AFRICAN DEVELOPMENT FUND LANGUAGE : ENGLISH ORIGINAL : FRENCH DISTRIBUTION : LIMITED

PROJECT : Dakar-Diamniadio Highway Project COUNTRY : Republic of Senegal PROJECT APPRAISAL REPORT

Preparation Team

Team Leader : Mr. Bamory TRAORE, Chief Transport Engineer, OINF.1, Extension 2223 Team Members : Mr. Moctar MBODJ, Principal Transport Economist, OINF.1, Extension 2348 Mr. Roger GAILLARD, Lead Infrastructure & PPP, OINF.0, Extension 2132 Mr. Leckram JOOTTUN, Environmentalist, OINF.1, Extension 2256 Mr. Mamady SOUARE, Principal Transport Engineer, SNFO Mrs. Maïmouna SIDIBE-DIOUF, Infrastructure Specialist, SNFO, Mrs. S. BARA, Gender Specialist, OWAS.1, Extension 2397 Mr. S. AMADOU, Legal Counsel, GECL, Extension 3333 Mr. M. DOUMBIA, Consultant, ORPF, Extension Division Manager : Mr. A KIES, OINF.1, Extension 2282 Sector Director : Mr. Gilbert MBESHERUBUSA, OINF, Extension 2034 Regional Director : Mr. Frank PERRAULT, ORWB, Extension 2036

Peer Reviewers

Mr. Massamba DIENE, ORQR.3, Extension 3395 Mr. Maleck AMARA, OINF.1, Extension 2497 Mr. Mohamed HASSAN, OPSM.3, Extension 2347 Mrs. Niafatou SENOU, Consultant, OINF.2, Extension 2632

TABLE OF CONTENTS Pages

CURRENCY EQUIVALENTS, ACRONYMS AND ABBREVIATIONS, PROJECT INFORMATION SHEET, LISTS OF ANNEXES AND TABLES, BASIC DATA, PROJECT LOGICAL FRAMEWORK, IMPLEMENTATION SCHEDULE, EXECUTIVE SUMMARY ................................................................................................................................................................ i to viii 1 STRATEGIC ORIENTATION AND OBJECTIVES 1 1.1 Project links with country strategy and objectives 1 1.2 Justification for Bank intervention 1 1.3 Donor coordination 2 2 DESCRIPTION OF PROPOSED PROJECT 3 2.1 Project objectives 3 2.2 Project components 3 2.3 Technical options chosen and considered 4 2.4 Project type 5 2.5 Project cost and financing arrangements 5 2.6 Project area and beneficiaries 9 2.7 Participatory approach to project identification, design and implementation 9 2.8 Consideration of the Bank’s experience and lessons learnt in the project design 10 2.9 Key performance indicators 11 3 PROJECT FEASIBILITY 11 3.1 Economic and financial performance 11 3.2 Environmental and social impact 12 4 PROJECT IMPLEMENTATION AND MONITORING-EVALUATION 14 4.1 Implementation arrangements 14 4.2 Monitoring-evaluation 16 4.3 Governance 16 4.4 Sustainability 17 4.5 Risk management 17 4.6 Knowledge Development 18 5 LEGAL FRAMEWORK 18 5.1 Legal Instrument 18 5.2 Conditions for Bank Intervention 19 5.3 Compliance with Bank policies 20 6 CONCLUSIONS AND RECOMMENDATIONS 20 6.1 Conclusions 20 6.2 Recommendations 20 ANNEX I. Comparative socioeconomic indicators of the Country ANNEX II. Table of adb portfolio in the country ANNEX III MAP OF PROJECT AREA TECHNICAL ANNEXES

CURRENCY EQUIVALENTS (April - 2009)

UA 1 = CFAF 736.928 UA 1 = US$ 1.49507 UA 1 = EUR 1.12344 US$1 = CFAF 492.906 EUR 1 = CFAF 655.957

FISCAL YEAR 1 January - 31 December

WEIGHTS AND MEASURES

1 kilogramme (kg) = 2.205 lbs 1 metre (m) = 3.28 feet 1 kilometre (km) = 0.621 mile 1 square kilometre (km2) = 0.3861 sq mile 1 hectare (ha) = 2.471 ares

ACRONYMS AND ABBREVIATIONS AATR Autonomous Road Works Agency ADB African Development ADF African Development Fund AFD French Development Agency AGETIP Public Interest Works Implementation Agency APIX APIX Public Limited Company BG Bituminous Gravel BOT Build – Operate – Transfer CETUD Dakar Urban Transport Study Centre CFAF Franc of the African Financial Community CG Crushed Gravel CIB Consolidated Investment Budget DDTH Dakar Diamniadio Toll Highway DPA Highway Project Department DPS Forecasts and Statistics Department EU European Union IDA International Development Association IRI International Roughness Index IRR Internal Rate of Return MCA/MCC Millennium Challenge Account /Millennium Challenge Corporation MEF Ministry of Economy and Finance NEPAD New Partnership for Africa’s Development Niayes Marshlands ORB Open Road Barrier PAD Autonomous Port of Dakar PAP Persons Affected by the Project PAST Transport Sector Adjustment Programme PIA Direct Project Influence Area PIS Pikine Irrégulier Sud (shanty town) PRSP Poverty Reduction Strategy Paper PST II Transport Sector Programme 2 PUD Diamniadio Urban Project RA Resettlement Area RN National Highway SDSP Private Sector Development Strategy SGBC Semi-Granular Bituminous Concrete STAP NEPAD Infrastructure Short-Term Action Plan USD United States Dollar VDN Voie de Dégagement Nord (North Exit Road) Veh/d Vehicles per day WAEMU West African Economic and Monetary Union

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1. Project Information Sheet COUNTRY : Senegal PROJECT NAME : Dakar-Diamniadio Highway Project LOCATION : Dakar Region BORROWER : Senegal EXECUTING AGENCY : APIX -SA

52-54 rue Mohamed V, BP 430, CP 18524, Dakar-Senegal; Tel (221) 338490555; Fax: (221) 338239489;

2. Financing Plan Source Amount in UA Million Instrument

ADF 45.00 Project Loan

CONCESSIONARY COMPANY 75.15 GOV/OTHER DONORS 47.31 IDA 70.23 Loan AFD 53.41 Grants

GOV 44.49 Total 335.60

3. Important Financial Information

ADF LOAN Currency Unit of Account (UA) Interest Type Not Applicable Interest Rate Margin Not applicable Service Charge 0.75% per year on disbursed loan amount outstanding Commitment Fee 0.5% on undisbursed loan amount 120 days after the signing of the Loan

Agreement Other Charges Not Applicable Maturity 50 years Grace Period and Repayment of ADF Loan

The Borrower shall repay the loan principal after a 10-year grace period from the date of signature of Agreement over a forty (40)-year period at a rate of one percent (1%) per year between the eleventh and twentieth years of the said period and three percent (3%) per year thereafter.

FRR, NPV (baseline scenario) 20.16% and CFAF 66.13 billion ERR (baseline scenario) CFAF 29.28% and CFAF 275.50 billion

4. Time Frame – Key Stages (expected)

Activities Beginning End Project Preparation Mission 23/03/2008 07/04/2008 Approval of Project Concept Note 09/10/2008 22/10/2008 Joint Pre-Appraisal Mission with the Other Donors 23/11/2008 07/12/2008 Procurement Process Review 08/02/2009 04/04/2009 ADF Project Appraisal Mission 09/04/2009 27/04/2009 Internal Appraisal Report Review 21/04/2009 31/05/2009 ADF Loan Negotiation 08/06/2009 08/06/2009 Translation, Distribution and Approval of the Project by the ADF Board 24/05/2009 08/07/2009 Signature, Effectiveness and Fulfilment of the Conditions Precedent to Disbursement of the ADF loan 08/07/2009 11/08/2009 Note to Board for 2nd Tranche of ADF Loan 01/02/2010 03/03/2010 First Disbursement 11/08/2009 10/09/2009 Last Disbursement 31/12/2013 31/12/2014 Completion 30/06/2012 30/07/2013 Last Repayment 12/08/2059 23/03/2060

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LIST OF ANNEXES

Annexes I. Comparative Socio-Economic Indicators of the Country II. Table of the Bank’s Portfolio in the Country III. Map of Project Area

LIST OF TABLES No. TITLE Page Table 1.1 : Impact of Transport Sector in GDP 2 Table 2.1 : Summary of Project Components 3 Table 2.2 : Alternative Routes Considered 4 Table 2.3 : Technical Options Chosen by Section 5 Table 2.4 : Summary Cost Estimate by Component for Entire Project 6 Table 2.5: Summary Cost Estimate of ADF Component 6 Table 2.6 : Summary Cost by Expenditure Category for Entire Project 6 Table 2.7 : Summary Cost by Expenditure Category for ADF Component 7 Table 2.8: Sources of Finance for Entire Project 7 Table 2.9: Sources of Finance for ADF Component 7 Table 2.10 : Expenditure Schedule by Component for Entire Project 8 Table 2.11 : Expenditure Schedule by Component for ADF Component 8 Table 2.12 : Expenditure Schedule by Source of Finance for Entire Project 8 Table 2.13 : Expenditure Schedule by Source of Finance for ADF Component 9 Table 2.14 : Expenditure Schedule by Source of Finance for ADF Component 9 Table 3.1 : Summary Outcomes of Economic and Financial Analysis 12

