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AFRICAN DEVELOPMENT FUND
UNION OF THE COMOROS
REHABILITATION OF THE ROAD NETWORK
PICU/PGCL DEPARTMENTS
January 2017
Translated Document
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TABLE OF CONTENTS
I. STRATEGIC THRUSTS AND RATIONALE OF THE PROJECT……………………… 1 1.1. Project Linkages with Country Strategy and Objectives ............................................................................. 1 1.2. Rationale for Bank Intervention ................................................................................................................... 1 1.3. Donor Coordination ..................................................................................................................................... 2
II. PROJECT DESCRIPTION ....................................................................................................... 3 2.1. Project Objectives and Components ............................................................................................................ 3
2.2. Technical Solutions Adopted and Alternatives Explored ............................................................................ 4
2.3. Project Type ................................................................................................................................................. 5
2.4. Project Cost Estimate and Financing Arrangements .................................................................................... 5
2.5. Project Area and Beneficiaries ..................................................................................................................... 7
2.6. Participatory Approach for Project Identification, Design and Implementation .......................................... 7
2.7. Bank Group Experience and Lessons Reflected in Project Design .............................................................. 8
2.8. Key Performance Indicators ........................................................................................................................ 9
III. PROJECT FEASIBILITY ....................................................................................................... 10 3.1. Economic Performance .............................................................................................................................. 10 3.2. Environmental and Social Impact .............................................................................................................. 10
IV. PROJECT IMPLEMENTATION AND MONITORING-EVALUATION ........................ 14 4.1 Implementation Arrangements ................................................................................................................... 14
4.2 Monitoring and Evaluation ........................................................................................................................ 16
4.3 Governance ................................................................................................................................................ 16
4.4 Sustainability ............................................................................................................................................. 17
4.5 Risk Management ...................................................................................................................................... 18
4.6 Knowledge Building .................................................................................................................................. 19
V. LEGAL INSTRUMENT .......................................................................................................... 19 5.1. Financing Instrument ................................................................................................................................. 19
5.2. Conditions for Bank Intervention .............................................................................................................. 19
5.2.1. Conditions precedent to grant effectiveness .............................................................................................. 19
5.2.2. Conditions precedent to the first disbursement of the grant ....................................................................... 19
5.2.3. Other Conditions ........................................................................................................................................ 19
5.2.4. Undertakings .............................................................................................................................................. 20
5.3. Compliance with Bank Policies ................................................................................................................. 20
VI. RECOMMENDATION ............................................................................................................ 20
ANNEX I: COMPARATIVE SOCIO-ECONOMC INDICATORS
ANNEX II: RATIONALE FOR LEVEL OF COUNTERPART CONTRIBUTION TO THE ADF
PROJECT FUNDING
ANNEX III: TABLE OF BANK OPERATIONS IN THE COMOROS AS AT 30 SEPTEMBER 2016
ANNEX IV: KEY RELATED PROJECTS FINANCED BY THE BANK OR OTHER
DEVELOPMENT PARTNERS IN THE COMOROS OVER THE PAST FIVE YEARS
APPENDIX V: MAP OF PROJECT IMPACT AREA
LIST OF TABLES AND GRAPHS
No. TITLE Page
Table 2.1: Project Components ........................................................................................................................................................................... 3
Table 2.2: Alternative solutions explored and reasons for rejection .................................................................................................................... 4
Table 2.3: Summary Cost Estimates by Project Component ............................................................................................................................... 5
Table 2.4: Summary Project Cost by Expenditure Category .............................................................................................................................. 5
Table 2.5: Summary Project Cost by Source of Financing……………………………………………………………………………………… 6
Table 2.6: Summary Project Cost by Component and by Source of Financing………………………………………………………………… 6
Table 2.7: Expenditure by Source of Financing (in UA million)……………………………………………………………………………….. 7
Table 3.1: Summary table of the assessment of the project’s rate of return....................................................................................................... 10
Table 4.1: Project Monitoring and Supervision ................................................................................................................................................. 16
Table 4.2: Risks and Mitigation Measures ........................................................................................................................................................ 18
i
Currency Equivalents August 2016
UA 1 = KMF
616.84
UA 1 = EUR
1.25
EUR
1
= KMF
491.97
Fiscal Year
1 January - 31 December
Weights and Measures
1 metric tonne = 2204 pounds
1 metre (m) = 3.28 feet
1 millimetre (mm) = 0.03937 inch
1 kilometre (Km) = 0.62 mile
1 hectare (ha) = 2.471 acres
ii
ACRONYMS AND ABBREVIATIONS
AAC Comorian Handicraft Association
AADT Annual Average Daily Traffic
ACVPF Comorian Association of Smoked Fish Vendors
ADF African Development Fund
AFECA Association for Emancipation and Empowerment of Comorian Women
ARP Abbreviated Resettlement Plan
ASIN Association of Midwives of the Island of Ngazidja
BDR Road Data Base
CGP General Commission for the Plan
CSP Country Strategy Paper
DGAC General Directorate of Comorian Handicrafts
DGEF General Directorate of the Environment and Forestry
DGRH General Directorate of Fisheries Resources
DGRTR General Directorate of Roads and Road Transport
EDF European Development Fund
ERR Economic Rate of Return
ESMP Environmental and Social Management Plan
ET/CD Exclusive of taxes and customs duties
EU European Union
EUR Euro
FD Final Design
FE Foreign Exchange
FNASFUC National Federation of Midwives Associations of the Union of the
Comoros
GDP Gross Domestic Product
GTS Sector Technical Group
HD Heavy Duty
ICT Information and Communication Technology
INSEED National Institute of Statistics and Economic and Demographic Studies
ISS Integrated Safeguards System
KMF Comorian Franc
LC Local Currency
LTS Long-Term Strategy of the Bank
LV Light Vehicle
MPEATU Ministry of Agriculture, Fisheries, Environment, Spatial Planning, and
Urban Development
NPV Net Present Value
PA Project Area
PDNTR National Road Transport Master Plan
PIU Project Implementation Unit
PK Kilometric Point
RN National Road
RNFD National Women and Development Network
SCA2D Accelerated Growth and Sustainable Development Strategy
SDP National Port Master Plan
TFP Technical and Financial Partner
UA Unit of Account
UNDP United Nations Development Programme
Veh/d Vehicles per day
iii
PROJECT INFORMATION SHEET
Client Information Sheet
Country : UNION OF THE COMOROS
Project Name : ROAD NETWORK REHABILITATION PROJECT
Location : ISLANDS OF GRANDE COMORE AND ANJOUAN
Donee : UNION OF THE COMOROS
Executing Agency : Ministry of Agriculture, Fisheries, Environment, Territorial
Development, Town Planning/General Directorate of Roads
and Road Transport
1. Financing Plan
Source Amount in KMF
Million
Amount in UA
Million
Amount in EUR
Million
Instrument
ADF 9 354.661 15.165 19.015 Grant
EU 7 379.516 11.964 15.000 Grant
TOTAL 16 734.177 27.129 34.015
2. Key Financial Information on the ADF Gant
Grant currency Unit of Account (UA)
Interest type Not applicable
Interest rate margin Not applicable
Service fee Not applicable
Commitment fee Not applicable
Administration charges Not applicable
Other fees Not applicable
Maturity Not applicable
ERR 19.9%
NPV KMF 13.44 billion
3. Timeframe – Key Milestones (expected)
Activities (Month, Year)
Concept Note approval 4 July 2016
Project approval 7 December 2016
Date of signature of the Grant Protocol Agreement (at the latest) 7 March 2017
Effectiveness 7 March 2017
Completion date 31 December 2020
Date of last disbursement of grant 31 December 2021
iv
EXECUTIVE SUMMARY
Project Overview
1. The poor quality of infrastructure, especially road infrastructure, and related services is one
of the major constraints on economic diversification in the Comoros. Indeed, economic activities in
the country focus mainly on agricultural and tertiary sectors. The improvement of the national road
network and, to a lesser extent, its extension, should contribute to the development of the tourism and
fisheries sectors which have been identified as another potential growth pole for the national
economy.
2. The components of this project are: (A) road works, comprising: (i) the rehabilitation of 47
km of road; (ii) protection against sea erosion; and (iv) raising the population’s awareness; (B) support
measures for women’s empowerment; (C) institution building, using procurement and institutional
reform specialists; and (D) support for project management and monitoring. The project will be
implemented from December 2016 to December 2020. The total project cost, exclusive of taxes and
customs duties (ET/CD), is estimated at UA 27.129 million. It will be entirely financed by ADF and
the EU, jointly for the road works sub-component and concurrently for the other components.
3. The project impact area (PIA) consists of the islands of Grande Comore and Anjouan, which
comprise 94% of the country’s total population of 755 680 inhabitants (2014), with 51% of them
being women. The project’s sector goal is to improve the quality of road infrastructure in order to
boost trade. Specifically, the project aims to improve: (i) the movement of goods and people; (ii) the
service level; and (iii) access to basic services and the living conditions of the population of the project
impact area.
Needs Assessment
4. In the Comoros, the major road investments made in the 1980s and 1990s were not followed
by regular maintenance. As a result, road sections in poor or very poor state account for 57.6% of the
total road length of the network and up to 67.9% of its priority component. It should be noted that the
priority network handles 90% of the transportation of people and goods in the Comoros. An analysis
of transport demand shows that this trend will likely continue over the next 15 years. The
rehabilitation of RN23 and RN2 roads by this operation will help to: (i) promote economic
diversification, particularly by promoting the development of tourism; (ii) boost agricultural
production by facilitating the supply of various inputs; (iii) foster the development of trade; and (iv)
improve the living conditions of the PIA population.
Bank’s Value Added
5. The Bank has contributed to the financing of many projects in the transport sector across the
entire African continent, especially in the road sub-sector. The relevant operational experience and
technical expertise gained from implementing these operations have been used in formulating this
project, and will again be used during the implementation phase.
Knowledge Management
6. The main lessons to be learned from this project will come from the monitoring system that
will be put in place to document its outcomes and impacts. This will include: (i) DGRTR monitoring
of the progress made by the various project activities; and (ii) analysis of the achievement level of the
targeted development objectives, to be conducted by INSEED. The reports produced following these
activities will be widely disseminated among the various stakeholders of this project.
v
RESSULTS-BASED LOGICAL FRAMEWORK
Country and Project Name: Comoros – Road Network Rehabilitation Project
Project Goal: Improve the flow of traffic and service level on the targeted road sections, as well as the living conditions of the population of the project impact area (PIA)
RESULTS CHAIN
PERFORMANCE INDICATORS MEANS OF
VERIFICATION
RISKS/
MITIGATION MEASURES Indicator
(including CSIs) Baseline Situation Target
IMP
AC
T
Contribution to economic growth by
developing transport infrastructure and increasing trade
1. GDP growth rate
2. Trade volume on project roads
In 2016:
1. 2.2% ;
2.1. 3 600 000 tonnes;
2.2. 9 000 000 travellers.
