Implementing the JAM Infrastructure Implementing the JAM Infrastructure RecommendationsRecommendations

Progress and Way ForwardProgress and Way Forward

Presentation to the Infrastructure Break out Session of the Paris Meeting of the Sudan Presentation to the Infrastructure Break out Session of the Paris Meeting of the Sudan Consortium, 9 – 10 March 2006 Consortium, 9 – 10 March 2006

The JAM RecommendationsThe JAM Recommendations

Overall Strategic Objectives by 2011Overall Strategic Objectives by 2011

Develop a network of well maintained roads and transportation services (road, Develop a network of well maintained roads and transportation services (road, rail, air and river) that allows for better connectivity, improved access to markets rail, air and river) that allows for better connectivity, improved access to markets and social services, and enhances economic growth and job creation. and social services, and enhances economic growth and job creation.

Increased domestic allocations consistent with vision for broad based growth. Increased domestic allocations consistent with vision for broad based growth. Streamline funding mechanisms and increase aid management capacity.Streamline funding mechanisms and increase aid management capacity.

Develop sound institutional and enabling environment for infrastructure Develop sound institutional and enabling environment for infrastructure development, including:development, including:

local capacity to supervise and manage donor-financed projects; local capacity to supervise and manage donor-financed projects; appropriate policy and institutional framework for the infrastructure sector capable of appropriate policy and institutional framework for the infrastructure sector capable of supporting increased economic activity; andsupporting increased economic activity; andwell-functioning national planning and regulatory authorities.well-functioning national planning and regulatory authorities.

Significant increase in urban and rural electrification.Significant increase in urban and rural electrification.

Phase I (2005-07):Phase I (2005-07):Preparation of projects required for rehabilitation and development of Preparation of projects required for rehabilitation and development of infrastructureinfrastructureMajor capacity building, including skills development and trainingMajor capacity building, including skills development and trainingDevelop implementation structuresDevelop implementation structuresPromote greater private sector participation through regulatory reforms and Promote greater private sector participation through regulatory reforms and Institutional developmentInstitutional developmentImplement “quick-win” projectsImplement “quick-win” projectsFurther development of Phase IIFurther development of Phase II

Phase II (2008-11):Phase II (2008-11):Major rebuilding and construction of new infrastructure in the South and other Major rebuilding and construction of new infrastructure in the South and other war-affected areas to improve connectivity and rural accessibilitywar-affected areas to improve connectivity and rural accessibilityImplement key policy and management reforms in transport and electricity to Implement key policy and management reforms in transport and electricity to enhance efficiencyenhance efficiencyContinue implementation of capacity building projectsContinue implementation of capacity building projects

Donor coordination and assistance will be key in both capacity Donor coordination and assistance will be key in both capacity building and project implementationbuilding and project implementation

A Two-Phased Strategy:A Two-Phased Strategy:

Priorities – Northern SudanPriorities – Northern Sudan

Basic infrastructure network exists, but reforms are required.Basic infrastructure network exists, but reforms are required.

The development agenda is conventional, focusing on maintenance, The development agenda is conventional, focusing on maintenance, capacity building, and reform. capacity building, and reform.

Priorities include:Priorities include:Develop implementation structures Develop implementation structures Facilitate for greater private sector participation Facilitate for greater private sector participation Rehabilitation and upgrade of existing roads, railways, ports and river transport systemsRehabilitation and upgrade of existing roads, railways, ports and river transport systemsReconstruct urban infrastructure and municipal servicesReconstruct urban infrastructure and municipal servicesBroad-based electrificationBroad-based electrificationReform to improve safety, security and performanceReform to improve safety, security and performance

Needs are larger in the Three Areas and Less developed areas of the Needs are larger in the Three Areas and Less developed areas of the NorthNorth

Infrastructure network and policy and regulatory framework are non-Infrastructure network and policy and regulatory framework are non-existing or embryonic, and operators are largely foreign-based. existing or embryonic, and operators are largely foreign-based.

