AFRICAN DEVELOPMENT FUND

PROJECT : FEASIBILITY STUDY ON THE EXTENSION OF

THE CAMEROON–CHAD RAILWAY LINE

COUNTRY: MULTINATIONAL: CAMEROON-CHAD

APPRAISAL REPORT

PICU/RDGC DEPARTMENTS

November 2017

Translated Document

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TABLE OF CONTENTS

PROJECT INFORMATION SHEET................................................................................................. i

PROJECT SUMMARY ................................................................................................................... iv

PROJECT IMPLEMENTATION SCHEDULE ............................................................................. vii

I – STRATEGIC THRUST AND RATIONALE ................................................................................. 1

1.1. Project Linkages with Country Strategy and Objectives .................................................. 1

1.2. Rationale for Bank Involvement ....................................................................................... 2

1.3. Aid Coordination ............................................................................................................... 2

II – DESCRIPTION OF THE STUDY PROJECT ............................................................................... 3

2.1. Objectives and Components of the Study ......................................................................... 3

2.2. Technical Solutions Adopted and Alternative Solutions Considered ............................... 5

2.3. Type of Study .................................................................................................................... 6

2.4. Project Cost and Financing Mechanisms: ......................................................................... 6

2.5. Study Area ......................................................................................................................... 7

2.6. Participatory Approach to the Identification, Design and Implementation of the Study .. 7

2.7. Bank Group Experience and Lessons Reflected in Project Design. ................................. 7

2.8. Key Performance Indicators .............................................................................................. 8

III. PROJECT FEASIBILITY ............................................................................................................... 8

3.1. Economic Feasibility……………………………………………………………………..8

3.2. Environmental, Social and Gender Impact ....................................................................... 8

IV- IMPLEMENTATION ..................................................................................................................... 8

4.1. Implementation Arrangements .......................................................................................... 8

4.2. Procurement Arrangements ............................................................................................. 10

4.3. Financial Management and Disbursement Arrangements………………………………10

4.4. Monitoring and Evaluation .............................................................................................. 11

4.5. Governance ...................................................................................................................... 12

4.6. Sustainability ................................................................................................................... 13

4.7. Risk Management ............................................................................................................ 13

4.8. Knowledge Development ................................................................................................ 13

V – LEGAL FRAMEWORK .............................................................................................................. 13

5.1. Legal Instrument ............................................................................................................. 13

5.2. Conditions Associated with the Bank’s Intervention ..................................................... 13

5.3. Conformity with Bank policies ....................................................................................... 14

VI – RECOMMENDATION .............................................................................................................. 14

LIST OF TABLES AND GRAPHS

NO. TITLE Page

Table 2-1 - Components and Costs of the Study Project .................................................. 4

Table 2-2 - Estimated Costs by Component (in UA million) ........................................... 6

Table 2-3 - Summary of Costs per Expenditure Category (in UA million) ...................... 6

Table 2-4 - Summary of Costs per Components per Country (in UA million) ................ 6

Table 2-5 - Summary of project by financing Source (in UA million) ............................. 7

Table 2-6 - Expenditure schedule by financing source (in UA million) ........................... 7

Table 4-1 - Monitoring and Supervision of the Study .................................................... 12

LIST OF ANNEXES

Annex I. Comparative Socioeconomic Indicators of Cameroon

Annex II. Comparative Socioeconomic Indicators of Chad

Annex III. Table of Bank Operations in Cameroon as of 30 September 2017

Annex IV. Table of Bank Operations in Chad as of 30 September 2017

Annex V. Map of the Project Area

CURRENCY EQUIVALENTS

September 2017

UA 1 = USD 1.413

UA 1 = 1.195

UA 1 = CFAF 784.039

Fiscal Year From 1 January to 31 December

Weights and Measures

1 metric ton = 2204 pounds

1 kilogramme (kg) = 2,200

1 metre (m) = 3.28 feet

1 millimetre (mm) = 0.03937 inch

1 kilometre (km) = 0.62 mile

1 hectare (ha) = 2.471 acres

Km² = square kilometre

m3 = cubic metre

m² = square metre

ml = linear metre

Mm3 = million cubic metres

m3/h = cubic metre per hour

l/s = litre per second

l/inhab/d = litre per inhabitant per day

i

ACRONYMS AND ABBREVIATIONS

ADF : African Development Fund

AfDB : African Development Bank

BGFT : Overland Freight Management Office (Cameroon)

BNF : National Freight Office (Chad)

CEMAC : Central African Economic and Monetary Community

CFAF : Franc of the Communauté financière d’Afrique

COMMIFER : Chad-Cameroon Railway Commission

DTT/SE-CEMAC : Directorate for Transport and Telecommunications

GUCE : One-stop Service for External Trade

ICB : International competitive bidding

IDA : International Development Association

MINT : Ministry of Transport in Cameroon

MINTP : Ministry of Public Works in Cameroon

MITAC : Ministry of Infrastructure, Transport and Civil Aviation (MITAC) of Chad

NCB : National competitive bidding

NEPAD : New Partnership for Africa’s Development

ONCF : National Railway Authority of Chad

PAD : Douala Autonomous Port

PDCT-AC : Central African Consensual Transport Master Plan

PIDA : Programme for Infrastructure Development in Africa

REC : Regional Economic Community

ii

PROJECT INFORMATION SHEET

1. COUNTRY : Cameroon/Chad

2. TITLE OF STUDY : Feasibility Study on the Extension of the Cameroon– Chad Railway Line

3. STUDY AREA : Cameroon, Chad 4. DONEES : Governments of Cameroon and Chad

5. BORROWER : Cameroon/Chad 6. EXECUTING AGENCIES : For monitoring at the regional level:

i). Steering and Monitoring Committee of the Study

ii). Management Unit of Study

iii). Ministry of Transport in Cameroon

For monitoring at the national level:

i). Cameroon: Ministry of Transport (MINT) /

Directorate for Railway Transport

ii). Chad: Ministry of Infrastructure and Territorial

Access /National Directorate for Railway Transport

Service

Financing Plan

Source Amount (UA

million)

Instrument

Cameroon ADF 2.000 Loan

Chad ADF 2.000 Grant

TOTAL COST 4.000

iii

7. Key ADF Financial Information – Blend Country Loan Conditions

Loan/Grant currency Unit of Account (UA)

Type of interest 1%

Interest rate margin Not applicable

Service commission 0.75% per year of the disbursed loan amount not reimbursed

Commitment fee 0.5% of the loan amount not disbursed 120 days after

signature of the Loan Agreement

Other fees Not applicable

Maturity Up to 30 years

Grace period Up to 5 years

FRR, NPV (baseline scenario) Not Applicable

ERR, NPV (baseline scenario): Not Applicable

8. Important Financial Information on the ADF Grant

Loan/Grant currency Unit of Account (UA)

Type of interest NA

Interest rate margin NA

Service commission on ADF loan NA

Commitment fee on ADF loans NA

Other fees Not applicable

ADF loan maturity NA Grace period and reimbursement of ADF

loans

NA

FRR, NPV (baseline scenario) Not Applicable

ERR, NPV (baseline scenario): Not Applicable

9. Timeframe – Main Milestones (expected)

Approval of the concept note

November 2016

Project approval November 2017

Effectiveness April 2018

Last disbursement 2021

Completion 2021

Final Repayment 2050

iv

PROJECT SUMMARY

General Overview of Project

The goal of this project is to conduct a study on the railway between Ngaoundéré and N’Djamena, with

a view to establishing the socioeconomic viability of the railway line and determining the best technical

and economic solution that is consistent with the institutional, social and environmental context.

Integrating the networks of both countries is crucial, for this would facilitate the establishment of

common and coherent platforms for the various modes of transport. It also ensures more inter-

connectivity, greater mobility of the factors of production and varied trade flows that would lead to the

institution of real integration. Hence, in December 2011, both countries decided to complete the Douala

- N'Djamena railway corridor by developing the segment linking Ngaoundéré in Cameroon to

N'Djamena, the capital of Chad. The Ngaoundéré-N’Djamena railway interconnection project will

therefore complete the multimodal transport link between the two countries. Indeed, almost all of

Chad’s imports and exports are transported by road along the Douala - N'Djamena corridor.

The study will be conducted over a period of 36 months for an estimated total cost of UA 4 million,

including activities related to the provision of technical assistance and the operation of management

bodies. It is financed entirely with ADF resources.

