AFRICAN DEVELOPMENT BANK GROUP

SENEGAL

REHABILITATION OF THE SENOBA – ZIGUINCHOR - MPACK ROAD

AND OPENING UP OF THE SOUTHERN REGIONS

PICU/RDGW/COSN DEPARTMENTS

June 2018

Translated Document

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TABLE OF CONTENTS

I PROJECT STRATEGIC THRUST AND RATIONALE............................................................. 1 1.1 Project Linkages with National and Regional Strategies and Objectives.................................................. 1 1.2 Main Development Issues ......................................................................................................................... 2 1.3 Rationale for Bank’s Involvement ............................................................................................................ 3 1.4 Donors’ Coordination ............................................................................................................................... 3

II PROJECT DESCRIPTION ........................................................................................................... 4 2.1 Project Objectives and Components ......................................................................................................... 4 2.2 Technical Solution Retained and other Alternatives Explored ................................................................. 4 2.3 Project Type .............................................................................................................................................. 5 2.4 Estimated Project Costs ............................................................................................................................ 5 2.5 Financing Arrangements ........................................................................................................................... 6 2.6 Project Target Area and Beneficiaries ...................................................................................................... 8 2.7 Participatory Process for Project identifications, Design and Implementation ......................................... 9 2.8 Bank Group Experience,Lessons Reflected in the Project Design ............................................................ 9 2.9 Key Performance Indicators .....................................................................................................................10

III PROJECT FEASIBILITY ........................................................................................................... 10 3.1 Economic and Financial Perfromance .....................................................................................................10 3.2 Environmental and Social Impacts ...........................................................................................................11

IV IMPLEMENTATION .................................................................................................................... 15 4.1 Implementation Arrangements .................................................................................................................15 4.2 Monitoring and evaluation .......................................................................................................................17 4.3 Governance ................................................................................................................................................. 4.4 Sustainability ............................................................................................................................................18 4.5 Risk Management ....................................................................................................................................19 4.6 Knowledge Building ................................................................................................................................19

V LEGAL FRAMEWORK ............................................................................................................... 20 5.1 Financing Instrument ...............................................................................................................................20 5.2 Conditions associated with Bank Group intervention ..............................................................................20 5.3 Compliance with Bank Policies ...............................................................................................................22

VI RECOMMENDATION ................................................................................................................. 22

APPENDIX I: SOCIO-ECONOMIC INDICATORS FOR SENEGAL

APPENDIX II: TABLES ON BANK’S PORTFOLIO IN SENEGAL

APPENDIX III: MAIN RELATED PROJECTS FINANCED BY THE BNAK AND OTHER DEVELOPMENT

PARTNERS IN SENEGAL

APPENDIX IV: MAP OF PROJECT AREA

APPENDIX V: SUPPORT FOR REPORT’S KEY ARGUMENTS

LIST OF TABLES

No. TITLE Page

Table II.1 -Project components ............................................................................................................................................................. 4 Table II.2 - Alternative solutions explored and reasons for rejection .................................................................................................... 5 Table II.3- Estimated cost by component for the entire project ............................................................................................................. 6 Table II.4- – Costs by expenditure ctegory for the entire project .......................................................................................................... 6 Table II.5– Source of financing by component for the entire project .................................................................................................... 7 Table III.1- Summary of economic analysis ....................................................................................................................................... 10 Table III.1– Project monitoring and supervision schedule .................................................................................................................. 17

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Currency Equivalents

March -2018

UA1

1UC

= USD1.446

UA1 = EUR 1,184

UA1 = CFA776.515

Fiscal Year 1 January - 31 December

Weights and Measures

1 metric tonne = 2204 lbs.

1 metre (m) = 3.28 feet

1 millimetre (mm) = 0.03937 inches

1 kilometre (km) = 0.621 miles

1 hectare (ha) = 2.471 acres

Acronyms and Abbreviations

AADT : Average Annual Daily Traffic

ADF : African Development Fund

AFD : French Development Agency

AfDB : African Development Bank

AGEROUTE : National Road Works and Management Agency

ANRAC : National Agency for the Recovery of Economic and Social Activities in Casamance

ANSD : National Agency for Statistics and Demography

APU : Agricultural Processing Unit

BPW : Buildings and Public Works

CIB : Consolidated Investment Budget

CSF/BTP : Vocational Training Centre/Building and Public Works

CSP : Country Strategy Paper

DCFE : Cooperation and External Financing Department

DD : Detailed designs

DEEC : Environment and Classified Establishments’ Department

DTR : Road Transport Department

ECOWAS : Economic Community of West African States

EIB : European Investment Bank

EIG : Economic Interest Group

ESMP : Environmental and Social Management Plan

ESP : Emerging Senegal Plan

EU : European Union

FERA : Autonomous Road Maintenance Fund

HDM 4 : Highways Development and Maintenance version 4

ILO : International Labour Organisation

IRI : International Roughness Index

IRR : Internal rate of return

IsDB : Islamic Development Bank

JBCP : Juxtaposed Border Control Post

MCC : Millenium Challenge Corporation

ii

MEFP : Ministry of Economy, Finance and Planning

MIPMI : Ministry of Industry and Small and Medium-Sized Industry

MITTD : Ministry of Infrastructure, Land Transport and Opening Up

NPV : Net Present Value

PAD : Autonomous Port of Dakar

PD : Preliminary designs

PDAI : Project Direct Area of Influence

PEAI : Project Extended Area of Influence

RBCSP : Results-Based Country Strategy Paper

RONET : Road Network Evaluation Tools

RUC : Road User Costs

UA : Unit of Account

UNDB : United Nations Development Business

USD : United States Dollar

Veh/D : Vehicles per day

VOC : Vehicle Operating Cost

WAEMU : West African Economic and Monetary Union

iii

PROJECT INFORMATION SHEET

Client information

Donee/Borrower : Senegal

Project Name : Rehabilitation of the Sénoba-Ziguinchor-Mpack road

and opening up of the Southern Regions

Location : Regions of Ziguinchor and Sédhiou

Executing Agencies : Ministry of Infrastructure, Land Transport and Road Access

(MITTD)/Road Works and Management Agency

(AGEROUTE)

Financing Plan

Source Amount in

million UA

Amount in

million CFAF

Amount in

million US$

Amount in

million Euros Instrument %

AfDB LOAN 71.80 55 756.37 103.83 85.00 Project loan 49.85%

EU GRANT 21.12 16 398.92 30.54 25.00 Grant 14.66%

EIB LOAN 50.68 39 357.42 73.29 60.00 Project loan 35.19%

Gov. of SENEGAL 0.43 333.23 0.62 0.51 CIB 0.30%

TOTAL 144.04 111 845.93 208.28 170.51 100.00%

ADB’s Key Financing Information

Loan currency : EUROS (EUR)

Loan type: Fully flexible loan

Tenor: To be determined (not exceeding 25 years including the grace period)

Grace period To be determined (not exceeding 8 years)

Loan average maturity**: To be determined (depending on the depreciation profile

Repayments: To be determined (semi-annual payments after the grace period)

Interest rate: Base rate + Funding margin +Lending spread + Maturity premium

Base rate : Floating rate (6-month EURO EURIBOR to be reset on the applicable reset date). A

free-fixing option is offered to fix the base rate

Funding margin : Bank’s funding margin resets on 1 January and 1 July and applied on 1 February and

1 August with the base rate

Lending spread : 80 basis points (0.8%)

Maturity premium:

To be determined as follows: (i) 0% if the average weighted maturity <= 12.75

years; (ii) 0.10% if average weighted maturity<=15 years ; and (iii) 0.20% if

average weighted maturity >15 years

Front-end fee : 0.25% of the loan amount to be paid no later than on the loan signature date

Commitment fee : 0.25% per year on the undisbursed amount. It starts to accrue 60 days after loan

signature and is payable on interest payment dates

Base rate conversion option *:

In addition to the free-fixing option for fixing the base rate, the Borrower is now

offered the possibility of returning to the floating rate or re-fixing all or part of the

disbursed amount of its loan.

Transaction fees are payable

Interest rate cap or collar

option * :

The Borrower is offered the possibility of establishing base rate caps or collars for

all or part of the disbursed amount of its loan

Transaction fees are payable

Lending currency conversion

option *:

The Borrower is offered the possibility of converting the lending currency for all or

part of its disbursed or undisbursed loan into another Bank-approved lending

currency.

Transaction fees are payable

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* The conversion options and transaction fees are governed by the Bank’s Guidelines for Loan Terms available

which can be accessed through the following link: http://www.afdb.org/fr/documents/document/guidelines-for-

conversion-of-loan-terms-july-2014-87643/

FRR ; NPV (baseline scenario) : Not applicable

ERR ; NPV (baseline scenario) : 28.70%; 125.51 billion CFAF

Timeframe – Main Milestones (expected)

Activities (month, year)

Concept note approval March-2018

Project approval June-2018

Effectiveness Sept-2018

Completion of activities Dec.-2021

Last disbursement Dec.-2022

Last repayment- AfDB Loan July-2038

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PROJECT SUMMARY

Project Overview

1. In June 2016, the Government of Senegal requested a contribution from the Bank to the

financing of the Project to rehabilitate the Gambian border--Sénoba-Ziguinchor–Mpack–Guinean

Guinea Bissau Border section of National Road 4 which forms part of the Dakar-Lagos Trans-African

Highway 7 corridor. Implementation of this integrated project will, through its access dimensions and

support to the activities of the most vulnerable segments of the population will contribute to the revival

of tourism in Casamance, the reduction of agricultural and fruit production losses and to the

strengthening of trade and sub-regional integration. The expected outcomes are the growth of transit

traffic and trading, country-wide reduction of transport costs, the reduction of customs control points

and time spent for controls on the Dakar - Bissau road corridor as well as improved accessibility and

conditions for the conduct of socio-economic activities in the project area of influence, especially those

of the most vulnerable groups (women and youth).

2. The project will comprise: (i) the rehabilitation of 165 km of roads in compliance with

ECOWAS standards; (ii) the improvement and asphalting of 100km of access roads. There are also

plans to carry out related improvement works comprising socio-economic and commercial

infrastructure, urban roads and support to women’s and youth groupings, in particular to increase

agricultural output. The project will also will also help to build the executing agency’s capacities and to

improve the availability of statistical data on transport facilitation indicators.

3. The Sénoba-Ziguinchor road section as well as the project roads and rural access roads are

located in the Ziguinchor and Sédhiou regions, mainly in the Departments of Bounkiling, Bignona and

Ziguinchor. These three Departments comprise the Project Direct Area of Influence (PDAI). However,

since the Sénoba-Ziguinchor road section forms part of the Dakar-Lagos Trans-African Highway 7, its

Extended Area of Influence (PEAI) mainly covers other regions of The Gambia, Guinea Bissau and

Guinea. The PEAI covers an area of 9277.38 km2, i.e. 4.72% of the country’s surface area with, a

population estimated in 2016 at 666,551 people, i.e. almost 4.50% of the country’s population. The

proportion of women in the PDAI is 48.79%. The project’s direct beneficiaries are transport users as

well as people living in the PDAI who were consulted and sensitised for the project design on the basis

of a participatory process that will be maintained until the project has been implemented. The project

will be implemented over a 4-year period at a total cost, excluding taxes and duties, including physical

and financial contingencies of UA 144.04 million, equivalent to EUR 170.51 million. The Bank’s

contribution is UA 71.80 million, i.e. equivalent to EUR 80 million. The rest of the financing will be

jointly provided by the EU to the tune of UA 21.12 million i.e. EUR 25.00 million, and at the same

time the EIB, to the tune of UA 50.68 million, i.e., EUR 60 million and the Government of Senegal

(UA 0.43 million, i.e. EUR 0.51 million).

Needs Assessment

4. Senegal’s southern regions, especially those of Sédhiou and Ziguinchor are among the

country’s main areas of fragility. The Casamance conflict which lasted for years in those regions caused

the destruction of part of the socio-economic infrastructure resulting in inadequate tapping of its strong

economic potential. The economic recovery programmes for these regions established since 2003 did

not achieve the expected results. These regions also have a high incidence of poverty exceeding 60%.

The internal and external isolation of these regions is one of the main causes. In addition, these regions

are part of the border areas. Trade between these two regions and the country’s other regions and also

with neighbouring countries (mainly The Gambia, Guinea Bissau and Guinea) have been affected by

this situation. Implementation of this project will bring these regions closer to the country’s key

consumption and processing centres for its products and more effectively exploit this potential and trade

with neighbouring countries.

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5. The project is also justified by its alignment with the Bank’s Hi-5 priorities by helping to

address the challenges of regional integration, reducing agricultural and fruit production losses by

improving the conditions for processing this production, improving the population’s living conditions,

addressing youth unemployment, inequalities and gender issues. Finally, the project is justified by its

alignment with the Bank’s 2014 – 2019 strategy for addressing fragility and building resilience in

Africa. Indeed, the sources of fragility in Casamance include its geographical isolation which worsens

the local populations’ feeling of exclusion, the infrastructure gap, the porousness of its borders and its

regional involvement.

Bank’s Added Value

6. In the sub-region, the Bank is considered to be a strategic partner in the transport sector due to

its different previous and current operations. In addition to its national projects, the Bank plays a key

role in financing transport sector projects in Senegal and improving service levels in West Africa’s

corridors, especially the Nouakchott-Dakar-Banjul-Bissau-Conakry-Abidjan-Lagos corridor

(construction of the Rosso bridge over the Senegal River, on the rehabilitation of the Dinguiraye – Nioro

- Keur Ayib road in Senegal, construction of the bridge over the Gambia River and improvement of the

Lola - Danané between Guinea and Côte d’Ivoire). The Bank’s experience has facilitated the effective

mobilisation for this project of EU co-financing in the form of a grant of 25 million Euros. By

intervening in this project, the Bank will strengthen its leadership role for the development of regional

infrastructure in the Continent. Apart from the road works on the corridor financed with the other

donors, the Bank has taken into account in its financing the other improvements as well as issues

pertaining to transport facilitation, axle load control and road safety.

Knowledge Management

7. The project will provide the Bank with a good opportunity to build its knowledge on the impact

of transport infrastructure projects, on access to production areas, strengthening industrial strategies by

bringing production areas closer to the consumption and processing areas for such production as well

as the development of trade and sub-regional integration. In order to learn effective lessons from this

project, a monitoring and evaluation mechanism will be established by the executing agency which will

include, in particular, monitoring of the project’s impact on the creation of direct and indirect jobs. The

establishment of key impact indicators prior to project commencement and impact assessment on project

completion will help produce useful information on the project outcomes. The project will support the

preparation of the regional social accountability matrix which will help to assess the expected impacts

of infrastructure investment in the project area. The lessons to be learned and experience and knowledge

gained from the implementation of this project will be managed from a database at the executing agency

and disseminated in annual reports and through the Bank’s website. This database will effectively

facilitate management of all the knowledge built during the project’s implementation.

vii

Programme Results-Based Logical Framework Country and Project Name: Senegal – Project to Rehabilitate the Sénoba-Ziguinchor-Mpack Road and Open up the Southern Regions

Project Goal: Contribute to reducing internal and external isolation and strengthening regional integration

RESULTS CHAIN

PERFORMANCE INDICATORS MEANS OF

VERIFICAT

ION

RISKS/

MITIGATION MEASURES Indicators

(including CSI) Baseline situation Target

IMP

AC

T

Contribute to an

increase in sub-

regional trade and to

poverty reduction

(i) traffic volume

between Senegal

and Guinea Bissau ;

(ii) poverty rate in

the PDIA

In2016 : (i) 810,111

tonnes of goods ; (ii)

Sédhiou 68.3% and

Ziguinchor 66.8%

From 2025 : (i) 1,569,331 tonnes of goods ; (ii)

Sédhiou 58% and Ziguinchor 56%

Source :

ANDS

statistics

Impact risks

Failure to control the security situations and weaknesses in the implementation of industrial

strategies and policies

Mitigation measures

Country’s industrial policies and strategies are implemented and the security situation in Senegal

continues to improve

OU

TC

OM

ES

Outcome 1 : The

level of service is

improved on the

Sénoba-Ziguinchor

road

(i) Generalized

transport costs (VOC

and time) between

Sénoba, Ziguinchor

and Mpack; (ii)Average Annual

Daily Traffic

(AADT) trend ; and

(iii) number of

control points on the

corridor; and (iv)

average time for

assistance provision to victims of road

accidents

In 2017 : (i) Average user

cost on project roads of

CFAF 364/km for light

vehicles and CFAF 975

/km for heavy duty vehicles; travel time of 2.5

h for LV and 3.75 h for

HDV (ii) Average daily

traffic of 438 vehicles, 12%

of which are HDV; (iii) 13

checkpoints and; (iv) 4

hours

From 2022: (i) Average user cost on project roads is

CFAF 210/km for light vehicles and CFAF for heavy

duty vehicles ; travel time of 1.5 hours for LV and

2.15 hours for HDV ; and (ii) average daily traffic of 750 vehicles, 18% of which are HDV ; (iii) 3

checkpoints; and (iv) 45 mn

Sources :

AGEROUTE

and OPA

statistics

Outcome Risks :

(i) The sustainability of investments is not guaranteed because of the (a) failure to secure adequate

resources for road maintenance; and the failure to fully apply Rule 14 on the control of axle loads; (ii)

WAEMU decisions on limitation of checkpoints and eradication of illegal levies on Inter-State

corridors are not enforced; and (iii) the autonomous body responsible for road safety has not yet been established.