Priorities include:Priorities include:– Increase access and connectivity through construction of basic transport Increase access and connectivity through construction of basic transport

infrastructure network involving roads, river transport and aviationinfrastructure network involving roads, river transport and aviation– Develop rural roads Develop rural roads – Build sufficient implementation, management and institutional capacityBuild sufficient implementation, management and institutional capacity– Expand rural electrification Expand rural electrification

Higher assessed road infrastructure needs for 2007 will be Higher assessed road infrastructure needs for 2007 will be presented to donors for support as soon as specific benchmarks are presented to donors for support as soon as specific benchmarks are met over the next 12-18 months, thereby showing readiness and met over the next 12-18 months, thereby showing readiness and implementation capacityimplementation capacity

As per the CPA, a substantial share of the infrastructure needs for As per the CPA, a substantial share of the infrastructure needs for the South are the financing responsibility of the NG – in particular the South are the financing responsibility of the NG – in particular national roads, civil aviation and river transportnational roads, civil aviation and river transport

Priorities – Southern SudanPriorities – Southern Sudan

Costing Estimates - InfrastructureCosting Estimates - Infrastructure

2005 2006 2007 TOTAL Phase I

Phase II 2008-11 (preliminary)

TOTAL

ROADS 5.1 13.5 82.6 101.2 128.8 230.0 RAILS 1.2 3.3 19.8 24.3 30.9 55.2 CIVIL AVIATION 0.1 0.2 1.4 1.7 2.2 3.9 PORTS, MARITIME AND WATERWAYS 0.1 0.1 0.9 1.1 1.4 2.5 URBAN INFRASTRUCTURE 8.7 23.2 141.6 173.5 220.7 394.2 ELECTRICITY 0.8 2.0 12.5 15.3 19.5 34.8 MAINSTREAMING GENDER AND HIV 0.0 0.1 0.7 0.8 1.1 1.9 Total 16 43 259 318 405 723

2005 2006 2007 TOTAL Phase I

Phase II 2008-11 (preliminary)

TOTAL

URBAN INFRASTRUCTURE 0.2 0.6 8.4 9 2.0 11.2 NATIONAL INFRASTRUCTURE* 1.3 3.8 49.7 55 195.0 249.8 Total 2 4 58 64 197 261

* Major infrastructure (including interstate highways, river transport and civil aviation) which in the CPA are under the jurisdiction of the National Government but located in the Three Areas.

National Government (million US$)National Government (million US$)

Three Areas (million US$)Three Areas (million US$)

2005 2006 2007 TOTAL Phase I

Phase II 2008-11 (preliminary)

TOTAL

ROADS 27.4 36.2 77.4 141.0 8.5 149.5 CIVIL AVIATION 0.1 0.1 0.3 0.5 0.8 1.3 RIVER TRANSPORT 0.0 0.0 0.1 0.2 0.2 0.3 URBAN INFRASTRUCTURE 37.6 49.7 106.3 193.5 35.7 229.2 ELECTRICITY 9.4 12.4 26.4 48.2 74.9 123.1 NATIONAL INFRASTRUCTURE* 119.9 158.3 338.7 616.9 135.0 751.9 MANAGEMENT CAPACITY BUILDING 2.0 3.1 6.9 12.0 18.0 30.0 MAINSTREAMING GENDER AND HIV 0.5 0.4 0.3 1.1 0.2 1.3 Total 197 260 556 1013 273 1287

Substantial phasing up as soon as the technical and feasibility Substantial phasing up as soon as the technical and feasibility studies have been preparedstudies have been prepared

Government of Southern Sudan (million US$)Government of Southern Sudan (million US$)

* Major infrastructure (including interstate highways, river transport and civil aviation) which in the CPA are under the jurisdiction of the National Government but located in Southern Sudan, so that their costs are presented in this table, without prejudice to the CPA.

Costing, cont’d

Progress in ImplementationProgress in Implementation

BASIC APPROACHBASIC APPROACH

Emergency infrastructure improvements Emergency infrastructure improvements

Creating enabling policy, institutional and regulatory Creating enabling policy, institutional and regulatory framework and sustainable capacity building.framework and sustainable capacity building.

