6.18 1.54 7.72 45.7% Government 0.92 0.92 5.4% Total 12.78 4.11 16.89 100.0%

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4.9.3 The expenditure schedule by component financed by the ADF and AFD is presented in Table 4.5 below.

Table 4.5

Expenditure Schedule by Component Financed by the ADF and AFD Components 2006 2007 2008 TOTAL A. Works 3.70 6.16 2.47 12.33 a.1 Improvement of the Tombo-Gbessia road 2.60 4.33 1.73 8.66 a.2 Development of the Kénien – Bonfi feeder road 0.34 0.57 0.23 1.14 a.3 Construction of the Yimbaya bus station 0.52 0.86 0.34 1.72 a.4 Control & monitoring of works on Tombo-Gbessia road 0.18 0.31 0.12 0.61 a.5 Control & monitoring of works on Kénien-Bonfi feeder road 0.02 0.04 0.02 0.08 a.6 Control & monitoring of works on Yimbaya bus station 0.04 0.06 0.02 0.12 B Institutional Support 0.43 0.724 0.29 1.43 b.1 Training in project management (abroad) 0.01 0.02 0.01 0.03 b.2 Technical training/Retraining (in Guinea) 0.02 0.03 0.01 0.05 b.3 Computer and office automation equipment - NRID 0.22 0.37 0.15 0.74 b.4 Technical assistance to NRID 0.14 0.23 0.09 0.46 b.5 Sensitization seminars 0.04 0.07 0.03 0.15 C Management 0.12 0.20 0.08 0.41 c.1.Project monitoring and coordination c.1.1 Functioning of the PMCU 0.003 0.005 0.002 0.01 c.1.2 Expert in project site organization 0.09 0.15 0.06 0.29 c.2 Technical and financial audit of project 0.03 0.05 0.02 0.10 Basic Costs 4.25 7.08 2.83 14.16 Physical contingencies (10%) 0.42 0.72 0.28 1.42 Financial contingencies (8.4 %) 0.4 0.65 0.26 1.31 Total Cost NTCD and Net of Expropriations 5.07 8.44 3.38 16.89

4.9.4 The schedule of expenditure financed by the ADF and AFD per financing source is presented in Table 4.6 below:

Table 4.6 Schedule of Expenditure Financed by the ADF and AFD per Financing Source (in UA million)

Financing source 2006 2007 2008 TOTAL ADF 2.48 4.13 1.65 8.25 AFD 2.31 3.86 1.54 7.72 Government 0.28 0.46 0.18 0.92

Total 5.07 8.44 3.38 16.89 5. PROJECT IMPLEMENTATION 5.1 Executing Agency

The project’s executing agency shall be the Ministry of Public Works acting through the NRID. This structure has solid experience in the monitoring of project implementation as well as competent technical staff. Monitoring of project components financed by ABEDA, KDF, SDF, the OPEC Fund and the Government, is currently ensured by a team composed of: (a) a civil engineer from the NRID (not yet formally appointed) and a technical assistant, financed by the KDF and whose mission will end in June 2006 (end of activities financed by the abovementioned donors) and support staff. Considering the longstanding experience of the abovementioned civil engineer, the technical assistant will not be needed during the execution of components financed by the ADF and AFD. Given the complexity of the project and the need to ensure regular monitoring of components financed by the ADF, as well as the need to assess the performance of the project monitoring team, the executing organ has to

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issue an order setting up a Project Monitoring and Management Unit and reinforce it with a works supervision engineer, an environmentalist and a project accountant. Furthermore, this Unit shall hire an individual consultant for organization of the project sites. Proof of creation of this Unit and of appointment of the civil engineer, accountant and environmentalist (from the ME), whose qualifications must have been approved beforehand by the ADF, is one of the grant conditions (Condition C v). The ADF shall ensure the improvement of this Unit’s performance. A performance contract shall be prepared by the Government and appended to the order setting up the Unit and appointing its members. The Unit team shall be appraised in accordance with the tasks and performance criteria defined in the contract. Proof of submission to the Fund of this performance contract shall be one of the grant conditions (Condition Dv). 5.2 Institutional Arrangements 5.2.1 The PMCU shall be responsible for daily monitoring of works and coordination of project activities in consultation with the other project donors. It shall ensure the technical, administrative and financial monitoring of the project. At the technical level, it shall essentially take part in: (i) preparing bidding documents for goods and services and shortlist files for consultancy services; (ii) analysing bids for works, goods and services; (iii) studying works status reports and making recommendations to the NRID; (iv) giving its opinion on all technical proposals of the project made by the control missions, in order to enlighten the Director in decision-taking; and (v) monitoring the execution of works and attending project site meetings. From the administrative and financial standpoint, the PMCU shall: (a) join in the negotiation of public and project contracts; (b) maintain contacts with all donors; (c) prepare payment orders for the project, in conformity with the provisions of the loan and grant agreements of each donor; and (d) help contractors solve their tax exemption problems. As mentioned above, an independent consultant specialized in work site management shall be recruited to work within the PMCU. Qualified and experienced consultancy firms shall also be recruited to engage in works control and supervision, technical and environmental quality control, certification and billing of completed works and preparation of project implementation reports. 5.2.2 Project implementation covers several sectors. Consequently, the Government has already set up an Inter-ministerial Steering Committee for Project Implementation. This Committee, chaired by the project executing agency (Ministry of Public Works), has advisory powers. It shall ensure the smooth running of the project, by helping to solve administrative problems and establishing relations with structures, other than the executing agency (facilitating procurement procedures for goods, works and services; customs procedures, local counterpart funds, etc…). It shall ensure compliance with national policy guidelines on urban transport. This Committee, which meets once every three months and when necessary, is composed of representatives of the National Department of Road Investments, the Ministries in charge of Town Planning and Housing, Transport (Department of Land Transport), Home Affairs and Decentralization, the Environment, the Economy and Finance (National Department of Debt and Public Investment), Security (Road safety), Information (Guinean radio and television), the Governorate of Conakry City, the urban districts along the project road (Kaloum, Matam, Dixim and Matoto) and the councils of neighborhoods affected by the project.

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5.2.3 Counterpart funds shall be deposited in a special account opened for the project in the Central Bank. Proof of the opening of this special account is one of the grant conditions (Condition Civ). Regular disbursements shall be made into this account, following the expenditure schedule, which could be revised in consultation with the Bank. Proof of regular disbursement into the account is one of the grant conditions (Condition Dii). To facilitate the execution of small contracts for small amounts, a second special account shall be opened for the project at the Central Bank to hold part of the grant resources to be used for paying the operating expenses of the PCMU and the organization of sensitization seminars. Proof of the opening of this second special account to hold part of the grant resources, is one of the grant conditions (Condition Civ). Disbursements into this second account shall be done in tranches, following a program of activity established by the NRID and on the basis of supporting documents. These two special accounts shall be managed by the service in charge of debt and public investment. Expenditure shall be authorized at the NRID and the PMCU and the relevant payments made by the service in charge of debts. The two accounts shall be audited in the same manner as the project. 5.3 Implementation and Supervision Schedule 5.3.1 It is noteworthy that all works and supervision contracts for Lots 2 to 5, mentioned in Paragraph 4.5.2 (a.1) and financed by ABEDA, KDF, SDF, the OPEC Fund and the Government, were signed in 2003. The progress status of each lot is presented as follows: (a) Lot 2 (Moussodougou-Madina road segment). It started in November 2004, for a duration of 14 months. The demolition of old gutters and construction of new gutters in the southern side is currently underway; (b) Lot 3 (Madina-Kénien road segment). It started in November 2003, for a duration of 26 months. The works here are in two tranches: Tranche A (current segment), 2,750 km, and Tranche B (displacement of 5 700 Km of railway). The railway displacement works have been completed and more than 50% of the projected interchanges in Madina and Kénien has been constructed. Network displacement has been realized by more than 80% for telephone, 60% for water and 20% for electricity. (c) Lot 4 (Keénien-T1 road segment). Works started in March 2005 for a duration of 14 months; and (d) Lot 5 (T1-Conakry Gbessia Airport road segment). Works started in November 2003 for a provisional duration of 30 months. Construction of the interchanges on the T1-Conakry-Gbessia Airport road segment are underway. Electricity and telephone network displacement has been executed 80%, while works on the water network have just started. 5.3.2 The abovementioned donors, who finance four of the five project lots, are well advanced in the execution of these lots, on which construction work will be completed by end-June 2006. Lot 1 (Tombo-Moussodougou) is the only lot remaining for the Tombo-Gbessia road to be complete. It is jointly financed by the ADF and AFD who already approved a grant of €9 million (equivalent to UA 7.72 million) for it in 2003. Financing for this lot will be concluded if the Board approves the grant. 5.3.3 Execution of the entire project will run from November 2003 to January 2009, or 62 months. However, activities under project components financed by the ADF and AFD will run from July 2006 to January 2009, or 42 months. The projected implementation schedule for components financed by the ADF and the AFD is summed up as follows:

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Table 5.1

Estimated Project Implementation Schedule for Components Financed by the ADF and AFD Activities Structure in charge Starting date Completion

date 1Approval and general procurement notice 1.1 Approval of grant ADF June 2005 June 2005 1.2 Publication general procurement notice GVT /ADF July 2005 July 2005 2.Project execution 2.1 Project coordination PCMU/NRID July 2005 Jan. 2009 2.2 works control and organization of project site July 2005 Jan. 2009 * Submission and approval; Consultants’ shortlist files (CSF) & shortlists (SL)

NRID / MPCA/ADF/AFD July 2005 Aug. 2005

* Launching of shortlist procedure & submission of bids NRID/MPCA/Consultants Sept. 2005 Oct. 2005 * Evaluation of bids & proposed contract award NRID/MPCA/PCMU Nov. 2005 Jan. 2006 * Approval of contract awards and draft contracts ADF / AFD Jan. 2006 Feb. 2006 * Negotiation, signature and notification of contract NRID/MPCA/PCMU/Consultants March 2006 March 2006 * Works control services Consultants April 2006 Jan. 2009 2.3 Works on the roads and bus station July 2005 Dec. 2008 * Submission and approval of bidding documents (BD) NRID/MPCA/ADF/AFD July 2005 Aug. 2005 * Launching of bidding process & submission of bids NRID/MPCA/Companies Sept. 2005 Oct. 2005 * Evaluation of bids & proposed contract award NRID/MPCA/PCMU Nov. 2005 Dec. 2005 * Approval of contract awards and draft contracts ADF/AFD Jan. 06 Feb. 2006 * Negotiation, signature and notification of contract NRID/MPCA/PCMU/Companies March 2006 April 2006 * Works Companies May 2006 Dec. 2008 2.4 Technical assistance (TA) to the NRID Jan. 07 Oct.2008 * Submission and approval of CSFs and SLs NRID/MPCA/ADF Jan. 07 Feb. 07 * Launching of shortlist procedure & submission of bids NRID/MPCA/Consultant March 07 May 07 * Evaluation of bids & proposed contract award NRID/MPCA/PCMU May 07 July 2007 * Approval of contract awards and draft contracts ADF Aug. 07 Aug. 07 * Negotiation, signature and notification of contract NRID/MPCA/PCMU/Consultant Sept. 2007 Sept. 2007 * TA services Consultant Oct. 07 Oct. 2008 2.5 Training/retraining of managerial staff Aug. 2006 May 2008 * Submission and approval of CSFs and SLs NRID/MPCA/ADF Aug. 2006 Aug. 2006 * Launching of shortlist procedure & submission of bids NRID/MPCA/Consultant Sept. 2006 Oct. 2006 * Evaluation of bids & proposed contract award NRID/MPCA/PCMU Nov. 2006 Dec. 2006 * Approval of contract awards and draft contracts ADF Jan. 2007 Jan. 2007 * Negotiation, signature and notification of contract NRID/MPCA/PCMU/Consultant Feb. 2007 March 2007 * Training/retraining services Consultant April 2007 May 2008 2.6 Sensitization seminars Nov. 05 Jan. 09 * Submission and approval of CSFs and SLs NRID/ADF Nov. 2005 Nov. 2005 * Launching of shortlist procedure & submission of bids NRID/MPCA/ONG Dec. 2005 Jan. 2006 * Evaluation of bids & proposed contract award NRID/MPCA/PCMU Feb. 2006 March 2006 * Approval of contract awards and draft contracts ADF April2006 April 2006 * Negotiation, signature and notification of contract NRID / PCMU / MPCA/ ONG May 2006 May 2006 * Sensitization services NGOs Aug. 2006 Jan. 2009 2.7 Financial and technical audit of project Sept. 2005 Jan. 2009 * Submission and approval of CSFs and SLs NRID / MPCA/ADF Sept. 2005 Oct. 05 * Launching of shortlist procedure & submission of bids NRID /MPCA Nov. 2005 Dec. 2005 * Evaluation of bids & proposed contract award NRID / MPCA/PCMU Jan.2006 Feb.2006 * Approval of contract awards and draft contracts ADF March 2006 April 2006 * Negotiation, signature and notification of contract NRID/PCMU/MPCA/Consultants April 2006 April 2006 * Financial and technical audit services Consultants May 2006 Jan. 2009

(*) Sensitization: August - October 2006; February - April 2007; August – October 2007, February-April 2008; August - October 2008 (**) Technical Audit: July and December 2006, July and December 2007, July and December 2008; and Auditing of project accounts: 2006 (2), 2007 and 2008

5.3.4 As soon as the ADF loan is approved, the project’s launching and supervision missions will be conducted following the projected schedule and composition given below.

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Table 5.2

Projected Supervision Schedule Projected date Activities Composition Duration (weeks) September 2005 Launching Project, disbursement and procurement officers 2 March 2006 Joint supervision by donors Project officers (Engineer and transport economist) 2 September 2006 Joint supervision by donors Project officers (Engineer and transport economist) 2 March 2007 Joint supervision by donors Project officers (Engineer and transport economist) 2 March 2008 Joint supervision by donors Project officers (Engineer and transport economist) 2 November 2008 Joint supervision by donors Project officers (Engineer and transport economist) 2 March 2009 Completion report Transport Engineer and transport economist 2

5.4 Procurement Arrangements

5.4.1 Procurement arrangements are summed up in the general procurements table below. All procurement of goods, works and services financed with ADF resources shall be made in accordance with the Bank’s rules of procedure on procurement or, as the case may be, the Bank’s rules of procedure for the recruitment of consultants, using the relevant Bank standard bidding documents. The AFD, which is in a joint financing arrangement with the ADF, has formally accepted the use of the Bank’s standard documents and rules of procedure for the procurement of goods and services that it cofinances with the ADF.