In 2021:
1. 4.5 %;
2.1. 4 900 000 tonnes;
2.2. 12 000 000 travellers.
Sources: INSEED
Reports Risks
(i) Delays in releasing the project's right-of-way;
(ii) Lack of maintenance resources;
(iii) Climate change effects which may cause
floods and erosion, particularly sea erosion, etc.
Mitigation measures
(i) The horizontal alignment of the roads to be
rehabilitated has been maintained for the most part to prevent the demolition of properties.
Furthermore, the Bank will bear the costs of
compensating the project affected persons.
(ii) The institutional support component of this
project will assist the Government to finalize
reflection on and establish a road agency, as well
as to adopt a priority network in line with the level
of resources available for road maintenance and
within the limits of the implementation capacities of the administration and local SMEs, and to
ensure that the Road Maintenance Fund (FER) is
replenished on a regular basis and that its resources are increased to cover all priority maintenance
needs by 2020.
(iii) The project provides for the construction of structures for protection against land erosion (tree
planting, and downcomers) and coastal erosion
(protective walls). Moreover, studies on the design of engineering and drainage structures will take
into account the peak flood periods and recurrent
cyclones in the area (20-to-100-year flood levels).
OU
TC
OM
ES
1. Traffic eased and movement of persons
improved in the PIA 1.1 Travel time on road sections covered
by the project
1.2 Annual average daily traffic (AADT)
In 2016:
1.1. 1.4 h on RN2; and 0.9 h on
RN23;
1.2. 3 639 veh/d on RN2; and
536 veh/d on RN23
In 2021:
1.1. 0.9 h on RN2; and 0.4 h
on RN23;
1.2. 4 845 veh/d on RN2; and
703 veh/ d on RN23.
Sources:
BDR/DGRTR and
INSEED Reports
2. Level of service improved on the
targeted road sections.
2.1 Vehicle operating costs 2.1. KMF 218 for heavy-duty
vehicles;
2.2. KMF 467 for light vehicles.
2.1. KMF 182 for heavy-duty
vehicles;
2.2. KMF 361 for light vehicles.
3. Living conditions of residents of the PIA
improved.
3.1. Number of direct and indirect jobs
created;
3.2. Income level per household;
3.3. Post-catch fish losses.
3.1. 0
3.2. 40%
3.3. 30%
2.3. 50 000 h/d of work
created (including 20%
for women);
2.4. 45.5%
2.5. 10%
vi
OU
TP
UT
S
1. Project roads rehabilitated; 1.1 Length of roads rehabilitated and protected against sea erosion.
In 2016:
0
In 2021:
47 km
Sources: BDR/DGRTR
Reports
Risks
(i) Escalation of the cost of works in comparison
to the budget estimate; and
(ii) Lengthy delays noted in the ongoing procurement process.
Mitigation measures
(i) The availability of detailed performance studies, a realistic estimate of costs, adequate
provision for price escalation, and measures taken
to ensure broad-based competition during the bidding process, including consolidation in a
single lot.
(ii) Technical assistance for training and
assistance to all stakeholders in the procurement
process.
2. Gender and economic empowerment of women achieved;
2.1. Number of premises rehabilitated and equipped;
2.2. Number of women trained in the
management of commercial activities.
2.3. Number of lots of material and
equipment for women’s associations;
2.4. Number of cold storage chains set up;
2.5. Number of young people who
benefited from capacity building
2.1. 0;
2.2. 0 ;
2.3. 0;
2.4. 0;
2.5. 0.
2.1. 10;
2.2. 500;
2.3. 12;
2.4. 3;
2.5. 12.
3. Capacities built 3.1 Number of persons trained in
procurement; 3.2 Number of young engineers
provided further training
3.1. 0
3.2. 0
3.1. 20;
3.2. 12.
4. Support for project management and
coordination
4.1. Number of quarterly progress
reports;
4.2. Number. of monitoring-evaluation
reports;
4.3. Number of annual project accounts audit report.
4.1. 0;
4.2. 0;
4.3. 0
4.1. 8;
4.2. 3;
4.3 3.
AC
TIV
ITÉ
S
CL
ÉS
COMPONENTS RESOURCES (UA MILLION)
1. Road works:
2. Support for women’s financial empowerment in the project impact area (PIA);
3. Institutional support; 4. Project management and coordination.
1. Road works : 23.097
2. Support for women’s financial empowerment in the PIA : 0.832
3. Institutional support : 2.296 4. Project management and coordination : 0.904
TOTAL RESOURCES : 27.129
vii
INDICATIVE PROJECT IMPLEMENTATION SCHEDULE
Jan Feb Mar Apr May June July Aug Sept Oct Nov Dec Jan Feb Mar Apr May June July Aug Sept Oct Nov Dec Jan Feb Mar Apr May June July Aug Sept Oct Nov Dec Jan Feb Mar Apr May June July Aug Sept Oct Nov Dec Jan Feb Mar Apr May June July Aug Sept Oct Nov Dec
1. Project approval and grant effectiveness
1.1. Board approval of project
1.2. Signing of grant agreement
1.3. Effectiveness of grant agreements
2. Launch of general bid invitations
3. Road works
A. Procurement
B. Works implementation
4. Works control and supervision
A. Contracting
B. Contract performance
5. Activities for women’s financial empowerment
6. Awareness-raising
A. Contracting
B. Contract performance
7. Development of the procedures manual
A. Contracting
B. Contract performance
8. Provision of experts and contracting
A. Contracting
B. Contract performance
9. Project impact monitoring and evaluation
A. Contracting
B. Contract performance
10. Project accounts audit
A. Contracting
B. Contract performance
2020
INDICATIVE PROJECT IMPLEMENTATION SCHEDULE
Activities2016 2017 2018 2019
1
REPORT AND RECOMMENDATION BY MANAGEMENT TO THE BOARD
OF DIRECTORS CONCERNIG A PROPOSED ADF GRANT TO THE UNION OF
THE COMOROS TO FINANCE THE ROAD NETWORK REHABILITATION
PROJECT
Management hereby submits this report and recommendation concerning a proposed ADF grant
of UA 15.165 million to the Union of the Comoros to finance the Road Network Rehabilitation
Project.
I. STRATEGIC THRUSTS AND RATIONALE OF THE PROJECT
1.1. Project Linkages with Country Strategy and Objectives
1.1.1. This project is in line with the priorities defined in the Accelerated Growth and
Sustainable Development Strategy (SCA2D), particularly with its Focus Area 2 “Development
of growth support infrastructure”. This strategy, which was adopted by the Comorian
Government in December 2014, is the baseline framework of the economic and social policy
for the 2015-2019 period, and the interventions of technical and financial partners in the
Comoros. SCA2D’s strategic goal is to “lay and strengthen the foundations for the future
emergence of the Comoros”. It is built on the following focus areas: (i) Growth acceleration,
diversification and sustainability; (ii) Development of growth support infrastructure; (iii)
Strengthening of access to basic social services and household resilience; (iv) Strengthening of
governance and institutional/human resilience capacities. It is consistent with the focus areas of
the Bank’s Country Strategy Paper (CSP) for 2016-2020 in the Comoros.
1.1.2. The project is consistent with the Comorian national transport sector policy for 2030,
which aims to “improve and modernize transport infrastructure so as to provide better service
to users at the lowest possible cost, as well as develop trade and tourism within the Union, and
promote regional integration.” This policy is based on: (i) institution building for all modes of
transport; (ii) development of all transport sub-sectors (road, air and sea), as well as
implementation of consistent policies; (iii) environmental protection; and (iv) human resource
management. The project is also in line with the first of the four pillars of the country's National
Road Transport Master Plan (PDNTR) for the 2015-2025 period, namely: (i) safeguard and
rehabilitate the road infrastructure; (ii) ensure maintenance of the priority road network; (iii)
improve passenger and freight transport systems; and (iv) develop rural transport.
1.2. Rationale for Bank Intervention
1.2.1. The Bank’s intervention under this project is justified by the fact that the project is in
line with the single pillar of the Bank’s Country Strategy Paper (CSP) 2016-2020 for the
Comoros, namely: “Development of basic energy infrastructure to support economic
diversification”. Indeed, this operation is consistent with the Bank’s determination to help the
Comoros meet its development aspirations of achieving more diversified job-creating economic
growth that is more resilient to external shocks, particularly through private sector development.
However, the current state of the country’s infrastructure, especially in the road sector, and the
governance of the transport sector - characterized by the frequent tendency to use the direct
agreement method for procurement - are obstacles to the attainment of this goal.
2
1.2.2. The PDNTR inventory of all paved roads reveals that, over the past 10 years, there has
been considerable degradation of the road network, especially the national roads (RN). Updates
on the said network show that sections in a poor or very poor condition account for 57.6% of
the total network. Similarly, an analysis of transport demand shows that the roads under this
project, namely National Road No. 2 (RN2) on the island of Grande Comore and National Road
No. 23 (RN23) on the island of Anjouan, are among those on which traffic would be heaviest.
Indeed, these roads will open up areas with high tourism potential and link major agricultural
production areas to consumer zones, as well as such import and export areas as the ports. The
project will thus address one of the key challenges in its impact area (PIA), namely the poor
road condition. This difficulty severely hampers economic diversification, particularly by
limiting the development of tourism as well as the evacuation of agricultural products and
supply of inputs and other basic commodities.
1.2.3. By helping to improve the quality of services and reduce the cost of transport, this
project will facilitate equitable access by the project area population to reliable road transport
and basic social infrastructure. The project will also improve their incomes by helping to
increase and develop production that would stem from trade facilitation. Similarly, the
structures were designed to address and prevent the effects of climate change. These include
structures meant to protect the roads against sea and other forms of erosion, as well as hydraulic
and drainage engineering structures that were designed bearing in mind 100-year storm events.
The project thus contributes to the country’s green and inclusive growth objectives.
Furthermore, the project is consistent with the Bank’s guidelines on infrastructure development,
as defined in the Long-Term Strategy (LTS) for the 2013-2020 period, especially by
contributing to the implementation of the second of the following “High-Five” operational
priorities of the institution: (i) Light up Africa; (ii) Feed Africa; (iii) Industrialize Africa; (iv)
Integrate Africa; and (v) Improve the quality of life for the people of Africa.
1.3. Donor Coordination
1.3.1. In the Comoros, the formal framework for the coordination and management of
operations sponsored by technical and financial partners (TFPs) was set up by Presidential
Decree of 23 May 2009. This instrument establishes an institutional mechanism comprising: (i)
the Strategic Committee, an enlarged extraordinary Council of Ministers chaired by the
President of the Union; (ii) the Technical Steering Committee, a broad-based body composed
of partners, authorities of the autonomous islands, civil society, young people and the private
sector; and (iii) Technical Sector Groups (GTS). The General Commission of the Plan (CGP)
is responsible for coordinating this mechanism for which it provides secretariat services.