Activities Underway Activities Underway

Under ImplementationUnder Implementation

South Sudan Emergency Transport and Infrastructure Project (SETIDP) - South Sudan Emergency Transport and Infrastructure Project (SETIDP) -

Under PreparationUnder Preparation

National Emergency Transport Rehabilitation Project (NETREP) National Emergency Transport Rehabilitation Project (NETREP)

Water sector projects in both North and South, including completing sector Water sector projects in both North and South, including completing sector strategy.strategy.

Extensive capacity building initiatives included in SETIDP and NETREP.Extensive capacity building initiatives included in SETIDP and NETREP.

National Transport Master Plan – appointment of consultant being launched.National Transport Master Plan – appointment of consultant being launched.

Defining overall framework for promoting private sector participation in Defining overall framework for promoting private sector participation in infrastructure.infrastructure.

Activities Still to be Initiated Activities Still to be Initiated

Rural roads development in Darfur and the war affected areas.Rural roads development in Darfur and the war affected areas.

Formulation of urban development strategies and plans. Formulation of urban development strategies and plans.

Electricity – feasibility studies on hydro-power development Electricity – feasibility studies on hydro-power development and study of tariff structure.and study of tariff structure.

Reform of road sector management, including creation of Reform of road sector management, including creation of Road Authority for Southern SudanRoad Authority for Southern Sudan

Costing Budget and Actuals – Costing Budget and Actuals – GNU & Northern States - Infrastructure (bill SD)GNU & Northern States - Infrastructure (bill SD)

Local Foreign Total Local Foreign Total Local Foreign Total

Transport, Roads & Bridges 25.4 31.0 56.4 26.8 7.5 34.2 23.1 20.5 43.6

Electricity 36.1 6.0 42.2 23.5 3.2 26.7 34.2 6.0 40.3

Total 61.5 37.0 98.6 50.3 10.7 60.9 57.3 26.5 83.9

2005Budget Actual

2006Budget

Nearly all expenditures are classified as central development expenditures. .

• GOSS – USD 100 million towards Transport and Infrastructure Project.

Sudan Emergency Transport and Infrastructure Sudan Emergency Transport and Infrastructure Development ProjectDevelopment Project

Component 1: Roads and Transport DevelopmentComponent 1: Roads and Transport Development

Emergency Accessibility Improvements – WFP Phase 3 – 353Km plus Emergency Accessibility Improvements – WFP Phase 3 – 353Km plus 820Km under maintenance820Km under maintenance

Road Improvement to Paved Standard (624Km)Road Improvement to Paved Standard (624Km) Road Upgrading to all weather Gravel Roads (1,122Km) Road Upgrading to all weather Gravel Roads (1,122Km) Feeder Roads Program (1,000Km)Feeder Roads Program (1,000Km)

Component 2: Basic Urban InfrastructureComponent 2: Basic Urban Infrastructure

Rehabilitation works in Juba – Government houses/buildings; hospital; Rehabilitation works in Juba – Government houses/buildings; hospital; water supply and sanitation; roads and drainage. water supply and sanitation; roads and drainage.

Immediate infrastructure rehabilitation/ provision in all state capitals. Immediate infrastructure rehabilitation/ provision in all state capitals. Establishment of town planning and land administration institute.Establishment of town planning and land administration institute.

Sudan Emergency Transport and Infrastructure Sudan Emergency Transport and Infrastructure Development ProjectDevelopment Project

Component 3: Institutional Development & Capacity BuildingComponent 3: Institutional Development & Capacity Building

Capacity building and program implementationCapacity building and program implementation - Supervision of works- Supervision of works - TA support to Project Management Team (PMT)- TA support to Project Management Team (PMT) - TA & policy studies;- TA & policy studies; - Monitoring & evaluation; Information, - Monitoring & evaluation; Information, - Education and Communication Strategy - Education and Communication Strategy

Preparation of next phase projects – Roads, Urban infrastructurePreparation of next phase projects – Roads, Urban infrastructure and Power and Electricityand Power and Electricity

Sudan Emergency Transport and Infrastructure Sudan Emergency Transport and Infrastructure Development ProjectDevelopment Project

FinancingFinancing

2005 2006 2007 Total2005 2006 2007 Total

MDTF 50 80 120 250MDTF 50 80 120 250 GOSS 100 240 187 527GOSS 100 240 187 527

Total 150 320 304 777Total 150 320 304 777USAID has committed some funds for Juba rehabilitation and is fundingUSAID has committed some funds for Juba rehabilitation and is fundingCapacity Building Program for Ministry of Roads and Transport.Capacity Building Program for Ministry of Roads and Transport.