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EXECUTIVE SUMMARY Project Overview 1. The Dakar-Diamniadio Highway Construction Project concerns a length of 31.60 km. In the first phase, the Government, using its budget, financed the works on the Malick Sy-Patte d’Oie-Pikine section (12 km) which should be completed by December 2009. Subsequently, it initiated a process for the construction of the last 20 km between Pikine and Diamniadio under a Public-Private–Partnership (PPP) with public and private funds on the basis of a 30-year concession with the installation of toll stations. The route of the highway runs across irregular, unserviced and flood-prone districts. The project will: (i) restructure these districts, as well as develop and build houses and public utilities and commercial infrastructure over a 165 ha resettlement area which will be fully serviced; and (ii) close the uncontrolled refuse tip at Mbeubeuss in the Dakar region after identifying an interim refuse disposal site and conducting studies on the construction of a waste burial centre. Most of the people affected by the project (3350 families) will be rehoused in this new resettlement area. The remaining 30% will receive cash compensation, as they have requested. 2. The project will contribute to: (i) improvement in the overall operation of the transport system to support the accelerated growth strategy put in place by Senegal; and (ii) strengthening regional integration through better competitiveness of Dakar Port and implementation of the sub-regional rules concerning facilitation of transport. Since the Dakar-Diamniadio section forms part of the Dakar-Bamako-Ouagadougou-Niamey trans-West African highway, it is the gateway to Dakar Port for trade with Mali and parts of the other hinterland countries and Guinea. Specifically, the project will create a rapid link between the heart of Dakar and Diamniadio, which is the gateway to the new economic development pole, and will improve the living conditions of people living near the road as well as those affected by the project 3. The project has 4 components, and will be implemented from July 2009 to May 2014. For Component A “Highway Construction” proposed for Bank financing, the procurement process which, in February 2009, led to the selection of a concessionary company, was considered acceptable by the Bank. The total project cost is estimated at UA 335.60 million, comprising UA 231.40 million in foreign exchange and UA 104.20 million in local currency. For the financing of Component A (PPP), the contribution expected from the private concessionary company is about 42% of the cost of the works, excluding expropriation costs. The remaining 48% of the cost will be contributed by the Government and donors (see Annex B1, which gives details on the sections as well as the logical framework and key factors of the PPP). ADF contribution stands at UA 45 million. 4. The direct beneficiaries of the project will be the transport users of the Dakar region and the inhabitants (300,000) of the Pikine Irrégulier Sud (PIS) district. The project will reduce overall transport costs and improve urban mobility. It will improve the living environment of the inhabitants of PIS by protecting their district from flooding, by facilitating access to transport and security services (fire safety, for example) and by carrying out land regularization. Similarly, the negative impacts of the existing refuse tip at Mbeubeuss on pollution of the air, groundwater and market gardening will be eliminated. The project will also benefit the entire sub-region because it will serve as access road to Dakar Port which is one of the access poles from the hinterland of the sub-region to the outside world.

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Needs Assessment 5. The extremely rapid increase in Dakar’s population and the development of districts have not been accompanied by any significant decentralization of economic and social activities and an integrated transport strategy. This has an increasingly negative impact on the country’s economic development given the importance, on GDP formation, of the services and industrial sectors, which are mainly concentrated in Dakar (85% of economic activity is concentrated in Dakar). The major projects initiated by the Senegalese Authorities (new airport, special economic zone, Diamniadio industrial platform, the mineral port, etc.) to support the accelerated growth strategy are mainly located in the Dakar Region. The reduced travel time on entering and exiting Dakar will contribute to the achievement of the objectives of this strategy. Value Added for the Bank 6. This project is one of the first PPP projects in the road sub-sector. It is therefore in keeping with the objectives of NEPAD which consist in promoting private sector participation in the financing of infrastructure. Since this is the Bank’s first experience in an operation involving private and public financing, the project will serve as a model to give impetus to the PPP mechanism. Knowledge Management 7. To effectively draw lessons from this project, a consultant (Egisroute) has already been financed to provide project management assistance. For specific issues relating to the legal and financial aspects of the PPP, the consultant will rely on the appropriate specialized APIX advisers (Norton Rose and Benjamin de Rothschild firm). In order to establish the key impact indicators prior to project start up and their assessment during, and at the end of the project, a consultant will be recruited. Information and knowledge will be managed by the ‘Monitoring-Evaluation Unit’ of APIX and will be disseminated through the Websites of APIX and the donors (AFD, ADB and WB) and in sensitization workshops organized by APIX.

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SENEGAL: Dakar-Diamniadio Highway Project Project Logical Framework

Start-up Date : July 2009 Completion Date : December 2014 Design Team : Messrs. B. TRAORE, M. MBODJ, M. SOUARE, SNFO, OINF.1, R. GAILLARD, OINF.0

HIERARCHY OF

OBJECTIVES

EXPECTED OUTCOMES by sectors and

corresponding themes

REACH

PERFORMANCE INDICATORS Source and Method

INDICATORS OF OBJECTIVES AND TIMEFRAME ASSUMPTIONS RISKS

GOAL Improve the general operation of the transport system to support the Accelerated Growth Strategy and promote regional integration.

Impact 1.1. Transport system reformed and state of the road network improved.

Beneficiaries 1.1. Countrywide. 1.2. Sub-region

Impact Indicators 1.1 Rate of national road network in good condition 1.2 Urban mobility index in Dakar 1.3 Growth of port traffic concerning neighbouring countries Sources: Ministries in charge of Highways and Transport, CETUD, PAD Methods: statistics prepared, specific surveys and studies

1.1 50% increase in the length of the network in good condition between 2000 and 2015by 2014 1.2 Urban mobility index increases by 30% between 2002 and 2015 1.3 Traffic through Dakar Port concerning neighbouring countries (Mali, Guinea) increases by 15%between 2002 and 2015 Sources: Ministries in charge of Highways and Transport, CETUD, PAD Methods: Statistics prepared, specific surveys and studies

1.1. Non consolidation of achievements of PST2 and delays in PAMU project implementation 1.2. Non-application of regional regulations on transport facilitation and control of axle load applied Mitigation Measures: (1) FERA which was one of the last reforms has been put in place, but it needs to be consolidated by securing resources from fuel charges and, after the two urban projects (UP), PRECOL financed by the World Bank whose works will start soon under the PAMU should strengthen and broaden the outputs of the two Ups, and (2) since 2003, with the support of donors including the Bank, the ECOWAS Region States have adopted the various texts relating to facilitation and are committed to implementing them by 30/12/2009

PROJECT OBJECTIVE 1. Provide a rapid link between the heart of Dakar and Diamniadio, gateway to a new economic development pole and improve the living environment of people living in the vicinity of the road. .

1. Travel time significantly reduced 2. High economic operator satisfaction 3. living environment of the population and families improved .

Dakar Region PIS district

1. Rate of reduction in travel time on the stretch between Dakar and Diamniadio 2. Percentage of economic operators who consider transport as an obstacle; 3. Number of people and families rehoused in more satisfactory conditions Sources : Ministries in charge of Highways and Transport, APIX User and Transporter Associations Methods : statistics prepared, surveys

1. By 2014, the average travel time on the stretch between Dakar and Diamniadio falls from 90 mn in 2008 2 hours to 45 minutes; 2. Percentage of economic operators who consider transport to Dakar as a major obstacle drops from 35% in 2008 to 10% in 2014; 3. As from 2014 (i) at least 200,000 people are not exposed to flooding during the rainy season; (ii) 2000 families or 20 000 persons benefit from housing in fully serviced areas and the land situation regularized Sources : Ministries in charge of Highways and Transport, APIX, CETUD, Users and Transporters’ Associations; Methods: Statistics prepared, surveys on the highway and project areas.

1. Toll avoidance and its impact on the management of the concession during the operational phase 2. Mitigation Measures: Toll sensitivity studies show that even with a 20 to 30% decline in traffic, the financial rate of return is still guaranteed

ACTIVITIES AND INPUTS 1. The Dakar- 1. Length of highway built under 1. 20 km of highway constructed and 25 km with toll 1. Government difficulties in mobilizing

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HIERARCHY OF

OBJECTIVES

EXPECTED OUTCOMES by sectors and

corresponding themes

REACH

PERFORMANCE INDICATORS Source and Method

INDICATORS OF OBJECTIVES AND TIMEFRAME ASSUMPTIONS RISKS

1. Construction of highway and installation of toll equipment (UA 206.96 million) 2. Development of the Tivaouane Peul resettlement area (UA 75.86 Million) 3. Restructuring of PIS (UA 38.59 million) 4. Management and monitoring of project implementation (UA 6.73 million)

Diamniadio highway has a 2x3 lane highway on the first 2 sections (12 km) and a dual carriageway on the last 20 km section; 2. Project affected persons compensated, reception facilities completed to the satisfaction of the PAPs and Mbeubeuss closed 3. PIS district restructured 4. Population sensitized and project monitoring carried out.

Space linked to the Dakar-Diamniadio highway PIS and Tivaouane Peulh

PPP with toll equipment 2. (i) Number of people satisfactorily compensated, (ii) area fully serviced and public utilities ; number of houses built, (iii) measures taken to close Mbeubeuss 3. (i) Area restructured and number of socio-economic facilities available, length of serviced roads etc. ; (ii) level of regularization of title deeds for dwellings in PIS ; 4. Number of people sensitized, number of reports regularly produced on the status of project management assistance, the audit and monitoring evaluation.

equipment ; 2. (i) 1200 families compensated in cash in 2009 and 1700 families rehoused on the resettlement site between 2011 and 2012, (ii) 80 ha resettlement site developed at Tivaouane Peul in 2010 with the construction of at least 2 primary schools totalling 30 classrooms built, 1 secondary school with 24 classrooms, 2 health posts, 1 public market, 1 multi-purpose sports ground, 2 mosques and 1 socio-cultural centre built; between 2009 and 2010 Mbeubeuss is closed, the work to operationalize a temporary waste burial centre is carried out and the study on the new Waste Burial Centre is conducted and validated. 3. PIS : 860 ha of the district restructured in 2013, with 27 km of serviced streets, 1x2000 pupil CEM, 4 health centres, 1 sports stadium, 1 cultural centre built, rehabilitation of 11 primary schools and 4 existing markets and all the dwellings of the priority programme have land certificates; 4. As from 2010: (i) a large number pf people in the project area sensitized annually on road safety, environmental protection and on the toll highway concept ; preparation of quarterly status reports and annual audit and monitoring-evaluation reports.

counterpart funds to finance investments and pay compensation for expropriations. 2. Continuing support of population for the resettlement policy by clearing project rights-of-way; 3. Significant works cost overrun after invitations to bid or in works execution phase Mitigation Measures: (1) risks relation to the mobilization of counterpart funds are mitigated by the strong commitment of the Government to this project; the fact that the expected contribution by the Government of about CFAF 12.5 billion can be borne by the budget and the possibility for the Government to raise a bond borrowing on the market for the project; (2) the benefits of a better future living environment will enhance acceptance of the project by the population; and (3) the risks of additional costs are mitigated by: (i) the fact that the concession contract is firm and non reviewable, and that (ii) for the building sub-sector, prices are often better controlled and there are enough competent SMEs for competition to take place during competitive bidding, and (iii) there is no slippage on the finalization of final design for the works in PIS and RZ and the related invitation to bid. .