1.3.2. The Technical Sector Group (GTS) - comprising the road, ports, air transport and ICT
sub-sectors – is currently chaired by the European Union (EU). The EU is the main TFP active
in the sector and is involved in the following sub-sectors: (i) road, particularly road
rehabilitation and maintenance, sector reforms, rehabilitation and development of the National
Road Transport Master Plan (PDNTR); and (ii) maritime transport, through the development of
the Port Master Plan (SDP). Saudi Arabia, through the Saudi Development Fund, recently
funded an operation in road infrastructure development. In this regard, in 2015, it signed an
agreement with the Comoros to finance the rehabilitation of two road sections and the
construction of another.
3
II. PROJECT DESCRIPTION
2.1. Project Objectives and Components
2.1.1. The project's sector goal is to improve the quality of infrastructure on RN2 and RN23
so as to boost trade on these roads, thereby contributing to economic growth. Regarding its
specific objective, the project aims to improve: (i) traffic flow and the movement of people in
the PIA; (ii) the level of service on the RN2 and RN23 roads; and (iii) access to basic services
and the living conditions of the PIA population.
2.1.2. To achieve the above objectives, this project is centred on the following four
components: (i) road works; (ii) support for women's empowerment in the PIA; (iii) institutional
support; and (iv) project management.
Table 2.1: Project Components
No. Component Name Cost Detailed Description of Sub-Components
A. Road works UA 23.097
million
A.1. Works on: (i) the rehabilitation of about 47 km of roads
(20.5 km of RN2 in Grande Comore and 26.5 km of RN23 in
Anjouan); (ii) protection of the coastline against sea erosion;
(iii) development of parking areas along the road; (iv) public
awareness of STIs and other pandemics, food hygiene,
environmental protection and road safety in the project impact
area; (v) compensation of project affected persons; and
A.2. Works control and supervision.
B.
Support for
women’s
empowerment in
the PIA
UA 0.832
million
B.1. Rehabilitation and equipment of socio-economic
infrastructure: (i) rehabilitation of AFECA - a local women's
association engaged in waste recycling (rehabilitation of
latrines, supply of solar kit and tables and chairs); (ii) support
for women’s association involved in fish smoking (supply of
ovens, tables, and solar-powered freezers, rehabilitation of
premises and latrines); (iii) support for women's organizations
involved in post-catch fish-handling activities on Chindini and
Bangoi sites (rehabilitation and equipment of local
conservation premises, a multi-purpose building, supply of
coolers and a solar lighting system); and (iv) a multipurpose
center for women in Anjouan
B.2. Capacity building in the management of community
activities; and
B.3. Monitoring of support activities for women's groups.
C. Institutional
support
UA 2.296
million
C.1. Capacity building for the executing agency and public
procurement regulatory agency in procurement; and
C.2. Consolidation of institutional reforms initiated under the
10th EDF
D. Project
management
UA 0.904
million
D.1. Operating costs of the project management unit;
D.2. Communication/visibility;
D.3. Monitoring and evaluation of the project’s socio-
economic impact;
D.4. Financial and accounting audit; and
D.5. Ex-post project evaluation.
4
- Creation of youth employment: A dozen (12) young engineers/technicians, newly
out of school, will be hired by the design firm responsible for works control and
supervision, and by the company selected for the road works, in efforts to improve
their employability (see detail in paragraph 3.2.12 of this report).
- Consolidation of institutional reforms initiated under 10th EDF: This sub-
component focuses on building the capacity of the General Directorate of Roads and
Road Transport (DGRTR) by providing it with experts to consolidate institutional
reforms initiated under 10th EDF. The reforms are designed to enable DGRTR to plan
and manage public works in a more effective and transparent manner, improve road
safety and axle load control, provide the country with a regulatory framework that is
conducive to the emergence of road transport enterprises, and ensure regular and
automatic replenishment of the Road Maintenance Fund (FER).
2.2. Technical Solutions Adopted and Alternatives Explored
2.2.1. Technical and economic feasibility studies, as well as documents on the preliminary
design were examined in order to ensure sustainability of the works to be carried out. The
technical design of the works complies with internationally recognized standards. Overall, the
geometric layout of existing roads has been maintained, albeit with slight improvements in
some places to bring them up to the requisite safety standards, given the mountainous nature of
the project area, especially on the RN23 road. The adopted solution will comprise a road bed
on which the road will be reconstructed: on RN2, a 7-m wide carriageway in the semi-urban
area of Moroni (PK0 to the PK11) and a 6-m wide carriageway beyond this point; on RN23, a
5.5- m wide carriageway. The road bed will also comprise two shoulders each 1-m wide. The
pavement structure will consist of: 1. on RN2 - (i) a base course with an average thickness of
20 cm of pozzolan in the enlargement area; (ii) a base course of crushed gravel with a thickness
of 15 to 20 cm; and (iii) a 5-cm thick layer of bituminous concrete (BB). 2. on RN23 - (i) a base
course with an average thickness of 20 cm of pozzolan in the enlargement area; (ii) a 20-cm
thick base course of pozzolan; and (iii) a double-layer surface coating. The shoulders will have
a single-layer surface coating.
2.2.2. The table below presents the alternatives to road rehabilitation explored and reasons
for rejection.
Table 2.2: Alternative solutions explored and reasons for rejection
Alternative Solution Brief Description Reason for Rejection
Solution No. 1: a
5.5 m-wide
carriageway
This consists in constructing
a 5.5-m wide carriageway for
RN2
- High cost due to the increase in the thickness of the
pavement layers, which include the surfacing of the
carriageways, in view of the huge estimated traffic in
Moroni semi-urban area;
- Risk of persistent traffic congestion and accidents.
Solution No. 2: a
base course of
bituminous gravel
This solution consists in
constructing a base course
made of bituminous gravel
instead of crushed gravel
The base course in crushed gravel and that in bituminous
gravel are both technically acceptable. However, the
bituminous gravel solution is less economical mainly
because of the high cost of initial investment (it is more
expensive to prepare bituminous gravel and bitumen).
5
2.3. Project Type
This project is an investment operation. It is the most appropriate financing instrument for the
Bank’s intervention in this operation.
2.4. Project Cost Estimate and Financing Arrangements
2.4.1. The total project cost, exclusive of taxes and customs duties, amounts to UA 27.129
million, equivalent to KMF 16 734 million. The provision for physical contingencies represents
5% of the total base cost, while the provision for financial contingencies is equivalent to 3.76%
of the base cost and provision for physical contingencies. This cost was established based on
the final project design prepared in August 2016 and on recent similar contracts. The project
cost estimates by component is detailed in Technical Annex B.2. The summary of the cost
estimates by project component is presented in Tables 2.3 below.
Table 2.3: Summary Cost Estimates by Project Component
COMPONENTS KMF Million UA Million EUR Million
FE LC Total FC LC Total FE LC Total
1. Road works 10 197 2 880 13 077 16,531 4,670 21,200 20,727 5,855 26,58
2.
Support for women’s
financial
empowerment in the PIA
24 448 471 0.038 0.726 0.764 0.048 0.910 0.958
3. Institutional support 1 300 - 1 300 2.108 - 2.108 2.643 - 2.643
4. Project management 240 272 512 0.388 0.441 0.830 0.487 0.553 1.040
Base cost 11 760 3 600 15 360 19.065 5.836 24.901 23.904 7.318 31.222
Physical contingencies 588 180 768 0.953 0.292 1.245 1.195 0.366 1.561
Financial contingencies 464 142 606 0.752 0.230 0.982 0.943 0.289 1.231
Total cost ET/CD 12 812 3 922 16 734 20.770 6.358 27.129 26.042 7.972 34.015
2.4.2. The summary of cost estimates by expenditure category is presented in Table 2.4
below.
Tabl 2.4: Summary Project Cost by Expenditure Category
CATEGORIES DE
EXPENDITURE
KMF Million UA Million EUR Million
FE LC Total FE LC Total FE LC Total
1. Works 10 643 2 661 13 304 17.254 4.314 21.568 21.634 5.409 27.043
2. Goods - 52 52 - 0.084 0.084 - 0.105 0.105
3. Services 2 169 808 2 977 3.516 1.310 4.826 4.408 1.643 6.051
4. Operating cost - 183 183 - 0.297 0.297 - 0.373 0.373
5. Miscellaneous - 218 218 - 0.353 0.353 - 0.443 0.443
Total cost ET/CD 12 812 3 922 16 734 20.770 6.358 27.129 26.042 7.972 34.015
6
Financing Arrangements
2.4.3. The project will be financed in accordance with the forward plan below, by: (i) the
Bank, through an ADF grant of UA 15.165 million (KMF 9 355 million), or 55.90% of the total
project cost ET/CD; and (ii) the EU through a grant amounting to EUR 15 million (KMF 7 380
million), representing 44.10% of the total project cost. The road works sub-component of the
project will be jointly financed by the ADF and EU, while the other components will be
financed on a parallel basis. It is worth mentioning that financing from the EU is already
approved under the 11th EDF.
2.4.4. The Comorian Government will not contribute to the project financing. In this regard,
an explanatory note has been attached to this report (Annex II). The project financing plans by
component and by source are presented in tables 2.5 and 2 respectively 6 below. Detailed plans
of the project financing by component and by expenditure category are presented in the
Technical Annex B.2.
Table 2.5: Summary of Project Cost by Source of Financing
Source
financing
KMF Million UA Million EUR Million
Percentage
FE LC Total FE LC Total FE LC Total
ADF 7 162 2 193 9 355 11.611 3.554 15.165 14.558 4.457 19.015 55.90%
EU 5 650 1 730 7 380 9.159 2.804 11.963 11.484 3.516 15.000 44.10%
Total 12 812 3 922 16 734 20.770 6.358 27.129 26.042 7.972 34.015 100%
Table 2.6: Summary of Project Cost by Component and by Source of Financing (UA million)
Components
ADF EU
FE LC Total FE LC Total
TOTAL
Total
1. Road works 9.771 2.760 12.531 6.760 1.910 8.669 21.200
2. Support for women’s empowerment in the project area
0.038 0.726 0.764 - - - 0.764
3. Institutional support 0.115 - 0.115 1.993 - 1.993 2.108
4. Project management and
monitoring
0.239 0.271 0.511 0.149 0.170 0.319 0.830
Total base cost 10.163 3.757 13.920 8.902 2.079 10.981 24,901
Physical contingencies 0.533 0.163 0.696 0.420 0.129 0.549 1.245
Financial contingencies 0.420 0.129 0.549 0.332 0.102 0.433 0.982
Total ET/CD 11.116 4.049 15.165 9.654 2.309 11.963 27.129
Expenditure Schedule
2.4.5. The expenditure schedule by source of financing is presented in the table below, and
the table relating to expenditure by component is detailed in Technical Annex B.2.
