Document of

The World Bank

FOR OFFICIAL USE ONLY

Report No. 5798-GM

STAFF APPRAISAL REPORT

REPUBLIC OF THE GAMBIA

SECOND HIGHWAY MAINTENANCE PROJECT

February 28, 1986

Western Africa Projects DepartmentTransportation 1

This document has a restricted distribution and may be used by recipients only in the performance oftheir official duties. Its contents may not otherwise be disclosed without World Bank authorization.

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CURRENCY EQUIVALENTS

Currency Unit - Dalasis (D)US$ 1.0 = D 5.2

D 1.0 - US$ 0.19US$ 1.0 = SDR 1.11

FISCAL YEAR

July 1 - June 30

SYSTEM OF WEIGHTS AND MEAStRES (METRIC)

1 meter (m) = 3.28 feet (ft)1 square meter (m2) = 10.76 square feet (sq ft)1 cubic meter (m3) = 35.3 cubic feet (cu ft)1 hectare (ha) = 2.47 acres1 kilometer (km) = 0.62 mile (mi)1 square kilometer (kM2) = 0.39 square mile (sq mi)I metric ton (t) = 2,205 pounds (lb)I liter (l) = 0.26 US gallons (gal)

ABBREVIATIONS AND ACRONYMS

AfDF African Development FundEEC European Economic CommunityGPA Gambia Port AuthorityGPMB Gambia Produce Marketing BoardGPTC Gambia Public Transport CompanyGRTA Gambia River Transport AuthorityGRTC Gambia River Transport CompanyGTTI The Gambia Technical Training InstituteGITC Gambia Utility CorporationMDI Management Development InstituteMED Mechanical Engineering DivisionMEPID Ministry of Economic Planning and Industrial DevelopmentMF&T Ministry of Finance and TradeMWC Ministrv of Works and CommunicationsODA(IUK) Overseas Development Administration (UK)PWD Public Works DepartmentSIDA Swedish International Development AssociationUNDP United Nations Development ProgrammeUNSO United Nations Sudano-Sahelian OfficeUSAID United States Agency for international Development

WAPT]1February 1986

THE GAMBIA F 0MCIL USE ONLY

STAFF APPRAISAL REPORT

SECOND HIGHWAY MAINTENANCE PROJECT

c * TABLE OF CONTENTS

DOCUMENTS IN THE PROJECT FILE ............................... i

CREDIT AND PROJECT SUMMARY ...... ............................ ii

I. INTRODUCTION ........................................... 1

II. THE TRANSPORT SECTOR ................................... I

The Transport System ................................... IThe Roads Subsector ..................................... 4IDA Involvement in the Transport Sector ................. 7

III. THE PROJECT ............................................ 8

Project Background and Objectives ...................... 8Project Description .................................... 9The Road Maintenance Program ............................ 9Road and Bridge Rehabilitation .......................... 11Institutional Strengthening and Training ................ 12Refinancing of PPF ........ . ............................ 13Project Cost Estimates and Financing .................... 13Implementation and Present Status of the Project ..... .. 14Procurement ............................................ 14Disbursements .......................................... 15Reporting and Auditing ................................. 16

VI. ECONOMIC EVALUATION .................................... 17

Nature of Project Benefits ............................. 17Economic Returns and Sensitivity ........................ 17Project Risks ........................................... 18

V. AGREEMENTS REACHED AND RECOMMENDATION ....... . .......... 18

The project and this report were prepared on the basis of an appraisalmission in January and February, 1985 by Messrs. Peter Morris (MissionLeader, Deputy Division Chief), Rudolf Einthoven (Sr. Economist),Mohammed Rasheed (Sr. Financial Analyst), and Steven Berkman (TrainingSpecialist). Ms. Carolina Machado (Operations Assistant) and FaridaKhan (Administrative Assistant) provided computing assistance.Secretarial work was done by Ms. Susan Sing, Ms. Janine Vieira da Luz,Ms. Marcelle Houle and Ms. Tracy McMahon.

This document has a esicted distribution and may be uud by recipients only in the perform_eoftherofficiul dute.. Its contents may not otherwise be dickued without Wordd Bk authoriiio

ANNEXES

2-1 Banjul Port Traffic2-2 Banjul Airport Traffic2-3 Gambia River Traffic2-4 Road Network Evolution2-5 Transport Investments2-6 Estimated Vehicle Fleet2-7 Organization Chart of MWC2-8 Training Institutions2-9 MWC Budgeting. Accounting and Costing2-10 Revenue from Road User Taxes2-11 Fuel Consumption Statistics2-12 Road Maintenance Recurrent Budget

3-1 Local Roads Included in the Maintenance Program3-2 Periodic Maintenance Program3-3 Equipment Procurement Summary3-4 Terms of Reference for Road Maintenance Management3-5 Terms of Reference for MED Workshop Management3-6 Personnel Development Program for MWC and Terms of Reference3-7 Technical Assistance for Transport Planning3-8 Terms of Reference for Study of Domestic Construction Industry3-9 Cost Estimate and Financing Plan3-10 Implementation Schedule3-11 Estimated Disbursement Schedule3-12 Unit Rates for Road Maintenance Activities3-13 Annual Road Maintenance Targets

4 Economic Analysis

MAP: IBRD 18944

WAPT1February 1986

THE GAMBIA

SECOND HIGWAY NAINTEIANCE PROJECT

DOCUMENTS IN TEE PROJECT FILEReference WAIClumber Documnet Code

1. Maintenance Requiremnts and Resources for Feeder Roads(November 1982). ILO World Employment Programe 223.375

2. Pilot Project of Labour-b"aed Road Maintenance in TheGmbia , I10. 223.376

3. Firot Highway Maintenance Project: Follow Up RoadMaintenance Study, by Lavalin International:

- Final Report, 1983 (1-3) 223.799- Update of Final Report, Docember 1984 (GG) 124.153- Rehabilitation and StrangtheningSouth Bank Road (1 & 2) 227.527

4. First Higbway Maintnanece Project: Road UpgradingStudy, by Henry Grace and Partners (JUne 1985):

- First Phase Methodology 223.377- Second Phase Design (2 volumes) 227.820/1

5. The Feeder Road Rehabilitation and MaintenanceProject of Roads built with the assistance of UNSOthe Gambia: Biannual Work Programme MaintenanceBudget, UNDP/OPE (March 1985). 223.805

6. Regularization for the Implementation of the ManagementSystem of the Mechanical Engineering Division (MED). 223.315

7. Authorization for Parts Removal (Cannibalization) forthe Mechanical Engineering Division (MED). 223.316

8. Store Management and Organization at Kotu WorkshopMechanical Engineering Division (NED). 223.317

9. Preventive Maintenance Objectives for the MechanicalEngineering Division (NED). 223. 318

10. PWD Training Center-Review of Progress 1984, and1985-88 Three Tear Plan. 223.319

11. Brumen Bridge: Report on the recent visit of aMaunsell Engineer, May 1984. 223. 378

12. Feasibility Analyses Designated High PriorityProjects for Government of The Gambia and KuwaitFund, Wilbur Smith and Associates, Final Report,April 1979. 223.379

13. MWC Reorganization Study, by IME Consult,Draft Report, January 1986. 228.397

14. Working Papers on Economic Analysis 228.023WAPT1February 1986

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THE GAMBIA

SECOND HIGHWAY MAINTENANCE PROJECT

CREDIT AND PROJECT SUNMARY

Borrower: The Republic of The Gambia

Credit Amount: SDR 5.3 million (US$ 5.8 million equivalent)

Terms: Standard

Co-Lenders: IDA (US$5.8 million equivalent); AfDF (US$4.5 millionequivalent); EEC (US$2.0 million equivalent); UNSO(US$0.6 million equivalent) and UNDP (US$0.7 millionequivalent).

ProjectDescription: The project would support the efforts of the Ministry of

Works and Communications (MWC) in carrying out itsfour-and-one-half-year (1986 to mid-1990) roadmaintenance program which is comprised of the followingcomponents: (a) rehabilitation of part of the pavednetwork; (b) continuation and expansion of routine andperiodic road maintenance programs; (c) strengthening ofthe organisation and management of MWC to improve theefficiency of road and equipment maintenance; (d)introduction of sound transport planning procedures; and(e) assistance to domestic contractors to enable theirmore effective participation in road maintenanceactivities.

ProjectBenefits andRisks: The main benefits of the proposed project would be

improvement in the physical condition of The Gambia'sroad network and in the functional efficiency of MWC.These two aspects are essential in the protection ofhighway investments, the reduction of vehicle operatingcosts, and the prevention of rising road user costs as aresult of worsening road conditions. Other benefitsinclude the positive effects on agricultural productionbecause of reduced transport costs. Based on the satis-factory implementation of the First Highway MaintenanceProject (1979) and the commitment of the Government toreorganize NWC and improve its management procedures,there would be no major risks concerning project imple-mentation. However, further aggravation of The Gambia'seconomic situation could limit the timely availability ofthe Government's contribution of funds for maintenance.

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THE GAMBIA

SECOND HIGHWAY MAINTENANCE PROJECT

Sumary Project Cost Estimate

- US$ Thousands -Estimated Cost Local Foreign Total

1. Road Maintenance Program(a) Regravelling, Resealing. Paving 367 1,570 1,937(b) Routine Road Maintenance 946 1,513 2.459(c) Feeder Road Maintenance 172 401 573(d) Equipment and Vehicles 0 1,748 1,748(e) Road Maintenance and Workshop Mgmt. 160 1,430 1,590

2. Road and Bridge Rehabilitation(a) Bund Road 188 784 972(b) South Bank Road 376 '.,558 1.934(c) Brumen Bridge 172 748 920

3. Institutional Strengthening(a) Planning, Studies, and Auditing 40 360 400(b) Management and Training for MWC 39 351 390(c) Study and Training for

Domestic Contractors 4 36 40(d) Equipment, Materials,

and Courses for MWC 70 110 180

4. Repayment of PPF Advance 55 495 550Base Cost (February 1986) 2,589 11,104 13,693Physical Contingencies 81 352 433Price Contingencies 487 1,789 2,276

Total Project Cost a/ 3,157 13,245 16,402

Financing Plan (Rounded) Local Foreign Total

IDA 580 5,220 5,800UNSO 115 485 600AfDF 480 4,020 4,500EEC 35 1,965 2,000UNDP 70 630 700Government 1,877 925 2,802Total 3,157 13,245 16,402

Estimated IDA Disbursements IDA Fiscal Year(CTSS Millions) FY87 FY88 FY89 FY90 FY91 FY92

Annual 1.6 1.4 1.2 0.7 0.6 0.3Cumulative 1.6 3.0 4.2 4.9 5.5 5.8

Economic Rate of ReturnThe estimated economic rate of return (ERR) for the project, based onquantifiable benefits covering about 79% of overall cost, is about 382.WAPTIFebruary 1986

aJ Project items are exempt from all taxes and duties except for a smallamount from local contracts for road maintenance activities.

THE GAMBIA

SECOND HIGHWAY MAINTENANCE PROJECT

I. INTRODUCTION

1.01 The Government of The Gambia has requested IDA's assistance infinancing a follow-up project to the First Highway Maintenance Project(Cr. 897-GM of April 1979). The proposed project will support theefforts of the Ministry of Works and Communications (MWC) in carryingout a four-and-one-half-year (1986 to mid-1990) road maintenance andupgrading program. In addition to routine and periodic road maintenanceoperations and priority road and bridge rehabilitation, the projectsupports a major institution building effort of MWC and assistance todomestic contractors to enable their more effective participation inroad maintenance activities.

1.02 IDA's strategy in the highway sector has focussed on develop-ing the country's road maintenance capability, while trying to ensurethat traditional priority to construction and expansion of the pavedroad network is replaced by a strong emphasis in maintaining and improv-ing the country's deteriorating road infrastructure. IDA's support ofthe proposed project is crucial to consolidate these initiatives and toassist the Government in building up sustainable road and equipmentmaintenance management systems. Furthermore, IDA's support under theproject in intensifying the policy dialogue on road maintenancefinancing and investment planning for the transport sector will (a)enable more rational use of scarce local funds, and (b) help enlist thesupport of international financing agencies towards these worthwhileobjectives.

II. THE TRANSPORT SECTOR

A. The Transport System

2.01 The Gambia, with a land area of 11,300 kM2, the smallestcountry in continental Africa, consists of an east-west strip of mainlyflat terrain 30-50 km wide, etending some 350 km inland along theshores of the Gambia river. The country is surrounded by Senegal on theNorth, East and South and by the Atlantic Ocean on the West. Thetransport system links the interior of the country with the capital andprincipal port of Banjul at the mouth of the Gambia river and providesfor north-south overland transport corridors connecting Northern andSouthern Senegal. The system consists of a relatively well-developedroad network comprising some 510 km of paved roads, 800 km of lateritegravel roads and about 1,080 km of earth roads and tracks. Because theriver separates the country in two, a partial duplication of roadfacilities on the river's northern and southern sides has taken place.The river is navigable for vessels up to about 4,000 dwt fully laden asfar as the port of Kaur, some 230 km upstream, and for smaller craftover the remaining 120 km portion in The Gambia. The river system can becrossed in seven places by vehicular ferries. The Gambia has an inter-national airport at Yundum, some 20 km from Banjul, but no railway,aviation or maritime shipping lines (Map IBRD 18944).

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2.02 Port facilities at Banjul are undergoing renewal and expansionunder the IDA-financed Second Port Project (Credit 1266-GM of September1982). After project completion, the port's capacity will be adequatefor the foreseeable future. Present annual traffic consists of about285,000 tons of dry cargo and 44,000 tons of petroleum products asimports, and 12,000 tons of groundnut oil as exports (Annex 2-1).

2.03 Banjul airport is adequately equipped and includes one of thelongest runways (3,600 m) in West Africa. Terminal facilities aremodest and only require minor improvements to handle efficiently some160,000 passenger movements per year, 60Z of whom travel on charterflights. Gambian Airlines is a handling agent only, and does notpossess any aircraft or operate any air services (Annex 2-2).

2.04 Passenger transport is provided by the private sector whichuses mostly minibuses in competition with the Government-owned GambiaPublic Transport Company (GPTC) which operates about 50 large buses forurban, suburban, rural and tourist services. Passenger transport byriver is negligible, except for the vehicle ferry services and smallferry boats.

2.05 Freight is carried by about 500 trucks, mostly privatelyowned, and by a fleet of 50 barges and 8 tugs owned by the Gambia RiverTransport Company (GRTC) which is aging and in need of rehabilitationand renewal. There are no reliable statistics on road transport volumesor the trends over recent years. Commodities transported by river areespecially groundauts and other bulky goods such as cement and fertiliz-er. The annual volume of river transport ranges from 60,000 to 110,000tons, mostly depending on harvest results (Annex 2-3).

2.06 Ferry services across the Gambia river are operated by theGambia Port Authority (GPA). The main vehicular ferries are at Banjuland some 120 km upstream where the Trans-Gambia highway, linking thesouthern and northern parts of Senegal, crosses the Gambia river.Smaller ferry boats provide river crossing services for motor vehiclesat five other points. All ferries are in poor condition and many of thesmaller ones are frequently out of service. The ferry boats and rampsfor the ferry at Banjul are to be rehabilitated with German assistance,and financing is being sought from the Government of Japan for thereplacement of ferry boats at the Trans-Gambian highway crossing. Ferryservices have been operating at a substantial loss but a recent tariffincrease of 75% aims at remedying this. Furthermore, efforts will bemade to collect all ferry charges from Senegalese vehicles in convert-ible CFA Francs.

2.07 Transport sector administration is predominantly the responsi-bility of the Ministry of Works and Communications (MWC). The national(primary and secondary) road network (1,210 km - 450 km paved, 610 kmgravel and 150 km earth) comes directly under MWC. Banjul city andKanifing Urban District (near Banjul) are, in principle, responsible forabout 70 km of paved streets. A further 180 km of gravel and 930 km ofearth roads and tracks come under local jurisdictions. In practice, MWCis the only organization doing regular road maintenance, and providesad-hoc assistance for roads under other jurisdictions. The local roadnetwork is generally adequate for the country's needs, except in theNortheast. About 80% of all villages are within 5 km of a road or track,

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and the main transport activity (groundnuts) occurs in the dry season.Local authorities and communities carry out road repairs as needed andwhen funds are available. About 420 km of local tracks have beenupgraded since 1978 to semi-engineered gravel standard (6 m wide) underthe UNSO Feeder Road Program, and maintenance responsibility for 246 kmhas been handed over to MWC. A further 83 km are about to be upgradedby UNSO, with EEC financing, in the Northeast. Annex 2-4 providesdetails of the country's road networks.

2.08 GPA and GPTC are financially and operationally autonomousagencies under MWC, but ferry, bus and port tariffs have to be approvedby Government. GPTC has operated at a loss in recent years while GPAhas until recently been losing money because of low ferry tariffs (para2.06). GRTC forms part of the Gambia Produce Marketing Board (GPMB)which falls under the Ministry of Agriculture. As part of the SecondBanjul Port Project agreement was reached that river freight transportservices under GRTC, and the ferry services, under GPA, would transferto a new state-owned river transport authority (GRTA) within MWC'sportfolio. However, a recent study by consultants has shown that thenature and scope of financial and operational problems in the riversystem merit a more careful scrutiny, and a new approach involvingpossible participation of the private sector is being discussed withGovernment. Additionally, the role of river transport in the futuredevelopment of The Gambia will be assessed under the project (para3.11), and the resulting investments, if justified, and institutionalaspects would then be the object of a possible river transport project.

2.09 Transport regulation does not present major problems. Thereare no restrictions on entry to the road transport industry nor arethere regulations assigning routes, commodities or certain types oftraffic to a particular mode. GPMB is the dominant user of rivertransport, but uses road transport when cheaper or more convenient.Transport coordination has, therefore, largely been the result ofoperational practices by GPMB rather than the outcome of careful plan-ning. Road and river transport freight rates are not regulated, al-though GPMB sets rates for its own freight movements. However, passen-ger fares are established by the Government.

2.10 Transport planning has not been an effective and integratedactivity of Government. The Ministry of Economic Planning and Industri-al Development (MEPID) does investment coordination but no detailedtransport planning. MWC has a Planning Unit covering all activities ofthe Ministry. The Unit is headed by an economist who has planningexperience but only limited exposure to the transport sector. The Unithas for the past five years been assisted by an expatriate advisor,mainly for MWC's building activities. Virtually no transport planninghas been accomplished, however, and almost all planning information forthe sector has been assembled by consultants for project related stud-ies. The future role and staffing of the Planning Unit is being definedby the organization study for MWC (paras 2.15 and 3.11).

2.11 Transport sector investment has not always been based on soundeconomic and technical priorities. Instead, it has been stronglyinfluenced by socio-political factors and donor agency preferences. Asa result, a number of transport investments have been either over-designed, premature, or not economically Justified. Most of these

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investments were incurred between FY78/79 and FY81/82 and from FY84/85to the present, when upsurges in road investments took nlace. Followinga severe deterioration in economic conditions in The Gambia. transportinvestments will have to decrease over the coming years. Moreover, itis declared Government policy to reduce the emphasis on transport infavor of other economic sectors and, within the sector, to concentrateon maintenance and rehabilitation. The proposed project will assist theGovernment through MWC's Planning Unit in preparing three-year roll-overinvestment programs based on priorities and studies to determine theneeds and economic justification of proposed investments (para 3.11).During negotiations, agreement was reached that three-year roll-overinvestment programs and annual development and recurrent budgets for thetransport sector will be reviewed with the Association by May 1 of eachyear, up to 1992. Furthermore, agreement was reached that: (i) urgentrehabilitation of transport facilities will be given priority over othertransport investments; (ii) new transport investment and rehabilitationwill not be undertaken unless adequate economic feasibility studies havebeen carried out, the estimated rate of return is at least 15Z, and canbe funded without recourse to funds for maintenance programs requiredunder the transport sector; (iii) the Association, will be consultedbefore undertaking new investments or rehabilitation in the transportsector that exceed US$500,000 equivalent; and (iv) a methodology will bedeveloped by December 1, 1987, and agreed with the Association, forselecting feeder roads to be upgraded. Details of past and proposedinvestments in the transport sector are given in Annex 2-5.

2.12 The treaty that established the Senegambia Confederation in1982 envisages economic integration between the two neighboring coun-tries. Improvements of some short road sections connecting the twocountries are underway under auspices of the Confederation, but they arenot expected to significantly affect transport patterns in the Gambiaduring the project period. Long term effects of the Confederation, onthe other hand, could be considerable but will largely depend on agree-ments for economic integration which are still under discussion.

B. The Roads Subsector

2.13 The road system does not suffer from capacity constraints andeven the 11 Km Banjul-Serekunda section, which is now being rebuilt as afour lane highway, does not have the congestion normally experienced incapital cities. Ferry capacity at various river crossings can causetraffic delays, but this is primarily due to mechanical failures offerries. The Gambia has about 6,000 motor vehicles, but registrationstatistics are flawed. The Government is taking measures to correctthis deficiency. Annex 2-6 shows the estimated vehicle fleet.

2.14 Road administration of the national network comes under theDirectorate of Technical Services (previously Public Works Depart-ment-PWD) in MWC, through the Engineering Division which has the techni-cal responsibility for design, construction and maintenance of bothroads and public buildings; maintenance work is carried out by threeprovincial divisions (Northern, Western and Eastern). The MWC PlanningUnit and the Main Store come under the Permanent Secretary. The presentstructure of MWC will be modified based on a recent reorganizationstudy (para 2.15). The provincial divisions have grading units forgravel roads and shoulders, and premix units for preparing patching

material for paved roads, as well as manual gangs for labor-based tasks.Supply of cockle shells are managed by headquarters -which contractsnearly all maintenance related transport. The provincial divisionscarry out preventive maintenance of its allotted equipment, but repairwork is undertaken by the central workshop of the Mechanical EngineeringDivision (NED) which comes under the Directorate of Technical Services.In the past, routine maintenance programs have been adversely affectedby inconsistent supply of fast moving spare parts -nd fuel for theequipment (para 2.26). MWC, through the Main Store, also supplies goodsand macerials to all government departments and, through NED, maintainsall public vehicles and equipment except those of the Ministry ofAgriculture and the Police.

