AFRICAN DEVELOPMENT FUND

PROJECT : PHASE II DAR ES SALAAM-ISAKA-KIGALI/KEZA- MUSONGATI RAILWAY PROJECT STUDY

COUNTRY: TANZANIA - RWANDA and BURUNDI

Date: September 2009

Project Team

Team Leader:

Members

A. MOHAMED, Transport Economist, OINF.2

E. MASENGO, Transport Engineer, OINF.2

N. SENOU, Transport Economist , OINF.2

Division Manager: J. RWAMABUGA, OINF.2 Sector Director : G. MBESHERUBUSA, OINF Regional Director D. GAYE, OREA/OREB

Peer Review

A. OUMAROU, Transport Engineer, OINF.2 B. TRAORE, Transport Engineer, OINF.1 P. RUGUMIRE., Transport Engineer, OINF.1 N. KULEMEKA, Socio-economist, OINF.2 M. FARAOUN, Financial Analyst, OPSM A. BABALOLA, Transport Engineer, OPSM H. IMAN, Financial Analyst, OPSM M. SALAWOU, Financial Analyst, ONRI M. AJIJO, Transport Economist, ONRI

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AFRICAN DEVELOPMENT FUND TRA-TUNIS

B.P. 323 TUNIS-BELVEDERE 1002 Tel.: (216) 71 333 511 Fax: (216) 71 352 933

PROJECT INFORMATION SHEET

Date: 31 July 2009

The information given hereunder is intended to provide guidance to prospective suppliers, contractors, consultants and all persons interested in the procurement of goods and services for projects approved by the Boards of Directors of the Bank Group. More detailed information can be obtained from the executing agencies of the Borrower and the Donees. 1. COUNTRY AND PROJECT TITLE : Multinational: Tanzania-Rwanda-Burundi

Phase II Dar es Salaam-Isaka-Kigali/Keza-Musongati Railway Project Study

2. PROJECT LOCATION : Tanzania, Rwanda and Burundi

3. - BORROWER : United Republic of Tanzania

- DONEES : Republic of Rwanda and Republic of Burundi

4. EXECUTING AGENCY : Ministry of Infrastructure of Rwanda

Boulevard de l’Umuganda

B.P. 24 Kigali, Rwanda 5. STUDY DESCRIPTION : The study comprises: (A) Study Services; (B) Technical

Assistance Services; (C) Financial Audit Services; and (D) Study Coordination and Management.

6. SOURCES OF FINANCING

• ADF : 95.24%

• Government of Tanzania : 1.58%

• Government of Rwanda : 1.60%

• Government of Burundi : 1.58%

7. LOAN AND GRANT APPROVAL DATE : November 2009

8. PROBABLE DATE OF STUDY START-UP/DURATION:

- START-UP : September 2010

- DURATION : 15 months

9. PROCUREMENT OF WORKS AND SERVICES:

Services will be procured in accordance with ADF rules and procedures as follows:

- Study : Consultation on the basis of a short list

- Technical Assistance : Consultation on the basis of a short list

- Financial Audit : Consultation on the basis of a short list

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CURRENCY EQUIVALENTS, ACRONYMS AND ABBREVIATIONS

Currency Equivalents (July 2009)

UA 1 = USD 1.55223 UA 1 = RWF 881.954 (Rwanda Franc)

UA 1 = TZS 2 047.20 (Tanzanian Shillings) UA 1 = BIF 1 865.40 (Burundi Franc)

Fiscal Year Tanzania: 1 July– 30 June Rwanda: 1 July – 30 June Burundi: 1 January – 31 December

Weights and Measures Metric System

Acronyms and Abbreviations

ADF : African Development Fund AREMA : American Railway Engineering and Maintenance-of-Way Association ASTM : American Society for Testing and Material BIF : Burundi Franc BNSF : Burlington Northern Santa Fe Railway BS : British Standards DBI : DB-International DRC : Democratic Republic of Congo DSM : Dar es Salaam EAC : East African Community ESIS : Environmental and Social Impact Study ICD : Inland Clearing Depot JTMC : Joint Technical Monitoring Committee MID : Ministry of Infrastructure Development (Tanzania) MININFRA : Ministry of Infrastructure (Rwanda) MTPE : Ministry of Public Works and Infrastructure (Burundi) MTPT : Ministry of Transport, Post and Telecommunications (Burundi) NPV : Net Present Value PCU : Project Coordination Unit PPP : Public Private Partnership PRSP : Poverty Reduction Strategy Paper RAHACO : Reli Assets Holding Company RWF : Rwanda Franc SUMATRA Surface and Marine Transportation Regulatory Agency TANROADS : Tanzanian Roads Agency TAZARA : Tanzania and Zambia Railways TPA : Tanzania Ports Authority TRL : Tanzania Railways Limited TRC : Tanzania Railway Corporation TZS : Tanzanian Shillings UIC : International Union of Railways UA : Unit of Account USD : United States Dollar

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MULTINATIONAL: TANZANIA-BURUNDI-RWANDA PHASE II DAR ES SALAAM-ISAKA-KIGALI/KEZA-MUSONGATI RAILWAY PROJECT STUDY

RESULTS-BASED LOGICAL FRAMEWORK

Inception Date: August 2009 Completion Date: March 2012 Design Team: A. Mohamed, N. Senou, E. Masengo, OINF.2

HIERARCHY OF OBJECTIVES EXPECTED OUTPUTS SCOPE (TARGET POPULATION)

PERFORMANCE INDICATORS

INDICATIVE TARGETS AND TIME FRAMES ASSUMPTIONS/RISKS

Study goal 1. Contribute to strengthening railway

infrastructure of Transport Corridors of East Africa with a view to ensuring regional integration and developing areas with mining , industrial and agricultural potential

Impacts

1. Existing railway line rehabilitated and connections towards Rwanda and Burundi constructed:

2. Diversified trade channels and increased inter-regional trade

- Tanzania, Rwanda and Burundi (about 59.4 million inhabitants), and - EAC

Impact indicators Railway investment programme between the three countries implemented Source: statistics from the three countries Method: statistics prepared by the three countries and the EAC

Progress anticipated in the long term 1. 970 km of existing Dar es Salaam-

Isaka railway line studied by 2012 and rehabilitated in 2018

2. 700 km of new Isaka-Kigali/Keza-Musongati railway lines studied by 2012 and constructed in 2018 Source: statistics from the three countries

Method: statistics prepared by the three countries and the EAC

Risk statement Failure to pursue regional integration policy and deterioration of stability in the EAC Region Mitigative measure Commitment of Governments of the EAC Region

Study objective 1. Provide an optimal engineering design

of the Dar es Salaam-Isaka-Kigali/Keza-Musongati railway line on the Central Transport Corridor

2. Recommend Public Private Partnership (PPP) models for financing the project and managing railway infrastructure

Effects

1. Dar es Salaam-Isaka-Kigali/Keza-Musongati rail link study carried out and decision-making tools put at the disposal of governments for financing the project and managing railway infrastructure

2. Interest shown by private operators

Beneficiaries - Shinyanga and Kagera Regions of Tanzania, Burundi and Rwanda (about 22.7 million inhabitants)

Impact indicators Mobilization of financing for

works on the railway line based on the study

Source: study reports and

Bank supervision reports Method: statistics prepared by the three countries

Progress anticipated in the medium term

1. In 2012: Round table of development partners and private sector held

2. Interest shown by potential project co-financiers

Sources: Ministry of Infrastructure Development of Tanzania, MININFRA of Rwanda and Ministry of Transport, Posts and Telecommunications of Burundi Method: statistics prepared by the three countries

Risk statement 1. Non-adherence to deadlines for the

conduct of study and validation of reports

2. Lack of interest by the private sector and donors in financing the project

Mitigative measures 1. Adequate and qualified team of

consultants 2. Regular consultation of potential

investors during the study

Activities 1 Preparation of requests for

proposals (RFPs) and procurement of consultancy services (study, technical assistance and financial audit)

2 Provision and monitoring of services (study, technical assistance and financial audit)

3 Organization of seminars, a workshop and a round table, and validation of study reports

Outputs

1. RFPs prepared and approved within the set deadline, and contracts awarded and signed

2. Study, technical assistance and financial audit reports produced on time and validated by the three countries

3. Seminars, workshop and round table of development partners and private sector held

Beneficiaries MID (Tanzania), MININFRA (Rwanda) and MTPT (Burundi), EAC, donors and private sector

Output indicators 1. Contracts for study,

technical assistance and financial audit

2. Study reports and results of seminars, workshop and round table

Sources: reports of the consulting firm, technical assistance reports and Bank supervision reports

Target value of indicator 1. Contracts signed 2. Reports produced on time and

validated by the three countries and the Bank, seminars, workshop and round table held

Risk statement 1. Delays in the procurement of

consultancy services 2. Lack of coordination and

inefficient monitoring of study by the countries

Mitigative measures

1. Realistic contract award plan 2. Efficient study coordination and

monitoring team

RESOURCES (UAM)

SOURCE AMOUNT (UAM) %

Studies 4.26 ADF 5.00 95.24 Technical Assistance 0.46 TANZANIA 0.083 1.58 Financial audit 0.04 RWANDA 0.084 1.60 Study coordination and monitoring

0.49 BURUNDI 0.083 1.58

TOTAL 5.25 TOTAL 5.25 100

TABLE OF CONTENTS ......................................... PAGE

1. INTRODUCTION ........................................................................................................................ 1

2. PROPOSED STUDY .................................................................................................................... 2

2.1 Study Design and Formulation .............................................................................................. 2

2.2 Study Objective ...................................................................................................................... 4

2.3 Study Description .................................................................................................................. 5

2.4 Estimated Study Cost ............................................................................................................ 6

2.5 Sources of Financing ............................................................................................................. 6

2.6 Expenditure Schedule and Disbursement Arrangements ...................................................... 7

3. STUDY ORGANIZATION AND MANAGEMENT ................................................................ 8

3.1 Executing Agency .................................................................................................................. 8

3.2 Study Management ................................................................................................................ 8

3.3 Implementation Schedule ....................................................................................................... 9

3.4 Reporting ............................................................................................................................. 10

4. PROCUREMENT OF SERVICES ........................................................................................... 11

5. STUDY JUSTIFICATION ....................................................................................................... 11

6. OBLIGATIONS OF THE CONSULTANTS AND THE GOVERNMENTS ....................... 12

6.1 Obligations of the Consultants ............................................................................................ 12

6.2 Obligations of the Governments .......................................................................................... 13

7. CONCLUSIONS AND RECOMMENDATIONS ................................................................... 13

7.1 Conclusions ......................................................................................................................... 13

7.2 Recommendations ................................................................................................................ 14