National Emergency Transport Rehabilitation ProjectNational Emergency Transport Rehabilitation Project

RATIONALERATIONALEPeace has increased economic activities which is generating increased traffic Peace has increased economic activities which is generating increased traffic especially for import and export. especially for import and export. Peace has also created the opportunity to improve connectivity between North and Peace has also created the opportunity to improve connectivity between North and South and to thus facilitate return of IDPs.South and to thus facilitate return of IDPs.

Meeting increased traffic demand requires a multi-modal approach: safeguard Meeting increased traffic demand requires a multi-modal approach: safeguard highways, secure and reinstate critical rail and port assets, improve travel and highways, secure and reinstate critical rail and port assets, improve travel and transport by river transport, adoption of modern operating practices, facilitate transport by river transport, adoption of modern operating practices, facilitate private sector investment .private sector investment .

Without increasing available capacity, significant increase in transport costs Without increasing available capacity, significant increase in transport costs inevitable which would erode benefits of peace to the poor. inevitable which would erode benefits of peace to the poor.

Proposed activities situated in policy reforms whilst providing immediate needed Proposed activities situated in policy reforms whilst providing immediate needed increase in transport capacity.increase in transport capacity.Will benefit the economy as a whole and the poor in particular.Will benefit the economy as a whole and the poor in particular.

National Emergency Transport Rehabilitation ProjectNational Emergency Transport Rehabilitation Project

COMPONENTSCOMPONENTS

Component 1Component 1: Re-instates Babanusa –Wau rail line, critical link between North : Re-instates Babanusa –Wau rail line, critical link between North and South that will result in lower freight cost leading to reduced cost of food and and South that will result in lower freight cost leading to reduced cost of food and other essential commodities and lowest cost option for return of IDPs. Strengthen other essential commodities and lowest cost option for return of IDPs. Strengthen critical bridge on Port-Sudan to Khartoum rail line to safeguard Sudan’s main critical bridge on Port-Sudan to Khartoum rail line to safeguard Sudan’s main export/ import traffic route; establish rail connection to Green Port Area of Port export/ import traffic route; establish rail connection to Green Port Area of Port Sudan to improve container productivity.Sudan to improve container productivity.

Component 2Component 2: Improve operational capacity of Sudan Railway Corp including new : Improve operational capacity of Sudan Railway Corp including new locoslocosComponent 3Component 3: Trade facilitation initiatives to improve transport supply chain.: Trade facilitation initiatives to improve transport supply chain.

Component 4Component 4: Improve river transport between Kosti & Juba: Improve river transport between Kosti & Juba Component 5:Component 5: Technical Assistance, studies and capacity building Technical Assistance, studies and capacity building

Emerging Challenges and Way Emerging Challenges and Way ForwardForward

Emerging ChallengesEmerging Challenges

Managing expectationsManaging expectations: Meeting increasing demand for infrastructure and : Meeting increasing demand for infrastructure and improved services due to economic growth (in North) and basic needs and improved services due to economic growth (in North) and basic needs and aspirations (South).aspirations (South).

Slowness in implementationSlowness in implementation, both government budget execution , both government budget execution (GNU/GOSS during 2005) and conversion of donor pledges(GNU/GOSS during 2005) and conversion of donor pledges

Establishing and applying due financial and procurement management Establishing and applying due financial and procurement management systems. systems.

Designing programs that directly touch the rural poor.Designing programs that directly touch the rural poor.

Ensuring adequate financingEnsuring adequate financing in the face of more detailed assessment of in the face of more detailed assessment of needs.needs.

