AFRICAN DEVELOPMENT FUND Language: English

Original: English

FEDERAL DEMOCRATIC REPUBLIC OF ETHIOPIA

WACHA-MAJI ROAD UPGRADING PROJECT

APPRAISAL REPORT

INFRASTRUCTURE DEPARTMENT ONIN

CENTRAL & WEST REGIONS SEPTEMBER 2002
 TABLE OF CONTENTS

Page

PROJECT INFORMATION SHEET, CURRENCY AND MEASURES, i-viii

LIST OF TABLES, LIST OF ANNEXES, LIST OF ABBREVIATIONS,
BASIC PROJECT DATA, PROJECT LOGICAL FRAMEWORK,
EXECUTIVE SUMMARY

1. ORIGIN AND HISTORY OF THE PROJECT 1

2. THE TRANSPORT SECTOR 2

2.1 Sector Overview 2

2.2 Transport System 2
2.3 Transport Policy, Planning and Coordination 3

3. THE ROAD SUB-SECTOR 4

3.1 Road Network, Vehicle Fleet and Network Traffic 4

3.2 The Road Transport Industry 5
3.3 Road Administration and Training 5
3.4 Road Planning, Financing and RSDP 6
3.5 Road Engineering and Construction 7
3.6 Road Maintenance 8

4. THE PROJECT 10

4.1 Concept and Rationale 10

4.2 Project Area and Project Beneficiaries 11
4.3 Strategic Context 13
4.4 Project Objective 13
4.5 Project Description 13
4.6 Traffic, Producer Surplus and Prices 15
4.7 Environmental Impact 18
4.8 Social Impact 20
4.9 Project Costs 21
4.10 Sources of Finance and Expenditure Schedule 22
4.11 Expenditure Schedule 23
 TABLE OF CONTENTS (cont’d)

Page

5. PROJECT IMPLEMENTATION 24

5.1 Executing Agency 24

5.2 Institutional Arrangements 24
5.3 Supervision and Implementation Schedule 25
5.4 Procurement Arrangements 26
5.5 Disbursement Arrangements 27
5.6 Monitoring and Evaluation 27
5.7 Financial Reporting and Auditing 28
5.8 Aid Co-ordination 28

6. PROJECT SUSTAINABILITY AND RISKS 29

6.1 Recurrent Costs 29

6.2 Project Sustainability 29
6.3 Critical Risks and Mitigation Measures 30

7. PROJECT BENEFITS 30

7.1 Economic Analysis 30

7.2 Social Impact Analysis 32
7.3 Sensitivity Analysis 33

8. CONCLUSIONS AND RECOMMENDATIONS 33

8.1 Conclusions 33
8.2 Recommendations and Conditions of Loan Approval 34

This Appraisal Report was prepared by Messrs. M.O. AJIJO (Principal Transport Economist, Ext. 3110),
A. OUMAROU (Senior Transport Engineer, Ext. 3110), and Ms. GEISLER (Senior Gender Expert)
following their mission to Ethiopia in September 2002. Any inquiries relating to this report may be
referred to either the authors or to Mr. H. NYAME-MENSAH, Ag. Manager, ONIN.3, Ext. 2652 or to
Mr. K. BEDOUMRA, Director, ONIN Ext. 2040.
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AFRICAN DEVELOPMENT FUND

01 B.P. 1387 - ABIDJAN
Tel: 20 20-44-44
Fax: (225) 20 20-49-86
Telex: 23717, 22202, 22203

PROJECT INFORMATION SHEET

The information given hereunder is intended to provide some guidance to prospective

suppliers, contractors and consultants and to all persons interested in the procurement of goods and
services for project approved by the Board of Directors of the Bank Group. More detailed
information and guidance should be obtained from the Executing Agency of the Borrower.

1. COUNTRY : Ethiopia

2. PROJECT TITLE : Wacha – Maji Road Upgrading Project

3. LOCATION : Chena, Meinit and Dizi Districts (Weredas) of

Bench – Maji Zones of Southern Nations,
Nationalities and Peoples Region State
(SNNPRS).

4. BORROWER : Federal Democratic Republic of Ethiopia

5. EXECUTING AGENCY : Ethiopian Roads Authority (ERA)

P.O. Box 1770
Addis Ababa - Ethiopia
Tel: (251) 1 156603
Fax: (251) 1 514866
E. Mail: era1@telecom.net.et

6. DESCRIPTION : The project consists of:

(a) Civil works for upgrading the existing earth/track road to a

gravel road with a 7-m carriageway inclusive of shoulders
for a total length of 173 km between the towns of Wacha
and Maji in SNNPRS. Approximately 20.0% of the road
length (35-km) on steep grades in mountainous terrain will
be surfaced using double bitumen surface treatment;

(b) Consultancy services for i) Design review and supervision

of the civil works and ii) Project Audit service;

(c) Technical Assistance to ERA to strengthen its Design

Review Branch.
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7. TOTAL COST : UA 26.28 million

i) Foreign Exchange : UA 22.71 million

ii) Local Cost : UA 3.57 million

8. BANK GROUP LOAN/GRANT

ADF : UA 22.71 million

ADF/TAF : UA 0.99 million

9. OTHER SOURCE OF FINANCE

GOE : UA 2.58 million

10. DATE OF APPROVAL : May 2003

11. ESTIMATED STARTING

DATE OF PROJECT
AND DURATION : April 2005 – 40 months

12. PROCUREMENT OF
GOODS AND WORKS : The civil works contract will be packaged in
a single lot to be procured under International
Competitive Bidding (ICB) procedures, with
pre-qualification of contractors, and a
domestic preference margin.

13. CONSULTANCY SERVICES

REQUIRED AND STAGE
OF SELECTION : Consultancy services for design review
and supervision of civil works will be
acquired on the basis of a shortlist of
qualified consulting firms.

: The Technical Assistance Support services

for ERA Design Review Branch will be
acquired on the basis of a shortlist of qualified
consulting firms.

: Project audit services will be procured on the

basis of a Short list of auditing firms.

1 SDR = 1 UA
1 UA = US$ 1.32751 (September, 2002)
1 UA = ETB 11.0544 (September, 2002)