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1. INTRODUCTION 1.1 Tanzania, Rwanda and Burundi maintain fruitful ties, especially in transport. Being landlocked countries, Rwanda and Burundi use the Central Transport Corridor to access the sea through the Dar es Salaam Port in Tanzania. The Central Transport Corridor (about 1 400 km long from Rwanda and about 1 500 km from Burundi) offers the possibility of reaching the Dar es Salaam Port by road through a road-rail or lake-rail multimodal combination. Rwanda and Burundi also use the North Transport Corridor (about 1 800 km long from Rwanda and about 2 100 km from Burundi) which links them to the Mombasa Port in Kenya via Uganda. 1.2 In 2008, Tanzania had a population of nearly 41.5 million, about 19.9% of which live below the poverty line. Poverty affects almost 56.8% of Rwanda’s population and approximately 70% of Burundi’s estimated in 2008 at 8.9 million and 10 million, respectively. To combat poverty, each of the three countries has adopted a poverty reduction strategy paper focused on the implementation of balanced macro-economic policies and sectoral reforms, in consultation with the donor community and civil society. The set objectives include ensuring the security of the population, strengthening economic growth by boosting socio-economic activities and improving access both within the countries and to the outside world by developing transport infrastructure. 1.3 To achieve such internal and external access, the three countries have developed transport sector policies aimed at improving the efficiency of the transport system by diversifying modes of transport. To implement these policies, they have prepared programmes to improve transport infrastructure, particularly railway infrastructure, in order to provide transport services to industrial and agricultural production areas as well as areas with high mining potential. The authorities of all three countries therefore expressed in 1998 and reaffirmed in 2003 the need for a new Isaka-Kigali/Keza-Musongati railway line, which is an extension of the current Dar es Salaam-Isaka line. The study of the project to rehabilitate the current Dar es Salaam-Isaka railway line and build a new line between Isaka in Tanzania, Kigali in Rwanda and Musongati in Burundi is among the priorities of these programmes. 1.4 It is worth noting that the rehabilitation of the current railway line and construction of the new one are also in accordance with the priority objectives of regional organizations such as the East African Community (EAC), Economic Community of Great Lakes Countries (CEPGL) and Common Market for Eastern and Southern Africa (COMESA) which prioritize the development of inter-state transportation infrastructure, notably railways. At the regional level, EAC countries have recognized the need to streamline the development of railway transport and harmonize transport operations along the main transport corridors. To that end, a Railway Master Plan for EAC countries is on the verge of adoption. The plan defines the railway sector development strategy that can meet the demand for infrastructure and services needed to stimulate trade and growth, and promote regional integration. 1.5 The three countries planned to seek financing to implement the railway project study, based on such common desire to strengthen their socio-economic cooperation and regional integration. This involves exploring the possibility of financing the rehabilitation of the existing Dar es Salaam - Isaka railway line and building the new Isaka–Kigali/Keza-Musongati railway line, on the one hand, and managing the railway infrastructure, on the other hand. The infrastructure is expected to link Rwanda and Burundi to Dar es Salaam Port and provide transport services to the Eastern Region of the Democratic Republic of Congo (DRC) and Uganda’s South-West Region.

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1.6 As part of implementing the regional integration policy and in a bid to support economic development, in particular mining, industrial and agricultural development, Phase I of the Isaka-Kigali/Keza-Musongati railway project study was financed with an ADF grant, an IPPF-NEPAD grant and a Development Bank of South Africa (DBSA) grant. In particular, Phase I study analyzed the different rail alignments with the associated physical and technical constraints, project environmental and social impact, the economic and financial feasibility and the existing institutional framework. The Phase I study results were presented to the round table of development partners and the private sector held in Tunis in March 2009. Participants in that international forum, notably mining companies, railway operators, investment and development banks, showed interest in the project and encouraged the three countries to pursue the study. Following the conclusions of the round table, and to ensure the implementation of the investment programme and capitalize on the interest shown in the project, the three countries requested the Bank to finance Phase II of the study. 1.7 The project objectives are in keeping with NEPAD’s in the transport sector. They are also in line with: (i) the Country Strategy Papers (CSPs) of Tanzania, Rwanda and Burundi and (ii) ADF-XI operational priorities which place a high premium on infrastructure, governance and regional integration. 1.8 This loan and grant proposal is a follow-up to a joint request by the three countries to the Bank to finance Phase II of the project study. This Phase provides for: (i) an engineering, economic, financial, institutional, environmental and social study; and (ii) recommendation of models for financing the project and managing railway infrastructure. It is based on the results of the preparation mission (see the Terms of Reference attached) conducted in June-July 2009 and on data collected in the three countries. 2. PROPOSED STUDY 2.1 Study Design and Formulation 2.1.1 Phase II of the project study will cover the existing Dar es Salaam-Isaka railway link and its Isaka-Kigali/Keza-Musongati extension. Phase II is part of the implementation by the three countries of the EAC priority investment programme which attaches special importance to multinational poverty reduction projects, through regional infrastructure development, and to cooperation among member countries. The preparation of the Terms of Reference (TORs) under Phase II of the study drew lessons from Phase I (findings of the study and conclusions of the round table) in terms of design, cost and approach. In that regard, Phase II will focus more on deepening the institutional framework and structuring the project in the form of Public Private Partnership (PPP). The preparation of the TORs also made use of data collected during the preparation mission and discussions in the three countries, notably with representatives of the three governments, rail transport specialists in Tanzania, rail transport users (traders, industrialists, etc.) and private sector operators, including mining companies active in the three countries. 2.1.2 Phase II of the study will also deepen: (i) the analysis of the project’s socio-economic benefits, notably for the most vulnerable population segments (women, children, rural dwellers, etc.), in terms of business development and enhancement of economic potential (particularly in mining, industry and agriculture) as well as facilitating the low-cost marketing of goods and movement of people; (ii) the comparative analysis of modes of transport (road, rail and rail-road and lake-rail combination) on the corridors to Rwanda and Burundi; (iii) the environmental and social impact of the future railway project (impact of

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climate change on the project, spread of sexually-transmitted infections, including HIV/AIDS and the impact of rail transport on public security) and appropriate measures for mitigating the negative impacts during and after project implementation; and (iv) private sector participation in financing the project and managing railway infrastructure. 2.1.3 Phase II of the study will provide the Governments of Tanzania, Rwanda and Burundi with data and decision-making tools to facilitate the mobilization of financing, project implementation and railway infrastructure management. It will cover: (A) the existing Dar es Salaam-Isaka railway line (970 km); and (B) a new railway line broken down as follows: (i) 494 km-long Isaka-Kigali Section (of which 355 km in Tanzania and 139 km in Rwanda); and (ii) 197 km-long Keza-Musongati Section (including 139 km in Burundi and 58 km in Tanzania). It is worth noting that four mining sites will be connected to the Keza-Musongati Section by 50 km-long branch lines. The Project Impact Area (PIA) covers Rwanda, Burundi and the North-West of Tanzania (Shinyanga and Kagera Regions). Its population is estimated at about 22.7 million, 53% of which live below the poverty line. Its economy is driven by agriculture which employs about 90% of the population. The PIA is also rich in mineral ore. The subsequent implementation of the project will help to develop such mineral resources (the tapping of which is hampered by the bad state and/or absence of appropriate transport infrastructure) and contribute to boosting agricultural activities. 2.1.4 In designing the Dar es Salaam-Isaka-Kigali/Keza-Musongati railway line, the proposed study will take into consideration internationally recognized engineering standards. In particular, it will conduct a cost-benefit analysis of engineering standards for the following three types of track gauge: (i) the current meter gauge of 1 000 mm with a gross allowable load of 25 tons/axle; (ii) the Cape Gauge of 1 067 mm with a gross allowable load of 25 tons/axle; (iii) the standard gauge of 1 435 mm, i.e. UIC standard (European standards) with a gross allowable load of 25 tons/axle, or the AREMA gauge (North American standards) with a gross allowable load of 32 tons/axle. The Cape Gauge is the one used on the railway line linking Tanzania to Zambia and equally used by southern African countries. Aid Coordination 2.1.5 The three Governments have undertaken to improve the performance of the transport sector within the framework of their transport sector policies. Aid provided by donors is coordinated in the context of these policies by the ministries in charge of finance. In addition, consultation meetings held with donors, notably the World Bank and the European Union, during the study terms of reference preparation mission helped to exchange views on the constraints, reforms and ongoing/future operations in the transport sector, as well as ensure their consistency. Discussions were also held with donors, notably the World Bank and the European Union, on the design of Phase II of the study which is the subject of this memorandum. Although these donors will not finance the study, they will support its implementation. Furthermore, they will participate in project financing. The discussions confirmed the Bank’s approach which is to focus Phase II of the study on PPP structuring in order to enhance the project’s appeal to potential investors. 2.1.6 At the end of the study, a round table of development partners and potential private investors will be organized to arouse interest in financing the project. The cost of the round table is included in the cost of the study. Dialogue and exchange of views with donors represented in the three countries will also be held during Bank supervision missions.

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Participatory Approach 2.1.7 In line with the participatory approach, the scope and methodology of the study were discussed during the terms of reference preparation mission. Discussions were held with transport specialists (especially rail transport specialists), governments of the three countries, private sector operators (particularly mining companies operating in the three countries) and the population in the PIA. The proposed study will also follow the participatory approach (public consultation) in accordance with the relevant Bank guidelines. To that end, nine seminars and/or workshops (three per country) will be organized for various socio-professional groups (population, private operators, NGOs, donors, community organizations, etc.) and ministerial departments of the three countries. Public consultations in all areas covered by the study will be held with various stakeholders and beneficiaries, including public and private sector vocational associations, local authorities and development committees, to obtain points of view with regard to the construction of the proposed railway line. The observations and recommendations made at the end of the seminars and workshops will be reflected in the final study report. Private Sector Participation 2.1.8 The three Governments have liberalized transport sector activities by involving the private sector. However, they continue to assume responsibility for mobilizing investment resources. Hence, the Tanzanian Government leased the technical and commercial operation of the railway network of the former Tanzania Railways Cooperation (TRC) to a private operator, Tanzania Railway Limited (TRL). However, the rail assets remain the property of the Tanzanian State through Reli Assets Holding Company (RAHCO) which replaced Tanzania Railways Cooperation. RAHCO manages the leased rail assets and retains responsibility for implementing heavy infrastructure renewal projects. The Government of Tanzania also established a regulator, Surface and Marine Transport Agency (SUMATRA), responsible for issuing railway operating licenses, ensuring railway safety and approving engineering and maintenance standards. The consultant will examine the operation of the railway concession agreement in force between TRL and the Government of Tanzania as well as other concession agreements in the region, and draw lessons for the proposed study. Furthermore, as part of the national transport policy which prioritizes private sector involvement in transport activities, the three Governments intend to involve the private sector in financing the project and managing future railway infrastructure in the form of Public Private Partnership (PPP). 2.2 Study Objectives 2.2.1 The overall study objective is to contribute to strengthening railway infrastructure of East Africa Transport Corridors to meet the needs of regional integration and development of areas with mining, industrial and agricultural potential. 2.2.2 The specific objective of Phase II of the study is to: (i) provide an optimal engineering design of Dar es Salaam-Isaka/Keza-Musongati railway line on the Central Transport Corridor; and (ii) recommend Public Private Partnership (PPP) models for financing the project and managing railway infrastructure.

