AFRICAN DEVELOPMENT FUND
STUDY FOR NATIONAL TRANSPORT SECTOR MASTER PLAN UPDATE
COUNTRY : ANGOLA
Appraisal Team
Regional Director
: Mr. C. OJUKWU, ORSB
Sector Director
: Mr. A. OUMAROU, OITC
Team Leader
: Mr. T. HARADA
OITC DEPARTMENT
August 2013
TABLE OF CONTENTS
I – STRATEGIC THRUST & RATIONALE ....................................................................... 1
1.1. Study linkages with country strategy and objectives ...................................................... 1
1.2. Rationale for Bank’s involvement .................................................................................. 1
1.3. Donors coordination ........................................................................................................ 2
II – STUDY DESCRIPTION .................................................................................................. 2
2.1. Background ..................................................................................................................... 2
2.2. Study objective ................................................................................................................ 3
2.3. Study components ........................................................................................................... 4
2.4. Technical solution retained and other alternatives explored ........................................... 4
2.5. Study type ....................................................................................................................... 4
2.6. Study cost and financing arrangements .......................................................................... 4
2.7. Study’s target area and population .................................................................................. 5
2.8. Participatory process for study identification, design and implementation .................... 6
2.9. Bank Group experience, lessons reflected in study design ............................................. 6
2.10.Key performance indicators ........................................................................................... 6
III – STUDY FEASIBILITY................................................................................................... 6
3.1. Economic and financial performance ............................................................................. 6
3.2. Environmental and Social impacts .................................................................................. 6
IV – IMPLEMENTATION ..................................................................................................... 7
4.1. Implementation arrangements ......................................................................................... 7
4.2. Monitoring ...................................................................................................................... 8
4.3. Governance ..................................................................................................................... 8
4.4. Sustainability................................................................................................................... 8
4.5. Risk management ............................................................................................................ 8
4.6. Knowledge building ........................................................................................................ 9
V – LEGAL INSTRUMENTS AND AUTHORITY ............................................................. 9
5.1. Legal instrument ............................................................................................................. 9
5.2. Conditions associated with Bank’s intervention ............................................................. 9
5.3. Compliance with Bank Policies ...................................................................................... 9
VI – RECOMMENDATION................................................................................................. 10
Appendix I. Country’s comparative socio-economic indicators
Appendix II. Table of ADB’s portfolio in the country
Appendix III. Key related projects financed by the Bank and other development partners in the
country
Appendix IV. Map of the Study Area
Currency Equivalents
As of July 2013
Currency Unit
UA 1.0
UA 1.0
US$ 1.0
=
=
=
=
Angolan Kwanza (AON)
AON 144.13
US$ 1.50
AON 95.84
Fiscal Year
01 January – 31 December
Weights and Measures
1metric tonne
1 kilogramme (kg)
1 metre (m)
1 millimetre (mm)
1 kilometre (km)
1 hectare (ha)
=
=
=
=
=
=
2,204 pounds (lbs)
2.200 lbs
3.28 feet (ft)
0.03937 inch (“)
0.62 mile
2.471 acres
Acronyms and Abbreviations
ADB
ADF
CSP
CFB
EU
GOA
JICA
Pre-F/S
SADC
TOR
UA
USAID
=
=
=
=
=
=
=
=
=
=
=
=
African Development Bank
African Development Fund
Country Strategy Paper
Caminhos de Ferro de Benguela (Benguela Railway)
European Union
Government of Angola
Japan International Cooperation Agency
Preliminary Feasibility Study
Southern African Development Community
Terms of Reference
Unit of Account
United States Agency for International Development
i
Loan Information
Client’s information
BORROWER
:
The Republic of Angola
EXECUTING AGENCY
:
Ministry of Transport
Financing plan
Source
Amount (UA)
Instrument
ADF
Government of Angola
TOTAL COST
2.90 million
0.38 million
3.28 million
Loan
Counterpart fund
ADB’s key financing information
Loan currency
Interest type
Interest rate spread
Commitment fee
Other fees
UA
N/A
1%
0.5%
Tenor
Grace period
FIRR, NPV (base case)
EIRR (base case)
30 years
8 years
N/A
N/A
0.75% on the
amount disbursed
and outstanding
from time to time
Timeframe - Main Milestones (expected)
Concept Note approval
Study approval
July 2012
September 2013
Effectiveness
Last Disbursement
Completion
October 2013
August 2016
August 2015
ii
Study Summary
1.
