AFRICAN DEVELOPMENT FUND

PROJECT COMPLETION REPORT

BILANGA-FADA NGOURMA ROAD PROJECT

BURKINA FASO

COUNTRY PROGRAMMES DEPARTMENT – WEST REGIONINFRASTRUCTURE & INDUSTRY DIVISION JUNE 1999

TABLE OF CONTENTS

Pages

EQUIVALENTS, ACRONYMS AND ABBREVIATIONS iLIST OF ANNEXES iiLESSONS, CONCLUSIONSAND RECOMMENDATIONSBASIC DATA iiiRECONSTITUTED PROJECT MATRIX viSUMMARY vii

1. INTRODUCTION 1

1.1 Socio-Economic and social Background 11.2 Project Preparation, Appraisal and Approval 1

2. PROJECT OBJECTIVE AND FORMULATION 1

2.1 Project Objective 12.2 Project Design 22.3 Project Description 2

3. PROJECT IMPLEMENTATION 2

3.1 Loan Effectiveness and Start-up of Project 23.2 Modifications 33.3 Project Implementation Schedule 33.4 Procurement of Works and Services 33.5 Project Cost 33.6 Financing Plan and Loan Disbursement 4

4. PROJECT PERFORMANCE 5

4.1 Operational Performance 54.2 Institutional Performance 64.3 Performance of the Contractor and the Consultant 74.4 Economic Performance 7

5. SOCIO-ECONOMIC AND ENVIRONMENTAL IMPACT 8

5.1 Social Impact 85.2 Environmental Impact 9

6. SUSTAINABILITY 9

PERFORMANCE OF THE BANK ANDTHE BORROWER 10

7.1 Performance of the Bank 107.2 Performance of the Borrower 10

8. OVERALL PERFORMANCE 11

9. LESSONS, CONCLUSIONS ANDRECOMMENDATIONS 11

9.1 Conclusions 119.2 Recommendations 11

This report was prepared by Messrs. B. ASKOFARE, Civil Engineer and M. LEKE, TransportEconomist following their mission to Burkina Faso in June 1998. The Acting Division in chargeis Mr. W. HABTE-SELASSIE, Ext. 4663.

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EQUIVALENTS, ACRONYMS AND ABBREVIATIONS

Currency Equivalents

1 UA = 0.9210521 UA at appraisal = CFA.F 3801 UA upon completion = CFA.F 841.836

Accounting Year in Burkina Faso

01 January – 31 December

Weights and Measures

1 hectare (ha) = 2.471 acres1 kilogramme (kg) = 2.205 lbs1 metre (m) = 3.29 feet (ft)1 sq. kilometre (km2) = 0.3861 sq. mile

Acronyms and Abbreviations

ADF = African Development FundDAF = Direction des affaires administratives et financières

(Directorate of Administrative and Financial Affairs)DCCT = Direction centrale de contrôle des travaux

(Central Directorate of Works Control)DEP = Direction des études et de la planification

(Directorate of Studies and Planning)DGC = Direction de la gestion des contrats

(Contracts Management Directorate)DGIR = Direction générale des infrastructures routières

(General Directorate of Road Infrastructure)DGT = Direction de la gestion des travaux

(Works Management Directorate)DGUT = Direction générale de l'urbanisme et la topographie

(General Directorate of Town Planning and Topography)DTTM = Direction des transports terrestres et maritimesFCFA = Franc de la Communauté Financière d'Afrique (CFA Franc)GDP = Gross Domestic ProductIDA = International Development AssociationIERR = Internal Economic Rate of ReturnIMF = International Monetary FundLNBTP = Laboratoire national du bâtiment et des travaux publicsMIHU = Ministère des Infrastructures, de l'habitat et de l'urbanisme

(Ministry of Infrastructure, Housing and Town Planning)PANE = Plan national d'action environnementale

(National Environmental Action Plan)PIP = Public Investment ProgrammeRD = Regional DirectorateSAF = Service administratif et financier (Admin. and Financial Dept.)

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SFP = Service de formation et du perfectionnement(Training and Retraining Department)

SLM = Société de location de matériel (Equipment Hiring Company)SM = Service du matériel (Equipment Department)UA = Unit of AccountVTC = Vocational Training Centre

LIST OF ANNEXES

N° Title No.of pages

1. Road Network Map and2. Location of the Project Road 1

2. Project Area of Influence 1

3. Traffic Observed and Projected 1

3. Calculation of the4. Internal Economic Rate of Return 1

5. Marks of the Overall

6. Performance Evaluation 1

7. Matrix of Recommendations and

8. Monitoring Actions 1

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BASIC DATA

PRELIMINARY DATA

1. Country : Burkina Faso2. Project Title : Bilanga Fada Ngourma Road3. Loan Number : F/BUF/RTE/92/194. Borrower : Government of Burkina5. Executing Agency : Ministère des infrastructure, Habitat et

Urbanisme/Direction Générale des Routes

A. LOANEstimate atappraisal Actual

1. Amounts in million UA : 11.39 11.382. Commission on amounts

disbursed and outstanding : 0.75 % 0.75 %

3. Repayment : 1 % of the principal each year Idemfrom the 11th to the 20th year

and 3 % per annum thereafter.