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Implementation Schedule

1 STRATEGIC ORIENTATION AND OBJECTIVES 1.1 Project Links with Country Strategy and Objectives 1.1.1 The principal objectives of the country’s PRSP II (2006-2010) are broken down into the following four priority areas: (i) create wealth through growth required to reduce poverty; (ii) improve access to basic social services; (iii) provide social security and manage risks and disasters; and (iv) promote good governance and decentralized and participatory development. The four prime levers emerging from these four strategic priority areas are: (i) wealth creation; (ii) capacity-building and promotion of basic social services; (iii) improved living conditions for vulnerable groups; and (iv) promotion of good governance. 1.1.2 One of the reasons for the failure to achieve accelerated economic growth is the relatively high level of production costs, as well as the poor development of infrastructure to support economic activity, with the exception of telecommunications. The persisting problems of urban mobility in Dakar, resulting in significantly longer travel times, are undermining the competitiveness of the economy. This project will help to remove the constraints related to traffic congestion at the entry to Greater Dakar. In this respect, it is in keeping with the country’s development strategy and objectives, in particular pillar 1 of the PRSP and levers (i) and (iii) of the strategy. 1.2 Justification for Bank Intervention 1.2.1 The Bank’s strategy for Senegal for the 2005-2009 period is based on two pillars: (i) improvement of the business environment with a view to achieving accelerated growth; and (ii) improved access to basic infrastructure. This is reflected in the pursuance of ongoing operations, the preparation of new operations under ADF XI in the areas of improvement of the business environment, water, sanitation, transport (roads and railway). This highway project is consistent with this strategy. It will help to improve the mobility of goods and persons in the region of Dakar (thereby improving the business environment), as well as the living environment of people in the vicinity of the road. Furthermore, as part of its policy to integrate and open up the hinterland countries, the Bank has, with cofinancing from other donors, undertaken the improvement and rehabilitation of the Dakar-Bamako highway by the South, of which this project is the first section. Thus, from 2000 to 2004, the Bank financed the rehabilitation of the Diamniadio-Mbour-Fatick-Kaolack road with the European Union (EU) and is currently financing the Kédougou-Saraya and Saraya-Mali border sections in cofinancing with the WADB, IDB, JBIC and JICA, while the EU is financing the Birkilane-Tambacounda section. 1.2.2 The project will have a very significant impact on the implementation of the Government’s accelerated growth strategy. Indeed, by its developmental nature for the Cape Verde peninsula, it is a prerequisite for the implementation of the major development projects of the Diamniadio economic pole (new airport, new mineral terminal, and the Diamniadio socio-economic platform) and for regional integration (strengthening the competitiveness of Dakar Port). The World Bank and AFD will intervene in the resettlement of project affected persons, the restructuring of the districts, and project management. The Bank’s assistance has been sought in a request from the Ministry of the Economy and Finance, and it will contribute to the Government’s subsidy to the concessionary company for the construction of the highway. In March 2009, the Government reaffirmed the priority given to this project by requesting that the total amount available on its ADF allocation be earmarked for this project.

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1.3 Donor Coordination 1.3.1 In Senegal, the coordination and monitoring of PRSP implementation are carried out by a National Steering Committee (CNP) which, at sector level, is supported by Ministerial Committees (CM), including the Transport Sector Committee. Periodic meetings are organized with the donors. To finance this project, the Government contacted several donors (World Bank, ADF, AFD, JICA, South Korea, the Nigeria Trust Fund and the OPEP Fund). The World Bank, ADF and AFD confirmed their interest in the project. The Bank fielded joint missions with the World Bank (WB) and the French Development Agency (AFD) for project preparation (from 23 March to 7 April 2008), then for project appraisal (24/11/2008 to 05/12/2008). However, in view of the time taken by the Government to recruit the concessionary company, the Bank had to field a mission from 9 to 24/04/2009 to finalize the project appraisal. Following each of the joint missions, the financing plan, the loan conditions, the Aide Memoire and performance indicators of the project were jointly prepared by the donors involved. Furthermore, the different project designs were reviewed jointly by the donors, who also shared their experiences on similar projects. Such coordination will continue through the dialogue platforms in which the Bank’s Dakar Regional Office (SNFO) participates and through joint supervision missions by the donors of this project. 1.3.2 The following table gives an indication of the share of the transport sector in GDP formation, as well as the levels of donor contributions. It shows that the Government, with 52.81% of total investments, is the most important contributor to the financing of the sector from 2000 to 2006.

Table 1.1 Impact of Transport Sector in GDP

Sector or Sub-sector Importance in % GDP in % of Exports in % of Labour 2004 2005 2006 2004 2005 2006 2004 2005 2006 Transport Sector 4.3% 4.2% 4.1% 4.4% 5.4% 5.5% 1.1% 1.1% 1.1% Road Sub-sector 1.6% 1.5% 1.6% NA NA NA Rail Sub-sector 0.4% 0.3% 0.3% 1.1% 1.4% 1.5% NA NA NA Air Transport Sub-sector 0.8% 0.8% 0.8% 3.0% 3.6% 3.6% NA NA NA Maritime sub-sector 0.03% 0.03% 0.03% 0.01% 0.00% 0.00% NA NA NA Ancillary Transport Services 1.5% 1.5% 1.3% 0.3% 0.4% 0.4% NA NA NA

Stakeholders – Annual Public Expenditure of Transport Sector (averages in CFAF million) Donors

Years Total Govt. ADF IDA EU AFD WADB

Arab Fund and Others

(Private at PAD port)

2000 to 2003 in MCFAF 105 689 70 367 3 675 10 449 13 384 2 537 0 5 142 136 in% 100.00% 66.58% 3.48% 9.89% 12.66% 2.40% 0.00% 4.86% 0.13%

2004 in MCFAF 68 482 32 961 8 903 10 795 9 655 2 973 0 537 2 658 in% 100.00% 48.13% 13.00% 15.76% 14.10% 4.34% 0.00% 0.78% 3.88%

2005 in MCFAF 55 295 28 534 52 17 705 7 789 937 0 278 0 in% 100.00% 51.60% 0.09% 32.02% 14.09% 1.69% 0.00% 0.50% 0.00%

2006 in MCFAF 74 415 28 612 0 5 150 6 612 1 142 299 2 600 30 000 in% 100.00% 38.45% 0.00% 6.92% 8.89% 1.53% 0.40% 3.49% 40.31%Total between 2000 and 2006 In MCFAF 303 882 160 475 12 630 44 099 37 440 7 589 299 8 556 32 794 in% 100.00% 52.81% 4.16% 14.51% 12.32% 2.50% 0.10% 2.82% 10.79%

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Level of Coordination

Existence of Thematic Groups Yes/No Existence of an Overall Sector Programme Yes (PST1 2nd PST being prepared)/No Role of ADB in Aid Coordination Lead/Member/No. Give name of lead donor * Source : PST Coordination; Arab Funds (IDB, Kuwait Fund, OPEC Fund, Saudi Fund) and other funds (ECOWAS

Fund, Nordic Fund)

2 DESCRIPTION OF PROPOSED PROJECT 2.1 Project Objectives 2.1.1 The project objectives are to: (i) improve the overall operation of the transport system so as to support the accelerated growth strategy and promote regional integration; and (ii) provide a rapid link between the heart of Dakar and Diamniadio, gateway to a new economic development pole, and improve the living environment of people living in the vicinity of the road. 2.2 Project Components 2.2.1 The components of the entire project are summarized below.

Table 2.1 Summary of Project Components

N. Component Name Estimated Cost in MUA

Description of Components

A - CONSTRUCTION OF HIGHWAY WITH TOLL STATIONS

214.41

A.1 - Installation of toll station on the Patte d’Oie – Pikine section (5 km) A.2 - Construction of the 2x3 lane highway section on a 33 m right-of-way between

Pikine and Thiaroye (2.8 km) with the construction of junctions, interchanges and toll stations

A.3 - Construction of the dual carriageway section of highway on a 33km right-of-way between Thiaroye and Diamniadio (17.6 km) with the construction of junctions, interchanges and toll stations

A.4 - Construction of stormwater drainage structures and installation of signs and a highway protection system

A.5 - Environmental protection works and measures A.6 - Clearing the highway rights-of-way

B - DEVELOPMENT OF THE TIVAOUANE PEUL RESETTLEMENT SITE

75.86 B.1 - Clearing the rights-of-way in the resettlement zone B.2 - Development of the resettlement zone (earthworks, parcelling, full servicing,

construction of more than 2000 dwellings, places of worship, social services, wastewater treatment stations, etc) and operation to move the people to the site.

B.3 - Construction of primary roads connecting this zone to the road network B.4 - Closure of the Mbeubeuss refuse tip (find a temporary site, close to the

Mbeubeuss tip and conduct a study on the construction of a final Waste Burial Centre (CET) at Bargny and for the long-term treatment of the Mbeubeuss refuse tip) ;

B.5 - Works and environmental protection measures, particularly as regards MBAO forest;

B.6 - Works control and supervision C -

URBAN RESTRUCTURING OF PIKINE IRREGULIER SUD

38.59 C.1. Clearing of PIS rights-of way C.2. Development of the road network and networks for the drainage and disposal of

storm-and waste water. C.3. Establishment of development poles (Camp Thiaroye, Pôle Seven –Up, Marché

Waranka) C.4. Studies and support measures C.5. Works control and supervision

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D - MANAGEMENT AND

MONITORING OF PORJECT IMPLEMENTATION

6.73 D.1 - Operating costs (personnel, materials, supplies, external services) D.2 - Project management assistance APIX (AGETIP, Consulting firm) D.3 - Monitoring-evaluation of impact indicators D.4 - Accounting and financial audit and technical audit D.5 - Sensitization on STD/AIDS, road safety and environmental protection including

transport and climate change, as well as opportunities for Clean Development Mechanisms (CDM) and Sustainable Development Mechanisms (SDM) in the context of the controlled refuse tip and the road project (carbon credits).

