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AFRICAN DEVELOPMENT BANK
SWAZILAND
MANZINI TO MBADLANE (MR3) HIGHWAY PROJECT
APPRAISAL REPORT
OITC DEPARTMENT May 2014
TABLE OF CONTENTS
1 STRATEGIC THRUST & RATIONALE .................................................................................................... 1
1.1 PROJECT LINKAGES WITH COUNTRIES STRATEGIES AND OBJECTIVES ................................... 1
1.2 RATIONALE FOR BANK’S INVOLVEMENT............................................................................... 1
1.3 DONORS COORDINATION ....................................................................................................... 2
2 PROJECT DESCRIPTION ........................................................................................................................... 3 2.1 PROJECT DEVELOPMENT OBJECTIVES ................................................................................... 3
2.2 PROJECT DESCRIPTION AND COMPONENTS ........................................................................... 3
2.3 TECHNICAL SOLUTION RETAINED AND OTHER ALTERNATIVES EXPLORED ........................... 4
2.4 PROJECT TYPE ........................................................................................................................ 5
2.5 PROJECT COST AND FINANCING ARRANGEMENTS ................................................................. 5
2.6 PROJECT’S TARGET AREA AND BENEFICIARIES ..................................................................... 7
2.7 PARTICIPATORY PROCESS FOR PROJECT DESIGN AND IMPLEMENTATION .............................. 8
2.8 BANK GROUP EXPERIENCE, LESSONS REFLECTED IN PROJECT DESIGN ................................. 8
KEY PERFORMANCE INDICATORS ....................................................................................................... 8
3 PROJECT FEASIBILITY ............................................................................................................................. 9 3.1 ECONOMIC AND FINANCIAL PERFORMANCE .......................................................................... 9
3.2 ENVIRONMENTAL AND SOCIAL IMPACTS............................................................................. 10
4 IMPLEMENTATION ................................................................................................................................. 13 4.1 IMPLEMENTATION ARRANGEMENTS ................................................................................... 13
4.2 MONITORING ....................................................................................................................... 15
4.3 GOVERNANCE ...................................................................................................................... 15
4.4 SUSTAINABILITY .................................................................................................................. 15
4.5 RISK MANAGEMENT ............................................................................................................. 17
4.6 KNOWLEDGE BUILDING ....................................................................................................... 18
5 LEGAL INSTRUMENTS AND AUTHORITY ......................................................................................... 18 5.1 LEGAL INSTRUMENT ............................................................................................................ 18
5.2 CONDITIONS ASSOCIATED WITH BANK’S INTERVENTION .................................................... 18
6 RECOMMENDATION .............................................................................................................................. 19 APPENDIX I: SWAZILAND COMPARATIVE SOCIO-ECONOMIC INDICATORS ......................................... I
APPENDIX II TABLE OF AFDB’S PORTFOLIO IN THE COUNTRY ......................................................... II
APPENDIX III RELATED PROJECTS FINANCED BY THE BANK AND OTHER DONORS, 2014 .............. III
APPENDIX IV: DETAILS OF PROJECT COST ....................................................................................... IV
APPENDIX V: PROJECT MAP .............................................................................................................. V
i
Currency Equivalents As of February.2014
Swaziland 1 UA = 1.53 USD
1 USD = 11.28 Emalangeni (E)
Fiscal Year
Swaziland: 01 April – 31 March
Weights and Measures
1 metric ton = 2204 pounds (lbs)
1 kilometer (km) = 0.62 mile
1 hectare (ha) = 2.471 acres
ii
LIST OF ABBREVIATIONS
ADB African Development Bank
ADF African Development Fund
ADDF Abu Dhabi Development Fund
ARAP Abbreviated Resettlement Action Plan
BADEA Arab Bank For Economic Development In Africa
CC Climate Change
ESIA Environmental and Social Impact Assessment
ESMP Environmental and Social Management Plan
EU The Commission of European Union
GBV Gender-Based Violence
GOKS Government of Swaziland
HGV Heavy Goods Vehicle
JAS Joint Assistance Strategy
MDG Millennium Development Goals
MIC Middle Income Country
MTP Medium Term Plan
MTS Medium Term Strategy
NERCHA The National Emergency Response Council on HIV and AIDS
NDS National Development Strategy
MPWT Ministry of Public Works and Transport
OFID OPEC Fund for International Development
OPRC Output-and Performance-based Road Contract
PAP Project Affected People
PCN Project Concept Note
PDR Preliminary Design Report
PRSP Poverty Reduction Strategic Paper
PRSAP Poverty Reduction Strategy and Action Programme
QCBS Quality and Cost Based Selection
RD Road Department
REC Regional Economic Community
RISP Regional Integration Strategy Paper
RMC Regional Member Country
SADC Southern African Development Community
SEA Swaziland Environmental Authority
STI Sexually Transmitted Infection
TA Technical Assistance
TAF Technical Assistance Fund
TOR Terms of Reference
UA Units of Account
UNCTAD United Nations Conference On Trade And Development
iii
Loan Information
Client’s information
BORROWER: THE KINGDOM OF SWAZILAND
EXECUTING AGENCY(S): ROADS DEPARTMENT (MINISTRY OF PUBLIC WORKS
AND TRANSPORT)
Financing plan
SOURCE Amount (in millions)
Instrument Emalangeni (E) (USD) (UA)
Government 309.8 27.5 18.0 Counterpart contribution
AfDB (ADB) 517.7 45.9 30.0 Project Loan
AfDB (ADB MIC) 20.6 1.8 1.2 Technical Assistance Grant
BADEA 112.8 10.0 6.5 Project Loan
ADDF 203.0 18.0 11.8 Project Loan
KUWAIT FUND 157.9 14.0 9.1 Project Loan
OFID 169.2 15.0 9.8 Project Loan
TOTAL COST 1,491.0 132.2 86.40
Bank Group key financing information
FINANCING DETAILS LOAN MIC GRANT
LOAN CURRENCY United States Dollar (USD) UA
LOAN TYPE Enhanced Variable Spread Loan
LENDING RATE1 Base Rate + Funding Cost Margin + Lending Spread
BASE RATE2 Floating Base rate with free option to fix the Base rate.
LENDING SPREAD 60 basis points (0.60%) per annum N/A
REPAYMENT Semi-Annual N/A
TENOR Up to 20 years N/A
GRACE PERIOD3 Up to 5 years N/A
NPV (BASE CASE) USD54 million
EIRR (BASE CASE) 21.9% 1”Funding Cost Margin" means the six-month adjusted average of the difference between: (i) the refinancing rate of the Bank as to the
borrowings linked to 6-month LIBOR and allocated to all its floating interest loans denominated in USD; and (ii) 6-month LIBOR ending on
30 June and on 31 December. This spread shall apply to 6-month LIBOR which resets on 1 February and on 1 August. The Funding Cost
Margin shall be determined twice per year on 1 January for the semester ending on 31 December and on 1 July for the semester ending on
30 June; 2”Floating Base Rate" means the six (6)-month LIBOR denominated floating rate, set on each LIBOR Reset Date; Fixed Base Rate Date"
means any date, subsequent to the date on which the Minimum Interest Rate Fixing Amount is attained, on which the Bank – upon the request of the Borrower – calculates the Fixed Base Rate; 3"Grace Period" means the five (5) year period commencing from the Date of Signature of this Agreement during which only the interest
shall be payable except in the event of the acceleration of maturity of the Loan, at which time the principal together with interest shall be payable;
Timeframe - Main Milestones (expected)
Concept Note Approval 28 February 2014
Project Approval 28 May 2014
Effectiveness 31 December 2014
Last Disbursement 31 December 2019
Project Completion 30 June 2018
Last Repayment 31 December 2034
iv
PROJECT SUMMARY Project Overview
1. The Manzini-Mbadlane Highway Project in Swaziland entails the dualisation of an
existing 30km single carriageway road between the city of Manzini and Mbadlane on the
MR3, a major road on the SADC regional network. The project is in two parts and financed
by loan and grant facility. The main part, which will be financed by the loan, is composed of
activities directly related to the delivery of the project road. The second part is Technical
Assistance services, to be financed by a grant facility.
2. The activities for the project road comprise: (i) carriageway upgrade of existing 30km
two-lane single paved carriageway to a two-lane dual carriageway and (ii) construction of a
new 32km two-lane single carriageway access and rural connecting roads and interchanges;
(iii) rural feeder road access to health services; (iv) implementation of environmental and
social measures, and; (v) implementation of institutional reform in the road subsector.
3. The estimated cost of the project is USD132.2 million (UA86.4 million; E1,491million)
funded through a co-financing arrangement between the Bank, Government of the Kingdom
of Swaziland (GOKS), Kuwait Fund, BADEA, Abu Dhabi Development Fund (ADDF) and
OFID. The Bank’s contribution comprises: (i) a loan of USD45.9 (UA30.0million), sourced
from sovereign ADB window, equivalent to 34.7% of the project cost, and; (ii) a grant of
UA1.2million (1.4%) from the MIC Technical Assistance Fund. The Government contributes
USD27.5 (20.8%) and the co-financiers in aggregate contribute USD 57.0million (43.1%) of
project cost.
4. The expected outcomes of this intervention include: (i) increased trade activities; (ii)
increased mobility of traffic; (iii) reduced transport and trade cost; (iv) job creation; (v)
improved access to health services, and; (vi) knowledge enhancement and capacity building.
The direct beneficiaries are the rural population (70% of the population) that depend on the
agro-based trade, the industrial and service sectors, the urban population and businesses of
the city of Manzini, and vulnerable rural communities with limited access to health facilities.
Needs Assessment
5. The Kingdom of Swaziland has a population of about 1.2 million (2012 census) and a
lower middle income country with manufacturing, services, wholesale/retail trading,
agriculture and transport as the main GDP growth drivers. The agricultural sector is the main
source of income for more than 70 % of the population providing the raw materials for
dominant agro-based manufacturing industries. Swaziland is ranked third on intra-regional
trade within the SADC region and absorbs about 90% of its agro-based export. The agro-
industry is therefore its primary source of revenue through trade (export) and the road
subsector, particularly the MR3, is the vital link in the supply and value chain. The MR3 is
designated as a SADC regional road and the main east–west strategic link between the major
cities of Mbabane, Manzini, industrial areas of the country. In addition, the MR3 serves as
the major regional road link to Swaziland’s prime market of South Africa and to international
market through Mozambique via the port of Maputo.