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2.3 Study Description 2.3.1 Phase II of the study concerns the rehabilitation of the existing Dar es Salaam-Isaka railway line and construction of the new Isaka-Kigali/Keza-Musongati railway line. Technically, three gauge options will be analyzed, namely: (a) construction of the new railway line and rehabilitation of the current railway line keeping the current meter gauge standard; (b) construction of the new railway line and rehabilitation of the existing railway line keeping the current meter gauge standard, with the possibility of subsequently converting it into Cape Gauge for harmonization with the railway networks of southern Africa; and (c) construction of the new railway line and rehabilitation of the existing railway line with UIC (European standards) or AREMA (North American standards) standard gauge. Study Components 2.3.2 Study services: these will cover engineering, economic, financial, institutional, environmental and social impact aspects of the project, and will involve: (i) reviewing and deepening Phase I Study reports, the BNSF report on the feasibility study to rehabilitate the existing railway line, the Master Plan of Dar es Salaam Port as well as any other document deemed relevant for Phase II of the study; (ii) estimating/fine-tuning the cost of rehabilitating the existing railway line and building the new railway line using different track gauge standards; and (iii) conducting a cost-benefit analysis of the options proposed and submitting to the three Governments detailed recommendations on the optimal option. This component includes the design of a Public Private Partnership (PPP) model and will entail identification/diagnosis of existing and potential problems relating to the legal, regulatory, institutional and financial framework which the three Governments would face. The Governments must first find appropriate solutions to such issues in order to facilitate and promote the implementation of the future railway project. The solutions will include: (i) renegotiating the existing concession agreement between the Government of Tanzania and Tanzania Railway Limited; (ii) streamlining and harmonizing customs operations through the new Customs Union to shorten timelines/eliminate delays and ensure traffic fluidity; (iii) preparing a draft agreement for future railway concession; (iv) preparing a schedule/timeframe for all activities needed for project implementation and sustainability; and (v) preparing a transport and trade facilitation programme. 2.3.3 Technical assistance services: plans have been made to mount Technical Assistance (TA) for the study at the Study Coordination Unit (SCU). This will comprise technical support to the SCU in monitoring study activities and reviewing various reports prepared as part of the study (draft/final inception and progress reports). In that regard, TA will participate in meetings of the Study Technical Monitoring Committee (STMC) to assess and reach a decision on the technical quality of reports and their acceptability, or decide on any other technical issues concerning the study. 2.3.4 Financial audit services: the study accounts will be audited annually. The audit firm must ascertain that the study accounts are kept in accordance with good accounting practices.

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2.3.5 Study coordination and monitoring: the Study Coordination Unit and the Study Technical Monitoring Committee set up since 2004 under Phase I will coordinate and monitor the study. This task includes administration, management and routine monitoring of the technical, administrative and financial implementation of study activities. 2.4 Study Estimated Cost The estimated cost of Phase II of the study, net of taxes and customs duty, will amount to USD 8.15 million or UA 5.25 million, of which UA 4.36 million (83.06% of the study cost) payable in foreign exchange and UA 0.89 million (16.94% of the study cost) payable in local currency. This cost includes 5% and 4.06% provision for physical contingencies and price escalation, respectively. It was estimated on the basis of the unit prices of recent studies carried out in the three countries and others approved lately by the ADF. The estimated study cost, details of which are given as Annex 3, is summarized in

Table 2.1 below. Study Estimated Cost (in USD Million and UA Million)

Component USD (Million) UA (Million) Foreign Exchange

Local Currency

Total Foreign Exchange

Local Currency

Total

A – Study and technical assistance services

5.87 0.85 6.72 3.78 0.54 4.32

A.1 Study 5.31 0.76 6.07 3.42 0.48 3.90A.2 Technical assistance to SCU 0.56 0.09 0.65 0.36 0.06 0.42 B – Financial audit services 0.05 - 0.05 0.03 - 0.03 C – Study coordination and monitoring 0.28 0.41 0.69 0.18 0,27 0.45 Base cost 6.20 1.26 7.46 3.99 0.81 4.80 Physical contingencies (5%) 0.31 0.06 0.37 0.20 0.04 0.24 Price escalation (4.06%) 0.26 0.05 0.32 0.17 0.04 0.21 Total cost (net of taxes and customs duty)

6.77 1.37 8.15 4.36 0.89 5.25

2.5 Sources of Financing 2.5.1 The study will be financed by the ADF and the Governments of Tanzania, Rwanda and Burundi. ADF financing will not exceed UA 5 million (including UA 3.3 million from multinational resources and UA 1.7 million from country allocations). The UA 3.3 million multinational allocation will be shared equitably between the three countries. This financing represents 95.24% of the total cost and will cover 100% of the foreign exchange cost (UA 4.36 million) and 72% (UA 0.64 million) of the local currency cost. ADF financing will cover: (i) the entire expenditure on the study, technical assistance to the SCU and financial audit services; and (ii) part of the expenditure on study coordination and monitoring activities. It is worth noting that Tanzania is only eligible for the ADF loan, and Rwanda and Burundi for the ADF grant. 2.5.2 The three Governments will contribute UA 0.25 million to study financing, representing 4.76% of the total cost or 28% of the local currency cost. The contribution of the Governments will cover part of the expenditure on study coordination and monitoring. It will be shared as follows: (a) UA 0.083 million for Tanzania; (b) UA 0.084 million for Rwanda; and (c) UA 0.083 million for Burundi. This distribution is in keeping with ADF-XI provisions for multinational operations. Table 2.2 below shows the financing plan. The detailed financing plan is given as Annex 4.

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Table 2.2

Financing Plan (in UA Million) Source Foreign

ExchangeLocal Currency Total % of Total Cost

ADF 4.36 0.64 5.00 95.24% Government of Tanzania - 0.083 0.083 1.58% Government of Rwanda - 0.084 0.084 1.60% Government of Burundi - 0.083 0.083 1.58% Total cost (net of taxes and customs duty) 4.36 0.89 5.25

100%

2.5.3 The breakdown of ADF financing between regional allocation and country allocations is shown in Table 2.3 below.

Table 2.3 Breakdown of ADF Financing (in UA Million)

Source Total % of Total Cost ADF (Regional) 3.30 66.0% ADF-Country/Tanzania 0.56 11.2% ADF-Country/Rwanda 0.57 11.4% ADF-Country/Burundi 0.57 11.4% Total ADF 5.00 100%

2.6 Expenditure Schedule and Disbursement Arrangements Expenditure Schedule 2.6.1 The expenditure schedule is shown in Table 2.4 below.

Table 2.4 Expenditure Schedule by Expenditure Category (in UA Million)

Expenditure Category 2010 2011 2012 Total Studies 1.28 2.13 0.85 4.26 Technical assistance to SCU 0.09 0.28 0.09 0.46 SCU and STMC operating cost - 0.02 0.02 0.04 Financial audit 0.15 0.25 0.09 0.49 Total (net of taxes and customs duty) 1.52 2.68 1.05 5.25

Disbursement Arrangements 2.6.2 ADF disbursement: the direct payment method will be used to fund study, technical assistance and financial audit services, in accordance with the expenditure schedule. Disbursement requests will be prepared by Rwanda, lead country and study coordinator, and signed by the appropriate authority in that country. A special foreign exchange account bearing the study name will be opened in the National Bank of Rwanda, into which ADF resources intended for study coordination and monitoring expenses will be deposited. Evidence of opening the special foreign exchange account will be a loan and grant condition (Condition 7.2.3 Bi).

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2.6.3 Counterpart contribution: each of the three countries will open a special local currency account bearing the study name in a commercial bank acceptable to the ADF, into which the counterpart contribution will be deposited. Evidence of opening these three special local currency accounts will be a loan and grant condition (Condition 7.2.2 Bi, 7.2.3 Bii and 7.2.4 Bi). These accounts will be replenished in accordance with the expenditure schedule. 3. STUDY ORGANIZATION AND MANAGEMENT 3.1 Executing Agency 3.1.1 The study will be implemented under the oversight of ministries in charge of transport in the three countries, namely Rwanda’s Ministry of Infrastructure (MININFRA), Tanzania’s Ministry of Infrastructure Development (MID) and Burundi’s Ministry of Transport, Post and Telecommunications (MTPT). However, for reasons of efficiency in steering the study, the three Governments have agreed that Rwanda will coordinate the study and that MININFRA will be the study executing agency. 3.1.2 For routine management and monitoring of study activities, the Study Coordination Unit (SCU) set up in Rwanda since 2004 under Phase I will manage and monitor the implementation of Phase II. The SCU will be placed under the supervision of the Planning, Policy and Capacity Building Unit (PPCBU) of MININFRA. The SCU will comprise a Coordinator assisted by a Deputy and an Accounts Manager, as well as support staff. It will ensure the technical, administrative, accounting, financial and organizational management of the study. In addition, the SCU will regularly inform the EAC and the Central Transport Corridor Coordination Authority on progress of the study. The study organizational chart is shown as Annex 2. 3.1.3 Since 2004, the SCU has satisfactorily coordinated, managed and monitored Phase I of the study financed by the Bank. To strengthen its technical and operational capacity, the SCU will, under Phase II, receive technical assistance support which will collaborate with the Unit to provide technical monitoring for the study. The technical assistance summary Terms of Reference are given as Annex 7. Provision to ADF of proof of appointing the Coordinator, his Deputy and the Accounts Manager whose qualifications would have been deemed acceptable to the ADF beforehand, will be a loan and grant condition (Condition 7.2.3 Biii). 3.2 Management of the Study 3.2.1 The Study Coordination Unit based in Rwanda will be responsible for administering and managing the study, in particular preparing procurement and contract documents, planning meetings of the Study Technical Monitoring Committee, seminars and workshops, and round table of development partners and potential private investors. It will also plan and prepare disbursement requests, assuming responsibility for the administrative and accounting management of the study. Concerning technical monitoring, the Study Technical Monitoring Committee (STMC), set up in 2004 under Phase I and chaired by Tanzania, will be charged with the technical monitoring of Phase II. The STMC will operate under the supervision of the Transport Department of Tanzania’s Ministry of Infrastructure Development (MID), while maintaining a functional relationship with Burundi’s MTPT and Rwanda’s MININFRA. It will work in close collaboration with the SCU.