4. Repayment period, includinga 10-year grace period : 50 years 50 years

5. Negotiation date : 02/08/9906. Approval date : 28/08/19917. Signature date : 17/07/19928. Date of entry into force : 16/10/1992

B. PROJECT DATA

1. Cost and financing plan

Sources of finance Financing plan at appraisal in million UA Actual financing plan upon completion in million UA

F.E L.C Total % F.E L.C Total

ADF 9.07 2.31 11.39 90.00 10.89 0.49 11.38

Government - 1.26 1.21 10.00 - 1.21 1.21

Total 9.07 3.57 12.65 100 1.89 1.69 12.59

Projection Actual

1. First disbursement date : March 1991 13/11/92

2. Last disbursement date : 13/12/93 16/04/973. Commencement of project implementation activities : March1991 15/10/924. Completion of project implementation activities : Dec. 1992 June 996

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C. PERFORMANCE INDICATORS

1. Cost Underrun/Overrun : None2. Slippage/Advance

- Slippage on first disbursement : 20 months- Slippage on last disbursement : 40 months- Number of extensions of last

disbursement : 2

3. Project implementation status : Completed4. List of verifiable indicators and levels of

completion (in % of planned levels) : 100 %

5. Institutional performance : 2

6. Contractor performance : 2

7. Consultant performance : 2

8. Internal rate of return : Appraisal PCR

IRR (%) 10.83 % 10.34 %

D. MISSIONS

Dates Type ofmissions

Number ofPersons

Composition S/Days forthe project

From 21/02 to 02/03/90 Appraisal 2 1 Transport Economist1 Civil Engineer 24

From 13 to 26/03/94 Supervision 2 1 Civil Engineer1 Transport Economist 14

From 12 to 22/12/96 Supervision 1 1 Civil Engineer 11

From 23/06/92 to03/07/98

PCR 2 1 Transport Economist1 Civil Engineer

22

Total 71

E. ANNUAL DISBURSEMENTS (Only ADF share in million UA)

1991 1992 1993 1994 1995 1996 1997 TotalProjection 6.94 4.44 11.38Actual - 1.10 6.23 0.91 1.63 1.47 0.04 11.38

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F. CONTRACTORS

Name : KANAZOEContract number : 135/92/MFP/MTPHUPurpose of contract : Road worksDate contract signed : 15/10/92Contract duration : 32 monthsDate contract terminated : 15/06/96Actual end of works : 15/06/96Initial contract amount duty free : 3 126 151 794 CFA.FAmount of additional contracts (1 to 5) : 2 589 771 031 CFA.FFinal contract amount duty free : 5 720 186 683 CFA.F

G. CONSULTANT 1

Name : Louis BergerInternational (LBI)

Contract number : 198/92/MFP/MTPHUContract description : Works controlDate contract signed : 01/10/92Contract duration : 20 monthsDate contract terminated : 01/07/96Actual completion date : 01/07/96Initial contract amount DF : 240 350000 CFA.FAmount of additional contracts DF (2) : 420 482 980 CFA.FFinal contract amount DF : 660 832 980 CFA.F

H. CONSULTANT 2

Name : LNBTPContract number : 192/92/MFP/MTPHUContract description : Geotechnical controlDate service contract signed : 16/10/92Contract duration : 18 monthsDate contract terminated : 14/04/94Actual completion date : 15/04/94Initial contract amount DF : 80 734 000 CFA.FAmount of additional contracts DF (2) : 83 562 044 CFA.FFinal contract amount DF : 164 296 044 CFA.F

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BURKINA FASOBILANGA-FADA NGOURMA ROAD PROJECT

Reconstituted Project MatrixPrepared by: - M. LEKE

- B. ASKOFARE

DESCRIPTIVESUMMARY

OBJECTIVELYVERIFIABLEINDICATORS

MEANS OFVERIFICATION

IMPORTANTASSUMPTIONS/

RISKS

1. SECTORALOBJECTIVES.

1.1 Internal and externalopening up of the country.

1. 5 % annual increase in 1. Import/export statisticsof Burkina.

2. PROJECT OBJECTIVE

2.1 Opening up of Gourmetand Ganglia provinces.

2.2 Improvement of theservice level of the projectroad.

1. 12 % reduction in thevehicle operating cost.

2. 10 % increase in theagricultural production ofthe region.

1. Road counts andregistrations.

2. Agricultural statistics;annual results of the forestmanagement.

3. Economic statistics

1. Pursuit of actionsin favour of regionalintegration.

2. Optimumimplementation of themaintenance policies.

3. RESULTS

3.1 Earth road 76.44 kmlong and 7 m wide.

Features of an ordinaryearth road with a designspeed of 80 km/h.

1. Quarterly

2. Supervision and auditreports.

3. ProjectCompletion Report (PCR).

Implementation ofvarious developmentprojects in the projectarea.

2. Satisfactorymaintenance of the roadnetwork.

3. ACTIVITIES

4.1 Bidding for works.4.2 Bidding for consultingfirms.4.3 Road works4.4 Supervision andcontrol.4.5 Geotechnical control

4. RESOURCES(in Million UA)

ADF : 11.38Govt. : 1.26Total : 12.64

1. Contracts

2. Appraisal report

3. Accounting.

4. Loan agreement.

Availability of localcontribution.