Study Overview
Study for National Transport Sector Master Plan Update comprises 2 components: 1)
National Transport Sector Master Plan Update incorporating existing plans and studies to a)
formulate an overall strategy and policy for the nationwide transport network, composed of
roads, railways, inland waterways, ports and airports in Angola, b) elaborate a nationwide
and integrated transport network for the future, connecting the existing transport
infrastructure, and c) identify and select priority projects with justifications, and 2)
Preliminary Feasibility Study (Pre-F/S) on the Railway Link between the existing railway
named “Caminhos de Ferro de Benguela (CFB)” and Zambia. An optimum route for a
railway link connecting CFB and Zambia among different options will be selected, based on
traffic data, natural, social and economic information, and environmental and social aspects,
as well as economic and financial analysis of the optimum route.
The first component will be completed within 15 months from the beginning of the
consultancy services, whereas the latter will take 6 months. The study will cost UA 3.28
million, of which UA 2.90 million will be an ADF loan.
The direct beneficiaries of the study are the Ministry of Transport and the Ministry of
Urbanism and Construction including the transport-related entities under the ministries.
The National Transport Sector Master Plan Update will enable the Government of Angola
(GOA) to timely and properly make decisions and take actions toward better transport
infrastructure and services, while the Pre-F/S on the Railway Link between CFB and Zambia
will provide a basis for the GOA’s next actions for development of the railway link, including
the private sector involvement.
2.
Needs Assessment
The Bank’s intervention in the study is timely, because 1) Angola, at the final stage of
rehabilitation, is now urgently requiring new perspectives on a nationwide and integrated
transport network for the future, connecting the existing transport infrastructure, and 2) the
Pre-F/S on the Railway Link should be commenced as soon as possible in light of the
enhanced interests by the both governments of Angola and Zambia and the fact that some
studies have been already done on the Zambian side.
3.
Bank’s Added Value
The Bank will be able to support the GOA in the study not only financially but also
technically, having experience of interventions in similar studies for other member countries.
Also, the Bank will be able to provide the GOA with advice for the Pre-F/S on the Railway
Link between CFB and Zambia, as it has on-going interventions in the transport sector in
Zambia.
4.
Knowledge Management
The study will unveil the current situation of the transport sector in Angola which is not well
known so far, despite its importance in the regional context. The study is expected to identify
future Bank’s intervention, such as financing for priority projects to be identified in the
National Transport Sector Master Plan Update, as well as financing for the full-scale
feasibility study and detailed engineering design on the Railway Link between CFB and
Zambia whose TOR shall be elaborated by the Pre-F/S.
iii
Result-based Logical Framework
Country and study name: Angola – Study for National Transport Sector Master Plan Update
Purpose of the study : to carry out studies that will provide GOA with a clear vision of transport infrastructure development up to 2025
PERFORMANCE INDICATORS
KEY ACTIAVITIES
OUTPUTS
OUTCOMES
IMPACT
RESULTS CHAIN
Indicator
(including CSI)
Socio-economic development,
poverty reduction and regional
integration through an improved and
sustainable transport system
GDP growth rate
GOA is capable to timely and
properly make decisions and take
actions for the transport sector
Institutional framework in
place to ensure transport
infrastructure development
based on the studies
Component 1: National Transport
Sector Master Plan Update prepared
Baseline
[2012]
Target
6.8%
(IMF
forecast)
7.5-8.5 %
(Target of the longterm strategy “Angola
2025”)
[2015-2025]
None
Establishment of the
institutional
framework
[2015]
None
Study reports
submitted and
approved
Study reports
Component 2: the Preliminary
Feasibility Study on the Railway
Link completed
COMPONENTS
Component 1: Preparing the National Transport Sector Master
Plan Update