Needs Assessment

In recent years, road network improvements in Chad have focused on internal roads and those that open

up external access to the national territory. However, being a landlocked country, Chad has to deal with

the deteriorated roads used to transport its supplies and exports. Consequently, it is crucial for the

country to develop other modes of transport to mitigate the impact of its landlockedness and high

transport costs on national economic competitiveness. Accordingly, the National Transport Strategy

(SNT) adopted in 2012 provides for the construction of the N’Djamena (Chad) – Ngaoundéré

(Cameroon) railway line, as one of the transport integration projects identified under the Regional

Transport Infrastructure Development Programme of CEMAC and the Central African Consensual

Transport Master Plan.

In Cameroon, the strategic option for the railway sub-sector is to improve the state of the current

network in the short-term. However, in the long term, the network will be extended to the main farming

areas, while addressing the need for integration with the countries of the sub-region.

In terms of regional integration, the project targeted by this study will enhance transit performance

between Cameroon and Chad, as well as the transport system between the northern and southern parts of

these countries, while boosting transport facilitation, trade and transit within the region.

The Ngaoundéré (Cameroon)-N'Djamena (Chad) railway study is justified by the volume of trade between

the two countries, valued at an average of CFAF 203.4 billion per year, since 2008. Indeed, the Douala

port is currently Chad’s main maritime entry point. Consequently, almost all of Chad's external trade

transits through Douala port, with goods transported to N'Djamena via Yaounde and Ngaoundéré. This

generates huge traffic flows along the highways of Cameroon and Chad that contribute to road

deterioration. The project railroad will ease up the pressure on the road network and eliminate the frequent

unloading and reloading at the many legal and illegal checkpoints that await transporters. These negative

factors push up transport costs and ultimately the cost of goods transported to N’Djamena.

v

Lastly, construction of the Ngaoundéré - N’Djamena railway line will contribute to the green growth of

both countries by expanding the volume of trade transacted through railway transport which, unlike road

transport, is a less polluting mode of transport.

Target Beneficiaries

The expected economic benefits are: (i) a general reduction in transport costs for travellers; and (ii) the

reduction of transport costs and waiting periods for goods, as well as protection of the road network

from wear and tear resulting from vehicle overload.

Comparative Advantage and Value-added of the Bank

The study is consistent with the growth and development strategies of both countries which underscore

the importance of founding long-term economic growth on infrastructure improvement and investment

climate. The project is consistent with Chad’s National Development Plan (NDP) 2017-2021 and CSP

2015-2020 well as Cameroon’s Growth and Employment Strategy Paper (GESP: 2009-2020) and CSP

(2015-2020) of. It is also consistent with the Long-Term Strategy 2013-2022 (LTS) of the Bank which

gives priority to regional infrastructure and tallies with two major pillars of the High 5 priorities,

namely to integrate Africa and improve the living conditions of people on the continent. By supporting

this study, the ADF will boost investments through the private sector with a view to achieving the level

of transport services needed to fuel economic growth and curb poverty; it will also share the knowledge

acquired from previous experience in other member countries.

Knowledge Development

The study will facilitate knowledge transfer to the engineers of the two ministries responsible for the

project in both countries. Capacity building activities for the staff in the National Railway Authority of

Chad, the Directorate for Railway Transport, the Railway Commission, the Steering and Monitoring

Committee of the Study and the other government services of the beneficiary countries will facilitate

the organization of specialized training on railroads and public-private partnerships (PPPs).

vi

RESULTS-BASED LOGICAL FRAMEWORK OF THE PROJECT

Country and Project Title: Feasibility Study on the Development of the Chad -Cameroon Railway Line.

Project Goal: Conduct the technical, economic, financial, legal, environmental and social studies needed to determine the feasibility of building and operating a railway line

between Ngaoundéré and N’Djamena.

b) Results Chain PERFORMANCE INDICATORS MEANS OF

VERIFICATI

ON

RISKS/

MITIGATION

MEASURES Indicator (including ISCs) Baseline

Situation

Target

IMP

AC

T

Contribute to the execution of an

efficient and economical community

railway transport project to foster regional economic integration

Volume of trade between

Cameroon and Chad

15% in 2016 20% in 2030 Sources: ECCAS and

CEMAC activity reports

on the intra-

community trade and

statistics

prepared by both countries,

ECCAS and

CEMAC

OU

TP

UT

S

Level of knowledge on the viability of the project improved

Study reports and consultancy documents on the project available

2016: No reports

2020:

Availability of various study

reports

Reports of the Executing Units

Risk: Stability of the

security climate in the

project region

Mitigation Measures:

Reinforcement of the

military arrangements

in the area

Capacity building provided in railway project management and PPPs

Training programme on PPPs provided

2016: No training

programme on

PPPs

2020: Availability and

monitoring of a

training programme on

PPPs

Reports of the Executing Units

OU

TC

OM

ES

Output 1: Feasibility study conducted Complete feasibility study report

(technical, economic, institutional,

logistical and financial aspects)

prepared and validated

0 in 2016

1 in 2020 Study reports

Feedback

workshop reports

Risk: Capacity of both

countries to monitor

and coordinate the

study

Mitigation Measures: Establishment and

strengthening of the

joint railway commission and

recruitment of technical

assistance

Output 2: The regional railway line development project is designed

Project document based on

feasibility studies is prepared and validated

0 in 2016 1 in 2020

Project document

Output 3: Technical assistance

established

Reinforcement of the Project Unit

monitoring mechanism

Assistance to the operationalization

of the Railway Authority of Chad

Assistance to the Directorate for

Railway Transport in Cameroon

2016: No

technical

assistance

2020: Technical

assistance

established at project

commencement

and operational

Progress report

from Project

Unit Progress report

from technical

assistance

Output 4: Training in project

management and PPPs

Number of experts trained from

both countries

2016: No

training

2020: At least

10 experts per

country trained

on PPPs

Progress report

from Project

Unit

Training report

COMPONENTS RESOURCES

Component 1: Studies: Consultancy services Component 1: 2.7

Component 2: Technical assistance and capacity building: Monitoring of study, review of

progress reports, preparation of feedback workshops, capacity building and training Component 2: 0.46

Component 3: Project management Establishment and functioning of coordination team;

equipment and logistics; follow-up meetings

Component 3: 0.40

vii

PROJECT IMPLEMENTATION SCHEDULE

Years

Activities/month J F M A M J J A S O N D J F M A M J J A S O N D J F M A M J J A S O N D J F M A M J J A S O N D

Prior to commencement

Board Approval

Loan and grant Effectiveness

Launching of the study

Feasibility Study

Preparation and approval TORs, LR and BDs

Calls for bids for the selection of consultants

Assessment of bids and signature of contracts

Startup and execution of studies

Approval of study reports

Training, capacity building and

miscellaneous

Selection of participants

Conduct of the training

Management and monitoring of the study

Feedback workshop

Steering Committee Meeting

Audit

Auditing of accounts

20202017 2018 2019

1

REPORT AND RECOMMENDATION OF BANK GROUP MANAGEMENT TO THE

BOARD OF DIRECTORS CONCERNING A PROPOSAL TO AWARD AN ADF GRANT

OF UA 2 MILLION TO THE REPUBLIC OF CHAD AND AN ADF LOAN OF UA 2

MILLION TO THE REPUBLIC OF CAMEROON TO FINANCE THE FEASIBILITY

STUDY ON THE EXTENSION OF THE RAILWAY LINE BETWEEN CHAD AND

CAMEROON

This proposal submitted to the Board for approval relates to the award of an ADF grant of UA

2 million to the Republic of Chad and an ADF loan of UA 2 million to the Republic of

Cameroon to contribute to the financing of the feasibility study on the extension of the

railway line between Cameroon and Chad. The study will be executed over the 2018-2020

period to determine the socioeconomic viability of the railroad and identify the best economic

solution that takes account of the prevailing institutional, social and environmental context.

I. STRATEGIC THRUST AND RATIONALE

1.1. Project Linkages with Country Strategy and Objectives

Key Development Questions

1.1.1. Analysis of the current transport sector situation shows that there is insufficient

transport coordination, with each mode of transport developing separately as determined by

the economic and physical situation of each CEMAC country. The transport sector in each

country is generally dominated by road transport which is often the sole option for accessing

remote and/or hard-to-reach locations.