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SUMMARY

1. Introduction

1.1 The purpose of the project was to upgrade the damaged earth road between Bilanga andFada- Ngourma into an ordinary earth road of 76.44 km long and to construct two road-dams alongthe road layout. It was designed and implemented under the general Structural Adjustment andEconomic Reform Programme launched in 1990/91 by the Government with the support of theInternational Monetary Fund, the World Bank and other donors, including the Bank.

1.2 In relation to the overall context, three objectives were targeted under the project: i)opening up of Gourma and Gnagna provinces to promote trade; ii) reduction of road user costs andiii) improvement of the living conditions of the riverside populations.

2. Project Implementation

2.1 All the project components, namely the ordinary earth road and the two road-dykes havebeen fully implemented, including a 58 km transversal road – the only modification to the project –for a total cost of UA 12.59 million compared to UA 12.65 million at appraisal. The ADF loan ofUA 11.38 million was disbursed to the tune of 99.95 %; there was therefore a balance of UA 5,523,which was cancelled.

2.2 The project was implemented over a period of 44 months whereas the contract period wasfixed at 20 months. There was therefore an overrun of 24 months occasioned partly by theconstruction study of the Tandyari-Gayéri transversal road that was not initially planned, and partlyby bad weather and the suspension of works on the dykes made necessary by the supplementarystudies on the dykes projected at appraisal.

3. Overall Project Performance

3.1 Viewed from their various angles, it can be concluded that overall, the project output was inkeeping with the pre-established technical standards. The respective performances of the variousparties involved, namely the Government, the Bank, the Contractor and the Engineering Consultantare on the whole satisfactory. Each party fully played its role. The Government and the Bank inparticular, coordinated their actions quite well, thereby saving the project from additional slippagesafter the delay registered during the works start-up phase.

3.2 This delay is the only factor of significant poor performance noted in relation to all theproject activities; it did not, however, have a negative impact on the total estimated project cost. Inactual fact, the bid prices made it possible to fully implement the basic project and to construct the58 km transversal road within the financial package projected at appraisal.

4. Lessons, Conclusions and Recommendations

Lessons

4.1 The first lesson is drawn from the review of the project preparation phase.

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It shows that a thorough preparation by the borrower, in close collaboration with the donor, is adeterminant factor to ensure the implementation of the project without hitch. The operation alsoshows that an integrated road-dyke project, particularly adapted to he semi-arid environment as inBurkina, has a magnifying effect on the economic and social benefits.

Conclusions

4.2 The project has made possible the construction not only of the Bilanga-Fada Ngourma earthroad of 76.44 km initially planned, but also of the Yanmba-Tandyéri earth road (58 km) and twodykes along the layout of the Bilanga-Fada Ngourma section. The quality of the structuresconstructed is satisfactory and their performance three years after completion does not call for anyparticular remark.

4.3 The economic rate of return re-estimated on the basis of the actual investment cost and theearliest traffic trends stands at 10.34 %. This rate, which is close to that of the appraisal (10.83 %),confirms the economic viability of the project. Other socio-economic benefits not taken intoaccount in the ERR, such as time gain, agricultural and fishing valued added, are alreadyperceptible in the direct area of influence of the project.

Recommendations

4.4 In view of the above, it is recommended to the Government to:

i) pursue regular maintenance of and road counts on, the Bilanga-Fada Ngourma roadand the Andiéri-Yanmba-Gayéri transversal road;

ii) strengthen the safety measures (signalling, bridge rails and cleaning) of the tworoad-dykes;

iii) entrust the management of the dykes and dams to an appropriate body and informthe Bank thereof.

1. INTRODUCTION

1.1 Socio-economic and Sectoral Background

1.1.1 The Bilanga-Fada Ngourma road is located in the Gourma and Gnagna Provinces andaccounts for 76.44 km of the North-South highway linking Burkina to Benin and Niger. Its areaof influence occupies about 1800 square km and borders the Departments of Fada Ngourma,Yamba, Diapangou and Bilanga; it has a population of 55,700 inhabitants the large majority ofwhom are engaged in agro-pastoral activities.

1.1.2 The project was designed and implemented under the general structural adjustment andeconomic reform programme launched in 1990/91 by the Government at the instigation of theInternational Monetary Fund and the World Bank. In addition to reducing the internal andexternal financial imbalances, this programme, supported by Burkina’s principal donorsincluding the Bank, seeks to improve the real per capita income, notably through increase in theagricultural and pastoral production, which continues to weigh on the trade balance of thecountry. The improvement of the road network in the agriculture-intensive areas is among theaccompanying measures that could contribute to achieve the targeted production and marketingobjectives.

1.2 Project Preparation, Appraisal and Approval

1.2.1 On the basis of these macro-economic and sectoral considerations, the Bilanga-FadaNgourma road was integrated into the priority network selected under the modern earth roadsconstruction works. Therefore, further to the Government’s request, the Bank in February 1990appraised the project, which constitutes the fifth Bank operation in the roads sub-sector.