Component 2: Carrying out the Preliminary Feasibility Study on
the Railway Link between CFB and Zambia
Component 3: Provision of the Technical Assistance
Component 1 [2015]
Component 2 [2014]
Costs (million UA)
Studies
Technical assistance
Financial audit
Base cost
Price escalation
Study cost
Component 4: Carrying out the Financial Audit
iv
2.66
0.19
0.03
2.88
0.40
3.28
MEANS OF
VERIFICAT
ION
GOA’s
statistics
GOA’s
document
Study reports
produced
RISKS/MITIGATI-ON MEASURES
Risk
Failure to allocate enough budgets to develop and
maintain the transport infrastructure
Mitigation measures
GOA’s efforts with the assistance of development
partners
Risk
GOA’s decreasing commitment to implement the
outputs of the studies
Mitigation measures
Regular dialogue and follow-up by the Bank and
other development partners
Risk
1. Delays in the procurement
2. Delays in the implementation, not meeting quality
standards
Mitigation measures
1. Realistic contract award plan
2. Precise ToR and efficient monitoring
INPUTS
Sources of financing (million UA)
ADF Loan
2.90 [88%]
GOA
0.38 [12%]
Total
3.28 [100%]
Study Timeframe
Board Approval
Signature of Loan Agreement
GPN Publication
TA (Procurement)
Shortlisting
Evaluation
Award of Contract
Technical Assistance Services
Study
Shortlisting
Issuance of RFP
Receipt of Proposals
Evaluation of Proposals
Award of Contract
Mobilization
Implementation of Study
TA (Study Management)
Shortlisting
Issuance of RFP
Receipt of Proposals
Evaluation of Proposals
Award of Contract
Mobilization
Technical Assistance Services
Financial Audit
Shortlisting
Issuance of RFP
Receipt of Proposals
Evaluation of Proposals
Award of Contract
Mobilization
Financial Audit Services
TA: Technical Assistance
Sep
*
2013
Oct Nov Dec
Jan
2014
Feb Mar Apr May Jun Jul
Aug Sep
Oct Nov Dec
Jan
2015
Feb Mar Apr May Jun
Jul
Aug Sep
Oct
*
*
*
2
1
1
2
3
19
*
*
*
1
2
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
1
2
3
4
5
6
7
8
9
10
11
12
*
*
*
*
*
*
v
13
14
REPORT AND RECOMMENDATION OF THE MANAGEMENT TO THE BOARD
OF DIRECTORS ON A PROPOSED LOAN TO THE REPUBLIC OF ANGOLA TO
FINANCE THE STUDY FOR NATIONAL TRANSPORT SECTOR MASTER PLAN
UPDATE
Management submits the following Report and Recommendation on a proposed loan for UA
2.9 million on loan to finance the Study for National Transport Sector Master Plan Update in
the Republic of Angola.
I.
STRATEGIC THRUST & RATIONALE
1.1.
Study linkages with country strategy and objectives
1.1.1 The strategic pillars of the Country Strategy Paper (CSP) 2011-2015 are Pillar I:
Stimulus to the Competitiveness of the economy and Pillar II: Support to Economic
Infrastructure Development. Transport is one of the two sectors which are given priority in
terms of financing infrastructure development. The outcome of the study will enable the
Government of Angola (GOA) to timely and properly make decisions and take actions for the
transport infrastructure development which will enhance the competitiveness of the economy
of Angola and the region. The study area including the railway link is identified in the CSP
2011-2015.
1.1.2 Angola does not have a Poverty Reduction Strategy Paper (PRSP) but launched a
long-term strategy named “Visão 2025” in 2010. Another long term vision named “Angola
2025”, published by the Ministry of Planning, articulates the vision of transport infrastructure
development: “construction of an integrated transport network at the national level based on a
comprehensive and integrated level of road, rail, maritime and air transport...”. The proposed
study is to elaborate a nationwide and integrated transport network for the future, connecting
the existing transport infrastructure, which is in line with the foregoing vision.
1.2.
Rationale for Bank’s involvement
1.2.1 The Bank will be able to support the GOA in the studies not only financially but also
technically, having experience of interventions in similar studies for other member countries.
Also, the Bank will be able to provide the GOA with advice for the Preliminary Feasibility
Study (Pre-F/S) on the Railway Link between Caminhos de Ferro de Benguela (CFB) and
Zambia, as it has on-going interventions in the transport sector in Zambia. Close
communication between the Bank and the GOA through the presence of Angola Country
Office will be favourable for the smooth implementation of the studies.