Mitigation measures:

(i) (a) Maintenance for project roods, streets and tracks is eligible for the Autonomous Road

Maintenance Fund (FERA), but resources are insufficient and, moreover, the proportion of these

resources from the annual government subsidy (CFAF 5 billion per year) is difficult to recover. The

leveraging of resources through loans in the national market is not sustainable in the short to medium

term with the current level of the Road User Tax (RUT.) It is necessary to stabilize the RUT and make

it more autonomous by: (i) transforming it into a levy instead of a tax (road marketing principle); (ii) by including it in the middle section of the hydrocarbon price structure; and (iii) gradually removing

the budgetary allocation in favour of an increase in the RUT. Implementation of these provisions will

be a loan condition; (b) Partial implementation of Regulation 14 (shedding for overloads above 40%)

which has begun at sub-regional level is not yet satisfactory even though it represents progress. Senegal

can take the initiative of considering the possibility of starting the full enforcement of Regulation 14

for loads intended for national consumption from the cement works and the Autonomous Port of Dakar

since, in no way does this jeopardize the competitiveness of these economic actors and identify all the

platforms that generate over 200,000 tonnes of freight annually and ensure that they have axle load scales and dimension checking gauges .Implementation of these measures will be a Bank condition for

the project ; (ii) implementation of the WAEMU Decision on limiting checkpoints is a Bank loan

condition for the project, (iii) establishment of the autonomous safety body is loan condition for the

project.

Outcome 2 : fruit

crop production

losses because of

transportation

difficulties reduced

Percentage of fruit

production lost in

the PDAI

In 2017: (i) 40% of

mango production 20% of

which is due to the lack of

a transportation system

From 2022: losses reduced by 50% Sources :

ANSP

statistics and

Regional

Services

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RESULTS CHAIN

PERFORMANCE INDICATORS MEANS OF

VERIFICAT

ION

RISKS/

MITIGATION MEASURES Indicators

(including CSI) Baseline situation Target

Outcome 3 :

Accessibility as well

as the activities,

conditions and living

environment in the

PDAI are improved

(i) Rural Access

Index (percentage of

the population

within a 2km radius

of a passable road);

(ii) yields of

women’s and youth

groupings ; and (iii) number of jobs

induced in the

project

In2017: (i) 20%; (ii) 60mn

per kg of agricultural

products processed and

(iii) no jobs created by the

project

From 2022: (i) 40%; (ii) 10 mn per kilo of agricultural

products processed; and (iii) 400 jobs created under the

project

AGEROUTE

statistics

OU

TP

UT

S

Output 1:

Rehabilitated and/or

upgraded roads and

improved urban roads.

Length of roads In 2017:(i) 165 km of

paved roads in poor

condition and able to bear

intense heavy traffic; (ii) earth urban roads not

improved; (iii) 72 km de

rural access roads of

crushed stone slightly

improved

In 2022: (i) 165km of paved roads rehabilitated ; (ii)

14 km of earth roads upgraded to paved roads with

public lighting ;and (iii) 52 km of tracks of the

Kalounayes loop, widened, improved and paved; (iv) 100 km of rural roads upgraded

Project

supervision,

status and

impact monitoring

evaluation,

audit and

completion

reports

Output Risks

(i) Increase in the cost of works due to: (a) the fact that the technical solution proposed for the Tobor

road pavement is not a sustainable solution; and (b) lags between the PD and award of contracts; (ii) difficulties relating to the mobilisation and provision of counterpart funds by the country, taking into

account commitments made over the same period; and (iii) the security situation does not allow sufficient

competition of firms during competitive bidding.

Mitigation measures These risks are mitigated by (i) (a)(b) an additional study is being conducted on the 7 kilometres of the

Tobor road pavement in order to reach a consensus on the technical solution to be adopted and because the successful bidder will be requested to submit comprehensive implementation studies ;and (c) the use

of APA in order to reduce the lead time between conduct of studies and award of contracts and (ii)

limitation of counterpart funds for components financed by the Bank, to the coverage of compensation

and environmental monitoring costs, i.e. UA 0.42 million ;and (iii) an agreement will be signed between

AGEROUTE and the defence forces for the secondment of teams to ensure the security of the work zone

and related costs will be incorporated in the project cost.

Output 2: Socio-

economic

infrastructure and

equipment

established

Quantity of socio-

economic

infrastructure

In 2017:NA In 2022: (i) 3 motor parks/stations and a parking area

for heavy duty vehicles upgraded or rehabilitated; (ii)

150 APU and or small implements for processing

agricultural, forestry and fishery products, provided to

women’s and youth groups ; (iii) 6 market gardening areas upgraded ; (iv) 7 markets rehabilitated and /or

constructed ; (v) 1500 lm of enclosures constructed;

(vi) 10 class rooms rehabilitated and/or constructed;

(vii) 4 health centres and 4 training centres

rehabilitated, 3 medicalized ambulances delivered and

one trauma unit rehabilitated ; (viii) one equipped

weighing station constructed and; (ix) 10 portable axle scales delivered

Output 3: Training Number of people

trained and hours of

work per day

In 2017: NA In 2022: At least 300 young people trained in road

maintenance, 85,000 pers./days of direct work, of

which 35% for young people and 15% for women, at

least 5,000 temporary jobs created and at least 1,000

people sensitised

Output 4 : Studies

conducted and services provided

Number of reports

validated In 2017: NA In 2022:(i) 1PD report for related infrastructure ; (ii)

3 impact monitoring and evaluation reports; (iii) 3

accounting and financial audit reports; and (iv) 3

technical audit reports and one procurement audit

report ; (v) 8 quarterly status reports and one final

report; (vi) 3 training reports; and (vii) 3 sensitisation

reports

K E Y

A T C I V I T I E S

COMPONENTS

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RESULTS CHAIN

PERFORMANCE INDICATORS MEANS OF

VERIFICAT

ION

RISKS/

MITIGATION MEASURES Indicators

(including CSI) Baseline situation Target

COMPONENTS

Components

A - Rehabilitation and/or improvement of roads and rural

access roads

B – Integrated activities

C – Transport facilitation and road safety

D- Project management

INPUTS IN MILLIONS

Components In MUA In Million

Euros

Source in Million Euros

AfDB

LOAN

EU

GRANT

EIB

LOAN Gov.

A - Rehabilitation and/or improvement of roads and rural access roads 119.69 141.69 64.85 22.36 54.02 0.46

B - Integrated activities 7.86 9.31 9.31 0.00 0.00 0.00

C - Transport facilitation and road safety 1.00 1.18 1.18 0.00 0.00 0.00

D- Project Management 1.12 1.33 1.18 0.15 0.00 0.00

Physical and financial contingencies 14.36 17.00 8.48 2.49 5.98 0.05

Total inputs 144.04 170.51 85.00 25.00 60.00 0.51

x

xi

1

REPORT AND RECOMMENDATIONS OF MANAGEMENT TO THE BOARDS OF

DIRECTORS ON A PROPOSED AFDB LOAN AND AFIF GRANT TO THE REPUBLIC OF

SENEGAL TO FINANCE THE PROJECT TO REHABILITATE THE SENOBA-

ZIGUINCHOR-MPACK ROAD AND OPEN UP THE SOUTHERN REGIONS/

Management submits this report and recommendations on a proposed (i) AfDB Loan of EUR 85.00

million to Senegal; and (ii) a European Union AfIF Grant of EUR 25.00 million to the Republic of

Senegal to finance the project to rehabilitate the Sénoba-Ziguinchor-Mpack road and open up the

southern regions.

I PROJECT STRATEGIC THRUST AND RATIONALE

1.1 Project Linkages with National and Regional Strategies and Objectives

1.1.1 The project road is part of the Dakar-Lagos Trans-Africa Highway (TAH 7) corridor identified

as the backbone for the sub-region’s economic and social development. This corridor is considered to

be one of the top priorities of the Programme for Infrastructure Development in Africa (PIDA) of the

African Union (AU) and the ECOWAS Regional Transport Facilitation Programme under CWTR-

38/99. For several years, several road improvement and upgrading activities in accordance with

ECOWAS standards have been initiated on this corridor and financing is being prepared for

improvement of the missing section (Boké-Québo). Rehabilitation of the road under this project will

upgrade the road in anticipation of a significant increase in expected traffic following the commissioning

of the bridge over the Gambia River planned for 2019.

1.1.2 The project, which is consistent with the Emerging Senegal Plan (PSE) is the new reference

framework for economic and social policy over the medium-to-long term and, therefore, for the

operations of Senegal’s Technical and Financial Partners. It comprises three thrusts: (i) structural

transformation of the economy and growth; (ii) human capital, social protection and sustainable

development; and (iii) governance, institutions, peace and security. This project is included in the PSE

Priority Action Plan (2014-2018 PAP) and constitutes a key element thereof given its importance in

support to agricultural and fruit production activities and improvement of the population’s living

conditions.

1.1.3 In general, the project is in keeping with: (i) the Bank’s Development Strategy for the 2013 to

2022 period designed to improve Africa’s growth through infrastructure development, among others;

(ii) the ‘Integrate Africa’, ‘Improve the quality of life of the people of Africa’, ‘Feed Africa’ priorities

of the Bank’s Hi-5s, one of whose objectives is to remove barriers in order to take advantage of the

benefits of a large African market; (iii) Pillar 1 of the Regional Integration Strategy and Policy (RISP):

support to the development of regional infrastructure; and (iv) actions planned under the Programme

for Infrastructure Development in Africa (PIDA). Moreover, by easing access to the Southern regions

of Senegal considered to be the country’s breadbasket, the project will contribute to implementation of

the Government’s strategy (bolstering the processing of agricultural resources) by significantly reducing

the transport costs of these resources. In this respect, the project is in line with the Bank’s priorities

aimed at (i) helping to double Africa’s industrial GDP by 2025 and (ii) including employment as a

crosscutting objective of its sector interventions (Pillar 1 of the 2016-2020 Jobs for Youth in Africa)

strategy. Finally, the project is justified by its alignment with the Bank 2014-2019 Strategy for

Addressing Fragility and Building Resilience in Africa. Indeed, the drivers of fragility in Casamance

include its geographical isolation which worsens the local communities’ feeling of exclusion, the

infrastructure gap, and more specifically, the porousness of its borders and its regional involvement.

1.1.4 More specifically, the project builds on Pillar 2 of the Bank’s Country Strategy Paper (CSP)

for Senegal covering the 2016-2020 period. This CSP is focused on 2 Pillars: (i) Pillar 1: Support to

agricultural transformation; and (ii) Pillar 2: Strengthening of production and competitiveness

support infrastructure (energy and transport). The main objective of Pillar 2 is to meet the population’s

demand in terms of accessibility and mobility as well as of businesses in order to improve access to

2

transport services with a view to strengthening their competitiveness. This project is in keeping with the

CSP’s Indicative Lending Programme.

1.2 Main Development Issues

1.2.1 The southern regions of Senegal, in particular, the regions of Sédhiou and Ziguinchor are

among the country’s main areas of fragility despite their economic potential. Indeed, the conflict in

Casamance, which has lasted for over three (3) decades has caused the destruction of the region’s social

and economic infrastructure resulting in weak development of its socio-economic potential and a high

poverty rate (exceeding 60%). In May 2003, the Government of Senegal designed the Programme for

the Revival of Economic and Social Activities in Casamance (PRAESC). This programme received

support from several donors including the Bank, through the Casamance Rural Development Support

Project (PADERCA). PRAESC’s implementation did not achieve the expected results. In addition,

trade between these two regions and the country’s other regions was affected by this situation. The

internal and external isolation of these regions is one of the main obstacles.

1.2.2 Agricultural development is the main focus of the Emerging Senegal Plan (PSE) through the

Programme to Accelerate the Pace of Senegalese Agriculture (PRACAS). Casamance produces almost

everything but processes nothing. In the region there is no industrial unit worthy of the name that could

support the unemployment reduction strategy. Throughout Senegal, the level of agricultural product

processing (13.2%) remains very low which is why, every year, at least 30% of harvest is lost. In order

to reverse this trend, the Government has initiated the Programme for Integrated Agri-hubs, the first of

which should be established in Casamance in 2018. The construction of access roads under this

project should contribute to the achievement of the set objectives in this area.

1.2.3 In this context, the main drivers of fragility identified in Casamance may be summarised as

follows: (i) geographical isolation which worsens the local communities’ feelings of exclusion, (ii) the

infrastructure gap, (iii) illegal trafficking of cocaine, timber and fire-arms (iv) porousness of the

country’s borders and its regional involvement, and (v) the complexity of its natural resource

management policy.

1.2.4 Other social and demographic –related factors also play a fragility accelerator role and should

be taken into account under this project, namely (i) the different forms of gender-based violence, (ii)

land conflicts linked to the resettlement of people displaced by the conflict (iii) the youth job creation

gap and clandestine immigration, which represent a real threat to stability and are jeopardizing the

region’s peace process and economic development. The main challenge to be addressed in Casamance

is to build institutional, economic and social resilience, while reducing gender disparities, and supporting

the accelerated decentralization process, with the establishment of key infrastructure to ensure lasting and

definitive peace. The region has a wide infrastructure gap which greatly impedes the sustained and inclusive

growth of Casamance’s economy, on the one hand, and regional integration, on the other. Rural-urban

migration towards the city of Ziguinchor, in which 81% of the citizenry are concentrated, and whose

population doubled between 1976 and 2014, was not supported by corresponding investments. There

were no infrastructure investments or access to basic services, thereby limiting any development

initiatives in both urban and rural areas, and slowing down the supply of goods and services by the

government within the region. In Sédhiou, the combined unemployment and under-employment rate is

33% and at the same time, the proportion of young people either unemployed or without training is

36.8%. These situations of youth vulnerability in terms of employment is a driver of fragility and a

concern for the Senegalese authorities which have made employment a key objective of the Emerging

Senegal Plan.