1.2.2 The appraisal was based on the detailed engineering studies and the economicjustification conducted by a consulting firm. However, there was no environmental impactassessment as it was not considered a condition precedent to the presentation of the appraisalreport to the Board. The ADF loan of UA 11.38 million was approved in August 1991.

II. PROJECT OBJECTIVE AND FORMULATION

2.1 Project Objective

2.1.1 The sectoral and specific objectives of the project were not clearly defined at appraisal.According to the information contained in the appraisal report, they could however bereformulated as follows:

i) the sectoral objective of the project was to help open up the country internallyand externally in order to promote trade;

ii) The specific objectives of the project were to open up Gourma and GnagnaProvinces in the South-East of the country and to improve the road service level;

2.1.2 These objectives, as formulated, are implicit in the appraisal report. In retrospect, theyseem to agree with the policy of reflating the economy and improving the living standard of thepopulation, notably through increase in agricultural production and domestic trade.

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2.2 Project Design

2.2.1 The project was designed to link up two existing road sections, namely Bilanga-Taparkoand Fada Ngourma-Pama-Tindangou whose construction was financed by ADF. The projectwould therefore open up Gourma and Gnagna provinces and complete the link with Benin. Inview of the existing and estimated little traffic, an ordinary earth road with appropriategeometrical and geotechnical features was chosen.

2.2.2 Upon completion, the recommended construction standard proves adapted to the localconditions and the transport demand. In effect, during construction, no particular problem ofmaterials was raised and the current traffic volume, estimated at 50 vehicles/day with a growthrate of 3 %, is compatible with the technical features of the road, together with the design speedfixed at 80 km/h.

2.3 Project Description

Project components at appraisal are as follows:

i) construction of an ordinary Bilanga-Fada Ngourma earth road 76.44 km longand 7.00 m wide; and construction of three (3) inverts totalling 1,600 ml and twodams of a total length of 1,400;

ii) services of a consultant in charge of works supervision and control, ofconducting the study of the two dykes along the road layout;

iii) services of the national public buildings and works Laboratory (LNBTP) for thegeotechnical control of works.

III. PROJECT IMPLEMENTATION

3.1 Loan Effectiveness and Start-up of Project

3.1.1 The loan was subject to the following two conditions:

A. Condition precedent to entry into force. Prior to entry into force, the Governmentshall have undertaken to make annual budgetary allocations up to the amountnecessary for the maintenance of the project road after its commissioning.

B. Other condition. The Government shall in addition pursue traffic count on theTaparko-Bilanga-Fada N'Gourma-Tindangou road.

3.1.2 The loan agreement was signed in July 1992, i.e. nearly one year after loan approval. Inactual fact, the rule now in force did not exist then; therefore, countries preferred in general tostart the project activities before signature of the loan agreement.

3.1.3 On the other hand, the loan entered rapidly into force (October 1992), i.e. four (4)months after the loan agreement signature. This rapid fulfilment of the terms and conditions isexplained by the fact that the commitments were simple and the Government had acquiredrelevant project implementation experience.

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3.2 Modifications

In addition to the components envisaged at appraisal as described in paragraph 2.3,under the project, a study was conducted and an improved earth road of 58 km (Tandyari-Gayéri) linking Gayéri town to the project road was constructed. These supplementary workswere executed with the agreement of the Bank and helped open up a large agricultural andpastoral area without an overrun of the initial financial package. The favourable impact of thedevaluation of the CFA franc on the local currency component contributed in part to finalize thefinancing of the said works. There was no cost overrun of the financial package estimated atproject appraisal.

3.3 Project Implementation Schedule

3.3.1 According to appraisal report estimates, the project was to be implemented over 20months, i.e. from August 1990 to April 1992. In reality, project implementation took 44months, from October 1992 to June 1996, including the time for executing the supplementaryworks of the Tandyari-Gayéri section. The late start in relation to appraisal was primarily owingto the approval of the project by the ADF Board in August 1991 instead of August 1990. Theimplementation schedule should have been updated before the project was presented to theBoard. However, the actual implementation time based on the approval date is 32 months.

3.3.2 Moreover, during the implementation period, the implementation deadline waspostponed several times. These extensions of the contract period were imposed by theimplementing agency, as authorized by the procurement code, because of additional studies, badweather and supplementary works.

3.4 Procurement of Works and Services

3.4.1 The procurement of the works and services of the consultant in charge of supervising theinitial project was through international competitive bidding on the basis of a short list, inkeeping with ADF rules; the Bank had to approve the bidding documents, the bids analysisreports and the contracts. On the other hand, the geotechnical supervision contract was awardedby negotiated contract, in view of the local statutory provisions, which compel contracts to usethe services of the national public buildings and works Laboratory (LNBTP).The appraisal team went through this provision and made a recommendation to this effect in theappraisal report, recommendation by the way resumed in the loan agreement.

3.4.2 With regard to the supplementary works and the corresponding supervision and LNBTPservices, their procurements were the subject of amendments to the initial contracts. Thisprocurement method is acceptable vis-à-vis the ADF rules and all the amendments were madein accordance with the procedures in force during the period under review (between 1992 and1996).