9

3.2.2 The STMC will comprise (A) For Tanzania: apart from the Chairperson of the Committee, three civil engineers, two from Reli Assets Holding Company (RAHCO) and one from Tanzania Ports Authority (TPA), one transport economist from the Ministry of Infrastructure Development (MID), and one environmentalist from the Office of the Vice-President in charge of Environment; (B) For Rwanda: three civil engineers from the Ministry of Infrastructure (MININFRA), including the Study Coordinator and his/her Deputy, one economist from the Ministry of Finance and Economic Planning and one environmentalist from the Ministry in charge of Environment; and (C) For Burundi: two civil engineers from the Ministry in charge of Public Works and Infrastructure (MTPE), one economist from the Ministry of Transport, one economist from the Vice-Presidency and one environmentalist from the Ministry in charge of Environment. Provision to the ADF of proof of appointing STMC members, whose qualifications and experience would have been deemed acceptable to the ADF beforehand, will be a loan and grant condition (Conditions 7.2.2 Bii, 7.2.3 Biv and 7.2.4 Bii). 3.2.3 STMC members will reside in their respective countries. The STMC will meet once every quarter and as necessary throughout the study duration, alternating from country to country. The Committee will be responsible for: (i) reviewing various reports prepared under the study (draft and final inception and progress reports); (ii) deciding on the technical quality of reports and their acceptability; and (iii) deciding on any other technical issues concerning the study. In addition, the STMC will take part in the nine seminars proposed (three per country), the study findings validation workshop by the three countries and the round table of development partners and potential private investors. 3.2.4 Apart from the STMC, the Tanzanian, Rwandan and Burundian Governments will assign six national counterparts, two per country, to the study. The counterparts will be either civil engineers, and/or transport economists, and/or environmentalists, and will show proof of two to five years’ experience. They will work with a consulting firm with the aim of acquiring training. Costs relating to the supervision of the six counterparts (travel, per diem and travel allowance) will be part of the study cost and included in the contract of the consultant in charge of the study. 3.3 Study Implementation Schedule The duration of all study activities, starting from the loan and grant approval, will be twenty-nine months, including fifteen months for study implementation. The provisional study implementation schedule is summarized in Table 3.1 below and detailed in Annex 5.

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Table 3.1

Summary Provisional Study Implementation Schedule ACTIVITY ACTION/AGENCY END

A – PRELIMINARY ACTIVITIES

Grant/ Loan Approval ADF Nov - 2009 Nov - 2009 Signature of Grant Protocol of Agreement/Loan Agreement Gov. (RW, TZ & BUR)/ADF Dec - 2009 May- 2010 Publication of General Procurement Notice ADF/Gov. (RW, TZ & BUR) Dec - 2009 Dec - 2009 Fulfilment of Conditions Precedent to Grant/Loan Effectiveness Gov. (RW, TZ & BUR) Dec - 2009 Aug - 2010 Fulfilment of Conditions Precedent to First Disbursement of Grant/Loan Gov. (RW, TZ & BUR) Dec - 2009 Aug - 2010

Procurement of Consultancy Services ADF/Gov. (RW, TZ & BUR) Jan - 2010 July - 2010 Procurement of Technical Assistance Services ADF/Gov (RW, TZ & BUR) April - 2010 Aug - 2010 Procurement of Financial Audit Services ADF/Gov. (RW, TZ & BUR) June - 2010 Dec - 2010

B- STUDY, TECHNICAL ASSISTANCE AND FINANCIAL AUDIT SERVICES

B.1 STUDY SERVICES

Study Start-up Consultant Sept - 2010 Sept - 2010

Study Inception Report Consultant Oct - 2010 Oct - 2010

Study Information Seminar Consultant/Gov. (RW, TZ & BUR) Nov - 2010 Nov - 2010

Quarterly Study Progress Reports Consultant Dec -2010 March June Sept 2011

First Results Presentation Seminar Consultant/Gov. (RW, TZ & BUR) May - 2011 May - 2011

Draft Study Reports Consultant Aug - 2011 Aug - 2011

Study Restitution Seminar Consultant/Gov. (RW, TZ & BUR) Sept - 2011 Sept - 2011 Study Validation Workshop by the Three Countries Consultant/Gov. (RW, TZ & BUR) Oct - 2011 Oct - 2011

No-Objection of Draft Study Reports ADF/Gov. (RW, TZ & BUR) Oct - 2011 Oct - 2011

Final Study Reports Consultant Nov - 2011 Nov - 2011 Round Table of Donors and Private Investors Gov. (RW, TZ & BUR)/ADF Nov - 2011 Nov - 2011

B.2 Technical Assistance Services

Start-up of Technical Assistance Consultant Nov - 2010 Nov - 2010

Technical Assistance Inception Report Consultant Nov - 2010 Nov - 2010 Quarterly Technical Assistance Progress Reports Consultant Feb, May, Aug Nov - 2011

Draft Technical Assistance Report Consultant Nov - 2011 Nov - 2011 No-Objection of Draft Technical Assistance Report ADF/Gov. (RW, TZ & BUR) Dec – 2011 Dec – 2011

Final Technical Assistance Report Consultant Dec - 2011 Dec - 2011

B.3 Financial Audit Services

First Financial Audit Consultant March 2011 March 2011

Final Financial Audit Consultant March 2012 March 2012

RW = Rwanda; TZ = Tanzania; BUR = Burundi; ADF = African Development Fund 3.4 Reporting The Consultant will produce an inception report, quarterly progress reports and draft and final reports in English and French. The reports will be forwarded simultaneously to the ADF and the executing agency as per the proposed schedule.

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4. PROCUREMENT OF SERVICES 4.1 Services will be procured in accordance with Bank Rules of Procedure for the Use of Consultants. Procurement will be carried out by consultation on the basis of two short lists of consulting firms (one for the study and the other for technical assistance) and a short list of audit firms (for the financial audit). The procedure for selecting consultants for the study and technical assistance will be based on the “Quality and Cost Based Selection” (QCBS) method. For the financial audit, the procedure for selecting an audit firm will be based on the “Lowest Cost Selection” (LCS) method. The services procurement procedure will be managed entirely by Rwanda, lead country and Study Coordinator, in conjunction with the Study Technical Monitoring Committee. Rwanda’s national procurement laws and regulations have been examined and deemed acceptable. Arrangements for procurement of services are presented in Table 4.1 below. The contract award plan is shown in Annex 6.

Table 4.1 Arrangements for Procurement of Services (in UA Million)

Expenditure Category ICB LCB Others Short List Total Study - - - 4.26 [4.26] 4.26 [4.26] Technical Assistance - - - 0.46 [0.46] 0.46 [0.46] Financial Audit - - - 0.04 [0.04] 0.04 [0.04] Study Coordination and Monitoring - - 0.49 [0.24] - 0.49 [0.24]

Grand Total 5.25 5.00 [ ] ADF Contribution 4.2 A General Procurement Notice (GPN) will be issued and published in the United Nations “Development Business Journal” immediately upon approval of the loan and grant proposal by the Board of Directors. The lead country will submit the following documents for review by the Bank before they are finalized and published: (i) Requests for proposals (RFP) from consulting firms for the study, technical assistance and financial audit; (ii) short lists of consulting firms; (iii) bid appraisal reports and reports on appraisal of consultants’ proposals, including recommendations for contract award; and (iv) draft contracts where those in the request for proposals (RFP) had been amended (RFP). 5. STUDY JUSTIFICATION 5.1 The Dar es Salaam-Isaka-Kigali/Keza-Musongati railway project study addresses the need to open up and develop a vast service area covering not only Rwanda, Burundi and North-West of Tanzania, but also the East of Democratic Republic of Congo and South-West Uganda. This area is a rich reservoir of diverse mineral ores. It is also an area for growing food and cash crops, and for manufacturing industries. 5.2 Rwanda abounds in mineral deposits most of which are tapped on a small-scale. Available statistical data on Rwanda’s development indicators show that mining production, though still low, was about 3 835 tons of cassiterite, 188 tons of colombo-tantalite, and 1 436 tons of tungsten in 2006. Rwanda also has natural gas reserves in Lake Kivu, estimated at 55 billion m3, of which 39 billion m3 exploitable, and precious stones (ruby and sapphire). In addition, the country has raw materials for various industries, such as travertine and pozzolan for the cement industry; lime and kaolin for the ceramic industry, silica sand for the glass-making industry; trachyte for making fertilizers, and building materials (marble, granite, clay and laterite).

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5.3 Shinyanga and Kagera Regions in Tanzania, with a population of about 5 185 000, have vast reserves of nickel, gold and diamond which are not yet fully exploited. Mining activity is dominated by gold extraction, mainly in the Kahama district. Tanzania has nickel sulphide deposits estimated at about 36 million tons with 2.8% nickel content at the Kabanga site. The feasibility study for the exploitation of these mines is being carried out by the franchisee company (Kabanga Nickel). 5.4 Burundi has huge nickel deposits (sulphuric and lateritic), the most famous of which is the Musongati deposit with reserves estimated to be more than 185 million tons with a 1.6% nickel content, including 72 million tons of proven reserves. Multinational mining companies are interested in exploiting the mineral deposits (nickel, copper and cobalt). In addition, the Burundian sub-soil contains huge mineral reserves proven by various studies. In the North, there are many gold, cassiterite and colombo-tantalite deposits, and all over the country there are proven reserves of vanadium ore (about 10 million tons), and phosphates (about 17 million tons). Burundi also has industrial mineral ores such as carbonate rocks (about 2 million tons) used for making cement and raw materials (kaolin, quartzite and feldspar) used for producing ceramic ware. 5.5 The main expected socio-economic benefits of the project are: (i) a sharp drop in the cost of imported goods at national level. Transport costs account for about 40% of the cost of imported products in Rwanda and Burundi. The drop in the cost of imported goods will result in a reduction of the trade deficit, an increase in foreign exchange earnings and, ultimately, increased economic growth; (ii) a fall in the cost of exporting mine and agricultural products, and encouragement of private operators to promote and diversify exports; and (iii) promotion of productive activities (primary and secondary sectors), thanks to new means of transporting goods at the internal and international levels. 5.6 The interest shown in the railway line also stems from the comparative advantages of this mode of transport compared to the road. This includes bulky commodity transport capacity (mine, industrial, agricultural products), lower transport cost, greater security/safety of transporting goods, a longer life span of railway infrastructure (at least 30 years), an organized railway transport offer which facilitates programming of production in the area by economic actors. 5.7 The proposed study will enable the Governments of Tanzania, Rwanda and Burundi to have instruments for making decisions on rational investment in the proposed railway infrastructure which will contribute to: (a) developing mining, industrial and agricultural activities in the area; and (b) opening up the countries internally and to the outside world and regional integration, by facilitating low-cost transportation of goods within the area. The study will also enable them to have a PPP model that will draw the involvement of the private sector and help mobilize financing for the project and managing railway infrastructure. 6. OBLIGATIONS OF THE CONSULTANTS AND THE GOVERNMENTS 6.1 Obligations of the Consultants The consultants will be solely responsible for delivering study, technical assistance and financial audit services. They will take all the necessary steps to ensure the delivery of services within the set time frames. They will draw up an accurate list of all the documents put at their disposal by the three governments or produced during the delivery of