2.3 Technical Options Chosen and Considered 2.3.1 Four route options were considered and their costs and social and environmental impacts examined. These are: (i) extension of the North Exit Road (VDN), (ii) enlargement of the Niayes road; (iii) the 1978 Electrowatt route; (iv) the raised section of the RNI. A detailed multiple criteria analysis, based on technical, social, economic, financial, environmental and mobility criteria, was conducted in order to select the optimal route. This analysis showed that the best route retained is Route 3 which is the 1978 Electrowatt route slightly modified to provide an alternative to users not wishing to pay the toll as indicated in the following table.

Table 2.2 Route Options Considered

Route 1 (VDN) Route 2 (Niayes Road) Route 3 (1978 Electrowatt) (Retained)

Route 4 (raised RN1)

(i) runs along the coast in an area with poor soil geotechnical characteristics and consequently difficulties and high construction and maintenance costs; (ii) entails significant expropriations; (iii) route 6km longer than routes 3 and 4; (iv) outlying route, therefore no impact on urban mobility; (v) traffic and toll revenue not high enough for a good PPP (CFAF 14.20 billion per year).

(i) Fully serviced area with highly dense urban fabric and a lot of commercial activity; (ii) major thoroughfare for public transport, therefore necessary to construct many pedestrian passageways; (iii) entails highly significant expropriations; (iv) route 6 km longer than route 3 and 4; and (v) traffic and toll revenues not high enough for a good PPP (about CFAF 16 billion per year).

(i) crosses 6 km of unserviced irregular districts subject to frequent flooding; (ii) a restructuring plan of the area is underway with the possibility of land regularization; (iii) entails significant expropriations; (iv) major impact on urban mobility; (v) suitable for a PPP, toll revenues are the highest (about CFAF 24.5 billion per year).

(i) Very high construction costs and harms the environment ; (ii) entails fewer expropriations but has no positive impacts on the precarious districts crossed; (iii) traffic and toll revenues not high enough for a good PPP (about CFAF 18 billion per year).

2.3.2 Two options were considered (highway or expressway) and the highway was retained given the weak impact on speed of an expressway in a highly dense urbanized environment. The highway requires a special site marked off by an enclosure wall on the most urbanized part of the route. Regarding the size of the roadway and lanes, several options (all asphalt structure, mixed structure and semi-rigid structures with bases treated with hydrocarbon binders) were considered taking into account the soil characteristics, the availability of materials (laterite, crushed gravel), future traffic and its intensity, the impact of the longitudinal section on stormwater drainage in the area and, to a certain extent, of climate risk. The technical options retained for each section are summarized below.

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Table 2.3 Technical Options Chosen for each Section

Between PIKINE and the THIAROYE BPV. THIAROYE BPV and DIAMNIADIO (i) 2.8 km long, 33 m platform in standard sections; (ii) 2 x 3 lane roadways each with a 4m central reservation, two 3m paved emergency lanes, and two 1m berms ; (iii) public lighting. The roadway structure is composed of 6cm of semi-granular bituminous concrete (SGBC) as a wearing course, 12 cm of bituminous gravel (BG) for the base course and 25 cm of crushed gravel (CG) for the sub-base. The thicknesses for the junction slip roads are 6 SGBC/9BG/20CG

(i) length 17.6 km, 33 m platform ; (ii) roadway 3.5 m lane dual carriageway with an 11 m unpaved central reservation, two 3 m emergency lanes and two 1.00 m berms; (iii) the Thiaroye diamond-shaped interchange, the Keur Massar, Rufisque Ouest, Rufisque Est and Diamniadio trumpet interchanges; (iv) the two 3.5 m lane connecting road to Diamniadio and the RN1 connecting interchange, (v) 19 overpasses and underpasses, and one underpass crossing the railway line; and (vi) six open and/or closed pay-toll systems and lighting over 2.70 km. The structure is composed of 6 cm of semi-granular bituminous concrete (SGAC) as a wearing course, 12 cm of bituminous gravel (BG) as a base course and 25cm of crushed gravel (CG) as a sub-base. The thicknesses of the junction slip roads are 6SGBC/9BG/20CG. It should be noted that this section is two-lane because of the traffic which , early in the year, is less than on the first section.

2.4 Project Type 2.4.1 In view of the significant financial resources to be mobilized and the toll acceptability studies for an average daily traffic of nearly 40,000 vehicles, the Government has decided to implement this project on the basis of a public-private partnership (PPP). To do so, in the first phase, it constructed the first two sections (Malick Sy-Patte d’Oie and Patte d’Oie-Pikine) with its own resources, and has contacted the donors to finance the third and last section (Pikine-Diamniadio) with the private sector. The contribution expected from the private sector is about 42% of the cost of the component relating to the construction of the highway, excluding expropriation costs. The remaining 58% will come from the Government and donors (see details of the sections in Annex B.1). 2.5 Project Cost and Financing Arrangements Estimated Cost 2.5.1 The estimated costs (net of taxes and customs duties) of the entire project and of the ADF component (Component A- part of project jointly financed by ADF, AFD, the concessionary company and the Government) are based on the final design and finalization of the concessionary company’s draft contract which was prepared in March 2009. A comparative analysis of the cost of the concession has been conducted on the scenario of implementing the project with public financing or of constructing the Keur Massar-Diamniadio section with public financing and the Pikine-Keur Massar under PPP. This analysis concluded that continuing with the PPP as designed is more advantageous. A combined physical contingencies/financial contingencies coefficient of 5.85% has been applied to Components B, C and D. For Component A, since the contract with the concessionary company is firm and cannot be revised, it is not included in the provisions for physical and financial contingencies. These costs are summarized in Tables 2.4 and 2.5 respectively.

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Table 2.4 Summary Cost Estimate by Component for Entire Project

COMPONENT CFAF Million UA Million US$ Million FE LC. Total FE LC. Total FE LC Total

A. CONSTRUCTION AND EQUIPPING OF HIGHWAY 106 644.67

51 361.17

158 005.83

144.72 69.70

214.41

216.36 104.20 320.56

B- DEVELOPMENT OF RESETTLEMENT ZONE 39 495.20

13 521.30 53 016.51 53.59 18.35 71.94 80.13 27.43 107.56

C – RESTRUCTURING OF PIKINE IRREGULIER SUD (PIS) 18 141.82 8 971.61 27 113.43 24.62 12.17 36.79 36.81 18.20 55.01 D – PROJECT MANAGEMENT AND MONITORING 2 870.50 2 090.86 4 961.36 3.90 2.84 6.73 5.82 4.24 10.07

BASE COST 167 152.19 75

944.94 243

097.13

226.82

103.06

329.88

339.12

154.08 493.19 Physical contingencies 922.19 230.55 1 152.74 1.25 0.31 1.56 1.87 0.47 2.34 Price escalation 2 447.78 611.94 3 059.72 3.32 0.83 4.15 4.97 1.24 6.21

Total 170 522.16 76

787.43 247

309.59

231.40

104.20

335.60

345.95

155.79 501.74

Table 2.5 Summary Cost Estimate for ADF Component

COMPONENTS CFAF Million UA Million US$ Million FE LC Total FE LC. Total FE LC. Total

A – HIGHWAY CONSTRUCTION AND EQUIPMENT - Road works 76 800.00 19 200.00 96 000.00 104.22 26.05 130.27 155.81 38.95 194.76 - Work on structures 13 854.40 3 463.60 17 318.00 18.80 4.70 23.50 28.11 7.03 35.13 - Works and equipment of toll stations 15 319.83 3 829.96 19 149.79 20.79 5.20 25.99 31.08 7.77 38.85 - Environmental protection works 670.43 167.61 838.04 0.91 0.23 1.14 1.36 0.34 1.70 - Compensation and clearing of

highway area (cash) 24 700.00 24 700.00 33.52 33.52 50.11 50.11 BASE COST 106 644.67 51 361.17 158 005.83 144.72 69.70 214.41 216.36 104.20 320.56 Physical contingencies Price escalation Total 106 644.67 51 361.17 158 005.83 144.72 69.70 214.41 216.36 104.20 320.56

2.5.2 The summary costs by expenditure category for the entire project as well as for the ADF Project are presented in Tables 2.6 and 2.7 below respectively:

Table 2.6

Summary Cost by Expenditure Category for the Entire Project Expenditure Category CFAF Million UA Million US$ Million

FE LC Total FE LC Total FE LC Total A Goods B – Works/PPP* 156 787.01 39 196.75 195 983.76 212.76 53.19 265.95 318.09 79.52 397.61C –Consultancy Services 8 387.04 3 470.00 11 857.03 11.38 4.71 16.09 17.02 7.04 24.06D –Miscellaneous D.1- Expropriation 32 783.66 32 783.66 44.49 44.49 66.51 66.51 D.2- Others 1 978.14 494.54 2 472.68 2.68 0.67 3.36 4.01 1.00 5.02BASE COST 167 152.19 32 783.66 32 783.66 226.82 103.06 329.88 339.12 154.08 493.19Physical contingencies 922.19 230.55 1 152.74 1.25 0.31 1.56 1.87 0.47 2.34Price escalation 2 447.78 611.94 3 059.72 3.32 0.83 4.15 4.97 1.24 6.21Total 170 522.16 76 787.43 247 309.59 231.40 104.20 335.60 345.95 155.79 501.74

* NB The purpose of the Bank’s financing is to participate in the government subsidy to the holder of the concession which comprises a series of indissociable goods, services, works, as well as intangible assets. This expenditure category, which is specific to PPP concession contracts, does not fit into the current classification of the Bank. Consequently, in view of the significant works in the PPP, it was agreed that all should be put in the “works” category

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Table 2.7 Summary Cost by Expenditure Category for ADF Component

Expenditure Category CFAF Million UA Million US$ Million FE LC Total FE LC Total FE LC Total

A - Goods B – Works (PPP) 106 644.67 26 661.17 133 305.83 144.72 36.18 180.89 216.36 54.09 270.45 C – Consultancy Services D - Miscellaneous D.1- Expropriation 24 700.00 24 700.00 33.52 33.52 50.11 50.11 D.2- Others BASE COST 106 644.67 51 361.17 158 005.83 144.72 69.70 214.41 216.36 104.20 320.56 Physical contingencies Price escalation Total 106 644.67 51 361.17 158 005.83 144.72 69.70 214.41 216.36 104.20 320.56

Financing Arrangements 2.5.3 The project will be cofinanced by ADF, AFD, the Government and the concessionary company and through parallel financing with other donors (IDA and AFD). ADF’s current contribution of UA 45 million represents 13.41% of the total project cost, net of taxes and customs duties. This contribution is intended to finance Component A. Components B, C and D will be financed by the other donors, as well as the Government. The source of finance known as “GOVT/Donors” has been introduced to indicate possibilities of intervention to donors who have been requested to participate and have agreed (JICA, NTF, and South Korea) and/or ADF if the allocation in 2010 allows for intervention of more than UA 45 million. However, if other donors do not accept to intervene, the Government will bear this part of the financing. The source of finance entitled “GOVT” indicated the part of financing which only the Government can bear, namely cash compensations for expropriation. Evidence of the commitment of other donors (AFD and WB) to financing the project, as well as securing the Government counterpart funds are conditions for the ADF loan for this project. 2.5.4 The financing plans by source for the entire project and for the ADF component are presented in Tables 2.8 and 2.9 below.