1.1.2. Indeed, transport sector policies and strategies do not focus much on the

development, promotion and establishment of a road-rail multimodal system to achieve

sustainable optimization of the transport system.

1.1.3. Chad, a vast country with a surface area of almost 1.284 million km2, is located in

the heart of the African continent. The country’s central position, which could be a major

asset for its economic and social development, is compounded by its low population (11.2

million inhabitants, according to the 2014 census) and persistent internal inaccessibility and

external landlockedness. It is further aggravated by the low density of the all-season road

network. The country’s external trade is mainly transacted by road (95% of freight transported

by road). Although transport infrastructure investments have been made in the past, Chad’s

road network remains limited. The proportion of paved roads within the national and regional

road network grew from 1% in 2000 to a mere 8% in 2014.

1.1.4. Over the past few years, road network improvements in Chad have focused on

internal roads and those that open up external access to the national territory. However, being

a landlocked country, Chad has to grapple with the deteriorated roads used to transport its

supplies and exports. Consequently, it is crucial for the country to develop other modes of

transport in order to mitigate the impact of its landlockedness and high transport costs on

national economic competitiveness. Accordingly, the National Transport Strategy (SNT)

adopted in 2012 provides for the construction of the N’Djamena (Chad) – Ngaoundéré

(Cameroon) railway line, as one of the transport integration projects identified under the

Regional Transport Infrastructure Development Programme of CEMAC and the Central

African Consensual Transport Master Plan.

2

1.1.5. In Cameroon, the strategic option for the railway sub-sector is to improve the state of

the current network in the short-term. However, in the long term, the network will be

extended to the main farming areas, while addressing the need for integration with the

countries of the sub-region.

1.1.6. Under the Growth and Employment Strategy Paper (GESP), the legal framework

governing railway concessions is being reviewed to allow the construction of railway

infrastructure under public-private partnership (PPP) arrangements. This option is consistent

with the transport sector strategy and the National Railway Development Plan. To that end,

the “Cameroon Vision 2035” document emphasizes the need for private sector involvement in

the implementation of large-scale backbone projects.

1.1.7. The shared vision of the two countries to build a railroad linking their respective

networks, is consistent with African Union actions to promote the interconnection of railway

networks. The decision to complete the Douala–N’Djamena railway corridor is consistent

with the First Priority Programme of the Central African Consensual Transport Master Plan

(PPP/PDCT-AC) adopted in 2007. In this regard, the Ngaoundéré-N'Djamena railway line is

part of the Central African Community Railway Network (RFC).

1.2. Rationale for Bank Involvement

1.2.1. The study is consistent with Central Africa’s Regional Integration Strategy Paper

(RISP 2011-2017), especially Pillar I on "Infrastructure Development", as well as the

guidelines of the Central African Consensual Transport Master Plan (PDCT-AC) adopted

under the aegis of the Economic Community of Central African States (ECCAS), which

attaches great importance to multinational projects that combat poverty through the

development of regional infrastructure and cooperation between its Member States. In the

short term, it seeks to facilitate movement between the capital cities of the Community. It is

consistent with Chad’s National Development Plan (NDP) 2017-2021 and CSP 2015-2020 as

well as Cameroon’s Growth and Employment Strategy Paper (GESP: 2009-2020) and CSP

(2015-2020). It is also consistent with the Bank’s Long-Term Strategy 2013-2022 (LTS)

which gives priority to regional infrastructure and tallies with two major pillars of the High 5

priorities, namely to integrate Africa and to improve the living conditions of people on the

continent.

1.2.2. The project that will result from this study is in line with NEPAD’s PIDA programme

guidelines, including the construction of backbone regional infrastructure to promote regional

integration. Lastly, the project will complement the Bank’s other operations, such as the

transport facilitation programme along the Douala-Bangui-N’Djamena Corridor, as an

alternative mode of transport.

1.3. Aid Coordination

1.3.1 In Cameroon, aid coordination and cooperation with donors at the national level is

the responsibility of the Ministry of the Economy, Planning and Regional Development

(MINEPAT). Under this ministry is the Directorate for Regional Integration (DIR) which is

the Bank’s focal point for aid coordination. As regards technical and financial partners, the

Multi-partner Committee (MPC) for monitoring the GESP is the platform for dialogue and

exchange on all key development issues in Cameroon. Apart from the Bank, the main TFPs

operating in the sector are: the World Bank, JICA, BDEAC (Development Bank of Central

African States), the French Development Agency (AFD), the European Union and IsDB

3

(Islamic Development Bank). To support this structure, technical and thematic sub-

committees focused on the alignment and harmonization agenda, are active in the transport

sub-group which meets regularly to share information on sector problems. The Bank has

served as the lead agency of the Transport Sector Committee since January 2015. It also

participates in all thematic and sectoral groups and in the dialogue missions of the IMF and

the World Bank to Cameroon.

1.3.2 In Chad, donors’ interventions are coordinated through the Technical and Financial

Partners’ Committee (TFPC) currently chaired by the International Monetary Fund (IMF)

after being chaired by the Bank for over five years. That committee comprises all partners

operating in Chad, both in technical assistance and investment financing, and works in

collaboration with the General Directorate for International Cooperation at the Ministry of

Planning, Economy and International Cooperation. It brings together the Bank, the European

Union (EU), the World Bank (WB), BDEAC, United Nations agencies, French Cooperation,

Chinese cooperation and the Arab Funds. In the transport sector specifically, a thematic group

was set up that meets every quarter under the chairmanship of the EU. The donors intervening

in the sector are: the Bank, Arab Funds, EU, WB and BDEAC. Relations between the various

partners are excellent and joint actions are often implemented.

1.3.3 During the project identification, preparation and appraisal missions, the Bank team

held discussions with these key TFPs. All the partners recognized the importance and

relevance of the project which is perfectly consistent with their operations. During the

implementation of this project, such coordination will continue through (i) coordination of the

meetings of transport sector TFPs by the Bank's field offices in Cameroon and Chad; (ii)

various joint supervision missions (Bank/EU); and (iii) stakeholder involvement in validation of

the reports of the various studies scheduled.

II. DESCRIPTION OF THE STUDY PROJECT

2.1. Objectives and Components of the Study

2.1.1. The sector objective of the study is to contribute to the implementation of an efficient

and economical community railway transport project, with a view to boosting regional

economic integration and the development of areas with high mining, industrial and

agricultural potential in Cameroon and Chad.

2.1.2. The specific objective is to conduct the technical, economic, financial, legal,

environmental and social studies necessary to determine the feasibility of building and

operating a railway line between Ngaoundéré and N’Djamena.

4

2.1.3 Components of the Study Project:

Table 2.1: Components and cost of the study project

No. Components Description Cost (UA

million)

1 Component 1: Studies: 1.1. Technical preliminary design study (PDS);

1.2. Economic study;

1.3. Legal and institutional study with a financial

component;

1.4. Environmental and social study. 2.79

2

Component 2: Technical

assistance and capacity

building:

2.1. Technical assistance to monitor and

coordinate the study:

- assistance to the management unit;

- review of progress reports;

- preparation of feedback workshops;

2.2. Support to the National Railways Authority of

Chad;

2.3. Support to the operational capacity building of

the Directorate for Railway Transport in Cameroon. 0.46

3 Component 3: Project

management

3.1. Operational support to the executing unit and

the Technical Steering Committee of the study;

3.2. Feedback and validation workshops;

3.3. Accounting and financial audits of the project. 0.40

Details of Components:

Component 1: Feasibility Study

This study will involve several technical, operational, financial, legal, social and

environmental components. It will comprise the following studies:

1. A market survey and demand forecast (MS);

2. A preliminary design study (PDS);

3. An economic and financial (ECOFIN) study which includes a business plan

model;

4. A preliminary environmental and social impact assessment (PESIA);

5. An institutional and legal study (ELS) which includes a proposal of concession

scenarios as well as a detailed road map on the steps to follow.

5

The study will develop in two stages in accordance with the following logical framework:

The study’s terms of reference feature in the annexes appended to the report.

Component 2: Technical Assistance and Capacity building

Technical Assistance (TA):

The main goal of TA is to support both States in the management of the study through

analysis and validation of progress and final reports and building of the capacity of both

States in delegated public service management and in the analysis and validation of reports

produced by the consultancy firm responsible for conducting the feasibility study. A capacity

building programme for members of the Railway Commission and government services of the

beneficiary countries will be prepared by technical assistance and implemented. The programme

will focus on specific training courses on railways and public-private partnerships (PPPs).