Table 5.3 Procurement Arrangements (in UA million)

Expenditure Category ICB NCB Shortlist * Others Total A. Goods a.1 Computer and office automation equipment to NRID [0.74] 0.74 [0.74] 0.74 B. Works b.1 Improvement of the Tombo-Moussodougou road [2.84] 8.66 [2.84] 8.66 b.2 Development of the Kénien – Bonfi feeder road [1.14] 1.14 [1.14] 1.14 b.3 Construction of the Yimbaya bus station [0.95]1.72 [0.95] 1.72 C Consultancy services c.1 Control and supervision of works on Tombo-Moussodougou

[ 0.3] 0.61 [0 .3] 0.61

c.2 Control & monitoring of works on the Kénien-Bonfi road

[0.08] 0.08 [0.08] 0.08

c.3 Control & monitoring of works on Yimbaya bus station [0.06] 0.12 [0.06] 0.12 c.4 Training in project management (abroad) [0.03] 0.03 [0.03] 0.03 c.5 /Technical retraining (in Guinea) and technical assistance to NRID

[0.51] 0.51 [0.51] 0.51

c.6 Sensitization seminars [0.15] 0.15 [0.15] 0.15 c.7 Expert in project site organization [0.00] 0.29 [0.00] 0.29 c.8 Technical and financial audit of project [0.10] 0.10 [0.10] 0.10 D. Miscellaneous d.1 Functioning of the PMCU [0.01] 0.01 [0.01] 0.01 Physical contingencies 10%) [0.68] 1.42 Financial contingencies (8.4%) [0.66] 1.31 Total NTCD and Net of Expropriations [3.98] 9.80 [1.69] 1.72 [1.23] 1.82 [0.01] 0.01 [8.25] 16.89

[ ] Amount representing the share of the ADF: * Shortlisting will be used for the recruitment of consultants only

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Works and Goods 5.4.2 The procurement of works for the Tombo-Moussodougou road and the installation of eight street fountains (UA 8.66 million) and construction of the Kenien-Bonfi feeder road (UA 1.14 million), for the total sum of UA 9.8 million will be done through a single international bidding process. However, for managerial reasons, the amounts for the feeder and main roads will be presented separately. The procurement of construction works for the Yimbaya bus station, for the sum of UA 1.72 million, will also be done through international competitive bidding. The procurement and network connection of computer and office automation equipment will be done through national competitive bidding. Consultancy Services 5.4.3 The procurement of control and surveillance services for the construction of the Tombo-Moussodougou road (UA 0.61 million) and the Kenien-Bonfi feeder road (UA 0.08 million), for the total sum of UA 0.69 million, will be conducted through shopping on the basis of a shortlist of consultancy firms. The procurement of control and surveillance services for the construction of the bus station, for a total sum of UA 0.12 million, will be conducted through shopping on the basis of a shortlist of consultancy firms. The procurement of consultancy services for technical assistance in the setting up of computer applications for technical calculations, training in the use of such applications as well as retraining in Guinea of NRID and NDDPI staff in engineering techniques, construction of permanent structures, and environmental protection and management for the sum of UA 0.51 million (UA 0.46 million for technical assistance and UA 0.05 million for retraining of NRID technical staff) will be conducted through shopping on the basis of a shortlist of consultancy firms. The procurement of consultancy services for publicized sensitization seminars and the distribution of treated mosquito nets for the sum of UA 0.15 million will be conducted through shopping on the basis of a shortlist of national NGOs. There are national NGOs that carry out this type of activities. The procurement of consultancy services for the training of NRID civil engineers in road project management abroad, for the sum of UA 0.04 million will be conducted through shopping on the basis of a shortlist of training institutions. The procurement of consultancy services for the financial and technical audit of the project for a total amount of UA 0.1 million (comprising UA 0.04 million for the financial audit and UA 0.06 million for the technical audit) will be conducted through shopping on the basis of a shortlist of audit firms for the financial audit and consultancy firms for the technical audit. 5.4.4 The procedure for selection of works control and supervision firms, the technical assistance firm, the training/retraining consultancy firm and the management training institution shall be based on the combined evaluation of technical proposals and bid amounts (price is a factor in the selection process). For the sensitization seminars and the financial audit, the selection procedure shall be based on the lowest bid for comparable services. A no-objection certificate shall be obtained from the Bank after the combined technical and financial evaluation of bids for control, training, technical assistance, financial audit and sensitization seminars. The selection procedure for technical audit firms shall be based on technical quality (price is not a factor in the selection process). After the technical evaluation of bids, a no-objection certificate shall be obtained from the Bank for the results of technical bids before the opening of financial bids.

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Miscellaneous. 5.4.5 This component covers project monitoring and coordination. The expenses related thereto cover field allowances for technical staff and operating expenses for the PMCU. General Procurement Notice 5.4.6 The text of a general procurement notice shall be discussed with the various parties during the negotiations. It shall be published in Development Business as soon as the ADF Board of Directors approves the grant. Document Examination Procedures 5.4.7 The following documents shall be submitted to the Bank for study and approval: (i) specific procurement notice; (ii) bidding documents or consultants’ shortlist files; (iii) bid evaluation reports for works and consultancy services containing recommendations on contract award; (iv) draft contracts if those included in the bidding documents have been modified. 5.5 Disbursement Arrangements

Disbursements for works, works control and supervision consultancy services, financial and technical audit, technical assistance and staff training shall be paid directly to the various contractors. Expenses for sensitization seminars and travel allowances for technical staff on the field shall be paid directly from the special account holding part of the grant resources. State contribution to the financing of components financed by the ADF shall be paid directly from the special account opened to that end. 5.6 Monitoring and Evaluation 5.6.1 The consultant in charge of works control and surveillance shall prepare monthly and quarterly reports on the works financed by the ADF. The same consultant shall assist the executing agency during the final acceptance of works. On a quarterly basis, the executing agency shall provide the Bank with: (i) a quarterly works status report; and (ii) a status report of the entire project in accordance with the format in force. Moreover, launching missions and joint supervision missions of the Bank and other donors shall be sent to the project. The Bank’s supervision missions shall in particular prevent possible project execution problems and coordinate the actions of the various donors of the project. 5.6.2 The PMCU, which shall be responsible for project monitoring and coordination, shall lend assistance to all project contractors in their relations with administrative services and in the coordination and harmonization of their activities to curb any inconveniences caused to the inhabitants of Conakry. The consultant for project site organization shall submit a quarterly report to the executing agency and donors. The PMCU shall prepare a quarterly report on the general evolution of project activities, including environmental and social aspects. The Inter-ministerial Follow-up Committee shall work in close collaboration with the PMCU.

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5.6.3 At the end of project execution, a works completion report shall be prepared by the consultant in charge of works control. Drawing on the various project status reports, the works completion report approved by the executing agency, and the contribution of all monitoring structures, the Project Monitoring and Coordination Unit shall also prepare the Borrower’s project completion report and forward it to the ADF. 5.6.4 An annual financial audit and a biannual technical audit shall be conducted. The corresponding reports shall be submitted to the Bank. 5.7 Financial and Audit Reports

Accounting for the entire project shall be done by the PCMU accountant, according to a private accounting plan. Accounts shall be kept for each road segment. This system should make it possible to monitor project expenditure against projections by financing source, by expenditure category and by component. All project accounts (including those opened in banks for local counterpart funds and the Project’s Working Capital Fund) shall be audited annually by an external audit firm during the execution period and the Government shall forward the corresponding reports to the Bank on a regular basis. Given that financing of the audit is covered by the ADF grant, four financial audits of the project have been planned after approval of this grant. The technical audit of works shall be done every six months and at the end of the project. The consultant shall conduct three technical audits after approval of the ADF grant and prepare the 3 corresponding reports. 5.8 Coordination of Assistance 5.8.1 The coordination of assistance in the transport sector shall be done under monitoring of NTP activities and through consultation frameworks defined by adopted policy and strategy documents, following broadbased internal and external consultations organized by the Government of Guinea. With regard to Conakry’s urban road network which is part of the transport sector and especially of the road sub-sector, coordination is done annually under implementation of the NTP which covers national and primary urban roads. 5.8.2 Moreover, within the specific context of the project, the various Bank missions sent for project preparation in April 2003, appraisal in June 2003, and re-appraisal in February 2005, held working and consultation sessions with donors represented in Guinea. Besides, regular contacts have been maintained with the AFD, co-financer of the project. Joint ADB/AFD supervision missions have been planned during the project execution phase just like the joint preparation missions organized by these same institutions in April 2003. These sessions shall be coordinated by the PMCU.