Table 2.8 Sources of Finance for Entire Project

(In UA million)

Source FE LC Total %

ADF LOAN 36.00 9.00 45.00 13.41% CONCESSIONARY 60.12 15.03 75.15 22.39% GOVT/OTHER DONORS 37.85 9.46 47.31 14.10% IDA 54.70 15.54 70.23 20.93% AFD 42.73 10.68 53.41 15.92% GOV 0.00 44.49 44.49 13.26% Total 231.40 104.20 335.60 100%

Table 2.9

Source of Finance for ADF Component (in UA million)

Source FE LC Total % ADF LOAN 36.00 9.00 45.00 20.99% CONCESSIONARY COMPANY 60.12 15.03 75.15 35.05% GOVT/OTHER DONORS 28.70 7.18 35.88 16.73% AFD 19.89 4.97 24.86 11.60% GOVT. 0.00 33.52 33.52 15.63% Total 144.72 69.70 214.41 100%

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2.5.5 The expenditure schedules by component for the entire project and for the ADF Component are presented in Tables 2.10 and 2.11 below:

Table 2.10 Expenditure Schedule by Component for Entire Project

(in UA million) Components 2009 2010 2011 2012 2013 2014 Total

A. CONSTRUCTION AND EQUIPMENT OF THE HIGHWAY 34.94 54.12 46.39 49.86 29.11 214.41B. DEVELOPMENT OF THE RESETTLEMENT AREA (RA) 5.48 32.69 26.26 6.97 0.54 0.00 71.94C. RESTRUCTURING OF PIKINE IRREGULIER SUD (PIS) 0.80 9.84 11.64 8.63 5.89 36.79D. PROJECT MANAGEMENT AND MONITORING 0.67 1.35 1.35 1.35 1.35 0.67 6.73BASELINE COST 41.90 97.99 85.63 66.80 36.88 0.67 329.88Physical Contingencies 0.09 0.61 0.55 0.22 0.09 0.00 1.56Price Escalation 0.24 1.62 1.45 0.60 0.25 0.00 4.15TOTAL COST 42.23 100.23 87.63 67.62 37.22 0.67 335.60

Total in % 12.58% 29.87% 26.11% 20.15% 11.09% 0.20% 100.00

%

Table 2.11 Expenditure Schedule by Component for ADF Component

(in UA million) Components 2009 2010 2011 2012 2013 2014 Total

A. CONSTRUCTION AND EQUIPMENT OF HIGHWAY - Works/PPP 17.97 45.84 38.11 49.86 29.11 180.89 - Compensation and clearing of highway area (cash) 16.96 8.28 8.28 33.52BASE COST 34.94 54.12 46.39 49.86 29.11 214.41Physical contingencies Price escalation TOTAL COST 34.94 54.12 46.39 49.86 29.11 214.41Total in % 16.29% 25.24% 21.63% 23.25% 13.58% 100.00%

2.5.6 The expenditure schedules by source of finance for the entire project and for the ADF Component are presented in Tables 2.12 and 2.13 below.

Table 2.12 Expenditure Schedule by Source of Finance for Entire Project

(in UA million)

Source 2009 2010 2011 2012 2013 2014 Total ADF LOAN 7.78 20.72 16.50 45.00CONCESSIONARY COMPANY 2.06 9.30 18.48 25.63 19.68 75.15GOVT/ OTHER DONORS 5.72 6.79 25.37 9.43 0.00 47.31IDA 1.35 29.43 25.52 10.14 3.79 0.00 70.23AFD 9.14 23.77 9.04 6.48 4.31 0.67 53.41GOVT 21.91 11.29 11.29 44.49Total 42.23 100.23 87.63 67.62 37.22 0.67 335.60Total in % 12.58% 29.87% 26.11% 20.15% 11.09% 0.20% 100%

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Table 2.13 Expenditure Schedule by Source of Finance of ADF Component

(In UA million) Source 2009 2010 2011 2012 2013 2014 TotalADF LOAN 7.78 20.72 16.50 45.00CONCESSIONARY COMPANY 2.06 9.30 18.48 25.63 19.68 75.15GOVT/OTHER DONORS 2.22 24.23 9.43 35.88AFD 8.14 15.82 0.91 24.86GOVT 16.96 8.28 8.28 33.52Total 34.94 54.12 46.39 49.86 29.11 214.41

% 16.29% 25.24% 21.63% 23.25% 13.58% 100.00

%

Table 2.14 Expenditure Schedule by Source of Finance of ADF Component

(In CFAF million) Source 2009 2010 2011 2012 2013 2014 Total

ADF LOAN 5 730.74 15 269.26 12 162.49 33 162.49CONCESSIONARY COMPANY 1 514.41 6 855.65 13 615.98 18 889.49 14 505.05 55 380.58GOVT/OTHER DONORS 1 636.77 17 853.91 6 949.20 26 439.88AFD 6 000.00 11 654.77 668.12 18 322.89GOVT 12 500.00 6 100.00 6 100.00 24 700.00Total 25 745.14 39 879.68 34 183.36 36 743.39 21 454.26 158 005.83% 16.29% 25.24% 21.63% 23.25% 13.58% 100.00%

2.6 Project Area and Beneficiaries 2.6.1 The direct project area is the Dakar Region, but the project impact reaches beyond this region to the whole of Senegal and ECOWAS. Indeed, since the project is the first link in the Dakar-Lagos Trans-African Highway, its impact will be felt in the ECOWAS countries, in general, and in Mali, Guinea, Guinea Bissau and the Gambia, in particular. The main beneficiaries are: (i) transport users who will have an alternative to improve their mobility; (ii) the 300,000 inhabitants of the PIS who will benefit from a restructured and improved district; (iii) the 3000 families of the PIS who will be resettled in Tivaouane Peul ; (iv) export manufacturers and economic operators involved in regional transport; (v) the inhabitants of Dakar Region who will be less exposed to pollution caused by the uncontrolled Mbeubeuss refuse tip; and (vi) the Government of Senegal, which could attract more private investments by demonstrating the feasibility of PPP. 2.7 Participatory Approach to Project Identification, Design and Implementation 2.7.1 A participatory approach was adopted for the conduct of the project studies. Several meetings and sessions were organized with the beneficiary and/or affected local populations (local administrative and local authorities, local associations, government technical services, religious authorities, representatives of the civil society, local NGOs and other organizations active in the area, local socio-professional actors, etc). Local community meetings were organized in the council areas with the interested parties (district delegates and associations, local associations, etc.). The outcomes of these various sessions were presented at public hearings which helped to define the outlines of the project. The needs of the project beneficiaries were therefore taken into account in the project design, particularly as regards compensations for the PAPs (cash or building of houses), basic socio-economic infrastructures (health centres, schools, places of worship, sports centres, markets, etc.). The meetings and sensitization will be pursued through social intermediation during the project implementation and operational phases.

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2.8 Consideration of the Bank’s Experience and Lessons Learnt in the Project

Design 2.8.1 The lessons learnt from the Bank’s experience in the country concern, in particular, the risks of additional costs due to the quality of the studies, the technical modifications after project approval, and time frames for fulfillment of the conditions for disbursement and procurements. Lessons were also drawn from execution of works on the Malick Sy-Patte d’Oie-Pikine section of the highway, particularly difficulties related to expropriation and clearing of highway areas and the fact that deep patchings not initially foreseen were made as a result of the poor quality of soils. 2.8.2 This project benefited from high quality basic studies in its design; for the conduct of these studies and preparation of the bidding documents, APIX used several experts in the technical, legal, financial, economic, social and environmental areas, etc. The priced bill of quantities of the highway works has been updated by APIX and the concessionary company, taking into account the technical problems encountered during works on the earlier sections of the highway. An institutional and communication mechanism has been put in place to monitor the expropriation and resettlement. Regarding procurements, the Bank will only finance the component concerning the PPP component for which the concessionary company has already been selected. Furthermore, the Project Executing Agency (APIX) received initial training on the Bank’s procedures during the different missions fielded by the Bank as part of the project preparation and for SNFO staff. This training will be deepened during project launching. For the components financed by the other project donors involved from the design studies phase, APIX and AGETIP are already acquainted with their procurement procedures. 2.8.3 As regards the project implementation monitoring component, adequate institutional arrangements were made through APIX and its Highway Project Department. The project will therefore benefit from the quality of the work carried out by APIX and its advisers, as well as the Government’s support for financing the parts already constructed or under construction and for future financing. 2.9 Key Performance Indicators Impact and Implementation Performance Indicators 2.9.1 The key indicators concern: (i) the rate of the national road network in good state, the trend of the urban mobility index in Dakar and the port traffic growth rate for the neighbouring countries; and (ii) improvement of transport conditions by reducing the travel time between Dakar and Diamniadio, the percentage of economic operators who consider transport as a major obstacle, and the number of people and families or persons resettled under more satisfactory conditions. These key indicators are described in detail in the logical framework matrix with implementation time frames. They will be mainly measured through the monitoring and evaluation programme to be put in place for the project. Their sources will be the surveys on project beneficiaries, the periodic project supervision and completion reports, as well as reports produced by the different government services and APIX.