2.15 The present organization does not permit efficient executionof road and equipment maintenance, or control of operations among thevarious divisions. Furthermore, the lines of responsibility within MWCand between head office and the provincial divisions are not clearlydefined. To enable more efficient management of the road network, astudy is being completed by consultants to recommend the most appropri-ate organization, including separation of MWC's buildings and otherresponsibilities from road maintenance activities, and the role of MWCin transport planning (para 2.10). Furthermore, the functions, respon-sibilities and accountability of each division in MWC will be definedand streamlined (para 3.10). The scope of the organizational andmanagerial changes in MWC was agreed at negotiations. The enactment ofthe new MWC structure is a condition of effectiveness. Annex 2-7 showsthe present and proposed new organization of MWC.

2.16 Seven newly graduated civil engineers have returned to TheGambia over the past two years and the three provincial divisions areeach headed by a Gambian engineer. Also, an NED technician will com-plete a mechanical engineering course in UK in 1986. MWC now hassufficient professional engineers to manage its operations; furtherpractical training is planned, under a Kuwait Fund grant, for some ofthe civil engineers. The Directorate of Technical Services presentlyhas an established staff of 959 plus 355 "wage earners". Under anongoing Government program to reduce the Government payroll, the Direc-torate, at the end of 1985, reduced established staff by 77 positionsand wage earners by 441 positions. However, several divisions are stilloverstaffed at semi-skilled and unskilled working levels. requiredstaffing levels and manpower development needs in MWC are being deter-mined during the reorganization study in coordination with an ongoingODA (UK) financed civil service study which is scheduled to be completedby June 1986. During negotiations, agreement was reached that furtherstaff reductions in MWC would be carried out in accordance with targetsagreed with the Association after completion of the ongoing civilservice study.

2.17 Training operations are being conducted both internally and atlocal training institutions in the Banjul area. These activities arecoordinated by the Chief Engineer (Engineering Division) with assistanceprovided by consultants under the First Project and a USAID sponsoredproject (para 2.18). In-house training is centered around road mainte-nance activities, and equipment and workshop wanagement. In October andNovember 1985, MWC's Deputy Chief Engineer and Training Officer partici-pated in a seven-week course, run by the ILO Training Center in Italy,

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Kenya and Tanzania, financed under the First Project. During thecourse, an outline training program for MWC was prepared by the twoparticipants. In addition, MWC personnel attend courses at The GambiaTechnical Training Institute (GTTI) and the Management DevelopmentInstitute (MDI) on a released time basis. Some of the GTTI courses arerecognized in the United Kingdom and lead to London City and GuildsCertificates. A major constraint to training is extensive illiteracy atmiddle to lower staff levels. This issue is being reviewed by IDA withthe Ministry of Education regarding the development of an in-housefunctional literacy program. The Second Project's training componentwill support the continuation of ongoing activities with emphasis onstrengthening MWC's internal training capability, as well as at GTTI andMDI (para 3.10). Annex 2-8 outlines the functions of GTTI and MDI.

2.18 Equipment management is the main responsibility of MED. Thecentral workshops, presently located near Banjul port in old flying boathangers, will be relocated in mid-1986 to a new facility, financed byUSAID, at Kotu about 14 km from Banjul. Consultants are preparingprocedures for equipment, workshop and stores management and will trainlocal staff and workshop instructors until the end of tl- USAID projectin September 1986. However, this will not provide sufficient trainingfor efficient management practices to be sustainable, and furtherassistance will be provided under the project (para. 3.07). To date,MED has not been authorized to charge fully for its services to thevarious government agencies. A realistic charging system for mechanicalservices to enable MED to function efficiently is being worked out byMWC and the USAID consultants. The principles of MED's charging systemwere agreed at negotiations; the detailed list of charges will besubmitted for the Association's approval by June 1, 1986. The Govern-ment's publication of the charges to be paid to MED, together withadequate allocations in the FY86/87 budget to pay for MED's services,are a condition of effectiveness, with implementation to start by July1, 1986, the beginning of the Government's fiscal year.

2.19 Accounting and internal auditing procedures have basicallybeen adopted from the British system. There are, however, negligencesand inefficiencies in the follow up of the required procedures. Sometraining in cost accounting was provided under the First Highway Mainte-nance Project but further improvements are needed to consolidate theachievements and to ensure accuracy and timely availability of pertinentinformation on such matters as spending authorized through the approvedbudget. Consultants under ongoing projects are installing systems forinventory control, stores accounting, workshop job costing, and cost andperformance accounting for routine and periodic maintenance. These aresimple systems which will be adapted under the Second Project formicrocomputer use. Assistance to install, operate and train staff infinancial and cost accounting procedures will be provided under theproject (para. 3.07). MWC's Internal Audit Branch functions directlyunder the Ministry of Finance and Trade. Its functions are to detecterrors and lack of reliability of accounting records and to ensure thatGovernment procedures are adhered to. However, MWC lacks sufficientqualified staff to carry out the above tasks efficiently. The computer-ization of records together with on-the-job training and courses at MDIunder the project should enable a small staff of accountants and costcleri to- perform adequately. Annex 2-9 provides details of MWC budget-ing, accounting and costing practices.

2.20 Revenue from road users is collected from taxes on fuel,lubricants, vehicle and spare part imports, and annual licenses. Fueland vehicle import taxes provide the bulk of the revenue. All revenuegoes to the national treasury. As a result of increases in internalprices, because of devaluation, and shortages in local supplies, becauseof foreign exchange shortfalls, fu"l consumption has been decreasingsince its peak in 1980. Although no annual traffic counts are avail-able, traffic levels have undoubtedly declined over recent years. Roaduser taxes yield more than is required for road maintenance and overallroad investment, including neu roads. No additional efforts are there-fore required for resource mobilization purposes, but a better alloca-tion of scarce resources is needed as outlined in paragraph 2.11 (Annex2-10 and Annex 2-11).

2.21 Road financing is provided through the recurrent budget, thedevelopment budget and external loans and grants. The recurrent budgetfinances expenditures for road maintenance. Because the various func-tions of MWC are not clearly separated, data on road maintenance expen-ditures are not precise. However, since FY77/78 the annual budget forsupplies and contracts has steadily declined. The First Highway Mainte-nance Project financed all costs (including wages) for regravelling andresealing works. Under the Second Project, the Government's participa-tion in routine maintenance will be increased from mid-1987 (para 3.19).MWC staff salaries come under a separate heading in the recurrentbudget. At negotiationas, agreement was reached that the Government willmodify the recurrent budget presentation by providing separate alloca-tions for each MWC division, and will provide sufficient funds toundertake adequate annual road maintenance programs (para 2.11). Annex2-12 provides details of past recurrent budgets for road maintenance.

2.22 Transport sector rehabilitation and new construction projectsare financed mostly by loans and grants, with local funds provided fromthe development budget. Development budget levels are determined by theMinistry of Finance and Trade and have been governed more by the avail-ability and amount of foreign financing than priorities within andbetween sectors. Over 40Z of the development budget has, in the recentpast, been allocated to transport projects. Bank economic missions havebeen discussing with the Government reductions in public investmentlevels and changes in sectoral distribution for the three-year periodcommencing FY86/87. As a result, less funds are expected to be avail-able for the transport sector and more rational allocations will be madewithin the sector, as outlined in paragraph 2.11.

C. IDA Involvement in the Transport Sector

2.23 The Bank Group has financed three projects in the transportsector: the First Banjul Port Project (Credit 187-GM, US$2.1 million,May 1971), a Highway Maintenance Project (Credit 897-GM, US$5.0 million,March 1979), and the Second Banjul Port Project (Credit 1266-GM, SDR 5.9million, September 1982). The First Port Project was satisfactorilycompleted in late 1975, while the civil works under the Second PortProject were substantially completed in 1984. The project costs arewithin the estimates, but land reclamation works have been delayedbecause of unstable 'foundations and will not be completed until mid-

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1987, about 18 months beyond the original completion date. The delayvill not unduly affect port operations.

2.24 Execution of the First Highway Maintenance Project proceededreasonably well, and the objectives of the project have been met satis-factorily or exceeded. The project was substantially completed in early1986, two years after the original completion date. The First Projectconsisted of a four-year maintenance program, including routine mainte-nance of 780 km of roads, regravelling of 190 km of major lateriteroads, and studies for a follow-up maintenance program and for explora-tion of locally occurring aggregates. The routine maintenance componenthas been successful in prolonging the life of th.e existing paved roadsystem. The regravelling works have resulted in upgrading of importantsections of the North Bank Road. A small resealing unit was set up in1983 and will complete some 22 km under the First Project. This opera-tion, which was outside the original project description, has beensuccessful in salvaging a number of short sections of roads especiallyin the Banjul area. Overall, the conditions of the primary and secon-dary roads have not further deteriorated since the start of the FirstProject, and the regravelled and resealed road are in much bettercondition than before.

2.25 Fifteen cost clerks have received formal training locally andtwo workshop personnel were sent for courses in the U.K. under theproject, while on-the-job training was provided for the staff of theregravelling and resealing units as well as for 20 road foremen. At thestart of the project there were no Gambian engineers in MWC below seniormanagement level. The recent return of seven new civil engineeringgraduates should enable eventual institutional sustainability of roadmaintenance operations.

2.26 The main problems which delayed the project were outside thecontrol of MWC. The Government's insistence that spare parts andsupplies be procured through local suppliers, who carry little or nostock, resulted in prolonging the down time of equipment requiringrepairs. Shortage of local funds compounded the difficulties. Theprocurement problem will be addressed under the new project through theuse of international shopping (para 3.18), and funding constraints willbe alleviated by the setting up of revolving funds for IDA and Govern-ment funds (paras 3.21 and 3.22).

III. THE PROJECT

A. Project Background and Objectives

3.01 The project scope, prepared in 1983 by MWC consultants, wasreduced in 1984 and again at appraisal in January 1985, to take intoaccount the country's financial constraints. The main objective of theproject is to support MWC in carrying out a four-and-one-half-year (1986to mid-1990) road maintenance and upgrading program comprising: (i)continuation and expansion of the road maintenance program initiatedunder the First Project; (ii) rehabilitation of the highest prioritysections of the paved network; (iii) strengthening of the organizationand management of MWC to improve the efficiency of road and equipmentmaintenance; (iv) introduction of sound transport planning procedures;

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and (v) assistance to domestic contractors to enable their more effec-tive participation in road maintenance activities.

B. Project Description

3.02 To assist in fulfilling the objectives, the project wouldprovide financial assistance for the following components:

(a) Road Maintenance Program:

(i) regravelling, resealing and routine maintenance of thenational and local road networks;

(ii) experimental low-cost paving of gravel road sections;

(iii) equipment and vehicles, including initial stocks of spareparts; and

(iv) road maintenance and workshop management assistance.

(b) Road and Bridge Rehabilitation:

i) reconstruction of Bund Road (3.5 km), the main access tothe Banjul Port, and strengthening of deformed sectionsalong 150 km of the South Bank Road; and

(ii) reconstruction of Brumen Bridge on the South Bank Road.

(c) Institutional Strengthening:

(i) technical assistance to MWC for implementing its reorgan-ization, for transport planning and studies, and forauditing;

(ii) training program for MWC staff; and

(iii) technical assistance and training for domestic contrac-tors.

C. The Road Maintenance Program

3.03 Routine road maintenance operations presently come under theresponsibility of MWC's three provincial divisions. Under MWC's reor-ganization, two Roads Divisions will be created (para 3.16). The lengthof roads to be maintained by MWC will increase from about 780 km underthe First Project to about 1,300 km under the Second Project, comprisingabout 450 km of paved roads and 610 km of gravel roads of the nationalnetwork, as well as 45 km of paved local roads in Banjul City andKanifing Urban District and about 200 km of gravel local roads whichhave national importance. UNSO will provide financial assistance overtwo calendar years (1987-88) for maintenance of 340 km of the gravelroads. A further 150 km of gravel roads in the Northeast may be addedto the maintenance program by the end of the project implementatior.period. The most appropriate organization and methodology for carryingout labor-based routine maintenance operations, comprising vegetation

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control, culvert and ditch cleaning, and patching of gravel and pavedroads, will be tested under a two-year pilot project with ILO (SIDAfinanced). This project started in early 1986, and will includemaintenance of some 60 km of paved and 50 km of gravel roads south ofthe Gambia river. Two systems will be tested: (i) a lengthman systemwhere 3 to 5 km would be allotted to a person living nearby; and (ii) apetty contract system where local communities would organize themselvesinto working gangs. The pilot project would also test the use oftractor-towed graders for smoothing low-trafficked gravel roads. Theeffectiveness and cost of these operations will be monitored andcompared with MWC's present procedures of manual gangs travelling dailyto work sites from the regional offices. The preliminary results of thethree systems will be reviewed jointly by MWC, ILO, EEC, UNSO and IDA byJune 1, 1987. This agreement was confirmed at negotiations. Anymodifications to MWC's routine maintenance practices and equipmentholdings and use (para 3.12) will be incorporated into the annual roadmaintenance programs from July 1, 1987. Annex 3-1 details local roadsto be included in the road maintenance program.

3.04 Periodic maintenance of national roads will continue to becarried out by MWC with continued managerial and technical assistance byconsultants engaged under the First Highway Maintenance Project. Allperiodic maintenance activities are presently carried out by forceaccount, except for some Detty contracts for the extraction and supplyof cockle shells for resealing works. Regravelling will be continued bythe Unit set up under the First Project, and will complete about 230 kmunder the project. The required production of about 60 km per year hasbeen achieved whenever spare parts and fuel supplies have been suppliedregularly (para 2.26). A further 30 km of regravelling will be con-tracted out by UNSO. The paved road patching and resealing unit startedsystematic cockle shell resealing in 1983, and will undertake about 100km-under the project. A further 130 km will be fog sealed. The period-ic maintenance program would enable MWC to catch up on the work back-logand to initiate systematic monitoring of road conditionr and schedulingof timely regravelling and resealing operations. Annex 3-2 providesdetails of the periodic maintenance program.

3.05 The Gambia has good quality lateritic gravels over most of thecountry, and a relatively dry climate. Roads regravelled under theFirst Project have shown less than expected deterioration and gravelloss, and riding surfaces have often become extremely hard. In someother African countries where this phenomenon has occurred, bituminousseals applied about one year after gravelling have performed well.Under the project, about five km of experimental low-cost paving (aboutUS$20,000/km or under half the cost of traditional paving) will beundertaken along two road sections east and west of Farafeni in order totest the technical feasibility of this approach. Construction andannual maintenance costs will be monitored for these sections, ridingquality assessed, and comparisons made against adjacent gravel sections.Other short sections may also be paved under the experiment. Theeconomic feasibility and financial costs fo_ low-cost paving at differ-ent traffic levels will be determined. Since The Gambia presently hasabout 175 km of gravel roads with 150-250 vpd, this experiment mightshow significant economic benefits in low-cost paving of laterite gravelroads.

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3.06 Renewal and Operation of MWC's Road Maintenance Equipment.Regravelling, resealing and mechanized road maintenance operations villbe carried out with MWC's existing equipment. Past budget constraintsand foreign exchange shortages have not permitted replacement of agedunits since the start of the First Project, when some new equipment wasprocured and overhauls were carried out with assistance of consultants.Equipment and vehicles, including initial stocks of spare parts, will beprocured in two batches under the project. The first batch will fillpresent gaps in the fleet and replace aged units. The second, to becarried out after the June 1, 1987 reviews of labor-based maintenanceprocedures (para. 3.03) and contractor participation in road maintenance(para. 3.12), will replace additional aged units. Consideration willalso be given to the availability of UNSO equipment, which is presentlybeing used for their feeder road upgrading program in the Northeast.Spare par-s, fuel, tools and other imported materials required for roadmaintenance operations will be procured under the project using interna-tional suppliers, where appropriate, to avoid the recurrent shortages inthe local market experienced under the First Project, and to ensure moreefficient use of equipment. MED will also be provided with an initialstock of spare parts for vehicle maintenance. Annex 3-3 providesdetails of equipment procurement.

3.07 Road Maintenance and Workshop Management. In order to contin-ue the training of MWC staff in all areas of road maintenance managementand operations, the consultants financed under the First Project willcontinue their services (125 m-m) under the Second Project. The teamwill also include an accountant to assist in streamlining MWC's finan-cial accounting procedures and to firmly establish the costing systemdeveloped under the First Project (para 2.19). In order to follow up onthe USAID project, MWC will also engage two specialists (25 m-m) toassist in managing the new central workshop under MED and in runningrelated training programs. MED's main counterparts would be the seniormechanical engineer and the stores superintendent who would receiveon-the-job training. The technical assistance would actively assist MWCstaff in managing the road and equipment maintenance operations up tomid-1988, after which assistance would be limited to short-term visitsover the remaining projert implementation period. The terms ofreference and counterpart staffing were agreed at negotiations. Annexes3-4 and 3-5 provide details of the Road Maintenance and Workshoptechnical assistance, respectively.

D. Road and Bridge Rehabilitation

3.08 The follow-up maintenance study (para 2.24) indicated thatabout 170 km of the paved South Bank Road need strengthening. However,because of financial constraints, about 150 km of the road betweenYundum and Soma would be partially strengthened and the riding surfaceimproved by laying an asphalt-mix levelling course. Further siteinvestigations will be required, and the extent and details of thesolution adopted will depend on available financing. In addition, the3.5 km Bund Road, which links Banjul Port to the South Bank Road, needspavement reconstruction and raising where it crosses an area subject toflooding. The reconstruction cost is estimated at US$250,000/km.Detailed engineering is being carried out under the PPF (para 3.13).

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3.09 The 117 m long, single lane, Brumen Bridge, built 20 yearsago, is in poor condition because of deterioration of the concretesuperstructure wWh.h is composed of unsuitable laterite aggregates. Thepile foundations, which were built for a future two-lane bridge, arebasically sound. Under the project the piles will be strengthened, thesuperstructure will be rebuilt to higher standards for heavy trucktraffic, and the deck widened to two-lane (9-10m) width. The construc-tion cost is estimated at US$750 per square meter. Detailed engineeringis being carried out under the PPF (para 3.13).

E. Institutional Strengthening and Trainnag

3.10 Technical assistance (23 am-) will be provided to assist MWCin implementing efficient management procedures under its new organiza-tion (para. 2.15), and, in coordination with other consultants, inpreparation of reporting and monitoring requirements at the differentmanagement levels. Training assistance (6 m-m) will have two majorobjectives: (i) to improve MWC management and use of personnel throughthe development of effective personnel management policies and proce-dures; and (ii) to improve MWC management capability and staff produc-tivity through various training and upgrading programs. MWC's TrainingOfficer will be assisted in preparing details of the training program byMarch 1, 1987, and in monitoring its effectiveness through periodicvisits during the project implementation period. The project will alsoprovide equipment, materials and supplies for upgrading MWC's headquar-ters and provincial offices and for in-house training, and training atGTTI and MDI; support tuition costs for selected GTTI and MDI courses;and finance expenses for overseas seminars and work study tours forprofessional staff. The Personnel Development Program for MWC and termsof reference for management and training assistance were agreed atnegotiations (Annex 3-6).

3.11 The future role and functions of MWC's Planning Unit is beingdetermined under its reorganization. The Government's transportplanning capabilities require strengthening and 36 m-m of assistancewill be provided under the project. Additionally, studies required toassess the economic role of river transport in The Gambia will becarried out under the project (para 2.08). The functions of MWC'sPlanning Unit and outline term of reference for technical assistancewere agreed at negotiations (Annex 3-7).

3.12 Domestic Construction Industry. In order to have a betterknowledge of the physical and financial capacity of the small domesticconstruction industry, a consultant (4 m-m) will be engaged to (i)undertake a six-week study and recommend a plan of action to utilize,more effectively, private firms in road and building maintenance activi-ties, and (ii) conduct courses and assist domestic contractors inimproving their efficiency and cost control. The study will be com-pleted in early 1987, s0 that MWC would be able to determine its futureequipment requirements for road maintenance (para 3.06). During negoti-ations, the Government confirmed its commitment to increase the use ofcontractors in road maintenance activities and agreement was reached onthe terms of reference for the study and training of domestic contrac-tors (Annex 3-8).

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F. Refinancing of PPF

3.13 To assist The Gambia in preparing project components, theAssociation granted an advance of US$550,000 in the form of a PPF(US$200,000 in July 1985 and a further US$350,000 in December 1985).The funds are being used to finance: (i) a study to recommend changes inMWC's organization; (ii) detailed engineering for reconstruction of BundRoad and Brumen Bridge; (iii) redesign of Laminkoto-Passimus Road tofeeder roads standard, and economic re-evaluation; and (iv) continuationof the road maintenance consultants during the interim period betweenthe end of the First and start up of the Second Project. The studiesare well underway and detailed engineering is scheduled to be completedby mid-1986.

G. Project Cost Estimates and Financing

3.14 The estimated total cost of the project including MWC sala-ries and wages, and contingencies, is US$16.4 million equivalent. Noduties or taxes are to be levied against project items, except for thosepaid by domestic contractors engaged in road maintenance activities.The foreign exchange component is about US$13.2 million, or 80% of thetotal cost. Base costs have been estimated at February 1986 prices.Physical contingencies average about 3X of base costs, and comprise 10Xfor road and bridge rehabilitation, 52 for institutional strengtnening,and OZ for the road maintenance program which covers a four-and-one-half-year (1986 to mid-1990) time slice and for which no physicalcontingencies are normally provided. Price contingencies average 17% ofbase costs plus physical contingencies, and are based on estimatedforeign inflation of 72 for 1986 and 1987, about 7.5% for 1988, 7.7% for1989, 7.6% for 1990, and 4.5% for 1991 onwards. Estimated rates ofinflation on foreign costs have been applied to both foreign and localcosts. This assumes that the exchange rate (taken as US$1.0 - Dalasis5.2 for base costs estimates) will be adjusted for divergences betweenforeign and local rates of inflation. Overall, about 220 n-m of techni-cal, management and training assistance will be provided under theproject. Consultants will also supervise civil works contracts andcarry out transportation studies.