Bank’s Added Value
6. Swaziland’s primary trunk road network is key for development and the Bank has
significant experience in developing the road infrastructure to support its key industries and
trade. To date, the Bank has financed significant part of this network, each intervention
strategically selected to maximize benefits. The project map (Appendix V) illustrates the
strategic interventions and the economic growth drivers. Complementing the interventions in
v
the agro-business sector, the Bank’s added value arises from the interventions on trade routes
to improve regional connectivity with markets. The Bank has financed studies targeted at
instituting sector reforms and supported training programs and skills development to enhance
capacity. In addition to improving hard infrastructure, this intervention builds on the past
experiences by providing technical assistance to address the institutional challenges to
safeguard long term investments. The Bank also leverages its competency and relevance in
the sector to attract development financial institutions to collaborate on projects. Sharing
experiences gained by working with member states with established sectoral institutional
structures is an invaluable contribution by the Bank in assisting the country in implementing
sector reforms. Gender-based intervention has also been integrated to the project in an area
that contributes to reducing maternal mortality in Swaziland by improving access to local
clinics for a selective number of vulnerable communities.
Knowledge Management
7. The MR3 is critical to economic development and this project enhances its functionality.
This project utilises the knowledge to date to address softer challenges and also leverages
national and institutional knowledge on gender equity to design appropriate social
intervention. The project intervenes in the area of sector reforms, institutional strengthening
and capacity building evolving from the recommendations of bank-funded initiatives (e.g.
Transport Master Plan, 2014) and past projects.
vi
MANZINI TO MBADLANE (MR3) HIGHWAY PROJECT: Results Based Logical Framework
Country and project name: The Kingdom of Swaziland: Manzini to Mbadlane Highway Project
Purpose of the project: To improve the standard/quality of the road linking Manzini and Mbadlane.
RESULTS CHAIN
PERFORMANCE INDICATORS MEANS OF
VERIFICATI
ON
RISKS / MITIGATION MEASURES Indicator (including CSI)
Baseline Target
IMP
AC
T
Increase in intra-regional trade (predominantly
sugar) within the SADC (SACU) region contributing to economic growth and poverty
reduction
Increase of trade volume (exports) to
the SADC (SACU) region.
143,000 Metric Tons
(2013, 0-6months)
160,000 Metric tons.
(2019/20; 0-6months)
Ministry of
Commerce, Industry & Trade;
SADC/ SACU data
, COMTRADE
Risks:
Lack of capacity and structure to implement sustainability
measures
Inadequate financial provisions for maintenance.
Non-implementation of effective sector reforms
Mitigation measure:
Medium to long term measures being implemented Project is facilitating implementation of sector reforms
covering institutional strengthening, road funding, capacity building, private sector participation.
OU
TC
OM
ES
Increased in trade traffic (HGV traffic) Av % of HGV to total traffic 15.2% (2013) >20% (2020) Traffic count & O/D survey reports;
Swaziland Road Safety Council
reports
Increased mobility to/from commercial/ economic centres and social facilities
AADT (Manzini-MR8 intersection )
12,500 (2013); 16,800 (2020)
Improved access of urban commuter traffic Average journey time for mini-buses 45mins; (2013) 32mins; (2020)
Contribute to the reduction in road accident rates on the Manzini to Mbadlane road.
No. of fatalities and serious injuries Fatalities: 22 (2013) Serious injuries: 58 (2013)
Fatalities: less than 10 Serious injuries:58 (2020)
OU
TP
UT
S
Dualing of 30km of the MR3 and access and
service road Km of road constructed 0km (2014) 75km (2018) Bank supervision
mission reports.
/Project quarterly
and completion reports/Ministry of
Health
Risks
Project start-up delays due to procurement and compensation related issues.
Inadequate skills and project management capacity of MWPT to effectively manage project.
Mitigating Measures
Close coordination between Bank and MPWT on procurement and project management support
Detailed collaboration amongst all project parties.
Training of MWPT staff on Project Management and TA provided on road management /contracting methodologies.
Construction of service and access roads Km of service and access roads 0km (2014) 32km (2018)
Rehabilitated feeder road access to health
services
No. of communities connected to local
health centres n/a
Minimum of two (2)
community sites
Road safety sensitisation No. road safety roadshows held 0 (2014) 2no. (2018)
Construction of roadside market facilities No of road side market. 0 2 Government/Donor
Reports
HIV/AIDS sensitisation and gender sensitization
No of GBV community sensitisation
sessions No of HIV/AIDS sensitisation sessions
0 (2014)
0 (2014)
>2no. sessions
>4no. sessions
Gender
Coordination Unit NERCHA,
PAPs Compensation and resettlement No. of PAPs compensated n/a 75 PAPs (2015) Approved ARAP
Training of MPWT staff on OPRC, PPP No. of persons trained (No of women) 0 25 staff trained (>10no women)
Swazi locals employed by the project No of jobs (% women/men) 0 500 min jobs (20/80)
A.
KE
Y A
CT
IVIT
IES
COMPONENTS INPUTS
A. Civil Works: All work activities in the construction of pavement, road and drainage structures and ancillaries; UA 65.88 million
B. Consulting Services: (i) Comprises pre-construction services (procurement support); construction supervision; technical and
financial audits; capacity building/training; Road safety audits; project management support
UA 3.31 million
C. Implementation of ESMP and sensitisation programmes on Gender, HIV/AIDs, Road Safety UA 0.17 million
D. Compensation and resettlement measures for PAPs UA 1.91 million
E. Weighbridge and axle load control measures UA 0.70 million
F. Rural community (feeder road) access to health services UA 0.58million
G. Technical Assistance (MIC grant) UA 1.02 million
UA 73.57 million (base cost) UA 86.4 million (incl. contingencies)
vii
Indicative Project Time Frame
ID Task Name
1 Project Processing for Loan Approval
5 Loan Signature
6 Publication of GPN
7 RESSETTLEMENT AND COMPENSATION
9 Consultanct Services: Pre Contract Services & Construction Supervision
10 Procurement of Consultancy Services
28 Execution - Pre-Construction Services
29 Execution - Construction Supervision
30 Civil Works
31 Works Prequalification
39 Procurement
47 Execution of Works (excl DLP)
48 Technical Assistance: Project Management Support and Training
68 Technical Assistance Establishment of Road Authotity and Road Fund
28/05/14Project Processing for Loan Approval
26/06/14
05/06/14
RESSETTLEMENT AND COMPENSATION
Consultanct Services: Pre Contract Services & Construction Supervision
Procurement of Consultancy Services
Execution - Pre-Construction Services
Execution - Construction Supervision
Civil Works
Works Prequalification
Procurement
Execution of Works (excl DLP)
Technical Assistance: Project Management Support and Training
Technical Assistance Establishment of Road Authotity and Road Fund
Qtr 1 Qtr 2 Qtr 3 Qtr 4 Qtr 1 Qtr 2 Qtr 3 Qtr 4 Qtr 1 Qtr 2 Qtr 3 Qtr 4 Qtr 1 Qtr 2 Qtr 3 Qtr 4 Qtr 1 Qtr 2 Qtr 3 Qtr 4 Qtr 1 Qtr 22014 2015 2016 2017 2018 2019
1
REPORT AND RECOMMENDATION OF THE MANAGEMENT TO THE BOARD OF
DIRECTORS ON PROPOSED LOAN AND GRANT TO THE KINGDOM OF SWAZILAND
FOR THE MANZINI TO MBADLANE (MR3) HIGHWAY PROJECT
Management submits the following Report and Recommendation on a proposed loan for USD 132.2
million (UA 30.0 million) to the Kingdom of Swaziland to finance the Manzini-Mbadlane (MR3)
Highway Project and a proposed MIC Technical Assistance Fund Grant for UA1.2 million to finance
Technical Assistance services for capacity building and sector reform activities.
1 STRATEGIC THRUST & RATIONALE
Project linkages with countries strategies and objectives 1.1
The development strategies and objectives of the country are prescribed in two main 1.1.1
documents, namely: i) the National Development Strategy (NDS) (1999-2022); ii) the Poverty
Reduction Strategy and Action Programme (PRSAP) (2008-2022). Complementary to these
documents is the roadmap for fiscal structural reforms described in the Fiscal Adjustment Roadmap
(FAR). The linkages of the project with respective country priorities are described below.
By tackling the physical infrastructure and soft components, the project facilitates meeting 1.1.2
specific macro level objectives for development. These are: (i) improving the economic status of
human capital, (ii) enhancing the productivity of its mainly agro-based industries, and (iii) embarking
on real public sector reforms to improve efficiency.
The NDS defines development objectives at macro and sectoral levels. The former is linked 1.1.3
with industrialisation and agriculture development and the latter on, physical infrastructure, gender,
economic services (construction) and social welfare. While it recognises the need to attempt
diversification from dependency on agro-based industries, the agriculture sector will remain the
backbone of the economy. The project contributes to enhancing the competitive advantage of
agriculture sector by facilitating easy access to international and regional markets. It will also
positively impacts productivity of the industries and improves the livelihood of the significant rural
population. The project directly improves connectivity from the industrial hub of Matsapha to the port
of Maputo facilitating growth in international export vis-a-vis export to the SADC region. In addition
to infrastructure, the project provides opportunities for job creation, promotes and generate economic
services particularly in the urban area, and contributes to addressing some of the gender equality
aspects of the population. It also improves access to social welfare facilities such as hospitals and
schools within the project catchment area. The beneficiaries are detailed in Section 2.6
The sector reform intervention of the project aligns with some of the objectives of the 2011-1.1.4
2015 Fiscal Adjustment Roadmap (FAR) and the PRSAP. The FAR aims at medium term reforms in
expenditure control and revenue generation. It outlines the need for structural transformation of public
sector institutions to attract investment, improve efficiency and increase private participation.
Similarly, pillar 6 of the PRSAP iterates improving governance and strengthening institutions. The
alignment with FAR is translated to the sector in the context of effectively managing funding needs
for recurrent expenditure.
Rationale for Bank’s involvement 1.2
The main thrust of the Bank’s lending programme in Swaziland is to support the agenda of 1.2.1
Government to reduce poverty. The financing of this project offers good prospects for achieving this
objective through the development of a vital infrastructure system that supports economic drivers.
Investment rationale in the context of Bank strategies is described below.
2
The investment is in line with the Bank’s Ten Year Strategy (2013-22) in respect of 1.2.2
promoting: i) infrastructure development and regional economic integration by leveraging
Swaziland’s natural resources: ii) inclusive development with emphasis on gender mainstreaming and
employment opportunities; iii) institutional capacity enhancement, and; (iv) inherent climate change
mitigating gains from efficient transport operations.