7
Table 2.7: Expenditure by Source of Financing (in UA million)
SOURCE 2017 2018 2019 2020 Total
ADF 2.115 5.314 6.343 1.394 15.165
EU 1.690 4.051 4.996 1.227 11.963
Total cost ET/CD 3.805 9.365 11.338 2.621 27.129
% of total cost 14.03% 34.52% 41.79% 9.66% 100.00%
2.5. Project Area and Beneficiaries
2.5.1. The project impact area (PIA) comprises the communities crossed by the two
highways: (i) RN2 on Grande Comore Island (1 148 km²) of a length of 47.5 km; and (ii) RN23,
26.5 km long on the island of Anjouan (424 km2). Consequently, the extended project impact
area covers these two islands of the Union of the Comoros. Indeed, the immediate PIA
comprises the communities crossed by RN2 and RN23 (see in Annex the list of villages
crossed). National road 2 (RN2) is a coastal road linking Moroni to Foumbouni, and crosses
several major built-up areas, including Mdé, Vouvouni, Mitsoudjé, Singani, Dzahadjou,
Ifoundihé, Chindini, Ourovéni, Malé and Foumbouni. It is also the only access road to the towns
of Ikoni, Mouandzaza Ambouani, Salimani, Djoumouachongo, Chouani, Bangoua and
Mdjoyézi. These administrative areas are part of three of the eight prefectures of Grande
Comore. The RN23 section concerned is that between Sima and Moya. It runs through the
towns of Sima (regional capital of West Anjouan), Maraharé, Vassi, Dar Salam Pomoni and
Moya. It is also the only access road to Dzindri and Lingoni.
2.5.2. These two islands are home to 94% of the total population of the Comoros. Indeed,
according to the study conducted by INSEED (September 2015) on poverty and household
consumption in the Union of the Comoros, the total population was estimated at 755 680
inhabitants in 2014, distributed as follows: Ngazidja: 52% of the total population, and Ndzouani
and Mwali 42% and 6% respectively. Women represent 51% of the total population. The direct
beneficiaries of this project are therefore the PIA population in general and, in particular, road
users, women’s associations that will be supported, beneficiaries of capacity building activities,
businesses and various service providers who will be mobilized.
2.6. Participatory Approach for Project Identification, Design and
Implementation
2.6.1. Participation of the various stakeholders was a cause for concern at the different stages
of preparation of this project. That is why, during the preparation and appraisal mission phases,
several working meetings were held with: (i) technical departments of the relevant Ministries, in
particular, the General Directorate of Highways and Transport (DGRTR), the General Directorate
of Fishery Resources (DGHR), the General Directorate of Comorian Handicraft (DGAC), and the
National Institute of Statistics and Economic and Demographic Studies (INSEED); (ii) leaders of
women's organizations and associations, in particular, the National Federation of Midwives
Associations of the Union of the Comoros (FNASFUC), the Association of Midwives of Ngazidja
Island (ASIN), the Comorian Handicraft Association (AAFC), the Comorian Association of
Smoked Fish Vendors (ACVPF), the Association for Emancipation and Empowerment of
Comorian Women (AFECA), and the National Women and Development Network (RNFD); and
(iii) TFPs in the Comoros (particularly EU and United Nations Development Programme (UNDP).
2.6.2. The meetings made it possible not only to discuss the merits of the project, but also, and
above all, to examine the related developments (actions for women) that could be carried out in
addition to the rehabilitation of RN2 and RN23. It should be noted that the mission team visited
the two roads concerned and held participatory sessions with the people of Chindini and Bangoi.
During the implementation of this project, the various social partners and key players will be
8
involved. All stakeholders of the project will be represented on the Project Steering Committee,
which will be responsible for coordinating the project implementation. It will ensure effective
implementation of all project components in accordance with the initial formulation. Furthermore,
people living in the immediate vicinity of the project will also be consulted during: (i)
compensation operations precedent to taking possession of the land affected by the project; and
(ii) the conduct of project implementation studies by the contractor.
2.7. Bank Group Experience and Lessons Reflected in Project Design
2.7.1. As at end-August 2016, the Bank's portfolio in the Comoros comprised four (4)
national operations for a total net commitment of UA 22.005 million, presenting an increase of
more than 19.85% in terms volume compared with 2011. The Bank's operations mainly cover
the energy sector: 69.90% and the multi-sector (support for reforms and capacity building):
30.10%. The Bank's operations have enabled the Government to adopt a series of important
macro-economic and sector reforms. Implementation of ongoing projects was deemed
satisfactory overall by the last portfolio performance review conducted in June 2015, with an
overall rating of 2.38 (on a scale of 0 to 3). There are currently no problem projects or potential
problem projects in the portfolio. Furthermore, it should be noted that this portfolio does not
have any ongoing transport sector project.
2.7.2. The main lessons learned from the implementation of the Bank's operations in the
Comoros are: (i) ensure high quality of projects at entry; (ii) ensure that projects are
implemented in accordance with the established schedule, particularly by adopting measures to
avoid delays in the procurement process and accelerate disbursements; (iii) effectively assess
the impact of the Bank's operations on the development of the country by providing for a project
impact monitoring and evaluation component; and (iv) strengthen aid coordination and
communication with the Government and TFPs. Over the past five years, the EU has been the
main TFP involved in the transport sector. Additional lessons learned from this collaboration
may be summarized as follows: (i) the need to build the human and material capacity of the
administration; (ii) the need to develop skills and local small and medium-sized enterprises;
(iii) the need for optimal works allocation to create more competition; and (iv) the need to limit
the Comorian Government's counterpart contribution to the bare minimum and minimize the
impact of project implementation on private land.
2.7.3. The operational experience and technical expertise acquired by the Bank and EU from
the implementation of operations in the Comoros in general, and by the Bank from similar
projects across the continent, in particular, were used in formulating this project. It is, of course,
understood that the experience and expertise will also be used during the project
implementation phase. Thus, to ensure good quality of project data at entry, the Bank and EU
teams cooperated to conduct project preparatory studies of high quality. Hence, the project
preparatory and appraisal missions benefitted from the availability of the provisional versions
of the feasibility and detailed studies. Similarly, the review of these studies with the Comorian
administration and the consultant's office was one of the main activities of the above-mentioned
missions.
2.7.4. To mitigate the consequences of non-compliance with the project implementation
schedule, the following arrangements have been made: (i) the EU will delegate to the Bank the
management of its funding for the road works, the biggest contract. To that end, the Bank's no-
objection opinion alone will suffice for procurements and disbursements; (ii) the preparation of
procurement documents, in accordance with the Bank's requirements, is part of the activities of
the office tasked with the conduct of the studies. These documents, reviewed by the Bank team
as they are established, should be finalized by end-September 2016; (iii) a team entirely devoted
to monitoring the implementation of project activities will be set up within the executing
agency.
9
2.7.5. This team and national administrative services in charge of public procurement control
and regulation will be supported under the project in an effort to build their operational
capacities. It should also be noted that the office responsible for technical studies will remain
in place and will support the DGRTR throughout the road works-related procurement process.
Similarly, the project monitoring team will be assisted in all aspects of its tasks by individual
consultants, as well as by a control and supervision mission to be recruited under the project.
Furthermore, given the lack of standardization of regulations governing land management in
the Comoros, land acquisition and population displacement have been minimized as much as
possible under this project, and costs relating to the compensation of project affected persons
will be settled from the AfDB grant. Thus, no contribution will be required from the Comorian
Government in light of the current State budget constraints.
2.8. Key Performance Indicators
2.8.1. In accordance with the components and activities envisaged for this project, the
following major achievements are expected: (i) 10 premises rehabilitated and equipped; (ii) 500
women trained in the management of commercial activities; (iii) 12 lots of material and
equipment for women's associations provided; (iv) three cold storage chains set up; (v) 47 km
of road rehabilitated and approximately 5 km of coastline protected against sea erosion; (vi)
about 20 government officers trained in procurement; (vii) 12 young engineers offered refresher
training in the design and construction of engineering structures, as well as the control and
monitoring of road works.
2.8.2. To assess the level of achievement of the project’s main development objectives, the
following outcome indicators will be monitored: (i) travel-time savings on the two road sections
covered by the project; (ii) changes in passenger and goods traffic levels caused by the project;
(iii) level of direct and indirect job creation by gender; (v) gains in vehicle operating costs; (vi)
changes in income levels by household and by gender; and (vii) changes in post-catch fish
losses.
2.8.3. To ensure that the operations are implemented within the specified deadlines, besides
the outcome and impact indicators, performance indicators have been established in relation to
the Bank's institutional performance indicators. These include: (i) the timeframes for signing
the loan agreement; (ii) procurement deadlines; (iii) the average project status indicator (PI);
and (iv) changes in the disbursement rate in accordance with the expenditure schedule. These
indicators will be monitored during supervision missions and in the day-to-day management of
the project.
10
III. PROJECT FEASIBILITY
3.1. Economic Performance
3.1.1. The economic performance of the investments to be made was analysed for the two
road sections (RN2 and RN23). The economic assessment was conducted using the HDM IV
model, based on the cost-benefit analysis of the “without” and “with” project situations over a
20-year period and a 12% discount rate. To reflect the spectrum of the origins and destinations
of vehicles using the two sections, the roads were split into four homogeneous traffic sections:
Moroni-Mitsoudjé, Mitsoudjé-Panda, Panda-Foumbouni and Sima-Moya. Vehicle operating
cost calculations were based on average input prices recorded in Grande Comore and Anjouan
in recent years. As a result of the development levels adopted, the average residual value of the
investment at the end of that period stands at 20%. The available traffic data date from March
2016, when the feasibility study was conducted. The information collected thus makes it
possible to have a good knowledge of the current traffic on both roads.
3.1.2. The roads and their related structures are therefore expected to be commissioned in
2021. By that year, the total traffic will consist of normal traffic resulting from the annual
growth of the current traffic and traffic brought about by the increased level of economic
activities. Since there are no competing alternative routes to the road sections covered by the
project, no traffic diversion was envisaged. On the RN2, normal traffic will grow at an annual
rate of 2% for light vehicles and 1.5% for heavy-duty vehicles, while on the RN23, the annual
growth rate will be 5.5% for light vehicles and 4.5% for heavy-duty vehicles.
3.1.3. Taking into account the vehicle operating costs in situations of “without” and “with
the project”, the induced traffic is estimated, on average, at 15% of the normal traffic on RN2
and at 12.5% of that on RN23. The expected annual growth rate is 1.5% for all categories of
vehicles and for both roads. This is compatible with the country's economic growth. On the
basis of the above assessment, total traffic in the year of commissioning of the road should
average 4 845 veh/d on RN2 and 703 veh/d on RN23. The economic analysis resulting from
the operation of these roads during the period covered by the study (2021-2040) points to a
consolidated economic rate of return (ERR) of 19.9% for the entire project and a consolidated
NPV of KMF 13.44 billion. A sensitivity test (10% increase in project cost and 10% decrease
in benefits) shows that the project's ERR stands at 17.9%. The project is therefore economically
sustainable for the community.