Clarifying roles of GNU and GOSSClarifying roles of GNU and GOSS in the context of the provisions of the in the context of the provisions of the CPA.CPA.

Addressing the Challenges Addressing the Challenges

Sustain JAM frameworkSustain JAM framework: put in place Infrastructure specific consultation : put in place Infrastructure specific consultation processes for decision making on strategic investment, information processes for decision making on strategic investment, information sharing, and financing of national projects between GNU/GOSS and sharing, and financing of national projects between GNU/GOSS and development partners.development partners.

Adopt multi-sector approach to identifying and implementing pro-Adopt multi-sector approach to identifying and implementing pro-poor infrastructure initiativespoor infrastructure initiatives: engage with sectors such as agriculture : engage with sectors such as agriculture and rural development, DDR, etc. to adopt common approaches and and rural development, DDR, etc. to adopt common approaches and establish linkages on activities to promote local level employment creation establish linkages on activities to promote local level employment creation and income generation.and income generation.

Addressing the Challenges Addressing the Challenges

Promote private sector participation in financing and Promote private sector participation in financing and implementationimplementation: Develop sector specific strategies (in : Develop sector specific strategies (in relation to large to small scale enterprises) based on overall relation to large to small scale enterprises) based on overall strategy being developed.strategy being developed.

Enable sustainable technical approaches and Enable sustainable technical approaches and implementation arrangementsimplementation arrangements: reforms of institutions and : reforms of institutions and creation of new ones to reflect accepted good practice, creation of new ones to reflect accepted good practice, legislations, standards, budgeting processes, prioritization of legislations, standards, budgeting processes, prioritization of projects, etc. – harmonize where necessary.projects, etc. – harmonize where necessary.

Way Forward: Six Month Action Plan (1)Way Forward: Six Month Action Plan (1)

ProjectsProjects

SETIDP implementation continues – contract for first section of Nadapal SETIDP implementation continues – contract for first section of Nadapal to Juba road awarded.to Juba road awarded.

Start implementation of NETREP, and water projects.Start implementation of NETREP, and water projects.

Projects in Darfur and war affected areas under preparation.Projects in Darfur and war affected areas under preparation.

Agreements reached with agriculture, rural development, and others on Agreements reached with agriculture, rural development, and others on multi-sector approach to rural infrastructure.multi-sector approach to rural infrastructure.

Way Forward: Six Month Action Plan (2)Way Forward: Six Month Action Plan (2)

Policy, Institutional and LegalPolicy, Institutional and Legal

GNU/GOSS establish Joint Coordinating Committee.GNU/GOSS establish Joint Coordinating Committee.

- GNU/GOSS to create one Sub-Committee each (or - GNU/GOSS to create one Sub-Committee each (or mandate existing ones) at ‘expert level’ to detail specific mandate existing ones) at ‘expert level’ to detail specific proposals for implementation.proposals for implementation.

- Joint Committee to adopt proposals where in specific area of - Joint Committee to adopt proposals where in specific area of jurisdiction of GNU or GOSS or consider for approval where in jurisdiction of GNU or GOSS or consider for approval where in area of jurisdiction of GNU which fit into the 2007 budget of area of jurisdiction of GNU which fit into the 2007 budget of GNU and GOSS.GNU and GOSS.

Way Forward: Six Month Action Plan (3)Way Forward: Six Month Action Plan (3)

Policy, Institutional and LegalPolicy, Institutional and Legal

Firm agreements reached on roles of GNU/GOSS in sector Firm agreements reached on roles of GNU/GOSS in sector management and financing.management and financing.Decision made on application of traffic laws and legislation and Decision made on application of traffic laws and legislation and interim legislation enacted in South as necessary.interim legislation enacted in South as necessary.

Road Authority established in South and preparation of plan for Road Authority established in South and preparation of plan for reform of National Highway Authority initiated.reform of National Highway Authority initiated.Consideration by GNU/GOSS of recommendations of private sector Consideration by GNU/GOSS of recommendations of private sector studies underway.studies underway.