1.2.5 In order to reach Dakar, the main area of product consumption and industrial processing, it is

necessary to travel 875 km via Tambacounda or 450 km through The Gambia. The Government of

Senegal has prioritized the opening up of these regions. Thus: (i) the improvement, asphalting and

rehabilitation works on the Tambacounda-Kolda-Ziguinchor road were recently completed; (ii) the

rehabilitation works on the Kaolack-Dinguiraye-Nioro road on ADF financing were recently completed;

3

(iii) the construction work on the bridge over the Gambia River on ADF financing is expected to be

completed by June 2019; and (iv) the Dakar-Ziguinchor sea link has been improved with the

commissioning of two new ships (Aguène and Diambone). Rehabilitation of the Sénoba-Ziguinchor-

Mpack road should complete the external opening up of these two regions and the related roads and

rural access roads the internal opening up.

1.2.6 The road which is the subject of this project, forms part of the Dakar-Bissau-Abidjan-Lagos

Trans-African 7 road corridor identified as the sub-region’s economic and social development

backbone. This corridor is considered to be the top priority of the Programme for Infrastructure

Development in Africa (PIDA) of the African Union (AU) and ECOWAS’s Regional Transport

Facilitation Programme. Its implementation is expected to boost intra-regional trade, especially between

Senegal and the neighbouring countries, in particular The Gambia, Guinea Bissau and Guinea.

1.3 Rationale for Bank’s Involvement

1.3.1 In the sub-region, the Bank is considered to be a strategic partner in the transport sub-sector as

a result of its different previous and current interventions. The Bank plays a major role in financing

corridor development projects in West Africa (10 regional projects since the 2000s) thereby helping to

narrow the infrastructure gap. It plays a key role in financing transport projects in Senegal and in

improving service levels on the Nouakchott-Dakar-Banjul-Bissau-Conakry-Abidjan-Lagos corridor

(construction of the Rosso Bridge over the Senegal River, rehabilitation of the Dinguiraye-Nioro-Keur-

Ayib road in Senegal, construction of the bridge over the Gambia River, improvement of the Lola-

Danané road between Guinea and Côte d’Ivoire). The Bank’s experience has facilitated the effective

mobilisation of EU co-financing of EUR 25 million for this project. By intervening in this project, the

Bank has strengthened its leadership role for regional infrastructure development on the Continent. This

project will also strengthen the Bank’s agricultural development interventions and future interventions

such as the establishment of agricultural transformation areas in order to achieve the objectives set by

the Government in terms of North, South and Centre agri-hubs.

1.4 Donor Coordination

1.4.1 The main active donors in Senegal’s transport sector are the World Bank, European Union,

Millennium Challenge Corporation (MCC), French Development Agency (AFD), BADEA, Islamic

Development Bank (IsDB), WADB and bilateral donors. Regular coordination/consultation on the

sector is carried out between the Bank and these TFPs. Through its country office (COSN), the Bank

is an active member of the Extended Group of Technical and Financial Partners (or Group of 50) and

of several thematic groups. In particular, since 2011, the Bank is the Vice-chair of four thematic groups.

In Senegal, there is no formal thematic group on transport but periodic meetings and exchanges take

place between the TFPs involved in the sector. For this project, it was agreed with the potential donors

(EU and EIB) to regularly exchange information on the sector and to carry out joint missions as part of

its preparation and the monitoring of its implementation.

1.4.2 During the project’s implementation, this coordination will continue with (i) the participation

of experts from Headquarters and the Bank’s representation in the country in working meetings of TFPs

operating in the sector (ii) the different joint supervision missions and (iii) the involvement of

stakeholders in the approval of reports produced on the different studies planned.

4

II PROJECT DESCRIPTION

2.1 Project Objectives and Components

2.1.1 The project’s strategic objective is to help strengthen sub-regional integration and trade and

reduce food production losses in the primary sector as a consequence of the opening up of Senegal’s

southern regions.

2.1.2 More specifically, the project will help to: (i) improve the service level on the Sénoba-

Ziguinchor-Mpack- Guinea Bissau border road by reducing general transport costs, customs

checkpoints and the time taken to provide care for victims of road accidents; (ii) build agricultural

product processing capacity; and (iii) improve access and living conditions in the Project Direct Area

of Influence (PDAI). In order to achieve these objectives, the project is focused on activities broken

down into four components summarised in the following Table.

Table II.1

Project components

Component name Cost in

MUA Description

A - Rehabilitation

and/or improvement of

roads and rural feeder

roads

132.95

(i) Rehabilitation of 165 km of road between Sénoba and Mpack in asphalt concrete

including 13km of roads surfaced with paving stones in Bounkiling, Bignona and

Ziguinchor and a parking area for heavy duty vehicles in Ziguinchor, green areas and

support to ensure security of the area during works implementation; (ii) improvement

and asphalting of 52 km of the Kalounayes loop including 1 km of urban roads surfaced

with paving stones in Coubanao; (iii) improvement of 100 km of rural feeder roads;

(iv) works control and supervision; (v) sensitisation on HIV/AIDS, nutrition, social

mobilisation, environmental protection and road safety; (vi) planting of 33,000 trees;

(vii) construction of a weighing station; (ix) inclusion in contracts and agreements of

the employment of young engineers or technicians on internships; and (viii) clearing

of rights-of-way and monitoring of ESMP implementation.

B – Integrated activities 8.73

(i) Improvement and/or rehabilitation of social and commercial infrastructure (10 class

rooms including school canteens, 4 health centres and 4 training centres, 7 markets, 4

motor parks, 1 parking area for heavy duty vehicles, 6 market gardening areas, 1500

lm of enclosures; (ii) support to youth and women’s associations with the supply of

150 APUs and/or small tools for processing agricultural, forestry and fishery products;

(iii) support to improve youth employability through youth work training programmes

and rehabilitation/equipping of an agricultural or BPW training centre; (iv) control and

supervision of integrated works including support for the introduction of integrated

activities; (v) detailed designs and BDs for integrated activities and (vi) a study on the

comprehensive assessment of the drivers of fragility and opportunities for resilience

in the southern regions.

C – Transport

facilitation and road

safety 1.11

(i) Support for the Observatory on Abnormal Practices (OPA); (ii) road safety support

by providing resources for the rapid treatment of victims of road accidents 3

medicalized ambulances and a rehabilitated trauma centre; (iii) support for axle-load

control through the purchase of 10 portable axle scales.

D- Project management 125

(i) Monitoring and evaluation of socio-economic impacts and project facilitation; (ii)

technical and road safety audit; (iii) accounting and financial audit; (iv) procurement

audit; (v) communication; and (vi) operation of executing agency.

2.2 Technical Solution Retained and Other Alternatives Explored

2.2.1 The Sénoba – Ziguinchor – Mpack road section is a paved road with a pavement width of

between 6 and 7 m and 1.5 metre wide shoulders. The existing pavement has never over time been the

subject of major strengthening or recharging works. The technical solution retained for the road’s

rehabilitation is the widening of the platform at certain points to bring it into line with certain ECOWAS

standards (10.2 m platform width, 7.20 m pavement width, 2 x 1.5 width of shoulders and 80 km/hour

reference speed). The pavement structure will comprise a foundation layer obtained by scarification of

5

the existing pavement and possibly adding laterite for upgrading and compacting to OPM standard, a

23-cm thick base layer of cement-treated laterite, an 8-cm thick bond coating of crushed stone across

the entire width and a 5-cm thick wearing course in 0/14 asphalt concrete (AC). For the 7 km located in

the Tobor marshland, the structure comprises a 2-layer backfill of 25 cm of untreated natural gravel, 10

cm of interlocking pavers for the coating, but this solution could be improved because of the expertise

of the contractor retained to carry out the works. It is worth noting that the 105 hydraulic structures and

the canal in Ziguinchor identified on the Sénoba-Ziguinchor-Mpack section are in fairly good condition

and will be retained. Extensions to the heads of some structures could become necessary in areas where road

widening is being carried out.

2.2.2 The alternative technical solution and the reasons for its rejection are summarised in Table 2.2

below.

Table II.2

Alternative solution explored and reasons for rejection Alternative

solution Brief description Reason for rejection

A pavement

structure

without paved

stone.

In addition to the characteristics

of the platform and the

foundations which are similar to

the solution retained, the

structure of the alternative

solution comprises a 25-cm thick

base course of cement-treated

laterite and a 6-cm thick wearing

course of 0/14 asphalt concrete

(AC).

The pavement body is considered to be less durable than that of the

solution retained. First signs of degradation (cracking of the

improved cement laterite gravel layer) appears only 4 years after

works completion. If in addition, measures are not taken to enforce

axle load controls such degradation could accelerate more rapidly.

This solution is not consistent with the preventive road maintenance

strategy developed by the project owner on the main roads of the

classified network (no refill before 7 to 8 years on a new road or a

fully rehabilitated road).

2.2.3 The diversity of the planned activities reflects the integrated nature of this road project. Indeed,

in addition to the roadworks, related improvements are planned in order to strengthen its socio-economic

impacts. These improvements concern the following sectors: agriculture, water, gender, social

protection and vulnerability, basic health and education and vocational training, as well as support to

youth employability. Special emphasis has been placed on support to actions in favour of women.

2.3 Project Type

2.3.1 This is a national stand-alone investment operation. Donors’ interventions in transport

infrastructure in Senegal are usually made through this type of investment (investment project. The

funds allocated to the project will be disbursed for clearly defined and specific investments. Thus the

project has adopted the most suitable approach for the Bank’s intervention in this project.

2.4 Estimated Project Costs

2.4.1 The total project cost excluding taxes and custom duties, including physical and financial

contingencies, is estimated at 144.04 million Units of Account (MUA), equivalent to EUR 170.51

million at an exchange rate of UA1 = 𝐸𝑈𝑅1.184. Provisions for physical contingencies represent 9.00%

of the base cost while the provision for financial contingencies equals 0.98% of the base cost and the

provision for physical contingencies.

6

Table II.3

Estimated costs by component of the entire project

COMPONENTS

Million CFAF Million UA Million Euros

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

A - Rehabilitation and/or

improvement of roads and rural

feeder roads

74 112.37 18 828.09 92 940.46 95.44 24.25 119.69 112.98 28.70 141.69

B – Integrated activities 4 883.74 1 220.93 6 104.67 6.29 1.57 7.86 7.45 1.86 9.31

C –Transport facilitation and

road safety 620.00 155.00 775.00 0.80 0.20 1.00 0.95 0.24 1.18

D- Project management 268.00 604.92 872.92 0.35 0.78 1.12 0.41 0.92 1.33

Base cost 79 884.11 20 808.95 100 693.05 102.88 26.80 129.67 121.78 31.72 153.51

Physical contingencies 7 988.41 2 080.89 10 069.31 10.29 2.68 12.97 12.18 3.17 15.35

Price escalation 859.65 223.93 1 083.58 1.11 0.29 1.40 1.31 0.34 1.65

TOTAL COST 88 732.16 23 113.77 111 845.93 114.27 29.77 144.04 135.27 35.24 170.51

Table II.4

Costs by Expenditure Category of the Entire Project

EXPENDITURE CATEGORIES Million UA Million Euros

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

A –Works 96.80 24.20 121.00 114.59 28.65 143.23 84.00%

B – Services 5.95 1.75 7.70 7.05 2.07 9.12 5.35%

C – Other 0.12 0.85 0.97 0.15 1.01 1.15 0.68%

BASE COST 102.88 26.80 129.67 121.78 31.72 153.51 90.03%

Physical Contingencies 10.29 2.68 12.97 12.18 3.17 15.35 9.00%

Financial Contingencies 1.11 0.29 1.40 1.31 0.34 1.65 0.97%

TOTAL COST 114.27 29.77 144.04 135.27 35.24 170.51 100.00%

2.5 Financing Arrangements

2.5.1 Following the joint project appraisal mission and working sessions between donors, it emerged

that, in view of the conditions of eligibility for AfDB financing and the possibility for AfDB to use the

national procurement system, parallel financing with EIB was retained. The road works including rural

access roads and urban roads were broken down into 4 lots: (i) lot 1: Sénoba-PK40 and lot 2: PK 40-

PK80 on AfDB and EU financing; (ii) lot 3: PK80-Ziguinchor-Mpack on EIB financing; and (iii) lot 4

concerning the 52 km of the Kalounayes loop on AfDB financing. Works control and supervision will

be broken down into three lots: (i) lot 1, financed by AfDB and EU for the supervision of works under

lots 1 and 2; (ii) lot 2 financed by EIB for the supervision of lot 3 works; and (iii) lot 3 financed by

AfDB for the supervision of the works on the Kalounayes loop. In order to take into consideration EIB’s

concerns a provision will be included in the contract of the lots control mission for the NR4 works to

be financed by AfDB requiring the contracting party to directly respond to all requests from the EIB.

2.5.2 The project will be jointly financed by the Bank (AfDB Loan), the EU through a grant from

the resources of the African Investment Facility (AfIF), the Government of Senegal, and at the same

time with the European Investment Bank (EIB). The Bank’s contribution is UA 71.80 million, i.e. EUR

85.00 million. The EU contribution is UA 21.12 million, i.e. EUR 25.00 million and the EIB

contribution is UA 50.66 million, i.e. EUR 60.00 million. The Senegalese counterpart is UA 0.43

million, i.e. EUR 0.5 million. The ADB window’s contribution is below 50% of the project cost.

The submission of the EIB financing agreement to the Bank will be required as an undertaking by the

Republic of Senegal.

2.5.3 Tables 2.5 and 2.6 below set out the detailed costs by source of financing and provide a

summary of the financing plan.

7

Table II.5

Source of financing for the entire project

SOURCES Million CFAF Million UA Million Euros

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

AfDB LOAN 44 159.08 11 597.28 55 756.37 56.87 14.94 71.80 67.32 17.68 85.00 49.85%

EU 13 087.15 3 311.77 16 398.92 16.85 4.26 21.12 19.95 5.05 25.00 14.66%

EIB 31 485.94 7 871.48 39 357.42 40.55 10.14 50.68 48.00 12.00 60.00 35.19%

GOV. 0.00 333.23 333.23 0.00 0.43 0.43 0.00 0.51 0.51 0.30%

Project total 88 732.16 23 113.77 111 845.93 114.27 29.77 144.04 135.27 35.24 170.51 100.00%

Table II.6

Source of financing by component of the Entire Project

Components In MUA In million

Euros

Source in million Euros

AfDB LOAN EU GRANT EIB LOAN Gov

A – Rehabilitation and/or improvement of roads and rural access roads

119.69 141..69 64.85 22.36 54.02 0.46

B – Integrated activities 7.86 9..31 9..31 0.00 0.00 0.00

C – Transport facilitation and road safety 1.00 1..18 1..18 0.00 0.00 0.00

D-Project management 1.12 1..33 1.18 0.15 0.00 0.00

Physical and financial contingencies 14.36 17.00 8.48 2.49 5.98 0.05

Total resources 144.04 170.51 85.00 25.00 60.00 0.51

Table II.7

Expenditure Schedule by Component for the Entire Project (in million UA)

Components 2018 2019 2020 2021 Total

A - Rehabilitation and/or improvement of Roads

and Rural access roads 17.87 .344 53.76 4.61 119.69

B – Integrated activities 0.00 2.41 3.50 1.95 7.86

C – Transport facilitation and road safety 0.17 0.37 043 0.03 1.00

D- Project management 0.22 0,28 0.38 0.24 1.12

Base cost 18.26 46.50 58.07 6.84 129.67

Physical contingencies 1.83 465 5.81 0.68 12.97

Price escalation 0.20 0.50 0.62 0.07 1.40

Total 20.29 51.65 64.50 7.59 144.04

Table II.8

Expenditure schedule by source of financing for the entire project (in million UA)

Source 2018 2019 2020 2021 Total

AfDB LOAN 9.47 27.60 32.02 2.71 71.80

EU GRANT 3.15 8.43 9.48 0.05 21.12

EIB LOAN 7.60 15.45 22.81 4.83 50.68

Gov. of. SENEGAL 0.06 0.17 0.19 0.00 0.43

Project Total 20.29 51.65 64.50 7.59 144.04

Total as % 14.08% 35.86% 44.78% 5.27% 100%

Table II.9

Expenditure schedule by expenditure category for the entire project (in million UA)

Categories 2018 2019 2020 2021 Total

A – Works 19.05 48.19 60.48 6.68 134.40

B – Consulting services 1.09 2.97 3.77 0.72 8.56

C- Other 0.15 0.49 0.25 0.19 1.08

TOTAL 20.29 51.65 64.50 7.59 144.04

8

2.5.4 With regard to the provisions relating to financing of the Africa Investment Facility (AfIF), on

12 July 2017, the Boards approved (Resolution No. B/BD/2017/124 - F/BD/2017/87), the cooperation

framework between the European Commission (EC) and the Bank, called ‘Pillar-assessed grant of

delegation agreement’ (PAGODA)’. In this context, the Bank and European Commission, on 5

December 2017, signed a Delegation Agreement for an amount of EUR 25.600 million relating to the

project (including an amount of EUR 600,000 owed to the Bank in respect of management and

administration costs). This Delegation Agreement defines the activities entrusted to the Bank for project

implementation. It determines the implementation arrangements, sets out the rules governing payment

of the EU contribution and defines the relations between the Bank and EC. The resources thus mobilised

from AfIF will be disbursed and managed by the Bank. The AfIF resources approved on 24 February

2017 are not allocated but some indications are given (see Appendix VI for further details).