By aligning with (i) and (iii) above, there is explicit consistency with the two pillars of the 1.2.3
Country Strategy Paper (CSP) (2014-2018), namely, Pillar I (Supporting Infrastructure Development
for Sustainable and Inclusive Growth) and Pillar II (Strengthening Governance and Institutional
Capacity), with project emphasis on institutional capacity. The project is listed in the CSP as a project
for the 2014 programme.
The project is well aligned with the two pillars of the Bank’s Southern Africa Regional 1.2.4
Integration Strategy Paper 2011-2015 (RISP), namely, regional infrastructure and capacity building in
support of infrastructure interventions. It is also aligned with the 2005-2019 SADC Regional
Integration Strategic Development Plan (RISDP) priority area of developing regional infrastructure.
Donors coordination 1.3
Donor coordination in Swaziland is typically at national and sectoral levels. At a national, 1.3.1
coordination is led by the Aid Coordination and Monitoring Section (ACMS) of the Ministry of
Economic Planning and Development. Set up in 2009, the ACMS mandate is to ensure aid
effectiveness across all sectors. At sector level, the intensity of the coordination varies by sector with
the dominating sectors being agriculture, health and social. The coordination platforms of health and
social sectors, either standalone or complementary, are the most active with the National Emergency
Response Council on HIV and AIDS (NERCHA) responsible for coordination of the implementation
of multi-sectoral responses to HIV and AIDS. The Swaziland Partnership (SwaP) Forum against
AIDS, a forum for all Development Partners (DP), provides strategic direction to DPs.
Donor portfolio is featured by transport, agriculture, social and health, capacity building and 1.3.2
education sectors with the Bank, the EU and recently the Kuwait Fund and BADEA, active in the
transport sector. The EU traditionally undertake feeder and rural road projects that are linked to their
agricultural projects. The EU, the United States and Global Fund concentrate on the agriculture and
health sectors. Similarly, the UN (UNDP, UNAIDS, UNICEF) focuses on the social and health sectors
as well as environment and climate change. Other participating donors include the World Bank, JICA,
China and Taiwan. At present, the EU is the only resident donor while USAID is expected to assume
residency by the end of 2014. Other donors including the Bank operate from South Africa. In addition,
common objectives of the Paris Declaration and Millennium Development Goals (MDG) bind donors
to the common cause through the OECD’s Development Assistance Committee although, in general,
donors are nominated or volunteer to lead in selected sectors in which they are most active. There is
no formal coordination platform for the transport sector and this intervention presents an opportunity
for transport to be featured in the coordination agenda. The implementation of this project will trigger
closer coordination between donors in which the Ministry of Public Works and Transport (MPWT),
through the ACMS, will play a key role. Some coordination is currently underway and had
contributed to the appraisal of this project. It is envisaged that the coordination platform will evolve
and take shape during implementation and project supervisions. As a signatory to the SADC protocol
on Transport Communication and Meteorology, MPWT is responsible for coordinating and
harmonizing regional projects with the mandate of SADC Secretariat.
3
Table 1.1: Aid Coordination
Sector or subsector Size
GDP Exports Labor Force
Transport 7.5%*
Players - Public Annual Expenditure (average)**
Government Donors
[UA m] [UA m]
243 225 %
AfDB <1%
World Bank 7%
China and Taiwan 52%
EU 23%
UN (FAO, UNDP, UNFPA,
UNICEF)
US (PEPFAR) 10%
Japan 3%
BADEA
Global Fund
Kuwait Fund
Level of Donor Coordination
Existence of Thematic Working Groups Yes
Existence of SWAPs or Integrated Sector Approaches Yes
AfDB's Involvement in donor coordination*** Yes, M
* average of the last five years (2007 – 2011) for transport and storage (source: Africa Economic Outlook)
** Average of (2007 to 2011). *** L: leader, M: member but not leader, none: no involvement
2 PROJECT DESCRIPTION
2.1 Project Development Objectives
2.1.1 At sector level, the development objective is to improve regional interconnectivity thus
improve efficiency within the trade value-chain, particularly on exports, to increase trade flow and
generate revenue for the country and thus reduce poverty. Similarly, improved mobility to the urban
centre will enhance economic activities in the urban environment by boosting the productivity of the
service and retail sectors.
2.1.2 Project level development objectives will include reducing vehicle operating cost on the route
and improve mobility. The project will have a positive impact on: (i) road safety by mitigating
unacceptable road accidents on the MR3; (ii) improve trading activities of road side markets to
enhance income generation; (iii) gender-balanced job opportunities for skilled and unskilled labour for
Swazis; (iv) contribute towards reduction in maternal mortality by improve rural access to local health
services and; (v) through sensitisation, contribute to the efforts on mitigating HIV/AIDS prevalence
and Gender-Based Violence (GBV).
2.2 Project Description and Components
2.2.1 The Manzini-Mbadlane Highway Project is in two parts and financed by loan and grant
facility. The main part is associated with the delivery of the project road and associated infrastructure.
The second part is grant-funded Technical Assistance services on softer intervention that will facilitate
development of Bank pipeline and address sector-wide challenges. Detailed cost information appendix
IV.
4
Table 2.1- Description Project Components
COMPONENT NAME USD
(m) UA (m)
COMPONENT DESCRIPTION
1 Civil works 100.80 65.88
Dualing of existing 30km main carriageway and construction of
32km service and access road, with associated infrastructure,
utilities and services including ICT ducting;
2 Consultancy services 5.06 3.31
Comprise: a) design review, pre-construction services,
construction supervision; b) financial audit services; c) technical
audits services; d) Project management support services to
project team. Services include short term procurement
consultant; project financial management expert; and project
management expert; e) independent road safety audits. The
safety audits will form part of the design review activity above.
3 Implementation of ESMP 0.27 0.17
This will be implemented as part of the responsibilities of the
civil works and comprise:
a) a minimum of two (2) community sensitisation sessions on
gender-based violence; b) a minimum of four (4) sensitisation
sessions on HIV/AIDS; c) two (2) road safety roadshows in the
city of the Manzini; d) all environmental and social measures as
stipulated in the ESMP
4 Resettlement and
Compensation. 2.93 1.91 Resettlement and compensations of 75 PAPs.
5 Community feeder road 0.89 0.58 Improvement of rural (feeder road) access to local health
services (see section 2.2.2)
6 Axle Load Control
(weighbridge) 1.06 0.70
Comprise: a) construction of weighbridge; b) Development and
deployment of axle load control operational measures and
procedures.
7
Technical Assistance
Services (MIC grant
funded)
1.56 1.02
To be funded by MIC grant, comprise implementation of the
following:
a) Sector Reforms: Establishment and institutionalisation of
the Roads Authority and the Road Fund (UA0.88million); b)
Training of MPWT personnel on OPRC methodologies and
Public-Private Partnerships (UA0.14million).
TOTAL BASE COST 112.57 73.57
2.2.2 The project includes a feeder road component (item 5 in table 2.1) aimed at improving selected
number of existing impassable gravel roads and tracks that link rural communities to their local rural
health clinics. This is to contribute towards addressing some of the transport-related and time-critical
vulnerabilities of expectant mothers in the rural areas. The intervention will target the zone of
influence project road within the Manzini and Lubombo districts. Further information is provided in
Gender section of Section 3.2 (Environmental and Social Impacts).
2.3 Technical solution retained and other alternatives explored
2.3.1 Two technical design solutions and a financing alternative were considered. The technical
solutions, which were based on lane configuration were: (i) the number of lanes for the main MR3
carriageway, and; (ii) dedicated alignment for urban and local/rural service road. The retention of the
existing asphalt concrete pavement type has been justified in the light of current traffic load.
2.3.2 Carriageway configuration: The dual carriageway option was chosen for the entire route as
opposed to dualing the urban section i.e. Manzini circle (0km) to MR8 intersection (km7) only, where
the traffic is heaviest and mostly urban. The choice to dual the entire road was based on road
geometry, heavy trucks, road safety and percentage growth of traffic. In addition, long term
expectations and generated traffic from the operations of the new Sikhuphe International Airport (not
5
yet operational) had been considered.
2.3.3 Access road: The socio-economic environment of the project encompasses urban, residential,
commercial, social and agriculture development and facilities, each with its own access needs. To
ensure sustained functionality, safety and efficiency of the infrastructure, the project design segregates
local traffic from MR3 thoroughfare traffic. This reduces the adverse impact of mixed vehicular and
pedestrian traffic in urban area, improves the vehicle flow of thoroughfare and trade traffic,
complements urban development plans for Manzini city and improves the quality of living conditions
in the urban environment.
2.3.4 Financing options: As part of the efforts to reform the road subsector towards sustainability of
investment, procuring projects through public private partnership (PPP) financing has been one of the
approaches considered by government for future projects. Although the framework for such financing
is yet to be fully developed, the Manzini-Mbadlane Highway Project was a potential candidate. This
was considered in the spirit of widely adopting a user-pay principle for the MR3, given the high traffic
volume. However, project priority against the long development period for PPP structuring,
compounded by the lack of institutional capacity and an established framework, was the reason for
deferring this option. The government nonetheless remains committed to developing PPP project
financing specifically for the MR3 as part of its reform programme. The Manzini Bypass, currently
being designed, and the existing MR3 Mbabane Bypass and Mbabane-Ezulwini-Matsapha (both
previously Bank-funded projects), have been ear-marked as potential candidates for future tolling. The
proposed training on PPP and contracting methodologies helps government meet some of its
aspiration.
2.4 Project type
2.4.1 The project falls under the Bank’s investment programme on transport infrastructure
operations. It is a standalone project being financed by loan and grant facilities of the Bank and the
activities are well-defined works and implementation of economic and social measures. The grant will
finance Technical Assistance activities commensurate of the requirements of the Fund.
2.5 Project cost and financing arrangements
2.5.1 The estimated project cost (net of taxes/duties including contingencies) is USD132.2 million
(UA86.4 million) of which 76% is foreign exchange (Table 2.2). The project will be co-financed with
Government and with Kuwait Fund, BADEA, Abu Dhabi Development Fund and OFID, participating
collectively. Bank loan and grant component will be sourced from the sovereign ADB window and
Middle Income Country (MIC) Technical Assistance Fund, respectively.
6
Table 2.2 – Total Project Cost Estimates by Component (Net of Taxes)
FE= 3%; LC: 6%
2.5.2 The co-financing arrangement with the development partners will be on parallel financing
basis. It entails: (i) the Bank and GOKS jointly co-financing km0 to km13, designated as Lot 1; and
(ii) GOKS and other Development Partners (described above) jointly co-financing km13-km30,
designated as Lot 2. Detailed cost breakdown by component, lot and funding source is provided in
Appendix IV.