3.15 The project will be externally financed by: IDA (US$5.8million equivalent), AfDF (US$4.5 million equivalent), EEC (US$2.0million equivalent), UNSO through financing still to be secured (US$0.6million equivalent), and UNDP (US$0.7 million equivalent) amounting toUS$13.6 million equivalent. The remaining US$2.8 million equivalentwill be provided by the Government. SIDA has separately providedUS$120,000 equivalent for the ILO-executed pilot routine maintenanceproject (para 3.03). Cross effectiveness conditionality has beenprovided for EEC, UNSO and UNDP financed components. UNSO will co-finance feeder road maintenance during calendar 1987-88. The AfDFcofinanced package is self-contained and modification in length of roadsto be strengthened, because of financing constraints, or delays inimplementation, should not seriously affect the performance of theIDA-funded components and the road maintenance program. IDA willretroactively finance up to US$300,000 for exrpenditures incurred fromJanuary 1. 1986 for the road maintenance program. External financingfor periodic and routine maintenance will cover 60% of total directoperating costs over the project implementation period. The

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Government's contribution to the project will amount to US$1.5 millionequivalent for local expenditures and US$1.3 million equivalent for MWCsalaries and wages. External financing will cover 801 of total cost or901, excluding wages and salaries. Details of cost estimates andfinancing plan are shown in Annex 3-9.

H. Implementation and Present Status of The Project

3.16 The Permanent Secretary of MPW will have overall responsibili-ty for implementation of the Project, with the Director of TechnicalServices providing coordination of the maintenance program, road andbridge rehabilitation and MED's workshop management. Road maintenance,upgrading and rehabilitation will be executed by the two new RoadsDivisions (East and West); workshop management comes under MED andtraining under the new Administrative Division. The Permanent Secretarywill directly oversee the transport planning component. The roadmaintenance program has been fully prepared. Detailed engineering forreconstruction of Bund Road and Brumen Bridge is underway and prelimi-nary cost estimates have been prepared. Because of the nature of theSouth Bank Road strengthening (para 3.08) detailed surveying and designwill be carried out immediately prior to executing the works; quantityestimates and specifications will be prepared by mid-1986. Rehabilita-tion of Bund Road and the South Bank Road could be carried out under onecontract. The project is expected to be effective in July 1986 and tobe physically completed by June 30, 1991, which allows for a 12 monthslippage in executing the four-and-one-half-year maintenance program.The agreed implementation schedule is shown in Annex 3-10.

I. Procurement

3.17 Procurement arrangements are summarized as follows:

Amounts and Methods of Procurement a/(US$ Millions)

Procurement Method TotalProject

Items to be Procured ICB LCB Other NA b/ Cost

Equipment and vehicles and 1.7 - 0.4 - 2.1initial stocks of spare parts - - (0.4) - (0.4)Road maintenance and paving c| 0.3 0.4 3.9 1.3 d/ 5.9

(0.2) (0.1) (2.8) - (3.1)Road and bridge rehabilitation 4.6 - 0.4 - 5.0Technical assistance, studiesand training - - 2.9 - 2.9

(1.8) - (1.8)Refinancing PPF - - - 0.5 0.5

(0.5) (0.5)Total Project 6.6 0.4 7.6 1.8 16.4

(0.2) (0.1) (5.0) (0.5) (5.8)

a/ Amounts financed by IDA are in parentheses.b/ Not applicable.cl Spare parts, fuel, lubricants, tools, petty contracts and materials.d/ MWC salaries and wages.

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3.18 Procurement of equipment, vehicles, non-proprietary spareparts and bitumen products will be carried out under ICB in accordancewith Bank guidelines. Contracts for supply of goods and materialsestimated to cost less than US$10,000 equivalent (except for fuel), upto an aggregate of US$200,000 equivalent (except for fuel), may beprocured through local shopping. Equipment and spare parts of a propri-etary nature or subject to standardization may be procured with priorIDA agreement on the basis of price quotations from at least threequalified suppliers, with at least two of them operating international-ly. Contracts for road maintenance activities up to US$100,000 may beawarded on the basis of competitive bidding advertised locally. Pettycontracts (under US$10,000 equivalent) for road maintenance activitieswould be negotiated, based on procedures and unit rates established withassistance of the road maintenance consultants. Consultants fortechnical assistance will be appointed in accordance with Bankguidelines. Force account operations will be permitted for roadmaintenance and low-cost paving works. All transactions in excess ofUS$50,000 equivalent will be subject to prior approval by IDA.

J. Disbursements

3.19 Although the project covers a four-and-one-half-year timeslice, disbursements are estimated to follow the historic disbursementprofile for IDA financed highway projects in West Africa, i.e. sixyears, as was the case under the First Project. However, initialdisbursements will be greater than historic levels due to refunding ofthe PPF Advance and the initial advance into the Special Account (para3.21). The credit is expected to be fully disbursed by March 31, 1992.IDA financing of road maintenance activities will be progressivelyreduced from mid-1987 with consequential increases in MWC's roadmaintenance budget. The IDA Credit will be disbursed against thefollowing categories, and on the basis of the estimated disbursementschedule (Annex 3-11):

Allocation and Disbursement of IDA Credit

IDA Amount PercentCategory Description (US$ Millions) Financed

I Equipment and vehicles (including initialstock of spare parts), office supplies andmaterials 0.40 100%

2 Road maintenance and paving; direct operatingcosts, excluding salaries and wages: 2.70Expenditures before July 1, 1987 100%Expenditures between July 1,1987 & June 30,1988 80%Expenditures thereafter 60%

3 Technical assistance, audits, studies andtraining 1.65 100%

4 Refunding of PPF Advance 0.55 AmountDue

5 Unallocated 0.50

Total 5.80

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3.20 Disbursements for routine road maintenance, regravelling,resealing and low-cost paving works will be made against statements ofexpenditures (SOF's) using unit rates covering direct operating costs(excluding salaries and wages) for each work item in accordance with theagreed program. Unit rates for force account activities have beenestablished under the First Highway Maintenance Project, and will beupdated and agreed with IDA on a quarterly basis. For contractedactivities, the applicable contract rates will apply. Other disburse-ments will be made against standard documentation. The unit rates forthe road maintenance program to be used from the start of the projectfor disbursement purposes were agreed at negotiations. Annex 3-12provides details of the unit rates and Annex 3-13 the annual roadmaintenance targets.

3.21 A revolving fund will be established for IDA funds in aSpecial Account opened in foreign currency in the Central Bank of TheGambia. An advance of US$400,000 from IDA funds into the SpecialAccount will be made after the Declaration of Effectiveness, to coverabout four months of project expenditures. Disbursements may be madefrom the Special Account for all project expenditures eligible for IDAfinancing. The Special Account will be replenished following applica-tions for reimbursement by MWC, together with appropriate supportingdocumentation or SOE's, as well as bank statements. Reimbursementapplications will be submitted to IDA whenever accumulated withdrawalsamount to US$100,000. The amount of IDA replenishment will not exceedthe authorized allocation.

3.22 Counterpart funds will be made available by the Governmentthrough its budgetary allocations. A revolving fund for local suppliesand petty contracts will be established for counterpart funds in aProject Account to be administered by the Accountant General. Aninitial deposit of Dalasis 40,000 will be made by the Government beforeIDA advances the initial deposit in the Special Account. MWC willprepare, one month prior to each quarter, a work program and relatedestimates of expenditures for project execution during the forthcomingquarter. The required counterpart funds will be deposited by theGovernment into the Project Account before the end of the first month ofeach quarter. IDA replenishments of the Special Account will be condi-tional on the Government having deposited the required counterpart fundsinto the Project Account. Only eligible project expenditures will bemade from the Project and Special Accounts. MWC, with assistance of theroad maintenance consultants, will manage all accounting records and MWCwill prepare supporting documentation and SOE's.

K. Reporting and Auditing

3.23 Quarterly progress reports will be prepared by MWC with theassistance of consultants and sent to the Association within one monthafter the end of each quarter. These reports will include: (i) pro-gress achieved against the agreed implementation and disbursementschedules, and key performance indicators; (ii) work programs and costestimates for the coming quarter (para. 3.22); and (iii) statements forthe revolving funds. External auditors acceptable to the Associationwill be engaged under the project to carry out annual audits of theproject as well as the Project and Special Accounts in accordance withthe Bank's Guidelines for Auditing. Each Audit Report, together with a

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management letter, will be sent to the Association not later than sixmonths after the end of the fiscal year. The reporting and auditingrequirements were agreed at negotiations.

IV. ECONOMIC EVALUATION

A. Nature of Project Benefits

4.01 The present deterioration of the highway system under thejurisdiction of MWC does not yet impose serious restrictions on trans-portation. The maintenance program, however, is urgently needed toprotect the highway investment, and to prevent further deterioration inroad conditions which would cause physical bottlenecks in transport inthe near future and would also necessitate larger future investments forroad rehabilitation. Since the costs of potential transport bottlenecksare difficult to estimate, the project benefits quantified are mainly inthe form of savings in road maintenance and road user costs generated bythe project. Other benefits, such as time savings or positive effectson agricultural supplies and production because of reduced transportcosts have not been quantified.

4.02 Traffic volumes for the various roads are mainly based ontraffic counts made in 1982; average daily traffic (ADT) in 1984 isassumed the same as 1982 ADT, as economic activity remained stagnantduring this period. An annual growth-rate of 5% has been assumed forfuture years which is in line with the recovery scenario recentlyoutlined in the Bank's report on the Development Issues and Prospectsfor The Gambia. The economic return calculations for the maintenanceprogram were also tested for a zero traffic-growth assumption. Trafficon the project roads is not expected to be influenced by the SenegambiaConfederation during the project period. Annex 3-2 presents the esti-mated 1984 traffic levels.

B. Economic Returns and Sensitivity

4.03 The economic benefits of the project have been calculated forall main components: maintenance of gravel roads, maintenance of pavedroads, rehabilitation of 150 km of paved road sections and the BrumenBridge. The internal economic rate of return (ERR) on the gravel roadmaintenance component is estimated at 28%. The maintenance componentfor paved roads has a much higher economic justification which is causedby the greater state of deterioration of the roads and by higher trafficvolumes. The estimated ERR on this component is 70X. The estimated ERRon the entire maintenance program for the paved and gravel road networkcovered under the project is about 39%. The rates of return were testedfor a shortfall in benefits by 20%, an increase in cost by 20% and azero percent traffic growth. The resulting estimated ERRs are 25%, 27%and 28%, respectively.

4.04 Pavement strengthening of sections of the South Bank Road, theprincipal overland link with the interior of the country, is of highpriority. The road sections are in fair to poor condition and, withoutany strengthening, will continue to deteriorate rapidly. The sectionsto be improved carry traffic volumes of 1,800 vehicles per day (vpd) forYundum-Brikama (10 km), 540 vpd for Brikama-Kalagi (100 km) and 480 vpdfor Kalagi to near Soma (40 km). The combined estimated ERR for these

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road sections is 342. The Bund Road carries some 1,900 vpd. It bypass-es Banjul's city center for most traffic to and from the port and ferry,and has been designated as the official truck route to the port. Theroad is in poor condition and some stretches are subject to periodicflooding. The estimated ERR for the improvements of the Bund Road isabout 32X. If the Brumen Bridge is not improved soon, its rapid deteri-oration will lead to severe load restrictions and probably to a disrup-tion of road service. The ERR on this investment is estimated at 49Z.

4.05 The composite ERR from total project investments, excludingtechnical assistance for institutional strengthening which could not beallocated to particular road programs, and excluding PPF advance whichis treated as a sunk cost, is estimated at 38%. These quantifiedcomponents cover 79% of the total project costs. More details on theeconomic analysis are presented in Annex 4.

Project Risks

4.06 Based on the satisfactory implementation of the First HighwayMaintenance Project and the commitment of the Government to reorganizeMWC and improve its management procedures, there would be no major risksconcerning project implementation. However, further aggravation of TheGambia's economic situation could limit funds for road maintenance. TheAssociation will annually review the road investment and maintenanceprograms and agree on budget levels for the annual road maintenanceprogram. A second risk concerns the extent of the Government'slong-term commitment to institution building. A weakening of Govern-ment's decision to streamline existing procedures in MWC and to delegateresponsibilities to line managers would not unduly affect implementationof the project but would extend the period needed for expatriate techni-cal assistance. Through careful monitoring and follow-up, the Associa-tion will try to reduce this risk. Moreover, an important element ofinstitutional strengthening is the strong technical assistance supportto implement the project over the first two years (para 3.07), and totrain engineers, planners, managers and technicians in their tasks.This will, in itself, enhance the overall management efficiency of MWC,and will facilitate the establishment of sustainable operational proce-dures.

V. AGREEMENTS REACHED AND RECOMMENDATION

5.01 During negotiations, agreement was reached or confirmed on thefollowing points:

(a) Annual reviews of three-year roll-over investment programs andannual development and recurrent budgets for the transportsector by May 1 of each year, up to 1992; with the agreementthat: (i) urgent rehabilitation of transport facilities willbe given priority over other transport investments; (ii) newtransport investment and rehabilitation will not be undertakenunless adequate economic feasibility studies have been carriedout, the estimated rate of return is at least 15%. and can befunded without recourse to funds for transport maintenanceprograms; (iii) the Association will be consulted beforeundertaking new transport investments over US$500,000equivalent; and (iv) a methodology will be developed by

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December 1, 1987 and agreed with the Association for selectingfeeder roads to be upgraded (para 2.11);

(b) Scope of the organizational and managerial changes in MWC(para 2.15);

(c) Further staff reductions in MWC will be in accordance willtargets agreed with The Association after completion ofongoing civil service study (para 2.16);

(d) The principles of MED's charging system for workshop services;the list of charges to be submitted for the Association'sapproval by June 1, 1986; implementation to start by July 1,1986 (para 2.18);

(e) Modify the recurrent budget presentation by providing separateallocations for each MWC division, and provide sufficientfunds to undertake adequate annual road maintenance programs(para 2.21);

(f) Review by MWC, ILO, EEC, UNSO and IDA of routine maintenancemethods by June 1, 1987; any modifications in MWC's mainte-nance practices and equipment holdings and use will be incor-porated into annual road maintenance programs from July 1,1987 (para 3.03);

(g) Terms of reference and counterpart staffing for road andworkshop management assistance (para 3.07);

(h) Personnel Development Program for MWC and terms of referencefor management and training assistance (para 3.10);

*i) The functions of MWC's Planning Unit, and terms of referencefor technical assistance to strengthen transport planning(para 3.11);

(j) Government commitment to increase the use of contractors inroad maintenance activities, and terms of reference for thestudy and training of domestic contractors (para 3.12);

(k) Unit rates for the road maintenance program to be used fromthe start of the project for disbursement purposes (para3.20);

(1) Reporting and auditing requirements (para 3.23);

5.02 Conditions of Effectiveness

(a) Enactment of the new MWC structure (para 2.15);

(b) Publication of charges to be paid to MED, together withadequate allocations in FY86/87 budget to pay for MED'sservices (para 2.18); and

(c) Cross effectiveness conditions with EEC, UNSO and UNDP fi-nanced components (para 3.15).

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5.03 Conditions of Disbursements

(a) Initial deposit of Dalasis 40,000 by Government in the ProjectAccount before IDA advances the initial deposit in the SpecialAccount (para 3.22);

(b) IDA replenishments of the Special Account to be conditional onthe Government having deposited the required counterpart fundsinto the Project Account (para 3.22).

5.04 Subject to the above terms, the proposed project is suitablefor a Credit to the Government of The Gambia in the amount of US$5.8million equivalent, on standard IDA terms.

WAPT1February 1986

THE GAMBIA

SECOND HIGHWAY MAINTENANCE PROJECT

Banjul Port Traffic, 1974-83('000 Freight Tons)

FY73/74 FY74/75 FY75/76 FY76/77 FY77/78 FY78/79 FY79/80 FY80/81 FY81/82 FY82/83 FY83/84A. Imports

a. Dry Cargo 92 92 117 150 215 214 237 212 164 147 221

b. Petroleum Products 24 22 33 31 36 48 45 52 35 40 44 9

Total Imports 116 114 150 181 251 262 282 264 199 187 265

B. Exports

a. Dry Cargo 41 53 52 57 68 65 74 43 42 78 63

b. Groundnut Oil 16 17 18 18 11 13 10 8 5 11 112

Total Exports 57 70 70 75 79 78 84 51 47 89 75

Combined Total 173 184 220 256 330 340 366 315 246 276 340

Source: Statistics Department

WAPT1February 1986

- 22 - ANM 2-2Die GSI

SIW= HIGZ H:rI PD

Bmjtdl Airport Traffic

FY75/76 F76/77 F7/78 F/78/9 FY79/80 7M/81 EY81/82 FY82/83 73/84 7184/85

Pa_eq TtfiSdduDi.baddrvg 9,901 12,576 14,260 17,336 21,370 20,927 17,921 23,382 20.591 24,257Ewihngr 11,215 13,324 15,166 18,970 22,064 21,992 19,142 23,630 21,095 24,431Tnmsklt 15,341 17,093 13,891 20,170 21,484 31,366 27,016 22,837 23,707 27,064

N61zlei iCralat)DlnuuHbarldr6 21,116 19,505 15,769 25,907 23.822 19,029 13,331 26,745 39,491 45,861~Eddiaicg 20,513 19,473 15,389 23,973 19,654 17,034 10,479 26,730 39,396 40.593TnRau 77 - 168 53 - 5 - - - -

P d (Othr)DIuimbaridig 810 578 406 4 423 774 305 518 43 1,157EzrIiikbg 877 544 412 256 524 857 304 481 1,004 1,185Irsnsit - 9 - - 102 258 377 256 358 567

Dlbinbaddug - 479 389 559 42 1 38 25 72 8PodrkLiag - 289 477 34 40 1 8 27 46 8Transit - - 15 - 40 - 264 676 188 -

TotalDbiNNserdmidg 31,827 33.138 30,824 43,806 45,657 40,731 31,595 50,670 60,197 71,283

-ftidnv 32,605 33.630 31,444 43,233 42,282 39,884 29,933 50.868 61,541 66,217frmisfd 15,418 17,102 14,074 20,223 21,626 31,629 27.657 23,769 24,253 27,631

n (kg)

35,379 47,764 45.466 52,553 59.005 56.815 52,581 54,127 45,470 41,184sTnolkfag 8,774 9,809 11,119 13,027 15,141 11,404 10,038 11,585 11.853 9,731

Total !4,J53 57,573 56,585 65,580 74,146 68.219 62,619 65,712 57,323 50,915

CaWo H^RAD1(ng x)

Disen irsidng 427,122 443,963 657,193 559.688 634.912 506.246 737,381 831,042 957.416 935,823Edorki% 77,745 177,035 141,517 211,270 159.263 191,092 245.769 201,199 208,373 407.753

Total 504,867 620,998 798,710 770,958 794.175 697,338 983,150 1,032,241 1,165,789 1,343,576

S:ce: Statistics Departmit

wAryFdmuaiy 1986

- 23 -

ANNEX 2-3

THE GAMBIA

SECOND HIGHWAY MAINTENANCE PROJECT

Gambia River Traffic('000 Tonnes)

Fiscal Years: FY76/77 FY77/78 FY78/79 FY79/80 FY80/81 FYB1/82 FY82/83Groundnuts

From GPMB Depots to:Kaur 31.0 32.8 33.3 16.0 6.4 22.2 39.0Banjul 50.7 49.2 39.1 29.4 21.2 35.9 54.3

Subtotal 81.7 82.0 72.4 45.4 27.6 58.1 93.3

Rice 13.2 11.3 16.9 16.4 15.2 9.1 11.5

Fertilizer 5.5 5.7 4.5 9.9 7.5 7.6 1.9

Other 4.9 7.2 9.5 5.2 7.7 4.5 1.8

Total 105.3 106.2 103.3 76.9 58.0 79.3 108.5

Source: Statistics Department

WAPTIFebruary 1986

THE GAMBIA

SECOND HIGHWAY MAINTENANCE PROJECT

Road Network Evolution(in Km)

PRIMARY ROADS SECONDARY ROADS LOCAL ROADS TOTAL NETWORK

YEAR PAVED GRAVEL EARTH TOTAL PAVED GRAVEL EARTH TOTAL PAVED GRAVEL EARTH TOTAL PAVED GRAVEL EARTH TOTAL

1977 235 431 91 757 5 86 361 452 66 10 1088 1164 306 527 1540 23731978 235 431 91 757 5 113 334 452 66 16 1097 1179 306 560 1522 23881979 235 431 91 757 5 186 261 452 66 45 1068 1179 306 662 1420 23881980 265 401 91 757 5 215 232 452 66 53 1060 1179 336 669 1383 23881981 355 311 91 757 5 229 218 452 66 53 1060 1179 426 593 1369 23881982 429 237 91 757 5 355 92 452 66 65 1048 1179 500 657 1231 23881983 429 237 91 757 5 360 87 452 66 137 976 1179 500 783 1105 23881984 442 224 91 757 5 388 59 452 66 182 931 1179 513 794 1081 2388

Source: MWCWAPTIDecember 1985

1

- 25 -ANNEX 2-5

THE GAMBIA

SECOND HIGHWAY MAINTENANCE PROJECT

Transport Investments

1. A broad review of the Government's recent investments andcurrent investment plans indicates progress in developing the transportsystem, but also some problems in establishing priorities. Theseproblems are caused by a lack of detailed planning and the fatct thatinvestments are financed almost entirely by foreign donor agencies,which have often not considered fully the country's economic priorities.

2. An example of recent investments which in the long term may beuseful, but are premature and too costly for The Gambia's currenteconomic conditions, is the extension of the runway at Banjul airport toaccommodate B747s. The extenslon was completed some three years ago butso far there is no service by B747s to Banjul and even if there would belimited service, the investment would not have sufficient economicjustification. A second case is the reconstruction of the Banjul -Serekunda highway to four lane standards. Technical improvements wereneeded, but traffic congestion is only limited to short periods and isnowhere near what is normally experienced In capital cities. Stageconstruction would, therefore, have been the preferred solution. Pastdevelopment expenditures for roads are given in Attachment 1.

3. In addition to the above, several investments proposed by theGovernment will require further careful consideration because of theadditional strain they will place on the Government's investment budget,future debt servicing and organization and financing of maintenance.Included in these investments are the planned construction of about 300km of feeder roads. About 83 km are to be built in the Northeast withan ECU 2.75 million (about US$2.0 million) grant from EEC; funds comingfrom Lome II. Another major expenditure requiring careful review is thetentative plan for salvage and restoration of the passenger cruisevessel which recently sank and was not insured (estimated rehabilitationcost about US$2.5m). The vessel was used primarily for tourist cruises,but was underutilized and operated at a substantial loss.