Table II.10

AfDB and EU financing by expenditure category AfDB Loan EU Grant

EXPENDITURE

CATEGORIES

Million Euros

F.E. L.C. Total

B –Works 57.62 14.41 72.03

C – Services 2.84 0.96 3.80

D – Other 0.15 0.55 0.70

BASE COST 60.61 15.92 76.52

Physical

contingencies 6.06 1.59 7.65

Financial

contingencies 0.65 0.17 0.82

TOTAL COST 67.32 17.68 85.00

EXPENDITURE

CATEGORIES

Million Euros

F.E. L.C. Total

B –Works 15.81 3.95 19.76

C – Services 2.15 0.59 2.75

D – Other 0.00 0.00 0.00

BASE COST 17.96 4.55 22.51

Physical contingencies 1.80 0.45 2.25

Financial contingencies 0.19 0.05 0.24

TOTAL COST 19.95 5.05 25.00

2.6 Project Target Area and Beneficiaries

2.6.1 The roads targeted under the project are located in the Sédhiou and Ziguinchor regions,

especially the Departments of Bounkiling, Bignona and Ziguinchor. These three Departments constitute

the Project Direct Area of Influence (PDAI). However, since this road section is part of the Dakar-Lagos

Trans-African 7 road corridor, the Project Extended Area of Influence (PEAI) covers the regions of

Dakar, Thies, Kaolack in Senegal, the Gambia and Guinea Bissau. The PDAI covers an area of 9277.38

km2, i.e. 4.72% of the country’s area and, in 2016, had an estimated population of 666,551 people, i.e.

almost 4.50% of the country’s population. The proportion of women in the PDAI is 48.79%. The

proportion of the population living in rural areas represents 57/74%. The structure by age group shows

that, in the PDAI, the proportion of 15-35 year-olds commonly known as ‘youth’ is 67.50%. The

incidence of poverty in the PDAI (67.55%) is above the national average (46.70%). The PDAI’s

economy is mainly agriculture-oriented.

2.6.2 The PDIA has several types of soils suitable for agriculture. Through its wealth in forestry

resources, its agricultural production, its livestock and tourism potential, it is often considered as

Senegal’s breadbasket. Average annual rainfall is around 1,000 mm. Over 4/5 of households practise

agriculture. The dominant crops are groundnuts, millet and rice. Forest exploitation and tree- growing,

in particular, fruit trees, provide an alternative source of income for the populations. In addition, there

are abundant fishery resources (oysters, shrimps and fish) and other agricultural products such as cashew

nuts, the production of which is steadily rising. Industrial–scale cultivation which concerns the plant

species grown in order to supply processing industries with raw materials, including in the agro-food

sector (groundnuts for oil, sesame, hibiscus and cassava) has experienced contrasting performances

(72.6% drop for sesame and 87.2% for cassava and a 41.5% increase for groundnuts). Remoteness is

one of the obstacles to increased production and the competitiveness of industrial processing units.

9

2.7 Participatory Process for Project Identification, Design and Implementation.

2.7.1 The involvement of all stakeholders was a concern at every stage of this project’s appraisal.

Indeed, as part of the studies and preparation of this project, plenary information and consultation

sessions were held throughout the project’s direct area of influence, with the authorities and centralised

and devolved administrative and technical services, road hauliers, business operators and the

populations. Similarly, as part of updating of the ESIA and RAPs, public consultations were held. These

working sessions helped to gather and incorporate in the project design, the main needs and expectations

of the population and key stakeholders. The Bank’s project preparation and appraisal missions held

working sessions with all the stakeholders in the PDAI that were grouped together in Bounkiling, then

Bignona, Coubanao and Ziguinchor. This approach will be continued during this project’s

implementation. To this end, a budget allocation has been made for the conduct and implementation of

consultation activities for the implementation of the ESMP and RAPs.

2.8 Bank Group’s Experience and Lessons Reflected in Project Design

2.8.1 As at 30/04/2018, the Bank’s active public sector portfolio in Senegal included twenty-two

(22) operations, representing total net commitments of UA 54 million. The public sector portfolio

comprised four (4) multinational projects representing a cumulative amount of UA 75.43 million. The

overall disbursement rate for public sector operations is 20.50%. The respective disbursement rates for

national projects are 20.62% and 19.52%, for the multinational operations. The sector distribution of

national projects is presented as follows: transport & ICT 70.31%; water and sanitation 13.31%; rural

sector 11.55%; and social sector 4.05%; and governance 0.78%. For their part, multinational operations

are dominated by the energy sector followed by the transport and ICT sectors, 85.84%. As regards the

Bank’s private sector window in Senegal, total commitments represent about UA 130.32 million and

concern five (5) operations. The private sector window disbursement rate is 96.36%. The performance

of the Bank’s national public sector portfolio in Senegal is considered to be satisfactory: (i) the portfolio

has been greatly rejuvenated in recent years. The average age of operations fell from 5.5 years in 2011

to 3.47 years in 2018; (ii) the portfolio does not contain any problem project (PP) or potentially

problematic project (PPP). The ongoing transport sector portfolio comprises 4 national projects

and 2 multinational projects. For these 6 operations, the conditions precedent to first

disbursement have been fulfilled, commitments total about UA 385.62 million, the average age is

2.66 years and the average disbursement rate is 14.45%.

2.8.2 Project completion and supervision reports for Senegal are regularly prepared and lessons

learned. The main lessons learned from project implementation in the sector are : (i) the need to have

high quality PDs in order to enhance project quality at entry; (ii) the need to adhere to procurement

project implementation and audit preparation dates in order to prevent additional costs and the risk of

suspension of disbursements; and (iii) the failure to carry out impact monitoring and evaluation

activities and monitor them following project completion prevents any assessment of the impact of the

Bank’s operations on the country’s development. Furthermore, in the report prepared by IDEV on the

evaluation of the Bank Group’s Strategies and Programmes in Senegal over the 2004-2013 period, it is

recommended to safeguard and guarantee the autonomy of the resources of the Road Maintenance Fund

(FERA) in order to ensure infrastructure sustainability. These lessons were taken into consideration

under this project by the fact that: (i) PDs were prepared and individual consultants will be recruited to

review them before the programme appraisal mission : (ii) procurement deadlines will be shortened

as the national procurement system will be used for a large part of the activities planned under

this project; (iii) the project includes the cost of impact monitoring and evaluation services;

AGEROUTE has a unit responsible for carrying out continuing monitoring of the project impacts; and

(iv) guaranteeing FERA resources will be loan condition for this project.

10

2.9 Key Performance Indicators

2.9.1 The key performance indicators identified and expected outcomes at project completion which

appear in the results-based logical framework are grouped together as follows (i) trend in volume of

trade between Senegal and Guinea–Bissau and agricultural production losses; (ii) general transport

costs (VOC and time), trend of average annual daily traffic (AADT) on the project road sections,

reduction in the number of checkpoints and time required for customs control and reduction in the time

taken to provide care for victims of road accidents; (iii) the percentage of agricultural output lost as a

result of inaccessibility; (iv) the Rural Access Index, i.e. the percentage of the population within a radius

of 2 km of a passable road; and (v) yield of activities of women’s groupings; and vi) the number of jobs

created. The exact values of different impact indicators retained for this project will be established at

the baseline situation prior to works commencement) and an assessment will be carried out by the

service provider at mid-term and at project completion.

2.9.2 In addition to these outcome and output indicators which appear in the logical framework, there

are also project implementation performance indicators that will be monitored. They were selected on

the basis of the Bank’s corporate performance indicators. These mainly concern: (i) the time required

for effectiveness and fulfilment of the conditions precedent to first disbursement; (ii) procurement

timeframes; (iii) the average project IP indicator; and (iv) the disbursement rate trend on the basis of

the expenditure schedule. These indicators will be monitored during supervision missions and in the

project’s routine management.

III PROJECT FEASIBILITY

3.1 Economic and Financial Performance

3.1.1 The socio-economic study update report covers the Sénoba-Ziguinchor-Mpack road and the

Kalounayes loop. On the Sénoba-Ziguinchor road, according to 2015 traffic count data, the average

annual daily traffic (AADT) varies from 300 veh/d and 568veh/d depending on the sections, i.e. an

average of 438 veh/d.

3.1.2 In order to carry out the economic analysis, the following factors were taken into consideration:

(i) a 20-year analysis period, a residual value of 60% and a traffic growth rate of 4% for passenger traffic

and 5% for freight traffic; and (ii) investments and maintenance costs before and after the project

(periodic maintenance triggered on the basis of the IRI. The value of agricultural losses of 20% of

production in the PAI due to transportation difficulties of movement have been taken into consideration.

The economic analysis was carried out using the HDM model. Brought closer by the surpluses achieved

from vehicle operating cost savings and in passenger and goods travel times, a rate of return (EIRR) of

28.7% was obtained and the sensitivity analysis (+ or – 20% of costs and traffic) gave an EIRR that

varies between 28.7% and 21.6%. These rates are higher than the opportunity cost of capital which is

12%. The project is, therefore, economically viable. The Table below summarises the projects economic

analysis. The detailed analysis is provided in Technical annexes to this report.

Table III.1

Economic analysis summary

Economic parameters analysed Basic

assumptions

Sensitivity analysis

Assumption (-

20% of traffic)

Assumption (+

20% investment

cost.)

Assumption (-20% of

traffic and + 20% of

investment cost.)

Economic rate of return (ERR) 28.70% 24.70% 25.30% 21.60%

Net Present Value (NPV) in billion CFAF 125.51 89.83 112.46 76.77

11

Transport Facilitation

3.1.3 The financing request submitted to the Bank included the construction and equipping of the

juxtaposed border control post (JBCP) at Mpack located on the border with Guinea Bissau. WAEMU

indicated that it had signed a concession contract with a private firm for the construction and

management of the Mpack JBCP (see draft convention in annex). The construction of the JBCP is not

included in the cost of this project. AGEROUTE will contact WAEMU to obtain the JBCP

implementation schedule.

3.1.4 During the field visit it was noted that on the Dakar-Kaolack-Sénoba-Ziguinchor-Mpack

corridor, there were several checkpoints (customs, police, gendarmerie and forestry) and security-

related checkpoints. The activities of the Observatory of Abnormal Practices (OPA) on the corridors

managed by the Road Transport Directorate (DTR) only cover the Dakar-Kaolack section. The project

will provide support for the OPA to include among its activities monitoring of the entire Dakar-Mpack-

Bissau-Québo-Guinea Bissau border corridor to regularly determine the trend of transport facilitation

monitoring indicators.

3.2 Environmental and Social Impacts

Environment

3.2.1 In accordance with the requirements of the Bank’s Integrated Safeguards System (ISS), the

project is classified in category 1 because of its size (over 50 km), and the potential impact on the

sensitive ecosystems along the right-of-way (classified forests and mangroves). A detailed

environmental and social impact assessment has been carried out. The ESIA of the Sénoba-Ziguichor

section culminated in the award of a DEEC certificate of compliance issued on 21 September 2016.

This assessment was attuned to the Bank’s requirements following the preparation mission. The

environmental management measures concerning the Ziguinchor-Mpack section were integrated when

the assessment was updated and the related costs included in the ESMP. Since the asphalting of the

Kalounayes loop section was included in the project following the preparation mission, the ESIA

previously prepared by AGEROUTE was updated and submitted to DEEC. This ESIA received

environmental clearance on 23 February 2018. An abbreviated Resettlement Action Plan (ARAP) was

also prepared under the project. The ESIA for the entire project as well as the ARAP were published on

the Bank’s website on 26 February 2018.

3.2.2 Positive Environmental and Social Impacts. During the works phase, the positive impacts

will concern the creation of temporary jobs and increase in commercial activity in the regions crossed

by the project (about 85,000 work hours per day during the project and the creation of jobs with 35%

for under-35 year old youths and 15% for women.) In the project road operational phase, it is expected

that at least 400 jobs will be induced as a result of (i) higher penetration among the local communities

of government or non-governmental programmes concerning, in particular, water supply, public health,

and education; (ii) the many types of positive socio-economic fallouts with local and regional or even

national reach and improved trade between the different Departments of Ziguinchor and Sédhiou and

the capital, Dakar and, on a wider scale, with The Gambia and Guinea Bissau. In addition, people living

close to the paved roads and related rural access roads will benefit from faster and less expensive access

to social and health facilities: schools, health posts and hospitals, administrative buildings, as well as to

places for commercial transactions such as daily or weekly markets (loumas) and shops. Furthermore,

the project will contribute to increased marketing of agricultural and fishery production and tourism in

the regions of Ziguinchor and Sédhiou, in particular, through the establishment of storage and

processing techniques. Finally, the construction of enclosures and health facilities, especially for the

schools along the road, will impact positively on children’s security, hygiene and health. Enhancement

measures are included in the project, on the basis of concerns and wishes of the communities consulted.

The related projects were identified, prepared and finalized during the project’s appraisal. They mainly

concerned the construction of community infrastructure such as feeder or access roads, the rehabilitation

and construction of school enclosures, training and health centres and markets, as well as the

12

construction or relocation of motor parks. The total amount allocated to these related facilities is CFAF

6.78 billion, i.e. 6.06% of the total project cost.

3.2.3 Negative Environmental and Social Impacts. The main environmental impacts caused by

the project will be: (i) modification of the soil structure by subsidence on a fairly wide strip of about

20m on either side of the roads and rural feeder roads and the erosion of stripped surface areas in the

borrow areas; (ii) chemical pollution of soil and water by waste products and potential spillage of

chemical products (iii) air pollution from the movement of site machinery, in particular, the opening of

borrow pits and diversions, slashing and clearing of the right-of-way, living quarters and emissions

from the asphalt plant (iv) noise pollution from the site machinery. The biological impacts mainly

concern the destruction of vegetation due to diversions and borrow areas, but also the rehabilitation of

urban roads. The destruction of vegetation will impact on wildlife and wildlife habitats. On the social

front, the project will result in: (i) the displacement of 177 people currently settled along the road right-

of-way and engaged in commercial activities at the entrances to the towns of Bounkiling, Bignona and

Mpack; (ii) the project will also have an impact on the local population’s well-being and quality of life

since people will be exposed to site nuisances; (iii) the influx of workers could increase the risk of

sexually transmitted diseases such as HIV/AIDS which already has a worrisome prevalence rate in the

project area; (iii) the works will also affect the movements and security of people due to the movement

of site machinery and excavation required for the urban roads and borrow areas; and (iv) lastly, potential

conflicts could break out between site workers and local communities.