2.5.3 The contribution of the project by funding source is illustrated in Table 2.3 The Bank’s loan
contribution is USD45.9 million (UA30.0million), equivalent to 34.7% of project cost, and a
UA1.2million grant. The Government counterpart contribution is 20.8% and the grouped funding of
Kuwait Fund, BADEA, ADDF and OFID constitutes 43.1% of project cost.
Table 2. 3 - Sources of Financing
SOURCE Contribution (in millions) % Total
USD (UA)
Government 27.5 18.0 20.8%
AfDB (ADB) 45.9 30.0 34.7%
AfDB (ADB MIC) 1.8 1.2 1.4%
Sub total 47.7 31.2 36.1%
*BADEA 10.0 6.5 7.6%
*ADDF 18.0 11.8 13.6%
*KUWAIT FUND 14.0 9.1 10.6%
*OFID 15.0 9.8 11.3%
Subtotal 57.0 37.2 43.1%
TOTAL 132.2 86.4 100% * co-financiers group funding
2.5.4 The project cost by procurement category and expenditure schedule are shown in Tables 2.4
and 2.5.
UA millions USD (million)
Components
Foreign
Exchange
Local
Currency Total Costs
Foreign
Exchange
Local
Currency Total Costs %Foreign
Civil Works 53.17 12.71 65.88 81.35 19.45 100.80 80%
Consultancy Services 2.60 0.71 3.31 3.97 1.09 5.06 79%
Implementation of ESMP 0.00 0.17 0.17 0.00 0.27 0.27 0%
Resettlement & Compensation 0.00 1.91 1.91 0.00 2.93 2.93 0%
Weighbridge 0.35 0.35 0.70 0.53 0.53 1.06 50%
Feeder Road 0.00 0.58 0.58 0.00 0.89 0.89 0%
Technical Assistance Services 0.82 0.20 1.02 1.25 0.31 1.56 80%
Base Cost 56.94 16.63 73.57 87.1 25.47 112.57 77%
Physical 5.69 1.66 7.35 8.71 2.55 11.26
Subtotal 62.63 18.29 80.92 95.81 28.02 123.83
Price contingency 2.92 2.56 5.48 4.49 3.88 8.37
TOTAL 65.55 20.85 86.40 100.3 31.9 132.2 76%
7
Table 2.4 – Project Total Cost by category of expenditures (UA Million)
Category
Foreign
Exchange
Local
Currency Total Costs %Foreign
Works 53.52 13.64 67.16 80%
Services 3.42 0.91 4.33 79%
Miscellaneous 0.00 2.08 2.08 50%
Base Cost 56.94 16.63 73.57 77%
Physical 5.69 1.66 7.35
Subtotal 62.63 18.29 80.92
Price contingency 2.92 2.56 5.48
TOTAL 65.55 20.85 86.40 76%
Table 2.5 – Total Expenditure schedule by component (UA Million)
Components 2014/15 2015/16 2016/17 2017/18 2018/19 Total
Civil Works 0.00 9.82 23.09 26.41 6.56 65.88
Consultancy Services 0.17 0.66 0.99 0.99 0.50 3.31
Implementation of ESMP 0.00 0.09 0.03 0.03 0.02 0.17
Resettlement & Compensation 0.95 0.96 0.00 0.00 0.00 1.91
Weighbridge 0.00 0.11 0.24 0.28 0.07 0.70
Feeder Road 0.00 0.15 0.17 0.17 0.09 0.58
Technical Assistance 0.10 0.42 0.20 0.20 0.10 1.02
Base Cost 1.22 12.21 24.72 28.08 7.34 73.57
Physical 0.12 1.22 2.47 2.81 0.73 7.35
Subtotal 1.34 13.43 27.19 30.89 8.07 80.92
Price contingency 0.00 2.28 1.87 1.10 0.23 5.48
TOTAL 1.34 15.71 29.06 31.99 8.30 86.40
2.6 Project’s Target area and Beneficiaries
2.6.1 The Manzini-Mbadlane Road Project serves the Manzini city, the commercial hub of
Swaziland. The city provides employment to more than 250,000 Swazis who would directly benefit
from the project in terms of economic activities and travel cost and time. The road also connects to the
main tourist and social infrastructure situated in Manzini municipality and directly linked to South
Africa, its largest trading partner and socially-integrated neighbour. The project provides easy access
to the new international airport serving the entire population. The road facilitates easy access
workplace by taxis, cars, and other public transport. There are other small scale commercial and
agriculture activities along the project road. The new road will help in the delivery of supplies and
inputs as well as provide accessibility to potential buyers.
2.6.2 Matsapha is the industrial heartland of the Kingdom with broad manufacturing base for
textiles, metal works, food processing, paper mills, engineering works, beverage processing, building
and construction, and others. It provides employment to more than 30,000 Swazis across the
employment spectrum including market trading. The project road will enhance current access for the
trading industries and will benefit the population of Matsapha. The sources of raw material for these
industries are the farming communities along the corridor will therefore benefit from the increased
activities within the supply chain.
2.6.3 Beyond the project geographic boundaries, the sugar development projects by government and
donors (currently the EU) east of the country in the Lubombo region (see project map), trucks to the
industrial and commercial centres will benefit from quicker access and reduced transport cost. Transit
traffic between Mozambique and South Africa will similarly benefit. The port of Maputo would
experience increased activities at its port as a result of potential growth in exports to international
markets.
8
2.7 Participatory process for project design and implementation
2.7.1 The Swaziland Environmental Authority (SEA) directive requires public consultation to be
carried out as part of the ESIA scoping exercise and these were held and minuted on 19th
and 26th
March and 4th June 2010. Subsequent meetings were held during the ESIA preparation exercise. The
make-up of the stakeholders engaged were government institutions, Members of Parliament, local
residents, businesses, Manzini City Council and the traditional authorities of Mafutseni and Malindza.
The local and traditional authorities directly affected by the project were the focus areas of public
engagement. The methodology of engagement was field visits, workshops and meetings. Some of the
issues or concerns expressed at community meetings which have informed the project design,
included (i) employment opportunities, (ii) land expropriation and compensation, (iii) traffic and
personal safety and accesses points (schools, residences, farms, bus/taxi ranks etc.); (iv) loss of
business; (v) project extent, timeframe and impact on planned commercial developments; (vi)
transparency and community awareness of the project activities. A detailed survey and consultation
was carried out for all properties affected by the project and the vetting and valuation process is in line
with the Acquisition of Property Act. The Bank consulted with the local council and donors in the
course of preparing this project.
2.8 Bank Group experience, lessons reflected in project design
2.8.1 The Bank’s total commitments in the transport sector in Swaziland aggregates to UA 127.79
million, covering ten operations (seven projects and three studies), all of which have been completed.
The most recent is the Transport Master Plan, which completed in February 2014. Project Completion
Reports (PCR) on investment are up to date.
2.8.2 The main lessons on past performance of Bank-funded transport sector operations in
Swaziland are: (i) changes in designs during project implementation which led to cost overruns; and
(ii) counterpart contributions towards project costs were higher than envisaged at appraisal as a result
of scope changes. Both lessons are jointly mitigated through design review, a recommendation of
recent PCRs.
2.8.3 Unlike previous projects, the physical environment and terrain at project location is very gentle
hence unchallenging and follows existing alignment with wider road reserve. It is envisaged that the
rationale and concept in providing easy access for local traffic at the onset will eliminate design
changes in the implementation stage, which was a factor in previous projects. Though severe
procurement challenges were not experienced in the past, the Bank’s regional office (SARC) will
organize seminars/workshops to familiarize GOKS with Bank’s procurement procedures on need
basis in order to minimize delays. Support for financial management has been identified as an area
that merits attention and has been addressed by the project.
2.8.4 MPWT, through the RD, has the responsibility for the planning, construction and maintenance
of the road system. Planning, co-ordination and management of road transport investments are
reasonably good, taking into account the human resource constraints. To augment the institutional
capacity of the RD, the project will provide Technical Assistance (TA) to support the project. This
assistance will, among others, strengthen the management, planning and supervisory skills of RD to
manage the project effectively.
Key performance indicators
2.8.5 The project’s performance indicators are provided in the Results Based Logical Framework
(RBLF) including baseline and targets. The indicators include: (i) travel time; (ii) gender equity
sensitizations, (iii) HIV/AIDS sensitization; (iv) indicators of the ESMP; (v) vehicle per day or ADT;
(vi) road accidents; (vii) jobs created; (viii) no of persons trained; (ix) cross border export trade (tons)
and trade traffic (% of total traffic), and; (x) no of sites of feeder roads improved. Other baseline data
will be collected by the supervision consultant and the Executing Agency. Data associated with the
9
ESMP will be coordinated between the project and SEA. Data on HIV/AIDS incidences will be
collected by the project by a service provider and coordinated with the Executing Agency and
NERCHA. The data collected will be on knowledge, attitudes and practices, from which to base the
awareness and prevention activities related to the road’s zone of influence, before and after the
project. In identifying the locations for the feeder road intervention, the Executing Agency, in
collaboration with the Ministry of Health, will collect data on maternal-related incidences to support
each intervention.
3 PROJECT FEASIBILITY
3.1 Economic and Financial performance
3.1.1 Traffic analysis carried for this project was necessary to justify the economic benefits of the
investment accrued during the serviceability life of the infrastructure utilizing established design and
maintenance parameters. The primary beneficiaries are the road users, through whom economic
benefits to the country are realized and the objective of the traffic analysis, is to identify all categories
of road-user traffic on the project road in order to quantify benefits.
3.1.2 Classified traffic counts were undertaken at major junctions on the project road and historic
traffic data were reviewed and analyzed. Classified 12 hour traffic counts on the project road were
conducted in November 2009 at twelve (12) locations and updated in August 2013. For the purpose of
the analysis, the project road was divided into four main sections based on traffic characteristics,
starting from the Manzini city circle (section 1), with the heaviest traffic, travelling eastwards to
Mbadlane (section 4). The Annual Average Daily Traffic (AADT) derived and used for the analysis
were 7,779 and 10,440 for the entire road and Lot 1 respectively.
3.1.3 The traffic growth for normal and generated traffic were analysed. Diverted traffic was not
taken into account as there are no viable or competitive alternative routes to the project road. Traffic
growth rates were obtained from the road feasibility study of the project road and past records of
previously funded projects. In the last decade, economic growth has been around 2-3% whereas traffic
growth rates recorded have averaged 5% for cars and light vehicles, about 4% for buses and trucks.