13

their services. The documents, which they will keep, will be considered as confidential and used as such. They will be returned to the governments at the end of the assignment. The consultant responsible for the study will, within the framework of his/her contract, cover all expenses relating to the organization of information seminars, restitution and validation of study findings, training of counterparts as well as expenses for the round table of development partners and private investors. 6.2 Obligations of the Governments 6.2.1 The three Governments will put at the disposal of the consultants all existing studies, documents and information that may help them in their mission. The cost of recent railway works carried out in Tanzania and in the region as well as recent data on the costs of railway fixtures and equipment maintenance will be communicated to the consultant responsible for the study. The Governments will, during each financial audit operation, provide the audit firm with all supporting documents related to the use of counterpart funds. The Governments will provide, in each country, working premises for the Study Technical Monitoring Committee. Facilities and Exemptions 6.2.2 The Governments will grant the consultants and staff duly recruited to work under them (a list will be communicated beforehand through the executing agency): (i) exemption from immigration restrictions for themselves and members of their family, the necessary entry visas, permits and authorizations for their travel on the entire territories of Tanzania, Rwanda and Burundi, and access to existing facilities; and (ii) authorization to import foreign currencies into Tanzania, Rwanda and Burundi, in accordance with exchange regulations in the three countries. The Governments will authorize, as appropriate, the re-exportation of the remainder of such foreign currencies at the end of delivery of the consultants’ services. 7. CONCLUSIONS AND RECOMMENDATIONS 7.1 Conclusions The Governments of Tanzania, Rwanda and Burundi intend to develop sufficient rail transport infrastructure to support their economic and social development programmes and promote regional economic cooperation. That is the purpose of this study and the subject of this memorandum. The study will facilitate the technical design of the Dar es Salaam-Isaka-Kigali/Keza-Musongati railway line on the Central Transport Corridor and the development of appropriate Public Private Partnership (PPP) financing models for the project and for the management of railway infrastructure. It will also facilitate rational decision-making on financing the project and managing railway infrastructure. The estimated cost of Phase II of the study is UA 5.25 million. The maximum contribution of the ADF stands at UA 5 million and covers the entire foreign exchange cost and part of the local currency cost. The Bank’s involvement is in line with the development priorities of the Governments of Tanzania, Rwanda and Burundi and the Bank’s Strategy Papers for the three countries.

14

7.2 Recommendations In light of the foregoing, it is recommended that: (i) the United Republic of Tanzania be granted an ADF loan not exceeding UA 1.66 million; (ii) the Republic of Rwanda be awarded an ADF grant not exceeding UA 1.67 million; and (iii) the Republic of Burundi be awarded an ADF grant not exceeding UA 1.67 million to finance the foreign exchange and local currency costs of the study, subject to the specific conditions hereunder. Legal Framework 7.2.1 Legal Instrument The legal framework for the project study will be a Loan Agreement between the United Republic of Tanzania and the Fund, a Grant Protocol of Agreement between the Republic of Rwanda and the Fund, and a Grant Protocol of Agreement between the Republic of Burundi and the Fund. 7.2.2 Conditions Associated with the Fund’s Involvement (United Republic of

Tanzania) A. Conditions Precedent to Entry into Force of the Loan Agreement Entry into force of this Agreement shall be subject to the signing of the Agreement and fulfilment by the Borrower to the Fund’s satisfaction, of the conditions set forth in Section 12.01 of the General Conditions Applicable to African Development Bank Loan Agreements and Guarantee Agreements. B. Conditions precedent to First Disbursement of the Loan to Tanzania The Fund shall make the first disbursement of the loan resources only if, in addition to entry into force of the Loan Agreement, the Borrower fulfils the following conditions to the satisfaction of the Fund:

(i) Provide to the ADF evidence of opening a special local currency account in the name of the study in a commercial bank deemed acceptable to the Fund, into which the counterpart contribution will be deposited (paragraph 2.6.3); and

(ii) Provide to the ADF evidence of appointing members of the Study

Technical Monitoring Committee comprising: one (1) Committee Chairperson; three (3) civil engineers, two (2) from Reli Assets Holding Company and one (1) from Tanzania Ports Authority; one (1) transport economist from the Ministry of Infrastructure Development; and one (1) environmentalist from the Vice-Presidency in charge of Environment.

7.2.3 Conditions Associated with the Fund’s Involvement (Republic of Rwanda) A. Condition Precedent to Entry into Force of the Grant Protocol of Agreement Entry into force of the Grant Protocol of Agreement shall be subject to its signature by the Republic of Rwanda (“the Donee”) and the ADF.

15

B. Conditions Precedent to First Disbursement of the Grant to the Republic of Rwanda

In addition to entry into force of the Grant Protocol of Agreement, first disbursement of the grant resources shall be subject to fulfilment by the Donee of the following conditions to the Fund’s satisfaction:

(i) Provide to the ADF evidence of opening a special foreign exchange account in the name of the study in the National Bank of Rwanda (BNR) into which ADF resources for study coordination and monitoring will be deposited (paragraph 2.6.2);

(ii) Provide to the ADF evidence of opening a special local currency account

in the name of the study in BNR, into which the counterpart contribution will be deposited (paragraph 2.6.3);

(iii) Provide to the ADF evidence of appointing a Coordinator, a Deputy

Coordinator, as well as an Accounts Manager for the study, whose qualifications and experience will have been deemed acceptable to the Fund beforehand (paragraph 3.1.3); and

(iv) Provide to the ADF evidence of designating members of the Study

Technical Monitoring Committee. The Committee will comprise three (3) civil engineers from the Ministry of Infrastructure including the Study Coordinator and his/her Deputy, one (1) economist from the Ministry of Finance and Economic Planning; and one (1) environmentalist from the Ministry in charge of Environment (paragraph 3.2.2).

7.2.4 Conditions Associated with the Fund’s Involvement (Republic of Burundi)

A. Condition Precedent to Entry into force of the Grant Protocol of Agreement Entry into force of the Grant Protocol of Agreement shall be subject to its signature by the Republic of Burundi (“the Donee”) and the ADF. B. Conditions Precedent to First Disbursement of the Grant to the Republic of

Burundi In addition to entry into force of the Grant Protocol of Agreement, first disbursement of the grant resources shall be subject to fulfilment by the Donee of the following conditions to the Fund’s satisfaction:

(i) Provide to the ADF evidence of opening a special local currency account in the name of the study in a commercial bank deemed acceptable to the Fund, into which the counterpart contribution will be deposited (paragraph 2.6.3); and

(ii) Provide to the ADF evidence of designating members of the Study

Technical Monitoring Committee. The Committee will comprise two (2) civil engineers from the Ministry of Public Works and Infrastructure, one (1) economist from the Ministry in charge of Transport, one (1) economist from the Vice-Presidency and one (1) environmentalist from the Ministry in charge of Environment (Paragraph 3.2.2).

MULTINATIONAL/TANZANIA–RWANDA-BURUNDI

PHASE II DAR ES SALAAM-ISAKA-KIGALI/KEZA-MUSONGATI RAILWAY PROJECT STUDY

THE PRESIDENT’S MEMORANDUM ANNEXES

LIST OF ANNEXES Number of pages ANNEX 1: Map of Study Railway Alignment 2 ANNEX 2: Study Organization Chart 1 ANNEX 3: Detailed Estimated Study Cost 4 ANNEX 4: Financing Plan by Expenditure Category and by Country 1 ANNEX 5: Detailed Provisional Study Implementation Schedule 2 ANNEX 6: Contract Award Plan 1 ANNEX 7: Summary Terms of Reference for Provision of Technical Assistance Services to the Study Coordination Unit 1 ANNEX 8: Profiles of Experts of the Consultant in charge of the Study 1 ANNEX 9: Profiles of Key Staff of the Study Coordination Unit, the Study Technical Monitoring Committee and Counterparts 1 ANNEX 10: Map of Existing and Proposed Railway Network 2 ANNEX 11: List of Documents Consulted 1

ANNEX 1 Page 1 of 2

MAP OF STUDY RAILWAY ALIGNMENT

Dar es Salaam

Morogor

Dodoma

Tabora

Isak

Kigali

Rusumo

Bugesera

KezaRuvubu R.

Muremer

Nyabikere

Mukanda

Musongati

Wag

Gitega

ANNEX 1 Page 2 of 2

MAP OF STUDY NEW RAILWAY ALIGNMENT

Kigali

Rusumo

Bugesera

Keza

Ruvubu

Musongati

Isaka

Giteg

MuremerNyabikere

MukandaWaga

ANNEX 2

STUDY ORGANIZATION CHART

TANZANIA MINISTRY OF INFRASTRUCTURE

DEVELOPMENT (MID)

RWANDA MINISTRY OF INFRASTRUCTURE (MININFRA) BURUNDI MINISTRY OF

TRANSPORT, POST AND TELECOMMUNICATIONS

(MTPT)

DEPARTMENT OF TRANSPORT

POLICY PLANNING AND CAPACITY

BUILDING UNIT (PPCBU)

GENERAL DIRECTORATE OF

TRANSPORT

STUDY COORDINATION UNIT (SCU) STUDY TECHNICAL MONITORING

COMMITTEE (STMC)

ANNEX 3 Page 1 of 2

DETAILED ESTIMATED STUDY COST IN USD MILLION

DESIGNATION UNIT FIELD QUANTITY

HEAD OFFICE QUANTITY

UNIT PRICE

TOTAL PRICE

% FOR. EXCH.

SHARE IN FOR. EXCH.

SHARE IN LOC. CURR.