1.2.2 The intervention in the studies is timely, because 1) Angola, at the final stage of
rehabilitation, is now urgently requiring new perspectives on a nationwide and integrated
transport network for the future, connecting the existing transport infrastructure; and 2) the
Pre-F/S on the Railway Link should be commenced as soon as possible in light of the
enhanced interests by the both governments of Angola and Zambia and the fact that some
studies have been already done on the Zambian side.
1
1.3.
Donors coordination
1.3.1 The Bank has not yet provided support for the transport sector in Angola. The World
Bank financed a program named “Emergency Multi-sector Recovery – Phase2” which
includes rehabilitation of 150 km of trunk roads and 600km of feeder roads. EU financed the
“Feasibility Study Western Part TAH 9 Beira Lobito” including a feasibility study that covers
a 1,161-km road section on Lobito Corridor within Angola and the Democratic Republic of
Congo (DRC). JICA carried out a study to prepare a rehabilitation project in Port of Namibe,
including a preliminary design, implementation plan and cost estimates, based on which a
grant aid for development of a multi-purpose terminal is currently under consideration. Most
of the railway rehabilitation has been funded by China.
1.3.2 Donor activity in Angola has shifted in the last two years to an increased presence in
cross-cutting areas such as environment, decentralization, private sector development, and
regional integration. There is no formal donor coordination, but informal meetings are held
occasionally. A thematic Working Group meets when needed. With the opening of the
Bank’s Country Office in Angola, the Bank aims to play a bigger role in this Working Group.
Table 1.1
Overview of Major Donor Assistance in Angola
Size
Sector or subsector*
Transport
GDP
N/A
Exports
N/A
Labor Force
N/A
Players - Public Annual Expenditure (2008-2011 average)**
Donors
Amount(US$ mil.)
%
EU
64.0
33.3
USAID
44.5
23.1
World Bank
35.8
18.6
Italy
26.2
13.6
Norway
21.9
11.4
Total
192.4
100.0
Level of Donor Coordination
Existence of Thematic Working Groups
Existence of SWAPs or Integrated Sector Approaches
ADB's Involvement in donors coordination***
Y
N
M****
* as most appropriate , ** The figures are for all sectors (the figure for the transport sector is not
available), *** for this sector or sub-sector, **** L: leader, M: member but not leader, none: no
involvement
II
STUDY DESCRIPTION
2.1.
Background
2.1.1 Transport sector in Angola: After 27 years of conflict that ended in 2002, political
stability and peace set the ground for an economic boom in Angola fuelled by increased oil
production. The increasing revenues have enabled Angola to intensively rehabilitate its
transport infrastructure, namely roads, railways, ports and airports up to now. However,
Angola is still facing shortage of transport infrastructure and low service quality despite the
intensive rehabilitation. Thus, it seems to be reaching a turning point from the era of
2
rehabilitation of deteriorated infrastructure into the era of development of infrastructure
required for the country’s further economic growth in future.
2.1.2 Needs of a master plan for the transport sector: The recent rehabilitation of
transport infrastructure has been implemented based on the Public Investment Plan (PIP) with
a list of a number of facilities to be rehabilitated. However, the transport infrastructure
development in Angola from now on will not be the same as the rehabilitation which was to
return the existing infrastructure once deteriorated to its previous condition. It should be well
planned and implemented with a clear strategy, priority and justification based on thorough
surveys and analysis, with which GOA will effectively allocate the state budget, induce the
private sector’s investment, and obtain the development partners’ fund as needed. In addition
to transport infrastructure development, it is required to improve the transport service and its
sustainability by addressing various issues, such as transport safety, road maintenance, the
serious traffic jam in Luanda and so on. One of the major reasons why the transport sector is
still facing a lot of problems despite the country’s considerably high economic indices is
limited capacity of government institutions. For the reasons above, an integrated national
transport sector master plan, built on existing plans and studies, is highly required,
highlighting improvement in the transport infrastructure and services, so that GOA will be
able to timely and properly make decisions and take actions for the transport sector.