3.5 Project Cost

3.5.1 At appraisal, the project cost was estimated at CFA.F 4,811 million, whichcorresponded at the time to UA 12.65 million; it is broken down as follows:

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Table 3.1Estimated project cost at appraisal

ComponentsIn million CFA.F In million UA

F.E. L.C. Total F.E. L.C. Total

A. Works 2 626 1 125 3 751 6.92 2.96 9.88B. Works inspection andcontrol 252 28 280 0.66 0.07 0.73C. Geotechnical control 72 8 80 0.19 0.02 0.21

Base cost 2.950 1 161 4 111 7.77 3.05 10.82Physical contingencies 295 116 411 0.77 0.30 1.07Price escalation 207 82 289 0.54 0.22 0.76Grand total 3 452 1 359 4 811 9.08 3.57 12.65

(%) (71.74) (28.26) (100) (71.74) (28.26) (100)

3.5.2 The actual project cost is CFA.F 6,533,880,622, or UA 12.59 million at the Bank’saverage disbursement rate (1 UA = 519.175 CFA.F). The breakdown of this cost is given in thetable below.

Table 3.2Actual project cost

ComponentsMillion CFA.F

TotalMillion UA

TotalF.E. L.C. F.E. L.C.

Road worksGeotechnical controlWorks supervision andmonitoringBase costPhysical contingenciesPrice escalation (update)

Total

4,008,788,111430,798,722127,599,622

4,567,186,45585,099,748

1,003,597,024

5,655,883,227

492,898,538--

492,898,53810,519,548374,579,308

877,997,395

4,501,686,649430,798,722127,599,622

5,060,084,99395,619,296

1,378,176,333

6,533,880,622

7.730.830.258.810.141.94

10.89

0.95--0.95

0.020.73

1.70

8.680.830.259.760.162.67

12.59

3.6 Financing Plan and Loan Disbursement

3.6.1 In accordance with the appraisal report and the loan agreement, the project was jointlyfinanced by ADF (90.4 %) and the Government (9.5%). The actual financing plan as presentedbelow is very close to that projected at appraisal and shows that the Government honouredindeed its obligations regarding the national contribution.

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Table 3.3Actual project cost(in million CFA.F)

COMPONENTS ADF GOVERNMENT TOTALRoad works 5,093,826,241 626,360,442 5,720,186,683Geotechnical control 154,218,638 - 154,218,638Works control 659,475,301 - 659,475,301

5,907,520,180 626,340,442 6,533,880,622

3.6.2 The financing plan below (table 3.4) shows that loan disbursement was three monthsbehind schedule. This slippage was owing to the late start-up of works as indicated inparagraph 3.3.2 During actual implementation, the disbursement ratio kept pace with the levelof work status, disbursements were therefore made as the project progressed. On the whole, UA11,378,680 were disbursed, representing a disbursement ratio of 99.95 %; the balance of UA5,523 was cancelled. All the bills submitted by the Contractor, the Engineering Consultant andthe Laboratory were honoured as at 16/04/97 - the actual last disbursement date. However, inJune1998, during the project completion mission, the LNBTP which provided the geotechnicalcontrol services, informed the executing agency (la DCCT) that its account showed an averagepaid amount of CFA.F 8,617,365 in relation to the total amount of its balance due. The loanhaving been exhausted, the Government should pay this amount.

Table 3.4Project disbursement

(in million UA)

YEARS PROJECTIONS OUTPUT GAPS

1991 6.94 - -6.94

1992 4.44 1.10 -3.34

1993 - 6.23 +6.23

1994 - 0.91 +0.91

1995 - 1.63 +1.63

1996 - 1.47 +1.47

1997 - 0.04 +0.04

Total 11.38 11.38 -0.01

4. PROJECT PERFORMANCE

4.1 Operational Performance

4.1.1 The principal physical achievements of the project, namely an ordinary earth road, threesubmersible inverts, two road dams and road signs, comply with the project design as atappraisal. These outputs therefore correspond to the features summed up below:

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i) the road layout was considerably improved, valley crossings and flood-pronedepressions are therefore limited;

ii) the road structure, comprising a laterite sand wearing course 20 cm thick aftercompaction, is well designed to bear the expected traffic volume;

iii) the layout and the roadway correspond to the design speed of 80 km/h;

iv) the two road-dykes are constructed in accordance with the established standardscomprising, among others, concrete invert spillway gates, whose sill is raised by50 cm. This offers a dual advantage: accelerate the water on the invert andincrease security against the possible fall of vehicles into the dam;

v) the road signs are put at sensitive points, namely the entrances and exits of thevillages crossed, as well as at the approach of singular points; they are visibleday and night.

4.1.2 All in all, the physical achievements have reached the expected performance level. Thecharacteristics of the road have even exceeded projections. The only gaps noted are of twokinds: lack of balustrades and inadequate signalling on the two road dams. This makes crossingdifficult for pedestrians and motorcyclists during the rainy seasons and flood periods.

4.2. Institutional Performance

4.2.1 The executing agency envisaged at appraisal was the General Directorate of PublicWorks (DGTP) under the direct supervision of the Ministry of Equipment. But duringimplementation, the Ministry was restructured with as pause sign the establishment of theDirectorate of Central Works Control (DCCT) that became the executing agency under the samesupervising Ministry, which changed its name and became the Ministry of Infrastructure,Housing and Town Planning.