4. A potentially serious problem is the limited attention givento the condition of the ferries and river transport barges and tugs.Substantial rehabilitation is required according to a recent technicalreport. The generally poor condition of the ferry boats is leading tounreliable service and resulting in traffic delays. A project torehabilitate the Banjul-Barra ferry has been agreed with KFW. However,there are no firm commitments for rehabilitation of the other ferries.The fleet of tugs and barges which is used for long distance transportof groundnuts and other bulky goods such as cement and fertilizer issuffering from lack of maintenance. If rehabilitation of the fleet isnot started within the next two to three years, its availability willdecrease with a resulting traffic diversion to road transport. The roleof river transport in The Gambia will be studied under the project.Attachment 2 provides an outline of the FY86/87-88/89 investment programfor the transport sector, the scope of which is being discussed with theAssociation, in light of limitations on development expendituresrequired by the IMF.

WAPT1February 1986

THE GAMBIA

SECOND HIGHWAT MAINTENANCE PROJECT

Past Davelolmant Expenditures for Roads(Current Dalauis '000)

Item FY76/77 FY77/78 7T78/79 7Y79/80 FY80/81 FY81/82 PY82/83 7183/84 7184165(Estimates)

Tourism Access Roads - 301 3,150 837 - 4 20 3,409 9,200Banjul-Serekunda Road 406 581 - - - 42 620 31 -Soma-Voroberi Kundu Road 1 341 7,109 14,462 5,625 1,822 123 - -

Yoroberi Kunda-Basse Road - - - 3,384 11,475 9,210 430 - 5,918Buniadu-Albredu-Kuntair Road 296 - - 334 1,694 2,684 50 --

Feeder Roads Phase I & 2 2,293 2,970 2,598 2,148 108 - - - -

Feeder Roads Phase 3 - - - - 2,004 2,440 - - -

Feeder Roads Phase 4 - - - - - - 450 - 1,900

First Highway Haint. Project - - - 1,430 4,751 1,764 2,650 2,931 3,765

Highway Kaint. Workshop - - - - - 828 875 2,405 7,258New Oyster Creek Bridge - 500 3,405 9,200Laminkoto-Passious Road Study - - - - - - 250 - -Mandinaba-Saleti Road - - - - - -2

Total Cost 2,996 4,193 12,857 22,595 25,657 18,794 5,968 12,181 39,941

(Equivalent Current US$'000) (1,326) (1,855) (6,428) (12,553) (13,869) (8,823) (2,426) (3,480) (9,985)

Source: NEPID

WAPTI1February 1986

- 27 -

ANNEX 2-5Attachment 2

THE GAMBIA

SECOND HIGHWAY MAINTENANCE PROJECT

Outline Transport Sector Investment Program FY86/87-88/89February 1986 Constant Prices (US$ million)

Total Expenditure by Year 3 Year AfterCost FY86/87 FY87/88 FY88/89 Total FY88/89

Banjul-Serekunda Road 10.0 4.0 2.0 - 6.0 -Laminkoto-Passimus Road 4.0 - - 2.0 2.0 2.0Feeder Rds. Upper River Dist. 2.0 1.5 - - 1.5 -Hwy. Maintenance II

- Road Maint. and T.A 1/ 8.5 3.0 2/ 2.2 1.0 6.2 2.3- Road & Bridge Rehab. 4.2 - 2.6 1.6 4.2 -

Banjul Streets Rehabilitation 1.5 - 0.5 1.0 1.5 -Banjul-Barra Ferries Rehab. 1.0 0.5 0.5 - 1.0 -Transgambia Ferries Rehab. 0.7 0.3 0.4 - 0.7 -Yundum Airport (Phase IV) 3.4 - 0.7 1.5 2.2 1.2Bakau/Kanifing Road Rehab. 3.4 1.4 2.0 - 3.4 -River Transport 4.0 - - 0.5 0.5 3.5

Total 42.7 10.7 10.9 7.6 29.2 9.0

1/ Excludes MWC salaries and wages.2/ Includes US$0.8 million of retroactive financing.

Source: MEPID and MissionWAPT1FeLruary 1986

- 28 -

ANNEX 2-6

THE GAMBIA

SECOND HIGHWAY MAINTENANCE PROJECT

Estimated Vehicle Fleet

1976 1977 1978 1979 1980 1983

Private cars 2,200 2,650 2,920 3,143 4,011 2,491

Taxis 889 1,220 1,800 2,597 2,527 1,604

Buses 79 80 85 89 35 100

Trucks 1,092 1,020 980 1,000 1,061 522

Government vehicles n.a. n.a. n.a. (1,181) (920) (817)

Diplomatic vehicles n.a. n.a. n.a. (210) (306) (310)

Total Private andCommercial Fleet a/ 4,260 4,970 5,785 6,829 7,634 4,717

a/ Excludes Government and diplomatic vehicles.