3.2.4 Environmental and Social Management Plan (ESMP). In order to control the negative

environmental impacts, mitigation and compensation measures have been prepared. An ESMP was

prepared summarising the recommended mitigation measures, monitoring indicators, monitoring

responsibilities, supervision and control as well as the implementation schedule for the measures.

Environmental supervision will be carried out by the Control Bureau of AGEROUTE’s Management

Unit. The regional division of the Environment and Classified Establishments Directorate (DREEC)

and the Regional Environmental Monitoring Committee (CRSE) will be responsible for monitoring. A

memorandum of understanding will be signed to that effect with DEEC. The cost of the ESMP is CFAF

2.7 billion excluding the ARAP; this cost will be borne by the project.

Resettlement

3.2.5 The abbreviated resettlement plan summary was (ARAP) was published on the Bank’s website

on 26 February 2018 at the same time as the ESIA summary in compliance with the Bank’s requirements

and after approval by DEEC and issuance of an environmental compliance certificate. However,

following claims, the ARAP approval process was resumed between 20 and 23 March and evidence of

this approval was submitted to the Bank. This led to an update of the number of PAP. Thus, the number

of affected people rose from 145 to 177 broken down as follows: 62 people in Bounkilling Department,

101 people in Bignona Department and 14 people in Ziguinchor Department. The PAPs are chiefly petty

traders and owners of 4 small stalls. The estimated budget for the resettlement, including livelihood

restoration measures is CFAF 319,434,500. The construction of new markets and associated budget for

the displacement of PAPs is included under related works. The construction of this infrastructure and

the displacement of PAPs will be carried out prior to commencement of works on the road sections

concerned. In the case of the Kalounayes loop, the works could affect the enclosures, plantations and

fields. A provision of CFAF 300 million is planned under the ESMP to cover damage during the works

including quarries and diversions, for the entire project. An environmental and social development

specialist will be recruited by AGEROUTE to monitor compensation before and during the works. The

Government has given its commitment to:(i) implement the project and have it implemented by

contractors in accordance with the rules and procedures of the Bank, under national law and the

recommendations, provisions and procedures contained in the project’s Environmental and Social

Management Plan (ESMP); and (ii) provide half-yearly reports on the implementation of the ESMP and

ARAP, including, as necessary, weaknesses and corrective actions taken or to be taken.

13

Climate Change

3.2.6 The project has been classified in climate category 2 according to the Bank’s CCS since it

shows sensitivity to the impacts of climate fluctuations, namely floods and wind deposits of sand. It is

anticipated that there will be an increase in greenhouse gas emissions such as CO2, mainly due to

increased traffic and deforestation during the works. Also, the planting of 65,000 roadside trees and 30

ha of mangroves have been planned as compensatory measures but also with a view to mitigating the

aforementioned emissions. A reforestation plan will be required for contractors that bid and the NGOs

responsible for the plantation and long-term monitoring. The latter will work under the control of the

competent authorities of the Forestry Department with which a memorandum of understanding will be

signed. The cost of restoring vegetation and its monitoring is estimated to be CFAF 692 million and

will be included in the works’ contracts.

Gender

3.2.7 As regards gender, in 2015, the Government of Senegal adopted a National Strategy for Gender

Equality and Equity (SNEEG). Through this strategy, it intends to make gender equality one of the

pillars for boosting economic development. In 2017, this strategy was revisited (SNEEG2) in order to

anchor it in the PSE. The socio-economic situation of women remains precarious with wide disparities

in several areas. Despite their significant contribution to the agriculture sector and trade, women are

faced with discrimination in access to productive resources (access to credit, land, etc.) thereby limiting

their productivity.

3.2.8 The project is classified in Category II according to the Gender Marker System. Difficulties

of access to the project area highlight this imbalance of disparities. Women represent 48.79% of the

PDAI’s total population. They will be the main beneficiaries of this project due to the : (i) facilitation

of access for transporting their produce with the related improvements to rural access roads; (ii) the

reduction of distances for the drudgery of fetching water as a result of boreholes and (iii) development

of wetlands for market gardening, support in terms of small agricultural implements to increase yields

and the processing of agricultural and fishery products, conservation, construction of market sheds for

marketing as well as training to build their organisational capacities in order to more effectively

participate in negotiations on the selling prices of their produce.

Support to Youth Employability

3.2.9 The Senegalese labour market is characterized by the vulnerability of women faced with

unemployment and under-employment. At the national level the combined unemployment and under-

employment rate is 26% for adults and 31% for youths. In the Ziguinchor region, it is noted that this

combined rate for youths is 26%, an average which is below that observed at the national level. Rural-

urban migration of young people explains this low rate. Indeed, the analysis of the age pyramid shows

a drop in the number of young people from 15 years old in this region with the number of 15-19 year-

olds dropping from 38 000 to 30 000 among 20 to 24 year-olds and to 22,000 for the 25-39 year-olds

(RGPHAE). In the region of Sédhiou, there is a high unemployment and under-employment rate of

33%, coupled with a high poverty rate of 63.8%. The situation of young people is also marked by a high

rate of idleness i.e. the proportion of young people who are neither in employment, nor in training, nor

unemployed a rate which is 36.8% (compared with 4% in Ziguinchor). This population is often

considered to be a population at risk. In the region of Ziguinchor it only represented 4%

3.2.10 These situations of youth vulnerability in terms of employment are a concern for the Senegalese

authorities who have made employment a major objective of the Emerging Senegal Plan. The Bank in

2016 adopted the 2016-2020 Jobs for Youth in Africa Strategy which involves under Pillar II the

mainstreaming of employment in all the Bank’s sector operations. The BPW sector which absorbs a

high proportion of Senegal’s investment budgets should, therefore, participate strongly towards the

achievement of this strategy’s objectives.

14

3.2.11 The project’s implementation will have a significant impact in terms of direct and indirect job

creation. The planned monitoring and evaluation system will make it possible to exactly measure the scale.

However, on the basis of the experience gained from other projects of the Bank’s Transport Department,

there are plans to create at least 85,000 pers/days of direct jobs (of which 35% for young people under

35 years old and 15% for women).

3.2.12 In addition to these jobs inherent in the works, the project provides for actions to improve the

employability of young unemployed engineers and senior technicians. Indeed, in the works control

contracts, provision will be made for covering the cost of job training for young people over the works

implementation period (24 months). These young people will be placed on the project sites with

contractors (10 per contract) and consulting firms for works control (03 per contract). This would make

62 young people at least 30% of whom would be women. They will be integrated in the teams of

contractors and control missions in order to familiarise themselves with management of large-scale

works. They will be required to produce a quarterly report in which they will indicate the activities in

which they have participated over the period. These reports, approved by the contractor or control

mission, depending on the case will be submitted to the executing agency. On completion of the works,

the engineers trained could either join the administration, or be recruited to large enterprise or consulting

firms or become self-employed. In any event, the experience acquired could help them to join

professional circles. In the bidding documents and requests for proposals bidders will be required

to indicate the method for supervising young people during works implementation and supporting

them after works completion.

3.2.13 The project will also extend the experiment which is being conducted through the vocational

training programme for at least 500 young people from the regions of Ziguinchor, Sédhiou and possibly

Kolda in the BPW (for all trades), agricultural (market gardening, agricultural product processing,,

poultry farming, etc.) services (catering and sewing, tourism etc.). This training in particular targets

young school drop-outs or those who have never been enrolled in school or displaced youth or those

with reduced mobility as a result of the armed rebellion. Following the training, craft kits will be given

to them to make them more operational and supportive action provided (training in the management of

activities, support to business/EIG start-ups and financing of micro-enterprises. The works on

constructing access roads with pavers will provide an opportunity for young people using a labour-

intensive works approach with apprenticeship training linked to a training centre in the project area.

3.2.14 The project has also identified support to a training centre in the isolated region of the

Kalounayes loop which allows this centre to expand the availability of its training to promising trades

in the territory (agriculture, agricultural processing, BPW, etc.). The diversification of training methods

makes it possible to enrol a significant number of young people (600 instead of 100 at present) while

anchoring training on the needs identified by enterprises and producer organisations in the area.

Sensitisation Campaigns on HIV/AIDS, Nutrition, Environmental Protection and Road

Safety

3.2.15 The project includes actions aimed at raising incomes and improving health coverage as well

as the well-being of the population, in particular vulnerable people including women and children in the

PFAI. These will, among others: (i) improve production in rural areas; (ii) reduce gender-related

inequalities; (ii) promote women’s literacy education, especially in rural areas; (iii) alleviate the burden

of women’s domestic chores; (iv) strengthen the promotion and diversification of economic and income-

generating activities in favour of women in production, processing and marketing in the value chain of

growth-bearing agricultural subsectors; and (iv) build the population’s adaptation and resilience

capacities in the PDAI by strengthening the role of women in the prevention and management of illness-

related risks, etc.

3.2.16 There are plans to conduct sensitisation campaigns on environmental protection, nutrition, road

safety and on sexually transmitted disease prevention. To that end, specialised NGOs in that area will

be recruited to carry out local proximity work. More specific themes will be agreed upon during the

15

implementation of this sub-component, in liaison with these NGOs, specialised structures, the technical

Ministries concerned as well as with the project team. They will be able to cover communication for

behaviour change (CBC) aspects as well as those linked to the transmission of practical and specific

knowledge. These campaigns will be organised during and after the works and will target around 20,000

people about at least 50% of whom will be women.

Road Safety

3.2.17 The issue of road safety is of great concern to the populations which require the installation of

speed bumps where the road crosses any localities. In the absence of speed bumps, the populations erect

barriers on the road with tree trunks, which only worsens road safety. Serious accidents have occurred

on the road because vehicles which, in order to avoid frequent hold ups, travel at high speed in order to

leave the road before night fall. This fear continues even though the security situation has improved. In

order to reconcile the road’s main function and road safety requirements, it will be necessary to step up

sensitisation campaigns and security force patrols, but also to establish rest areas. The project intends

to purchase ambulances in order to improve emergency care for victims of road accidents. Measures

will be taken by AGEROUTE to ensure that the road safety audit consultant is recruited at works

commencement in order to ensure that he/she can review the bidding documents and ensure that road

safety is more closely taken into account during the implementation of road works.

3.2.18 Senegal is one of the rare countries in West Africa not to have completed the implementation

of necessary provisions and mechanisms to achieve the goals of the Decade of Action for Road Safety

(2011-2020) aimed at stabilizing, then halving the number of road traffic fatalities in accordance with

the relevant WAEMU Directives. In 2011, Senegal prepared a road safety strategy and action plan to

improve road safety and one of its strong recommendations concerns the establishment of a National

Road Safety Management and Coordination Unit (OGESER). On 19 February 2018, a workshop was

organised to review the recommendations of that study. It is expected that the law establishing this body

will be submitted to the National Assembly by 31 December 2019 at the latest.

IV IMPLEMENTATION

4.1 Implementation Arrangements

4.1.1 The project owner is the Ministry of Infrastructure, Land Transport and Road Access (MITTD)

backed by the Road Works and Management Agency (AGEROUTE) which has sound experience

concerning the implementation of similar projects. A Project Management Team (PMT) will be

established responsible for steering and controlling general project implementation. The PMT’s main

duties will be to perform the following tasks: (i) ensure compliance with central government’s

commitments in the financing agreements; (ii) prepare documents that will allow the Government to

fulfil the loan conditions; (iii) prepare bidding documents for submission to the Bank for its no-

objection; (iv) ensure compliance with the project implementation schedule; (v) prepare project status

reports; (vi) prepare counterpart fund budgets and ensure their timely availability; (vii) carry out the

project’s financial management (checking of cost statements, transmission to the Bank of direct

payment requests and see to the timely submission of the project’s accounting and financial audits) ;

(viii) ensure impact monitoring and evaluation, etc. The PMT will be composed of: 1 Civil Engineer,

the Coordinator, 3 civil engineers responsible for the works Lot assigned to the field, 1 procurement

specialist, 1 monitoring and evaluation specialist and 1 accountant and 1 environmentalist. The CVs of

of this Team were submitted to the Bank.

Procurement Arrangements

4.1.2 In view of the scope and complexity of some works and consulting services planned under the

project, the Bank’s procurement methods and procedures will be used; this may present a significant

fiduciary risk. The following contracts will be awarded using the Bank’s Procedures and Measures

16

(BPM) in accordance with the ‘Procurement Policy and Methodology for Bank Group-funded

Operations dated October 2015 using the relevant Bank standard bidding documents (SBD).

4.1.3 The assessment of the Senegalese public procurement system (SPPS) produced a “moderate”

procurement risk rating. This generic country risk was reassessed in the context of all the activities

included under the Project to Rehabilitate the SENOBA-Ziguinchor Road and Open up the Southern

Regions in order to be taken into account in determining the project’s overall procurement risk. The

overall project procurement risk rating (PPRR) at the time of the assessment is considered to be

moderate. Most of the problems/risks have been identified and mitigation measures proposed and

incorporated in the PERCA action plan are set out in Paragraph B.5.9 of the technical annexes. All the

costs associated with the implementation of this action plan are included under this project. Also, the

services to be acquired using this method are : (i) sensitisation on HIV/AIDS, social mobilisation,

environmental protection and road safety, (ii) fragility assessment, (iii) technical and road safety audit;

and (iv) communication services and (v) the procurement of different services related to the operation

of the executing agency which will be carried out in compliance with the provisions of the Bank’s

Administrative, Accounting and Financial Procedures Handbook for the project with the Bank’s prior

approval.

4.1.4 The project will be implemented by AGEROUTE within which will be established a Project

Management Team (PMT). Project procurements will be carried out by the PMT which will be

supported by the procurement unit of AGEROUTE which employs several procurement specialists with

sound experience of Bank-financed projects. For further information, the procurement methods and

procedures (PMP) are set out in detail in the Annex to the Programme Appraisal Report and in the

procurement plan.

Financial Management

4.1.5 The project’s financial implementation will be carried out in compliance with AGEROUTE’s

existing procedures. While not exhaustive, these include the budgeting procedures, the expenditure

implementation procedures and accounting procedures. AGEROUTE will be responsible for the

implementation of all the necessary controls to ensure: (i) the use of project funds only for the planned

purposes by giving considerations of economy and yield the importance they deserve; (ii) preparation

of accurate, reliable and timely information for the periodic financial reports and (iii) the safeguarding

of project assets. In 2015, the Bank reviewed the financial management of AGEROUTE for a road

project that it is financing..

4.1.6 The project annual financial statements established by the PMT, as well as the internal control

system, will be submitted for auditing by an independent external audit firm, on the basis of terms of

reference approved by the Bank. Four audits are planned for the project for the 2018, 2019, 2020 and

2021 fiscal years. The audit reports must be transmitted by the PMT to the Bank within six months of

the fiscal year-end. The audits will be performed in compliance with the international standards of

auditing (ISA). The first year audit will cover the first 18 months, if the first disbursement is made in

the second half (after 30 June) of the year. The external audit should be adapted to the project’s specific

risks. The auditor’s contract will be concluded for a one-year period, renewable on the basis of the

quality of service delivery and for a duration not exceeding 3years.

17

Disbursement

4.1.7 The direct payment and reimbursement methods will be mainly used in the context of this

programme for Bank-financed activities. Similarly, to cover certain minor operating expenses, the

revolving fund method will be used. For that purpose, a special account will be opened by the Borrower,

on behalf of the project, in an acceptable commercial bank. The purpose of this account for the payment

of the Bank’s resources intended for the operation of the PMT. The PMT accounting and financial

officer will be responsible for project financial management.

Financial and Accounting Auditing

4.1.8 The project will be submitted for annual verification of its accounts by an independent external

auditor recruited on the basis of terms of reference approved by the Bank. The auditor shall be recruited

within 6 months of the project loan’s effectiveness. The duration of the auditor’s contract shall not

exceed three successive years, and the continuation of the auditing services will depend on the Bank’s

approval of the first audit report. Audit reports must be submitted to the Bank no later than six months

after the closing of the accounting period audited, and the audit costs will be paid directly by the Bank

after approval of each report.