Based on the above forecast, the Average Traffic Growth Rates used for the 20 years post-
construction period were derived. A ramp up of traffic following construction is estimated as 7%p.a
from 3%p.a growth during the construction period and returning to the normal growth of 4%p.a for
each of the consecutive five year periods. In addition to growth in normal traffic, traffic generated by
operations of the new Sikhuphe International Airport had also been considered.
3.1.4 The methodology for the economic analysis was based on the comparison of 'with project' and
'without project' scenarios over a 20 year service life of the road each with a corresponding
maintenance regime. The maintenance interventions for the ‘without project’ approach is annual
routine maintenance, patching and resealing every 5 years. The maintenance interventions for the
‘with’ project road includes routine maintenance, patching and overlay every 8years.
3.1.5 The economic analysis was carried out using the Highway Development and Management
(HDM - IV) model and the viability of the road assessed using the criteria of Economic Internal Rate
of Return (EIRR) and Net Present Value (NPV). The economic costs included construction costs,
routine and periodic maintenance costs, consultancy services and the physical contingency. A
conversion factor of 0.8 was used to derive the economic costs from financial cost. The salvage value
at the end of the 20-year life span was calculated on the basis of the estimated residual value of the
aggregated components of the infrastructure to be 20% of the construction costs. The analysis was
modelled in USD based on a prevailing rate of exchange. Details on the cost is provided in Technical
Annex B7
10
3.1.6 The economic return on the total investment based on the quantifiable project economic
benefits and costs, discounted at 12%, during the design life of 20 years is EIRR of 21.9%, with a
NPV of USD52million. The corresponding EIRR and NPV values for the Bank-funded section are
24.8% and US$36million, respectively. The net benefit is USD107million and USD61million for
whole project and Lot 1, respectively. The EIRR in both cases are above the cut-off rate of return of
12% opportunity cost of capital in Swaziland and thus confirms the viability of the intervention in the
project. Detailed information on the analysis is provided in Technical Annex B7.
Table 3.1: Key Economic Results Summary
Scenarios EIRR (Lot 1 and 2)) EIRR (Lot 1)
Base case 21.9% 24.8%
Construction cost (+10%) 20.3% 23.2%
Benefits (-)10% 20.4% 23.7%
Construction cost (+10%) & Benefits (-10%) 18.8% 22.0%
3.1.7 The VOC on the existing project road is estimated at US$ 0.41/km for cars and USD 1.68-
USD 3.01/km for light buses through to trucks and the equivalent weighted average is US$ 1.2/veh-
km, which is reduced to USD 1.07/veh-km when the project opens. The average travel time over the
30km section of the MR3 is reduced by 28% from 45mins hours to 32minutes.
3.1.8 The sensitivity analysis was carried out on three scenarios and are summarised in Table 3.1
with significant margin within the EIRR threshold on each of the variables. The switch values of the
variables, beyond which the project loses its economic viability, i.e. EIRR less than 12% or NPV
being zero or negative, were checked. On cost, the viability of the whole project and Lot 1 could be
threatened if cost is increased by 95%. On benefits, 30% and 45% reduction on the whole project and
Lot 1 respectively could threaten economic viability.
3.2 Environmental and Social impacts
Environment
3.2.1 The project has been validated as category 2 by ORQR on 29 July 2013. The ESMP, prepared
in 2013, was summarized and posted on AfDB’s website on 25 April 2014.
3.2.2 The environmental impacts of project activities would include some of the following:
vegetation clearance; noise and dust pollution; disturbances to the biodiversity and fauna migration;
potential encroachment of archaeological and cultural sites; waste generation from construction,
operation activities and camp activities possibly leading to pollution of soil and ground water; creation
of borrow pits. Construction traffic and use of heavy machinery will give rise to increased risk of
injuries to employees and the public. There is expectation of labour influx and generated vehicular
traffic to the project area which would increase pressure on social and infrastructure services, increase
health risks (STI/HIV/AIDS) and impact on bio-diversity, natural resources such as trees and wildlife.
The country is well served by watercourses and biodiversity, particularly in the rural setting, which
the ESIA makes adequate provisions to preserve or minimize impact.
3.2.3 In general, the contractor will comply with the requirement of the ESMP in mitigating
environmental risks. In addition, the contractor will compile a comprehensive waste management plan
covering all incidences and activities. Some of the mitigation measures to be deployed include
construction of temporary and compliant waste and pollutants (fuel, oils, hazardous substance etc.)
storage and disposal facilities. Enabling works such as vegetation clearance of sites will be planned
and executed by controlled sectioning of sites to ensure rehabilitation or recovery of vegetation post
construction. This will also minimize soil erosion and contamination of watercourse. Storage of
stockpiles of spoil will be controlled so as to minimize washout of spoil, dust pollution and
11
sedimentation in water courses. Unprotected roads, particularly temporary diversions and tracks in the
proximity of urban or built up areas, will be watered and speed limits imposed to minimise dust
pollution and assure road safety. The contractor will collaborate with the road safety department of
MPWT in deploying road safety measures that impact the public. Construction noise will be
minimised through the use of well-serviced and efficient plants and equipment. Individual and mature
trees of conservation importance will be marked and avoided, wherever possible. Watercourse will be
monitored for contamination. The contractor will raise awareness among staff and public on fauna and
flora protection. Use of existing borrow-pits and spoil sites will take precedence over new sites which
will undergo environmental assessment (ESIA) prior to use. The overseeing authority, SEA, will
collaborate with the project to ensure compliance with the project’s environmental licence. Further
mitigation measures such as health risks and road safety are addressed in subsequent sections.
Climate change
3.2.4 Swaziland has one of the lowest CO2 emissions among its middle income counterparts at
0.9mt per capita (1.6mt for middle income countries) and marginally above the average of Sub Sahara
Africa of 0.8mt per capita. The major emitters are the industrial and mining sectors with
disproportionate emissions by the transport sector from vehicle-km travelled. The project’s mitigation
and adaptation features are as follows.
3.2.5 Mitigation: Improving vehicle usage and better traffic management which improve vehicle
operational efficiency is an intrinsic feature of the engineering design and will inherently mitigate and
contribute to the reduction in emission. Construction methodology will be scrutinised through control
measures (project specification) to minimise adverse impact. The project will ensure efficient
machinery are used and embark on fuel efficiency awareness campaigns. Waste reduction efforts
during construction will ensure that methane production from waste associated with the project is
reduced, if not avoided. Practical adaptation possibilities of the design, over and above the standard
design practices will be further reviewed during the design review phase against the Bank’s Climate
Change requirements to enhance environmental sustainability.
3.2.6 Adaptation: Climatic conditions used for the design of road infrastructure are generally to
accommodate temperature fluctuations and rainfall patterns which affect the configuration and
structural behaviours of bridges, pavement types and profiles, sizing of drainage structures and
preserving natural habitat. In addition, safety factors are built in the design to accommodate excess
loading conditions. There is no country specific data supporting irregular patterns on each of the
above. However, the engineering design adopted for the project complies with the standards
commensurate with the environment thus has inherent adaptation features. The asphaltic pavement
structure is sound, the bridge configuration and thermal movement are adequately accommodated, the
drainage structures are well designed and provisions made for the migration of animals. Although the
design has taken into account maintainability, a principle for all good designs, the risk to the resilience
of the infrastructure lies in the quality of the maintenance regime planned for the infrastructure.
Therefore appropriate road maintenance is part of the adaptation strategies that this intervention will
facilitate.
Gender
3.2.7 Gender equity and relations are embedded in Swaziland’s constitution and receive significant
attention from development partners. To ensure aid effectiveness, the project design, in lieu of
designing own intervention, is anchored on existing gender programmes that have direct linkage with
the project activities. The project will contribute to addressing employment inequality for women by
earmarking not less than 20% of an expected 500 skilled and unskilled labour force for women and
with preference given to Swazi nationals and locals of both genders. A mechanism for the recruitment
process may be through job fairs in and around the key project area and towns such as Manzini,
Hhelehele, Mafutsemi and Mbadlane. The job and pay distribution will respect the national legislation
12
of employment and compensations. Secondly, the project will conduct sensitization programme that
will encompass Sexual and Gender Based Violence (SGBV), instituting codes of conduct on all
project sites and providing adequate welfare facilities. The sessions will be executed by a service
provider recruited by Executing Agency and will follow format and structure of established
programme (see Technical Annex B8 for details).
3.2.8 Consultation on gender issues, particularly on maternal health, suggested project to consider
intervening in minor rural roads to local health facilities/clinics that are within the zone of influence of
the project road. The Swaziland MDG 2012 Progress Report cites accessibility difficulties
experienced by expecting mother as one of the critical contributors of child and maternal mortalities in
the rural areas of the country. An intervention that significantly reduce the travel time to clinics will
save lives and contributes to reduction in avoidable mortalities. To be included as part of the civil
works, the project makes provision to repair or rehabilitate a number of existing impassable rural
feeder roads at selected inaccessible sites linking vulnerable communities to the local clinic. The
project sites shall be selected by the Roads Department and shall be in the district of Manzini and
Lubombo, which are within project zone of influence. Potential rural communities may include:
Mkhiweni (to Dvokolwako clinic); Mhlabeni (to Matsanjeni Good Sherpered clinic) and others. A
provisional sum of E10million (US$890,000) sourced from ADB loan has been allocated for this
intervention and the Bank will closely monitor this activity.
Social
3.2.9 The road project will have both negative and positive social impacts during implementation
and operation. Among the immediate benefits will be creation of wealth among the 500 who will
obtain jobs at construction sites. Majority of the jobs will be for unskilled and semi-skilled local
people. In addition, suppliers of construction materials to site, and services such as site security
services, cleaning services and meal services to workers. During operation, the project road will yield
economic benefits to road users and facilitate economic growth in the areas served. In addition, the
project will construct road side markets for use by communities. These will serve several purposes
including providing space for traders and venders to operate from; improving the environment and
hygiene through provision of toilet facilities, waste pits and clean water; and improve road safety. The
road design accommodates service roads which will facilitate use of the roads by local communities in
a secure and safe way.