Source: MWC

WAPT1December 1985

-29 AN- 2-7Page 1 of 2

1ll 0 ' lF l 0 : 'j

a

THE GAMBIASECOND HIGHWAY MAINTENANCE PROJECTPROPOSED NEW ORGANIZATIONAL STRUCTURE OF MWC

MINISTER

PERMANENTSECRETARY

~~~~~~~~~~~~~~{E~~~~~~~~~~~~~~~~~~~~~~~.

ROADS ROADS E~PLNGNEING

DI N D N IDIRECTOR OF

UNDER ~ ~ ~ ~ ~ NN TECHNICALNDEl

SECRETARY SERVICES _SI ________ NECR oAR

I , ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~SECRETARY

IMECHANICAL t|| l ; ROADS RI AD ENOGINEERINO ENGINEERING BUILDINGS DIVSIN DIV181N & DIESION ADMINISTRATVE nNH

DIVISION DIVISION E(ET DIVISION DIVISION OI :

L TECHNICAL TECHNICALL__________ ------- r--------- ------ TECHICA

r--- - -- ---

CORPORAT. LTD. COMPAN. DEPARTMENTSOUC GAMTEL CIVIL AVIATON I °

OPA OGAVEIA POSTS I iOPTC AIRWAYS L J

WORLD EANK-30350

- 31 -

ANNEX 2-8

THE GAMBIA

SECOND HIGHWAY MAINTENANCE PROJECT

Training Institutions

1. The Gambia Technical Training Institute (GTTI) was establishedin 1983 with financial support from the World Bank. Enrollment for1983-84 included over 400 students in various full dud part-timeprograms, while projected enrollment for 1984-85 was 354 students.Successful completion of many of these programs leads to recognition bythe London City and Guilds. Apart from training students who enter fromthe education sector, a major emphasis is placed on upgrading workers insupervisory, technical, and commercial job categories. In this regard,there is close support and coordination wit" the various governmentministries and agencies under the direction of the Vice President'sOffice. This support comes primarily through the membership of GTTI'sBoard of Governors which includes two MWC staff members.

2. The Management Development Institute was conceived withfunding from the World Bank and has been in operation for one year. Itis administered much the same as GTTI, through participation of thevarious ministries and under the direction of the Vice President'sOffice. The Institute's mandate is to train middle and upper levelmanagement personnel (grade levels 10-21) in:

(a) general management,(b) financial management and auditing,Cc) personnel management, andCd) project management.

All courses in these areas are custom designed to meet specificallyidentified training needs and requirements for the various ministriesand agencies using the institution. The average tuition costs are aboutD200 to D250 per trainee/week. Technical assistance is being providedto train local counterparts in the various teaching disciplines andmanagement of the school. In addition, the Irish Management Instituteis presently conducting a study of financial management training needswithin The Gambia which will form the basis for future financialmanagement programs at MDI.

WAPT1December 1985

- 32 -

ANNEX 2-9Page 1 of 2

THE GAMBIA

SECOND HIGHWAY MAINTENANCE PROJECT

MWC Budgeting, Accounting and Costing

Budgeting and Accounting

1. Budgeting. MWC prepares its own annual development andrecurrent budgets (including highways). In December of each year, MF&Tissues a circular to all ministries to prepare and submit the budgetestimates for the following year. The Permanent Secretary of MWC thendelegates the responsibility for preparing estimates to the PrincipalAccountant of MWC, who requests all designated spending officers of theMinistry to submit their annual estimates. Once these estimates arefinalized, the recurrent budget is sent to MF&T and the developmentbudget to MEPID which, after making adjustments, finalizes theestimates, incorporates them in the national budget and distributescopies to all concerned in each Ministry before final approval byParliament. Following this, a warrant is then issued to the AccountantGeneral's office by the minister of MF&T authorizing it to acceptexpenditures from MWC based on the approved budget. The SpendingOfficer for KWC, who is the Permanent Secretary, is authorized to issuecheques for supply of goods or services which are cashed at the CentralBank. Within MWC, departmental warrants are issued by the PermanentSecretary to all section heads, who issue subdepartmental warrants toauthorized spending officers in their relative sections. Work Ordersare issued by the spending officers.

2. Accounting. An Expenditure and Liability Ledger (E/L Ledger)is maintained by each spending officer in which expenditures on wages,fuel, materials, petty contracts, purchases of spare parts etc., arerecorded. The E/L Ledgers are kept for each Division of MWC. Based onthe E/L Ledgers, SOEs for expenditures under the First HighwayMaintenance Project were prepared and certiiied and sent to theAssociation with withdrawal applications for reimbursement through MF&T.SOEs are checked and signed by the Technical Director, Chief Engineerand Principal Accountant of MWC, and the Consultants' Project Managerunder the project. The E/L Ledger is reconciled monthly with theaccounting records maintained by the Principal Accountant of MWC.

3. The MWC Accounting Section maintains separate ledgers andaccounts (Personal emolument record cards for salaried established staffand for daily paid workers), a vote charge book to record expenses,other than salaries and wages, such as for fuel, lubrication, material;ledger cards and costs cards for stores. These records, however, areeither not up to date or not entirely correct; e.g. the status ofadvances to the staf' is not exactly known, transport advances (forbuying vehicles, etc) are not maintained correctly, and the stores cardsdo not reflect realistic costs of the spare parts and tools. In orderto exercise satisfactory control on project accounts a financial expertwill be hired for 24 imn, as part of the road maintenance consultantsteam, for supervising and controlling accounting records, preparation ofreports and SOEs and maintenance of the Special and Project Accounts.

- 33 -

ANNEX 2-9Page 2 of 2

He will also supervise the workshop costing, inventory acc-untingthrough Kardex system, cost and performance accounting and erojectdisbursements and reconciliation with IDA and cofinanciers.

4. MWC also has an Internal Audit Branch which works directly*under the Ministry of Finance. Its functions are to detect errors andreliability of the accounting records, appraise the quality ofperformance, ensure that MWC's assets are safeguarded and the Governmentprocedures are adhered to. This division is understaffed and has acuteshortage of competent and qualified personnel.

Costing

5. Consultants established and tested a cost and performanceaccounting system for regravelling operations under the First HighwayMaintenance Project. In addition, the costing for all routine andperiodic maintenance has been prepared for the Second Project. Theobjectives of the costing system are:

(i) to enable MWC to prepare realistic and reliable annualbudgets taking into consideration actual costs anddefined work programs for road maintenance;

(ii) to ensure the resource data produced by the cost andperformance accounting system is reviewed periodicallyand modified as necessary; and

(iii) to enable MWC to monitor the efficiency of resourceutilization.

6. Given the limitation of the competent staff in MWC the costingsystem is being kept simple and straight forward. It will be adaptedfor microcomputer use, and will be used for preparing claims forpayments from the Special and Project Accounts, and for the roadmaintenance program. Various types of forms will be introduced in thesystem, such as inventory of roads showing name of roads sections andtheir lengths, type of roads (paved or gravel), classificati.;i (primary,secondary, local) and annual condition inventories. Another set offorms will also be used to transform the road inventory 1;.to a fullycosted road maintenance program on the basis of predefined standards.These forms will analyze the costs under various budget codes. Theywill also lead to the preparation of a reliable budget by activity forthe maintenance program. Standards will then be prepared for each majoractivity to enable comparison of actual performance with the standardsnorms. The cost analyses show costs by each element such as wages andsalaries, materials used, equipment costs (maintenance costs, fuelcosts, depreciation) and overhead charges (e.g. headquarters staffsalaries, miscellaneous indirect costs). The performance of each fieldcrew and petty contractor will be analyzed for each maintenance activityand compared with standard costs. Such comparative analysis of costswill reveal any weaknesses and inefficiencies so that the management cantake remedial action for future improvements.

WAPT1February 1986

- 34 -

ANNEX 2-10

THE GAMBIA

SECOND HIGHWAY MAINTENANCE PROJECT

Revenue from Road User Taxes(Dalasis '000)

FY81/82 FY82/83 FY83/84

Fuel Tax 12,320 21,871 20,025Lubricants Tax 1,256 2,609 2,462Vehicles Import Taxes 12,037 12,596 16,813Spare Parts & Tires

(Duties) 6,954 4,296 5,159Licences & Road Taxes n.a. 2,119 2,100

Total 32,567 43,491 46J559

Source: MEPID

WAPT1February 1986

- 35 -

ANNEX 2-11

THE GAMBIA

SECOND HIGHWAY MAINTENANCE PROJECT

Fuel Consumption Statistics(Liters '000)

Year Petrol Sales Diesel Sales GUCl/Diesel Diesel SalesConsumption Net of GUC 1/

FY73/74 12,882 8,882 n.a. n.a.FY74/75 15,300 20,205 6,852 13,353FY75/76 19,836 13,645 7,400 6,245FY76/77 24,523 19,264 7,724 11,540FY77/78 20,761 18,553 7,508 11,045FY78/79 23,203 23,634 7,286 16,348FY79/80 26,207 26,407 7,850 18,557FY80/81 23,310 24,569 9,320 15,249FY81/82 21,583 22,756 9,661 13,095FY82/83 21,344 22,654 10,877 11,777FY83/84 19,356 23,157 9,816 13,341FY84/85 16,970 21,917 9,747 12,170

1/ GUC - Gambia Utility Corporation

Source: MWC

WAPT1February 1986

THE GAMBIA

SECOND HIGHWAY MAINTENANCE PROJECT

Road Maintenance Recurrent Budget(Dalasis '000 Current)

ITEM EstimateSupplies and Contracts 75/76 76/77 77/78 78/79 79/80 80/81 81/82 82/83 83/84 84/85

Plant and Equipment Replacement 656 149 943 462 305 323 - - - -

Mechanical Maintenance 136 134 140 95 95 139 129 107 100 250 1National Roads and Bridges 1126 1615 1657 1345 1365 1170 1050 918 860 885 wBanjul City Streets 133 257 233 70 90 115 91 71 1029 100

Sub-total 2051 2155 2973 1972 1855 1747 1270 1096 1989 1235Salaries 188 343 595 592 550 576 638 .77 793 819

Total 2239 2498 3568 2564 2405 2323 1908 1873 2782 2054

NOTE: (1) Where there is no clear budget separation of road maintenance from other MWC activities, theexpenditures allocated to road maintenance have been estimated.

(2) The budget appropriations FY84/85 have yet to be published; the FY85/86 estimates are similar to thoseof FY84/85.

Source: MWCWAPT1December 1985

l

- 37 -MMu GiMi& lm 3-I

Locma Owds 1adei to do tmeem P

Fad Sao" DWISIon [AMLisai ditkm Rint

i _. 11 v 10.7 Gkz.1 luUt 1963 V6W Fader iwde P PM

VA CWAm3 DnitlkdJ - -d t v 9.5 (kgilB hilt 1982 06W Fader laedP f_tibm- DWye v 10.2 Gral hilt 1963 0am Fe I P

VAo hit DatdtDjiba - Fre Soto 13.5 Omni hilt 1963 UE0 Tider P ft

hidmml N1Db§m .

-iitii a N 7.1 dve1 Built 196 am Feehider K PrFs-U - thr Sio F N 11.6 Gravel hilt N196 0 Fede lob Eornm

Mi"n Om fenmba N 5.4 &vel hBit 1964 0O6 Fde bAhku P a-obdr - 11_ N 7.6 Creel hilt 196 U6 r_1s ad Pnhi m ESa - 5i SLdi N 13.0 COme huilt 1963 060 Fhi hb ide pnmmhr iep b- N 0.6 Qiel hBilt 1981 060 FidWe hki PLVAfi - FXrO Ale N 4.1 cenl hilt 1966 0M Fe huh P npSbttsaL Qbirdun) 49.4

F DLJER hit Wimtda _- Bed Fad K 6.3 Gdmi hilt 1978 16 FeiDer hId Ptu

UAWr lmr Distrit K 83.0 G reel sfedit UM Fer huh pFnE-m ~amm wetritelq d. - 3EihW. K 11.2 Gruul Bhilt 1979 U0D Feeder PrapSauel QItO 1W.5

Xsdapadce kDbe N 0.8 Shen S.T. d In Bjul weGunmesa Strot N 0.2 Slen S.7. p be igtly z dEg1iyowf S* N 0.4 Sh.1 S.T. up for layIg of utfiits.MM*Wlii Stret (SinaL3ml_ St.) N 1.3 SI.1 S.T.Bad" stc (facijid Pi.) n 1.1 She1 S.T.Boo t stut n 0.9 shen S.T.aina P N 1.0 S0.1 S.T._ m 1td PAW N 0.2iok - BOX: ilPe N 1.9 BmLt S.T.

AjImm Stret N 0.3 Rut S.T.Id=a Stree N 0.3 Bhlt S.T.D: Street N 0.1 Bmkt S.T.

Ibqm Fad N 0.3 Bmalt S.T.Podl Street N 0.2 BUilt S.T.s Str_t N 0.5 lEelt S.T.Prdt Street N 0.6 Bhlt S.T.Afle Stet N 0.2laal Sqiare N 0.2 hiet S.T.Fitmld Stt N 0.4 Sad Seal

Clmi Stret N 0.2510.15 Sad Sueljhelt S.T.5htod OUajuil C2ty C.uii) 11.3

1molfurSam Disrict chmoil0 Dh ,

1tE Ut VAl W 2.9 s1011 S.T. 3-4 To be rewilt 1986 Mdma l'tAtltic lhnd V 4.2 Sd SealIhel S.T. 3 S5aUkg to be cmlted

85/86 F.H.ILP.NM Ao St. Ly's hal V 5.0 Sd SodlJ03l S.T. 3 3.2 Km requite reemliug.BUm lBd V 3.2 Sad SwLAJSll S.T. 3-4PipelP hWd W 1.8 Sad SwIIbfll S.T. 4 To be rebdlt 1966 Ued Wt01d Cap W .. 1 Shll S.T. 3Lid an V 0.6 helt S.T. 3) Bhlt surface trueedV L imnt Pid W 0.6 eidt S.T. 3) es (8.4 b ot of 11.2 I=)11e Pazhq U 2.8/1.8 Bmlt S.T./benl S.T. 3-3) me bullt Sn 1978 ad

lotu Ibr V 3.411.0 RBmt S.T./ShwU S.T. 3-3) the &rfae Sm in wryhi palnt IBd V 1.4 heit S.T. 3) good aditim.

S5ttal Itafku Ubm Dietrlct) 33J____ 236.9

February 1986

- 38- ANNEX 3-2Pag- 1 of 4

THE GAMBIA

SECOND HIGHWAY MAINTENANCE PROJECT

Periodic Maintenance ProgramRegravelling

AADT Length Divi- Fiscal Year (km)Road Segment 1984 km sion 85/86 86/87 87788 88/89 89/90

(2nd Sem)BY FORCE ACCOUNTEssan-Kerevan 250 28 N 28 - - - -Farafenni Area (Upgrading) 150/190 5 N/E - 5 - - -

Brikama-Gunjur 200 20 W - 20 - - -Sukuta-Jambanjali 100 15 W - 15 - - -Jambanjali-Sanyang 150 5 W - S - - -Sukuta-BTufut 230 5 w - 5 - - -Sanyang-Gunjur 100 10 W - - 10 - -La in-Makumbaya a/ 80 11 W - - 11 - -Kvinella-Tendaba 30 6 E - - 6 - -Mara Mayal-Sapu 30 3 E - - 3 - -Basse Santa Su-Sabi 70 11 E - - 11 - -N'Jaba Kunda-Farafenni 150 34 N - - 14 18 -Farafenni-Kaur 190 36 E - - - 33 -Kaur-Kuntaur 120 57 E - - - 9 37

Total Force Account 28 50 55 60 37

BY CONTRACTBasse Santa Su-Fatoto a/ 50 40 E - - 30

a/ To be financed under UNSO Project.

Source: MWC and UNSOWAPTIFebruary 1986

ANNEX 3-2- 39 - Page 2 of 4

THE GAMBIA

SECOND HIGHWAY MAINTENANCE PROJECT

Periodic Maintenance ProgramGravel Roads to be Patched and Reshaped

Road Segment ADDT Length Divi- Fiscal Year (Km)1984 (kn) sion 85/86 86/87 87/88 88/89 89/90

(2nd Sem)Basse-Sabi 70 11 E - 11 X - -Basse Santa Su-Fatoto 50 40 E - 40 X X -

Mora-Mayal-Sapu 30 3 E - 3 X - -

Kwinella-Tendaba 30 6 E - 6 X - -

N'Jaba Kunda-Farafenni 150 34 N - 32 X X -

Farafenni-Kaur 190 36 E - - - X -Brufut-Tanji 100 10 W - 10 10 10 10Janji-Tuering 100 4 W - 4 4 4 4Tujering-Sanyang 100 7 W - 7 7 7 7Brikama-Jambanjali 100 10 W - 10 10 10 10Kaur-Kuntaur 120 57 E - - 57 25 XSotuma-Sire-Gambissara 20 7 E - - 7 - 7Kerewan-N'Jaba Kunda 150 23 N - - - 23 -Kerewan-Jowara 50 10 N - - 10 10 -Sankandi-Kenaba 25 22 E - - 22 - 22Sanyang-Sanyang Beach 50 4 W - - 4 4 4Gunjur-Kartung 100 8 W - - 8 8 8Kuntaur-Georgetown 190 22 E - - - - 22Choya-Dankuku 10 10 E - - - 10 -Dankuku-Jessadi 10 11 E - - - 11 -Gunjur-Gunjur Beach 50 2 W - - - 2 2Kartung-Kartung Beach 50 3 W - - - 3 3Jambanjali-Sanyang 150 5 W - - - 5 5

Subtotal (Northern) - 32 42 33 -Subtotal (Eastern) - 60 60 46 51Subtotal (Western) - 31 43 53 53

Total - 123 145 132 104

Note: X indicates year in which general regravelling is scheduled.

Source: M`CWAPT1February 1986

- 40 - Annez 3-2

ME GLMff

ReasmUt of NatdLmul 7eo

yewe c mom e

Yesr Surfm ls eBof Suction Laitd hAN Bilt or Shul Buiat

NS 1984 R _nmM KU. us 85/86 86/87 87/88 88/89 89/90Nhdm Lvla (2hl Sei

1 Izd PAW4 1,92 Vwie 4 - - - c - -

mnnjul-S.rehmila 11 102,00 Varil 11 - C C - - -

Iura-Smmngl Iorder 20 780 1968 20 -- - _ _ _

1cm1 nD1VISMi

_mi*auIa-l~z~. 11 3,600 1971 11 - - - 9.4 _ _1I _-BrJa 11 1.800 1968-74 11 - - - - C -

lldla1~ 100 540 1963-78 100 - - 8 8 17 CSuKubS-aim1ta 5 - Vaies 5 - - 2.7 - - -

1m Bi-Seleti 13 110 1984-85 13 - - - - - _1m & import huRomd 3 - 1973 2 1 - - 2 - -

KAW-om 46 480 1968-80 46 - - 20 20 - -SOMW41mmme 194 310 198D-82 - 194 - - - 60a/ 60 a/Yon B _i AxW&Cmga 5 - 1982 - 5 - - - - -Trm-G_ bla R4uy 24 780 1964 - 24 - - - - -

ToU.1 0 30.7 39.4 77 60

C: Sdhium for reinfarcit or cmtzwtlm

!y Fag S.1 Only

Sn:re: NIC

Febzary 1986

*15HX 3-2- 41- Page4 of A

12E GAMfrA

S9XN HIG0 EY UnNMOM PRlntT

Pexiclic lnme rPRmmIh Progm on local Bob aJ

Year Surface Type Fiscal Year (km)Length AADT Built or Shell Basalt

Road Segment km 1984 Resealed km km 85/86 86/87 87/88 88/89 89/90(Approx) -(2nd Se.T

Kanifing Urban District

Latri Kunda Road 2.9 3000 Varies Varies - C - - -Atlantic Road 4.4 2500 Varies Varies - - - 2.0 -Bakau Rev Town Road 2.8 2500 1982 2.8 - - - 2.8 - -New Kombo St. Mary's Roads 2.4 500 1978 Varies - 2.4 - - -Bakau Road 3.2 2000 1975-77 Varies - 2.0 - - -Pipe Line Road 3.8 5000 Varies Varies - C - - -Old Cape Road 3.1 1500 1976-79 3.1 - - 3.1 - - -Link Road 0.6 500 1978 - 0.6 - 0.6 - - -Kololi Point Road 0.6 500 1978 - 0.6 - 0.6 - -

Badala Parkway 4.6 2500 1972-78 1.8 2.8 - 4.6 - - -Motu Stream Road 4.4 2000 1972-78 0.9 3.5 - 3.5 - - -Kotu Point Road 1.4 500 1978 - 1.4 - 1.4 - - -

Total 0 18.2 bl 2.8 2.0 0.0

C: Scheduled for reinforcement or construction.

aI No provisions for Banjul City Streets as all streets will require reconstruction aftersewerage project.

b/ Fog seal only on 8.9 km.

Source: HUC

VAPTIFebruary 1986

- 42 -

ANNEX 3-3

THE GAMBIA

SECOND HIGHWAY MAINTENANCE PROJECT

Equipment Procurement Summary

Description Estimated Delivery RequirementsUnit Cost December 1986 September 1987

No.Units Cost No. Units Cost(US$'000) (Us O00) (UII'000)

A. THROUGH ICB (EEC Financed)

Twin Cabin Pickup 10 5 50 -Bulldozer (140 HP) 120 1 120 1 120Motograder (125 HPI, 70 2 140 1 70Tipper Truck (7T) - 1/ 25 5 125 9 225Water Tanker (7000L) - 35 2 70 3 105Steel Wheel Roller 45 1 45 - -Towed Fuel Tanker 8 2 16 - _Vibratory Plate Comp. 3 3 9 - -Pedestrian Roller 5 2 10 - -Sub-total Equipment 23 585 14 520Inital Stock of Spare Parts 30 30

Total Through ICB 615 550

B. THROUGH INTERNATIONALSHOPPING (IDA Financed)

Vibro-Compactor (SP200A-1OT) 60 - - 1 60Pneum.Compactor (Hyster C530A) 45 1 45 - -Fuel Tanks (7000L-14,OOOL) 4 4 16 - -Manual Emulsion Sprayer 1 2 2 - -Communication Sets & Generators 3 6 18 - -Miscellaneous (Mopeds,Bicycs.etc) - 20 - 10Sub-total Equipment 13 101 1 70Initial Stock of Spare Parts 4 5

Total Through Shopping 105 75

C. THROUGH UNSOAgricultural Tractor (65HP) 13 3 39 -

Tipping Trailers (4m9) 3 3 9 -

Sub-total Equipment 6 48 -

Initial Stock of Spare Parts 5 -

Total Through UNSO 53

1/ Unified Bid.

Source: MWCWAPTIFebruary 1986

- 43 -

ANNEX 3-4Page 1 of 6

THE GAMBIA

SECOND HIGHWAY MAINTENANCE PROJECT

Terms of Reference for Road Maintenance Management

Objectives

1. The main objectives of the technical assistance are:

(i) Assist MWC in carrying out the planned maintenancereorganization;

(ii) Ensure efficient and cost-effective management of roadmaintenance activities;

(i) Train managers, engineers and technicians to carry outtheir various functions, with the objective that all roadand equipment maintenance management and operatingfunctions can be carried out independently by MWC fromthe beginning of FY88/89.

Scope

2. The technical assistance will assist and advise MWC in imple-menting the four year road maintenance program. In particular, thefollowing tasks will be carried out:

'i) implement the cost and performance system designed underthe First Project:

(ii) assist the regional Divisions and Headquarters in plan-ning the execution and the monitoring of field operationsfor routine and periodic maintenance of roads;

(iii) assist PWD in preparing quarterly and annual estimates oflocal budget requirements for operating costs of the roa;maintenance program;

(iv) assist in setting up the statements of completed mainte-nance work for reimbursement of the Project and SpecialAccounts;

(v) assist the workshop operations by carrying out periodicfield inspections of the road maintenance equipment andvehicles and by supervising shop and field repairs;

(vi) assist in the project's procurement of equipmentvehicles, spare parts, bitumen, fuel, etc., includingpreparation of bidding documents and subsequent bidevaluations;

- 44 -

ANNEX 3-4Page 2 of 6

(vii) ensure that proper accounting practices are followed atthe workshop, in the regional divisions, field units, andheadquarters for road equipment and maintenance, andrelated activities;

(viii) computerize the spare parts inventory management system,financial, cost accounting and monitoring functions;

(ix) provide on the job training to managerial, office andfield personnel of NWC (headquarters, workshop, divisionsand field units).

Technical Assistance Services

3. The technical assistance team will consists of:

(i) a highway engineer and team leader (25 months)

(ii) an accounting expert (24 months)

(iii) a road foreman (21 months)

(iv) a master mechanic fo_ the Kotu Workshop (25 months)

(v) a field mechanic for the Kotu Workshop and the fieldinspections and repairs (25 months)

(vi) short term visits by specialists (5 months).

The technical assistance team will be engaged full time until mid-1988with periodic visits over following two years to monitor implementationof program and to run upgrading courses.

Work Description and Qualification

4. Particular functions and qualifications of the technicalassistants are described below:

A. Highway Engineer and Team Leader

The Team Leader will assist and advise the Chief Engineer ofMWC. In particular he will:

(i) update yearly, and as required, the four year maintenanceprogram and supervise its implementation;

(ii) analyze the cost and performance data of the field unitsevery three months and make recommendations to improvethe performance of the field units, and also review thestandard outputs and standard costs used to reimburse theProject and Special Accounts;

- 45 -

ANNEX 3-4Page 3 of 6

(iii) prepare manuals of standard procedures for road superin-tendents and road foreman, and provide on the job train-ing to MWC engineers and supervisors;

(iv) coordinate the activities of the field units and theintervention of the technical assistance;

(v) carry out at least on a quarterly basis field inspectionsto verify the accuracy of the job reporting;

(vi) countersign the work accomplishments statements preparedfor the reimbursement of the Project and SpecialAccounts;

(vii) countersign the monthly revolving fund financial state-ments of the Project and Special Accounts;

(viii) prepare quarterly progress reports reviewing accomplish-uents, presenting project statistical data, generaloutlook for following quarter and important projectschedule revisions; including provision of other datarequired by MWC, IDA and cofinanciers.

(ix) assist the Government in procurement matters;

(x) assist in the planning, construction and monitoring ofthe test sections for the experimental low cost paving ofgravel roads;

(xi) participate in the transportation planning activitieswhich complement the Second Highway Maintenance Project;

(xii) submit a final report summarizing the accomplishmentswith all relevant data in accordance with IDA require-ments; and

(xiii) by July 1, 1988, prepare in consultation with therelevant counterparts detailed procedures for effectivetakeover of the above activities, and assist other teammembers in preparing detailed procedures for theircounterparts.

5. The expert should be a well qualified highway engineer with atleast ten years post-qualification experience and five years ofexperience in managing and supervising bituminous and laterite roadmaintenance work. He should have some experience in Sub Sahara Africa.

B. Accounting Expert

6. The accounting expert will be assigned to MWC and will assistthe headquarters units, field divisions and the workshop. He will:

- 46 -

ANNEX 3-4Page 4 of 6

(i) assist the division engineers in implementing the costand performance system prepared under the First HighwayMaintenance Project and in preparing monthly statementsof work performed;

(ii) assist MWC in preparing monthly claims for the reimburse-ment of the Project and Special Accounts established forthe project financing;

(iii) assist MWC in preparing monthly reconciliations of theProject and Special Accounts;

(iv) assist the Chief Mechanical Engineer in the implementa-tion of the management system of the MechanicalEngineering Division and more specifically ensure thatall the required accounting documents are prepared andprocessed, and make proposals to remedy any deficiencies;

{v) if required, prepare inventory control procedures for MWCdivisions and headquarters;

(vi) assist as required with the development of software forcomputerizing the accounting functions, the inventorymanagement and the cost and performance accountingsystem.

7. The expert should have full accounting qualifications and, atleast, five years of accounting experience and must be able to set upaccounting systems in the specific offices of MWC.

C. Road Foreman

8. The expert will be assigned to the routine and periodicmaintenance field units of MWC. He will:

(i) supervise the operations of the periodic and routinemaintenance units and ensure accurate, concise andprecise work reporting;

(ii) participate in the analysis of the cost and performancedata and the review of the standard outputs and standardcosts used to reimburse the Special Account;

(iii) provide on-the-job training to the road foremen andequipment operators;

tiv) participate to the quarterly field inspections conductedby headquarters to verify the accuracy of the jobreporting;

tv) participate in the development of detailed workschedules.

- 47 -

ANNEX 3-4Page 5 of 6

9. The road foreman should be a well qualified highway technicianwith at least three years of field experience in Sub Sahara Africa. Heshould be familiar with regravelling and resealing operations, androutine maintenance techniques for bituminous and laterite roads.

D. Master Mechanic

10. The expert will be assigned to the Kotu Workshop to advise andassist the MED Senior Mechanical Superintendent (Plant and Trucks) incarrying out his functions. In particular, he will:

(i) assist the operations of the Inspection and DiagnosisSection, the Plant/Trucks Repair Section and the Special-ized Shop Sections;

(ii) provide on-the-job training to the superintendents andforemen involved in the above sections;

(iii) assist in establishing and reviewing the minimum andmaximum inventory levels for the fast moving spare partsand supervise the preparation of the spare parts listsfor the repair of broken down equipment and for thepreventative maintenance of equipment;

11. The expert should be a well qualified mechanic with at leastfive years of managerial experience in workshops for highway maintenanceequipment. He should be able to give on-the-job training to personnelto become qualified mechanics.

E. Senior Mechanic for Field Operations