In Cameroon, the Ministry of Transport, which is co-supervisor of the project, has a Directorate

for Railway Transport. In 2016, a National Railway Authority (ONCF) was also set up in Chad.

The project will support the operationalization of the ONCF and capacity building for the

Directorate for Railway Transport in Cameroon.

Component 3: Project Management

This component will focus on the following points:

- Operational support to the management unit and the Technical Steering

Committee of the study;

- Feedback and validation workshops; and

- Accounting and financial audits of the project.

2.2 Technical Solutions Adopted and Alternative Solutions Considered

The technical design benchmarks and dimensional requirements of the railway are those

adopted by the International Union of Railways (UIC) and the African Union of Railways

(AUR). The principle of standard gauge and variable platform speeds of 100 to 160 KPH was

adopted.

6

2.3 Type of Project

This is an independent study that will be financed with an ADF grant to Chad and an ADF

loan to Cameroon.

2.4 Project Cost and Financing Mechanisms:

The estimated cost of the study is UA 4 million or CFAF 3.14, at the September 2017 rate of

UA 1 = CFAF 784.039 (XAF - BEAC) and is presented in the table below:

Table 2.2.: Estimated costs by component (in UA million)

COMPONENTS UA million CFAF billion

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

1. Component 1: Studies: 1,84 0,95 2,79 1,44 0,75 2,19

2. Component 2: Technical assistance

and capacity building: 0,12 0,47 0,59 0,09 0,37 0,46

3. Component 3: Project management 0,12 0,39 0,51 0,10 0,30 0,40

Baseline Cost 2,08 1,81 3,89 1,63 1,42 3,05

Physical contingencies 0,04 0,03 0,07 0,03 0,03 0,06

Financial contingencies 0,02 0,02 0,04 0,02 0,01 0,03

Total costs ETCD 2,14 1,86 4,00 1,68 1,46 3,14

Table 2.3: Summary of costs per expenditure category for the whole project

EXPENDITURE CATEGORIES UA million CFAF billion

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

1. Goods 1,99 1,53 3,52 1,56 1,20 2,76

2. Functioning 0,05 0,21 0,26 0,04 0,16 0,20

3. Services 0,04 0,06 0,11 0,03 0,05 0,08

Baseline Cost 2,08 1,81 3,89 1,63 1,42 3,05

Physical contingencies 0,04 0,03 0,07 0,03 0,03 0,06

Financial contingencies 0,02 0,02 0,04 0,02 0,01 0,03

Total costs ETCD 2,14 1,86 4,00 1,68 1,46 3,14

Table 2.4: Summary of costs per components per Country

EXPENDITURE

CATEGORIES

ADF CAMEROON ADF CHAD

CFAF billion UA million CFAF billion UA million

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

1. Studies 0,74 0,38 1,13 0,95 0,49 1,44 0,70 0,36 1,07 0,90 0,46 1,36

2.

Technical

assistance and

capacity

building: 0,00 0,00 0,00 0,00 0,00 0,00 0,09 0,37 0,46 0,12 0,47 0,59

3. Project

management 0,10 0,30 0,40 0,12 0,39 0,51 0,00 0,00 0,00 0,00 0,00 0,00

Baseline Cost 0,84 0,69 1,53 1,07 0,88 1,95 0,79 0,73 1,52 1,01 0,93 1,94

Physical contingencies

0,02 0,01 0,03 0,02 0,02 0,04 0,01 0,01 0,03 0,02 0,02 0,04

Financial

contingencies 0,01 0,01 0,02 0,01 0,01 0,02 0,01 0,01 0,02 0,01 0,01 0,02

Total costs ETCD 0,86 0,71 1,57 1,10 0,90 2,00 0,82 0,75 1,57 1,04 0,96 2,00

7

2.4.1 Financing Arrangements:

The project will be financed 100% by the ADF through the country allocations of each State.

Table 2.5: Summary of project by financing source

Designation ADF Percentage

CAMEROON 2,00 50,00%

CHAD 2,00 50,00%

TOTAL 4,00 100,00%

Table 2.6: Expenditure schedule by financing source

2.5 Study Area

In Cameroon, the project area comprises the Littoral, Centre, East, Adamawa, North and Far

North Regions, with the railway running through the towns of Ngaoundéré, Maroua, Garoua

and Kousseri. In Chad, the project covers the south and south-west region of the country,

linking N’Djamena to the border with Cameroon. In all, the study area covers a surface area

of 112.425 km2. The study area population was estimated at 6.5 million inhabitants in 2014,

representing 17% of the total population of both countries. This area has high mining potential

and contains modern socioeconomic infrastructure (hospitals, markets, schools, banks, cotton

factories) located in the urban areas and which generate traffic.

2.6 Participatory Approach to the Identification, Design and Implementation of the

Study

During consideration of this draft study, both countries signed a framework agreement

defining the practical project management arrangements and the establishment of a Chad-

Cameroon railway commission. The working sessions entailed discussing with all

stakeholders in order to (i) prepare the terms of reference of the study; (ii) define capacity

building activities; and (iii) define institutional implementation mechanisms. During conduct

of the study, this consultative approach will be maintained.

2.7 Bank Group Experience and Lessons Reflected in Project Design.

2.7.1 This draft study is informed by the Bank’s experience in the implementation of

multinational infrastructure projects whose main difficulties relate to: (i) the multiplicity of

stakeholders with generally limited technical and operational capacity; and (ii) the poor

performance of RECs in the implementation of transport facilitation components.

SOURCE

2018 2019 2020 Total

ADF CAMEROON 0,19 1,17 0,58 1,95

ADF CHAD 0,15 1,15 0,64 1,94

Baseline coast

0,35 2,31

1,23 3,89

% of baseline coast 8,97% 59,49% 31,54% 100%

8

2.7.2 To address these shortcomings, the project provides for: (i) the creation of a Steering

and Monitoring Committee (SMC) responsible for coordinating the study at the regional

level; and (ii) targeted interdisciplinary support (technical assistance) to the executing organ

and support to the AfDB-World Bank Unit of Cameroon (which has experience in

implementing and monitoring this type of project).

2.8 Key Performance Indicators

The key performance indicators and expected outcomes of the project are presented in the

results-based logical framework. These include interim reports, preliminary design studies

and training workshops. The finalized and validated reports will provide arguments for

rallying potential lenders or promoters by relying on the findings of the study. Ultimately, this

will lead to the execution of the project and achievement of the sector indicator relating to

improvement of transport conditions on this corridor.

III. PROJECT FEASIBILITY

3.1. Economic Feasibility

Economic justification is not applicable at the feasibility study stage.

3.2. Environmental, Social and Gender Impact

Environmental Impact: The railway has a clear advantage as a more environmentally-

friendly option. Under this study, environmental analysis will entail examining the impact of

project implementation on the project area at three successive stages, namely: identifying the

components of the project environment affected by project activities and taking into account

the identified challenges; analysing resulting impact and proposing attendant measures; and

lastly, preparing an environmental management plan. Project exposure to climatic risks will

also be analysed.

Impact on Gender: The terms of reference of the study provide for consideration of the

social and economic components that have a direct impact on gender. The study will examine

gender considerations, in terms of gender representation and detailed review of the situation

of women relative to the railway, and make specific gender-focused recommendations for

consideration in the project phase.

Forced Resettlement: The project is a feasibility study. Consequently, it will not lead to

community displacements.

IV. IMPLEMENTATION

4.1. Implementation Arrangements

The executing body of the study is the Technical Steering Committee set up by both

countries. This committee will play a central role in monitoring coordination and decision-

making on the study. It will:

Carry out activities that ensure the smooth conduct of the study;

Approve key stages in the award of contracts, technical assistance and account

audit as follows:

9

o Approve the procurement plan of the study;

o Validate analytical reports on expressions of interest and bid evaluations

prior to their transmission to the donor;

Approve the final terms of reference of the study;

Attend meetings and workshops scheduled under the study to approve progress

reports;

Provide an opinion on technical, institutional or legal issues binding on their

respective countries with regard to contracts financed by the Bank;

Assist consultancy firms in obtaining the data and documents available in their

respective countries, which are deemed useful for the project, and facilitate the

organization of its meetings with the countries’ institutions and experts as well

as feedback workshops.