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2.9.2 In addition to the impact indicators, implementation performance indicators will be determined and monitored, in particular: (i) the time frames for effectiveness and fulfilment of the disbursement conditions of the loan; (i) the time frames for the award of contracts financed by the other donors on whom the progress of the highway works depends; and (iii) assessment of the disbursement rates on the basis of the expenditure schedule. Mechanisms for Assessing Project Effectiveness 2.9.3 A Steering Committee has been established to ensure the overall monitoring of project implementation; the Committee organizes periodic meetings and seminars which are open to the civil society. The meetings will use summary reports and monitoring-evaluation indicators prepared by APIX. 3 PROJECT FEASIBILITY 3.1 Economic and Financial Performance 3.1.1 The economic analysis of the highway construction was carried out using the HDM4 model based on a cost/benefit analysis of the ‘with’ and ‘without’ project situations. The costs taken into consideration: (i) the investment costs (net of taxes and customs duties) of constructing the highway (from Patte d’Oie to Diamniadio) and installing the toll equipment, including amounts paid in cash to compensate affected people located on the highway area; and (ii) the operation and maintenance costs, as well as costs for renewal of investments and equipment of the highway and toll stations. The benefits lies in the reduction of overall transport costs (savings on time and the operating costs of vehicles using the highway and vehicles that continue to use the alternative roads which will be less congested as a result of the diverted traffic) and savings on maintenance costs of the alternative roads. The traffic and toll acceptability study concluded on variable diverted traffic from the entry into service of the highway of between 7,000 and 40,000 vehicles/day, depending on the sections. The residual value of the investments for the construction of the highway represents 66.60% after a life span of 25 years. The economic analysis did not take into account the climate risk and the sale of carbon credits, due to lack of data. It did not also take into account the intangible benefits (difficult to convert into currency) as a result of improvement of the living environment of the populations. 3.1.2 The financial analysis was conducted on the basis of the toll revenue and the share of the investment costs borne by the private concessionary company for the highway construction works, excluding expropriation and operating and maintenance costs, as well as costs for renewal of infrastructure and equipment of the highway which will be borne by the concessionary company. Details of these analyses, presented in Annex A.6, are summarized below.

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Table 3.1 Summary of Outcomes of the Economic and Financial Analysis

Financial Rate of Return (FRR) in % 20.16% Net Present Value in million CFAF (NPV) 275.50 Economic Rate of Return (ERR) in % 29.28% ERR for economic benefits reduced by 54% and investment, maintenance and operating costs increased by 98% 12% Discount Rate 12% Residual Value of Investment after 25 years 66.60%

3.2 Environmental and Social Impact Environment 3.2.1 From the environmental standpoint, the project is classified in Category 1 because of its potential direct and indirect impacts. Between 2005 and 2007, an environmental and social impact assessment (ESIA) was conducted, and the different resettlement action plans (RAP) and environmental and social management plans (ESMP) were prepared. The ESIA and RAP summaries were placed in the Bank’s Public Information Centre (PIC) and distributed to the Board on 16/02/2009 and 09/01/2009. The major negative impacts concern: (i) the displacement of 3,350 families and economic and commercial activities to a new fully serviced and built up resettlement area; (ii) nuisances during the works phase; and (iii) environmental impacts related to the crossing of the Mbao classified forest and the possibility of worsening flooding in the marshlands located in some sectors of Thiaroye. 3.2.2 The impact mitigation costs are estimated at CFAF 109.04 billion comprising: (i) CFAF 32.78 billion cash expropriation compensation; (ii) CFAF 51.76 billion for the development of the resettlement area, including the required studies and works for the closure of the Mbeubeuss refuse tip; (iii) CFAF 23.51 billion for development of the refuse dump and sanitation network in the floodable area of PIS, and (iv) CFAF 0.99 billion for the implementation of the ESMP in terms of sensitization and capacity building in monitoring. In addition, the activities included in the concessionary company’s contract will also be carried out; the activities comprise the building of a noise protection wall, replanting of green spaces, improved sanitation and protection of the Mbao classified forest. The project implementation will have positive impacts such as thee restructuring and development of the unhealthy PIS district, the significantly reduced risks and losses due to flooding and difficulties in refuse collection on the health and safety of the 300,000 inhabitants. The closure of the Mbeubeuss uncontrolled refuse tip will have a positive impact on air quality and the risk of soil contamination.

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Climate Change 3.2.3 The effects of climate change are already perceptible in Senegal, even though the impact of human activities on the concentration of greenhouse gas is low, in view of the level of development of the country. The two challenges facing the country are the structural irregularity of rainfall which makes farming systems vulnerable, as well as atmospheric pollution. Climate trends show an increase in temperatures by about 1.2°C since the beginning of the century and 35% reduction in rainfall within the space of a generation. In 1993, Senegal ratified the Vienna Convention and the Montreal Protocol relating to the protection of the ozone layer. It subsequently developed initiatives to protect the ozone layer and signed in June 1992 the Convention on climate change and ratified it in June 1994. Furthermore, it has implemented the 2001Dakar Declaration on the phasing-out of leaded fuel in Africa by 31/12/2005. A number of sector policies have also be implemented, including the Second Transport Sector Programme (TSP 2) and the Urban Mobility Programme one of whose objectives is to enhance the performance of the sector so as to significantly reduce greenhouse gas emissions. 3.2.4 The road traffic in Dakar is highly congested, and has an ageing vehicle fleet that generates high greenhouse gas emissions, especially on the Dakar-Diamniadio highway. The design retained for the highway includes various considerations to mitigate the impact of climate change, such as: (i) the draining of sections of roads to be developed and sizing of hydraulic structures taking into account the rainfall; (ii) the PIS and Tivaouane Peul zones for which sanitation plans have been prepared to address any increase in contamination of the groundwater; (iii) the closure of the Mbeubeuss uncontrolled refuse tip and establishment of a waste burial centre are likely to eliminate emissions of smoke and toxic gas from the tip; and (iv) the planting of trees along the highway, in the resettlement area and in the restructured PIS. The Climate Change Committee of the African Development Bank has selected this highway project as the pilot project and will therefore support it for the monitoring of key performance indicators (KPI) of climate change. Gender 3.2.5 The direct project area has about 532,000 inhabitants, 50% of whom are women. Between 40.6% and 45.8% of the population of the project area are considered to be poor, and women represent 51.8% of these poor people. Of the estimated 64,000 households in the project area, 23% are headed by women who have full responsibility for their families. Of the remaining 77%, women play important roles despite the presence of men. These communities live in a socio-cultural environment strongly marked by the development of interrelationships, the significant participation of both men and women in the production of resources and frequent use of the services made available to them. Activities related to trade and foodstuffs are chiefly the responsibilities of women, who remain predominant in the informal sector workforce. The loss of commercial activities related to fruit production and market gardening will be compensated by the development of other types of activities, such as the marketing of fish and sale of building materials (natural sand and gravel available in the resettlement area), as well as employment inn the building and development of new districts. 3.2.6 Indeed, the project creates several opportunities for support to women, youths and vulnerable groups with the creation of jobs during the implementation and operational phases. For example, in the commercial areas to be established under the project, a certain area will be allocated to women to enable them to develop commercial activities,

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such as catering, sewing and the sale of vegetables and fishery products, or building materials or fruits. The jobs generated by the toll highway (collection of toll levies, refuse collection and periodic cleaning of highway) could be filled by women and youths. The highway will facilitate trade and the rapid transportation of their produce countrywide and within the sub-region. Social 3.2.7 The main negative impact of the project concerns the displacement of the inhabitants of the PIS zone. However, the positive impacts largely outweigh this impact. Indeed, 70% of the 3,350 families affected by the project will benefit from modern housing in a healthier environment, title deeds for their dwelling plots, and modern facilities. It is expected that the PIS district will become an autonomous urban sector capable of stimulating its own economic and social development. Alternatively, this transformed urban centre will provide additional impetus to the future development of the Dakar metropolitan centre with its job-creating potential. Compulsory Resettlement 3.2.8 For the 3,350 project affected families (3,000 on the highway area and 350 on the PIS restructuring roads), there will be no compulsory resettlement. Indeed, nearly 70% of these families have expressed the wish to be resettled, and the remainder have agreed to a cash payment as expropriation compensation. This payment or the deposit of the amounts in a dedicated account will be one of the conditions precedent to first disbursement of the ADF loan. 4 PROJECT IMPLEMENTATION AND MONITORING-EVALUATION 4.1 Implementation Arrangements Executing Agency 4.1.1 The Ministry of the Economy and Finance (MEF) and the Ministry in charge of Roads will jointly assume the role of Project Executing Agency and Concession Granting Authority as stipulated in Decree 2007-170 of 13 February 2007. APIX-SA has been designated as ‘Delegated Concession Granting Authority’ to organize, coordinate and monitor the preparation and implementation of BOT- type projects. It will be mainly responsible for ensuring the accounting and financial monitoring of the project. 4.1.2 APIX is a public limited company with majority public capital, and with the strategic mission of promoting major investments. It comprises several Departments, including the Administrative and Financial Department (DAF) responsible for the financial and accounting management of the project, and the Highway Project Department (DPA) which will be involved in monitoring the implementation of this project. 4.1.3 For the present project, the DPA will be responsible for monitoring its preparation and implementation at thee technical level. The DPA has a staff of 7, comprising 3 engineers, 2 specialists in environmental and social issues, one PPP specialist and a communication specialist. It has been strengthened by technical assistance recruited in 2007 to assume a project management assistance role for Component A, the implementation of which will be under the oversight of the concessionary company. Indeed, the concessionary company will carry out road works, procure toll equipment and

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operate them with its own resources. Similarly, it will ensure the proper delivery of all these services. On this component, APIX will play only a monitoring role. Institutional Arrangements 4.1.4 The operation to clear the rights of way and resettle the persons affected by the project lies on the project implementation critical path. Given the sensitive nature of this operation, a Resettlement and Social Communication Unit (URCS) will be set up in the DPA. The URCS, which will be headed by a sociologist and an urban specialist, will have an office on the project site to communicate with the District Committees, the Urban Resettlement Committees (local representatives of the communities to be resettled or compensated), and to coordinate the activities of the NGOs, government departments and agencies, and other actors involved in the resettlement issues. The URCS will be strengthened by technical assistance financed by the World Bank. 4.1.5 Monitoring and management of the implementation of the public works activities of components B and C, financed by AFD and the World Bank, will be delegated to AGETIP which has proved to be an efficient structure for controlling contracts of this type in different sectors with WB financing. The “Fondation Droit à la Ville” (FDV) [Rights to the City Foundation], a specialized operator in Urban Restructuring and Land Regulation will be contacted for issues relating to land registration and the issuance of surface owner’s rights (SR) to eligible persons in the restructured PIS and resettlement area. Procurement 4.1.6 Under the project, the Bank will finance only the Government subsidy to the concessionary company which will carry out the highway works and manage the toll system. The concessionary company selection process started in 2007 prior to the Bank’s involvement and, in December 2008, led to the selection of the EIFFAGE Group. In accordance with its Rules of Procedure, the Bank carried out an ex post review of this process and noted certain shortcomings in the pre-qualification phase and with regard to some of the provisions of the bidding documents finally approved by the Bank. Following its overall analysis, the Bank concluded that the shortcomings noted had not significantly affected the selection process and therefore considered the process acceptable on the whole. The concessionary company selection process is described in detail in Annex A.4. Disbursement 4.1.7 The direct disbursement method has been retained for the works financed by the ADF loan. In other words, the concessionary company will present its invoices to APIX which will submit them to the Debt and Investments Department (DDI) or to any other structure with the required delegated authority, a payment request made out according to the Bank’s standard format. The payment requests will be made out on the basis of key stages in the implementation of the highway construction works by the concessionary company.