FEES Project Director MM 0.3 1.7 27500 55000 100% 55000 0 Project Manager MM 16 0 25000 400000 100% 400000 0 PPP Design Expert MM 4 4 25000 200000 100% 200000 0 Railway Rolling Stock Specialist MM 1 2 25000 75000 100% 75000 0 Signal and Telecommunications Engineer MM 2 1 25000 75000 100% 75000 0 Bridge/Structural Engineer MM 6 3 25000 225000 100% 225000 0 Construction Engineer MM 3 3 25000 150000 100% 150000 0 Financial Analyst MM 1 1 20000 40000 100% 40000 0 Cross-cutting Issues Expert (gender, poverty, STDs/AIDS, etc)

MM 3 1 20000 80000 100% 80000 0

Railway Operation Specialist MM 1 1 25000 50000 100% 50000 0 Hydrologist MM 2 2 25000 100000 100% 100000 0 Geological/Geotechnical Engineer MM 7 4 25000 275000 100% 275000 0 Transport Economist MM 3 1 20000 80000 100% 80000 0 Socio-economist MM 2 2 20000 80000 100% 80000 0 Railway Alignment Specialist MM 3 3 25000 150000 100% 150000 0 Environmentalist MM 3 1 20000 80000 100% 80000 0 Draftsmen MM 0 10 9000 90000 100% 90000 0

Sub-total 1.1 57.3 40.7 2205000 2205000 0 Support Staff Secretaries MM 15 0 1200 18000 0% 0 18000 Draftsmen MM 15 0 1500 22500 0% 0 22500 Clerks MM 15 0 750 11250 0% 0 11250 Driver/Messenger MM 15 0 900 13500 0% 0 13500

Sub-total 1.2 60 65250 0 65250 Sub-total 1 117.3 2270250 2205000 65250 FIELD SERVICES AND WORKS Geotechnical works FF 1 0 1725000 1725000 100% 1725000 0 Surveys FF 1 0 55000 55000 50% 27500 27500 Sub-total 2 1780000 1752500 27500 PER DIEM, LOGISTICS AND TRAVEL (connected with the study) Per diem for experts/consultants in the three countries M-Days 1719 0 300 515700 100% 515700 0 Per diem for six counterparts at the head office of the consultant M-Days 180 0 300 54000 100% 54000 0

Round trip air tickets for experts/consultants Unit 23 0 10000 230000 100% 230000 0 Round trip air tickets for counterparts at the head office of the consultant Unit 6 0 6000 36000 100% 36000 0

Land transport for consultants in the three countries M- Days 1719 0 200 343800 60% 206280 137520 Computer hardware and office automation equipment FF 1 0 75000 75000 100% 75000 0 Reproduction and dispatch of documents FF 1 0 45000 45000 100% 45000 0 Office rental and operation Months 15 0 10000 150000 50% 75000 75000 Office furniture FF 1 0 12000 12000 0% 0 12000 Communication FF 1 0 10000 10000 50% 5000 5000 Sub-total 3 1471500 1241980 229520 SEMINARS, WORKSHOPS AND ROUNDTABLES Information, restitution and validation seminars Unit 10 0 45000 450000 20% 90000 360000 Round table of donors and private investors Unit 1 0 90000 90000 20% 18000 72000 Sub-total 4 540000 108000 432000 STUDY COORDINATION AND MONITORING (Study Coordination Unit + Study Technical Monitoring Committee) Allowance for travel within the countries of origin M-days 1000 0 50 50000 0% 0 50000 SCU and STMC activities in the countries of origin FF 1 0 340000 340000 0% 0 340000 Per diem for SCU and STMC outside the countries of origin M-days 500 0 300 150000 100% 150000 0

Round trip air tickets for SCU, STMC, Technical Assistant outside the countries of origin Unit 0 100 1000 100000 100% 100000 0

Operation of SCU office Months 16 0 1000 16000 0% 0 16000 Land transport for SCU & STMC outside the countries of origin M-days 150 0 200 30000 100% 30000 0

SCU communication expenses FF 1 0 6000 6000 0% 0 6000 Sub-total 5 692000 280000 412000 FINANCIAL AUDIT OF STUDY Unit 2 0 25000 50000 100% 50000 0 Sub-total 6 50000 50000 0

DETAILED ESTIMATED STUDY COST IN USD MILLION (cont’d and end)

TECHNICAL ASSISTANCE TO THE STUDY COORDINATION UNIT Fees MM 14 0 25000 350000 100% 350000 0 Per diem M-Days 420 0 300 126000 100% 126000 0 Land transport in Rwanda M-Days 420 0 200 84000 0% 0 84000 Round trip air tickets (country of origin - Rwanda) Unit 8 0 10000 80000 100% 80000 0 Operation and communication FF 1 0 13000 13000 50% 6500 6500 Sub-total 7 653000 562500 90500 BASE COST 7456750 6199980 1256770

Physical contingencies (PC) (5% of Base Cost) 372838 309999 62839 Price escalation [(4.06%) * (Base Cost +PC)] 317881 264305 53576

GRAND TOTAL 8147469 6774284 1373185

ANNEX 3

Page 2 of 2

DETAILED ESTIMATED STUDY COST IN UA MILLION

DESIGNATION UNIT FIELD QUANTITY

HEAD OFFICE QUANTITY

UNIT PRICE

TOTAL PRICE

% FOR. EXCH.

SHARE IN FOR. EXCH.

SHARE IN LOC. CURR.

FEES Project Director MM 0.3 1.7 17716 35433 100% 35433 0 Project Manager MM 16 0 16106 257694 100% 257694 0 PPP Design Expert MM 4 4 16106 128847 100% 128847 0 Railway Rolling Stock Specialist MM 1 2 16106 48318 100% 48318 0 Signal and Telecommunication Engineer MM 2 1 16106 48318 100% 48318 0 Bridge/Structural Engineer MM 6 3 16106 144953 100% 144953 0 Construction Engineer MM 3 3 16106 96635 100% 96635 0 Financial Analyst MM 1 1 12885 25769 100% 25769 0 Cross-cutting Issues Expert (gender, poverty, STDs/AIDS, etc)

MM 3 1 12885 51539 100% 51539 0

Railway Operation Specialist MM 1 1 16106 32212 100% 32212 0 Hydrologist MM 2 2 16106 64423 100% 64423 0 Geological/Geotechnical Engineer MM 7 4 16106 177164 100% 177164 0 Transport Economist MM 3 1 12885 51539 100% 51539 0 Socio-economist MM 2 2 12885 51539 100% 51539 0 Railway Alignment Specialist MM 3 3 16106 96635 100% 96635 0 Environmentalist MM 3 1 12885 51539 100% 51539 0 Draftsmen MM 0 10 5798 57981 100% 57981 0

Sub-total 1.1 57.3 40.7 1420537 1420536.9 0 Support Staff Secretaries MM 15 0 773 11596 0% 0 11596 Draftsmen MM 15 0 966 14495 0% 0 14495 Clerks MM 15 0 483 7248 0% 0 7248 Driver/Messenger MM 15 0 580 8697 0% 0 8697

Sub-total 1.2 60 42036 0 42036 Sub-total 1 117.3 1462573 1420537 42036 FIELD SERVICES AND WORKS Geotechnical works FF 1 0 1111304 1111304 100% 1111304 0 Surveys FF 1 0 35433 35433 50% 17716 17716 Sub-total 2 1146737 1129021 17716 PER DIEM, LOGISTICS AND TRAVEL (connected with the study) Per diem for experts/consultants in the three countries M-Days 1719 0 193 332232 100% 332232 0 Per diem for six counterparts at the head office of the consultant M-Days 180 0 193 34789 100% 34789 0

Round trip air tickets for experts/ consultants Unit 23 0 6442 148174 100% 148174 0 Round trip air tickets for counterparts at the head office of the consultant Unit 6 0 3865 23192 100% 23192 0

Land transport for consultants in the three countries M-Days 1719 0 129 221488 60% 132893 88595 Computer hardware and office automation equipment FF 1 0 48318 48318 100% 48318 0 Reproduction and dispatch of documents FF 1 0 28991 28991 100% 28991 0 Office rental and operation Months 15 0 6442 96635 50% 48318 48318 Office furniture FF 1 0 7731 7731 0% 0 7731 Communication FF 1 0 6442 6442 50% 3221 3221 Sub-total 3 947991 800126 147865 SEMINARS, WORKSHOPS AND ROUNDTABLES Information, restitution and validation seminars Unit 10 0 28991 289905 20% 57981 231924 Round table of donors and private investors Unit 1 0 57981 57981 20% 11596 46385 Sub-total 4 347887 69577 278309 STUDY COORDINATION AND MONITORING (Study Coordination Unit + Study Technical Monitoring Committee) Allowance for travel within the countries of origin MM 1000 0 32 32212 0% 0 32212 SCU and STMC activities in the countries of origin FF 1 0 219040 219040 0% 0 219040 Per diem for SCU and STMC outside the countries of origin M-Days 500 0 193 96635 100% 96635 0

Round trip air tickets for SCU, STMC, Technical Assistant outside the countries of origin Unit 0 100 644 64423 100% 64423 0

Operation of SCU office Months 16 0 644 10308 0% 0 10308 Land transport for SCU & STMC outside the countries of origin M-Days 150 0 129 19327 100% 19327 0

SCU communication expenses FF 1 0 3865 3865 0% 0 3865 Sub-total 5 445810 180386 265425 FINANCIAL AUDIT OF STUDY Unit 2 0 16106 32212 100% 32212 0 Sub-total 6 32212 32212 0

DETAILED ESTIMATED STUDY COST IN UA MILLION (cont’d and end)

TECHNICAL ASSISTANCE TO THE STUDY COORDINATION UNIT Fees HM 14 0 16106 225482 100% 225482 0 Per diem M-Days 420 0 193 81174 100% 81174 0 Land transport in Rwanda M-Days 420 0 129 54116 0% 0 54116 Round trip air tickets (country of origin - Rwanda) Unit 8 0 6442 51539 100% 51539 0 Operation and communication FF 1 0 8375 8375 50% 4188 4188 Sub-total 7 420685 362382 58303 BASE COST 4803895 3994241 809654

Physical contingencies (PC) (5% of Base Cost) 240195 199712 40483 Price escalation [(4.06%) * (Base Cost +PC)] 204790 170274 34516

GRAND TOTAL 5248880 4364227 884653

ANNEX 4

FINANCING PLAN BY EXPENDITURE CATEGORY AND BY COUNTRY

(1) FINANCING PLAN BY EXPENDITURE CATEGORY IN TANZANIA Expenditure Category Total Study A D F BURUNDI

Foreign Exchange

Local Currency Total

Foreign Exchange

Local Currency Total

Local Currency

(A) SERVICES 3.81 0.54 4.35 1.27 0.18 1.45 0.00 Study 3.42 0.48 3.90 1.14 0.16 1.30 0.00Technical Assistance 0.36 0.06 0.42 0.12 0.02 0.14 0.00 Financial Audit 0.03 0.03 0.01 0.01 0.00 (B) MISCELLANEOUS 0.18 0.27 0.45 0.06 0.00 0.06 0.00 Study Coordination and Monitoring 0.18 0.27 0.45 0.06 0.01 0.07 0.075 Base Cost 3.99 0.81 4.80 1.33 0.18 1.51 0.075 Physical Contingencies 0.20 0.04 0.24 0.07 0.01 0.08 0.004 Price Escalation 0.17 0.04 0.21 0.06 0.01 0.07 0.003 Grand total net of taxes 4.36 0.89 5.25 1.46 0.21 1.66 0.083 (2) FINANCING PLAN BY EXPENDITURE CATEGORY IN RWANDA Expenditure Category Total Study ADF BURUNDI