2.1.3 Railway link between CFB and Zambia: CFB is a railway connecting Port of
Lobito and a DRC border named Luau. Currently, the section between Lobito and Huambo is
operational, whereas the remaining section is under rehabilitation and will be operational by
the end of 2013. GOA and Government of Zambia (GOZ) intend to establish a direct railway
link between CFB and an existing railway in Zambia, whose length will be roughly 300 km
in Angola and 554 km in Zambia. The railway link, which would boost the growth of Port of
Lobito, facilitate Zambia to export its mineral resources through an alternative route, as well
as facilitate Angola to export its oil products from Lobito to Zambia, is a very important and
urgent issue for Angola in the light of the political commitment where the Lobito Corridor
development has reached an advanced consensus between the two governments. However, no
study has been carried out so far on the Angolan side, whereas in Zambia a concessionaire
has already carried out a pre-feasibility study on some sections within the missing link. In this
situation, GOA is now very keen on a study on the railway link, so as to have a basis for the
GOA’s next actions for development of the railway link, including the private sector
involvement.
2.1.4 It is on this basis that GOA requested the Bank in December 2012 for assistance in
carrying out a study to prepare an updated National Transport Sector Master Plan as well as a
preliminary feasibility study on the railway link between CFB and Zambia.
2.2.
Study objective
The study objective is to provide GOA with an integrated master plan built on
existing plans and studies with a clear strategy, priority and justification in terms of transport
infrastructure development including the Railway Link between CFB and Zambia, so that
GOA can have a clear vision of infrastructure development up to 2025, the target year of the
“Visão 2025”.
3
2.3.
Study components
The study components are summarized below:
Table 2.1
Study Components
No.
Component Name
Estimated
Cost
(UA mil.)
2.14
1
National Transport
Sector Master Plan
Update
2
Pre-F/S on the
Railway Link between
CFB and Zambia
0.52
3
Technical Assistance
0.19
4
Financial Audit
0.03
2.4.
Component Description
 formulate an overall set of strategies and policies for the
nationwide transport network, composed of roads, railways,
inland waterways, ports and airports
 elaborate a nationwide and integrated transport network for
the future, connecting the existing transport infrastructure,
along the strategies and policies mentioned above, and
 identify and select priority projects with justifications
 select an optimum route for a railway link connecting CFB
and Zambia among different options, based on traffic data,
natural, social and economic information, and
environmental and social aspects, as well as economic and
financial analysis of the optimum route
 [Procurement] assist the executing agency in procurement
process for the study
 [Study management] assist the executing agency in
monitoring study activities and reviewing various reports
prepared
 An audit by external independent auditors to express an
opinion on the financial statements provided to the Bank
and provide reasonable assurance that the funds have been
applied for the intended purposes with due attention to
economy and efficiency
Technical solution retained and other alternatives explored
The proposed study will provide GOA with tools for making decisions and taking
actions required for improvement of transport infrastructure and services.
2.5.
Study type
The study is a standalone operation that will be financed by a loan from the ADF,
through the lending facilities of the Bank's windows for performance-based country
allocations (PBA).
2.6.
Study cost and financing arrangements
2.6.1 The estimated cost of the study, net of taxes and customs duty, will amount to UA
3.28 million, of which UA 2.94 million (90% of the study cost) payable in foreign currency
and UA 0.34 million (10% of the study cost) payable in local currency. This cost includes
13.7% provision for price escalation. It was estimated on the basis of the unit prices of similar
studies approved lately by the ADF. The estimated study cost is summarized in Table 2.2.
2.6.2 The study will be financed by the ADF and GOA. ADF financing will not exceed UA
2.90 million. This financing represents 88% of the total cost and will cover 98% of the
foreign currency cost and 3% of the local currency cost. ADF financing will cover the
financial audit and part of the expenditure on the study 1, study 2 and the technical assistance.
GOA will contribute UA 0.38 million to study financing, representing 12% of the total cost
and will cover 2% of the foreign currency cost and 97% of the local currency cost. The
contribution of GOA will cover part of the expenditure on the study 1 and 2 and the technical
assistance.