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Audit 4.1.8 The project accounting will be maintained by APIX through its Administrative and Financial Department. This Department has adequate accounting and financial monitoring capacity. An external audit of accounts will be conducted annually by an audit firm to be recruited by APIX on World Bank financing. The TOR will take into account the specific requirements of the ADF as regards project auditing. The audit reports will be submitted to the donors no later than 6 months after the end of each accounting year. National Laws and Regulations 4.1.9 The project was formulated in such a way as to rely as far as possible on existing structures and regulations for its implementation. The financial and procurement management capacities were assessed and considered, overall, to be satisfactory. Thus for BOT-type contracts and to guarantee transparency of the procedure and the balance of power between the concession grantor and the potential concessionary companies, the Infrastructure Council (CI) was established by Law No. 2004-14 of 1 March 2004. The CI is required to give its opinion on the bidding procedure and the preparation of bidding documents at each stage of the process. Similarly, a Procurements Commission has been established to rule on the final choice of concessionary company. The financial management will be carried out by the Administrative and Financial Department of APIX, which has a financial management manual and its statements are audited in conformity with international audit standards. Implementation and Supervision Schedule 4.1.10 The project will be implemented from July 2009 to May 2014 in accordance with the implementation schedule at the beginning of this report. Upon approval of the loan, the ADF will launch the project and subsequently field supervision missions, the indicative schedule and composition of which are presented in Annex A.8. 4.2 Monitoring-Evaluation 4.2.1 Monitoring–evaluation will comprise internal and external monitoring, joint donor supervision missions, a mid-term review and a final evaluation, including the completion reports. Quarterly status reports will be prepared by the consultants responsible for providing project management assistance to APIX. APIX will, within three months of the end of project implementation, prepare the Borrower’s Completion Report on the basis of a format to be communicated by the donors. Furthermore, on WB financing, a consulting firm will be recruited for the annual monitoring-evaluation of project impact indicators, through regular surveys on beneficiaries. 4.3 Governance 4.3.1 The participatory approach widely used under the project for the PAPs could mitigate the risks of bad governance often related to the payment of compensation to the PAPs under such projects. Indeed, from the outset, the PAPs organized themselves into neighbourhood committees to monitor the different stages, the identification of the population and their property, and their valuation and payment. A special committee chaired by the Governor of the Dakar Region, regrouping all the parties, is responsible for monitoring the implementation of the expropriations and compensation. Furthermore, donor involvement in the ESIAs and RAPs and in the project will make it possible to

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ensure that the compensation and resettlements are smoothly conducted. The fact that the actual works will be carried out by the private concessionary company partly from its own resources, will also mitigate the corruption risk. As regards the procedure for the selection of the Concessionary Company, the WB and AFD monitored and supported APIX by financing its technical, legal and financial counseling services. The Bank conducted an ex-post review of the selection process, and deemed it to be acceptable. 4.4 Sustainability 4.4.1 Project sustainability will depend on the quality of the works, the availability of resources to pay the recurrent maintenance costs, road operating conditions and the capacity of contractors to carry out the maintenance works. The technical construction options retained were determined on the basis of the intensity of existing and future traffic. The concession formula adopted means that the concessionary company will have to take the greatest care in building the structure in order to limit the risk of interventions for repairs. The installation of axle scales and control of axle loads will be carried out by the Concessionary Company which thereby reduces the risk at its expense related to repairs necessitated by premature deterioration of the road. During the period of the concession, routine and periodic maintenance will be carried out by the Concessionary Company using the toll revenues, part of which could be paid as levy to the Concession Authority depending on the amount of revenues. Beyond that period, maintenance will be carried out through the Autonomous Road Maintenance Fund (FERA), a second generation road fund established in 2007 by the Government and which is already operational. FERA’s key staff are already in place since 1 April 2009. The Government has taken measures for the resources from the road user charges to be paid directly into the FERA accounts. A schedule has been determined for the quarterly payment of budgetary provisions. The budgetary allocation for road maintenance for 2009 amounts to CFAF 21 billion and the maximum amount of road user tax for that year is CFAF 16 billion, making a total of CFAF 37 billion for road maintenance in 2009. 4.5 Risk Management 4.5.1 The major sector risks are non-consolidation of TSP2 outputs, delays in the implementation of projects in the Urban Mobility Programme (PAMU) and non-application of regional regulations on facilitation of transport and control of axle load. As regards the project, the main risks are : (i) the problem of mobilizing counterpart resources for the payment of expropriation compensation; (ii) continuing support of the population for the resettlement and district restructuring processes which may affect the implementation period; (iii) an increase in costs after competitive bidding or during works execution and a change in the level of available financing depending on exchange rate trends; and (iv) toll avoidance and its impact on the management of the concession during the operational phase. 4.5.2 The sector risks will be mitigated by the fact that: (i) FERA, one of the last reforms, has been put in place, but it needs to be consolidated by securing resources from fuel charges and, after the two urban projects (UP), PRECOL financed by the World Bank and whose works will start soon under the PAMU, should strengthen and broaden the outputs of the two UPs, and (ii) since 2003, with the support of donors including the Bank, the ECOWAS Region States have adopted the various texts relating to facilitation and are committed to implementing them by 30/12/2009. To that end, the Government has adopted an Order (No. 00575 of 29/01/2009) to limit the axle control points on inter-State highways. Similarly the Government is making efforts to implement the ECOWAS Regulation on

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control of axle load on the highways. Sensitization campaigns are currently being organized for transport operators to ensure effective implementation of these decisions before the end of 2009. 4.5.3 Concerning mobilization of the counterpart funds, it should be noted that the Government’s strong commitment toward this project has already led to the financing of the first two sections of the highway from the national budget, and that the expected annual contribution of CFAF 12.5 billion from the Government will be borne by the budget. Furthermore, in view of the impact of this project, the Government can, after IMF’s approval, implement a specific market borrowing mechanism (bond issue) to finance this project. The continuing support of the population for the resettlement process is guaranteed by: (a) the benefits of better situation in the future than now due to the selected option of building houses with donor financing on a fully serviced site and assigning them to displaced persons following land regularization; and (b) heightened visibility of implementation of the resettlement process by allocating plots, as from 2010, for the houses to be built by BPW enterprises, which is a different mechanism from the first restructurings/regularizations carried out in Senegal. 4.5.4 The risks related to an increase in the cost of works will be limited because: (i) as regards Component A, the Concessionary Company’s financial bid includes coverage of this risk and the concession contract is firm and non reviewable; (ii) as for Components B and C with concern the building of houses, the costs estimates are based on recent prices and, in view of the division of the works into lots, there will be keen competition because in Senegal there are many SMEs in the building sub-sector which are competent and have adequate skilled labour. Regarding the impact of toll avoidance, it should be noted that toll revenues are estimated at between CFAF 20 billion and CFAF 24 billion per annum and the toll sensitivity studies have shown that, even with a drop in traffic of 20% to 30%, the financial yield would always be guaranteed. The impact of flooding as a result of climatic risks will be mitigated through the construction of storm-and wastewater drainage, collection and disposal structures under this project. 4.6 Knowledge Development 4.6.1 The establishment of real PPPs in the road transport sector in Africa is slow in materializing despite the desire expressed by the States under NEPAD to attract private investments. Implementation of the project will therefore serve as an example to stimulate the PPP mechanism. The concession monitoring reports will constitute the main information media. This experience will be shared and compared with other similar experiences in the world through seminars organized by the project donors. 5 LEGAL FRAMEWORK 5.1 Legal Instrument 5.1.1 The Bank will use the project loan to finance this operation from ADF resources. The loan duration will be 50 years, with a 10 year grace period. It will be subject to a service charge of 0.75% on amounts disbursed and outstanding, and a commitment fee of 0.50% on the undisbursed amount, beginning 120 days after the signing of the Loan Agreement.

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5.2 Conditions for Bank Intervention A. Conditions Precedent to Effectiveness 5.2.1 The loan agreement to be signed between the ADF and Senegal will become effective when the Borrower has fulfilled Section 12.01 of the General Conditions applicable to Loan Agreements and Guarantee Agreements. B. Conditions Precedent to the First Disbursement 5.2.2 In addition to effectiveness of the Loan Agreement, the first disbursement of the loan resources shall be subject to fulfillment by the Borrower, to the satisfaction of the Fund, of the following conditions:

(i) Provide the Fund with evidence that APIX has opened and will maintain for the project duration in a bank acceptable to ADF, a CFAF account (Project Account) to receive the counterpart funds that shall be paid promptly on the basis of the expenditure schedule for the entire project.

(ii) Provide the Fund with evidence of the payment or lodging in a separate

account (Expropriation Account) acceptable to the Fund, of the resources to compensate the displaced persons affected by the works on the Malick-Sy-Pikine and Keur-Massar-Diamniadio sections, as well as on the Tivaouane Peulh resettlement area.

(iii) Provide the Fund with evidence of the written commitment by the other

donors to participate in the financing of the public part of the project; and (iv) Provide the Fund with evidence of the signing of the concession contract

duly authorized or ratified and transferred to the project company under the terms of the law, as well as evidence of the signing of the external financing agreements required under the Concession Contract.