12. The expert will be based at the Kotu Workshop and will berotated to the field operations of the Kotu Workshop which will includethe mobile field workshop and the regional workshops at Hansa Konko andBasse. He will assist and advise the MED mechanical inspectors incarrying out their functions. In particular, he will:

(i) conduct periodic field inspections of the heavy equipmentand heavy vehicles to ensure that the scheduled mainte-nance operations are performed and to evaluate theequipment condition. Those inspections will be conductedtogether with the designated equipment and heavy vehiclefield inspector(s) to whom he will provide assistance andon-the-job training.

(ii) conduct together with the designated field inspector(s)on call inspections of broken down equipment and eithereffect on the spot repairs, recommend field repair orreturn of the equipment to the Kotu Workshop for repairs.

(iii) provide on-the-job training of superintendents andforemen in the Plant/Truck Repair Section and the

- 48 -

ANNEX 3-4Page 6 of 6

Specialized Shop Sections at Koti, and the SatelliteWorkshops of MED.

13. The expert should be a well qualified mechanic with at leasttwo years managerial experience.

Source: VWC and MissionWAPT1February 1986

- 49 -

ANNEX 3-5Page 1 of 4

THE GAMBIA

SECOND HIGHWAY MAINTENANCE PROJECT

Terms of Reference for MED Workshop Management

Background

1. Under a USAID financed project, a new Central Workshop to bemanaged by MWC's Mechanical Engineering Division (MED) is being built atKotu. The new workshop is expected to be functional by mid-1986. USAIDconsultants have prepared procedures for equipment and vehicle mainte-nance and for training of MED personnel. In order to assist MED manag-ers to efficiently operate the new workshops after the completion ofUSAID assistance in September 1986, a mechanical engineer and astoreman/supply technician with at least 10 years of experience inmanaging workshops and spare parts warehousing for heavy equipment andvehicles will be engaged over a one-year period full time with periodicvisits over the following two years.

Objectives

2. The main objectives of the technical assistance are:

(a) ensure efficient and cost-effective management of the CentralWorkshop at Kotu; and

(b) train managers and technicians to carry out their variousfunctions, with the objective that all workshop functions canbe carried out independently by MED from the beginning ofFY88/89.

Scope

3. The Mechanical Engineer will advise and assist the SeniorMechanical Engineer (SME) on day-to-day operations of MED both in theCentral Workshop and the field Divisions. He will also support theChief Mechanical Engineer (CME) in policy, planning and budgetingactivities and in developing an annual work plan and the annual esti-mates. His primary concern is management of the on-going work of MNEDand ensuring through the responsible Senior Superintendents that sched-ules are met and that quality standards of work performance are upheld.The specific responsibilities of the Senior Mechanical Engineer, asdelegated to him by the CME, are:

(a) Preparation of detailed inputs to the annual work plan. Thisincludes:

- Shop workload projections;- Staffing requirements;- Equipment, spare parts & material needs;- Budgetary estimates of costs.

- 50 -

ANNEX 3-5Page 2 of 4

(b) Shop Operations.The SME is responsible for ensuring that the on-going opera-tions of the Division operate effectively. This includes:

- Acceptance and inspection of vehicle & plant equipmentfor work;

- Identification of actual work required and assignmentof priorities;

- Issuance of job orders and assignment of leadresponsibility to a specific senior superintendent;Ensuring that proper records and cost information arekept on each job order and that proper spare parts areon hand or ordered (within the limitaticas of theDivision budget);

- Follow-up on job orders to be sure they are not delayedfor insufficient reason;

- Continual communication with hls immediatesubordinates, the Senior Superintendents, to identifypotential problems and plan to solve them. Inparticular, conduct periodic meetings with these SeniorSuperintendents to reduce the amount of time spent"fire fighting" and identify chronic and commonproblems;

- Work with the other supervisors and tradesman asnecessary to solve technical problems affecting qualityof work or timeliness of completion of work;

- Conduct on-the-job training of his senior supervisorsin planning, job scheduling, costing of jobs andsupervisory techniques such as appraisal of personnel;

- Establish work standards (time and quality) for eachspecific type of shop operation and ensure that theseare met. These work standards would necessarily bedeveloped jointly with his superintendents;

- Forewarn the CME of possible areas of future problemsand recommend appropriate action to be taken;

- Contribute to the morale of the work force bycontinually keeping them informed of important actionsgoing on in the Department (such as the building of thenew shops) and periodic status reports. Inform allstall of promotions;

- Ensure that safety precautions are enforced,particularly in danger areas;

- Ensure that standards of orderliness and cleanlinessare maintained throughout the shops;

- Work with the Training Officer to plan to obtaincertification for qu&lified tradesmen under theNational Skills Testing and Certification Scheme;

- Recommend employment, promotions, transfers,terminations based on inputs from his supervisors;

- Conduct performance appraisals of all staff in the MEDthrough normal supervisory channels.

- Assume whatever delegated authority the CME is preparedto give him as regards the technical operations of the

- 51 -

ANNEX 3-5Page 3 of 4

Division. Follow established regulations affectingwork of the Division.

4. The Mechanical Engineer should have a strong automotiveequipment maintenance background and technical knowledge regarding allshop operations. Should have positive leadership qualities and be agood communicator. Should be able to instill a sense of loyalty andcommon purpose to the SME, supervisors, tradesmen and apprentices in theDivision through personal example. He should have a degree inMechanical Engineering plus formal study in shop management andsupervisory techniques.

5. The Storeman/Supply Technician will advise and assist theSenior Stores Superintendent on organization and day-to-day operationsof the spares stores section of MED. This involves planning and sched-uling of the work; preparing annual budgetary estimates based on theforecasts of automotive and plant spares supplies needs and inventoryrecords. The Senior Stores Superintendent is specifically responsiblefor on-the-job training with guidance and support from the TrainingOfficer. He will assist in the removal of unserviceable and redundantspares stores, and will advise the Head Storekeeper on advance needsfor procurement of spares. The specific responsibilities of the SeniorStores Superintendent are:

(a) Work Planning- Provide inputs to the Senior Mechanical Engineer'sannual plans upon based projections of spare partsrequirements;

- Maintain adequate records based on physical inventoriesof the actual spare parts situation so that hisforecasts are based on firm data;

(b) Work Assignment, Monitoring and Control- Maintain records of all activities assigned to MEDspares and stores activity. Follow up on spare partsmatters with his supervisory staff to eliminate delaysand ensure support;

- Work in close coordination with Senior MechanicalEngineer and associate senior supervisory staff. Mustalso have a close working relationship with theProduction Control Engineer to explain or resolve spareparts problems;

- Must maintain a close link with MWC Supply and AccountsBranches in resupply and stores accountabilityfunctions.

(c) Personnel Management- Recommend promotions, transfers, terminations for hisstaff after consultations with the individual'simmediate supervisor;

- Work with the Training Officer to plan a long rangeprogram of apprentice/tradesman upgrading, using the

- 52 -

ANNEX 3-5Page 4 of 4

"Modules of Employable Skill - MES" approach;- Conduct on-the-job training of his superintendentsbased on guidance from the Training Officer. Inparticular ensure good communication within hisorganization and open discussion of problem areas;

- Conduct frequent safety and health hazard inspectionsof his stores areas and take steps necessary toeliminate deficiencies;

- Hold regular staff meetings with his subordinates toreview problems, listen to suggestions for workimprovement, improve morale;

- Work within the authority specifically delegated tohim by the Senior Mechanical Engineer;

- Work within existing Government Regulations, PublicService Commission Rules and other prescribed Nationalprocedures.

6. The Storeman/Supplies Technician should have qualifications inAutomotive Supply Management. He should also have strong supervisoryexperience in automotive repair and maintenance shop and additionalexperience in stores operations similar to those of MED. Demonstratedleadership and ability to communicate is most important.

Source: MWC and MissionWAPT1February 1986

- 53 -

ANNEX 3-6Page 1 of 4

THE GAMBIA

SECOND HIGHWAY MAINTENANCE PROJECT

Personnel Development Program for MWCTerms of Reference for Management and Training Assistance

Background

1. The Status of Manpower Capability and Personnel Managementwithin the PWD is briefly described as follows:

(a) Major manpower weaknesses exist at the mid-management,supervisory, and technician levels, while severe overstaffingexists among semi- and unskilled workers (grade levels 4 and5). This shortage of managerial skills, coupled with anexcess of unskilled staff has a serious negative effect onproductivity.

(b) Staff morale and dedication are lacking. There are noinzentives to increase work output, salaries are low (betweenD400 to D700/month for senior technical grade levels 10 to14), promotions are often political, and there is littlerecognition for increasing job skills through training.

(c) Productivity in the workshops is stated to be about 20% and ispri.narily due to a large surplus of levels 4 and 5 staff, lackof spare parts, and poor shop management and supervision.General indications are that only about 25% of the workshopstaff are properly trained for their job positions.

(d) Illiteracy is a major problem at the lower job levels, and isa moderate problem up to the middle level positions. Manylower level, and some mid-level supervisors are functionallyilliterate, which poses serious problems vis-a vis jobupgrading and training. A Non-Formal Training Division withinthe Ministry of Education has been established to assist theministries and other organizations with literacy training, butthe MWC has yet to take advantage of this service.

2. While considerable efforts are being made to correct some ofthese problems through training and technical assistance, theintegration of personnel management policies coupled with appropriatetraining at all levels has not been fully applied to MWC operations. Inthis regard, a concerted effort will be made during the Second HighwayMaintenance Project to link manpower policies and tiaining with theprimary objective of increasing productive output and capability withinthe MWC.

3. As shown in the attached flow chart (Attachment 1), theproject training component will have two major objectives. The firstobjective Is the improved management and efficient use of MWC personnel

- 54 -

ANNEX 3-6Page 2 of 4

which will be accomplished primarily through effective personnelmanagement policies and procedures. The second objective will seek toimprove MWC staff productivity through various training and upgradingprograms. The first objective involves decisions and follow-up actionsthat do not require financial inputs, while the second objective willrequire financial inputs.

The Piogram

4. Improved Management and Efficient Use of Personnel will beaccomplished through streamlining the work force and enhancement ofcareer advancement policies and procedures for skilled technical,supervisory, and managerial staff. These objectives will be achievedthrough:

(a) a planned reduction of semi- and unskilled workers toappropriate levels in relation to MWC manpower requirementsand ability to support these workers with materials,equipment, and productive work assignments. This work forcereduction should be implemented through:

(i) the establishment of retirement incentives andcompensation policies for redundant staff, and

(ii) a freeze on the hiring of semi- and unskilled workersuntil such time as there is a shortage of qualifiedpersonnel at these levels;

(b) the gradual replacement of unqualified and/or untrainablesenior and mid-level staff with qualified personnel fromoutside the organization. This modification of the personnelstructure should be implemented through:

(i) the establishment of retirement incentives andcompensation policies for senior and mid-level staff, and

(ii) active recruitment of senior and mid-level staffreplacements, including employment incentives forqualified candidates.

(c) the improvement of career advancement policies and proceduresfor promotion within the organization. This should beimplemented through:

Mi) the establishment of job requirements and qualificationas a prerequisite for promotion to each job position, and

(ii) recognition of education and training achievements aspart of the necessary requirements to career advancementand job promotions.

- 55 -

ANNEX 3-6Page 3 of 4

5. Improvement Management Capability and Staff Productivity inMWC will be accomplished by improving staff qualifications, knowledge,and skills at all job levels through the implementation of the followingtraining activities:

(a) The further development and implementation of in-housetraining capability to include:

(i) the establishment of an annual training budget to beadministered by the Training Officer,

(ii) improving and increasing the functions of the TrainingCommittee, comprising the Training Officer and heads ofdepartments, uoder the Under Secretary foradministration,

(iii) the establishment of a functional literacy program incooperation with the Ministry of Education,

(iv) the continued development and implementation of releasedtime in-house training courses,

(v) a titrain the trainers" program for senior staff so thatthey can train their subordinates in released timecourses and on-the-job instruction,

(vi) the development of organized on-the-job trainingactivities, and

(vii) the procurement of training aids and equipment.

(b) Increased use of in-country training capability at GTTI andMDI to include:

{i) the selection of trainees and scheduling of courses intechnical and management subject areas,

(ii) the development of special courses related to MWCtraining needs, and

(iii) the procurement of training aids and equipment needed toconduct MWC courses at GTTI and MDI. This equipment willbe stored and maintained by GTTI and MDI for MWC.

(c) Advanced training for qualified senior management andtechnical staff to include:

(i) the selection and scheduling of candidates to attendseminars and work/study programs at public works agenciesand manufacturers' training centers outside the country.

- 56 -

ANNEX 3-6Page 4 of 4

6. Financing of the project training component will encompassthose items in paragraph (5) above as shown in Attachment 2.

Technical Assistance

7. To assist in the development and implementation of MWCreorganization and training activities, management training specialistswill be engaged under the project to work with MWC's senior staff andTraining Officer starting mid-1986. The terms of reference for theManagement and Training Assistance are given in Attachment 3. Inparticular the Training Advisor will assist the MWC Training Officerwith the following tasks and activities:

(a) establishment and impl'mentation of an in-house literacyprogram in cooperation with the Ministry of Education;

(b) development and implementation of in-house upgrading courses,workshops, and seminars;

(c) development and coordination of special courses to beconducted at GTTI and MDI;

(d) specification and procurement of training aids and equipmentto be used in-house and at GTTI and MDI;

(e) preparation and implementation of "train the trainer" coursesfor MWC staff who will be training subordinates;

(f) development and implementation of on-the-job trainingactivities with measurable objectives;

(g) preparation of annual training budget;(h) preparation of semi-annual manpower and training reports;(i) coordination with the MWC training committee;(j) identification and selection of appropriate highway agencies

and equipment manufacturers' training centers to be used foradvanced overseas training for senior MWC staff;

(k) testing, selection, and scheduling of trainee candidates forin-house, local in-country, and overseas training activities;

(1) review, evaluation, modification, and improvement of thetraining programs as required during the course of theproject.

WAPT1February 1986

- 57 -ARM 3-6

q ~~~~~~~~~Attabu:t I

THE GAMBIA

SECOND HIGHWAY MAINTENANCE PROJECT

Project Training Objectives: Flow Chart

99- ~ -r

VAJC.HCar ~ LCEb4 (i) ._ tIb -_ -

T0 AI.I ~ ~ ~ ~ ALSJLx P3-(ff .A

_) OF s.iPRvW. sur.t

i -gs rASus"

l WsJLJ - WP£Iul '5

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%WM-. mvbVat Pab *ctP,ITo AkWX S3-

Juty~~~~ ~ ~ 1985S ut"^

-' PPNV ii _lz 4t F<o

Gii) -s R L;4 urt13jILb"LpwT Gv) C4DWAAP f96 sutNAcr

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rE0 LAI l %Jr

5 ° ~~~~~~~~~~G) es_ o swr <>.- ~~~~~li bfXob . =L [ ^

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| rA_ | | CaJD,DI& r .

OF SWC, I I 1,lwuvv ,tss l *

WAPT1 XSb4

July 1985

- 58 -

ANNEX 3-6

Attachment 2

THE GAMBIA

SECOND HIGHWAY MAINTENANCE PROJECT

Cost Estimates for Upgrading MWCOffices. Training Materials and Courses

--- - USS 1000-Local Foreign Total

a) Equipment and materials for MWC headquartersand Provincial Offices 10 35 45

b) Training aids and equipment for MWC'sinternal training 0 10 10

c) Tuition and instruction costs of GTTI andMDI for training MWC staff 50 0 50

d) Training aids and equipment for MWC use atCITI and MDI 0 40 40

e) Allowances for MWC's in£tructors andrelocated trainees 10 0 10

f) Tuition, travel and living expenses foroverseas seminars and courses for SWC staff 0 25 25

Total Base Cost 70 110 180

Source: SIC and MissionWAPElFebruary 1986

- 59 -

ANNEX 3-6Attachment 3Page 1 of 10

THE GAMBIA

SECOND HIGHWAY MAINTENANCE PROJECT

Terms of Reference for Management and Training Assistance

I. INTRODUCTION

1. The Second Highway Maintenance Project includes a managementand training package which is a part of other technical assistance tothe Ministry of Works and Communications (MWC) for institutionalstrengthening.

2. The training program represents an expansion of existingtraining activities being carried out by MWC. The management assistanceprogram is a follow-up on the reorganization recommended during theproject preparation phase.

3. The training program includes:

-- strengthening of the MWC Training Committee

- consolidation of the existing training structure

-- training of road managers and technicians

training of mechanical managers/supervisors andtechnicians

-- increasing use of in-country training capability

-- training abroad for selected MWC-staff

4. The management program includes:

-- implementing the recommended reorganization

-- assistance of MWC top- and middle-level management incarrying out daily tasks

management training to enhance planning, coordination andmonitoring

II. OBJECTIVES

5. The objectives of the technical assistance service for train-ing will consist of assisting MWC in:

- 60 -

ANNEX 3-6Attachment 3Page 2 of 10

(a) strengthening the existing training structure within theMinistry; and

(b) designing and implementing training programs aimed at produc-ing qualified personnel who can carry out independently roadmaintenance and equipment maintenance as well as workshop andother operating functions from the beginning of FY88-89.

6. The objective of the management assistance program is toassist MWC staff in carrying out their duties in all matters for whichMWC is responsible with particular reference to the highway subsector.Assistance will be given in strengthening procedures within MWC, such asdelegation, coordination and reporting.

III. SCOPE AND SERVICES

A. Scope of Training Assistance

7. The main activities will consist of:

(a) advising on all aspects of training and training programs;

(b) supervision of gap-analysis (present vs. required capability)of all personnel within MWC, in particular personnel inworkshop and road maintenance, in order to specify trainingneeds;

(c) supervision of the design of sound training programs whichwill give, apart from highlighting road maintenance andworkshop management also considerable attention to reductionof illiteracy and enhancement of basic management and supervi-sory skills;

(d) coordination and supervision of the work of Road Maintenanceand Workshop Management Consultants responsible for conductingon-the-job and counterpart training of MWC road and mechanicalpersonnel;

(e) supervision of coordination between technical experts MWCheadquarters and field staff; and

(f) periodic evaluation and reporting on progress of trainingactivities.

8. The functional character of this program will require that theaims relating to the number of personnel trained for different jobcategories be in line with current and future needs of the road/equip-ment maintenance operations set by MWC. The success of training willdepend upon: the comitment and support given to it by MWC management,the design of a sound program and thorough coordination and supervisionof agreed training activities to be carried out by MWC and coordination

- 61 -

ANNEX 3-6Attachment 3Page 3 of 10

of parties concerned to ensure that appropriate resources are available.The success of the training program will be measured by the ability ofMWC staff to perform their job functions at acceptable standards withoutthe supervision of the technical assistance specialists.

B. Scope of Management Assistance

9. The main activities will consist of:

(a) assisting in implementing the proposed reorganization of MWC;

(b) assisting in arranging procedures for preparing adequate anddetailed budgets for departments and emergency projects;

(c) assisting in drafting overall and detailed programs (yearly.quarterly, monthly and weekly) for all activities;

(d) assisting in monitoring and periodic evaluations of activitiesand holding of regular meetings at different managementlevels;

(e) setting up and assisting in implementing simple reportingsystems;

(f) assisting in set-up and implementation of a financial manage-ment information system according to the accounting systemset-up under the road maintenance management assistance andestablishing links with the accounts section of the Ministryof Finance to keep systems up to date;

(g) assisting in set-up and implementation of all other necessarymanagement information systems; and

(h) giving in-house management training.

C. Technical Assistance

10. The technical assistance team will consist of:

(a) a public works management expert (team leader);

(b) a specialist in clerical support and logistics in publicworks; and

(c) a training advisor.

Actual training is done by the technical specialists under the roadmaintenance management program and the workshop management assistanceprogram. To this effect the training assistance can count on thefollowing experts for conducting training on a part time basis:

- 62 -

ANNEX 3-6Attachment 3Page 4 of 10

td) a highway engineer and a road foreman; and

(e) a master mechanic, mechanical superintendent, mechanicalengineer and storeman/supplies technician.

Each team member mentioned under a, b, and c will have a counterpartassigned to him/her. The counterparts will work closely with theexperts and are supposed to be the executing part of the team. It hasto be prevented as much as possible that team members take over linefunctions in MWC, except in case of emergencies. The MWC countelpartsfor the team will be for:

team member a - the Director of Technical Services

team member b - the Chief of the Administrative Division

team member c - the Training Officer

The periods in which the team will be available are as follows:

-- public works management expert, ten months and periodicvisits over following two years, totalling 14 man months.

-- specialist in clerical support and logistics, six monthsand periodic visits over the following year, totallingnine man months.

- training advisor, inception period of two months andshort visits of two to three weeks each during a periodof four years, totalling six man months.

11. In addition, the NWC will take steps to ensure the following:

(a) assignment of counterparts as indicated above;

(b) the strengthening of the Training Committee consisting ofdivisional managers headed by the Under Secretary foradministration, whose main functions would be to definetraining policies, determine the areas of training, and assistin programming the implementation of training activities asrequired;

(c) issuing an effective policy statement on career developmentand training;

(d) consolidating existing training activities managed by theTraining Officer responsible for preparing, implementing,supervising and evaluating all training activities;

(e) the creation of a Planning Committee, consisting of heads ofdepartments, directors and divisional managers headed by the

- 63 -

ANNEX 3-6Attachment 3Page 5 of 10

Permanent Secretary or one of his Under Secretaries who willmeet regularly (at least every quarter) to plan, coordinateand monitor all MWC operations. The management expert will beinvited for these meetings;

(f) formal changes in MWC organizational structure as agreed uponafter the recommendations and the following discussions on thereorganization study during the project preparation phase;

(g) make adequate arrangements for the selection of suitable staffto be trained as instructors and for releasing existing andfuture staff, in a timely manner, to attend agreed trainingprograms;

(h) provide classroom and workshop facilities for the training ofmechanical staff at the Kotu Workshop;

(i) provide office and training equipment and materials and spareparts as required for program implementation; and

(j) provide annual funds and any other resources required forimplementation of the agreed training program.