Foreign Exchange

Local Currency Total

Foreign Exchange

Local Currency Total

Local Currency

(A) SERVICES 3.81 0.54 4.35 1.27 0.18 1.45 0.00 Study 3.42 0.48 3.90 1.14 0.16 1.30 0.00 Technical Assistance 0.36 0.06 0.42 0.12 0.02 0.14 0.00 Financial Audit 0.03 0.03 0.01 0.01 0.00 (B) MISCELLANEOUS 0.18 0.27 0.45 0.06 0.01 0.07 0.00 Study Coordination and Monitoring 0.18 0.27 0.45 0.06 0.01 0.07 0.076 Base Cost 3.99 0.81 4.80 1.33 0.19 1.52 0.076 Physical Contingencies 0.20 0.04 0.24 0.07 0.01 0.08 0.005 Price Escalation 0.17 0.04 0.21 0.06 0.01 0.07 0.003 Grand total net of taxes 4.36 0.89 5.25 1.46 0.21 1.67 0.084 (3) FINANCING PLAN BY EXPENDITURE CATEGORY IN BURUNDI Expenditure Category Total Study ADF BURUNDI

Foreign Exchange

Local Currency Total

Foreign Exchange

Local Currency Total

Local Currency

(A) SERVICES 3.81 0.54 4.35 1.27 0.18 1.45 0.00 Study 3.42 0.48 3.90 1.14 0.16 1.30 0.00 Technical Assistance 0.36 0.06 0.42 0.12 0.02 0.14 0.00 Financial Audit 0.03 0.03 0.01 0.01 0.00 (B) MISCELLANEOUS 0.18 0.27 0.45 0.06 0.01 0.07 0.00 Study Coordination and Monitoring 0.18 0.27 0.45 0.06 0.01 0.07 0.076 Base Cost 3.99 0.81 4.80 1.33 0.19 1.52 0.076 Physical Contingencies 0.20 0.04 0.24 0.07 0.01 0.08 0.004Price Escalation 0.17 0.04 0.21 0.06 0.01 0.07 0.003 Grand total net of taxes 4.36 0.89 5.25 1.46 0.21 1.67 0.083

ANNEX 5 Page 1 of 2

DETAILED PROVISIONAL STUDY IMPLEMENTATION SCHEDULE

ACTIVITY ACTION/AGENCY START END

A – PRELIMINARY ACTIVITIES Loan/Grant Approval ADF Nov - 2009 Nov - 2009 Signature of Grant Protocol of Agreement/Loan Agreement Gov. (RW, TZ & BUR)/ADF Dec - 2009 May - 2010 GPN Publication ADF/Gov. (RW, TZ &BUR) Dec - 2009 Dec - 2009 Fulfilment of Conditions Precedent to Entry into Force of Loan/Grant Gov. (RW, TZ & BUR) Dec - 2009 Aug - 2010

Fulfilment of Conditions Precedent to First Disbursement Gov (RW, TZ & BUR) Dec - 2009 Aug - 2010

SL & RFP Document Preparation & Submission - Study Gov. RW Jan - 2010 Feb - 2010

No-objection RFP + SL – Study ADF March - 2010 March - 2010

Bid Invitation & Bid Submission – Study Gov. RW/Consultant Apr - 2010 Mai - 2010

Bid Appraisal & No-Objection – Study ADF/Gov. (RW, TZ & BUR) June - 2010 July - 2010

No-objection Draft Contract & Contract Signature – Study ADF/Gov RW Aug - 2010 Aug - 2010

SL & RFP Document Preparation & Submission – TA Gov. RW Apr - 2010 May - 2010

No-Objection RFP + SL – Technical Assistance ADF June - 2010 June - 2010

Bid Invitation & Bid Submission – TA Gov. RW/Consultant July - 2010 Aug - 2010

Bid Appraisal & No-Objection -Technical Assistance ADF/Gov. (RW, TZ & BUR) Sept - 2010 Oct - 2010

No-objection Draft Contract & Contract Signature – TA ADF/Gov. RW, Nov - 2010 Nov - 2010

SL & RFP Document Preparation & Submission - Audit Gov. RW June - 2010 July - 2010

No- Objection RFP + SL – Audit ADF Aug - 2010 Aug - 2010

Bid Invitation & Bid Submission – Audit Gov. RW/Consultant Sept - 2010 Oct - 2010

Bid Appraisal & No-Objection for Audit firms ADF/Gov. (RW, TZ & BUR) Nov - 2010 Dec - 2010 No-objection Draft Contract & Contract Signature – Audit ADF/Gov. RW Jan - 2011 Jan - 2011 B—STUDY, TECHNICAL ASSISTANCE, AND FINANCIAL AUDIT SERVICES

B.1 Study Services

Start of the Study Consultant Sept - 2010 Sept - 2010 Inception Report Consultant Oct - 2010 Oct - 2010 Information Seminars Consultant/Gov. (RW, TZ & BUR) Nov - 2010 Nov - 2010 Quarterly Progress Reports Consultant Dec -2010 & March, June, Sept-2011 First Results Presentation Seminar Consultant/Gov. (RW, TZ & BUR) May - 2011 May - 2011 Draft Reports Consultant Aug - 2011 Aug - 2011 Restitution Seminars Consultant/Gov. (RW, TZ & BUR) Sept - 2011 Sept - 2011 Validation Seminar by the Three Countries Consultant/Gov. (RW, TZ & BUR) Oct - 2011 Oct - 2011 No-Objection of the Draft Reports ADF/Gov. (RW, TZ & BUR) Oct - 2011 Oct - 2011 Final Reports Consultant Nov - 2011 Nov - 2011 Round Table of Development Partners and Private Sector Gov/ (RW, TZ & BUR)/ADF Nov - 2011 Nov - 2011 B.2 Technical Assistance Services Start of Technical Assistance Consultant Nov - 2010 Nov - 2010 Technical Assistance Inception Report Consultant Nov - 2010 Nov - 2010 Quarterly Progress Reports Consultant Feb, May, Aug, Nov - 2011

Draft Report Consultant Nov - 2011 Nov - 2011 No-Objection of the Draft Report ADF/Gov. (RW, TZ & BUR) Dec – 2011 Dec – 2011 Final Report Consultant Dec - 2011 Dec - 2011 B.3 Financial Audit Services

First Financial Audit Consultant March 2011 March 2011 Final Financial Audit Consultant March 2012 March 2012 RW: Rwanda BR: Burundi GPN: General Procurement Notice TZ: Tanzania ADF: African Development Fund RFP:= Request for Proposal TA: Technical Assistance SL:= Short List

ANNEX 5 Page 2 of 2

PROVISIONAL STUDY IMPLEMENTATION SCHEDULE ID Task Nam e

1 A - PRELIMINARY ACTIVITIES2 Loan/Grant Approval3 Signature of Protocol Agreement / Loan Agreem ent4 GPN Publication5 Fulfilment of Conditions Precedent to the Entry in Force of Loan/Grant6 Fulfilment of Conditions Precedent to Firs t Disburcem ent7 SL & RFP Docum ent Preparation & Submis s ion - Study8 No-objection RFP + SL - Study9 Consultation Launching & Bid Docum ents - Study10 Bid Evaluation & No-Objection - Study11 No-objection of the Draft Contract and Signature of the Contract - Study12 SL & RFP Docum ent Preparation & Submis s ion - Technical As s is tance13 No-objection RFP + SL - Technical As sis tance14 Consultation Launching & Bid Docum ents - Technical Assis tance15 Bid Evaluation & No-Objection - Technical As sis tance16 No-objection of the Draft Contract and Signature of the Contract - Technical assis tance17 SL & RFP Docum ent Preparation & Submis s ion - Financial Audit18 No-objection RFP + SL - Financial Audit19 Consultation Launching & Bid Docum ents - Financial Audit20 Bid Evaluation & No-Objection - Financial Audit21 No-objection of the Draft Contract and Signature of the Contract - Financial Audit22 B - STUDY, TECHNICAL ASSISTANCE, AND FINANCIAL AUDIT SERVICES23 B.1 Study Services24 Starting of the Study25 Study Inception Report26 Information Seminars27 Quarterly Study Progres s Report28 Quarterly Study Progres s Report29 Quarterly Study Progres s Report30 Quarterly Study Progres s Report31 Firs t Results Presentation Seminar32 Study Draft Reports33 Res titution Seminars34 Validation Seminar by the Three Countries35 No-Objection of the Study Draft Reports36 Final Study Reports37 Round Table of Development Partners and Private Sector38 B.2 Technical Assistance Services39 Starting of Technical As s is tance40 Technical Ass istance Inception Report41 Quarterly Technical Ass istance Progress Report42 Quarterly Technical Ass istance Progress Report43 Quarterly Technical Ass istance Progress Report44 Quarterly Technical Ass istance Progress Report45 Technical Ass istance Draft Report46 No-Objection of the Technical Ass istance Draft Report47 Final Technical Ass is tance Report48 B.3 Financial Audit Services49 Firs t Financial Audit50 Final Financial Audit

11/17

12/15

Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr2010 2011

ANNEX 6

CONTRACT AWARD PLAN

Activities Action/AgencyProcurement

Method Start End A – Preliminary Activities Grant/Loan Approval ADF

N.A.

Nov - 2009 Nov - 2009 Signature and Entry into Force of Protocol Grant/LoanAgreement Gov. (RW, TZ & BUR)/ADF Dec - 2009 May - 2010

Publication of General Procurement Notice ADF/Gov. (RW, TZ &BUR) Dec - 2009 Dec - 2009 Fulfilment of Conditions Precedent to the Entry into Force of Grant/Loan Gov. (RW, TZ & BUR) Dec - 2009 August - 2010 Fulfilment of Conditions Precedent to the First Disbursement of Grant/Loan Gov. (RW, TZ & BUR) Dec - 2009 August - 2010

Procurement of Consultancy Services ADF/Gov. (RW, TZ &BUR) Jan - 2010 July - 2010

Procurement of Technical Assistance Services ADF/Gov. (RW, TZ &BUR) Apr - 2010 August - 2010

Procurement of Financial Audit Services ADF/Gov. (RW, TZ &BUR) June - 2010 Dec - 2010

B – Study Services SL RFP and SL Documents Preparation and submission - Study Gov. RW

Jan - 2010 Feb - 2010

No-objection RFP + SL – Study ADF Mar - 2010 Mar - 2010

Bid Invitation + Submission of Bids - Study Gov. RW/Consultant Apr - 2010 May - 2010

Bid Appraisal & No-Objection - Study ADF/Gov. (RW, TZ & BUR) June - 2010 July - 2010

No- objection Draft Contract and Contract Signature - Study ADF/Gov. RW August - 2010 August - 2010

Start Consultant Sept - 2010 Sept - 2010

Completion Consultant Nov - 2011 Nov - 2011

C – Technical Assistance Services SL

RFP and SL Documents Preparation and Submission - Study Gov. RW

Apr - 2010 May - 2010

No-objection RFP + SL – Study ADF June - 2010 June - 2010

Bid Invitation + Submission of Bids - Study Gov. RW/Consultant July - 2010 August - 2010