4.2 Monitoring &Evaluation

4.2.1 The programme’s monitoring and evaluation will include internal and external monitoring,

Bank supervision missions, a mid-term review and a final evaluation including the completion report

prepared by the executing agencies. Works implementation will be the subject of monthly and quarterly

reports established by the works control and supervision agencies. The executing agency will provide

the Bank with quarterly programme implementation reports. Special attention will be paid to

consideration of the effectiveness of the proposed measures under this programme in order to address

the main lessons learned from the implementation of previous projects (quality of PDs, procurement

timeframes, realism of programme loan conditions, mechanism established for the continuing

monitoring and evaluation of outputs over a long period after project completion and guaranteeing and

increasing road maintenance resources).

4.2.2 Monitoring the programme impacts will help to identify and analyse the outcome indicators

consequent upon the programme’s implementation and contribute to the achievement of the expected

outcomes. It will be carried out by a consulting firm to be recruited by the executing agency.

Table IV.1

Project monitoring and supervision schedule

Approximate

date Activity Mission composition

Person-

weeks

22/07/2018 Launch Project officers (Transport economist and civil engineer),a disbursement officer, a procurement officer, a social sector specialist and an environmental expert

6

23/03/2019 Supervision Project officers (Transport economist and civil engineer) infrastructure officer from the Bank’s country offices and social sector specialists

7

22/09/2019 Supervision Infrastructure and procurement officers from the Bank’s country offices and a social

sector specialist 5

23/03/2020 Supervision Project officers (Transport economist and civil engineer) and infrastructure officers from

the Bank’s country offices and a social sector specialist 7

22/09/2020 Project Mid-Term

Review

Project officers (transport economist and civil engineer), a disbursement officer,, a

procurement officer, an environment expert and a social sector specialist 9

20/04/2021 Supervision

Project officers (Transport economist and civil engineer),a disbursement officer, a

procurement officer, an environmentalist and infrastructure officers from the Bank’s country offices and a social sector specialist

11

21/03/2022 Completion Report Transport economist, a civil engineer and a social sector specialist 6

Total 51

18

4.3 Governance

4.3.1 As regards governance, the Senegalese authorities are resolutely committed to the fight against

impunity and the promotion of economic governance. The economic and budgetary transparency

measures taken include the

adoption of Law No. 2012-22

establishing the Public Finance

Management Transparency Code,

Law No. 2012.30 establishing the

National Anti-Fraud and

Corruption Bureau (OFNAC),

Law No. 2014-17 governing the

declaration of property followed

by Decree No. 2014-1463

determining the list of persons

subject to the property declaration.

The country is ranked 9th among

African countries according to the 2016 Ibrahim Index for African Governance and in 66th position out

of 180 countries in the 2017 Corruption Perceptions Index calculated by Transparency International.

An assessment recently carried out by the Bank concluded that the existing procurement procedures in

Senegal take into account principles of economy, efficiency and transparency in procurement and may

be applied to international competitive bidding processes to be carried out in the context of projects

financed by the Bank in Senegal.

4.3.2 The project design also incorporates specific measures to mitigate the governance risk in order

to ensure that resources are used efficiently and for the purposes for which they are intended. Prior or

post review by the Bank of all the procurement activities will be required. In addition, the Programme

makes provision for independent auditors who perform project financial and procurement audits.

4.4 Sustainability

4.4.1 The sustainability of project investments depends on the quality of the works and the measures

that will be taken to provide maintenance and ensure the renewal of investments. The road pavement

structures retained can accommodate traffic that is also aggressive. The project roads, urban roads and

rural access roads are eligible for maintenance under the Autonomous Road Maintenance Fund (FERA).

However, FERA’s resources are insufficient (71% of needs covered) and difficulties in mobilising

expected revenue are frequent. While revenue from the Road User Tax (RUT) is easily mobilised, the

same does not apply for the CFAF 25 billion/yr. budget allocation from the Consolidated Investment

Budget (CIB). Submission to the Bank of FERA’s annual activity reports is a project loan condition.

4.4.2 In order to finance the Three-Year Rolling Programme (TYRP) whose road maintenance

requirements are estimated to be CFAF 186.2 billion, FERA has secured a bank loan. A first financing

agreement for CFAF 102.5 billion was signed on 30 December 2016 with ECOBANK and UBA.

However, this borrowing solution is not sustainable in the medium-to-long term with the current level

of the RUT. It will be necessary to make the RUT more stable and more autonomous by: transforming

it into a levy instead of a tax (road marketing principle); (ii) by including it in the middle section of the

hydrocarbon price structure; and (iii) gradually removing the budgetary allocation in favour of an

increase in the RUT.

4.4.3 With regard to axle load control, Senegal’s road network in October 2017 had 17 weighing

stations, two of which are on the Sénoba-Mpack road (one at Bignona and one at Ziguinchor). These

weighing stations are operated by Afrique Pesage Sénégal Ltd. Since 15 December 2012, the control is

effective and penalties are applied with a tolerance of 20% which are variable depending on whether

the overload is excessive (above 40%) or not excessive (below 40%). According to statistics, a

downward trend in the percentage of overloaded vehicles has been observed year-on-year. In October

0,00

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80,00

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

I

n

d

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Senegal- Mo Ibrahim Index Trend

OverallGovernance

Security and Ruleof Law

Participation andHuman Rights

SustainableEconomicDevelopment

HumanDevelopment

19

2017, an average of 46.51% of all vehicles were overloaded and most of the excessively overloaded

trucks (0. 51%) came from the Autonomous Port of Dakar. Integral application of Regulation 14 has

been postponed. In accordance with the decision by the Ministers at a meeting held on 28 October 2017

in Abidjan. Senegal which had started offloading excessive loads in November 2017, but had to

renounce it following consultations with Mali.

4.4.4 Progress in axle load control has been made, but only the effective and comprehensive

application of Regulation 14 will be able to ensure the sustainability of investments. It is recommended

that the government should start enforcing the Regulation in accordance with the effective decisions of

the Ministers in charge of Transport.

4.5 Risk Management

4.5.1 The main risks identified are: (i) the security situation in southern Senegal which could have

an impact on the number of bidders or on the amount of bids; (ii) the sustainability of investments is not

guaranteed because of (a) insecurity, insufficient resources for road maintenance; and (b) the failure to

fully apply Regulation 14 on axle load control; and (iii) the WAEMU Decisions on the limitation of

checkpoints and the abolition of illegal levies are not enforced.

4.5.2 In order to mitigate these risks: (i) there are plans under this project to cover costs related to

the deployment on the works sites of detachments of defence and security forces; (ii) the mission

recommended a mechanism to gradually lower the subsidy to FERA and increase the RUT in the same

proportions and bolster the Government’s decision concerning the offloading of axle overloads in April

2018. Implementation of these recommendations will constitute a project loan condition. In order to

limit checkpoints on the corridor, the project is counting on sensitisation through the dissemination of

the findings of the OPA surveys which will be backed by the project

4.6 Knowledge Building

4.6.1 The knowledge which should be gained from the project’s implementation will concern good

practices in the management of regional-oriented transport projects that will improve access to

production areas and impact monitoring and evaluation. The project will provide a good opportunity for

the Bank to implement its regional integration policy and strategy covering the 2014-2023 period and

to expand its knowledge on the impact of transport corridor projects on sub-regional trade and economic

development. Good practices will be disseminated to all project stakeholders through periodic meetings

and summary notes. The emphasis placed on the project’s socio-economic impact aims, in particular, to

meet knowledge building needs. Indeed, establishment of the baseline situation before the

commencement of project activities provides a basis for comparison in order to realistically assess the

level of achievement of this project’s impacts. The data for comparison are derived from the assessment

of the project outcomes to be carried out on works completion. The holding of a national workshop will

contribute to the dissemination of knowledge acquired from these studies.

4.6.2 The main knowledge and lessons learned will be managed from a relational database at

AGEROUTE. This database will effectively facilitate the management of knowledge accumulated on

activities, outputs, the main outcomes and lessons learned from this project. Summaries could be

published on the Bank’s website.

20

V LEGAL FRAMEWORK

5.1 Financing Instrument

An AfDB loan agreement will be signed between the Republic of Senegal and the African Development

Bank. And a second grant agreement, granted on the resources of the AfIF, will be signed between the

Republic of Senegal and the African Development Bank.

5.2 ADB loan conditions

A. Conditions precedent to effectiveness of the AfDB Loan

5.2.1 Effectiveness of the AfDB Loan Agreement shall be subject to fulfilment by the Borrower to

the satisfaction of the Bank, of the conditions set out in section 12.01 of the General conditions

applicable to AfDB Loan and Guarantee Agreements.

B. Special condition precedent to disbursement of loan resources for works involving

expropriation

5.2.2 In addition to effectiveness of the Loan Agreement, the disbursement of resources of the loan

for works involving expropriation shall be subject to fulfilment by the Borrower, to the satisfaction of

the Bank, of the following conditions:

(i) Provide gradually and before any work begins on a concerned area, evidence of compensation

and / or displacement of persons affected by the Project on said area, in accordance with the

Environmental and Social Management Plan (ESMP), the Abridged Resettlement Action Plan

(ARAP), and the Bank's rules and procedures on this matter, including the Involuntary

Resettlement Policy and its Disclosure System Integrated safeguards. It is specified that when

this compensation or resettlement is not possible, either totally or partially, because of the

impossibility to identify the beneficiaries or in case of litigation or other impossibility beyond

the control of the Duly substantiated borrower acceptable to the Bank (hereinafter referred to

as "Contentious Cases"), the condition may be considered to be met if the Borrower provides

evidence that the resources allocated to the compensation and / or relocation of the Litigious

Cases deposited in a bank account acceptable to the Bank specifically earmarked for such

compensation and / or relocation, or remittances to a trusted third party acceptable to the Bank

C. Other AfDB loan conditions

5.2.3 The other conditions are as follows

(i) Submit to the Bank, no later than December 31, 2019, the proof of the submission for adoption

to the National Assembly of the draft law yet creation of the autonomous body responsible

for road safety (paragraph 3.2.18)

(ii) Submit to the Bank FERA’s annual activity reports

(iii) Submit to the Bank FERA’s annual activity reports Provide the Bank, no later than

31/12/2020, (i)with the decree transforming the Road Usage Tax (RUT) into a levyfor the

benefit of the Autonomous Road Maintenance Fund (FERA), (ii) the order authorizing direct

transfer of the levy resources in a commercial bank account of the FERA; and (iii) the

measures taken for the gradual suppression of the annual public allocation of 25 billion CFAF

for road maintenance in favour of an increase of the RUT (Paragraph 4.4.2)

21

(iv) Communicate to the Bank, no later than 31/12/2019, the proof of the integral application of

WAEMU Regulation 14 concerning axle load control for loads intended for national

consumption originating from cement factories and the Autonomous Port of Dakar

D. Undertakings

The Borrower further undertakes, to the satisfaction of the Bank, to:

(i) Submit to the Bank the project financing agreement with the European Investment Bank

(EIB)

(ii) Execute the Project, the ESMP, the ARAP and have it executed by its contractors in

accordance with Bank rules and procedures, national law and the recommendations,

requirements and procedures contained in the ESMP and the ARAP of the Project; and

(iii) Provide semi-annual reports on the implementation of the ESMP and the ARAP, including

any deficiencies and corrective actions initiated or to be initiated (Paragraph 3.2.5).

5.3 AfIF Grant conditions

A. Conditions precedent to effectiveness of the AfIF Grant

5.3.1. The entry into force of the Grant Agreement will be subject to signature by both parties.

B. Special condition prior to disbursement of loan resources for works involving expropriation

5.3.2. In addition to effectiveness of the Loan Agreement, the disbursement of the Loan resources for

works involving expropriation is subject to the fulfilment by the Borrower, to the satisfaction of the

Bank, of the following condition:

(i) Provide, as and when work progresses, and before any work begins on a concerned area,

evidence of compensation and / or displacement of persons affected by the Project on said

area, in accordance with the Environmental and Social Management Plan (ESMP), the

Resettlement Action Plan (ARAP), and the Bank's rules and procedures in this area,

including the Involuntary Resettlement Policy and its Disclosure System; built-in backups.

It is specified that when this compensation or resettlement is not possible, either totally or

partially, because of the impossibility to identify the beneficiaries or in case of litigation or

other impossibility beyond the control of the Duly substantiated borrower acceptable to the

Bank (hereinafter referred to as "Contentious Cases"), the condition may be considered to

be met if the Borrower provides evidence that the resources allocated to the compensation

and / or relocation of the Litigious Cases deposited in a bank account acceptable to the Bank

specifically earmarked for such compensation and / or relocation, or remittances to a trusted

third party acceptable to the Bank

D Other FIAf grant conditions

5.3.3. The other conditions are as follows

(i) Submit to the Bank, no later than December 31, 2019, the proof of the submission for

adoption to the National Assembly of the draft law yet creation of the autonomous body

responsible for road safety (paragraph 3.2.18)

(ii) Submit to the Bank FERA’s annual activity reports

(iii) Submit to the Bank FERA’s annual activity reports Provide the Bank, no later than

31/12/2020, (i)with the decree transforming the Road Usage Tax (RUT) into a levy for

22

the benefit of the Autonomous Road Maintenance Fund (FERA), (ii) the order

authorizing direct transfer of the levy resources in a commercial bank account of the

FERA; and (iii) the measures taken for the gradual suppression of the annual public

allocation of 25 billion CFAF for road maintenance in favour of an increase of the RUT

(Paragraph 4.4.2)

(iv) Communicate to the Bank, no later than 31/12/2019, the proof of the integral application

of WAEMU Regulation 14 concerning axle load control for loads intended for national

consumption originating from cement factories and the Autonomous Port of Dakar

5.4 Compliance with Bank’s Policies

This project complies with all applicable Bank policies.

VI RECOMMENDATIONS

Management recommends that the Boards of Directors:

(i) Approve the proposition for an AfDB loan for an amount of EUR 85.00 million and grant

for a total amount of EUR 25.600 million from the resources of the AfIF grant (including

EUR 25.00 million in favour of the Republic of Senegal) for the project financing, in

accordance with the conditions set out in this appraisal report and the General Conditions

applicable to African development Bank Loan Agreements and to AfIF Grant Agreements;

(ii) Exceptionally grant a waiver to the rule of origin in Article 17 (1) (d) of the Agreement

establishing the African Development Bank, and authorize, for procurements to be made

using the national procurement system of the Republic of Senegal, the application of the

rules of eligibility contained in that system coupled with the provisions of Paragraph 5.3

(c) of the Procurement Policy for Bank Group-funded operations, October 2015 Edition.;

and

(iii) Decide that the procurements of goods, works and services that are financed from the

resources of the AfIF grant will be open to non-members of the Bank

I

APPENDIX I: Senegal: COMPARATIVE SOCIO-ECONOMIC INDICATORS

Year Senegal Africa

Develo-

ping

Countries

Develo-

ped

Countries

Basic Indicators

Area ( '000 Km²) 2017 197 30 067 94 716 35 018Total Population (millions) 2017 16,1 1 244,8 6 252,1 1 190,0Urban Population (% of Total) 2017 43,8 40,5 49,2 81,4Population Density (per Km²) 2017 83,4 42,4 66,0 34,0GNI per Capita (US $) 2016 950 1 836 4 442 41 208Labor Force Participation *- Total (%) 2017 57,5 65,8 62,3 60,3Labor Force Participation **- Female (%) 2017 45,3 55,3 47,8 52,5Sex Ratio (per 100 female) 2017 96,7 100,2 107,5 105,3Human Dev elop. Index (Rank among 187 countries) 2015 162 ... … …Popul. Liv ing Below $ 1.90 a Day (% of Population) 2011 38,0 ... 16,3 0,6

Demographic Indicators

Population Grow th Rate - Total (%) 2017 3,0 2,5 1,3 0,6Population Grow th Rate - Urban (%) 2017 3,6 3,5 2,4 0,9Population < 15 y ears (%) 2017 43,7 40,8 27,9 16,6Population 15-24 y ears (%) 2017 19,4 19,2 16,7 11,9Population >= 65 y ears (%) 2017 2,9 3,5 6,8 17,4Dependency Ratio (%) 2017 87,2 79,6 54,6 52,0Female Population 15-49 y ears (% of total population) 2017 24,1 24,0 25,6 22,6Life Ex pectancy at Birth - Total (y ears) 2017 67,7 61,9 70,2 80,7Life Ex pectancy at Birth - Female (y ears) 2017 69,5 63,3 72,3 83,5Crude Birth Rate (per 1,000) 2017 36,2 33,9 20,6 10,9Crude Death Rate (per 1,000) 2017 5,6 9,0 7,5 8,6Infant Mortality Rate (per 1,000) 2016 33,6 49,3 33,1 4,5Child Mortality Rate (per 1,000) 2016 47,1 72,6 44,3 5,3Total Fertility Rate (per w oman) 2017 4,9 4,4 2,6 1,7Maternal Mortality Rate (per 100,000) 2015 315,0 444,1 237,0 10,0Women Using Contraception (%) 2017 22,5 37,6 62,1 ...