IV. WORK DESCRIPTION AND QUALIFICATIONS OF EXPERTS

A. Public Works Management Expert

12. The expert will assist and advise the top level managementteam of MWC. In particular he/she will:

-- prepare and assist in implementing the agreed changes instructure and procedures of the organization of MWC.

-- inform and discuss with key persons in MWC the changesand hence the expected developments in job performance.

arrange that medium- and long-term plans and activitieswill be discussed and decided on in good time through thePlanning Committee.

-- arrange that periodic meetings will be held on everymanagement level to coordinate activities and will attendthese meetings on advisory basis.

-- implement a reporting system for every department/divi-sion which ensures that necessary information reaches thenecessary management level.

-- design and assist the divisions in implementing manage-ment information systems which enables every manager to

Si'

- 64 -

ANNEX 3-6Attachment 3Page 6 of 10

get insight, in good time, of the progress which is madeby his unit with regard to available budgets.

-- provide in-house management training in:

* management techniques

* budgetting/planning

* discussion techniques

* project management, etc.

through personal assistance, case-studies, courses andother training activities.

- report periodically on progress that has been made anddiscuss the reports at the relevant management level.

The expert should be a well qualified public works manager, preferably acivil engineer with at least five years' experience in public worksmanagement and extensive experience in management of organizations indevelopment countries, preferably sub-Sahara Africa.

B. Specialist in Clerical Support and Logisticb in PublicWorks

13. The clerical specialist will assist the AdministrativeDivision of NWC. In particular he/she will:

- design and assist the division in implementing an inte-grated registry for MWC, by creating:

* personnel registry

* project files

* correspondence files

* registry of incoming and outgoing post, etc.

- design and assist in implementing a budgetting system toenable NWC to claim adequately and on time the necessarybudgets for the next fiscal year.

- design and assist in implementing a system for timelyprovision and monitoring of warrants for every divi-sion/department.

- arrange and assist in implementing the upgrading of MWCheadquarters and efficient regrouping of offices for

- 65 -

ANNEX 3-6Attachment 3Page 7 of 10

management and other personnel, creation of meeting room,etc.

-- evaluate the systems one year after implementation andgive advice on necessary alterations.

-- write manuals on the necessary procedures needed to getthese systems working.

-- provide in-house training in

* filing and reg, dtering

* reporting

* etc.

through personal assistance, case-studies, courses andother training activities.

The clerical specialist shou'd have public administration experiencewith at least five years in clerical support and logistics in publicorganizations. He/she should have some experience in developingcountries, preferably sub-Sahara Africa.

C. Training Advisor

14. The Training Advisor will assist the Training Officer inpreparing a detailed program and schedule of activities to meet thetraining needs of NWC personnel and will assist inter alia to:

Phase I

(a) prepare an inventory of all relevant staff to be involved withroad and equipment maintenance, broken down by categories andlevels, headquarters and field offices;

(b) assess the capability of existing maintenance personnel anddetermine (additional skills and knowledge required) theirtraining needs;

(c) provide MWC's management with a list of personnel requiringtraining and upgrading for a four-year training program. Thislist should be divided by division, category/level, year andpriorities;

(d) coordinate training plans/activities with the MWC TrainingCommittee;

(e) establish and implement an in-house literacy program incooperation with the Ministry of Education;

- 66 -

ANNEX 3-6Attachment 3Page 8 of 10

(f) develop a program for different categories and levels ofpersonnel, taking into consideration MWC's manpower require-ments and budgetary constraints. The program should bepresented along the following lines:

(i) a one- to two-year Priority Program to start as soon aspossible; and

(ii) a Regular Program which would follow and consolidateaction taken during the Priority Program. The trainingcourses/activities would be updated annually in consulta-tion with MWC and IDA.

(g) determine the number and categories of MWC instructors re-quired and set up programs for their training bearing in mindthat eventually they would have to carry out most of thetraining activities initiated by the expatriate technicalexperts. Prepare special courses for them. Start theirselection and training as early as possible;

(h) determine training equipment and materials required forrelevant courses, especially audio-visual aids, and assistwith their preparation and/or specifications and purchase;

(i) determine training courses/programs to be carried out by GTTIand MDI and, provided they fit into overall agreed program,ensure their implementation;

(j) ensure that line supervisors conduct on-the-job training undernormal work situation. This will constitute a substantialpart of the training program, and will be combined withclassroom training and/or further education;

(k) prepare annual training budgets;

(1) identify and select appropriate/relevant highway agencies andequipment manufacturer's training centres to be used foradvanced training abroad for senior MWC staff;

(m) selection, testing and scheduling of fellowships;

(n) design a system to (i) monitor training courses while they arebeing carried out and, later, (ii) assess trainees' perfor-mance. This task should be conducted jointly by staff of thetraining section and line supervisors;

(o) develop an evaluation system to determine whether the trainingprogram objectives -- set in terms of expected outputs,effects and impact - have been met; and

- 67 -

ANNEX 3-6Attachment 3Page 9 of 10

(p) prepare a schedule of activities and take any other actionconsidered necessary for the satisfactory planning and imple-mentation of training.

Phase II

Implementation, supervision, evaluation of the training program.

(a) implementation of training courses/activities;

(b) continuing training/upgrading of MWC counterparts andinstructors;

- (c) supervision of training courses/activities conducted by GTTIand MDI;

Cd) monitoring/supervision of training courses while they arebeing carried out as well as following up quality control tobe conducted jointly by the Training Officer and linesupervisors;

Ce) evaluation of the completed training program (as previouslyagreed); and

Cf) any other action considered necessary for satisfactory imple-mentation of various components of program.

15. The advisor will have appropriate experience in human resourcedevelopment in the highway sector including; course development, testingand evaluation, training aids and equipment, budgeting and finance,scheduling, instructor training, and overall program coordination. Theadvisor's work schedule will encompass an initial period of two monthsat start-up, with periodic follow-up visits (of approximately two weekseach) every six months.

V. Reporting Schedule

16. The Training Officer assisted by the Training Advisor will beresponsible for preparing the following reports for the PermanentSecretary within the time limits specified:

(a) a short Inception Report within two months of arrival of theTraining Advisor;

(b) quarterly progress reports;

(c) draft Final Report by mid-1990; and

(d) Final Report within one month of receiving comments on thedraft.

- 68 -

ANNEX 3-6Attachment 3Page 10 of 10

17. The management expert with the clerical specialist will beresponsible for preparing the following reports for the PermanentSecretary within the time limits specified:

(a) quarterly progress reports during the first year;

(b) half-yearly progress reports during the following period;

(c) manuals as described in the work description (paras 12 and13);

(d) short draft final reports at the end of the respective assis-tance periods; and

(e) final reports within one month of receiving comments on thedraft.

Source: MWC and MissionWAFT1February 1986

- 69 -

ANNEX 3-7Page 1 of 2

THE GAMBIA

SECOND HIGHWAY HIAINTENANCE PROJECT

Technical Assistance for Transport Planning

Outline of Terms of Reference

A. Objective

1. Technical assistance to the Planning Unit of MWC will beprovided by a Transport Economist consultant over a period of threeyears; the consultant will be responsible to the Planning Officer. Thefunctions of the Planning Unit are provided in the Attachment. Thegeneral objective is to enable the Government to improve and expand itstransport planning capabilities through:

(a) effective organization and operation of transport planningprocedures;

(b) preparation of guidelines for transport planning activities,including feasibility studies; and

(c) provision of on-the-job training of local professional staffto ensure that, by the end of the advisory period, thePlanning Officer will be capable of carrying the functionswithout further technical assistance.

B. Scope of Service

2. The Consultant will assist the Planning Officer in thefollowing general areas:

(a) planning and organization of the transport sector;

(b) formulation of transport policies, particularly those relatingto effective coordination of transport modes;

(c) formulation of a detailed program of transport rehabilitationand investments;

(d) reviewing problems of transport charges and in particular thepricing of ferry services;

(e) establishing a system of collection and periodic updating ofdata for the transport sector;

(f) establishing a methodology for selecting feeder roads to beupgraded;

- 70 -

ANNEX 3-7Page 2 of 2

(g) determining the role of river transport and its coordinationwith road transport; and

(h) recruiting and training of Government personnel for transportplanning and coordination.

C. Work Plan

3. During the first three months of the assignment the Consultantwill, together with his counterpart and in close consultation withplanning staff of HEPID, prepare a work plan, including terms ofreference for studies to be carried outside consultant teams, for theapproval of the Permanent Secretary, HWC, and IDA. The plan will givedetails of priorities assigned to the activities to be covered as listedunder B above. It will also provide an outline of the methodology andtiming of different reports.

D. Qualifications of the Consultant

4. The Consultant should have a degree in economics and a goodinderstanding of engineering problems. He should l-.e substantialexperience in transport planning and have worked in developingcountries.

WAPT1February 1986

- 71 -

ANNEX 3-7AttachmentPage 1 of 2

THE GAMBIA

SECOND HIGHWAY MAINTENANCE PROJECT

Functions of the Transport Planning Unit in MWC

The Planning Unit will report directly to the PermanentSecretary of MWC. The Planning Unit will have responsibility for allplanning tasks for the transport sector and sub-sectors which are theresponsibility of MWC. In particular, it will assist the MWC in thefollowing:

1. Elaboration of sectoral development objectives, strategy andpriorities within the framework of the overall national developmentobjectives, strategy and priorities of the medium-term and the annualplans.

2. Formulation of sectoral development programmes for inclusionin the medium-term and annual plans, in cooperation with the SectoralPlanning Committees.

3. Formulation of developmental and economic policies needed forefficient implementation of the programmes.

4. Appraisal of development projects and scrutiny of otherproposals submitted for inclusion in the sectoral developmentprogrammes. The project appraisal will include assigning ofintra-sectoral priorities.

5. Preparation of the annual development budget of the MWC.

6. Monitoring of implementation of the sectoral developmentprogrammes and projects, in particular by operating in cooperation withthe MEPID, the Progress Reporting System on Plan Projects instituted byMEPID.

7. Assisting departments, parastatal enterprises and thetechnical divisions of the MWC in:

(a) formulation of development projects and programmes;

(b) establishing appropriate progress reporting at the projectlevel.

8. The priority tasks of the Planning Unit will consist of:

(a) the preparation of studies on planning and organization of thetransport sector;

(b) the formulation of transport policy proposals;

- 72 -

ANNEX 3-7AttachmentPage 2 of 2

(c) preparation of studies and recommendations on effectivecoordination between road and river freight transport;

(d) formulation and periodic updating of a detailed program,including priority ratings, for transport rehabilitation andinvestment projects;

(e) studying, reviewing and monitoring the adequacy andconsistency of transport charges including road user charges,ferry rates, river transport charges, port charges, roadfreight rates and passenger fares; and

(f) maintaining and periodically updating data on the inventoryand physical performance of the transport sector and inparticular motor vehicle statistics, road traffic counts, andaxle load and accident statistics.

Source: HEPID and MissionWAPTIFebruary 1986

- 73 -

ANNEX 3-8Page 1 of 4

THE GAMBIA

SECOND HIGHWAY MAINTENANCE PROJECT

Study of the Domestic Contracting Industry

Terms of Reference

1. Introduction

1.1 The Government of the Gambia, through the Ministry of Worksand Communications (MWC), wishes to review the role of domesticcontractors in the construction and maintenance of civil works,especially roads. While it is anticipated that contracts for majorconstruction projects will continue to be carried out by internationalfirms for some years to come, there is an increasing demand for civilworks and the maintenance of existing infrastructure, which would besuitable for domestic contractors.

1.2 Therefore, MWC has decided to retain a consultant to providethe services outlined below.

2. Objective

2.1 To develop the domestic contracting Industry by improvinglocal capability for executing, in particular, road and buildingmaintenance activities which are presently being carried out mainly byforce account operations.

3. Scope of Consultant's Work

3.1 The consultant will identify the major constraints andobstacles which have prevented domestic firms from taking part in roadand building construction and maintenance. Based on this review, theconsultant will prepare a strategy for developing the domesticcontracting industry for road and building maintenance and minor worksincluding an action plan focusing on short-to medium-term effortsrequired to initiate a development momentum as appropriate for themarket size and potential growth in The Gambia.

3.2 In more detail, the consultant will, inter alia, review andassess:

(a) government's policy toward the local construction industry,including MWC's force account operations, internationalcontractors, locally based foreign firms and domesticcontractors;

(b) the incentives that might be necessary to encourage thecreation and growth of a domestic contracting industry.including:

- 74 -

ANNEX 3-8Page 2 of 4

(M) investment and tax codes;(ii) authority of the various public-sector agencies to

procure works by contract;(iii) preferences for domestic contractors;(iv) the public sector procurement systems and practices of

awarding contracts to companies and individuals;(v) financial assistance to contractors, such as advances for

materials and equipment;(vi) nomination of an agency to be the contracting industry's

interlocutor with Government; and(vii) technological requirements to consider the feasible use

of locally available material and human resources.

3.3 The consultant will investigate the capacity and capability ofthe local contracting industry, in particular for carrying out road andbuilding construction and maintenance activities. This will include butnot be limited to:

(a) size, location, and type of activity, etc. of privatecontractors (foreign locally-based and domestic) andgovernment force account operations engaged in road andbuilding construction and mair.tenance activities;

(b) existing local production and processing of constructionmaterials;

(c) past experience with and performance of private contractors,including the role of domestic firms as partners in jointventures and sub-contractors;

ud) availability of qualified local manpower at different levels;and

Ce) existence and role of contractor associations in The Gambia.

3.4 Related to the demand on the local contracting industry, theconsultant will estimate:

(a) the public sector road construction and maintenance activitiesfor the next five years and the part thereof which is suitablefor execution by domestic contractors; and

(b) other public and private construction demands for the nextfive years, and the part thereof suitable for domesticcontractors.

3.5 The consultant will review development and/or growthconstraints, including:

(a) availability of local entrepreneurial talent;(b) fluctuations of construction demand;(c) reliability of the supply of equipment, spare parts and raw

materials due to border, transportation or other problems;(d) profitability;(e) availability of skilled manpower;(f) legal or administrative constraints;

- 75 -

ANNEX 3-8Page 3 of 4

(g) complexity of bidding documents including designs andspecifications which are difficult to attain with an infantindustry;

(h) flnancial constraints for obtaining equipment, materials andworking capital; and

(i) adequacy of timely flow of funds from clients to contractors.

3.6 The consultant will explore the suitability of existingfinancial institutions for lending to domestic contractors and forsupplying bid and performance bonds.

3.7 Related to education and training, the consultant will assess:

(a) the industry's manpower requirements; and(b) the suitability of existing education and training

institutions, such as GTTI and MDI, to meet both thequalitative and quantitative manpower requirements of theconstruction industry under assumption of growth which theconsultant assumes attainable for the industry.

3.8 The consultant will maintain close contact with advisors andconsultants to MWC and take such other actions as necessary to meet theprincipal requirements stipulated in paragraph 3.1.

4. Work Program and Reports

4.1 The consultant's services will aggregate about 4 m-m and willbe carried out in three phases:

(a) Phase I will include about four weeks to review and assess theareas of study indicated in the "Scope of Work". The findingsand conclusions of Phase I shall be presented in an interimreport to be submitted to MWC not later than one month afterthe starting date.

(b) Phase II will include about four weeks to prepare, in closeconsultation with MWC, a strategy for developing the domesticcontracting industry in minor road works and maintenanceactivities. The strategy will propose short, medium, andlong-term goals, and an action plan aimed at resolving the keyimmediate problems and constraints identified during Phase I.The action plan will contain schedules and programs forvarious steps, including training courses, and identify thepersons or institutions to be responsible for theirimplementation. The action plan shall be presented to MWC notlater than 2 months after the starting date.

(c) Phase III will commence within one month of receiving commentsfrom MWC and IDA on the action plan. The plan will befinalized and the consultant will conduct about two months ofseminars and on-the-job training for domestic contractorsinvolved in, or interested in, road maintenance activities,

- 76 -

ANNEX 3-8Page 4 of 4

including coordination of the various steps in the agreedaction plan. The final draft report to be issued at thecompletion of Phase III will briefly summarize theaccomplishments of the domestic contractors and areas whichstill need attention to enable satisfactory participation oflocal firms in road maintenance activities.

WAPTIFebruary 1986

- 77-

ANNX 3-9

THE GAMBIA

SECOND HIGHWAY MUINTENANCE PROJECT

Cost Estimates and Financing Plan

1. Project base costs have been eutiasted at February 1986 pricesbased on estimates prepared by MWC consultants and the Apprisal mis-sion. An exchange rate of 1US$ - Dalasis 5.2 has been used. Thedetailed cost estimates, which exclude central workshop and headofficeoverheads, are shown in Attachment 1.

2. Physical contingencies have been applied as follows:

(a) 10Z for contracted civil works covering road and bridgerehabilitation, and supervision;

(b) 5% for institution building covering technical assistance,studies and training; and

(c) 02 for the road uaintenance program covering a four-and-onehalf-year (1986 to mid-90) time slice, extended by one year toallow for slippage.

3. Price contingencies have been applied to both the foreign andlocal base costs (including physical contingencies) at the estimatedforeign inflation rates of 7.0Z for 1986 and 1987. 7.52 for 1988, 7.7%for 1989, 7.6% for 1990, and 4.5Z for 1991 onwards. It is expected thatfuture adjustments in the exchange rates would be made by the Governmentif the local inflation rate is much higher than foreign inflation rates.

4. The tentative financing plan for the project is presented inAttachment 2. IDA and the cofinanciers would finance: (i) 1002 ofequipment, materials and initial spare parts, purchases, technicalassistance, project auditing, studies and training; (ii) 100% of foreignand 50% of local costs of road and bridge rehabilitation works ardsupervision; and (iii) an average of 60% of direct operating costs(including salaries and wages) for periodic and routine maintenance.

5. Attachment 3 shows the expected annual distribution of projectcosts based on the agreed Implementation Schedule.

6. Attachment 4 presents the estimated annual budget contributionto be made by the Government for the project, excluding central vorkshopand headoffice overheads. The Government's contribution will increasesignificantly from FY87/88 when the road and bridge rehabilitation worksare expected to start. Also, IDA financing of the road maintenanceprogram will be reduced to 80% for direct operating expenditures(excluding salaries and wages) incurred in FY87/88 and to 60%thereafter. Consequently, the Government's budget will have to coversome foreign exchange costs, equivalent to about one third of fuelimports in FY87/88 and three quarters of fuel imports thereafter.Attachment 5 shows the estimated annual budget requirements (in February1986 constant prices) for road maintenance programs after the end of theproject.

WAPTIFebruary 1986

ANNEX 3-9z ~ 78 - THE GAMBIA Attachment 1

Page 1 of 2SECOND HISHMAY MAINTENANCE PROJECT

Project Cost Estiaute

(In Dalasi 0001 (In US$, 0001Total Total

Local Foreign Total Local Foreign Total

Salaries Contracts Salaries Contractsand and and and

Wages at Supplies IWges a/ Supplies

Maintenance Program

Equipment and vehicles - IUD 0 0 6059 6059 0 0 1165 1165- Shopping 0 0 936 936 0 0 180 190- UNSO 0 0 276 276 0 0 53 53- RED 0 0 1920 1920 0 0 350 350

Periodic mintenance- paved roads 343 331 3699 4372 66 64 711 841- gravel roads 1069 25 4054 5141 206 5 790 9O

Routine maintenance- paved roads 2049 902 4615 7566 394 173 009 1455- gravel roads 1997 85 3252 5224 363 16 625 1005

Fder rd maint. (UNSOI-force Account 316 207 932 1535 61 55 179 295-Contract 0 289 1155 1444 0 56 222 278

Experimental low cost paving 15 117 410 542 3 23 79 104Read maintenance assistance 0 676 6032 6708 0 130 1160 1290Workshop management assistance 0 155 1405 1560 0 30 270 300

Subtotal 5679 2067 34643 43189 1092 551 6662 8306Physical contingencies 0 0 0 0 0 0 0 0Price contingencies 1182 444 5354 6991 227 85 1030 1342

TOTAL 6661 3311 3997 50170 1320 637 7692 9648

Road and Bridge Rehabilitation

Bund Road- Civil works 0 936 3744 4690 0 100 720 900- Supervision 0 41 333 374 0 9 64 72

South Dank Road- Civil works 0 1904 7634 9538 0 366 1468 1934- Supervision 0 52 469 520 0 10 90 100

Brumn Bridge- Civil works 0 932 3328 4160 0 160 640 900- Suprvision 0 63 561 624 0 12 109 120

Subtotl 0 3!929 1606b 19996 0 736 3090 3926Physical contingencies 0 3,3 1607 1990 0 74 309 383Price contingencies 0 771 3233 4004 0 148 622 710

TOTAL 0 4982 209 25890 0 956 4021 4979

79 AIMEI 3-9

THE SAIA Attachmnt IPage 2 of 2

SECOND HIONNAY NAINTENANCE PROJECT

Project Cost Estimate

(In Dalaui 0001 (In US, 0001Total Total

Local Foreign Total Local Foreign Total

Institutional Strengthening

Construction industry assistance 0 21 187 206 0 4 36 40Project auditing 0 25 Z35 260 0 5 45 50Tran,port planning. IC 0 104 936 1040 0 20 190 200Training assistance, MEC 0 52 182 234 0 10 35 45Training saterials and courses 0 311 391 702 0 60 75 135Nanagement assistance, "MC 0 203 1125 2029 0 39 351 390Transportation studin 0 79 702 790 0 15 135 150

Sototal 0 794 4459 5252 0 153 857 1010Physical contingecin 0 40 223 263 0 9 43 51Price contingencies 0 135 710 952 0 26 138 164

TOTAL 0 969 539B 6367 0 186 103B 1224

Project Preparation Facility (PPF) 0 286 2574 2960 0 55 495 550

lotal Base Cost 5679 7775 57743 71197 1092 1495 11104 13692Total Physical contingencies 0 423 1930 2252 0 91 352 433Total Price contingencies [192 1350 9305 11837 227 260 1799 2276

GRAND TOTAL 6961 9547 69979 9526 1320 1936 13246 16401

Source: NECa/ Of which salaries of IMC road maintenance personnel represent about 47Z.

IIAPTIFebruary 1986

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- '18-

- 82 -

ANNEX 3-9Attachment 4

THE GAMBIA

SECOND HIGHWAY MAINTENANCE PROJECT

Estimated Government Budget Contribution('000 Dollars)

Component 85/86 86/87 87/88 88/89 89/90 90/91 Total(2nd(Sem)

Contracts and Supplies

Road Maintenance Program- Local 0 0 20 22 18 18 78- Foreign 0 0 126 254 289 250 919

Road and Bridge Rehabilitation- Local 0 0 293 186 0 0 479

Sub-total 0 0 439 462 307 268 1,476

Salaries and Wages (Road Maint.)

Sub-total 107 252 228 215 260 258 1,320

Total 107 252 667 677 567 526 2,796

WAPT1February 1986

- 83 -

ANNEX 3-9Attachment 5

THE GAMBIA

SECOND HIGHWAY MAINTENANCE PROJECT

Estimated Annual Road Maintenance Budget RequirementsAfter End of Project 1/

Direct Operating Costs (February 1986 constant prices (US$'000)

Local Foreign TotalContracts and Supplies

- Periodic Maintenance 10 310 320- Routine Maintenance 30 290 320