4.2.2 These institutional changes proved favourable to the implementation of the project, Ineffect, from its establishment, the DCCT adopted an organization chart comprising a Roads andConstructive Arts Department equipped with a qualified technical staff and adequate logisticalfacilities. All these enable the DCCT to assume with satisfaction its task as the delegatedproject implementing agency. In particular, it accomplished the following tasks without anymajor problem: i) the preparation, launching and analysis of bids; ii) coordination of theactivities of the various parties involved in the technical and financial implementation of theproject, namely the supervising Ministry, the successful contractor, the consulting firm in chargeof works supervision and control and the ADF; iii) the monitoring of works execution andcontrol services; and iv) the preparation of the Borrower’s completion report.

4.2.3 It should also be underlined that only four months after the loan signature, the BurkinabéGovernment fulfilled the two loan conditions (see section 3.1).

4.2.4 The priority attached to the project by both the Government and the local authoritieswho are the spokesperson of the populations concerned, contributed among others to speed upthe entry into force of the loan.

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4.3 Performance of the Contractor and the Consultant

Performance of the Contractor

4.3.1 As the implementation and inspection reports of the PCR mission show, the workdone by the contractor was of quite a satisfactory quality with regard to the road works of themain Bilanga-Fada section upgraded into an ordinary earth road (76.44 km), the Tandiery-Yanmba section transformed into an improved earth road (58 km) and the two road-dykes of1671 ml and 1075 ml respectively. In addition, the contractor respected the deadlines, thanks tothe provision of the necessary equipment coupled with an adequate and qualified staff. Overall,the services of the contractor are deemed satisfactory.

Performance of the Engineering Consultant and the LNBTP

4.3.2 The Engineering Consultant, thanks to the quality and relevant local experience of hisworkers, provided services highly appreciated by the Government and the contractor. Heregularly provided periodic reports and, at the end of his mission, submitted a comprehensivecompletion report on the monitoring of the project life. It is, however, regrettable that therewere inadequate safety measures for the users along the dykes owing to the incompletesignalling of these dykes. The Engineering Consultant should have noted these shortcomingsand proposed solutions to them. The LNBTP performed its contract of providing geotechnicalcontrol services efficiently and diligently, and consequently to the satisfaction of the consultantin charge of works supervision and control.

4.4 Economic Performance

General

4.4.1 As at appraisal, the economic rate of return determined on the basis of traffic observedand projected, profits on the vehicle operating cost and the road maintenance cost shed light onthe economic performance of the project. But contrary to appraisal, the net agricultural valueadded (NVA) is not included in the economic rate of return (ERR). Instead, account is taken ofthe induced traffic for all the categories of vehicles considered.

Traffic observed and projected

4.4.2 The average traffic observed on the road from 1996 (year of commissioning) to 1998 isestimated at 50 vehicles/day as against fewer than 6 vehicles in the five years precedingappraisal, and 35 vehicles/day, including about 88 % of diverted and induced traffic accordingto the basic data contained in the appraisal report. In view of this first traffic trend and given therelatively small size of the development programme planned in the project area, it is unlikelythat the traffic projections at appraisal will be achieved in the end, i.e. around 2010, whichcorresponds to the end of the project economic life fixed at 15 years. However, thanks to theproject, the present traffic on the road represents more than 8 times the traffic estimated in the“without project” situation.

4.4.3 Furthermore, on the basis of the traffic volumes recorded, i.e. 51 vehicles/day in 1996,44 in 1997 and 54 in 1998, a 2.9 % increase per annum is noted, irrespective of the categories ofvehicles. This rate is very close to the national average on the earth roads, which stands at about

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3 %, but far from the estimated rate of 5 % per annum fixed at appraisal. These trends showthat the road is part of the averagely busy road network. Therefore, the traffic growth rateprojected on completion, up to 2010, is the national average rate of 3 % on the network ofordinary earth roads. The resultant traffic projection is given in Annex 4.

Costs, Benefits and Economic Rates of Return at Re-appraisal

Costs and Economic Benefits

4.4.4 The actual economic investment cost, including the Tanderi-Cayérie transversal road,amounts to CFA.F 6.53 million. The economic benefits used for the calculation of theeconomic rate of return are the same as at appraisal, with the exception of the net agriculturalvalue added (NVA), namely reduction of the vehicle operating cost and the road maintenancecost.

Economic Rate of Return (ERR)

4.4.5 The ERR resulting from the actual re-estimated costs of benefits stands at 10.34 %compared to 10.83 % at appraisal. The gap noted, narrow though, stems from two majorfactors: i) the NVA, classified in the category of “external savings”, was not taken into accountat re-appraisal and ii) the diverted traffic was over-estimated at appraisal.

5. SOCIO-ECONOMIC AND ENVIRONMENTAL IMPACT

5.1 Social Impact

5.1.1 In the project area, there has been renewed interest in artisanal fishing and fish farmingactivities since the provisional acceptance of the dam structures. As a result of a more rationaland better-supervised organization, a new class of fishermen is gradually emerging in the area.At present, it comprises five groups of fishermen mainly from the Nalongou, Tampiéni, Serba,Tangayé and Sidi Koan Penga camps. Each group has five canoes, a weighing centre andmiscellaneous equipment.