3.2.10 A potential negative outcome of the project would be the risk of spread of HIV/AIDS/STI and
TB in the communities in the project area. The project design therefore includes activities on
sensitization and awareness campaigns for project workers and public communities. In section 1.3, the
level of donor coordination in the social and health sectors were described as active and to ensure aid
effectiveness, the Bank consulted with Government and some donors (EU, UNDP) on existing
programmes to avoid or minimize duplication. The Bank identified on-going programmes of the
United States PEPFAR (President's Emergency Plan for AIDS Relief), NERCHA (the National
Emergency Response Council on HIV and AIDS) through its affiliates namely SWABCHA
(Swaziland Business Collation of HIV and AIDS), as collectively the most effective way of
maximizing impact. Other programme are organized by Community Based Organizations and NGOs
through the CANGO (Coordinating Assembly for NGOs). A minimum of four (4) sensitization
sessions will be conducted during implementation period with the expectation of reaching no less than
2000 people within the zone of influence of the road. The RD will be responsible for the session
executed through a service provide and in collaboration with NERCHA, SWABCHA and CANGO. A
provisional sum of the E600,000 (US$54,000) has been set aside as part of the ESMP implementation.
Road Safety
3.2.11 Increase in road accidents is a potential outcome of the project thus risking project objective.
During implementation, potential causes of road accidents could stem from temporary traffic
13
management measures such as access blockages and diversions. During normal use of the project
road, increased vehicular traffic and driving speeds could result in increased accidents. An estimated
220 fatalities per year are the result of road accidents in Swaziland, and the MR3 has one of the
highest number of incidents being the main thoroughfare for local and cross-border traffic. In 2013,
163 major accidents were recorded. The project design has included measures for mitigation which
include ensuring compliance by contractor of proper and adequate signage and demarcations. The
project will conduct awareness and educational programs (roadshow) for motorists and pedestrians
during implementation and operational phases. A provisional sum of E550,000 (US$50,000) has been
set aside for this purpose. Above all, the road design shall undergo a technical safety audit to ensure
compliance with safety measures.
Involuntary Resettlement
3.2.12 The project works will directly impact seventy five (75) properties in a form of land,
structures, formal and informal businesses, crops and trees. Among the affected are eight (8)
properties that belong to government or are in national trust tenure. An abbreviated resettlement plan
has been prepared in line with the Bank’s ESAP. A provisional budget of E33.0 million (excluding
contingencies) has been set aside for compensation and resettlement support. After completion of the
road, some of the informal businesses will resume in the roadside markets that will be constructed
under the project.
4. IMPLEMENTATION
4.1 Implementation Arrangements
4.1.1 The Roads Department (RD) of MPWT will be the Executing Agency (EA) for the project.
The Chief Roads Engineer (CRE) of the RD will nominate a Project Coordinator (PC) for each Lot
(described in section 2.5), who will be responsible for the day-to-day management of respective road
section. The CRE will have overall responsibility for the delivery of the project road. The local
authority will work with RD to oversee the resettlement and compensation activities and the
implementation of social measures. Similarly, SEA and Ministry of Tourism and Environment will
collaborate with the RD to oversee the environmental compliance. Supporting the PC will be a project
team of engineers, procurement, environmentalist and financial management experts. The PC shall
have a minimum of BSc. Degree in Civil Engineering and a minimum of 10 years experience in
capital projects in roads infrastructure.
4.1.2 The TA for the establishment of the Road Authority and Road Fund, which is funded by the
MIC grant, will be managed by the MPWT in collaboration with the Ministry of Finance. The TA for
the training and project management support will be managed by the RD and the Secretary of the
MPWT will have oversight responsibility. The coordination structure for overseeing the establishment
of the Road Authority and the Road Fund will comprise the Permanent Secretaries of all the relevant
ministries, including the Ministry of Finance and Economic Planning and MPWT with an oversight
responsibility at ministerial level.
4.1.3 To assist the CRE in overseeing the management of the two contracts or Lots, a Technical
Assistance support in the form of an individual consultant specialised in contract and project
management will be appointed by the project, and funded through the loan facility. The CRE shall be
responsible for designating task to the consultant in a manner that ensures effective management of
the project.
14
Procurement
4.1.4 The project road will be implemented as two main lots (Lots 1 and 2), as described earlier, and
procured under separate procurement rules. The AfDB rules will be used for Lot 1 components and
the rules of other co-financiers for Lot 2.
4.1.5 The Bank-funded main civil works contract, which comprises: (i) construction and upgrade of
new and existing carriageway and all associated infrastructure, utilities and services; (ii)
implementation of environmental and social measures; (iii) construction of weighbridge and
implementation of axle load control measures, will be procured on the basis of International
Competitive Bidding (ICB) with prequalification in accordance with the Bank’s “Rules and
Procedures for Procurement of Goods and Works”. The civil works contract for feeder road access
will be procured through National Competitive Bidding (NCB) using the Bank Standard Bidding
Documents. The Bank’s Standard Bidding Documents will be used with Bank’s prior review of the
documents at each stage of the procurement phase.
4.1.6 The Bank funded consultancy services, including technical assistance services will be procured
by short-listing of qualified consulting firms in accordance with the Bank’s “Rules and Procedures for
Use of Consultants”. The method of selection would be Quality and Cost Based Selection (QCBS).
Technical, financial, and road safety audit services will be procured through national shortlist using
Least Cost Selection (LCS) method.
4.1.7 The Executing Agency will be responsible for the procurement of goods, works, consulting
services, training services and an assessment of the capacity to implement procurement actions for the
project has been carried out by the Bank. Based on the assessment, it has been proposed to strengthen
this capacity with the appointment of one Senior Procurement Specialist(s) in MPWT. Further details
of procurement arrangement are discussed in detail under Section B5 of the Technical Annex.
Financial Management and Disbursement Arrangements
4.1.8 The MPWT will be responsible for all aspects of Project Financial Management. The Finance
Department of MPWT was assessed for its capacity to handle the Project Financial management
responsibilities and in broad terms, the staff, systems and procedures in place were fund to be
adequate, subject to a few mitigation measures proposed. Whilst the department is manned by staff
with sufficient experience in public sector accounting and prior experience in Bank funded operations
of a similar nature the staff are on secondment from the Accountant General’s Department and hence
subjected to planned periodic rotation across other Government Ministries and Departments. While
broader experience is beneficial to staff, the lack of continuity potentially disrupts the execution of
project tasks and this is reflected in the delayed auditing of existing Bank portfolio. The Bank
therefore finds it necessary to recommend a Financial Management Officer/consultant recruited to
assume overall operational responsibility over the financial management of the project. Due to the
inability of the existing cash-based Treasury Accounting System (TAS) to comprehensively meet the
Bank’s record keeping and financial reporting requirements (particularly with respect to capital and
accruals accounting), a basic accounting system (including procedures) will be put in place to
complement the TAS.
4.1.9 All disbursements from the Bank’s resources will follow the procedures and requirements
outlined in AfDB’s Disbursement Handbook, as applicable. Disbursement will be principally through
the Direct Payment Method, but a Special Account will be opened (in USD) with the Central Bank for
the purposes of paying expenses of a smaller nature to service providers, including those under (i)
road safety, gender and HIV/AIDS awareness campaign component and; (ii) project management
support (Section 2.2, Table 2.1). Periodic and Annual Financial reporting will be carried out in
accordance with Bank rules. The Office of the Auditor General will be responsible for the annual
external audit as per its constitutional mandate, although such services may be outsourced at the
15
Auditor General’s discretion. It will be desirable for the RD/MPWT to engage the Auditor General in
good time to confirm what audit arrangements will be put in place. The procurement of the
consultancy services for the audits will be in line with Bank’s procedures and the cost financed from
the proceeds of the ADB Loan.
4.2 Monitoring
4.2.1 Project monitoring will cover: environment, social, quality of works, general management
activities of the project and compliance with various institutional agreements and protocols (e.g. local
employment laws). The Bank will monitor adherence to key milestones, quality of deliverables and
outputs through periodic supervisions, mid-term reviews, implementation support and quarterly
reporting. The ESMP identifies project impact, the control measures and implementation
responsibilities. The monitoring regime, which will reflect impact and mitigation measures described
in Section 3.2 above, will cover all phases of the project. Given the variability of the bio-physical
environment, the ESMP will be a live document, subject to periodic reviews and updates, to ensure its
effectiveness as a working tool. The Bank will monitor closely the activities on the resettlement and
compensation of PAPs ensuring compliance with the agreed ARAP to ensure project schedule is not
unduly compromised. The Bank’s regional office (SARC) will be on hand to monitor the project. The
project implementation and monitoring schedule is provided below in Table 4.2.
Table 4.2 – Implementation Monitoring Timeframe
Timeframe Milestone Monitoring process Feedback loop
Q4-2014 Project Launching Field Mission Progress Reporting
Q1-2015 Pre-contract services start Field Supervision Progress reporting
Q3- 2015 Procurement of Civil works Supervision Progress Reporting
Q3 -2016 Construction Start + 6 months Field Mission/Midterm
Review Progress Reporting
Q2 -2018 Substantial completion (3 months prior to
construction End date ) of civil works
Field Mission/Project
Completion Report
Project Completion
Report
Q2-2019 Defects Liability Period & First year of
Operations Project Evaluation
Standard supervision program : Q1-2016; Q2-2017; Q4-2017;
4.3 Governance
4.3.1 The Mo Ibrahim Index of African Governance ranks Swaziland poorly in participation and
human rights, as well as sustainable economic opportunity. In 2012, Swaziland was ranked 27 out of
52 countries, with a score of 49 (well below the regional average score of 59). Performance in public
management, a sub-category of governance, has dropped by 8.4 points over the last six years to a
score of 53.1. In addition, the Bank’s Country Policy and Institutional Assessment (CPIA) shows a
weakening governance environment, with the country’s score declining from 3.5 in 2010 to 3 in 2011.
In 2012, the governance score improved to 3.3 but the country’s ranking slipped to 47 from 44 in
2011. There are major weaknesses on the expenditure side due to inefficient resource allocations.
Strengthening the budgetary process to enhance resource allocation and capacitating oversight bodies
to ensure effective delivery of their core mandate and to foster transparency in procurement and
accountability will be important. The Fiscal Adjustment Roadmap (described in section 1.1.4), jointly
sponsored by donors, has been structured, developed and under implementation to help address some
of the institutional challenges faced by the government.
4.4 Sustainability
Recurrent Costs
4.4.1 Throughout the construction and Defects Liability Period for the road, the contractor will be
responsible for road maintenance. One year after commissioning, the maintenance expenditure will be
taken over by the RD and will be charged to the road maintenance budget. The maintenance activities
comply with the current maintenance policy mostly comprising routine maintenance of the roadside,
16
ancillary works including pothole patching. This is estimated at E8.3 million per year for the project
road. Also periodic maintenance, comprising of resealing of the surface after every eight years of
traffic use would be undertaken to refresh and prolong the life of the road. It is estimated that about
E15.0 million would be needed for periodic maintenance. The above maintenance expenditure would
be met by the GOKS through allocations to the RD from the national budgets.