Table 3.1: Summary table of the assessment of the project’s rate of return
Economic Parameters Analysed Values Obtained
Economic Rate of Return (ERR) 19.9%
Net Present Value (NPV) in KMF billion 13.44
ERR sensitivity test (+10% of costs and – 10% benefits) 17.9%
Discount Rate 12%
3.2. Environmental and Social Impact
Environment
3.2.1. The project has been classified in Environmental Category 2, in accordance with the
requirements of the Bank’s Integrated Safeguards System. The Environmental and Social
Management Plan (ESMP) is accompanied by an Abbreviated Resettlement Plan (ARP). They
were updated in June 2016 and are in compliance with the requirements of the Bank’s Integrated
Safeguards System (ISS) of 2014, as well as with those the safeguards system of the Union of
the Comoros. The environmental and social impact assessment identified the environmental
and social risks and impacts, and defined measures that should be taken to avert, mitigate and
11
offset them. Summaries of the ESMP and ARP were posted on the Bank’s Website on October
29, 2016.
3.2.2. The main positive impacts concern: (i) reduction of land erosion on very steep slopes
by building retaining walls that are properly drained and draining the RN2 and RN23 roads; (ii)
sustainability of the roads through coastal protection, which will also contribute to seafront
building construction and seaside vegetation growth, as well as to climate change resilience;
(iii) creation of temporary jobs for the duration of the project. It is expected that the project will
facilitate travel on these islands and have such social repercussions as improvement of access
to social centres (schools, dispensaries, Government services, markets, etc.).
3.2.3. The adverse impacts which the project may have on the physical environment relate
to: (i) water quality, which may be altered, though not significantly. The generated impacts will
be felt during the construction of drainage structures (drainage), their crossing extensions, as
well as multicellular structures used to replace ford crossings; (ii) emission of dust and exhaust
fumes will inconvenience residents of the area, but this will be of limited scope and short-lived.
Furthermore, the works do not pose any major uncontrollable risks. The main risks concern the
floods and road cuts to which the Union of the Comoros is prone.
3.2.4. Regarding the biological environment, no site of interest will be affected by the
project. Nonetheless, the RN2 route in Grande Comore is located almost five kilometres
downstream of Karthala protected area and the future Cœlacanthe marine area whose
classification is in the pipeline. These sites are already impacted by the right-of-way of the
existing road. In addition, the project will, within the limits of the existing road-width, build a
new pavement structure that is more durable and has greater load-bearing capacity than the
existing one. The quarries and campsites have all been identified.
3.2.5. With respect to the human environment, the project will to adapt to available widths
where the road crosses built-up areas. These widths range, on average, from 5.5 m to 7 m. The
pavement structure and gutters of sections crossing built-up areas will be rehabilitated without
affecting riparian property. For segments of the road located between built-up areas, some land
expropriation will be necessary. This will concern segments where it is necessary to make
improvements to the road geometry. A total of nearly seven (7) hectares will be expropriated.
The area will be private land for the most part, used mainly for agriculture.
3.2.6. The Environmental and Social Management Plan (ESMP) incorporates all the
activities to be carried out and defines the different responsibilities during the implementation
and monitoring of these activities, as well as measures applicable to the construction and
commissioning phases. Control and inspection will involve environmental authorities of the
Union, represented by the General Directorate of the Environment and Forestry (DGEF). The
measures will be: (i) included in the competitive bidding documents so as to define their
contractual implementation, in compliance with the legislation in the Union of the Comoros.
Environmental control measures are factored in the cost of the works, as well as costs associated
with the control mission and specific measures. The ESMP Matrix incorporating the roles and
responsibilities of the stakeholders, as well as the indicators, is provided in Technical Annex
B7. Its cost is estimated at KMF 467 million, representing 2.82% of the project cost.
12
Climate Change
3.2.7. Given the configuration of their routes, the main climatic risks to which the RN2 and
RN23 roads are exposed relate to flooding in the project area on both islands, due to significant
relief and coastal erosion in Anjouan island. As a result, the project has been classified in
Category 1 with respect to climatic risk, as indicated in the attached Summary Risk Analysis
Report. The option of undersizing gutters and downcomers, or leaving them out completely,
would lead to frequent flooding and submersion of the RN2. Furthermore, the option not to
protect the RN23 with a heavy protective riprap, for any reason whatsoever, would surely cause
this road to break in the very near future (3 to 4 years), there significantly limiting its
sustainability.
3.2.8. The following adaptation measures will be carried out: (i) drainage of the roads to be
rehabilitated by restoring existing structures and constructing new ones, as well as the necessary
outlets; (ii) construction of gutters at the foot of slopes and along the infrastructure to be
rehabilitated. The size of hydraulic structures and culverts, including downcomers on steep
slopes, takes into account peak flow periods and cyclones characteristic of the area (20 to 100
years); (iii) replacement of floodable passages with multi-cell structures; (iv) heavy riprap
protection associated with dyke walls of a cumulative length of approximately 4 200 metres.
All sanitation and riprap protection measures and systems are part and parcel of the road project.
Hydrogeological and hydraulic reports would be produced on these measures and systems after
they have been defined and evaluated. Their cost is included in the estimated project cost for
both roads.
3.2.9. During the operation phase, traffic will increase to an average of 2 000 vehicles/day.
With proper regulation and stabilization, elementary CO2 emissions will stand at close to 300
g/km. This will amount to emissions of nearly 5 840 tonnes of CO2/year, which is insignificant
in view of the volcanic emissions that characterize the island of Grande Comore. However,
given the measures that will be adopted, the project will contribute to resilience to climate
change-induced erosions.
Gender
3.2.10. With regard to gender, several reports have highlighted the fact that from a legal
perspective there is no discrimination against Comorian women in economic activity. They
have access to landed property and are protected by customs which grant them ownership of
the marital home in the event of separation of the couple. It should be noted, however, that
although women inherit land and houses, under customary law, they do not always have the
right of usufruct; instead, this right belongs to their maternal uncles, their husbands or, failing
that, their brothers. The proportion of female heads of household is high due to the migration
of husbands. Single-parent female-headed households account for 40.2% of the total and the
average number of dependents is higher in female-headed households. Women are actively
involved in day-to-day economic activities on which they and the members of their households
depend for survival. They are particularly active in the marketing of agricultural products and
post-catch fish-handling activities.
3.2.11. In order to help strengthen household resilience and taking into account the needs
expressed by the women met during the project preparation, a component known as “Gender
and women’s economic empowerment” was prepared and included in the budget. The
activities planned under this component have been grouped as follows: (a) support for women's
associations involved in post-catch fish-handling activities; (B) rehabilitation of socio-
economic infrastructure for women; and (c) actions to build the capacity of women's
associations. As regards post-catch fish-handling activities, Chendini and Bangoi fishing sites
will be developed in addition to providing them with cold storage chains, multi-purpose
13
premises and equipment for transporting fish to points of sale. More than 500 women will be
directly affected by this post-catch support (see technical annexes for details on the activities
selected for this component, as well as the costs). Lastly, it should be noted that the contracting
authority for the implementation of this component will be delegated, by direct agreement, to
UNDP Comoros. The latter has a long experience in gender self-promotion in the Comoros.
Several forms of support to women have been provided under this agency's “Integrated
Framework Programme”, including support in fish processing, capacity building for women's
associations and awareness-raising. These specific activities planned for women in the project
impact area (PIA) are in line with Pillar 2 – “Economic Empowerment” - of the Bank Group's
Gender Strategy 2014-2018, as well as with the Bank's Strategy for Addressing Fragility.
Social Issues and Youth Employment
3.2.12. According to the results of the Household Consumption Expenditure Survey
conducted in the Comoros (2014), the population of the Comoros was estimated at 755 680
inhabitants in 2014. The urban population was 300 438, or more than 40% of the total
population. The distribution by sex showed that women made up 51% and men 49%,
representing a sex ratio of about 97 males to 100 females. The age structure revealed that the
population was very young. Indeed, slightly more than 40% of the total population was under
15 years of age. The survey also revealed that the literacy rate was 73.2% for both sexes. Among
women, seven in ten were literate. The monetary poverty threshold was KMF 295 105 (about
EUR 600) and the household poverty rate was estimated at 26% in 2015.
3.2.13. Implementation of this project will have positive socio-economic impacts on the PIA
population. Indeed, their mobility and level of accessibility to basic social services will be
greatly enhanced. Specific actions in favour of women will enable 500 of them to improve their
socio-economic conditions. More than 35% of young people, 15% of them women, will benefit
from the 50 000 h/d of direct employment that will be created. In addition, the planned
awareness and IEC campaigns will improve women's literacy rate.
3.2.14. Furthermore, at least a dozen (12) newly graduated engineers/technicians will receive
support to improve their employability. They will be placed in the design firm in charge of control
and supervision, as well as in the company awarded the road rehabilitation contract. During the project
implementation period, they will be given the opportunity, under the supervision of the control
mission and company staff, to familiarize themselves with: (i) structural design techniques; (ii) works
monitoring and supervision tools; and (iii) works programming and implementation techniques and
methods. These young people will be hired on a competitive basis in two batches of six (two for the
control mission and four for the company) for a period of twelve (12) months each. The costs related
to this upgrade will be borne by the control mission and the company.
Resettlement and Right-of-Way clearing
As a result of the development choices made concerning the widths of the pavement
(carriageway and shoulders), the project will maintain the current widths of the existing right-
of-way at the crossings of built-up areas. On average, these widths stand at 9 metres for the first
11 km and 8 metres for the rest of RN2 and 7 metres for RN23. The rehabilitation / widening
of the pavement and laying of drainage channels will be carried out at the crossings of built-up
areas without affecting riparian property. For road sections located between built-up areas,
some land expropriation will be necessary. Such expropriation concerns segments where it is
necessary to make improvements to the road geometry in order to comply with road user safety
technical requirements. A total of at least seven (7) hectares will be expropriated. Most of this
area will be bare private land used for agricultural purposes with a few productive trees and
approximately 4 uninhabited buildings. There will therefore be no displacement of populations
under this project. Costs associated with right-of-way clearing are estimated at KMF 200
14
million (UC 324.231) and are included in the project’s cost table. They will be financed by the
ADF Grant.