5.1.2 This outfit enabled the groups to realize 43689 kg of fish products in 1997, for a marketvalue of roughly CFA.F 20 million. This first result, poor though, is highly encouraging for themembers of the groups, who will henceforth be able to improve their average income andconsequently their living standard considered very low in the “without project” situation.Prospects of additional profits are bright for the groups in that they have obtained guidance bythe services in charge of the environment and access to micro-credit.

5.1.3 The road-dykes complex is also becoming a centre of attraction for agro-pastoralactivities in which the majority of the population is engaged and which constitute its mainsource of income. Cotton farming, which was almost non-existent in the area before theimplementation of the project, is since 1996 one of the cash products; production in 1996 – theexperimental phase – was 10 tonnes. Finally, the local authorities are exploring with the watersupply company the possibility of making the dykes a source of drinking water supply for thesurrounding population.

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5.2 Environmental Impact

5.2.1 No environmental impact assessment was made on the project, either during thepreparation phase or after project implementation, for the dyke structures. Therefore, theenvironmental impacts cannot be assessed on the basis of well-established data.

5.2.2 Nonetheless, concerning the road itself and its transversal road, it has been observed thatthere are limited negative impacts on the borrowing areas and the plant cover: on the one hand,the borrowing of materials did not give rise to significant land degradation and, on the other, thegiant trees located in the right-of-way of the road were spared following the straightening of thelayout. Moreover, the drainage structures constructed enable a better drainage of the rainwater.The results of an in-depth environmental impact assessment are necessary to know the natureand scale of the negative impacts of the dam-road structures whose socio-economic benefits aremultiple as summarized in sections 4.4 and 5.1 above.

6. SUSTAINABILITY

6.1 The design and quality standards of the works executed ensure the good holding of theroad in time and its close match with the current traffic; moreover, the width of the roadincluding the shoulders, as well as the design of the structures guarantee its gradualimprovement under economic conditions. Furthermore, since completion, the road and itsrelated structures have been normally maintained under the national system. In view of thesubstantial increase in the annual road maintenance budgets and of the country’s commitmentsto the donors, this maintenance should be permanent.

6.2 However, steps should be taken to ensure the maintenance of the road-dykes; in effect,given their nature (special irrigation structure), the Directorate of Public Works does not havethe expertise and resources to supervise, operate and maintain them. Therefore, an agreementshould be reached with the Ministry of Natural Resources for their management through itsDepartment of Dams. In this respect, preliminary discussions are planned between theGovernment bodies concerned in order to grasp the issue.

7. PERFORMANCE OF THE BANK AND THE BORROWER

7.1 Performance of the Bank

7.1.1 The Bank played an appreciable role in the preparation and implementation of theproject. First of all, the Bank made a deep analysis of the engineering and economic studies,whose results contributed to the implementation of well-designed project that meets the currentand estimated transport demand in the area of influence as defined in the appraisal report. Then,two supervision missions were carried out during implementation; they were strengthened bythe regular monitoring of the works through 30 monthly reports transmitted to the Bank by theexecuting agency. However, the number of missions carried out is below the average required,i.e. three or four missions depending on the project implementation period. Finally, thanks to thesupervision missions and monthly reports, the Bank was able to react in time to the technicaland financial problems that arose during project implementation, notably the modifications tothe project (study and construction of a transversal road) and the supplementary studiesnecessitated by the construction of the two road-dams.

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7.1.2 The major shortcoming noted in the performance of the Bank was the absence of anenvironmental impact assessment on the project of which the most sensitive environmentalcomponent is the two water reservoir dams. Nonetheless, after completion of the project, theBank recommended to the Government to undertake this study in order to determine the actualand predictable environmental impacts and to implement the appropriate corrective measures.The Bank shall therefore ensure the conduct of this study as soon as possible and the actualimplementation of the mitigating measures which will have been selected in concert with theBank.

7.2 Performance of the Borrower

7.2.1 The preparation phase was satisfactorily carried out by the Government. It concerns inparticular the conduct of the engineering and economic studies required, exchange of views onthe initial design and the necessary modifications. The monitoring of the technical and financialimplementation by the borrower did not show any major gaps, thanks to the experience acquiredby the executing agency in the implementation of projects.

7.2.2 Like the Bank, the Government did not give the environmental component all theattention it required, notably concerning the two road-dams, despite the relevant experienceacquired in this field in a country, which has a relatively dense national network of dams. Therewas also some delay in the preparation of the borrower’s completion report owing mainly to theexecuting agency’s lack of experience in the area. As a result, the final report transmitted to theBank is unsatisfactory.

8. OVERALL PERFORMANCE

8.1 Considered under their different angles, one can conclude that the project achievementsare on the whole in keeping with the pre-established technical standards. The respectiveperformances of the various parties involved, namely the Government, the Bank, the Contractorand the Engineering Consultant are on the whole satisfactory. Each party therefore played hisrole to the maximum. The Government and the Bank, in particular, coordinated their actionsquite well, thereby preventing the project from registering additional delays as was the case inthe works start-up phase.

8.2 This slippage was the only factor of significant poor performance noted in relation to allthe project activities. However, it did not have a negative impact on the total estimated cost.The bid prices obtained made it possible indeed to implement the whole basic project and atransversal road of 58 km within the financial package projected at appraisal.