6. SUSTAINABILITY AND RISKS OF THE PROJECT

6.1 Recurrent Expenditure The project’s recurrent expenditure essentially covers routine maintenance costs and to a lesser extent, periodic maintenance costs because of the hot-mixed asphaltic concrete used, which has a long operational life (20 years). In the non-project situation, the annual cost of routine maintenance was GNF 906.43 million every five years. In the project situation, these routine annual and periodic (every 10 years) maintenance costs will amount to GNF 561.8 million and GNF 8,164.13 million, respectively. For the Kenien-Bonfi feeder

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road, the routine annual and periodic (every 10 years) maintenance costs stood at GNF 124.41 million and GNF 919.89 million, respectively, for the main and feeder and roads. In a bid to ensure better maintenance of the Kenien-Bonfi feeder road, the Government intends to upgrade it from the secondary network to the primary network which is maintained by the RMF. Proof of reclassification of this feeder road, in accordance with the provisions of the RMF operating guidelines, is one of the grant conditions (Condition Bv et Dviii). The level of resources that can be mobilized by the RMF, which stands at GNF 20 billion, will make it possible to cover these recurrent costs. The routine maintenance costs of the Yimbaya bus station represent 1% of the basic cost of investment, or GNF 50.64 million. This cost shall be covered by the private operator responsible for management of the bus station. Proof of submission of the maintenance program for the Tombo-Gbessia highway and its feeder road is one of the grant conditions (Condition Diii). 6.2 Sustainability of Project Project sustainability will depend on the quality of works, the operating conditions and adequate maintenance of the main road, feeder road and bus station. Technical studies in the PA identified quality materials to be used. The structure of the infrastructure complies with technical standards. Road construction works shall be controlled by a qualified consultant who shall ensure the quality of the structures put in place. Besides, a system of weight-toll stations to be set up on national highways including NH1 should contribute to road preservation. As soon as the project is completed, the NDRM shall take over and ensure its maintenance through the RMF. To ensure timely availability of financial resources for road maintenance (roads and road networks), the RMF needs to be absolutely autonomous in its resources. Financing for the maintenance of the bus station shall be ensured by the private operator in his annual budget. 6.3 Main Risks and Mitigative Measures 6.3.1 Project risks relate to: (1) the bureaucracy within the public contracts management authority; (2) insufficient harmonization in the coordination of project activities between the other donors and the Bank, that could lead to a time overrun in project execution; (3) inadequate RMF resources to ensure the durability of the road network; and (4) slow adoption and implementation of the recommendations of the «Study on traffic improvement in the city of Conakry» conducted in 2002 with AFD financing. These recommendations, endorsed by civil society as well as central and local structures during validation seminars, resulted in the definition of an urban traffic plan for Conakry (UTPC) whose implementation should enhance traffic fluidity; and (5) the non-payment of compensation for expropriations.

6.3.2 The first risk will be mitigated through the setting up of an Inter-ministerial Project Monitoring Committee which shall ensure the smooth implementation of project activities, within the framework of its duties as summed up in Paragraph 5.2.2. The second risk will be mitigated through: (i) the presence of a technical assistant in the PMCU whose main duties includes ensuring coordination; and (ii) periodic meetings between donors during project execution and joint project supervision missions. As concerns works on the Tombo-Moussodougou road segment and works control on the project road and the bus station, financed by the ADF and AFD, harmonized coordination already exists since the AFD accepted that Bank procurement procedures should be used. The third risk is mitigated by the loan conditions. The fourth risk is mitigated by the readiness of the AFD to finance the completion of the study and implementation of the UTPC. The fifth risk is mitigated by the fact that the full payment of all compensation is a condition precedent to disbursement.

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7. PROJECT BENEFITS 7.1 Economic Analysis 7.1.1 The expected project benefits are decongestion of traffic in Conakry, improvement of access to Conakry Port (the only commercial port in Guinea) and the Conakry-Gbessia international airport and increased mobility of persons and goods. The quantifiable economic benefits expected from the use of the project road are: (i) a 30-40% average reduction in vehicle operation costs (VOC); (ii) an average reduction of 40% in road maintenance costs; (iii) an 80% gain in travel time; and (iv) exogenous benefits such as the availability of commercial infrastructure (bus station) in good operational condition with toilet facilities, which enhances operating conditions for urban and inter-urban transport in Guinea. 7.1.2 The economic viability of the project was evaluated through a comparative cost-benefit analysis of the non-project situation (highway and feeder road in very bad state and poorly drained, bus station in very poor state, congested and untidy) and the project situation (paved highway and roads in excellent condition, permanent structures and bus station in good condition with an operational life of 20 years and a discount rate of 12%. The determined economic cost of investment covers expenditure for construction work on roads, permanent structures (interchanges, roundabouts, bridges and overpasses) and the bus station; works control; project monitoring and coordination; environmental protection measures; expropriations; and physical contingencies. 7.1.3 The Government of Guinea does not keep a systematic record of traffic on the urban network. The traffic audit conducted in 2003 (last count) on the project road gives the following figures for daily average traffic per year (DATY): (a) the Tombo-Moussodougou road segment: 41 086 vehicles/day; b) Moussodougou-Madina road segment: 28 998 vehicles/day ; c) Madina-Kénien road segment: 34 385 vehicles/day; d) Kenien-T1 road segment: 41 830 vehicles/day; and (v) T1- Gbessia: 44 876 vehicles/day. The weighted DATY for the Tombo-Gbessia highway (all segments considered) amounts to 37 955 vehicles/day. The base traffic for 2003 will be maintained right up to full project completion (2003-2008). The modest projections retained for traffic are: (i) 4% after commissioning of the infrastructure and during the first five years of operation; and (ii) 3% beyond that period. In a bid to confirm these projections, the Government shall do a traffic count three months after the commissioning of the road, and forward the results to the Bank. This is one of the grant conditions (Condition Biv and Dvi). 7.1.4 Economic analysis was conducted using the HDM-4 model. It is based on a cost-benefit analysis of the project that is updated and expressed in money terms. The HDM-4 model served as a methodological framework for calculating the project’s economic rate of return. This model is based on: - degradation of the permanent structure; its effects on the infrastructure (maintenance and improvement works) and on the state of the pavement and structure of the main road and feeder road; its effect on road users (depreciation of vehicles, vehicle speed, etc..); -current traffic trends; -maintenance policy and strategy and the various unit costs collected during the mission and relating to road development, road maintenance and vehicle use. The investment, maintenance and operating costs of the Yimbaya bus station and its economic benefits were factored into the analysis as exogenous costs and benefits.

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7.2 Economic Rate of Return and Sensitivity Test 7.2.1 Economic Rate of Return (ERR). Going by the traffic data, the estimated cost of works and works supervision, excluding price increases, annual routine maintenance and periodic maintenance costs, the project’s ERR stands at 37.2%. This high ERR stems from the high volume of traffic registered on the road, the substantial reduction in VOCs due to the improvement of service levels and a substantial reduction in travel time. This ERR justifies the investment. 7.2.2 Sensitivity Test. Sensitivity tests, which make it possible to measure the impact of the various parameters concerned, show that the EIRRs are relatively stable, not sensitive to variations in cost (+10%), in benefits (-10 %) or a combination of both assumptions. In fact, in the worst case scenario (increase in costs and a reduction in benefits), the project’s ERR stands at 33.7%. The project is therefore economically justified. 8. CONCLUSIONS AND RECOMMENDATIONS 8.1 Conclusions 8.1.1 Complete studies were conducted for the project that took into account the specificities of the terrain and the concerns of the people. The technical solution retained took into account the lessons learnt from previous projects in the transport sector. Execution of the Tombo-Gbessia road project will improve the transportation of persons and goods, and promote poverty reduction through the wages that will be paid to the workers in the project area. From the institutional standpoint, execution of the project will build the capacity of the NRID and the NDDPI in works supervision, project monitoring and coordination, new road and permanent structure techniques and environmental management. 8.1.2 The project is well designed technically and is in conformity with Guinea’s Interim-RBCSP and PRSP. Its negative effects on the environment are controllable. The project is economically viable and generates a global ERR of 37.2%. 8.2 Recommendations 8.2.1 In the light of the foregoing, it is recommended that an ADF grant, not exceeding UA 8.25 million be awarded to the Republic of Guinea for implementation of the project, subject to the following conditions: A Conditions Precedent to Grant Effectiveness 8.2.2 The grant shall become effective subject to the signature of a Memorandum of Understanding by the Recipient and the ADF. B Commitments 8.2.3 In addition to the entry into force of the Memorandum of Understanding, the Recipient shall undertake to:

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(i) include the environmental and social protection measures, contained in the Environmental and Social Management Plan (ESMP) already approved by the Fund, into the project terms of reference (Para 4.6.8);

(ii) provide national counterpart financing for the project, in accordance with

the expenditure schedule (Para 5.2.3); (iii) get the private operator to ensure efficient management of the new

Yimbaya bus station, in terms of operation and maintenance of infrastructure constructed under the project (Para 4.5.7);

(iv) provide the Fund with the results of the traffic audit on the Tombo-

Gbessia highway (Para 7.1.3); and (v) reclassify the Kénien-Bonfi feeder road from the secondary to the

primary network of Conakry which is eligible to the Road Maintenance Fund (RMF), and do so in conformity with the provisions of the instruments governing the functioning of the RMF (Para 6.1).

C) Conditions Precedent to the First Disbursement 8.2.4 The Recipient shall provide, to the satisfaction of the Fund:

(i) the text defining the mode of management for the new Yimbaya bus station (Para 4.5.7);

(ii) evidence of effective payment of compensations for expropriations (Para

4.6.10); (iii) evidence of availability of a resettlement site for displaced persons (Para

4.6.10); (iv) evidence of having opened at the Central Bank: (i) a special account to

hold counterpart funds; and (ii) a special account to hold part of the grant resources for payment of the operating expenses of the Project Monitoring and Coordination Unit (PMCU) and finance awareness-raising seminars (Para 5.2.3); and

(v) an order: (a) setting up the Project Management and Coordination Unit

(PMCU); (b) appointing the head of the PMCU, the works control engineer, the accountant and the environmentalist of the project whose qualifications and CVs would have been submitted to the Fund beforehand for approval (Para. 5.1).

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D) Other Conditions 8.2.5 The Recipient shall:

(i) provide the Fund, before 31 July 2007, with proof of the contract signed with the private operator responsible for managing the new Yimbaya bus station (Para 4.5.6);

(ii) provide the Fund each year with evidence of regular payments into the

special account for counterpart project funds (Para 5.2.3); (iii) provide the Fund each year, from 2008, with the road network

maintenance program, that includes the Tombo-Gbessia main road and the Kénien-Bonfi feeder road (Para 6.1);

(iv) provide the Fund each year, from 2007, with the Yimbaya bus station

maintenance program (Para 4.5.6); (v) provide the Fund, before 31 December 2006, with the performance

contract of the Project Monitoring and Coordination Unit (Para 5.1); (vi) provide the Fund, within a maximum period of six months after

commissioning of the Tombo-Gbessia highway, with the results of the traffic audit conducted on this road (Para 7.1.3);

(vii) provide the Fund, by 30 June 2007 latest, with proof of and increase in

RMF resources (Para 3.7.4); (viii) provide the Fund, by 30 December 2006 latest, with proof of

reclassification of Kénien-Bonfi feeder road from the secondary to the primary road network of Conakry (Para 6.1);

(ix) provide the Fund with proof of adoption of the recommendations of the

study on improvement of traffic in Conakry city (Para 3.3.2).

ANNEX 1 - Page 1 of 2

REPUBLIC OF GUINEA TOMBO-GBESSIA HIGHWAY IMPROVEMENT PROJECT

MAP OF GUINEA AND PROJECT AREA

ANNEX 2

REPUBLIC OF GUINEA TOMBO-GBESSIA HIGHWAY IMPROVEMENT PROJECT (MPW)

ORGANIZATION STRUCTURE OF THE EXECUTING AGENCY

MINISTRY

CABINET

NDRM NRID PIU PCWL

Technical Control & Road Projects

Division

Technical Control & Inter-urban Road Projects Division

Project Studies and Programs Division

PMCU

ANNEX 3 REPUBLIC OF GUINEA

TOMBO-GBESSIA HIGHWAY IMPROVEMENT PROJECT Financing Sources by Category of Expenditure Financed by the ADF (in UA million)

ADF AFD Government

Components F.E. L.C. Total F.E. L.C. Total F.E. L.C. Total A. Works a.1 Improvement of Tombo-Moussodougou highway 2.131 0.71 2.84 4.362 1.45 5.82 a.2 Construction of Kénien – Bonfi feeder road 0.857 0.29 1.14 - -a.3 Construction of Yimbaya bus station 0.714 0.24 0.95 - 0.58 0.19 0.77 B Consultancy services b.1 Works control and supervision on Tombo-Moussodougou 0.24 0.06 0.30 0.01 0.06 0.30 -b.2 Control & monitoring of works on Kénien-Bonfi road 0.06 0.02 0.08 -b.3 Control & monitoring of works on Yimbaya bus station 0.05 0.01 0.06 0.00 0.01 0.06 -b.4 Training in project management (abroad) 0.03 0.00 0.03 -b.5 Technical training/retraining (in Guinea) 0.01 0.04 0.05 -b.6 Technical assistance to the NRID 0.46 0.46 -b.7 Sensitization seminars 0.15 0.15 - -b.8 Project site organization expert 0.29 0.29 b.9 Technical and financial report of project 0.10 0.10 - -C. Goods Computer and office automation equipment to NRID 0.52 0.22 0.74 - -D. Miscellaneous d.1 Functioning of PCMU 0.01 0.01 Basic cost 5.18 1.74 6.92 4.67 1.53 6.47 0.58 0.19 0.77Physical contingencies 10%) 0.52 0.17 0.69 0.47 0.15 0.65 0.06 0.02 0.08Financial contingencies (8.4%) 0.48 0.16 0.64 0.43 0.14 0.60 0.05 0.02 0.07Total NTCD and net of expropriations 6.17 2.07 8.25 5.57 1.82 7.72 0.69 0.23 0.92

ANNEXE 4 REPUBLIC OF GUINEA

TOMBO-GBESSIA HIGHWAY IMPROVEMENT PROJECT DETEAILED IMPLEMENTATION SCHEDULE

ANNEX 5 Page 1/2

REPUBLIC OF GUINEA

TOMBO-GBESSIA HIGHWAY IMPROVEMENT PROJECT LIST OF EQUIPMENT AND TECHNICAL ASSISTANCE FOR THE PROJECT

A. Equipment

Computer Equipment Quantity UP (euros)

Total (euros)

* computers Unit 14 2,500 35000 * printers Unit 5 1,200 6000 * printers -photocopiers Unit 2 1,300 2600 * photocopier Unit 2 1,100 2200 * scanner Unit 2 500 1000 * UPS Unit 14 1,100 15400 * audio-visual system and digital camera Unit 1 3,500 3500 * flatbed plotter Unit 1 3.000 3000 * digitizing table Unit 1 25.000 25000 * fax machine Unit 1 50.000 50000 * Documentation & archiving system Unit 1 90.000 90000 Network connection Unit 1 500.000 500.000.0

0 Base cost 733700 Physical contingencies 36685 Financial contingencies 92446.2 Total cost 862,831.2

0

ANNEXE 5 Page 2/2 B. Details and Estimated Cost of Technical Assistance

Heading Unit Qty Field Qty HQ Total Qty

UP (euros)