Project Sustainability
4.4.2 The total length of road network in Swaziland is approximately 4,800 km, of which 1,200 km
is paved. Forty eight percent (48%) of the road network is classified as Main Roads (MR) with
District Roads (DR) making up the remaining 52 percent. Of the paved network, conditions vary: 33%
as very good condition; 45% good; 18% fair; and; 4% poor. Swaziland has a relatively well developed
road network which links the various parts of the country. The government has been investing in roads
construction, upgrading and rehabilitation and the total proclaimed road network grew by 20 percent
between 1997 and 2012. Most of the roads radiate from Mbabane and connect to the MR3, linking
regions in addition to being part of the country’s major import-export corridors. The responsibility for
the formulation of road development plans and sustainability of quality road networks through
adequate maintenance falls under the Roads Department. Municipalities of the cities and towns have
own departments responsible for the administration of their road networks although RD assumes the
role for most of the road network and funding is through national budget.
4.4.3 Based on the maintenance report, needs for maintenance and rehabilitation of the existing
roads is E120 million annually though to sustain the condition of the paved roads, it is estimated that
minimum annual budget allocation of E180million is required. The sustainability of the road
infrastructure is critical for sustainable economic growth given the role it plays to the country. The
consequence of increased trade traffic is compromising the design life and serviceability of the
infrastructure.
4.4.4 At macro level, the Bank’s CSP cites a number of risks to investment, some of which have
direct impact on the sustainability of investment. The pertinent factors include: (i) the lack of
governance structures; (ii) skills shortages and limited institutional capacity; (iii) inadequate public
financial management systems. Translating this to the sector, the risks are: i) inadequate capacity of
the sector agencies in managing assets; (ii) lack of financial governance and management systems to
better allocate budget and manage recurrent expenditure; and (iii) the lack of reforms to safeguard
investment such as absence of axle load control measures. These risks are reflected in Section 4.5 as
sustainability risks to be mitigated by the project.
4.4.5 The government recognises the above as issues to be addressed and conducted a study to
develop the principles, legislative process and the framework for the implementation of the reforms in
2005 (Swaziland Road Sector Reform: Framework for the Road Sector Reform Principles and
Processes - December, 2005). It also brings it in line with the aspirations of the National Transport
Policy and the SADC Protocol, which addresses interoperability and harmonization on a regional
perspective. One of the objectives of the sector reform is structural transformation of the sector in the
form of organizational restructuring of the agencies. The intended output is the transformation of the
current Roads Department, from a department under the MPWT, to an autonomous Road Agency or
Authority headed by a CEO with powers to determine funding needs for recurrent expenditure. The
funds for the Agency will consist of moneys from road user charges (RUC) through the RUC account
or Road Fund. The source for the RUC will be from fuel levy, license fee, cross-border charges and
other charges.
4.4.6 The Funds entity, i.e. the Road Fund, will be an autonomous entity responsible for road
funding function including funding allocation approvals. In general, these reforms are consistent with
the standard structures region-wide to ensure funds are ‘ring-fenced’ for recurrent expenditure and
investment of road infrastructure, as opposed to being absorbed into national budgets. While some
17
progress has been made, the process has been slow and intermittent. The Legislative process is in the
final stages of parliamentary enactment. Given the level of investment in the country, the Bank
considers it relevant to facilitate the implementation of the reform to safeguard its investment and
ensure sustainability of trade-led growth.
4.4.7 The Bank has reviewed some of the available information on the sector reform programme and
consider it a necessary intervention to support the government. The project has therefore included
three components as a contribution to the reform. The project will finance training programmes on
two selected themes (OPRC methodologies and PPP) for key MPWT staff as part of the institutional
capacity building. The institutionalization and establishment of the Road Agency and the Road Fund,
which is a key part of reforms programme will be implemented as per the existing implementation
framework and legislative process. There is currently no operational axle load measures in the country
and by encouraging trade, there is real risk to the investment in terms of uncontrolled loading on the
infrastructure. The project will finance the construction of a weighbridge and the formulation of
operational procedures for axle load control as to complement the sector reform programme.
4.5 Risk management
4.5.1 This project is characterized by two risk profiles. They are risks associated with
implementation and risks to sustainability of the investment. Other project-specific risks relate to
features that are considered unique to the project. A source of information to better evaluate country
specific risks, in addition to generic risks typical of such project, is past appraisal reports and PCRs.
4.5.2 Implementation risks: These comprise pre-construction, primarily procurement-related risks,
and construction risk, both of which may lead to cost overruns and schedule delays. Potential
contributing factors include: (i) longer procurement period; (ii) capacity constraint of MPWT to
manage two concurrent contracts; (iii) design scope changes; (iv) compensation and resettlement
complications; (v) technical and environmental risks. Of these risk factors, the most probable is the
lack of capacity of MPWT, though a common feature of past project was cost overrun caused by
design scope change. The project has made the following provisions to mitigate the implementation
risks:
a) Improving the capacity of the Executing Agency in the form of TA to assist in the
management of two contracts: Notwithstanding the TA support, RD has significant experience
in managing donor-funded capital projects including the Bank’s. The added TA support is to
mitigate potential risks in managing concurrent contracts procured by differing procurement
rules.
b) Risk of procurement delays is mitigated by providing short term, procurement support on
Bank procurement rules to RD.
c) The likelihood of design creep and consequently cost increase are considered low. Project cost
has been reviewed (January 2014) to accommodate price changes and adequate contingencies
have been incorporated to reflect a recent project in the country. Secondly, and unlike previous
projects, the project allows for a design review to be undertaken in order to ensure it fully
meets the needs of government and follows a recommendation of Bank PCRs.
d) Resettlement and compensation comprise mainly property compensations and modest
resettlement. The risk is less and the process of compensation has already began with
budgetary allocations ‘gazetted’ (February 2014).
4.5.3 Sustainability risks: As addressed in section 4.4, the risks to sustainability are: i) inadequate
sector reforms and the failure to implement; (ii) inadequate capacity of sector agency; (iii) inadequate
provisions for recurrent expenditure for maintenance. The proposed mitigation measure has medium
to long term dimensions in the form of institutional and transformational reform of the sector and the
18
project addresses some of the challenges through three interventions described under project
sustainability.
4.6 Knowledge Building
4.6.1 This project provides the opportunity for new skills to be developed within the sector. It
enables the Bank to intervene in building the knowledge capacity of the sector in a manner that
empowers the sector agencies to better manage road assets. The intervention institutes structured
reforms, which (i) assigns clear responsibilities for managing roads; (ii) creates ownership of roads to
encourage cost effective service delivery; (iii) stabilises road finance through reliable source of funds,
and; (iv) strengthens management of roads by introducing sound business practices. This is a
transformational process for the sector and the Bank will leverage experience gained in working with
established parastatals in member countries to positively influence and enhance the operations of the
new setup. The Bank has proposed semi-annual reporting on the implementation of the reforms in
order share and build on its experiences.
5 LEGAL INSTRUMENTS AND AUTHORITY
5.1 Legal instrument
5.1.1 The Bank instruments to finance this project are:
i) A loan agreement between the Kingdom of Swaziland and the Bank for a loan of USD
45.9 million, and
ii) A letter of agreement between the Kingdom of Swaziland and the Bank for a grant of
UA1.2 million from the MIC Technical Assistance Fund Grant.
5.2 Conditions associated with Bank’s intervention
Conditions Precedent to the Entry into Force of the ADB Loan Agreement
5.2.1 The entry into force of the Loan Agreement shall be subject to the fulfilment by the Borrower
of the provisions of Section 12.01 of the General Conditions Applicable to the African Development
Bank Loan Agreements and Guarantee Agreements.
Conditions Precedent to the Entry into Force of the MIC Grant Letter of Agreement:
5.2.2 The Letter of Agreement shall enter into force upon signature by the parties thereto.
Conditions Precedent to First Disbursement of the ADB Loan:
5.2.3 The obligation of the Bank to make the first disbursement of the Loan shall be conditional
upon entry into force of the Loan Agreement in accordance with Section 5.2.1 above and the
fulfilment by the Borrower of the following conditions:
i) the opening of a special account denominated in USD in a bank acceptable to the Bank for
receipt of certain proceeds of the Loan (See Section 4.1.8);
ii) appointment of an Engineer whose terms of reference, qualification and experience are
acceptable to the Bank, to serve as the Project Coordinator;
Conditions Precedent to First Disbursement of the MIC Grant:
5.2.4 The obligation of the Bank to make the first disbursement of the MIC Grant shall be
conditional upon:
i) entry into force of the Letter of Agreement in accordance with Section 5.2.2 above:
ii) a United States Dollar special account (the “Special Account”) has been opened in a bank
acceptable to the Bank for receipt of the proceeds of the Grant;
19
Other Conditions of the Loan
5.2.5 The Borrower will provide evidence in form and substance acceptable to the Bank of the
following:
i) prior to the commencement of civil works on any civil works, having fully compensated and/or
resettled all Project Affected Persons affected by such works in accordance with the ARAP.
ii) within nine (9) months of the Date of Signature, provide evidence, in form and substance
satisfactory to the Bank, of having secured the co-financing for Lot 2 of the Project.
iii) within six (6) months of the Date of Signature, provide evidence, in form and substance
satisfactory to the Bank, of the recruitment of a financial management officer for the Project,
with terms of reference, qualifications and experience acceptable to the Bank.
Undertakings
5.2.6 The Borrower hereby undertakes the following:
i) To implement and report to the Bank on a quarterly basis in a form acceptable to the Bank on
the implementation of the ESIA, the ESMP and the ARAP;
ii) Borrower shall report to the Bank on a semi-annual basis on the progress of the
implementation of the Road Sector Reforms components, namely (a) the establishment and
institutionalization of the Roads Authority and the Road Fund; and (b) capacity building
program on the training of MPWT personnel.
6 RECOMMENDATION
6.1.1 The project design is consistent with pillars of Bank and Country development strategies for
poverty reduction by supporting trade-led and socially inclusive growth. The cross-cutting issues have
been considered in the design and close monitoring will be instituted to ensure positive project impact.
The institutional capacity deficiencies have been addressed. The hard infrastructure is complemented
by soft components to ensure that an efficient and sustainable infrastructure system evolves as the
output. The project risks are manageable and practical mitigation measures have been built into the
design.