9. LESSONS, CONCLUSIONS AND RECOMMENDATIONS

Lessons

The first lesson is drawn from the review of the project preparation phase. It showsthat a thorough preparation by the borrower in close collaboration with the donor is adeterminant factor to ensure the implementation of a project without major technical andfinancial slippage.

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The operation also shows that an integrated road-dyke project, particularly adapted to semi-aridregions like Burkina, has a magnifying effect on the economic and social benefits. We also notethat signalling, which is an important component of road safety, is often under-estimated duringthe design of earth road projects and is generally little considered or not at all. The Bank shouldtherefore take this concern into account in its operations in the sector.

9.1 Conclusions

9.1.1 The project has made possible the construction not only of the Bilanga-Fada Ngourmaearth road of 76.44 km initially planned, but also of the Yanmba-Tandyéri earth road (58 km)and two dykes along the layout of the Bilanga-Fada Ngourma section. The quality of thestructures constructed is satisfactory and their performance three years after completion does notcall for any particular remark.

9.1.2 The economic rate of return re-estimated on the basis of the actual investment cost andthe earliest traffic trends stands at 10.34 %. This rate, which is close to that at appraisal (10.83%), confirms the economic viability of the project. Other socio-economic benefits not takeninto account in the ERR, such as time gain, agricultural and fishing valued added, are alreadyperceptible in the direct area of influence of the project.

9.2 Recommendations

In view of the above, it is recommended to the Government to:

i) pursue regular maintenance of and road counts on, the Bilanga-Fada Ngourmaroad and the Andiéri-Yanmba-Gayéri transversal road;

ii) strengthen the safety measures (signalling, bridge rails and cleaning) of the tworoad-dykes;

iii) entrust the management of the dykes and dams to an appropriate body andinform the Bank thereof.

iv) have two dykes constructed on the Bilanga-Fada road under the environmentalimpact assessment.

ANNEX 1

ANNEX 2BURKINA FASO

BILANGA-FADA N’GOURMA ROAD PROJECTPROJECT AREA OF INFLUENCE

ANNEX 4

BURKINA FASOBILANGA-FADA NGOURMA ROAD PROJECT

TRAFFIC OBSERVED AND PROJECTED(vehicles/day)

1. Traffic observed

Private Light HeavyYear vehicles truck truck Total

1996 23 12 16 511997 24 14 9 471998 27 17 10 54

2. Traffic projected

. Basic traffic = 1996 traffic

. Growth rate = 3 % per annum

3. Economic calculations based on the HDM.3 model

ANNEX 5BURKINA FASO

BILANGA-FADA GOURMA ROAD PROJECTProject Completion Report

PROJECT PERFORMANCES

INDICATORS MarksA. Project status

1. Compliance with the conditions precedent……………………………………………………

2. Compliance with the generalconditions………………………………………………………………

3. Compliance with otherconditions………………………………………………………………….

221

B. Procurement performance

1. Procurement ofservices…………………………………………………………………………

2. Procurement ofgoods…………………………………………………………………………….

22

C. Financial performance

1. Availability of foreignexchange………………………………………………………………………..

2. Availability of local currency………………………………………………………………3. Disbursement flow………………………………………………………………………….4. Cost

management……………………………………………………………………………….5. Performance of the co-

financiers………………………………………………………………..

22122

D. Activities and output

1. Compliance with the implementationschedule…………………………………………………………..

2. Performance of theconsultant/TA………………………….…………………………………..

3. Performance of thecontractors……………………………………………………………….

4. Performance of the projectmanagement………………………………………………………

1222

E. Impact on development

1. Possibility of achievement of project objectives………..2. Possibility of keeping the benefits beyond the project investment phase3. Possibility of project contribution to institutional capacity strengthening4. Rate of return………………………………………………………………………………

1222

F. Overall appraisal

1. Current………………………………………………………………………………………….

2. TrendFuture…………………………………………………………………………………

1.82.0

Code :

3 = Very satisfactory2 = Satisfactory, some problems, the Bank should monitor1 = Unsatisfactory, problems, the Bank should closely monitor, immediate action notrequired

0 = Very unsatisfactory, serious problems, Bank’s action not required

ANNEX 6

MATRIX OF RECOMMENDATIONS AND MONITORING ACTIONS

PRINCIPAL OBSERVATION ANDCONCLUSIONS

RECOMMENDATIONS MONTIORING ACTIONS RESPONSIBILITY

1. Absence of environmental impactassessment.

1 To correct the environmentalshortcoming of the of the project: i)carry out, as soon as possible, anenvironmental impact assessment of theproject in general and the road-dykes inparticular; ii) implement the appropriatecorrective and preventive measures.

1. Inform ADF of the findings ofthe study and the steps taken toimplement them.

1. Government of Burkina Faso

2. Inadequate road signalling 2. Supplement the safety system byconstructing balustrades in theimmersible part of the road-dams andputting traffic signs on the right ofthese dams.

2 Provide ADF with proof of theconstruction of thesupplementary safety devices(documents relating to thesupply and installation ofthe targeted safety devices)

2. Government of Burkina Faso.