C. Other Loan Conditions 5.2.3 In order to avoid the suspension of disbursements during project implementation, the Borrower shall also fulfill the following conditions:

(i) Regularly replenish the Project Account with counterpart funds in

accordance with the expenditure schedule; (ii) No later than 31 December 2011, effect payment of, or lodge in the

Expropriation Account, the amount required for compensation of the displaced persons affected by the construction works on the Pikine-Keur Massar section of the highway and the restructuring of Pikine Irrégulier Sud; and

(iii) Effectively assign, no later than 31 December 2012, houses in the

resettlement area to the persons affected by the project and who have opted to be resettled.

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5.3 Compliance with Bank Policies Does this project comply with all the applicable Bank rules?

YES. With regard to the process for the procurement of the services of the Concessionary company which had been initiated prior to the Bank’s involvement in the project, the pre-selection and bidding documents used are those prepared at national level in conformity with the BOT (build operate and transfer) national law. In accordance with the provisions of its Rules of Procedure relating to the PPP contract, the Bank carried out an ex post review of the process which it has deemed acceptable on the whole.

6 CONCLUSIONS AND RECOMMENDATIONS 6.1 Conclusions 6.1.1 As it stands, the project should, after implementation, facilitate entry to and exit from Dakar City and strengthen regional economic integration, particularly with Mali and Guinea. In this respect, it is in keeping with the TSP and pillars of Senegal’s PRSP and RBCSP for 2007-2009. 6.1.2 Technically, the project is well designed. The negative environmental impacts have been identified, and mitigation measures incorporated in the project. It is economically viable, with an average economic rate of return of 29.28% which is above the opportunity cost of capital estimated at 12%. The project is financially profitable with a financial rate of return of 20.16%. The sustainability of the investments will be ensured by the PPP formula, which makes the concessionary company responsible for the maintenance of the highway and toll equipment. 6.2 Recommendations 6.2.1 In light of the foregoing, it is recommended that the ADF should grant to the Government of Senegal a loan of UA 45 million. The loan will be used to implement the project as designed and described in this report. It will be subject to fulfilment of the conditions specified in the Loan Agreement.

Annex I

SENEGAL: DAKAR-DIAMNIADIO HIGHWAY CONSTRUCTION PROJECT Comparative Socio-Economic Indicators of the Country

Senegal - Development Indicators

Senegal Social Indicators

1990 2008 * Africa Developing

countries

Area ( '000 Km²) 197 30 323 80 976 Total Population (millions) 7,9 12,7 985,7 5 523,4 Population growth (annual %) 2,9 2,5 2,3 1,4 Life expectancy at birth, total (years) 57 63 55 66 Mortality rate, infant (per 1,000 live births) 91,3 65,1 83,9 53,1 Physicians per 100,000 People 5,1 5,2 39,6 78,0 Births attended by skilled health staff (% of total) … 51,9 51,2 59,0 Immunization, measles (% of children ages 12-23 months) 57,0 84,0 83,1 81,0 School enrollment, primary (% gross) 59,0 83,5 99,6 106,0 Ratio of girls to boys in primary education (%) 74 100 92 100,0 Illiteracy rate, adult total (% of people ages 15 and above) … 57,4 33,2 26,6 Access to Safe Water (% of Population) 67,0 77,0 64,3 84,0 Access to Sanitation (% of Population) 26,0 28,0 37,6 53,0 Human Develop. (HDI) Rank (Over 179 Countries) … 153 … … Human Poverty Index (% of Population) … 41,1 38,7 …

Senegal

Economy 2000 2007 2008 2009**

GNI per capita, Atlas method (current US$) 450 820 … …

GDP (current Million US$) 4 681 11 169 12 602 12 120

GDP growth (annual %) 3,2 4,8 3,7 3,5

Per capita GDP growth (annual %) 0,6 2,2 1,2 1,1

Gross Domestic Investment (% of GDP) 20,5 27,1 28,2 26,2

Inflation (annual %) 0,7 5,9 5,8 4,0

Budget surplus/deficit (% of GDP) 0,5 -3,8 -4,5 -4,3

Trade, External Debt & Financial Flows 2000 2007 2008 2009**

Export Growth, volume (%) -13,5 -0,1 8,9 11,2

Import Growth, volume (%) -1,0 7,6 7,9 9,2

Terms of Trade (% change from previous year) 3,3 -9,8 -9,1 14,7

Trade Balance ( mn US$) -417 -2 329 -2 936 -2 057

Trade balance (% of GDP) -8,9 -20,9 -23,3 -17,0

Current Account ( mn US$) -332 -1 259 -1 788 -1 057

Current Account (% of GDP) -7,1 -11,3 -14,2 -8,7

Debt Service (% of Exports) 13,8 6,5 5,8 6,7

External Debt (% of GDP) 76,2 42,8 44,0 50,6

Net Total Inflows ( mn US$) 475,7 964,6 … …

Net Total Official Development Assistance (mn US$) 425,1 842,8 … …

Foreign Direct Investment Inflows (mn US$) 62,9 78,0 … …

External reserves (in month of imports of goods & services) 2,6 4,3 2,6 … Private Sector Development & Infrastructure 2000 2006 2007 2008

Time required to start a business (days) … 58 58 8

Investor Protection Index (0-10) … 3 3 3

Main Telephone Lines (per 1000 people) 20 23 22 …

Mobile Cellular Subscribers (per 1000 people) 24 247 293 …

Internet users (000) 40.0 650.0 820.0 …

Roads, paved (% of total roads) 29,3 … … …

Railways, goods transported (million ton-km) 371 … … … Source: ADB Statistics Department, based on various national and international sources * Most recent year Last Update: March 2009 ** Forecast

Annex II

SENEGAL: DAKAR-DIAMNIADIO HIGHWAY CONSTRUCTION PROJECT Table of ADB Portfolio in the Country as at 25/03/2009

Project Name Approval Date.

Signature Date

Effect. Date

Closure Date

Net approved amount (MUA)

Amount Disb. (M. UC)

Disb. Rate. %

Age duration ratio

Risk

Agriculture Sector Livestock Project - Phase II (PAPEL) 17-May-00 14-Jul.-00 1-Feb.-02 30-June-09 10.0 9.9 98.8 1.19 PPP Anambe Rur. Dev. Support Project(PADERBA) 25-April.-01 26-Oct.l.-

01 13-Feb.-02 31-Dec.-08 7.2 4.9 67.6 1.19 PPP

Rural Infrastructure Project (PPC/PNIR) 3-April.-02 6-May-02 4-Feb.-03 30-Dec.-08 11.9 11.1 94.0 1.53 NO Local Small-scale Irrigation Support Project (PAPIL) 22-Oct.-03 18-Dec.-03 7-Sept.-04 31-Dec.-10 14.3 4.3 30.4 0.91 NO

Casamance Rural Development Support Project (PADERCA) 19-Oct.-05 11-Nov.-05 22-mars-06 21-Dec.-12 20.0 1.6 8.2 0.60 PPP

5 Operations 63.3 31.9 50.3 0.93 Infrastructure Sector Rural Electrification Project 13-Oct..-04 29-Nov.-04 8-Aug.-06 31-Dec.-10 9.6 0.1 1.6 0.53 PP Road Maintenance Project (PER) 29-June-05 20-July-05 21-June-06 31-Dec.-09 29.0 13.7 47.1 0.83 NO

2 Operations 38.6 13.8 35.8 0.65 Water and Sanitation Dakar City Sanitation Project (PAVD) 12-July-01 26-Oct..-01 22-Aug.-02 30-Dec.-08 11.9 11.3 94.9 1.65 PPP

Rural DWSS Sub-Programme (PEPAM) 21-Sept.-05 26-Oct.-05 23-Jan.-06 31-Dec.-11 25.0 16.5 66.0 0.79 NO

Ziguinchor Sanitation Study (FAE) 22-Dec.-06 25-June-07 9-Aug.-07 31-May-09 0.8 0.4 49.8 0.93 NO Implementation of Senegal PAGIRE (FAE) 31-Aug.-07 10-Oct..-07 15-May-08 30-Nov.-09 1.4 0.9 62.0 0.43 NO Second DWSS Sub-Programme (PEPAM II) 18-Feb.-09 26-Feb.-09 31-Dec.-13 30.0 0.0 0.0 0.00 NO

5 Operations 69.2 29.1 42.1 0.97 Social Sector Health Project II (loan) 18-June-03 21-July-03 22-April.-04 31-Dec.-09 10.0 4.5 45.5 0.99 PPP Health Project II (grant) 18-June-03 21-July-03 22-April.-04 31-Dec.-09 1.4 0.9 66.7 0.99 PPP Education Project IV (loan) 25-June-03 21-July-03 15-Oct.-04 31-Dec.-09 13.8 5.9 42.3 0.89 PPP Education Project IV (grant) 25-June-03 21-July-03 15-Oct..-04 31-Dec.-09 1.0 0.4 44.3 0.89 PPP

2 Operations 26.2 11.7 44.9 0.94 Multisector Statistics Directorate Support Project 12-Dec.-02 7-Feb.-03 5-July-04 31-Dec.-08 1.6 1.2 75.9 1.57 PPP Cadastral Survey Modernization Project (PAMOCA) 22-April.-05 17-May-05 12-Aug.-05 31-Dec.-09 2.5 1.9 75.1 1.45 NO

Poverty Reduction Support Project (PASRP) 22-Dec.-08 22-Dec.-08 23-Dec.-08 31-Dec.-10 30.0 20.0 66.7 0.08 NO 3 Operations 34.1 23.1 67.7 1.01

TOTAL 17 OPERATIONS 231.3 109.6 47.4 0.93

ANNEX III SENEGAL: DAKAR-DIAMNIADIO HIGHWAY CONSTRUCTION PROJECT

PROJECT MAP

Cette carte a été fournie par le personnel de la Banque Africaine de Développement exclusivement à l’usage des lecteurs du rapport auquel elle est jointe. Les dénominations utilisées et les frontières figurant sur cette carte n’impliquent de la part du Groupe de la BAD et de ses membres aucun jugement concernant le statut légal d’un territoire ni aucune approbation ou acceptation de ses frontières