4
Table 2.2
Study Cost Estimates by Component [amounts in million UA equivalents]
Foreign
Local
Total
Components
Currency
Currency
Costs
Costs
Costs
Study1 - National Transport Sector Master Plan Update
1.91
0.23
2.14
Study2 - Pre-F/S on the Railway Link between CFB
0.46
0.06
0.52
and Zambia
Technical Assistance
0.18
0.01
0.19
Financial audit
0.03
0.00
0.03
Total Base Cost
2.58
0.30
2.88
Price Contingency
0.36
0.04
0.40
Total Study Cost
2.94
0.34
3.28
Note: Exchange rates are provided in the introduction of this report (page (i)).
Table 2.3
Sources of financing [amounts in million UA equivalents]
Foreign
Local
Sources of Financing
Currency
Currency
Total Costs
Costs
Costs
ADF Loan
2.89
0.01
2.90
GOA
0.05
0.33
0.38
Total
2.94
0.34
3.28
% Foreign
89%
88%
95%
100%
90%
90%
90%
% Total
88%
12%
100%
2.6.3 The study cost by category of expenditure and the expenditure schedule are shown in
Table 2.4 and 2.5 below respectively.
Table 2.4
Study cost by category of expenditure [amounts in million UA equivalents]
Foreign
Local
Categories of
Currency
Currency
Total Costs
% Foreign
expenditure
Costs
Costs
Consultancy Services
2.58
0.29
2.87
90%
Goods
0.01
0.01
0%
Total base cost
2.58
0.30
2.88
90%
Price Contingency
0.36
0.04
0.40
90%
Total study cost
2.94
0.34
3.28
90%
Table 2.5
Expenditure schedule by component [amounts in million UA equivalents]
Components
2014
2015
Total
Study
1.33
1.33
2.66
Technical Assistance
0.10
0.09
0.19
Financial Audit
0.01
0.02
0.03
Total base cost
1.44
1.44
2.88
2.7.
Study’s target area and population
Since the study will deal with the whole national transport sector of Angola, the study
area is the entire country and the direct study beneficiaries is the Angolan nation who will
enjoy the transport infrastructure and services to be developed and improved based on the
outcomes of the study.
5
2.8. Participatory process for study identification, design and
implementation
The transport-related private sector was interviewed and their views and opinions
have been incorporated in the study components and the implementation arrangement. The
study will require significant consultation especially about project priority and environmental
and social aspects, through workshops and public consultations with all relevant stakeholders.
The working group to be mentioned in 4.1.2 will be responsible for facilitating all workshops
and public consultations.
2.9.
Bank Group experience, lessons reflected in study design
2.9.1 Some of the lessons learned pointed out in the current CSP were reflected in the study
preparation and design. Regarding the “limited Government interest, capacity and ownership”
mentioned in the CSP, the mission team met high officials of the Ministry of Transport and
the Ministry of Planning, including the ministers, and confirmed that the study was urgent
and of a matter of great interest to GOA.
2.9.2 For the counterpart funds issue, the mission team met the Ministry of Planning and
explained the counterpart fund required for this study. On the other hand, the mission team
confirmed with the Ministry of Transport, the executing agency, that the ministry would take
necessary action to secure the counterpart fund registering under the Public Investment Plan
(PIP).
2.9.3 As for the dissemination of the Bank’s procedures to GOA officials, the Bank will
have to elaborately explain and disseminate the Bank’s procedures to the executing agency,
since the study will be the first intervention of the Bank in the transport sector in Angola.
2.10. Key performance indicators
The key performance indicators and expected outcomes upon study completion are
indicated in the results-based logical framework. The indicators for the impact and outcomes
are: i) the GDP growth rate as a measure of “Socio-economic development, poverty reduction
and regional integration through an improved and sustainable transport system” and ii)
Establishment of the institutional framework, such as an inter-ministerial committee, to
ensure transport infrastructure development based on the National Transport Sector Master
Plan Update and Pre-F/S on the Railway Link between CFB and Zambia, as the capability to
timely and properly make decisions and take actions for the transport sector. These indicators
will be followed and evaluated during the study implementation based on economic reports
and GOA’s documents.
III
STUDY FEASIBILITY
3.1.
Economic and financial performance
Not applicable in case of study in case of study, but economic and financial analysis
will be considered in the Study for National Transport Sector Master Plan Update in
particular the pre-F/S on the railway link between CFB and Zambia.
3.2.
Environmental and Social impacts
Environment
3.2.1 The category of the Bank’s environmental and social assessment procedures is not
applicable for studies.