The Technical Steering Committee will also supervise implementation through a Technical

Unit responsible for management and monitoring and based at the Ministry of Transport in

Cameroon.

4.1.1. Missions and Composition of the Technical Management Unit

A technical management unit for the study has been established within the Directorate for

Railway Transport at the Ministry of Transport in Cameroon to implement and monitor the

study on a daily basis. This unit will rely on the services of the AfDB-World Bank Projects

Monitoring Unit at MINTP in Cameroon for all fiduciary issues, working through the

Administration and Finance Officer and a procurement officer from that unit.

4.1.2. Technical Assistance

The objective of technical assistance is to build the capacities of both States to analyse and

validate the reports produced by the consultancy firms responsible for conducting the study and

assisting the project management unit with technical and administrative activities. It will

essentially be responsible for:

Studying the reports prepared by the consultancy firms tasked with the

feasibility study and preparing review reports and comments;

Actively participating in the monitoring and feedback meetings and workshops

of the study;

Providing opinions to members of the Project Management Unit and the

Steering and Monitoring Committee that enable them to take the necessary

technical decisions on the conduct of the study;

Assisting the study’s management unit in its technical and administrative

activities;

Providing training deemed relevant in domains that relate to the study; and

10

Supporting the National Directorate for Railway Transport in Cameroon and

the National Railway Authority in Chad.

The detailed terms of reference for technical assistance feature in the technical annexes

appended to the appraisal report of this project.

4.2. Procurement Arrangements

4.2.1. Goods, works and consultancy services will be procured under this project in

accordance with the “Procurement Policy and Methodology for Bank Group Funded

Operations (October 2015). More precisely, considering the multinational nature of the

project, the Bank's Standard Procurement Methods and Procedures (BPM) based on the

standard bidding documents (SBD) will be used for all procurement of goods, works and

consultancy services.

4.2.2. Scheduled Contracts: The planned procurements focus on: (i) a main firm

responsible for the study; (ii) technical assistance to the steering committee; (iii) specific

support to the structure responsible for managing the study (individual experts as

appropriate); and (iv) goods used for operational purposes. The methods below will be used

for the procurement of goods and services planned under the project.

4.2.3. Consultancy Services: The various consultants will be procured as follows: (i) the

main firm in charge of the study and technical assistance to the Steering Committee will be

recruited based on a shortlist and a quality and cost-based selection (QCBS) method; (ii) the

audit firm will be recruited based on a shortlist and the least cost selection (LCS) method; (iii)

individual consultants will be recruited in accordance with Bank rules and procedures for the

recruitment of individual consultants.

4.2.4. Organization of Procurements: Given the project's multinational character, the

procurement process will be managed by specialized procurement management bodies in both

States. Hence, the scheduled procurement management mechanism comprises: (i) a Technical

Steering and Monitoring Committee for the study which will validate decisions at key stages

of the procurement process (validation of evaluation reports on expressions of interest, bid

proposal documents, bid assessments, negotiation of draft contracts and progress reports); (ii)

the Management Unit of the study, reinforced with experts from both countries, will be

responsible for the routine management of the procurement process (preparation and revision

of the procurement plan, preparation of documents, reception of bids, assessment and

management of contracts).

4.2.5. Procurement Plan: During project appraisal, the Borrower prepared a procurement

plan on which the project’s procurement arrangements are based. This plan was agreed upon

by both the Borrower and the Bank team tasked with the project. It will also be available in

the project database and on the Bank's website. The procurement plan will be updated

annually or as needed by the Borrower’s project to reflect actual project implementation and

institutional capacity building needs. Any proposed review of the procurement plan is subject

to the Bank’s prior approval, on a lapse-of-time basis. The Borrower will implement the

procurement plan as agreed with the Bank. A simplified version of the procurement plan is

presented in the technical annexes.

4.3. Financial Management and Disbursement Arrangements

4.3.1. Responsibility for the financial management of the project is entrusted to the

Monitoring and Execution Unit for AfDB/World Bank Road Projects (CSEPR-BA/BM) at the

11

Ministry of Public Works (MINTP) in Cameroon, precisely through its Administration and

Financial Officer who will be supported through the recruitment of an accountant.

4.3.2. In that capacity, it will be responsible for setting up an effective and efficient internal

control mechanism to produce reliable financial information, on time and of the right quality, and

conduct an annual external audit of project financial statements.

4.3.3. The accounting system currently used in Cameroon for the management of projects

funded with external resources, namely SYSCOHADA, will be used for the accounting and

financial reports of the Study. The Management Unit will forward a semi-annual financial

monitoring report no later than 45 days following the end of each semester. The financial

management details and action plan for mitigation of fiduciary risks are presented in the

annexes of the appraisal report.

Disbursements

4.3.4. The Bank’s disbursement methods which will be used are: (i) the direct payment

method; (ii) the special account/operating capital method; and (iii) the reimbursement method.

Direct payments will be made for consultancy services and, where possible, goods. The special

account method will be used for settlement of operating expenses, local training expenses, field

mission allowances, organization of workshops, etc. It will give rise to the opening of an account

in a bank deemed acceptable to the AfDB.

Audit

4.3.5. In accordance with Bank rules, the accounts of the Study will be audited by a private

external audit firm and funded with project resources. The audit firm who will be recruited as

part of the Regional Integrative Road Network Project in the Lake Chad Basin will also in

charge of the audit of this study project. The financial statements of each fiscal year shall be

audited and submitted to the Bank no later than six months after closure of the relevant fiscal

year.

4.4. Monitoring and Evaluation

The various phases of the study will be monitored by the Steering and Monitoring Committee

of the Study. Such monitoring is based on performance indicators defined in the logical

framework and which relate essentially to the reports and documents resulting from the study.

Records shall be kept on the effective presence of key staff from the firm tasked with the

conduct of the study. Supervision missions from the Bank and the Ministries concerned will

also assess the status of implementation of this study. The progress reports produced by the

executing body shall be submitted to the Steering Committee that will be established.

The indicative key stages are presented in the table below:

12

Table 4.1: Monitoring and supervision of the Study

Timeframe Stage Process Feedback

Q1 – 2018 Launching of the study Launching mission

Q1&Q2&Q3&Q4-2018, Execution Supervision mission Status reports/ Aide mémoire

Q1&Q2&Q3-2019 Execution / Feedback

workshops

Supervision and mid-term

review mission

Status reports/ Aide mémoire

Q4-2019 Validation workshop Steering Committee Meeting Workshop report

Q1-2020 Study completion report

4.5 Governance

4.5.1. Although progress has been made in budget management since 2008 in Cameroon,

there are still major shortcomings that undermine public spending efficiency. The adoption in

2007 of the Law on the Financial Regulations of the State (LRFE) was followed by significant

reforms on results-based management, including the development of medium-term

expenditure frameworks (MTEF) and budget programmes from 2013; creation of the Inter-

ministerial Programme Review Committee (CIEP); and the establishment of Planning-

Programming-Budgeting-Monitoring/Evaluation (PPBS) in sectoral ministries. Despite these

encouraging developments, the public finance management (PFM) system is still undermined

by several challenges. Indeed, the legal framework remains incomplete and this situation does

not facilitate the monitoring and control of budget execution. At the strategic planning level,

the country is lagging behind in the development and adoption of sectoral strategies. Finally,

the PFM information system, composed of multiple often standalone applications, the

inefficiencies of the investment projects maturation framework and bottlenecks in the

procurement system all affect the quality of public expenditure. An appraisal of the public

finance management system based on the PEFA methodology yielded a thorough diagnosis of

the situation, which should lead to the adoption of a general public finance reform plan. These

reforms will be supported by all TFPs including the Bank, through budget support and

technical assistance.

4.5.2. In the field of transport in particular, the Bank conducted an expenditure review in

[2014] which indicated that while budget expenditure in this sector had increased in absolute

terms over the past few years, execution has remained below the performance thresholds

defined by the authorities. Over 90% of initiated projects are not completed within the

prescribed time frame. Cumbersome commitment procedures, the slow procurement process

and the protracted expenditure payments system all account for this situation. Under these

circumstances, public spending on the road sub-sector still has only a very limited impact on

the competitiveness of the economy.

4.5.3. In the specific context of the railway transport sub-sector, Cameroon has some

experience in the conduct and management of such projects which involve the private sector.

An example is the railway concession arrangement with the Bolloré Group. The country also

has a National Railway Development Plan outlining the schedule of investments in this sub-

sector.