FEES 1.1 Key staff * Director of study MH 0 1.5 1.5 17,500.00 26,250.00

* Mission Head (Specialist in technical calculation software) MH 6 1 7 14.000.00 98.000.00

* Computer applications expert MH 6 6 12.000.00 72.000.00

S/T 43,500.00 196,250.00 LOGISTICS (VEHICLE RENTAL) * Mission Head (Specialist in technical calculation software days 180 180 350.00 63.000.00

* Computer applications expert days 180 180 350.00 63.000.00

S/T 126.000.00 OFFICE AND COMPUTER EQUIPMENT

Renting of offices Unit 6 6 600.00 3,600.00 Renting of computer equipment Unit 6 6 1,500.00 9.000.00 Purchase of software for technical calculations Unit 4 4 3.000.00 12.000.00

S/T 24,600.00 REPORTS Provisional report FF 10.000.00 10.000.00

Final report FF 10.000.00 10.000.00

S/T 20.000.00 20.000.00 TRIPS AND PERDIEM

Perdiem (2 persons) days 360 360 200.00 72.000.00 Air transport Unit 7 7 2,500.00 17,500.00

S/T 89,500.00

BASE COST 456,350.00

Physical contingencies 22,817.50 Financial contingencies 57,500.10

Total cost 536,667.60

ANNEX 6 Page 1/2 REPUBLIC OF GUINEA PROJET DE REAMENAGEMENT DE LA ROUTE TOMBO-GBESSIA ECONOMIC ANALYSIS SUMMARY 1. Traffic

1.1 - previous DATY (all types of vehicles) and by road segment Year / Segments Segment 1 Segment 2 Segment 3 Segment 4 Segment 5 1999 (TMJA) 52 000 25 000 32 000 50 000 44 000 2002 (TMJA) 36 271

Segment 1 = Tombo-Moussodougou; Segment 2 = Moussodougou-Madina; Segment 3 = Madina-Kenien; Segment 4 = Kenien-T1; Segment 5 = T1-Gbessia. The decline in the vehicle population from 1999 to 2002 is due to the withdrawal of a substantial proportion of Sierra Leonian and Liberian traffic from Guinea (return of emigrants to their countries). 1.2 - base DATY (2003) Segments Segment 1 Segment 2 Segment 3 Segment t 4 Segment 5 DATY 41 086 28 998 34 385 41 830 44 876 Private cars = 68% ; Light-duty trucks = 27% ; Buses = 3% ; Average trucks = 1% All trailers = 1% ; Aggregate weighted DATY (all segments) = 37 955 veh/day 1.3 Projected vehicle traffic (normal): Assumptions: (i) DATY of 2003 maintained right up to the end of the project; ii) The modest annual growth rates retained are: 4% from the commissioning of the infrastructure and during the first five years of their operation, and 3% after that. These rates were obtained from an analysis of indicators such as the annual growth rate of the vehicle population (5% on average), the annual population growth rate in the country (3%) and in Conakry (4.1%), the evolution of the previous average economic growth rate (about 4.5%), and Guinea’s medium-term economic growth prospects (5%). 2. Economic cost of investment (ECI). The ECI for the road is GNF 142 050 million, spread over the project execution period (2003-2008), and covering (A) expenditure relating to: (i) improvement works on the Tombo-Gbessia highway and the connecting feeder road, and environmental protection measures; (ii) works control and supervision; iii) project monitoring and coordination; (B) physical contingencies; and (C) expropriations. The economic cost of the Yimbaya bus station (considered as exogenous costs in the model), amounting to GNF 6 092.54 million covers expenditure relating to works, works control, physical contingencies as well as operation and maintenance of the bus station. 3. Road maintenance costs. 3.1 Routine maintenance covers: (i) cleaning of gutters and drainage ditches (GNF 258 /ml), 2 interventions per year; and (ii) road patching (GNF 30 000 / m2); Intervention on 20% of the pavement in the non-project situation and 10% in the project situation. The maintenance costs of the bus station, considered as representing 1% of the basic cost of developing this station (or GNF 50.64 million). 3.2 Periodic maintenance (sheet-asphalt course): GNF 45 000 /m2: Intervention every 5 years in the non-project situation and every 10 years in the project situation.

ANNEX 6 Page 2/2 REPUBLIC OF GUINEA TOMBO-GBESSIA HIGHWAY IMPROVEMENT PROJECT SUMMARY OF ECONOMIC ANALYSIS 4 Quantifiable economic benefits.

Such benefits concern gains in VOCs, road maintenance costs and travel time. They are calculated

using the HDM-4 model. The residual values of all the constructed infrastructure constitute an economic gain and, on average, represent 40% of the basic cost of investment. The benefits to be derived from the construction of the bus station, which enhances urban transport management in Conakry, are exogenous benefits taken into account in the model. 5 Economic rate of return (ERR) for the project: 37.2%

5.1 Economic comparison Date of visit: 9/4/05

Project title: Tombo-Gbessia Discount rate: 12.0%

Mode of analysis: by the project

Reconstruction option compared to the basic option Supplementary administration

costs VOC gains (automobile traffic)

Cost of time gains (automobile traffic)

Net exogenous benefits

Discounted income (NPV)

Investments Functioning Undiscounted 45 057.30 - 534.64 234 561.59 2 372 398.22 5.81 2 562 442.92 Discounted 6567.54 - 74.51 29 289.81 403 688.29 O.98 367 380.76

Economic rate of return (ERR) = 37.2% 5.2 –SENSITIVITY ANALYSIS

Case 1 (base)

Case 2 (increase in costs)

Case 3 (reduction in benefits)

Case 4 (Combination of a rise in costs and a fall in benefits)

Discount rate (%) 12.0 12.0 12.0 12.0 Multiplier factor for net benefits *Agency Capital and recurrent 1.00 1.10 1.00 1.10 *Vehicle operation 1.00 1.00 0.90 0.90 ------- ------- ------- ------- ERR (%) 37.2% 35.1% 35.4% 33.7%

ANNEX 7 – Page 1/3 GUINEA: BANK GROUP OPERATIONS IN GUINEAAS OF 07 APRIL 2005 (UA)

Project Status Financing Approv. Signat. Closing Implemen Last Amount Amount Balance to be Total Net amount

source Date Date Date -tation Disb. cancelled Disbursed disbursements of loan/grant Sector : Agriculture PPF Fouta-Djallon Rural Development Project APVD ADF 07.02.05 0 0 0 0 0

STUDY ON PALM AND RUBBER TREES DEV. PLAN OnGo ADF 29.03.01 31.12.08 0 0 0 0 0 KENAF CULTIVATION – PRODUCTION OF SACKS OnGo ADB 24.11.77 11.08.78 31.12.95 12.11.84 12.11.84 700,000 119.260.38 0 580,739.62 580,739.62

PRODUCTION OF KENAF FIBER OnGo ADF 23.11.77 11.08.78 31.12.97 20.08.80 11.02.97 4,605,260 0.01 0 4,605,259.99 4,605,259.99

RICE FARMING (ONADER) OnGo ADF 25.10.79 28.11.79 30.09.86 25.09.80 11.12.86 3,868,418 0.42 0 3,868,418.42 3,868,418.42

KOBA SUGAR PROJECT STUDY OnGo ADB 29.12.81 21.01.82 31.12.87 27.01.83 09.10.87 780000 299,633.89 0 480,366.11 480,366.11 CONSTRUCTION OF A BAG MANUFACTURING PLANT