Salaries and Wages 200 0 200

Total 240 600 840

Replacement of Road Maintenance Equipment

Estimated Minimum 0 175 175

1/ Based on 1,300 Km road network.

Source: MWCWAPT1February 1986

,GMfA

5E MH ADUSAC PM:r

Inplmtion Schedule

I mm^lYear _ _ [ 1986 1987 1988 1989 1990 1991ACrI'IVY 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4

Madntawc ; lElizmt aun Vhitcles P. ,4 D. ElPeriodic Mainte eKmce- Paved Roads (100 Kb Ssr & 131M fog) f) )- Gravel Roads (260 Km Gravelli) 28Km Km 17 KmRoutine Maintenance- Psved Roads- Gravel RoadsU{;O Feeder Road MEintanwce (340 Y.)E>Th rnwital Low-cost Paving (5 mb)Road Maitentace Assistamce ,IWolrshop Mwisg.t Assistance _ _

Rcad aM Bridge RehabilitatIlmBurid Road JP B, A. -DSoth Bank RoadBrume Bridep A

InstituticG d Strenen1 Construction Industry Assistance .Pmoject Iuditixg _ _ _Trauport PlamingEqlpment amn Materials, MWC _Trizduig Materials amu CmrsesMaragmit and Traing Assistawe, MW _ _ _ _Trsnportation Studies..

P - Prep3rstion of Specif icatioscDBidding Dklments or Termo of ReferencB - ITvite Bids or Proposals

A - #pronve Ccntrwcts

D - DoUalsy or Mobbtltimn

.'b rary 1986

- 85 -

ANNEX 3-11Page 1 of 2

THE GAMBIA

THE SECOND HIGHWAY PROJECT

Estimated Disbursement Schedule

Date of Cumulative Cumulative DisbursementsEnd of Disbursements Disbursements Project HistoricalQuarter (US$'000) (US$'000) Estimate Profile

(Z) (%)FY87

30 Sept. 86 550 550 9 131 Dec. 86 400 950 1631 Mar. 87 300 1250 22 830 June 87 350 1600 28

FY8830 Sept. 87 350 1950 34 1931 Dec. 87 350 2300 4031 Mar. 88 350 2650 46 3130 June 88 350 3000 52

FY8930 Sept. 88 350 3350 58 4431 Dec. 88 350 3700 6431 Mar. 89 300 4000 69 5630 June 89 200 4200 72

FY9030 Sept. 89 200 4400 76 6831 Dec. 89 200 4600 7931 Mar. 90 150 4750 82 7830 June 90 150 4900 84

FY9130 Sept. 90 150 5050 87 8731 Dec. 90 150 5200 9031 Mar. 91 150 5350 92 9330 June 91 150 5500 95

FY9230 Sept. 91 100 5600 97 9731 Dec. 91 100 5700 9831 Mar. 92 100 5800 100 100

WAPTIFebruary 1986

THE GAMBIA: SECOND HIGHWAY MAINTENANCE PROJECTESTIMATED DISB'JRSEMENT PROFILE

lee

-- EXPECTED DISDWSE?NT PROFILE98o . . W.AFRICA HUY PROJECTS,IDACHISTORICAL PROFILE)

70-

a88

so-

1- ~ 40 csn

-Cc ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~0%

~30

208

I~~~~~~~~~~~~~~~~~~~~~~~~~0I

18 UF FY88 FY89 FY90 FY91 FY921_

FY88 THIRU FY92EXPECTED BOARD APPROVAL s MARCH 1066EXPECTED CREDIT EFFECTXVENESSI JuLy 1986S~UMeu -~ ESTZATU

VAPTIPEUPJN 1666

- 87 -

ARM 3-12ME CA

smm HE1W NGIiBTA WEc

Ihlt Rat1 for Rood I lntme ActivItL

wbrk Direct cP r tizBmuslt Eqi- 21 3/

Acti__ Code unit Total Ovbeieads Arr. S+W- C+S- 3RFmb

BY :e AMCrGmwl Roadsepipdr Mummry 7 each 1,312.80 325.73 108.07 212.91 666.09

Sims (provide & Insts1l.) 8 each 1,312.80 325.73 108.07 212.91 666.09culverts (provide & lnst.U) 9 * 1,121.83 278.35 75.65 149.04 618.79ClQarig qegtarim 10 ha 2,128.40 528.10 299.48 591.20 709.62 1/Cli ming drainue 11 gmgm-day 766.22 190.11 107.81 212.83 255.47 1/Patching (nuMl) 12 ;9 86.81 21.54 13.23 22.18 29.86 Tla. Activity 100Hlsca_lmosr routine tao"w 13 gawg-day 767.38 190.40 108.07 212.91 256.00 1/Patrditg (UsCh'd) 14 mg 31.36 7.78 6.51 3.96 13.11 %aa. Activity 100Dtch Clearing 15 km 275.66 68.40 54.90 31.39 12D.971lAgt icnB 16 hk 322.46 80.01 66.67 29.18 146.60Reiapi"fg ro&aiy 17 hk 2,268.13 562.77 511.54 176.86 1,016.96Gera* regrmatUlng 18 m' 34.22 8.49 7.52 3.79 14.42Stodplrtag davel 100 MS 10.05 2.49 2.42 0.89 4.25

Paed RosClering Xegtatiw 20 ha 2,128.40 528.10 299.48 591.20 709.62 1/cameadn dsEin 21 gaig-day 766.22 190.11 107.81 212.83 255.47 1/Pathing (prmlia 22 mg 1,036.39 257.15 62.42 124.05 592.77 lba. Activity 2011acel.laoun routine tai,s 23 gaig-day 766.22 190.11 107.81 212.83 255.47 It

Patcding dwouldeis (nal) 24 up 88.70 22.01 13.20 22.18 31.31 ncl. Activity 200Rpvelling ixuilders (uadb'd) 25 au 47.99 11.91 9.86 5.75 20.47 ITnO. caivity 200Po nMt repairs 26 u2 103.51 25.68 13.91 22.53 41.39levelling pveint (pradx) 24 a' 824.64 204.61 34.53 60.76 524.74 TlE]. Activity 201S.Ul mrface rOSeling 29 ltre 8.06 2.00 0.92 0.79 4.35 xEl. Activities 202.Cei1l reDa1ig 30 a 2 5.00 1.24 0.18 0.15 3.43 204 aud 205.Fog Seal 31 u2 125.43 31.12 1.75 2.10 9D.46Stockiling pa vel 200 as 10.05 2.49 2.42 0.89 4.25PraFdx * ifacture 201 as 653.28 162.09 8.52 17.64 465.03

ckle diell g. prNcesstng 202 *' 101.90 25.28 23.24 17.33 36.05 Excl. ExtractionAB8egRte trmort 203 ms-ha 78.85 19.56 17.37 5.41 36.51

BY a0uRACrCaesring W eetatio 27 b ha 609.58 - - - 609.58hgregate trnunport 204 lOo-bn 118.0t - - - 118.04Chold sbell prnctzent 205 z? 66.34 - - - 66.34

1/ Uj=er 14mts of force acrut and contracted operatians for cndes 10, 11. 13. 2D, 21. 23 axd 27vi.U be aemd yaay.

2/ Salaries ad wvues.3/ Cactsr and sapplies: these rates vfll be used for MA ddbis. i nta.

So : NC

Fbrumry 1986 -

- 88 -

ANE 3-13THE GABUA

SDCOND UIGQAIY MAIWZENAWCK PROJECT

Annual Road Haintenance Targets(Dalamis)

Work

Meas tActivity Code Unit FY85186 7186/87 FY87/88 F188/89 P189/90 9M0/9l

BY FORCE ACCOUNTGravel Road.Repair Masonry 7 each To be determined

Signs (provide & install) 8 each To be determined

Culverts (provide & install) 9 m To be determined

Clearing vegetation 10 ha 21 21 21 21 21 21

Cleaning drainage 11 gang-day 687 687 687 773 828 828Patching (maual) 12 *' 2,059 2,059 2,059 2,059 2,103 2,103

Miscellaneous routine tasks 13 gang-day 205 205 205 205 210 210

Patching (mech d) 14 e' 0 13,530 18,810 14,960 13,750 13,750

Ditch clearing 15 km 734 811 563 741 834 834

Light grading 16 km 1,824 1,824 1,964 2,257 2,348 2,373Reshaping roadvay 17 km 0 123 171 136 125 125

General regravelling 18 a 40,950 87,750 79,560 84,825 43,875 0

Stockpiling gravel 100 U3 2,058 0 20,868 17,018 0 15,853

Paved RoadsClearing vegetation 20 ha 23 24 23 22 23 24

Cleaning drainage 21 gang-day 374 383 371 358 362 385

Patching (premix) 22 Ds 654 676 573 556 584 617

Hisceltaneous routine tasks 23 gang-day 234 240 232 224 226 241

Patching shoulders (manual) 24 m3 2,340 2,395 2,320 2,240 2,260 2,405

Regravelling shoulders (uechd) 25 m' 4,680 4,790 4,640 4,480 4,520 4,810

Pavement repairs 26 Mo 1,360 1,425 1,285 1,188 1,223 1,273

Levelling pavement (premix) 28 *' 391 420 445 421 410 423

Small surface resealing 29 litre 23,000 23,360 19,660 20,550 23,410 24,800

General resealing 30 *2 0 259,720 283,800 1l8,100 0 0

Fog Seal 31 m2 0 59,630 0 360,000 360,000 0

Stockpiling gravel 200 ' 7,020 7,185 6,960 6,720 6,780 7,21S

Premix manufacture 201 o' 1,045 1,096 1,018 977 994 1,040

Cockle shell aggr. processing 202 n3 2,000 5,579 3,668 657 0 0

Aggregate transport 203 ms-km To be determined

BY CONITRACI

Clearing vegetation 27 ha 225 230 223 215 217 231

Aggregate transport 204 100O -km 560 3,100 1,850 0 0 0

Cockle shell procurement 205 12 2,500 4,111 4,621 672 0 0

Note: Quantities for Codes 10, 11, 13, 20, 21, 23 and 27 are not be be exceeded by more than 10%.

Source: NWC

February 1986

- 89 -

ANNEX 4Page 1 of 2

GAMBIA

SECOND HIGHWAY MAINTENANCE PROJECT

Economic Analysis: Main Assumptions and Results

1. Except for the short coastal strip and the capital, Banjul,which has an industrial and service base, The Gambia has atn agriculturaleconomy. Products consist mainly of groundnuts, foodgvains, cotton andlivestock which have to be transported to Banjul for consumption orexport. The flow of goods into the interior covers agricultural inputssuch as fertilizer and seeds, foodstuff and other necessities.

2. In the absence of the proposed project investments, roadconditions would deteriorate and cause physical bottlenecks fortransport movements. Estimated project benefits reflect only thesavings in vehicle operating costs and some savings in maintenance costsgenerated by the project. Benefits generated by technical assistancefor institutional strengthening (about US$2.4 million equivalent whichcould not be allocated to particular road programs) are expected to havelong term effects on road and equipment management practices; thesebenefits have not been quantified. Expenditures from the PPF advanceare treated as sunk costs.

3. Statistical data normally used to gauge traffic are not fullydependable. Vehicle registration data are inconsistent; fuelconsumption is only partially representative because of sales to andfrom Senegal; traffic counts had to be adjusted for counting errors andthe substantial fluctuations resulting from poor harvests because ofadverse weather conditions. The basic traffic data which have been usedappear acceptable, but for a few roads included in the regravellingprogram further traffic counts will be done before regravelling isstarted to ensure that the traffic is sufficient to justify theinvestment.

4. Cost and benefit streams have been updated to February 1986prices. Even thouugh the country is desperately short of foreign ex-change, the foreign currency costs have not been shadow priced becauseboth the road maintenance work and the resulting vehicle operatingsavings contain a high foreign exchange component. Cost and benefitestimates used in the economic analysis exclude all taxes. Attachment 1presents assumptions used in allocating project costs to various compo-nents, and Attachment 2 gives distribution and yearly phasing of thecosts.

5. Project benefits mainly arise from reduced road maintenancecosts and reduced vehicle operating costs as a result of improved roadconditions brought about by the project. Savings in vehicle operatingcosts are quantified with the help of known relationships between agiven road condition and related vehicle costs. Vehicle operatingcosts for different road conditions used for the analysis are given in

- 90 -

ANNEX 4Page 2 of 2

Attacbment 3. and a definition of road conditions is given inAttachment 4. Attachment 5 summarizes main assumptions used forestimating proiect benefits.

6. Attachments 6 to 10 present cost benefit streams relating tomain project components (viz, gravel road maintenance, paved roadmaintenance, total road maintenance program, South Bank RoadRehabilitation and Bund Road Rehabilitation). Attachment 11 presents asummary of economic rate of returns (ERR) from various projectcomponents. Further details on economic analysis are presented in theProject File.

WAPT1February 1986

- 91 -

ANNEX 4Attachment 1

THE GAMBIA

SECOND HIGHWAY MAINTENANCE PROJECT

Assumotions Regarding Allocation ofProject Costs among Various Components

1. Annex 3-9, Attachment 3 provides project costs (in February 1986 prices).Costs for economic analysis include base costs and physical ccotihg~cnces, butexclude price contingencies. Allocation of economic costs among various projectcomponents has been made on the following basis:

Cost Item as Given in Cost Table Allocation

a) Equipment and Vehicles 30% to Periodic Maintenance(Excluding UNSO and MED share) of Paved Roads

7OZ to Periodic Maintenanceof Gravel Roads

b) Spare Parts (MED) 100% to Institutional Buildingc) Equipment and Vehicles 100% to Routine Maintenance(UNSO Share) of Gravel Roads

d) Periodic Maintenance; Paved Roads 100% for same Componente) Periodic Maintenance; Gravel Roads if t

f) Routine Maintenance; Paved Roads "g) Routine Maintenance; Gravel Roads toh) Feeder Road Maintenance: - F. A. 100% to Routine Maint. of G-avel Rds.i) - Contract 100% to Periodic Maintenance of Gravel Rds.J) Experimental Low Cost Paving 100% to Institution Buildingk) Road Maintenance Assistance 50% for Institution Building, and

50% for Distribdtion EquallyAmong: Periodic Maint. of Paved Rds.,Routine Maint. of Faved Rds.,Periodic Maint. of Gravel Rds., andRoutine Maint. of Gravel Rds.

1) Workshop Management Assistance: 100% to Institution Buildingm) Bund Road 100% for same Componentn) South Bank Road "

o) Brumen Bridgep) Institution Strengthening 100% for Same Componentq) Project Preparation Facility 100% for Same Component

2. Annual phasing of expenditure follows phasing of projectexpenditure. Details are given in the Project File.

3. Resulting Cost Allocations among components and over theproject years are given in Attachment 2.

February 1986WAPTI

-92 - AIE! 4

THE ADIA Attachmt 2

SEEED EIlHIAV NAIIEIICE PROECT

Distribution and Yerly Phasing of Projuct Cots

(US$ 000, in 1996 priceu

Total X of TotalProject Cut 1985-86 1996-97 1987-9 1980989 1999-90 1990-91

Paved Roads Naintenance

Routine Naint ance 1623 11 170 346 320 259 269 259Periodic Ihintuance 1412 10 66 541 45 171 155 64

Gravel oads Naintmance

Rutine Naintnuace 1521 11 93 412 354 194 237 230Periodic Nuintenance 2377 17 138 911 969 161 161 137

3u-d Rad ehabilitation 95 7 0 0 770 224 0 0

South Dbak Road lehabilitation 2217 16 0 0 1146 1072 0 0

rmen Bridge Rehabilitation qq7 7 0 0 738 258 0 0

intittion Stregtbning 2434 17 0 1372 607 263 160 32

Project Preparatin Facility 550 4 550 0 0 0 0 0

Total Costs 14125 100 1019 3591 5220 2603 9"1 722(xcluding price contingencies)

Notn:1. Distribution based on assutios in Attachmet 3.2. Costs eclude price contingncin.3. The cuts homn in 1990-91 minly reflect paymnt delays; while prepwring cost strem for

economic analysis (attachmts 6 to 101 1990-91 costs mere added to the 1989-90 costs.

WAPTiFebruary 1986

- 93 -

ANNEX 4Attachment 3

THE GAMBIA

SECOND HIGHWAY MAINTENANCE PROJECT

Vehicle Operating Costs for Different Road Conditions(In February 1986 US Dollar/Km exclusive of Taxes, Duties and Fees)

PAVED ROADS

Cost Element Condition 1 Condition 2 Condition 3 Condition 4 Condition 5C_st Cost Cost Cost Cost

Cars 0.14 0.14 0.15 0.16 0.18Buses 0.45 0.49 0.53 0.61 0.757 Ton Trucks 0.26 0.29 0.31 0.36 0.48

UNPAVED ROADS

Cars 0.14 J.15 0.16 0.17 0.18Buses 0.49 0.53 0.61 0.67 0.737 Ton Trucks 0.29 0.06 0.36 0.42 0.47

Source: MWC, and Consultant's Report, Project File Document No. 124.453.

Note: Road Conditions are defined in Attachment 4.

WAPT1February 1986

- 94 -

Annex 4

Attacbment 4

THE GAMBIA

SECOND HIGHWAY MAINTENANCE PROUECT

Definition of Road Conditions

PAVED ROADS UNPAVED ROADS

CONDITION 1: Recently paved road in excellent condition. Recently constructed or reconstructed gravel

road having excellent transverse proflit and

riding qualities.

CONDmON 2: Paved road which provides good riding comfort and Gravel road, structurally sufficicnt, maymaintains its profile. Nay present slight present small irregularities, such as light

distortions which do not, however, affect surface corrugations or alight wear along the wheeldrainage, tracks, which could be readily corrected with a

light cut by a conventional road grader.

CONDMON 3: Paved road which presents a noticeably distorted Cravel road where surface irregularities

profile. However, these distortions affect less constrain the comfortable travel speed to a

than half of the pavement surface and do not speed below that dictated by the alignment.impose travel speed reduction. Correction would require a heavy grader cut or a

re-gravelling.

CONDITION 4: Paved road whose surface is damaged and presents Gravel road where a significant reduction innumerous incidences of pavement failures: travel speed is required to attain safe and

distortions, ruts, depressions, cracks, etc. comfortable driving conditions. This conditionFailures remain light and only impose a alight would apply to sections where the subgrade Isreduction of travel speed. visible, where the roadway has structurally

failed or where the road is depressed below thesurrounding terrain.

CONDMON 5: Paved road whose surface is heavily deteriorated Gravel road which has failed to the extent that

and presents numerous incidences of major a detour is in operation.pavement failuret distortions, pot holes, cracks,

etc. Failures are severe enough to impose asubstantial reduction of travel speed.

CONDITION 6: Paved road whose surface is completely destroyed. Unimproved earth road. Condition varies withPavement failures are such that vehicles can only nature of terrain and soils.

travel with difficulty and in so doing may incur

tire, suspension or even frame damage.

Source: MWC

WAP

January 1986

- 95 -

ANNEX 4Attachment 5Page 1 of 2

THE GAMBIA

THE SECOND HIGHWAY MAINTENANCE PROJECT

Assumptions in Estimating Project Benefits

General

1. As noted in Annex 4, project benefits have been quantified byestimating, for the duration of the project impact, road maintenancecosts and vehicle operating costs corresponding to the conditions "withthe project" and "without the project". The difference in the total ofthese costs between the two situations indicates benefits attributableto the project investments. Road conditions are defined in Attachment4, and related vehicle operating costs are given in Attachment 3.

Road Maintenance Program (Gravel and Paved Roads)

2. This covers a large part of the network. Average dailytraffic on each road section in 1984 is taken and aggregated for theroad network, to estimate traffic units that would benefit from theroutine and periodic road maintenance program. Based on road conditionsurveys done by consultants, the following general assumptions are maderegarding average road conditions for gravel roads:

Without Project: Roads not regravelled would deteriorategradually from condition 4.2 to 5 and 6;

With Project: Roads will be in condition 2 for four yearsafter project and gradually deteriorate tocoaditions 3 and 4 during the subsequent fouryears.

3. Both vehicle operating costs and road maintenance costs wouldbe higher without the project. The above "average" position may notapply to some marginal cases; it is estimated that for a minimum 15Z ERRfrom regravelling, the road condition should be 4 or worse, and ADTabout 40 vpd in the year of regravelling. Roads which do not meet theminimal ERR would not be regravelled under the project. Only thoseroads which are now in poor condition (condition 4 or 5) and vouldrevert to earth-roads (condition 6) within two to three years will beregravelled (periodic maintenance) and restored to good condition.Estimates for this component were complicated by the low rainfall inrecent years which has limited damage to the roads. However, a returnto more normal rainfall patterns, as happened in 1985, has beenconsidered when designing the maintenance program.

4. The division of benefits between routine and periodic mainte-nance used in the analysis is largely notional, as it is difficult toseparate the impacts of these activities. The life of routine mainte-nance is taken as only one year (for each year's program), and that ofperiodic maintenance (regravelling) taken as 6 years. However, benefits

- 96 -

ANNEX 4Attachment 5Page 2 of 2

beyond 1994 from the maintenance program have been ignored in thecalculations. Project benefits include credit for about 40% salvagevalue of the equipment purchased under the project, in the year afterproject completion; this equipment will be used for future maintenance.

5. An average traffic growth of about 5% was assumed for the roadsystem from 1985 to 1995. One of the sensitivity tests done by consul-tants examined project benefits with only zero traffic growth; resultsshowed an estimated ERR of about 28Z for the maintenance program.

6. A somewhat similar methodology to above is followed for theperiodic maintenance program. Detailed calculations of benefits fromthe gravel and paved road maintenance programs are presented inconsultant's report (Project File Document Nos. 223.799 and 124.153).

Road Rehabilitation Components

7. These cover specific road sections, viz., Yundum-Brikama (10km), Brikama-Kalagi (100 km) and Kalagi to near Soma (40 km) which areon the South Bank Road, and the Bund Road (3.5 km). These roads hadADTs of 1,800 vehicles, 540 vehicles, 480 vehicles and 1,900 vehiclesrespectively in 1984, and a road condition of 3.5-4 or worse. Withoutthe project, the condition would deteriorate to 5 rapidly; with theproject, it will improve to condition 3 for the South Bank Road andcondition 1 for the Bund Road and gradually deteriorate to 4, over aperiod of about 7 and 15 years respectively after project completion.Detailed road condition profiles, traffic levels, road maintenancecosts, and vehicle operating costs for each of these road sections ispresented in Project File Document Nos. 223.799 and 124.153, for both"with project" and "without project" situations. A situation of zerotraffic growth for the South Bank and Bund road rehabilitationcomponents would correspond to about 20% reduction in project benefits,and to corresponding sensitivity results, which show an estimated ERR ofabout 25Z or higher.

Bridge Rehabilitation

8. Regarding rehabilitation of Brumen Bridge, it has beenassumed, based on engineering assessments, that its life beyond 1988 isuncertain. Estimated 1984 traffic across this bridge is about 480 vpd,most of it long distance. Benefit estimates conservatively assume anaverage of 20 km extra distance to be travelled by 75% of thesevehicles, in the event of a major failure of the bridge in 1989. Theweighted average of vehicle operating costs for the traffic compostion,assuming a road condition of 3, is about US$0.2 per vehicle km, andabout US$510,000 per annum for the assumed traffic diversion. Notraffic growth is assumed for benefit calculations in this case.

WAPT1February 1986

- 97 -

ANNEX 4

THE LVDIA Attachment 6

SECOW HIGSYMM N NITEICE PROJECT

ECONOIIC COTS ND NEITS STREAKS (USS 000. JN 1986 PRICES)

;RAVEL ROADS IIAINTENAM-

1966 1987 1988 1969 1990 1 3992 193 14-2005

COSTS 93.0 412.0 354.0 194.0 237.0 230.0 -20.0 - -

ENEFITS - 260.0 496.0 535.0 572.0 286.0 - - -

PERIODIC MIMTEJCE

COSTS 138.0 911.0 869.0 161.0 161.0 137.0 -376.0 - -BNEFITS - - 153.0 240.0 580.0 884.0 960.0 800.0 430.0

TOTAL RVEL ROADS

CsTs 231.0 1323.0 1223.0 355.0 396.0 367.0 -396.0 - -DEJEFITS - 260.0 651.0 775.0 1152.0 1170.0 960.0 800.0 430.0

e N DET FIT

ROUTINE 1NTENMIM -93.0 -152.0 144.0 341.0 335.0 56.0 20.0 - -PERIODIC rINrIIWICE -138.0 -911.0 -716.0 79. 419.0 747.0 1336.0 800.0 430.0TOTAL RVE S -231.0 -1063.0 -572.0 420.0 754.0 803.0 1356.0 800.0 430.0

Internal rate of return for Gravel Roads Maintenance :28%

WAPT1February 1986

*1

- 98 -ANNEX 4

TM 161 Attacbment 7

KcM OU T NAINMWCE MJECT

ECIIC COM M EFITS STREMS (UN 000. IN 1986 PRICES)

PNO R-S MINMTICE

1966 17 I9M1 196 19,0 11 29IM 1993 1"4-2005

OtS 170.0 34.0 32D.0 259.0 269.0 259.0 - -

EITmS - 546.0 543.0 626.0 642.0 320.0 - -

PE83IC NDIINICE

cTSm 46.0 541.0 415.0 271.0 155.0 U4.0 -260.0 - -IIFITB - 140.0 395.0 450.0 465.0 476.0 490.0 330.0 160.0

TOTAL PA0 mS

COT 236.0 37.0 735.0 430.0 424.0 323.0 -160.0 -IFIS - 416.0 923.0 106.0 1207.0 796.0 490.0 330.0 160.0

NET DEJEFff

ITJE MINTEIWICE -270.0 200.0 223.0 359.0 373.0 61.0 - - -PIIC NIINIWIE -660 -401.0 -30.0 279.0 320.0 412.0 650.0 330.0 160.0TOTAL .PAl NM -236.0 -201.0 193.0 639.0 483.0 4n.0 650.0 330.0 160.0

Internal rate of return for Paved Roads Maintenance: 70%

WAPT1

February 1986

- 99 -

ANNEX 4TIE SANIA

Attachment 8

SEOND HOIIA IWNTENANCE PROTC

ECONC CoST D BENIT STRMEAS WUS 000s l 186 PRICES)

TOTAL MINENIC POWN FM PAVED ANMIECAW ROAD

191 198 1988 1989 109mo 199 2 1993 1994- miO4

TOTAL RWL AND P RObDS

COSTS 467.0 2210.0 1958.0 795.0 822.0 690.0 -556.0 -BENEFITS - 946.0 15N7.0 J843.0 2259.0 1966.0 1450.0 1130. 590.0

IET EnIT -6.0 -1264.0 -379.0 1058.0 1437.0 1276.0 2006.0 1130.0 590.0

Interul RatS of Return ot Not Streas

16B7 38.822

_e-M

SENSITIVIT ANAYSIS

WY AS A ZPRESENT OF PRESENT INTw?lRALUE AT OCC COSTS AT OCC RTE OF

TEST CASES 7EST CASE VARATIOS OF 13.50Z OF 13.50Z REMlE

MSE CASE 2822.2 63.1Z 38.8Z-

TEST CASE 1 C7 UP 20Z 1929.3 36.0Z 26.9Z

TEST CASE 2 17 DOIN 20Z 1363.9 30,SZ 24.82

WAPTMFebruary 1986

THE SANDIA

SECOND 1IS4WAY MA1NTENANCE PRftCI

ECONOMIC COST AND DENEfIT STREAMS (US$OO00 IN 1786 PRICES)

SOUTH D-ANI( ROAD REHABILITATION (50 KMN)

1986-1987 1988 1987 1990 17,91 1572, 1993 3994 1995 3796 1997-2004

TOTAL EXPENDITURES AND COSTS

TOTAL PROJECT COSTS - 1146 1072 - - - - -

SAVINGS IN ROAD MAINTENANCE AND VEHIlCLE OPERATING COSTS - - - 706 851 1014 1108 1 375 1590 1019

NET BENEITS - 1146 -1072 706 051 1014 1180 13075 3590 1019

Internal Rates of Return of Net Streams

NE20 34.132

SENSITIVITY ANALYSIS

SCNSITlVITY TESTS

NPV AS A IPRESENT OF PRESENT INTERNALVftLUE AT OCC COSTS AT 0CC RATE OF

TEST CASES TEST CASE VARIATIONS OF 13.501 OF 13.50 RETURN F------ .- ----------------------

BASE CASE 1532,2 107,22341

1EEI CASE I C20 UP 202 1246.2 72.61 20,32 %

TEST CASE 2 020 DOUN 202 939.9 65.7! 27.12

WAPTIFebruary 1986

THE hUlA

SECOND IfiGIEAT MINIENMACE PROJECT

FEcONOI COST ANT, DWEr!! STYEA (U5$ OOO. IN 178 rRICEs)

StuD RMSD REHABILITATION (35 Ml)

1286-198? 1988 1989 1P"0 1991 399 197f3 199 I99 19T6 3197 3IM I9M 200 2001 2002 2003

TOTAL PROJECT COSTS- 770 224 - - -- - - - - --SAVINGS IN ROAD MAINTENANCE AND VEHIICLE OPERATING COSTS - - 200 305 315 325 29? 315 329 343 364 38 M1 297 III 329 332 --

NEt EKrEITs -770 56 305 315 325 297 315 329 343 364 M6 21 297 313 329 332

February 20. 1786 13136

Internal Rates af Return af Not Streamss

NIbo 32.283

SENSITIVITY ANALSIS

SENSITIVITY TESTS

WiV AS A I .PRESENT OF PRtESENT INTERNAL.fVALUE AlOCC COSIS Al~ DUATEW OFTEST EASES TESI CASE VARIATIPNS OF 13.50 OF 1M.50 RETURN

-4- - .--- ----- ---- -----..... ..-.

BASE CASE 696.5 130.31 23

TESI CASE I CIO LIP 202 564.1 71.12 26.5!

TEST CASE 2 830 NUN 20! 424.6 64.2! 25.3!

WAPT IFebruary 1986

- 102 -Annex 4Attachment 11

THE GAMBIA

SECOND HIGHWAY MAINTENANCE PROJECT

Sumiary of ERR Estimates for Different Project Components

Estimated

Project Components Economic Cost % of Total Cost a/ ERR(US$ 000) (0)

A. Road Maintenance Program1. Gravel Roads 3,898 28 282. Paved Roads 3,035 21 70

Sub-Total (A) 6,933 49 39

B. Road and Bridge Rehabilitation1. South Bank Road (150 km) 2.217 16 342. Bund Road (3.5 kas) 995 7 323. Brumen Bridge 997 7 49

Sub-Total (B) 4,209 30 37

Total of A and B 11,142 79 38

a/ Total project costs, excluding price contingencies - US$14,125,000; no benefits werequantified for 21% of these costs, consisting of US$2,433,000 (17%) for institutionalstrengthening, and US$550,000 (4%) PPF advance (the latter being treated as a sunkcost).

WAPT1February 1986

16'

T HE G AM B IA

SECOND HIGHWAY MAINTENANCE PROJECTNATIONAL ROAD NETWORK

Second Highway Moinlenonce Proied: Notionoal Roads: * Airport

Rehobilitotion: Paved 0 Towns

_ Paved Roads -taterite Rivers

Br-dge Earth e Notional Copitol

Periodic Maintenance: Local Roads: 1r.'. rnotionol Boundc

Paved Roads Paved

Gtovel Roads toterite

First Hlghwry Moaitenonce Pro1ei A MWC Division Offices

Periodic Maintenance. Limit of MWC Mointenonce Divisions

Paved Roods , Part

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