4.5.4. Chad initiated structural reforms, issuing Ordinance No. 007/PR/2015 to set up the

National Railway Authority (ONCF) tasked with the design, planning and execution of

railway infrastructure works and the operation of such infrastructure. This action is a major

13

step forward towards strengthening governance in this sub-sector which is expected to play a

major role, given the landlocked nature of the country.

4.6. Sustainability

4.6.1. Sustainability analysis is based on a comprehensive approach that includes the

following interactive key dimensions of sustainability: (i) technical sustainability; (ii)

maintenance of physical infrastructure; (iii) financial and economic sustainability; (iv) social

and environmental sustainability; (v) long-term institutional capacity; and (vi) stakeholder

support. The Ngaoundéré-N’Djamena railway project addresses real needs.

4.6.2. During the design phase, potential threats will be identified as early as possible in the

study cycle in order to facilitate integration of the mitigation measures to be executed during

the implementation phase. A working group will be responsible for reviewing the documents

produced by the consultants.

4.6.3. This working group is composed of representatives from the key ministries, in order

to obtain their approval on the study's findings underpinning project implementation. The

Bank’s transport sector department will review the documents produced by the consultants

during conduct of the study to ensure that fundamental problems relating to the final

execution of the project are addressed in the study.

4.7. Risk Management

Risk Level Mitigation Measure

Instability of the security climate in the

project region

High Reinforcement of the military arrangements in the area

Low capacity of both countries to monitor

and coordinate the study

Moderate Establishment and reinforcement of the steering committee

of the study and recruitment of specialized technical

assistance

4.8. Knowledge Development

The study will facilitate knowledge transfer to the engineers of the two ministries responsible

for the project in both countries. Indeed, capacity building activities for members of the

Railway Commission and the government services of the beneficiary countries will facilitate

the organization of specialized training on railroads and the concept of public-private

partnerships (PPPs).

V. LEGAL FRAMEWORK

5.1. Legal Instrument

5.1.1. The study will be financed with an ADF grant of UA 2 million to the Republic of

Chad and an ADF loan of UA 2 million to the Republic of Cameroon.

5.2. Conditions Associated with the Bank’s Intervention

The legal instrument of the project is a Grant Agreement Protocol for UA 2 million with the

Republic of Chad and an ADF Loan Agreement for UA 2 million with the Republic of

Cameroon.

14

5.2.1. Conditions Precedent to Effectiveness

A. Conditions precedent to effectiveness of the Agreement Protocol and the Loan

Agreement.

The effectiveness of the Grant Agreement Protocol shall be subject to its signature by the Donee

and the Fund.

The loan agreement shall become effective subject to the Borrower’s fulfilment, to the

satisfaction of the Fund, of the conditions provided for in Section 12.0.1 of the General

Conditions.

Conditions Precedent to Effectiveness

B. Conditions precedent to first disbursement of the grant and loan resources: In

addition to the effectiveness of the Agreement Protocol and the Loan Agreement, first

disbursement of the grant/loan resources shall be subject to fulfilment of the following

conditions by the Donee/Borrower:

a. Provide the Fund with the original or certified true copy of the a certificate of

opening of a special account in a bank acceptable to the AfDB, exclusively to

receive the operating funds of the Management Unit and the Technical Steering

Committee of the study;

b. Provide the Fund with evidence of the appointment of two experts responsible

for supporting the project management unit whose qualifications have been

assessed by the Fund as satisfactory

Commitment

The Borrower/Done undertakes, to the satisfaction of the Fund, to:

(i) Execute the Project in accordance with the terms jointly agreed upon and set

out in this appraisal report.

5.3. Compliance with Bank policies

5.3.1. This project is consistent with the applicable policies of the Bank, especially those

governing financial management, procurements, disbursements and expenditure eligibility to

Bank financing. No exceptions are recommended.

VI. RECOMMENDATION

Management recommends that the Board of Directors approve the proposed ADF grant of UA

2 million to the Republic of Chad and an ADF loan of UA 2 million to the Republic of

Cameroon for the purposes and in accordance with the conditions set forth in this report.

I

ANNEX I - COMPARATIVE SOCIOECONOMIC INDICATORS OF CAMEROON

Year Cameroon Africa

Develo-

ping

Countries

Develo-

ped

Countries

Basic Indicators

Area ( '000 Km²) 2016 475 30 067 97 418 36 907Total Population (millions) 2016 23,9 1 214,4 6 159,6 1 187,1Urban Population (% of Total) 2016 55,1 40,1 48,7 81,1Population Density (per Km²) 2016 50,6 41,3 65,1 33,8GNI per Capita (US $) 2015 3290 2 153 4 509 41 932Labor Force Participation *- Total (%) 2016 76,1 65,7 63,5 60,0Labor Force Participation **- Female (%) 2016 71,1 55,7 48,9 52,1Sex Ratio (per 100 female) 2016 100,0 100,1 106,0 105,0Human Dev elop. Index (Rank among 187 countries) 2015 153 ... ... ...Popul. Liv ing Below $ 1.90 a Day (% of Population) 2014 24,0 ... ... ...

Demographic Indicators

Population Grow th Rate - Total (%) 2016 2,5 2,5 1,3 0,6Population Grow th Rate - Urban (%) 2016 3,5 3,6 2,4 0,8Population < 15 y ears (%) 2016 42,3 40,9 27,9 16,8Population 15-24 y ears (%) 2016 20,2 19,3 16,9 12,1Population >= 65 y ears (%) 2016 3,2 3,5 6,6 17,2Dependency Ratio (%) 2016 83,6 79,9 54,3 52,0Female Population 15-49 y ears (% of total population) 2016 24,0 24,0 25,7 22,8Life Ex pectancy at Birth - Total (y ears) 2016 56,4 61,5 69,9 80,8Life Ex pectancy at Birth - Female (y ears) 2016 57,6 63,0 72,0 83,5Crude Birth Rate (per 1,000) 2016 35,7 34,4 20,7 10,9Crude Death Rate (per 1,000) 2016 10,9 9,1 7,6 8,6Infant Mortality Rate (per 1,000) 2015 57,1 52,2 34,6 4,6Child Mortality Rate (per 1,000) 2015 87,9 75,5 46,4 5,5Total Fertility Rate (per w oman) 2016 4,6 4,5 2,6 1,7Maternal Mortality Rate (per 100,000) 2015 596,0 476,0 237,0 10,0Women Using Contraception (%) 2016 34,1 31,0 62,2 ...

Health & Nutrition Indicators

Phy sicians (per 100,000 people) 2005-2015 8,3 41,6 125,7 292,2Nurses and midw iv es (per 100,000 people) 2005-2015 52,0 120,9 220,0 859,4Births attended by Trained Health Personnel (%) 2010-2015 64,7 53,2 69,1 ...Access to Safe Water (% of Population) 2015 75,6 71,6 89,4 99,5Access to Sanitation (% of Population) 2015 45,8 39,4 61,5 99,4Percent. of Adults (aged 15-49) Liv ing w ith HIV/AIDS 2015 4,5 3,4 ... ...Incidence of Tuberculosis (per 100,000) 2015 212,0 240,6 166,0 12,0Child Immunization Against Tuberculosis (%) 2015 74,0 81,8 ... ...Child Immunization Against Measles (%) 2015 79,0 75,7 83,9 93,9Underw eight Children (% of children under 5 y ears) 2010-2015 14,8 18,1 15,3 0,9Prev alence of stunding 2010-2014 31,7 33,3 25,0 2,5Prev alence of undernourishment (% of pop.) 2015-2016 9,9 16,2 12,7 ...Public Ex penditure on Health (as % of GDP) 2014 0,9 2,6 3,0 7,7

Education Indicators

Gross Enrolment Ratio (%)

Primary School - Total 2010-2016 117,1 101,2 104,9 102,4 Primary School - Female 2010-2016 110,7 98,4 104,4 102,2 Secondary School - Total 2010-2016 58,1 52,6 71,1 106,3 Secondary School - Female 2010-2016 53,5 50,2 70,5 106,1Primary School Female Teaching Staff (% of Total) 2010-2016 54,2 47,1 59,8 81,0Adult literacy Rate - Total (%) 2010-2015 75,0 66,8 82,3 ...Adult literacy Rate - Male (%) 2010-2015 81,2 74,3 87,1 ...Adult literacy Rate - Female (%) 2010-2015 68,9 59,4 77,6 ...Percentage of GDP Spent on Education 2010-2015 3,0 5,0 4,0 5,0

Environmental Indicators

Land Use (Arable Land as % of Total Land Area) 2014 13,1 8,7 11,2 10,3Agricultural Land (as % of land area) 2014 20,6 41,7 37,9 36,4Forest (As % of Land Area) 2014 40,3 23,2 31,4 28,8Per Capita CO2 Emissions (metric tons) 2014 1,6 1,1 3,5 11,0

Sources : AfDB Statistics Department Databases; World Bank: World Development Indicators; last update :

UNAIDS; UNSD; WHO, UNICEF, UNDP; Country Reports.