IV. PROJECT IMPLEMENTATION AND MONITORING-EVALUATION
4.1 Implementation Arrangements
Executing Agency
4.1.1. The Vice-Presidency in charge of the Ministry of Agriculture, Fisheries, Environment,
Territorial Development, and Town Planning (MPEATU) will assume its usual role as the
executing agency of the project, acting through the DGRTR. The capacity of this Directorate
has been assessed. In view of its current organization and the human and material resources at
its disposal, the Directorate was found to be unable to properly perform project implementation
activities. Accordingly, for the needs of the day-to-day monitoring of activities, a Project
Implementation Unit (PIU) has been established within the DGRTR. It will be responsible for
the technical, administrative, accounting, financial and organizational management of the
project. The note on the appointment of members of the Unit has been submitted to the Bank
for approval. This PIU comprises: (i) a Coordinator (civil engineer or similar officer, with at
least five years of relevant professional experience; (ii) two site managers (civil engineers or
senior technicians or similar officers, each with at least three years of relevant professional
experience); (iii) an environmentalist; (iv) a financial and accounting officer; (v) a procurement
officer; and (vi) administrative support staff.
4.1.2. The Project Implementation Unit (PIU) will be assisted by individual experts
(procurement and contract management specialists) who will be mobilized for this project. It
will also receive technical assistance from the external design firm, which will be responsible
for works control and supervision. Furthermore, performance contracts will be signed between
the contracting authority and PIU members. In addition, to ensure that the project
implementation monitoring is well coordinated, the project steering committee, chaired by the
PMC as part of its functions, will be activated. It should be recalled that this committee
comprises all stakeholders of the project and should meet periodically and on exceptional basis
when necessary. These measures have proved their worth in the implementation of similar
projects in other countries on the continent.
Procurement Arrangements
4.1.3. The procurement of goods (including non-consultancy services), works and
consultancy services financed by the Bank alone or jointly under the project will be conducted
in accordance with the Procurement Policy for Bank Group-funded Operations (October 2015)
and the provisions of financing agreements.
4.1.4. An assessment has been conducted to determine risks at country, sector and project
levels, as well as the procurement capacities of the executing agency. The results of the
assessment guided the choice of the procurement system (the Bank's) for specific activities or
a variety of similar activities under the project. Procurement arrangements, including risks and
procurement capacity assessment, are detailed in Technical Annex B.5.
Financial Management
4.1.5. The existing financial management system of the executing agency is deemed
generally unsatisfactory and the overall fiduciary risk is substantial owing to the absence of: (i)
a budget plan; (ii) a procedures manual; (iii) financial staff, comprising an administrative and
financial officer and an accountant; (iv) a fixed assets and fuel consumption register, mission
15
and maintenance tracking tables; (v) proper allocation of financial tasks; (vi) secure cabinets,
in sufficient numbers, for the filing of supporting documents; (vii) and accounting system; (viii)
semi-annual progress reports; and (ix) a provisional cash flow plan.
4.1.6. Measures will be taken under this project to ensure compliance of financial
management with the quality requirements of the Bank's relevant rules and procedures. In this
regard, the executing agency will: (i) each year prepare a budget plan, coupled with the
provisional schedule of activities; (ii) each year prepare a projected cash flow plan; (iii)
immediately establish a fixed assets register; (iv) hire a consultant to prepare the procedures
manual of the executing agency; (v) designate/hire an administrative and financial officer and
an accountant; (vi) allocate financial tasks; (vi) procure secure cabinets for the storage of
supporting documents; (vii) prepare a general accounting plan, an analytical accounting plan
and a budget plan; (viii) procure software integrating the data of both the executing agency and
the project, to ensure systematic preparation of accounting records and financial statements;
(ix) open, as soon as the grant is approved, a special account denominated in Comorian franc
for operating expenses; (x) prepare a semi-annual progress report every six months and submit
same to the line Ministry and PTFs; and (xi) hire an external audit firm once the project has
been launched. Arrangements for financial management, including risk assessment and
financial management capacity, are detailed in Technical Annex B.4.
Disbursements
4.1.7. Requests for ADF grant disbursements will be made in accordance with the provisions
of the Bank's Disbursement Handbook. In view of the planned activities and procurements, the
direct payment method will be used for works and consultancy services. The reimbursement
method may be used, if need be. A special account will be opened in the name of the project to
receive the portion of the ADF grant resources allocated for the operating costs of the PIU and
the right-of-way clearing costs. Evidence of the opening of this special account shall be the
condition precedent to the disbursement of the grant to which it is attached. The Disbursement
Letter will specify additional instructions regarding withdrawals from the funds allocated to the
project.
External Audit
4.1.8. The annual financial statements of the project, prepared by the team in charge of
financial management within the PIU, will be audited on an annual basis by an independent
external audit firm. Auditing will be conducted in accordance with IFAC International Auditing
Standards and the Bank's Specific Terms of Reference (TOR), a copy of which has been sent
to the DGRTR. The project audit report, accompanied by a letter to management on the internal
oversight of the project, should be submitted to the Bank within six (6) months following the
end of the fiscal year concerned. The first year's audit may cover the first 18 months, if the first
disbursement is made in the second half of the year (i.e. after 30 June). The external audit will
be tailored to specific project risks. The auditor's contract will be concluded for a one-year
period, renewable on the basis of quality of services and for a period not exceeding three years.
16
Implementation Schedule and Supervision
4.1.9. The physical and financial implementation of the project will be monitored by the
DGRTR, which will be supported by the works control and supervision mission recruited to
carry out various monitoring-related activities. The information collected will be used to
produce periodic reports on the progress of the project. The project implementation schedule is
provided on page vii of the present report. It takes into account the relevant experience of the
executing agency in terms of works implementation timeframe management and procurement,
as well as that of the Bank gained from the processing of files pertaining to similar previous
projects and the specific context of the country. The project activities are scheduled to start once
the project receives Bank approval, which should take place by December 2016. The project
completion - all components included – is scheduled for end-June 2020 and the closing of the
grant for end-2021. At the Bank level, activities scheduled for the period following the grant
approval will be monitored in accordance with the indicative schedule below.
Table 4.1: Project Monitoring and Supervision
Timeframe Stages Process Feedback Loop
T4 - 2016 à T1 - 2017 Grant approval and
effectiveness
Grant approval
Signing of the Grant Agreement
Lifting of conditions precedent to the first disbursement
T1 -2017 Project Launch Field Mission Aide-memoire
T4 - 2016 to T4 - 2017 Procurement process General Procurement Notice
Recruitment of a works contractor
Recruitment of works control and supervision staff UNDP recruitment for implementation of women's
empowerment and awareness activities
INSEED recruitment for monitoring and evaluation Recruitment of consultants for training/support/preparation of
a procedures manual
Recruitment of an auditing firm
T2 -2017 to T2 -2020 Physical and
financial
implementation of the project
Monitoring/Supervision of works implementation (Bank/ EU/
Execution Agency)
Progress reports
/Aide-memoire
T3 -2020 to T4 -2020 Project completion
and guarantee period
Joint preparation of the project completion report (Bank
/EU/Execution Agency)
Project completion
report
4.2 Monitoring and Evaluation
As executing agency, the DGRTR will monitor the physical and financial implementation of
the project. It will produce semi-annual reports on the project's physical and financial
achievements. TFP and Government supervision missions will also be fielded to assess the
implementation level of project activities. The DGRTR will be supported by INSEED in the
monitoring and evaluation of the project's socio-economic impact. A direct agreement will be
signed with INSEED for the conduct of two studies on: (i) establishment of the baseline
situation before works start-up; and (ii) assessment of the socio-economic impact at project
completion. INSEED will produce at least the following three reports: (i) initial establishment
report, specifying its methodology, the indicators to be followed and key data to be collected,
collection tools, detailed schedule for the performance of the mandate, reports to be produced,
etc.; (ii) the baseline report indicating the initial situation of the main indicators selected; and
(iii) the evaluation report at the end of the project.
4.3 Governance
4.3.1. The level of fiduciary risk in the Comoros is fairly high, overall. Indeed, of the 52
countries ranked by the Mo Ibrahim Index between 2011 and 2014, the Comoros remained
between the 30th and 32rd positions. The country's worst scores were recorded by qualitative
indicators in the areas of: (i) public management (30.1/100); (ii) business environment
17
(33.0/100); (iii) accountability (34.2/100); and (iv) gender (38.1/100). On the other hand, the
scores were better for indicators related to: (i) education (62.9/100); (ii) health (60.6/100); (iii)
rule of law 63.5/100); and (iv) above all, national security (89.6/100). Regarding the ranking
by Transparency International's Corruption Perception Index, the country has been unable
maintain the position achieved following its spectacular rise from 143rd place in 2011 to the
133rd in 2012 and 127th in 2013. The Comoros dropped to the 136th place in 2015 due to the
lack of progress in the operationalization of the High National Anti-Corruption Commission -
the institution's flagship established to fulfil the unequivocal determination of the new
President, elected in 2011, to stamp out corruption.
4.3.2. The country has adopted a new Public Procurement Code which the Government
hardly implements, given that less than 20% of public procurement complies with the
procedures specified in the Code. In the transport sector, in particular, the tendency is to use the
direct agreement procedure for procurement, which drastically reduces competition. The sector
is also characterized by a multiplicity of actors without a formal definition of their respective
responsibilities, including between the Central Government and the authorities of the three
islands. This situation makes it difficult to pool resources required for optimal network
management, mainly in the road and ports sub-sectors. Governance in the Comoros is
handicapped by the extreme weakness of institutional capacities stemming from previous
political crises. However, it should be noted that the new authorities emanating from the regime
change, which occurred on 15 May 2016 following the presidential elections, have expressed a
firm commitment to improve the situation. The proposed project will use the Bank’s
procurement guidelines. Furthermore, the project’s accounts will be audited on a yearly basis
by an independent auditing firm. Audit reports will be submitted to the Bank’s review.
4.4 Sustainability
4.4.1. Project sustainability depends, to a large extent, on: (i) the technical and financial
capacity of management services to carry out timely routine and periodic maintenance; (ii)
operating conditions; and (iii) the quality of its technical design and works execution. In the
Comoros, routine road maintenance is funded by the Road Maintenance Fund (FER), which
was transformed in 2011-2012 into a second-generation fund. As for periodic maintenance, it
was funded until last year by EU grant resources. This operation is supported by FER from this
year onward. Over the last three years, FER's resources have been derived entirely from the fuel
tax. Indeed, the other potential revenues included in the decree establishing the Fund were
allocated by the successive budget laws in the budget of the governments of the three islands
that make up the Union. However, it should be noted that the resources expected from these
other sources are meagre and costly to collect for the most part. So far, FER revenue covers
only 45% of the overall road network maintenance needs of the country. Moreover, the long
period of inactivity that preceded the resumption of road maintenance in 2012 led to the
disappearance of administrative routines, numerous skills and local small and medium-sized
enterprises (SMEs) that had emerged by the end of the 1990s.