Health & Nutrition Indicators

Phy sicians (per 100,000 people) 2005-15 6,1 41,6 121,6 293,5Nurses and midw iv es (per 100,000 people) 2005-15 43,0 120,9 211,3 873,4Births attended by Trained Health Personnel (%) 2010-16 53,2 55,9 76,6 98,9Access to Safe Water (% of Population) 2015 78,5 71,6 89,4 99,5Access to Sanitation (% of Population) 2015 47,6 39,4 61,5 99,4Percent. of Adults (aged 15-49) Liv ing w ith HIV/AIDS 2016 0,4 3,6 1,1 ...Incidence of Tuberculosis (per 100,000) 2016 140,0 221,7 163,0 12,0Child Immunization Against Tuberculosis (%) 2016 97,0 82,1 84,9 95,8Child Immunization Against Measles (%) 2016 93,0 74,4 84,0 93,7Underw eight Children (% of children under 5 y ears) 2010-15 18,1 15,3 0,9Prev alence of stunding 2010-15 19,4 33,3 25,0 2,5Prev alence of undernourishment (% of pop.) 2015 11,3 17,5 12,3 2,7Public Ex penditure on Health (as % of GDP) 2014 2,4 2,6 3,0 7,7

Education Indicators

Gross Enrolment Ratio (%)

Primary School - Total 2010-16 82,2 101,7 103,8 102,6 Primary School - Female 2010-16 86,9 98,8 102,2 101,8 Secondary School - Total 2010-16 49,6 51,8 ... 106,6 Secondary School - Female 2010-16 49,1 49,7 ... 106,4Primary School Female Teaching Staff (% of Total) 2010-16 32,4 46,0 51,3 81,0Adult literacy Rate - Total (%) 2010-16 42,8 68,6 ... ...Adult literacy Rate - Male (%) 2010-16 52,8 76,0 ... ...Adult literacy Rate - Female (%) 2010-16 33,6 61,7 ... ...Percentage of GDP Spent on Education 2010-16 7,4 4,9 4,1 5,2

Environmental Indicators

Land Use (Arable Land as % of Total Land Area) 2015 16,6 8,0 11,3 10,1Agricultural Land (as % of land area) 2015 46,1 37,4 38,1 35,1Forest (As % of Land Area) 2015 43,0 21,0 31,4 28,8Per Capita CO2 Emissions (metric tons) 2014 0,6 1,1 3,5 11,0

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

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

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

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

COMPARATIVE SOCIO-ECONOMIC INDICATORS

Senegal

January 2018

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APPENDIX II

II

Portfolio of Ongoing Bank Projects in Senegal as at 30/04/2018

Project Name Status Age (Year) Source of Financing

Approval Date Approved amount in MUA

Closing Date Disbursed amount in MUA

Undisbursed amount in MUA

Disbursement rate

WATER AND SANITATION

Project to Reinforce Multiple-Use Water Supply along the Louga-Thiès-Dakar Road from the Keur Momar Sarr Treatment Plant - AfDB

Ongoing 1.44 AfDB 18/11/2016 54.59 30/06/2021 2.94 51.65 5.39%

Project to improve faecal sludge management and re-use in the town of Ziguinchor - FAE

Ongoing 5.01 AWF 23/04/2013 1.06 25/06/2018 1.06 0 100.00%

Water and sanitation sector project (PSEA) Ongoing 4.01 ADF 23/04/2014 20.00 31/12/2018 7.67 12.33 38.35%

Ongoing 4.01 RWSSI 23/04/2014 5.04 31/12/2018 2.09 2.95 41.47%

Sub-total 80.69 13.76 66.93 17.05%

TRANSPORT & ICT

Dinguiraye-Nioro-Keur-Ayib (DNK) Road Rehabilitation Project

Ongoing 3.92 ADF 28/05/2014 23.77 31/12/2019 15.75 8.02 66.26%

Project to rehabilitate RN2 and open up access to Morphil Island

Ongoing 2.37 BAD 16/12/2015 101.47 31/12/2019 16.51 84.96 16.27%

Digital Technology Park Project Ongoing 2.52 AfDB 21/10/2015 51.2 31/12/2020 1.53 49.67 2.99%

Urban Modernization Programme (PROMOVILLES)

Ongoing 1.08 AfDB 29/03/2017 96.04 31/12/2021 5.79 90.25 6.03%

Dakar Regional Express Train Project (TER) Ongoing 0.86 AfDB 21/06/2017 153.66 31/12/2021 17.64 136.02 11.48%

Sub-total 426.14 57.22 368.92 13.43%

AGRICULTURE

Community Roads Project in support of

PNDL (PPC/PNDL)

Ongoing 4.78 ADF 17/07/2013 15.00 31/12/2018 13.19 1.81 87.93%

Ongoing 4.37 OPEP 11/12/2013 6.97 30/06/2019 3.69 3.28 52.94%

Ongoing 4.64 ADF 04/09/2013 15.00 31/12/2018 9.85 5.15 65.67%

APPENDIX II

III

Project to Restore the Ecological and Economic Functions of Lake Guiers (PREFELAG)

Ongoing 4,64 GEF 04/09/2013 0.92

31/12/2018 0.49 0.43 53.26%

Food Security Support Project in Louga, Matam and Kaffrine Regions

Ongoing 5,00 ADF

26/04/2013 2.00 31/12/2018 1.23 0.77 61.50%

Ongoing 5,00 GAFSP 26/04/2013 27.88 31/12/2018 17.05 10.83 61.15%

PPF Rice Value Chain Development Project in the Senegal River Valley (PDCV Riz)

Ongoing 1,95 PPF 18/05/2016 0.55 31/03/2018 0.02 0.53 3.64%

PPF Youth entrepreneurship development project in the agricultural and agro-food subsectors (PDEJAS)

Ongoing 1,91 PPF 01/06/2016 0.81 31/05/2018 0.78 0.03 96.30%

Project to improve the quality of climate information to build community resilience in Senegal (CDSF)

Ongoing 1,12 ADF 17/03/2017 0.85 31/12/2019 0.01 0.84 1.18%

Sub-Total 69.98 46.31 23.67 66.18%

GOVERNANCE

Private Sector Promotion Support Project (PAPSP)

Ongoing 5,62 ADF 10/09/2012 4.04 30/06/2018 2.98 1.06 73.76%

Legal assistance to the legal sector (ALSF) Ongoing 1,58 ADF 30/09/2016 0.69 31/12/2018 0 0.69 0.00%

Sub-total 4.73 2.98 1.75 63.00%

SOCIAL

Project to Support the Promotion of Employment for Youth and Women (PAPEJF)

Ongoing 4,51 ADF 23/10/2013 21.19 30/06/2019 3.45 17.74 16.28%

Senegal Virtual University Support Project (PAUVS)

Ongoing 4,36 ADF 18/12/2013 3.38 30/06/2019 1.28 2.1 37.87%

Sub-Total 24.57 4.73 19.84 19.25%

MULTINATIONAL

Gambia/Senegal: Multinational project for the construction of the Trans-Gambia Bridge and cross-border improvement (Senegal loan)

Ongoing 6,36 ADF 16/12/2011 3.18 31/12/2019 0.014 3.166 0.44%

APPENDIX II

IV

Rosso Bridge construction project (Senegal loan)

Ongoing 1,39 ADF 09/12/2016 7.5 31/12/2020 0 7.5 0.00%

Programme to build resilience in Sahel (P2RS)

Ongoing 3,12 ADF 16/03/2015 22.25 30/06/2020 7.02 15.23 31.55%

OMVG Energy Project Ongoing 2,58 ADF 30/09/2015 42.5 31/12/2020 7.69 34.81 18.09%

Sub-total 75.43 14.72 60.71 19.52%

MULTISECTOR

Portfolio of Bank’s Ongoing Transport Sector Projects in Senegal as at 30/04/2018

Project name Status Age (Year) Source of Financing

Approval date

Approved amount in MUA

Closing date Disbursed amount in MUA

Undisbursed amount in MUA

Disbursement rates

Dinguiraye-Nioro-Keur-Ayib (DNK) Road Rehabilitation Project Ongoing 3.92 ADF 28/05/2014 23.77 31/12/2019 15.75 8.02 66.26%

Project to rehabilitate RN2 and open up access to Morphil Island Ongoing 2.37 AfDB 16/12/2015 101.47 31/12/2019 16.51 84.96 16.27%

Urban Modernization Programme (PROMOVILLES) Ongoing 1.08 AfDB 29/03/2017 96.04 31/12/2021 5.79 90.25 6.03%

Dakar Regional Express Train Project (TER) Ongoing 0.86 AfDB 21/06/2017 153.66 31/12/2021 17.64 136.02 11.48%

Gambia/Senegal: Multinational project for the construction of the Trans-Gambia Bridge and cross-border improvement (Senegal loan) Ongoing 6.36 ADF 16/12/2011 3.18 31/12/2019 0.01 3.17 0.44%

Rosso Bridge Construction Project(Senegal Loan) Ongoing 1.39 ADF 09/12/2016 7.50 31/12/2020 0.00 7.50 0.00%

APPENDIX II

V

Portfolio of Bank’s Ongoing Private Sector Projects in Senegal as at 30/04/2018

Senegal : Active Private Sector Window

Projects in Senegal as at 30/04/2018

Sector / Operation Status Age Source of financing

Approval date

Approved amount in MUA

Closing date Disbursed amount in MUA

Undisbursed amount in MUA

Disbursement rate

Blaise Diagne International Airport (AIBD)

17/12/2010 58.79 05/03/2029 58.79 0 100.00%

Dakar Toll Motorway Project (Senior loan) Ongoing AfDB 19/07/2010 7.95 31/12/2025 7.95 0 100.00%

Sendou Power Plant Project

- Senior loan Ongoing AfDB 25/11/2009 46.19 31/12/2024 46.19 0 100.00%

- Supplementary Loan Ongoing AfDB 30/10/2015 4.2 10/12/2027 4.2 0 100.00%

Rice Project of the Compagnie Agricole de Saint-Louis (CASL)

Ongoing 1.88 AfDB 22/06/2016 13.19 23/03/2022 8.45 4.74 64.06%

TOTAL 130.32 125.58 4.74 96.36%

APPENDIX III

VI

MAIN RELATED PROJECTS IN THE TRANSPORT SUB-SECTOR FINANCED BY THE BANK

AND DEVELOPMENT PARTNERS IN SENEGAL

DONORS PROJECTS

INVESTMENT

AMOUNT (in

million CFAF)

AFD Construction of the Seaplane Port Road 1 200

Austria Kédougou Bridge Construction Works 3 000

AfDB The Gambia River Bridge Construction Project 45 000

AfDB Rehabilitation of the Dinguiraye-Nioro-Keurayib Road + 6 km of urban roads in Nioro 12 004

AfDB Project to rehabilitate RN2 and open up access to Morphil Island 101 824

AfDB The Gambia River Bride Control Post 2 623

AfDB Promovilles 75 000

AfDB Rosso Bridge

ABEDA Blouf Loop Road, ThionkEssyl – Balingor Section Improvement Works 7 780

ABEDA Joel -Samba Dia-Djiffer Road Improvement 12 488

World Bank Greater Niaye restoration works between Rufisque and Lompoul LOT1 LOT2, LOT3 14 700

World Bank Greater Niaye restoration works between Rufisque and Lompoul LOT 2 + LOT 3 8 100

EIB Rosso Bridge

IsDB VDN LOT 2: CICES - Golf Club 37 917

IsDB Rehabilitation of Ndioum-Thilogne N2 44 100

IsDB Rehabilitation of Dialocoto-Mako - Lot 2 : KP120-Mako 21 000

ABEDA Rehabilitation of Dialocoto-Mako - Lot 1 : Dialocoto – KP 120 14 000

ADF/WAEMU Boundou-Fourdou Juxtaposed Border Control Post Construction Works 2 800

ADF/WAEMU Moussala Juxtaposed Border Control Post Construction Works 5 600

EDF Passy-Sokone Road Improvement 6 897

KFAED Touba-Dahra-Linguère Rehabilitation : Lot 2 - Dahra-linguére 9 253

KFAED Touba-Dahra-Linguère Rehabilitation : Lot1 Touba - Dahra (including the Dahra by-

pass) 14 789

KFAED Construction and Improvement Works on VDN section 3: Golf - Tivaouane Peulh

section including access road to Tivaouane Peulh village 32 000

Abu Dhabi Fund and

OPEC Rehabilitation of Ourossogui- HamdiOunaré N2 14 500

MCA RN6 Rehabilitation Works, Kounkandé-Vélingara section 6 500

MCA RN6 Rehabilitation Works, : Tanaff-Kolda Section 24 000

MCA RN6 Rehabilitation Works, Ziguinchor – Tanaff Section 45 000

EU Rosso Bridge

APPENDIX IV

VII

Map of Project Area

This map has been provided by the staff of the African Development Bank Group exclusively for the use of the readers

of the report to which it is attached. The names used and the borders shown do not imply on the part of the Bank Group

and its members any judgment concerning the legal status of the territory nor any approval or acceptance of these

borders.