OnGo ADB 18.10.83 27.01.84 09.08.94 15,030,000.00

15,030,000.00 0 0 0

RURAL & INDUSTRIAL DEV’T OF KOUROUSSA OnGo ADF 20.10.83 27.01.84 31.12.98 05.11.85 18.09.99 14,663,148.00

1,040,170.13 0 13,622,977.87 13,622,977.87

DEVELOPMENT OF SMALL-SCALE FISHING OnGo ADF 12.12.84 12.03.85 31.12.91 10,200,000.00

10,200,000.00 0 0.00 0

AGRICULTURAL DEV’T OF QUECKDOU OnGo ADF 18.06.86 23.09.86 31.12.98 12.01.88 28.04.99 6,124,996.00 510.91 0 6,124,485.09 6,124,485.09 AGRO-PASTORAL DEV’T OF BEYLA-KEROUANE OnGo ADF 02.09.93 10.12.93 30.06.04 08.12.94 21.12.04 9,210,520.00 0.00 842,181.83 8,368,338.17 9,210,520.00 HAUTE GUINEE DEVELOPMENT PROJECT OnGo ADF 15.06.00 18.08.00 31.12.07 30.06.01 03.03.05

10,000,000.00 0.00 7,260,971.44 2,739,028.56 10,000,000.00

SUPPORT TO THE SPECIAL FOOD SECURITY PROGRAM OnGo ADF 23.06.00 18.08.00 31.12.04 01.08.01 29.10.01 760,000.00 0.00 0.00 760.000.00 760,000.00 SMALL-SCALE FISHING & FISH FARMING PROJECT OnGo NTF 07.06.00 18.08.00 31.12.05 27.11.00 16.03.05 5,000,000.00 0.00 2,659,020.24 2,340,979.76 5,000,000.00

STUDY ON PALM AND RUBBER TREES DEV. PLAN OnGo ADF 29.03.01 05.12.01 31.12.04 05.12.01 15.09.04 1,984,000.00 0.00 600,130.29 1,383,869.71 1,984,000.00 VILLAGE WATER SUPPLY PROJECT IN HAUTE GUIN. OnGo ADF 04.09.02 09.12.02 31.12.08 04.02.05

15,000,000.00 0.00 14,758,632.45 241,367.55 15,000,000.00

RURAL ROADS PROJECT /PNIR OnGo ADF 02.10.02 16.01.03 31.12.08 10.02.05 8,100,000.00 0.00 7,977,267.30 122,732.70 8,100,000.00 NERICA DISSEMINATION PROJECT - GUINEA APVD ADF 26.09.03 13.02.04 31.12.10 3,000,000.00 0.00 3,000,000.00 0.00 3,000,000.00 PINAPPLE PLANT REHABILITATION (DABOYA) COMP ADB 01.03.93 0.00 0.00 0.00 0.00 0.00 OPERATION RIZ A SIGUIRI COMP ADF 18.12.80 03.02.81 31.12.96 22.02.82 30.12.95 7,368,416.00 0.00 0.00 7,368,416.00 7,368,416.00 KOLENTE AGRO-INDUSTRIAL PROJECT COMP ADF 17.06.85 20.05.86 30.06.94 05.11.87 09.08.91 571,052.00 0.23 0.00 571,052.23 571,052.23

KOLENTE AGRICULTURAL PROJECT COMP ADF 17.09.90 28.12.90 15.12.01 30.09.92 15.05.02 6,990,785.00 3,785,181.44 0.00 3,205,603.56 3,205,603.56 SHRIMP FARMING IN KOBA COMP ADB 24.09.91 24.03.92 31.12.98 08.07.92 15.01.99

30,000,000.00 0.00 21,373.22 29,978,626.78 30,000,000.00

RURAL DEV. IN SIGUIRI II COMP ADF 24.09.91 12.05.92 30.06.99 22.11.94 01.12.97 9,090,783.00 8,547,500.28 0.00 543,282.72 543,282.72 SHRIMP FARMING MASTERPLAN STUDY COMP ADF 01.12.92 29.01.93 31.12.96 02.11.94 23.08.96 847.368.00 386.81 0.00 846,981.19 846,981.19 DIECKE PALM AND RUBBER TREES PROJECT PHASE III COMP ADF 09.01.97 31.01.97 31.12.01 13.11.97 11.03.02 4,820,000.00 15,830.47 0.00 4,804,169.53 4,804,169.53 SMALL-SCALE FISHING & FISH FARMING DEV’T COMP ADF 17.12.84 19.03.85 31.12.95 21.01.87 01.07.95

14,276,306.00 23,109.19 0.00 14,253,196.81 14,253,196.81

DIECKE PALM AND RUBBER TREES PROJECT

COMP ADF 29.01.91 08.05.91 31.12.96 09.10.91 30.05.95 13,815,780.00

95,025.69 0.00 13,720,754.31 13,720,754.31

SUB-TOTAL : Agriculture 196,806,832.00

39,156,608.55 37,119,576.77120,530,646.68

157,650,223.45

Sector : Ind/Mini/Quar

Annex 7 page 2/3 GUINEA: BANK GROUP OPERATIONS AS OF 7 APRIL 2005 (UA)

PRODUCTION OF KENAF FIBER OnGo NTF 22.11.77 11.08.78 31.12.80 23.07.81 28.09.84 5,300,000.00 4,963,915.78 0.00 336,084.22 336,084.22

REHABIL.OF BAUXITE COMPANIES IN GUINEA COMP ADB 17.12.90 12.12.91 31.12.03 27.11.92 22.12.03 86,000,000.00

18,680,088.37 0.00 67,319,911.63 67,319,911.63

MINING SECTOR STUDY COMP ADF 28.08.91 12.05.92 31.12.95 11.04.94 08.01.96 736,842.00 89,358.54 0.00 647,483.46 647,483.46

LOAN TO SOCIETE DES GRANDS MOULINS COMP ADB 08.03.93 12.05.93 30.06.95 01.10.93 01.10.93 1,965,000.00 0.00 0.00 1,965,000.00 1,965,000.00

SUB-TOTAL : Ind/Mini/Quar 94,001,842.00

23,733,362.69 0.00 70,268,479.31 70,268,479.31

Sector : Transport CONAKRY PORT DEV. PROJECT COMP ADB 21.06.83 15.09.83 31.12.90 16.02.84 13.01.88

12,690,000.00 237,446.71 0.00 12,452,553.29 12,452,553.29

CONAKRY-MAMOU ROAD REHABIL. PROJECT COMP ADF 15.06.84 07.09.84 30.06.94 06.10.86 01.05.90 13,815,780.00

0.00 0.00 13,815,780.00 13,815,780.00

EXTENSION & REHAB. OF CONAKRY PORT COMP ADB 18.08.87 23.09.87 31.12.95 19.04.89 28.08.95 23,710,000.00

1,229,104.58 0.00 22,480,895.42 22,480,895.42

KINDIA-MAMOU-KANKAN ROAD COMP ADB 21.11.89 15.12.89 31.12.96 25.03.92 07.06.96 7,000,000.00 0.00 0.00 7,000,000.00 7,000,000.00 KINDIA-MAMOU-KANKAN ROAD COMP ADF 21.11.89 15.12.89 31.12.94 17.05.90 26.05.92

16,284,199.00 0.36 0.00 16,284,199.36 16,284,199.36

SUB-TOTAL : Transport 73,499,979.00

1,466,550.93 0.00 72,033,428.07 72,033,428.07

ANNEX 7 – Page 3/3

GUINEA: BANK GROUP OPERATIONS AS AT 7/04/2005 Sector: Water Sup/Sanit SANITATION STUDIES IN THE TOWNS OF KANKAN,KINDIA,LABE,NZEREKORE COMP ADF 05.11.97 22.01.98 30.06.02 28.04.00 29.08.02 620,000.00 3,951.21 0.00 616,048.79 616,048.79

SURFACE WATER CONTROL STUDY COMP ADF 17.06.98 12.01.99 31.12.02 11.07.00 19.12.02 850,000.00 118,021.22 0.00 731,978.78 731,978.78