Bid Appraisal & No-Objection - Study ADF/Gov. (RW, TZ & BUR) Sept - 2010 Oct - 2010

No- objection Draft Contract and Contract Signature - TA ADF/Gov. RW Nov - 2010 Nov - 2010

Starting of Technical Assistance Consultant Nov - 2010 Nov - 2010

Completion Consultant Dec - 2011 Dec - 2011

D – Financial Audit Services SL

RFP and SL Documents Preparation and Submission - Study Gov. RW

June - 2010 July - 2010

No-objection RFP + SL - Study ADF August - 2010 August - 2010

Bid Invitation + Submission of Bids - Study Gov. RW/Consultant Sept - 2010 Oct - 2010

Bid Appraisal & No-Objection - Study ADF/ Gov. (RW, TZ & BUR) Nov - 2010 Dec - 2010 No- objection Draft Contract and Contract Signature – Fin. Audit ADF/Gov. RW Jan - 2011 Jan - 2011

Starting of Financial Audit Consultant Mar 2011 Mar 2011

Completion Consultant Mar 2012 Mar 2012

RW: Rwanda TZ: Tanzania BUR: Burundi ADF: African Development Fund SL: Short List

ANNEX 7

SUMMARY TERMS OF REFERENCE FOR PROVISION OF TECHNICAL ASSISTANCE SERVICES TO THE STUDY COORDINATION UNIT

As part of technical and operational capacity building of the Study Coordination Unit (SCU), plans have been made to recruit technical assistance to put at the disposal of the SCU an expert (railway engineer) with at least five (5) years’ proven experience in Public Private Partnership (PPP) approach. The tasks of the technical assistance are summarized as follows: A) Support the SCU in the management, technical and organizational monitoring of

the study. This will mainly entail:

* Reviewing study reports and, in consultation with the SCU and the Study Technical Monitoring Committee (STMC), giving a detailed technical opinion on the technical quality of the reports and their acceptability; and

* Assisting the SCU in carrying out a judicious scheduling of the

organization of seminars/workshops provided for under the study as well as planning the preparation of requests for payment;

B) Prepare and submit, in consultation with the SCU, quarterly progress reports of all

study activities, including relevant recommendations for improving the study; (C) Provide to the Governments and the Bank, in consultation with the SCU and

STMC, relevant data/information for assessing various study reports.

1

ANNEX 8

PROFILES OF EXPERTS OF THE CONSULTANT IN CHARGE OF THE STUDY

The Consultant in charge of the study will recruit a team of experts with solid

qualifications and experience in their respective domains. As a guide, the key experts will be:

• Project Director; at the head office of the Consultant – at least fifteen (15) years’ experience in project management;

• Project Manager (civil engineer with at least ten (10) years’ experience in the

design, planning and coordination of studies with skills in the railway domain. He will be in charge of coordinating the team of experts and the proper conduct of the study;

• Railway Engineer: with at least ten (10) years’ experience in railway design and

engineering;

• Signal and Telecommunications Engineer: with at least five (5) years’ experience in the design of signal and telecommunications systems;

• Bridge/Structural Engineer: with at least ten (10) years’ experience in bridge and

structural design;

• Civil Construction Engineer: with at least 10 (ten) years’ experience in civil construction design and engineering;

• Railway Operation Specialist: with at least five (5) years’ experience in railway

operation;

• Hydraulic Engineer: with at least five (5) years’ experience in the domain;

• Geological/Geotechnical Engineer: with at least ten (10) years’ experience in the domain;

• Transport Economist: with at least five (5) years’ experience in transport project

evaluation and in the railway sub-sector;

• Socio-economist: with at least five (5) years’ experience in the conduct of socio-economic surveys, community participation, socio-economic analysis of transport infrastructure projects in general and in the railway sub-sector in particular;

• Railway Alignment Specialist: with at least ten (10) years’ experience in the

domain;

• Railway Equipment Specialist: with at least ten (10) years’ experience in the domain;

• Environmental Expert: with at least five (5) years’ experience in infrastructure

project environmental impact assessment;

2

• PPP Expert: with a least seven (7) years’ experience in (i) infrastructure projects,

especially railway projects, (ii) institutional reforms (restructuring-privatization) and in the drafting of PPP contracts, and (iii) proven experience in transport facilitation;

• Financial Analyst: with a least seven (7) years’ experience in financial analysis,

particularly of infrastructure projects;

• Gender Expert: with at least five (5) years’ experience in the design and assessment of social impacts of infrastructure projects on gender in general and on the most vulnerable population segments in particular (women, rural dwellers, children, etc.)

ANNEX 9

PROFILES OF KEY STAFF OF THE STUDY COORDINATION UNIT, STUDY TECHNICAL MONITORING COMMITTEE AND COUNTERPARTS

(A) Profiles of the Staff of the Study Coordination Unit (SCU) The key staff of the SCU will comprise two civil engineers including one Study Coordinator and

his Deputy and one Accounts Manager.

* Coordinator of Phase II of the study: civil engineer with at least seven design and engineering studies, especially railway infrastructure;

* Deputy Coordinator: civil engineer with at least five years’ experience

in transport;

* Accounts Manager: project manager and accountant with at least five years’ experience in the domain.

(B) Profile of Members of the Study Technical Monitoring Committee (STMC) The STMC will comprise civil engineers, economists, transport economist and environmentalists.

The required profiles are summarized as follows:

(i) The civil engineers, economists and transport Economist will all be years’ experience in transport infrastructure;

(ii) The environmentalists will be holders of a university degree in environmental assessment of projects in general and development and infrastructure projects in particular. (C) Profile of Counterparts The counterparts will be civil Engineers and/or environmentalists and/or transport economists, and

will have two to five years’ experience in their respective domains. The consulting firm in charge of the study will provide the assigned counterparts with training on railway design and engineering.

ANNEX 10 Page 1 of 2

MAP OF EXISTING AND PROPOSED RAILWAY NETWORK

Key Existing network 

Proposed Network 

Ferry

ANNEX 10 Page 2 of 2

EXISTING REGIONAL RAILWAY NETWORK

LINK DISTANCE (km)

1 Kenya Railway Corporation (KRC) 1876

2 Uganda Railway Corporation (URC) 260

3 Tanzania Railway Limited (TRL) 3083

4 Tanzania Zambia Railways (TAZARA) 976

TOTAL  6195

PROPOSED REGIONAL RAILWAY NETWORK

LINK DISTANCE (km)

1 Kasese – Kisangani 600

2 Gulu – Nimule – Juba 300

3 Pakwach – Bunia – Kisangani 900

4 Bihanga – Kabale – Kigali 300

5 Lamu – Garissa – Juba 1600

6 Garissa – Addis Ababa 1300

7 Liganga – Mchuchuma – Mtwara 800

8 Mchuchuma – Mbamba Bay 200

9 Liganga – Mlimba 250

10 Dar es Salaam – Mtwara 600

11 Kigali - Kabale - Bihanga 300

12 Tunduma – Sumbawanga – Mpanda – Kigoma 700

13 Uvinza – Bujumbura 300

14 Arusha – Musoma 500

15 Lamu – Kismayu 300

16 Garissa - Nairobi 350    

ANNEX 11

LIST OF DOCUMENTS CONSULTED

Reports of Feasibility Studies on the Isaka-Kigali/Keza-Musongati Railway Project (March 2009) DB International (Fr.)

Terms of Reference for the Dar es Salaam-Isaka-Kigali/Keza-Musongati Railway Project prepared by the Governments of Tanzania, Rwanda and Burundi, 17 July 2009

Tanzania – Joint Assistance Strategy and Joint Program Document, 2007 The Economic Survey 2007 & 2008 – Ministry of Finance and Economic Affairs, Dar es Salaam,

Tanzania National Transport Policy 2003 – Ministry of Infrastructure Development, Dar es Salaam,

Tanzania 10 year Transport Sector Investment Program (TSIP) Phase I 2007/08-2011/112 main report -

Ministry of Infrastructure Development, Dar-Es-Salaam, Tanzania Annual Report & Accounts, 2007 Tanzania Ports Authority Implementation Action Plan for the Construction Industry Policy 2006 - Ministry of

Infrastructure Development, Dar-Es-Salaam, Tanzania Transport, Construction and Meteorology Sector Statistics, June 2009 Ministry of Infrastructure

Development, Dar es Salaam, Tanzania Railways Regulations, 2002, Tanzania Concession Agreement between RAHCO and Tanzania Railway Limited, 3 September 2007,

Tanzania Tanzania Railway Limited, Statistics Jan-Dec. 2008 Tanzania Ports Master Plan Final report, February 2009, Royal Haskonning, Tanzania Port

Authority The Mineral Policy of Tanzania, Ministry of Energy and Minerals, 1977 The National Energy Policy, Ministry of Energy and Minerals, Tanzania,2003 The Environmental Regulations, Tanzania, 2005 Agreement, Central Corridor Transit Transport Facilitation Agency, Dar es Salaam, Tanzania,

2006 Burundi: Country Strategy Paper, 2008-2011 2007 Annual Report, Bank of the Republic of Burundi Monthly Bulletin, December 2008 and March 2009, Studies Department, Bank of the Republic

of Benin (Fr.) Burundi Economic Report, World Bank 2009 Burundian Economy, 2007, General Directorate of Planning and Forecasts, Vice-Minister in

charge of Planning, Bujumbura, Burundi, October 2008 (Fr.) Burundi’s Mineral Resources, Ministry of Energy and Mining, 1991 (Fr.) Memorandum on the Musongati Nickel Project (Burundi), 1990 (Fr.) Reappraisal Study on the Musongati Project, Andover Resources NL, Burundi, 2003 (Fr.) Economic Development and Poverty Reduction Strategy EDPRS, 2008 - 2012 Rwanda EICV Poverty Analysis for Rwanda's Economic Development and Poverty Reduction Strategy

Final Report, MINECOFIN, Rwanda, 2007 Rwanda Development Indicators, 2006, National Institute of Statistics (INSR), May 2008 (Fr.) Rwanda: 2008-2011 Country Strategy Paper Transport Sub-sector Strategic Plan 2008-2012, Ministry of Infrastructure Rwanda, September

2008 Quarterly Economic Review January – March 2008– National Institute of Statistics of Rwanda Rwanda Utilities Regulatory Agency (RURA) Law and Decrees Feasibility Study for the Rwanda-Burundi Oil Products Pipeline Capacity Market Analysis Phase

I Ministry of Infrastructure, Kigali, Rwanda East African Community Railways Master Plan Study Final Report, CPCS, June 2009 Overview of EAC Railway Network, Development Scenarios and Cost Implications, CPCS, June

2009 Upgrade of the Dar es Salaam to Isaka Railway Project, Start-Up and Kick-off Report, BNSF

Railway, March 2009 The East African Road Network Project Implementation Matrix Status as at January, EAC, 2009.