APPENDIX V

VIII

ANNEXES: SUPPORT FOR REPORT’S KEY ARGUMENTS

A.1 Estimated Project Costs (Details)

Cost by component of entire project

COMPONENTS Million CFAF UA Million Million Euros

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

A – Rehabilitation and/or improvement of

roads and tracks

Rehabilitation of Sénoba- KP40 section including

4km of urban roads in Bounkiling (lot 1) 12 525.48 3 131.37 15 656.85 16.13 4.03 20.16 19.09 4.77 23.87

Rehabilitation of PK40 - PK 80 section including the 8 km of urban roads in Bignona (lot 2)

14 770.20 3 692.55 18 462.75 19.02 4.76 23.78 22.52 5.63 28.15

Rehabilitation of PK 80 - Ziguinchor – Mpack section including Tobor road pavements and the

parking area for heavy duty vehicles in

Ziguinchor (lot 3)

26 996.45 6 749.11 33 745.56 34.77 8.69 43.46 41.16 10.29 51.44

Improvement of KalounayesLoop 12 199.65 3 049.91 15 249.56 15.71 3.93 19.64 18.60 4.65 23.25

Rural access road improvements 4 000.00 1 000.00 5 000.00 5.15 1.29 6.44 6.10 1.52 7.62

Works control and supervision 3 524.59 881.15 4 405.74 4.54 1.13 5.67 5.37 1.34 6.72

Sensitisation on HIV/AIDS, social mobilisation

environmental protection, nutrition and road

safety

96.00 24.00 120.00 0.12 0.03 0.15 0.15 0.04 0.18

Clearing of rights-of-way (Expropriations) and

environmental monitoring 0.00 300.00 300.00 0.00 0.39 0.39 0.00 0.46 0.46

B – Integrated Activities 0.00 0.00 0.00

School and similar infrastructure 1 588.32 397.08 1 985.40 2.05 0.51 2.56 2.42 0.61 3.03

Urban infrastructure (motor parks commercial

infrastructure, waste management, etc.) 1 360.00 340.00 1 700.00 1.75 0.44 2.19 2.07 0.52 2.59

Support to women’s groups 1 200.00 300.00 1 500.00 1.55 0.39 1.93 1.83 0.46 2.29

Support to strengthening youth employability and to the reintegration of displaced persons as a

result of the armed rebellion

480.00 120.00 600.00 0.62 0.15 0.77 0.73 0.18 0.91

Studies on and control and supervision of related

works 207.42 51.85 259.27 0.27 0.07 0.33 0.32 0.08 0.40

Fragility assessment 48.00 12.00 60.00 0.06 0.02 0.08 0.07 0.02 0.09

C – Transport facilitation and road security 0.00 0.00 0.00

Support to OPA 96.00 24.00 120.00 0.12 0.03 0.15 0.15 0.04 0.18

Support to road safety 204.00 51.00 255.00 0.26 0.07 0.33 0.31 0.08 0.39

Portable axle-load scales 320.00 80.00 400.00 0.41 0.10 0.52 0.49 0.12 0.61

D- Project management

Monitoring and evaluation of project socio-

economic impact 90.00 90.00 180.00 0.12 0.12 0.23 0.14 0.14 0.27

Technical and road safety audit 65.00 65.00 130.00 0.08 0.08 0.17 0.10 0.10 0.20

Accounting and financial audit 40.00 40.00 80.00 0.05 0.05 0.10 0.06 0.06 0.12

Procurement audit 25.00 25.00 50.00 0.03 0.03 0.06 0.04 0.04 0.08

Communication 48.00 48.00 96.00 0.06 0.06 0.12 0.07 0.07 0.15

EA operation 0.00 336.92 336.92 0.00 0.43 0.43 0.00 0.51 0.51

Base cost 79 884.11 20 808.95 100 693.05 102.88 26.80 129.67 121.78 31.72 153.51

Physical contingency 7 988.41 2 080.89 10 069.31 10.29 2.68 12.97 12.18 3.17 15.35

Price escalation 859.65 223.93 1 083.58 1.11 0.29 1.40 1.31 0.34 1.65

TOTAL COST 88 732.16 23 113.77 111 845.93 114.27 29.77 144.04 135.27 35.24 170.51

APPENDIX V

IX

Cost by Category of Expenditure for the Entire Works

Categories

In million CFAF In million UA Ian million Euros

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

A – Works

Rehabilitation of the Sénoba-PK40 road including the urban roads, rural access roads, landscaping, support to road safety and support to

axle load control (LOT 1) 13 74748 3 43687 17 18435 1770 443 2213 2096 524 2620

Rehabilitation of the PK40 to KP80 road including the urban roads, rural access roads, landscaping, support to road safety and support to

axle load control (LOT 2) 15 91220 3 97805 19 89025 2049 512 2561 2426 606 3032

Rehabilitation of the PK80-Ziguinchor- Mack road including urban roads, rural access roads, landscaping (LOT3) 26 99645 6 74911 33 74556 3477 869 4346 4116 1029 5144

Improvement and asphalting of the Kalounayes loop including urban roads and rural access roads 14 35965 3 58991 17 94956 1849 462 2312 2189 547 2736

Social and commercial infrastructure including support to women 4 14832 1 03708 5 18540 534 134 668 632 158 791

Total Works 75 16410 18 79103 93 95513 9680 2420 12100 11459 2865 14323

B – Consulting services

Control and supervision of road, urban road and rural access roads works (LOT1) 67427 16857 84284 087 022 109 103 026 128

Control and supervision of road, urban road and rural access roads works LOT 2) 78251 19563 97814 101 025 126 119 030 149

Control and supervision of road, urban road and rural access roads works (LOT3) 1 34982 33746 1 68728 174 043 217 206 051 257

Control and supervision of Kalounayes Loop works 71798 17950 89748 092 023 116 109 027 137

Study and control and supervision of related works 20742 5185 25927 027 007 033 032 008 040

Sensitisation on HIV/AIDS, social mobilisation, environmental protection and to road safety 9600 2400 12000 012 003 015 015 004 018

Fragility assessment 4800 1200 6000 006 002 008 007 002 009

Youth employability and reintegration of people displaced by armed rebellion 48000 12000 60000 062 015 077 073 018 091

Monitoring and evaluation of project socio-economic impact 9000 9000 18000 012 012 023 014 014 027

Technical and road safety audit 6500 6500 13000 008 008 017 010 010 020

Accounting and financial audit 4000 4000 8000 005 005 010 006 006 012

Procurement audit 2500 2500 5000 003 003 006 004 004 008

Communication 4800 4800 9600 006 006 012 007 007 015

Total consulting services 462401 135700 598101 595 175 770 705 207 912

C- Others

Operation of Executing Agency 0.00 336.92 336.92 0.00 0.43 0.43 0.00 0.51 0.51

Clearing of rights-of-way and (expropriations) and monitoring of ESMP implementation by DEEC 0.00 300.00 300.00 0.00 0.39 0.39 0.00 0.46 0.46

Support to OPA 96.00 24.00 120.00 0.12 0.03 0.15 0.15 0.04 0.18

Total others 96.00 660.92 756.92 0.12 0.85 0.97 0.15 1.01 1.15

Base cost 79884.11 20808.95 100693.05 102.88 26.80 129.67 121.78 31.72 153.51

Physical contingencies 7 988.41 2 080.89 10 069.31 10.29 2.68 12.97 12.18 3.17 15.35

Financial contingencies 859.65 223.93 1 083.58 1.11 0.29 1.40 1.31 0.34 1.65

APPENDIX V

X

Total 88 732.16 23 113.77 111 845.93 114.27 29.77 144.04 135.27 35.24 170.51

Financing Plan for Project Expenditure Categories and Sources of Financing in MUA

Categories AfDB LOAN EU GRANT EIB LOAN GOV. SENEGAL Total

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

A - Works

Rehabilitation of the Sénoba-PK40 road including the urban

roads rural access roads landscaping support to road safety

and support to axle load control (LOT 1)

1158 289 1447 613 153 766 000 000 000 000 000 000 1770 443 2213

Rehabilitation of the PK40 to KP80 road including the urban

roads rural access roads landscaping support to road safety

and support to axle load control (LOT 2)

1327 332 1658 723 181 903 000 000 000 000 000 000 2049 512 2561

Rehabilitation of the PK80-Ziguinchor- Mpack road

including urban roads rural access roads landscaping (LOT3) 000 000 000 000 000 000 3477 869 4346 000 000 000 3477 869 4346

Improvement and asphalting of the Kalounayes Loop

including urban roads and rural access roads 1849 462 2312 000 000 000 000 000 000 000 000 000 1849 462 2312

Social and commercial infrastructure including support to

women 534 134 668 000 000 000 000 000 000 000 000 000 534 134 668

B – Consulting Services

Control and supervision of road urban road and track works

(LOT1) 006 002 008 081 020 101 000 000 000 000 087 022 109

Control and supervision of road urban road and rural access

road works LOT 2) 006 001 007 095 024 119 000 000 000 101 025 126

Control and supervision of road urban road and rural access

road works (LOT3) 000 000 000 000 000 174 043 217 174 043 217

Control and supervision of Kalounayes Loop works 092 023 116 000 000 000 000 000 000 000 000 000 092 023 116

Study and control and supervision of related works 027 007 033 000 000 000 000 000 000 000 000 000 027 007 033

Sensitisation on HIV/AIDS social mobilisation

environmental protection and to road safety 012 003 015 000 000 000 000 000 000 000 000 000 012 003 015

Fragility assessment 006 002 008 006 002 008

Youth employability and reintegration of people displaced by

armed rebellion 062 015 077 062 015 077

Monitoring and evaluation of project socio-economic impact 012 012 023 000 000 000 000 000 000 000 000 000 012 012 023

Technical and road safety audit 008 008 017 000 000 000 000 000 000 000 000 000 008 008 017

Accounting and financial audit 005 005 010 000 000 000 000 000 000 000 000 000 005 005 010

Procurement audit 003 003 006 000 000 000 000 000 000 000 000 000 003 003 006

Communication 000 000 000 006 006 012 000 000 000 000 000 000 006 006 012

C- Others

Operation of Executing Agency 000 043 043 000 000 000 000 000 000 000 000 000 000 043 043

Clearing of rights-of-way and (expropriations) and monitoring of

ESMP implementation by DEEC 000 000 000 000 000 000 000 000 000 000 039 039 000 039 039

Support to OPA 012 003 015 000 000 000 000 000 000 000 000 000 012 003 015

APPENDICE V

XI

A.2 Procurement Arrangements

The Different Procurement Methods and Contract Amounts in MUA are set out in the table below.

SPM Sénégal BMP

Not

financed by

the Bank

TOTAL

OCB LCB Others OCB LCB Others

WORKS

Rehabilitation of the Sénoba-PK40 road

including the urban roads rural access roads

landscaping support to road safety and

support to axle load control (LOT 1)

2458 [1607] 000 2458 [1607]

Rehabilitation of the PK40 to KP80 road

including the urban roads rural access roads

landscaping support to road safety and

support to axle load control (LOT 2)

2845 [1842] 000 2845 [1842]

Rehabilitation of the PK80-Ziguinchor-

Mpack road including urban roads rural

access roads landscaping (LOT3)

000 [000] 4827 4827 [000]

Improvement and asphalting of the

Kalounayes loop including urban roads and

rural access roads

2568 [2568] 000 2568 [2568]

Social and commercial infrastructure

including support to women 742 [742] 000 742 [742]

TOTAL 1 000 [000] 000 000 000 000 8613 [6759] 000 [000] 000 [000] 4827 13440 [6759]

SPM Sénégal BMP

Not

financed by

the Bank

TOTAL

QCBS LCS / CQS Others SBQC SMC / SQC Others

SERVICES

Control and supervision of road urban road

and rural access road works (LOT1) 121 [009] 000 121 [009]

Control and supervision of road urban road

and rural access road works LOT 2) 140 [008] 000 140 [008]

Control and supervision of road urban road

and rural access road works (LOT3) 000 [000] 241 241 [000]

Control and supervision of Kalounayes loop

works 128 [128] 000 128 [128]

Study and control and supervision of related

works 037 [037] 000 037 [037]

Sensitisation on HIV/AIDS social

mobilisation environmental protection and to

road safety

017 [017] 000 017 [017]

Fragility assessment 009 [009] 000 009 [009]

Youth employability and reintegration of

people displaced by armed rebellion 086 [086] 000 086 [086]

APPENDICE V

XII

Monitoring and evaluation of project socio-

economic impact 026 [026] 000 026 [026]

Technical and road safety audit 019 [019] 000 019 [019]

Accounting and financial audit 011 [011] 000 011 [011]

Procurement Audit 007 [007] 000 007 [007]

Communication 014 [000] 000 014 [000]

OTHER OPERATION 000 [000]

Operation of executing agency 048 [048] 000 048 [048]

Clearing of rights-of-way (expropriations)

and monitoring of ESMP implementation by

DEEC

000 [000] 043 043 [000]

Support to OPA 017 [017] 000 017 [017]

TOTAL 2 058 [044] 000 000 000 000 433 189 011 011 177 177 284 964 [422]

058 044 000 000 000 000 9046 6948 011 011 177 177 5111 14404 7180

Legends: Other* =Shopping among suppliers; Direct negotiation; Operating expenses;

Figures in [ ] are those financed by the Bank

APPENDICE VI

XIII

6.1 Financing Arrangements of the Africa Investment Facility (AfIF):

6.1.1 Introduction

On 12 July 2017 (Resolution B/BD/2017/124 - F/BD/2017/87), the framework for cooperation

between the European Commission (EC) and the Bank, called ‘the Pillar-assessed Grant or

Delegation Agreement’ (PAGODA)’ In this context, the Bank and European Commission on 5

December 2017 signed a Delegation Agreement for an amount of EUR 25.600 million relating to the

Project (including an amount of EUR 600,000 due to the Bank in respect of management and

administration costs). This Delegation agreement defines the activities entrusted to the Bank for project

implementation. It determines the implementation modalities, sets out the rules governing the payment

of the EU contribution and defines the relations between the Bank and EC. The resources thus mobilised

from the AfIF will be disbursed and managed by the Bank. See Annexes.

6.1.2 Co-financing of the AfIF

The AfIF resources approved on 24 February 2017 are not allocated. However, by way of indication,

they will contribute to the implementation of the following investment activities and with the following

specific social nature: (i) construction and equipping of juxtaposed border control posts at Mpack ; (ii)

improvement of urban roads and related rural access roads; (iii) rehabilitation of school and health

facilities; (iv) construction of urban infrastructure (motor park, waste management, commercial

equipment) ; (vi) support to women, young people and vulnerable people. The AfIF funds will also

contribute to the implementation of technical assistance activities and the following studies: (i) control

and supervision of related improvement works; (ii) studies on the design and operationality of

juxtaposed border control posts (JBCP); (iii) services for the control and supervision of JBCP; (iv)

training/sensitisation of border services and users v) harmonisation of the customs procedures of the

two countries; (vi) preparation of border control post procedures handbook.

Indicative breakdown of AfIF funding by component and by expenditure category is presented in the

following Tables (in EUR millions):

6.1.3 Estimated Cost

Estimated Project Costs by component (in EUR millions)

Components Amount

Rehabilitation and/or improvement of roads and rural access roads 20.00

Improvements and related measures 3/00

Transport facilitation and toad safety 2.00

Administrative and management costs 0.60

Total resources 25.60

Expenditure categories financed by the AfIF grant (in EUR millions)

Expenditure categories Amount

Works 21,95

Services 3.05

Total 25.00

APPENDICE VI

XIV

6.1.4 Implementation

To successfully implement the project activities financed by the AfIF grant, the Bank: (i) shall apply its

own accounting, internal control and audit procedures, which were positively rated during the prior

pillar assessment by the EC; and (ii) apply its own procedures, in particular its procurement procedures.

6.1.4.1 Financial management, disbursement and financial and accounting audit rules: the

applicable financial management, disbursement and financial and accounting audit rules will be those

stipulated in the PAGODA general conditions, the appraisal report and technical annexes.

6.1.4.2 Procurement Rules: There are plans to request the Boards of Directors to grant a waiver to

the Bank’s rule of origin, so that procurements of goods, works and services financed from the resources

of the AfIF grants are open to non-member countries. Also, arrangements for the procurement of goods,

services and works as set out in the appraisal report, the technical annexes and the procurement plan

will apply to the AfIF grant.

6.1.4.3 Legal Instruments: It should be pointed out that all obligations contracted by the Bank with

respect to the EC, both pursuant to the framework agreement concluded between the Bank and EC

approved by the Boards on 12 July 2017, and the PAGODA General Conditions and the delegation

agreement relating to the above-mentioned project and its annexes (concerning in particular financial

management, disbursement, financial and accounting audit, visibility or communication, etc.), will be

fully transferred for the Republic of Senegal. A grant agreement will be signed to that effect between

the Republic of Senegal and the Bank (‘Grant Agreement)’.

Conditions and Undertakings: the conditions precedent to effectiveness, first disbursement of

resources, the other conditions and undertakings set forth in the Grant Agreement will be identical to

the conditions and undertakings to be signed between the Republic of Senegal and AfDB.