CONAKRY WATER SUPPLY PROJECT PHASE I COMP ADB 17.01.74 19.06.74 31.01.79 25.06.74 27.04.77 2,700,000.00 0.00 0.00 2,700,000.00 2,700,000.00

CONAKRY WATER SUPPLY PROJECT PHASE I COMP ADB 31.03.76 03.05.76 04.05.76 27.04.77 11.06.81 502,000.00 0.01 0.00 501,999.99 501,999.99

CONAKRY WATER SUPPLY PROJECT PHASE II COMP ADB 22.08.78 21.10.78 31.12.80 29.02.80 30.05.88 5,000,000.00 5.60 0.00 4,999,994.40 4,999,994.40

CONAKRY POTABLE WATER SUPPLY PROJECT COMP ADB 23.03.89 21.06.89 31.12.94 23.04.92 19.11.93 6,220,000.00 1,345,617.70 0.00 4,874,382.30 4,874,382.30

CONAKRY POTABLE WATER SUPPLY PROJECT COMP ADF 23.03.89 21.06.89 31.12.94 26.02.92 27.07.94 4,605,260.00 182,565.80 0.00 4,422,694.20 4,422,694.20

CONAKRY POTABLE WATER SUPPLY PROJECT COMP NTF 23.03.89 21.06.89 31.12.94 27.04.92 24.06.94 6,052,050.20 0.00 0.00 6,052,050.20 6,052,050.20

SOUS-TOTAL : Water Sup/Sanit 26,549,310.20 1,650,161.54 0.00 24,899,148.66 24,899,148.66

Sector: Power

STUDY ON RURAL ELECTRIFICATION PROGRAM OnGo ADF 11.09.02 15.10.02 31.12.05 01.09.03 18.02.04 1.350.260.00 0.00 1,097,646.35 252,613.65 1,350,260.00

ELECTRIFICATION – WATER NETWORK STUDIES COMP ADF 18.12.80 11.05.81 31.12.84 08.12.82 30.07.86 1.381.578.00 116,346.01 0.00 1,265,231.99 1,265,231.99

ELECTRICITY I COMP ADB 24.06.92 04.09.92 30.09.99 27.10.95 14.07.99 11,500,000.00 161,176.01 0.00 11,338,823.99 11,338,823.99

SUB-TOTAL: Power 14,231,838.00 277,522.02 1,097,646.35 12,856,669.63 13,954,315.98

Secteur : Communications

TELECOMMUNICATIONS OnGo ADB 20.02.74 19.06.74 31.01.79 12.09.75 17.12.82 4.000.000.00 0.00 0.00 4,000,000.00 4.000.000.00

TELCOMMUNICATIONS (ADD’NAL LOAN I) COMP ADB 31.03.76 03.05.76 31.12.85 17.12.82 21.01.83 1.000.000.00 0.00 0.00 1,000,000.00 1,000,000.00

TELCOMMUNICATIONS (ADD’NAL LOAN II) COMP ADB 29.12.81 21.01.82 31.12.85 21.01.83 17.01.86 4.500.000.00 199.501.61 0.00 4,300,498.39 4,300,498.39

SUB-TOTAL : Communications 9.500.000.00 199.501.61 0.00 9,300,498.39 9,300,498.39

Secteur : Social

EDUCATION PROJECT III OnGo ADF 23.01.97 03.02.97 30.06.04 16.09.97 13.01.05 11,500,000.00 0.00 33,390.70 11,466,609.30 11,500,000.00

HEALTH III OnGo ADF 04.10.00 01.12.00 31.12.07 27.09.01 10.02.05 6,500,000.00 0.00 5,455,446.67 1,044,553.33 6,500,000.00

HEALTH III OnGo ADF 04.10.00 01.12.00 31.12.07 27.09.01 04.03.04 600,000.00 0.00 95,529.16 504,470.84 600,000.00

SUST. SOC. DEV. PROJECT IN HTE & M. GUINEE OnGo ADF 05.12.01 07.12.01 31.12.08 31.08.04 1,750,000.00 0.00 1.435.750.08 314,249.92 1,750,000.00

SUST. SOC. DEV. PROJECT IN HTE & M. GUINEE OnGo ADF 05.12.01 07.12.01 31.12.08 17.12.04 20,000,000.00 0.00 18.789.683.58 1,210,316.42 20,000,000.00

POLYTECH. INST- TEACHER TRAINING COLLEGE. COMP ADF 26.11.82 29.12.83 30.06.94 07.01.85 19.09.91 13,355,254.00 6,767.89 0.00 13,348,486.11 13,348,486.11

PREPARATION OF HEALTH SECTOR PROJECTS COMP ADF 28.08.85 20.05.86 30.06.94 29.09.86 07.08.90 1,060,131.00 61,110.59 0.00 999,020.41 999,020.41

HEALTH SECTOR STUDIES COMP ADF 28.08.85 22.05.86 30.06.94 29.09.86 23.06.93 1,002,105.00 250.62 0.00 1,001,854.38 1,001,854.38

REHAB. OF SOCIAL INFRASTRUCTURE COMP ADF 26.06.87 28.07.87 31.08.98 22.11.89 02.10.98 10,619,730.00 380,660.00 0.00 10,239,070.00 10,239,070.00

REH. OF HEALTH INFRASTRUCTURE IN CONAKRY COMP ADF 26.06.87 28.07.87 31.12.99 10.07.89 15.05.00 8,565,784.00 1,009,006.10 0.00 7,556,777.90 7,556,777.90

REHABILITATION OF PHARMACEUTICAL SECTOR COMP ADF 23.02.89 21.06.89 30.09.99 06.09.90 14.10.99 7,100,390.00 48,916.45 0.00 7,051,473.55 7,051,473.55

REHABILITATION OF PHARMACEUTICAL SECTOR COMP ADF 23.02.89 21.06.89 30.09.99 23.05.90 29.09.99 2,440,788.00

29,529.77 0.00 2,411,258.23 2,411,258.23

SUB-TOTAL : Social 84,494,182.00 1,536,241.42 25,809,800.19 57,148,140.39 82,957,940.58

Sector: Multi-Sector

SUPPORT PROJECT FOR ECONOMIC ACTIVITIES BY WOMEN OnGo ADF 27.11.97 22.01.98 31.12.05 18.01.00 20.12.04 3,000,000.00 0.00 2,284,547.69 715,452.31 3,000,000.00

STRUCTURAL ADJUSTMENT PROGRAM III OnGo ADF 27.09.01 05.10.01 31.12.03 28.05.03 12,250,000.00 0.00 0.00 12,250,000.00 12,250,000.00

STRUCTURAL ADJUSTMENT PROGRAM COMP ADF 17.01.89 23.02.89 30.06.94 27.07.89 17.09.92 13,815,780.00 0.02 0.00 13,815,779.98 13,815,779.98

SUPPORT TO NATIONAL ECONOMIC MANAGEMENT COMP ADF 23.02.89 10.03.89 31.12.97 01.02.90 25.04.94 3,142,629.00 130.09 0.00 3,142,498.91 3,142,498.91

SUPPORT TO SOCIO-ECONOMIC DEVELOPMENT COMP ADF 21.08.89 11.09.89 30.06.99 22.10.90 28.04.99 1,444,210.00 42,773.27 0.00 1,401,436.73 1,401,436.73

STRUCTURAL ADJUSTMENT PROGRAM – SAP II COMP ADF 10.12.97 17.12.97 31.12.00 30.12.97 29.12.98 10,000,000.00 0.00 0.00 10,000,000.00 10,000,000.00

SUB-TOTAL : Multi-Sector 43,652,619.00 42,903.38 2,284,547.69 41,325,167.93 43,609,715.62

TOTAL GENERAL 561,986,602.20 68,062,852.14 85,561,571.00 408,362,179.06 493,923,750.06