Note : n.a. : Not Applicable ; … : Data Not Available. * Labor force participation rate, total (% of total population ages 15+)

** Labor force participation rate, female (% of female population ages 15+)

COMPARATIVE SOCIO-ECONOMIC INDICATORS

Cameroon

June 2017

0

10

20

30

40

50

60

70

80

90

100

20

00

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05

20

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Infant Mortality Rate( Per 1000 )

C am er o on A fr i ca

0

500

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1500

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3000

3500

4000

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GNI Per Capita US $

C am er o on A fr i ca

0,0

0,5

1,0

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2,5

3,0

20

00

20

05

20

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Population Growth Rate (%)

C am er oon A fr ic a

01020304050607080

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12

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Life Expectancy at Birth (years)

C am er o on A fr i ca

II

ANNEX II- COMPARATIVE SOCIOECONOMIC INDICATORS OF CHAD

Year Chad Africa

Develo-

ping

Countries

Develo-

ped

Countries

Basic Indicators

Area ( '000 Km²) 2016 1 284 30 067 97 418 36 907Total Population (millions) 2016 14,5 1 214,4 6 159,6 1 187,1Urban Population (% of Total) 2016 21,9 40,1 48,7 81,1Population Density (per Km²) 2016 11,51 41,3 65,1 33,8GNI per Capita (US $) 2015 880 2 153 4 509 41 932Labor Force Participation *- Total (%) 2016 71,6 65,7 63,5 60,0Labor Force Participation **- Female (%) 2016 64,0 55,7 48,9 52,1Sex Ratio (per 100 female) 2016 100,3 100,1 106,0 105,0Human Dev elop. Index (Rank among 187 countries) 2015 186 ... ... ...Popul. Liv ing Below $ 1.90 a Day (% of Population) 2011 38,4 ... 15,9 ...

Demographic Indicators

Population Grow th Rate - Total (%) 2016 3,3 2,5 1,3 0,6Population Grow th Rate - Urban (%) 2016 3,6 3,6 2,4 0,8Population < 15 y ears (%) 2016 47,6 40,9 27,9 16,8Population 15-24 y ears (%) 2016 20,3 19,3 16,9 12,1Population >= 65 y ears (%) 2016 2,5 3,5 6,6 17,2Dependency Ratio (%) 2016 100,1 79,9 54,3 52,0Female Population 15-49 y ears (% of total population) 2016 22,1 24,0 25,7 22,8Life Ex pectancy at Birth - Total (y ears) 2016 52,2 61,5 69,9 80,8Life Ex pectancy at Birth - Female (y ears) 2016 53,3 63,0 72,0 83,5Crude Birth Rate (per 1,000) 2016 44,3 34,4 20,7 10,9Crude Death Rate (per 1,000) 2016 13,6 9,1 7,6 8,6Infant Mortality Rate (per 1,000) 2015 85,0 52,2 34,6 4,6Child Mortality Rate (per 1,000) 2015 138,7 75,5 46,4 5,5Total Fertility Rate (per w oman) 2016 5,9 4,5 2,6 1,7Maternal Mortality Rate (per 100,000) 2015 856,0 476,0 237,0 10,0Women Using Contraception (%) 2016 6,9 31,0 62,2 ...

Health & Nutrition Indicators

Phy sicians (per 100,000 people) 2005-2015 4,4 41,6 125,7 292,2Nurses and midw iv es (per 100,000 people) 2005-2015 30,9 120,9 220,0 859,4Births attended by Trained Health Personnel (%) 2010-2015 24,3 53,2 69,1 ...Access to Safe Water (% of Population) 2015 50,8 71,6 89,4 99,5Access to Sanitation (% of Population) 2015 12,1 39,4 61,5 99,4Percent. of Adults (aged 15-49) Liv ing w ith HIV/AIDS 2015 2,0 3,4 ... ...Incidence of Tuberculosis (per 100,000) 2015 152,0 240,6 166,0 12,0Child Immunization Against Tuberculosis (%) 2015 70,0 81,8 ... ...Child Immunization Against Measles (%) 2015 62,0 75,7 83,9 93,9Underw eight Children (% of children under 5 y ears) 2010-2015 28,8 18,1 15,3 0,9Prev alence of stunding 2010-2014 38,7 33,3 25,0 2,5Prev alence of undernourishment (% of pop.) 2015-2016 34,4 16,2 12,7 ...Public Ex penditure on Health (as % of GDP) 2014 2,0 2,6 3,0 7,7

Education Indicators

Gross Enrolment Ratio (%)

Primary School - Total 2010-2016 101,4 101,2 104,9 102,4 Primary School - Female 2010-2016 88,0 98,4 104,4 102,2 Secondary School - Total 2010-2016 22,4 52,6 71,1 106,3 Secondary School - Female 2010-2016 14,0 50,2 70,5 106,1Primary School Female Teaching Staff (% of Total) 2010-2016 15,4 47,1 59,8 81,0Adult literacy Rate - Total (%) 2010-2015 40,0 66,8 82,3 ...Adult literacy Rate - Male (%) 2010-2015 48,4 74,3 87,1 ...Adult literacy Rate - Female (%) 2010-2015 31,8 59,4 77,6 ...Percentage of GDP Spent on Education 2010-2015 2,9 5,0 4,0 5,0

Environmental Indicators

Land Use (Arable Land as % of Total Land Area) 2014 3,9 8,7 11,2 10,3Agricultural Land (as % of land area) 2014 39,7 41,7 37,9 36,4Forest (As % of Land Area) 2014 4,0 23,2 31,4 28,8Per Capita CO2 Emissions (metric tons) 2014 0,0 1,1 3,5 11,0

Sources : AfDB Statistics Department Databases; World Bank: World Development Indicators; last update :

UNAIDS; UNSD; WHO, UNICEF, UNDP; Country Reports.

Note : n.a. : Not Applicable ; … : Data Not Available. * Labor force participation rate, total (% of total population ages 15+)

** Labor force participation rate, female (% of female population ages 15+)

COMPARATIVE SOCIO-ECONOMIC INDICATORS

Chad

June 2017

0

20

40

60

80

100

120

20

00

20

05

20

09

20

10

20

11

20

12

20

13

20

14

20

15

Infant Mortality Rate( Per 1000 )

Chad Africa

0

500

1000

1500

2000

2500

20

00

20

05

20

09

20

10

20

11

20

12

20

13

20

14

20

15

GNI Per Capita US $

Chad Africa

0,0

0,5

1,0

1,5

2,0

2,5

3,0

3,5

4,0

20

00

20

05

20

09

20

10

20

11

20

12

20

13

20

14

20

15

Population Growth Rate (%)

Chad Africa

01020304050607080

20

00

20

05

20

09

20

10

20

11

20

12

20

13

20

14

20

15

Life Expectancy at Birth (years)

Chad Africa

III

ANNEX III: TABLE OF BANK OPERATIONS IN CAMEROON AS OF 30 SEPTEMBER 2017

SECTORS PROJECTS Approval

date Date of

Signature Effectiveness Disbursement satisfaction

Date of 1st

disbursement

Disbursement

deadline

Bank financing (in UA million)

AfDB loan

ADF/NTF loan

Grants Disb. rate

Governance Land Registry Project (PAMOCCA 1) 15.11.2010 05.01.2011 17.05.2011 10.02.2012 21.03.2012 30.12.2017. 7.00 52,6%

Land Registry Project (PAMOCCA 2) 17.12.2013 08.06.2014 29.10.2014. 29.10.2014. 24.04.2015 30.03.2018. 5.00 14,9%

Transport

Kumba-Mamfe Road Project 21.11.2012 09.02.2013 16.09.2013 07.11.2013 27.01.2014. 31.12.2017. 47.26 56,8%