6.1.2 Management recommends that the Board of Directors approve, subject to the conditions
stipulated in this report:
i) The proposed ADB loan of USD45.9 million (UA30.0million) to the Government of the
Kingdom of Swaziland for the purpose of co-financing the implementation of the Manzini to
Mbadlane Highway Project
ii) The proposed MIC Technical Assistance Fund Grant for UA1.20 million to the Government of
the Kingdom of Swaziland to finance Technical Assistance services for capacity building and
sector reform activities.
I
Appendix I: Swaziland Comparative Socio-Economic Indicators
Indicator Year Swaziland Africa Developing Countries
Developed Countries
Charts
Basic Indicators
Area ('000 Km²) 17.4 30,046.
4 80,976.0 54,658.4
Total Population (millions) 2013 1.2 1,109.0 5,628.5 1,068.7
Urban Population (% of Total) 2013 21.2 40.2 44.8 77.7
Population Density (per Km²) 2013 67.8 35.4 66.6 23.1
GNI per Capita (US $) 2011 3,300.0 1,594.2 2,780.3 39,688.1
Labor Force Participation - Total (%) 2013 34.6 37.4 0.0 0.0
Labor Force Participation - Female (%) 2013 39.4 42.5 39.8 43.3
Gender -Related Development Index Value 2007 0.6 0.5 .. 0.9
Human Develop. Index (Rank among 169 countries) 2012 141.0 .. .. ..
Popul. Living Below $ 1 a Day (% of Population) 2010 40.6 .. 25.0 ..
Demographic Indicators
Population Growth Rate - Total (%) 2013 1.5 2.5 1.4 0.7
Population Growth Rate - Urban (%) 2013 1.3 3.4 2.4 1.0
Population < 15 years (%) 2013 37.8 40.9 29.2 17.7
Population >= 65 years (%) 2013 3.5 3.5 6.0 15.3
Dependency Ratio (%) 2013 68.5 77.3 52.8 ..
Sex Ratio (per 100 female) 2013 97.4 100.0 934.9 948.3
Female Population 15-49 years (% of total population) 2013 25.9 24.0 53.3 47.2
Life Expectancy at Birth - Total (years) 2013 49.0 59.2 65.7 79.8
Life Expectancy at Birth - Female (years) 2013 48.3 60.3 68.9 82.7
Crude Birth Rate (per 1,000) 2013 29.9 35.3 21.5 12.0
Crude Death Rate (per 1,000) 2013 14.3 10.4 8.2 8.3
Infant Mortality Rate (per 1,000) 2013 64.0 61.9 53.1 5.8
Child Mortality Rate (per 1,000) 2013 91.1 97.4 51.4 6.3
Total Fertility Rate (per woman) 2013 3.3 4.6 2.7 1.8
Maternal Mortality Rate (per 100,000) 2010 320.0 415.3 440.0 10.0
Women Using Contraception (%) 2013 64.1 31.7 61.0 75.0
Health & Nutrition Indicators
Physicians (per 100,000 people) 2004 16.0 52.6 77.0 287.0
Nurses (per 100,000 people)* 2004 320.4 .. 98.0 782.0
Births attended by Trained Health Personnel (%) 2010 82.0 .. 39.0 99.3
Access to Safe Water (% of Population) 2011 72.2 67.8 84.0 99.6
Access to Health Services (% of Population) 2000 55.0 65.2 80.0 100.0
Access to Sanitation (% of Population) 2011 57.0 40.5 54.6 99.8
Percent. of Adults (aged 15-49) Living with HIV/AIDS 2011 26.0 4.7 161.9 14.1
Incidence of Tuberculosis (per 100,000) 2011 1,317.0 235.8 .. ..
Child Immunization Against Tuberculosis (%) 2011 98.0 81.2 89.0 99.0
Child Immunization Against Measles (%) 2011 98.0 76.3 76.0 92.6
Underweight Children (% of children under 5 years) 2008 7.3 .. 27.0 0.1
Daily Calorie Supply per Capita 2009 2,249.0 2,564.7 2,675.2 3,284.7
Public Expenditure on Health (as % of GDP) 2011 5.6 5.9 4.0 6.9
Education Indicators
Gross Enrolment Ratio (%) .. .. .. ..
Primary School - Total 2011 115.1 101.8 106.0 101.5
Primary School - Female 2011 108.9 97.8 104.6 101.2
Secondary School - Total 2011 60.0 45.4 62.3 100.3
Secondary School - Female 2011 59.1 41.9 60.7 100.0
Primary School Female Teaching Staff (% of Total) 2011 70.8 43.7 .. ..
Adult Literacy Rate - Total (%) 2011 87.8 .. 19.0 ..
Adult Literacy Rate - Male (%) 2011 87.3 .. .. ..
Adult Literacy Rate - Female (%) 2011 88.4 .. .. ..
Percentage of GDP Spent on Education 2011 8.2 5.3 .. 5.4
Environmental Indicators
Land Use (Arable Land as % of Total Land Area) 2011 10.2 8.4 9.9 11.6
Annual Rate of Deforestation (%) 2000 -1.2 0.6 0.4 -0.2
Annual Rate of Reforestation (%) .. .. .. ..
Per Capita CO2 Emissions (metric tons) 2011 0.9 1.1 .. ..
Sources : ADB Statistics Department Databases; World Bank: World Development Indicators Last update: March 2014 UNAIDS; UNSD; WHO, UNICEF, WRI, UNDP; Country Reports. Note n.a.: Not Applicable : Data Not Available.
II
Appendix II Table of AfDB’s portfolio in the Country
Division Long name Sector Name Amount App. Amount
Dis. Dis. Ratio
Windo
w
OSGE2 TA FOR PUBLIC FINC
MGMT REFORMS Multi-Sector 478,452.0 163,749.5 34.2 [ ADB ]
ESTA2 SCB - II Multi-Sector 490,600.0 0.0 0.0 [ ADB ]
Total Multi-Sector 969,052.0 163,749.5
III
Appendix III Related Projects Financed by the Bank and Other Donors, 2014
Project Name Donor Type of
Works/Sector Amount
(million)
Fiscal Adjustment Roadmap (FAR)
AfDB, EU, IMF,
UNDP and the
World Bank
Governance and
financial
Management
UA 10.22
Lower Usuthu Smallholder Irrigation Project (LUSIP I) AfDB
Agriculture
Lower Usuthu Irrigation Project (LUSIP) EU Agriculture &
Infrastructure EUR 11
National Water and sanitation project (Lumbobo and
Shiselweni regions)
EU Water and
Sanitation EUR 19
Support to Education and Training (SET), Education for
All (EFA), Human Resources Development
EU Education EUR 23
Swaziland Health, HIV/AIDS and TB Project
EU
Health
EUR 14.5
World Bank US$20
UN (UNFPA,
UNAIDS
Maternal Child Health Care World Bank Health US$ 2.57
PEPFAR United States Health US$ 35.6
Mbadlane to Sikhuphe International Airport (D42) road
construction
BADEA
Kuwait Fund Transport
Swaziland/China Bilateral cooperation agreement. Republic of China
(Taiwan) Multi-sector: US$ 180m
Improvement of Secondary School Education Japan Education ¥1, 143
billion
IV
Appendix IV: Details of Project Cost
Table 1- Project Cost Breakdown by Component and Source (UA million)
PROJECT COMPONENT FUNDING SOURCE
AfDB Co-
financier Grant
GOKS
(lot 1)
GOKS
(lot 2) TOTAL
Civil works
Civil Works 23.06 31.29 - 9.88 1.65 65.88
Weighbridge 0.35 0.00 - 0.35 0.00 0.70
Feeder Road 0.55 0.00 - 0.03 0.58
Subtotal 23.96 31.29 - 10.26 1.65 67.16
Consultancy Services
Design Reviews & Construction
Supervision 1.23 0.49
- 0.31 1.05 3.08
Project Management Support 0.17 - - - - 0.17
Project Financial Audits Services 0.03 - - - - 0.03
Project Technical Audits Services 0.03 - - - - 0.03
Subtotal 1.46 0.49 - 0.31 1.05 3.31
Technical Assistance
Training Programme - - 0.14 - - 0.14
Establishment of Roads Authority/Road
Fund - - 0.88
- - 0.88
Subtotal 0.00 0.00 1.02 0.00 0.00 1.02
Complementary Components
- -
-
Implementation of ESMP 0.17 - -
- 0.17
Resettlement & Compensation - - - 1.91 - 1.91
Subtotal 0.17 0.00
1.91 2.08
BASE COST 25.59 31.78 1.02 11.52 3.66 73.57
contingencies(physical) 2.56 3.17 0.10 1.15 0.37 7.35
Subtotal 28.15 34.95 1.12 12.67 4.03 80.92
contingencies (price) 1.85 2.30 0.08 0.92 0.33 5.48
TOTAL COST 30.00 37.25 1.20 13.59 4.36 86.40
Table 2 – Total Cost Estimate by Component and Lot
Components ADB & GOKS GOKS& Co-Financiers
TOTAL LOT 1 (0km - km13) LOT 2 (km13-km30)
USD UA m USD UA m USD UA m
Civil Works 50.40 32.94 50.40 32.94 100.80 65.88
Consultancy Services 2.70 1.77 2.36 1.54 5.06 3.31
Implementation of ESMP 0.27 0.17 0.00 0.00 0.27 0.17
Resettlement &
Compensation 1.47 0.96 1.46 0.95 2.93 1.91
Weighbridge 1.06 0.70 0.00 0.00 1.06 0.70
Feeder Road 0.89 0.58 0.00 0.00 0.89 0.58
Technical Assistance
Services 1.56 1.02 0.00 0.00 1.56 1.02
Base Cost 58.35 38.14 54.22 35.43 112.57 73.57
Physical 5.84 3.81 5.42 3.54 11.26 7.35
Subtotal 64.19 41.95 59.64 38.97 123.83 80.92
Price contingency 4.35 2.84 4.02 2.64 8.37 5.48
TOTAL 68.54 44.79 63.66 41.61 132.20 86.40
V
Appendix V: Project Map
1994, 1999, Two
International road
project (MR4)
1989, Main Roads
Rehabilitation (MR24) 40km.
1987, Mbabane-
Mbalambanyasti Road
(MR19)
2003: Mbabane Bypass (MR3)
1992: Mbabane-Matsapha (MR3)
1989 Main Roads
Rehabilitation (MR8), 66km
1981, Lonhlupheko-
Lomahasha (MR3) 50km.
1978, 1984: Mhokodo River -
Mahamba. Road (MR9)
Project Map (including past Bank funded project)
PROJECT
Urban City
Agriculture
centres
(Sugar)
Industrial
Centre