4.4.2. In light of the above-mentioned obstacles to the proper conduct of road maintenance,
the institutional support under this project will be used to assist the Government in establishing
an effective and sustainable maintenance system. To that end, the support will focus on
monitoring the conduct of the ongoing study on the relevance of institutional restructuring,
particularly entailing the establishment of a road agency, to better guarantee the proper use of
public funds invested in roads. The support will also provide a restrictive definition of a priority
network, adapted to the level of resources available for road maintenance and to the limits of
the implementation capacities of both the administration and local SMEs. Considering the
fundamental socio-economic use of the road for the next ten-year period, the PNDTR
recommends that rehabilitation and maintenance operations should focus on a 288-km network
18
out of a total road-length of 770 km. Furthermore, this support will aim to establish a plan for
the gradual increase in the resources of the Road Maintenance Fund (FER) by identifying other
sources of funding, as well as the optimal way of recovering funds to ensure coverage of up to
100% of the priority maintenance needs of FER by 2020. The team put together will also be
tasked with assisting the administration in drafting the legislative and statutory instruments
required to implement the above-mentioned reforms. The adoption of these instruments by the
Government and Parliament will be one of the conditions or measures included in the joint
sector budget support programmed under the next ADF cycle.
4.4.3. Furthermore, the dialogue between the Comorian Government and donors involved in
the sector will seek to ensure that the resources of the Road Maintenance Fund are effectively
replenished on a regular and automatic basis to limit the risk of accumulation of new arrears,
observed since the beginning of this year. In more specific terms, steps will need to be taken
either to re-establish weekly replenishment of FER resources through direct payments into its
bank account or through bank transfers from the Comorian Hydrocarbons Corporation (CHS),
the agency responsible for collecting the Single Tax on Petroleum Products, without passing
through the Public Treasury. There are assurances that the DGRTR will include the
maintenance of roads built under this project in its programmes of activities as usual and that
the related costs will be borne by FER. In addition, the pavement structures adopted during the
project design are compliant with the required technical standards and appropriate for ensuring
a normal lifespan, in view of the projected traffic and the topographical and climatic conditions.
The works control, supervision and monitoring arrangements adopted are designed to ensure
that the works are of good quality. All these measures are pointers to sustainability of the
investments that will be made.
4.5 Risk Management
The main risks that may affect the expected results of the project, as well as its smooth
implementation, and the recommended mitigation measures are summarized in the table below:
Table 4.2: Risks and Mitigation Measures
Risks Level Mitigation Measures
(i). Delays in the
release of the project’s
right-of-way.
Moderate The roads to be rehabilitated will be
maintained for the most part to prevent the
demolition of property. In addition, the Bank
will bear the costs of compensating the project
affected persons.
(ii). Inadequate
maintenance resources.
High The institutional support component of this
project will assist the Government to finalize
reflection and establish a road agency, to adopt
a priority network in line with the level of
resources available for road maintenance and
within the limits of the implementation
capacities of the administration and local
SMEs, and to ensure that the Road
Maintenance Fund (FER) is replenished on a
regular basis and that it is increased to cover
100% of priority maintenance needs by 2020.
The adoption of the prescribed measures will
be set as a prior action or measure of the joint
budget support with the EU planned under the
next ADF.
(iii). Climate change
events that may cause
floods, erosions, especially
marine-related, etc.
High The project will build structures for protection
against land erosion (tree planting,
downcomers) and coastal erosion (protective
walls). Moreover, studies on the design of
engineering and drainage structures will take
into account the peak flood periods and the
19
recurrent cyclones characteristic of the area
(20- to 100-year flood levels)
(iv). Escalation of the
cost of works in
comparison to the estimated
budget.
Low The availability of detailed performance
studies, a realistic cost estimate, adequate
provision for price escalation, and measures for
ensuring broad-based competition during the
bidding process, including consolidation in a
single lot.
(v). Long delays in
the procurement process for
the ongoing project.
Moderate Provision of technical assistance for training
and support in the procurement process.
4.6 Knowledge Building
As executing agency, the DGRTR will monitor the physical and financial implementation of
the project. It will be assisted in this task by a works control and supervision mission. It will
produce semi-annual reports on the physical and financial achievements of the project. TFP and
Government supervision missions will also be fielded to assess the implementation level of
project activities. Furthermore, the DGRTR will be supported by INSEED in monitoring and
evaluating the project’s socio-economic impact. A direct agreement will be signed with
INSEED for the conduct of two studies on: (i) establishment of the baseline situation prior to
works start-up; and (ii) assessment of the socio-economic impact at project completion.
Monitoring and evaluation will be conducted using a participatory approach involving all
stakeholders. The reports produced to that end will be circulated among the various stakeholders
of the project.
V. LEGAL INSTRUMENT
5.1. Financing Instrument
A Grant Protocol Agreement will be signed between the Union of the Comoros, on the one
hand, and the African Development Fund (ADF), on the other.
5.2. Conditions for Bank Intervention
5.2.1. Conditions precedent to grant effectiveness
Effectiveness the Protocol Agreement shall be subject to its being signed by the Bank and the
Donee.
5.2.2. Conditions precedent to the first disbursement of the grant
In addition to effectiveness of the Protocol Agreement, the first disbursement of the grant
resources shall be subject to the satisfaction by the recipient of the following conditions:
(1) Submission to the Fund of the proof of the opening of a special account in the name of
the project in a bank acceptable to the Bank, to receive funds to cover operating and
right-of-way clearing costs; and
(2) Submission of evidence of the establishment of the Project Implementation Unit which
staff qualification and experience are deemed acceptable by the Fund.
5.2.3. Other Conditions
The Donee shall, in addition and to the satisfaction of the Bank, provide to the Bank: as the
works progress and, in any case, prior to works start-up on a given zone, evidence of
20
compensation of project affected persons in the said zone, in accordance with the relevant Bank
rules and procedures, the Environmental and Social Management Plan (ESMP), and the
Abbreviated Resettlement Plan (ARP).
5.2.4. Undertakings
The Donee shall, to the satisfaction of the Bank, undertake to:
(i) Implement the Project, ESMP and RAP, and have them implemented by its
contractors in compliance with: (a) the Bank’s rules and procedures; (b) national
legislation; and (c) the recommendations, requirements and procedures
contained in the ESMP and RAP;
(ii) Refrain from starting works on an area without that the affected persons in the
area have been fully compensated;
(iii) Submit, to the Bank, semi-annual reports on the implementation of the ESMP
and RAP including, as required, weaknesses and remedial action taken or to be
taken; and
(iv) Submit, to the Bank, all documents reasonably required for the project
implementation.
5.3. Compliance with Bank Policies
This project complies with all applicable Bank policies.
VI. RECOMMENDATION
Management recommends that the Board approves the proposal to award an ADF grant of UA
15.165 million to the Union of the Comoros to finance the Road Network Rehabilitation Project,
in accordance with the terms and conditions specified in this report.
I
ANNEX I: COUNTRY COMPARATIVE SOCIO-ECONOMC INDICATORS
Year Comoros Africa
Develo-
ping
Countries
Develo-
ped
Countries
Basic Indicators
Area ( '000 Km²) 2016 2 30 067 94 638 36 907Total Population (millions) 2016 0,8 1 214,4 3 010,9 1 407,8Urban Population (% of Total) 2016 27,7 40,1 41,6 80,6Population Density (per Km²) 2016 433,7 41,3 67,7 25,6GNI per Capita (US $) 2014 820 2 045 4 226 38 317Labor Force Participation *- Total (%) 2016 57,5 65,6 63,9 60,3Labor Force Participation **- Female (%) 2016 35,5 55,6 49,9 52,1Gender -Related Dev elopment Index Value 2007-2013 0,571 0,801 0,506 0,792Human Dev elop. Index (Rank among 187 countries) 2014 159 ... ... ...Popul. Liv ing Below $ 1.90 a Day (% of Population) 2008-2013 13,5 42,7 14,9 ...
Demographic Indicators
Population Grow th Rate - Total (%) 2016 2,4 2,5 1,9 0,4Population Grow th Rate - Urban (%) 2016 2,7 3,6 2,9 0,8Population < 15 y ears (%) 2016 40,1 40,9 28,0 17,2Population >= 65 y ears (%) 2016 2,8 3,5 6,6 16,6Dependency Ratio (%) 2016 75,2 79,9 52,9 51,2Sex Ratio (per 100 female) 2016 101,8 100,2 103,0 97,6Female Population 15-49 y ears (% of total population) 2016 24,5 24,0 25,7 22,8Life Ex pectancy at Birth - Total (y ears) 2016 63,8 61,5 66,2 79,4Life Ex pectancy at Birth - Female (y ears) 2016 65,6 63,0 68,0 82,4Crude Birth Rate (per 1,000) 2016 32,9 34,4 27,0 11,6Crude Death Rate (per 1,000) 2016 7,3 9,1 7,9 9,1Infant Mortality Rate (per 1,000) 2015 55,1 52,2 35,2 5,8Child Mortality Rate (per 1,000) 2015 73,5 75,5 47,3 6,8Total Fertility Rate (per w oman) 2016 4,3 4,5 3,5 1,8Maternal Mortality Rate (per 100,000) 2015 335,0 495,0 238,0 10,0Women Using Contraception (%) 2016 24,9 31,0 ... ...