Road Programme I: Batchenga-Léna 26.11.2014. 28.03.2015. 09.02.2016 12.04.2016 13.09.2016 31.12.2019. 126.43 12.45 4,4%

Road Program 2:Yaoundé-Bafoussam 23.11.2016 08.06.2017 221.71 12.82 0,0%

Tech Info-Com Central Africa Backbone 09.07.2015 29.10.2015. 14.01.2016 14.01.2016 24.05.2016 31.12.2019. 30.61 1.24 1,4%

Water and sanitation

Yaounde Sanitation Project (PADY) 19.06.2013 11.09.2013 17.03.2014 01.10.2014 13.11.2014 31.12.2018 20.99 2.89 22,2%

Semi-urban DWSS Project 28.01.2009 13.05.2009 02.11.2009 28.05.2010 14.10.2010 30.09.2017 33.77 78,1%

Rainwater management studies PEMVEP 20.06.2016 21.10.2016 21.10.2016 24.02.2017 31.12.2018 1.06 0,0%

Energy Strengthening electrical networks PREREDT 15.09.2010 15.10.2010 20.04.2011 22.01.2013 25.02.2013 30.12.2017 31.64 32,4% Lom Pangar Hydro-electricity Development Project 10.11.2011 18.01.2012 14.06.2012 14.12.2012 25.07.2013 31.12.2017 44.93 11,6%

Agriculture Rural Infrastructure Support – Grassfield 2 23.10.2013 16.12.2013 10.04.2014 15.09.2014 07.10.2014 31.12.2019 13.61 3.19 27,1%

Agricultural Value Chain Development Project (AVC-DP) 20.01.2016 21.10.2016 23.12.2016 23.12.2016 15.03.2017 31.01.2022 73.28 2,1%

Total National public operations 459,53 229,47 8,34 13,09%

Private sector

Cameroon Shipyard and Industrial Engineering Company (CNIC) 12.12.2002 02.06.2003 29.04.2005 29.04.2005 13.05.2005 31.12.2016 32.64 67,9%

AES-SONEL Investment Programme 10.05.2006 08.12.2006 13.02.2007 15.02.2007 20.02.2007 31.12.2020 49.24 100%

Dibamba Thermal Power Plant 28.04.2010 11.05.2011 11.05.2011 15.07.2011 22.07.2011 01.06.2023 18.27 100%

Kribi Thermal Power Plant 15.07.2011 22.12.2011 22.12.2011 27.08.2012 13.09.2012 15.11.2025 23.45 100 %

Total National private operations 124,64 91,73%

Regional Environment

Protection of Central African Elephants 22/07/2013 16.12.2013 11.11.2014 16.01.2015 30.04.2015 31.12.2017 0.25 36,9% Rehabilitation of Lake Basin Chad (PRESIBALT) 17/12/2014 02/07/2015 11.11.2015 15.03.2016 25.07.2016 30.09.2019 12.5 7,9%

Regional Energy Chad-Cameroon Interconnection Study 07.10.2013 29.01.2014 03.09.2014 23.10.2014 15.12.2014 31.12.2017 1.25 57,0%

Regional Transport

Transport Facilitation on the Bamenda-Enugu Corridor 25.11.2008 13.05.2009 04.11.2009 01.12.2009 24.12.2009 31.06.2017 90.39 57,0%

Brazzaville -Yaoundé corridor (Ketta -Djoum 1) 25.09.2009 11.01.2010 29.03.2010 13.02.2012 24.04.2012 30.11.2017 59.27 90,6%

Brazzaville -Yaoundé corridor (Ketta -Djoum 2) 21.10.2015 05.04.2016 05.08.2016 06.09.2016 01.11.2016 31.12.2020 50.92 0,2%

Total National public operations 51,77 163,66 49,82%

OVERALL PORTFOLIO TOTAL: UA 1.037 billion 635,94 393,13 8,34 30,17%

IV

ANNEX IV: TABLE OF BANK OPERATIONS IN CHAD AS OF 30 SEPTEMBER 2017 Project Title Approval date

Date of signature Effective date

Date of first disbursement Closing date

ADF Commitment (UA)

Amount disbursed (UA)

% disbursed ADB

Agricultural Sector

1 Lake Chad Basin Sustainable Development Programme/ MULTINATIONAL GRANT 11/12/2008 19/12/2008 19/12/2008 11/08/2009 31/12/2017 30,000,000 25,423,965.58 84.75

2 Rural Infrastructure Support Project / LOAN 06/07/2011 14/11/2011 31/07/2012 25/09/2012 30/12/2017 5,200,000 3,984,789.59 76.63

Rural Infrastructure Support Project / GRANT 06/07/2011 14/11/2011 16/08/2012 25/09/2012 30/12/2017 5,200,000 4,517,852.31 86.88

3 programme to Boost Resilience to Recurrent Food and Nutritional Insecurity in the Sahel (P2RS) 15/10/2014 04/12/2014 04/12/2014 23/12/2015 31/12/2019 9,770,000 736,507.79 7.54

4 Programme to Rehabilitate and Boost the Resilience of Socio-ecological Systems (PRESIBALT) GRANT 17/12/2014 09/03/2015 09/03/2015 25/07/2016 30/09/2019 5,350,000 592,173.81 11.07

5 Biodiversity Conservation Programme in Central Africa GRANT 22/07/2013 17/12/2013 16/01/2015 06/05/2015 31/12/2017 250,000 91,766 36.71

Agricultural Sector Total 55,770,000 34,460,295 61.79

Water and Sanitation Sector

6 DWSS Programme in 15 Secondary Towns/ GRANT 11/07/2012 04/10/2012 04/10/2012 26/04/2013 31/12/2018 6,900,000 4,372,864.45 63.37

DWSS Programme in 15 Secondary Towns/ RWSSI GRANT 11/07/2012 04/10/2012 04/10/2012 06/05/2013 31/12/2018 2,460,569 1,710,914.93 69.53

DWSS Programme in 15 Secondary Towns/ LOAN 11/07/2012 04/10/2012 18/04/2013 23/07/2013 31/12/2018 10,710,000 7,057,580.25 65.90

Total: Water and Sanitation Sector 20,070,569 13,141,360 65.48

Transport Sector

7 Multinational Algeria/Niger/Chad Road Project / LOAN 11/12/2013 19/03/2014 30/10/2014 10/06/2016 31/12/2019 20,900,000 4,283,852.60 20.50

Multinational Algeria/Niger/Chad Road Project / GRANT 11/12/2013 19/03/2014 19/03/2014 02/06/2015 31/12/2019 20,400,000 3,922,309.08 19.23

8 Kyabé-Singako Road Paving Project - GRANT 13/06/2014 29/10/2014 29/10/2014 08/03/2016 30/06/2019 12,846,000 2,040,667.99 15.89

9 Kyabé-Singako Road Paving Project - OFID LOAN 17/04/2015 17/04/2015 17/04/2015 17/04/2015 31/12/2018 13,013 114 2,012,990.41 15.47

Transport Sector Total 67,159 114 12,259,820.08 18.25

Energy Sector

10 Chad-Cameroon Interconnection Study - GRANT 07/10/2013 17/12/2013 17/12/2013 30/12/2014 31/12/2017 1,250,000 496,192.45 39.70

Energy Sector Total 1,250,000 496,192

Social Sector

11 Preparatory studies of the Project for the Promotion of Training and Literacy for Girls 04/11/2016 24/01/2017 24/04/2017 42,863 30/09/2018 1,000,000 24,071.78 2.41

TOTAL: SOCIAL SECTOR

1,000,000 24,072.78 GOVERNANCE

12

Improvement of the Business Environment (PACADET) / LOAN 03/12/2013 19/03/2014 28/10/2014 08/02/2016 31/12/2018 3,970,000 383,493.56 9.66

Improvement of the Business Environment (PACADET) / GRANT 03/12/2013 19/03/2014 19/03/2014 16/01/2015 31/12/2018 1,920,000 250,554.46 13.05

OVERALL PORTFOLIO TOTAL: UA 145.049 million

V

ANNEX V : MAP OF THE PROJECT AREA

The staff of the ADB Group have provided this map for the exclusive use of readers of this report to which it is appended. The

appellations and the demarcations on this map do not imply any judgment on the part of the ADB Group and its members

concerning either the legal status of a territory or the approval or acceptance of its boundaries.