Health & Nutrition Indicators
Phy sicians (per 100,000 people) 2004-2013 14,6 47,9 123,8 292,3Nurses and midw iv es (per 100,000 people) 2004-2013 74,4 135,4 220,0 859,8Births attended by Trained Health Personnel (%) 2010-2015 82,2 53,2 68,5 ...Access to Safe Water (% of Population) 2015 90,1 71,6 89,3 99,5Healthy life ex pectancy at birth (y ears) 2013 55,9 54,0 57 68,0Access to Sanitation (% of Population) 2015 35,8 39,4 61,2 99,4Percent. of Adults (aged 15-49) Liv ing w ith HIV/AIDS 2014 ... 3,8 ... ...Incidence of Tuberculosis (per 100,000) 2014 35,0 245,9 160,0 21,0Child Immunization Against Tuberculosis (%) 2014 76,0 84,1 90,0 ...Child Immunization Against Measles (%) 2014 80,0 76,0 83,5 93,7Underw eight Children (% of children under 5 y ears) 2010-2014 16,9 18,1 16,2 1,1Daily Calorie Supply per Capita 2011 ... 2 621 2 335 3 503Public Ex penditure on Health (as % of GDP) 2013 2,2 2,6 3,0 7,7
Education Indicators
Gross Enrolment Ratio (%)
Primary School - Total 2010-2015 105,2 100,5 104,7 102,4 Primary School - Female 2010-2015 102,0 97,1 102,9 102,2 Secondary School - Total 2010-2015 59,3 50,9 57,8 105,3 Secondary School - Female 2010-2015 60,4 48,5 55,7 105,3Primary School Female Teaching Staff (% of Total) 2010-2015 42,7 47,6 50,6 82,2Adult literacy Rate - Total (%) 2010-2015 78,1 66,8 70,5 98,6Adult literacy Rate - Male (%) 2010-2015 82,0 74,3 77,3 98,9Adult literacy Rate - Female (%) 2010-2015 74,3 59,4 64,0 98,4Percentage of GDP Spent on Education 2010-2014 5,1 5,0 4,2 4,8
Environmental Indicators
Land Use (Arable Land as % of Total Land Area) 2013 34,9 8,6 11,9 9,4Agricultural Land (as % of land area) 2013 71,5 43,2 43,4 30,0Forest (As % of Land Area) 2013 20,3 23,3 28,0 34,5Per Capita CO2 Emissions (metric tons) 2012 0,2 1,1 3,0 11,6
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
Comoros
August 2016
0
10
20
30
40
50
60
70
80
90
100
20
00
20
05
20
09
20
10
20
11
20
12
20
13
20
14
20
15
Infant Mortality Rate( Per 1000 )
C om or o s A fr i ca
0
500
1000
1500
2000
2500
20
00
20
05
20
08
20
09
20
10
20
11
20
12
20
13
20
14
GNI Per Capita US $
C om or o s A fr i ca
0,0
0,5
1,0
1,5
2,0
2,5
3,0
20
00
20
05
20
09
20
10
20
11
20
12
20
13
20
14
20
15
Population Growth Rate (%)
C om or os A fr ic a
01020304050607080
20
00
20
05
20
09
20
10
20
11
20
12
20
13
20
14
20
15
Life Expectancy at Birth (years)
C om or o s A fr i ca
II
ANNEX II: RATIONALE FOR LEVEL OF COUNTERPART CONTRIBUTION TO
THE ADF PROJECT FUNDING
The Road Network Rehabilitation Project in the Comoros will be co-financed by the Bank
Group through an ADF grant of UA 15.17 million (representing 56.5% of the project cost) and
the European Union through EDF resources of UA 11.96 million or 43.5% of the project cost.
Due to the extremely fragile situation in the Comoros, the country will not be required to make
any counterpart contribution.
Pursuant to the provisions of Section 4.2.2 of the Policy on Expenditure Eligible for Bank
Group Financing (revised version of 19 March 2008) which sets at 10% the level of
Government counterpart contribution complementary to the ADF window, a waiver must be
based on the following criteria:
the country’s commitment to implement its overall development programme;
the financing allocated by the country to sectors targeted by Bank assistance;
the country’s budget situation and debt level; and
the cost-sharing ceiling and guidelines specified in the country financing
parameters.
Country’s Commitment to Implement its Overall Development Programme
In December 2014, the Government of the Union of the Comoros adopted an Accelerated
Growth and Sustainable Development Strategy (SCADD) for 2015-2019. The strategy, which
targets inclusive, accelerated and diversified growth, has four main thrusts: (i) Growth
acceleration, diversification and sustainability; (ii) Development of growth-support
infrastructure; (iii) Strengthening of access to basic social services and household resilience;
and (iv) Strengthening of governance and institutional and human resilience capacity.
SCADD 2015-2019 was prepared in consultation with civil society and private sector
stakeholders, as well as technical and financial partners. This is evidence of the Comoros
Government’s commitment to develop the country and take it out of the situation of fragility in
which it finds itself. Nevertheless, despite the unquestionable political commitment, the
implementation of SCADD 2015-2019 was delayed due to the political environment marked
not only by the tight electoral schedule from 2015 to June 2016 (election of the Union President
and Governors of the autonomous islands), but also, and above all, by persistent budgetary
pressures.
Country Financing for the Sector Targeted by Bank Assistance
The African Development Bank Group began its operations in the Comoros in 1977 and, since
then, has approved operations for net debt cancellation commitments totalling UA 78.26 million
in October 2016. These operations, targeting the public sector, were mainly financed by ADF
resources (87.6%). Since the resumption of cooperation with the Comoros in 2009 (after 17
years of sanctions due to accumulation of payment arrears), this road rehabilitation project is
the first Bank intervention in the transport sector in the country. It will be recalled that the Bank
had in the past financed a port infrastructure project at Anjouan through the AfDB window for
UA 9.67 million. Bank interventions in the Comoros were based on the Interim Country
Strategy Paper (ICSP) 2009-2010 which concerned the strengthening of institutional capacity
and water management infrastructure, the CSP 2011-2015 relating exclusively to the energy
sector and, more recently in April 2016, the CSP 2016-2020 dealing with road and energy
infrastructure.
III
Road network financing in the Comoros is borne mainly by development partners, especially
the European Union, which is the main actor in this sub-sector. The European Union’s
interventions are through the Transport Sector Sustainable Development Support Project
(PADDST), and out of an amount of EUR 26 million allocated to the Comoros since 2011,
EUR 16.6 million have been devoted to the road sector. It should also be noted that the Comoros
has, with European Union support, established a Road Maintenance Fund which is financed
mainly by taxes on oil imports. For the 2014-2020 period, the European Union will allocate
EUR 6 million for the maintenance of 118 km of roads.
Lastly, the road sub-sector was the main beneficiary of the Economic Citizenship Programme
approved by the Comorian Parliament in 2008. Resources obtained from this programme
allowed for the rehabilitation of many roads. Indeed, pursuant to the Law relating to the 2012-
2017 Transport Sector Sustainable Development Programme, the amount of KMF 12 billion,
or about EUR 24.5 million, from citizenship programme resources was earmarked for financing
road rehabilitation in the Comoros.
Country’s Budgetary Situation and Debt Level
The budgetary situation of the Comoros Islands has deteriorated sharply since 2013, as
evidenced by the late payment of salaries and accumulation of domestic and external debt
arrears, leading to the non-renewal of the Extended Credit Facility (ECF) programme,
following the closure, in December 2013, of the previous Programme for 2009-2012. Indeed,
domestic resource mobilization in the Comoros is extremely inefficient, despite the support of
partners such as the World Bank and the African Development Bank which provided two
capacity building projects for tax services. This situation was exacerbated by the electricity
crisis which slashed the taxable incomes of enterprises, compelled to resort to self-generated
power. Regarding expenditure, salaries absorb 80% to 90% of tax revenue in the Comoros,
which leaves very little room for the financing of investment expenditure.
Table: Macro-economic indicators of the Comoros
2012 2013 2014 2015 2016
Real GDP growth 3.0% 3.5% 2.0% 1.0% 2.2%
Domestic revenue/GDP 11.8% 12.1% 11.8% 11.1% 9.8%
Overall budgetary balance (cash basis as % of GDP) 3.0% -1.4% -2.3% -1.4% -5.6%
Current account balance (as % of GDP) -8.0% -11.3% -8.6% 0.6% -9.3%
Sources: IMF, Mission Article IV – October 2016.
Debt ratios have improved significantly since attainment of the completion point of the HIPC
Initiative in December 2012. The net present value of external debt represents only 26.1% of
GDP in 2016, and will remain below 30% until 2020. Henceforth, the Comoros no longer has
access to concessional financing and grants since recourse to financial markets is highly
controlled by the conditionalities of the on-going IMF staff-monitored programme.
Cost-sharing ceiling and specific guidelines in country financing parameters
The country financing parameters (CFP) concerning cost-sharing highlight the country’s
commitment and ownership of activities financed by the Bank under the project. These
parameters also offer flexibility in determining the percentage of national counterpart
contribution. The Bank considered the commitment and ownership level based on criteria
including: (i) the contribution of project activities to achieving the country’s development
objectives as set forth in the Accelerated Growth and Sustainable Development Strategy Paper
IV
(SCA2D 2015-2019); (ii) alignment and linkage with the strategic pillars of the Bank’s Country
Strategy Paper 2016-2020 for the Comoros, approved in April 2016, as well as inclusion of the
project in the State budget financed by the Bank and other technical and financial partners. The
country financing parameters indicate that the percentage of total costs financed by the Bank
will be assessed on a case-by-case basis, depending on the context and specific considerations
of each project, the demonstration of Government’s commitment to and ownership of the
projects, the level of co-financing from other TFPs, and the country’s budgetary situation.
In conclusion, despite the Government’s commitment to implement the country’s development
strategy, the Union of the Comoros remains a fragile country faced with a shortage of basic
infrastructure, including roads – a situation which hampers private sector development and
external competitiveness. In light of the foregoing and in compliance with the Policy on
Expenditure Eligible for Bank Group Financing, and at the request of the Comorian authorities,
Management recommends that the Bank should finance the total cost (100%) of the Road
Network Rehabilitation Project, whose implementation is essential in terms of enabling
the Comoros to gradually exit the situation of fragility and improve the living conditions
of the population.
V
ANNEX III: TABLE OF BANK OPERATIONS IN THE COMOROS AS AT 30
SEPTEMBER 2016
No. Project Loan/Grant Number Approval
Date
Closing
Date
Age
(year)
Net
Amount
(UA
million)
Disbursement
Rate
Multisector 6.625 4.21%
1 PRIVATE SECTOR SUPPORT
5900155006702 (TSF Grant) 24-Nov-13 30-Jun-16 2.6 0.625 15.17%
2 PRCI – II 5900155009251 (TSF Grant) 19-Nov-15 31-Jul-19 0.6 6.000 3.40%
Energy Sector 15.380 13.79%
3 ENERGY SECTOR SUPPORT PROJECT
(PASEC)
5900155005451 (TSF Grant) 11-Sep-13 1-Mar-18 2.8
8.000 0.00%
2100155025668 (ADF Grant) 5.380 41.05%
4 MASTER PLAN FOR THE PROD, TRANSP &
DISTR OF ENERGY
5900155009001 (TSF Grant) 30-Sep-15 31-Dec-18 0.7 2.000 0.26%
Total 1.7 22.005 11.41%
VI
ANNEX IV: KEY RELATED PROJECTS FINANCED BY THE BANK OR OTHER
DEVELOPMENT PARTNERS IN THE COMOROS OVER THE PAST FIVE YEARS
FINANCING Date of Signature
or Approval Amount
Saudi Fund for Development (SFD) KMF
Rehabilitation of the RN1 (the Hahaya-Mitsamihouli-Galawa
section) and RR 205 (the Dindri-Mchakojou section) roads,
and construction of the Mchakojou-Lingoni road.
7/01/2015 11 038 818 443
European Union (EU) EUR
Transport Sector Sustainable Development Support
Programme I (PADDST I) 31/03/2010 16 600 000
Transport Sector Sustainable Development Support
Programme II (PADDST JI) 17/05/2013 10 400 000
VII
APPENDIX V: MAP OF PROJECT IMPACT AREA
This map has been drawn by the staff of the African Development Bank exclusively for the use of 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 judgement concerning the legal status of a territory or any approval or acceptance of its borders.
Axe du projet phase 2