6
3.2.2 Environmental aspects related to priority projects will be considered in the National
Transport Sector Master Plan Update. During the Pre-F/S on the Railway Link between CFB
and Zambia, environmental aspects will be identified, if any, for each optional route of the
railway link. Also, the Pre-F/S will elaborate Terms of Reference (TOR) for ESIA to be
carried out during the full-scale feasibility study subsequent to the Pre-F/S.
Climate change
3.2.3 National Transport Sector Master Plan Update will refer to how climate change
(mitigation and adaptation) is being and should be addressed in the transport sector. The PreF/S on the Railway Link between CFB and Zambia will identify some components related to
climate change resilience to be addressed in the full-scale feasibility study for the railway link.
Gender / Social / Involuntary resettlement
3.2.4 Gender/social/resettlement issues related to priority projects will be considered in the
National Transport Sector Master Plan Update. During the Pre-F/S on the Railway Link
between CFB and Zambia, gender/social/resettlement issues will be identified, if any, for
each optional route of the railway link. Also, the Pre-F/S will elaborate TOR for ESIA and
RAP to be carried out during the full-scale feasibility study subsequent to the Pre-F/S.
IV
IMPLEMENTATION
4.1.
Implementation arrangements
Study implementation
4.1.1 Ministry of Transport will be the executing agency for the study. Gabinete de Estudos,
Planeamento e Estatistica (GEPE), Ministry of Transport, will be the focal point liaising with
the consultants and the Bank. A Study Coordinator with the relevant experience who is
responsible for the day-to-day management of the studies shall be nominated. Technical
assistance by a consultant to be hired under ADF, who assists the executing agency in
monitoring study activities and reviewing various reports prepared, will be provided to
address the capacity constraint. To address the capacity constraint in the area of procurement
management a procurement specialist would be recruited under ADF. The Ministry of
Transport shall designate a suitably qualified officer to handle financial management aspects
of the study.
4.1.2 A working group comprising various authorities and entities involved in road, rail,
inland waterways, maritime and air transport sectors including the private sector, will be
established. The working group will be responsible for providing technical guidance on the
study, monitoring the implementation of the study, reviewing the consultant’s reports and
facilitating the consultant’s activities. The GEPE will be the secretariat for the study, and will
lead the working group.
Procurement
4.1.3 All procurement of goods and works and acquisition of consulting services financed by
the Bank will be in accordance with the Bank's Rules and Procedure for Procurement of Goods
and Works(May 2008 edition, revised July 2012) and Rules and Procedure for the Use of
Consultants (May 2008 edition, revised July 2012), using the relevant Bank Standard Bidding
Documents. The Ministry of Transport, through GEPE as focal point, will be responsible for
the procurement of goods and consulting services. A detailed procurement arrangement is
shown in Technical Annex IV.
7
Disbursement
4.1.4 The Direct Payment method shall be used to disburse funds, i.e, the consultancy services
for the study, the technical assistance consultant, the external auditors and suppliers of identified
IT equipment (computers and printers) shall be paid directly by ADF upon requisite of all
necessary documentation.
Financial audit
4.1.5 Study financial statements shall be prepared and audited on annual basis. The audit
shall be conducted in accordance with Bank approved auditor TOR, and the audited study
financial statements shall be submitted within 6 months after year end.
4.2.
Monitoring
4.2.1 Monitoring will comprise technical monitoring conducted by GEPE and the working
group mentioned in 4.1.2, supplemented with an individual consultant (technical assistance
for study management and monitoring) and supervision missions from the Bank. The
timeframe is as shown below.
Q3-2013
Study launch
Monitoring Process /
Feedback loop
Launching mission
Q1/Q3-2014
Q1-2015
Study works
Supervision missions
Q3-2015
Study completion
Project Completion Report
Timeframe
4.3.
Milestone
Governance
In the current CSP, “civil society access to information on public affairs” is raised as
one of the governance issues, although the CSP recognizes improvements in it. This study
will further improve the civil society access to information on public affairs by improving the
transport statistics.
4.4.
Sustainability
4.4.1 It is recommended that the Bank maintain a dialogue with GOA concerning the
establishment of the institutional framework such as an inter-ministerial committee, as well
as endorsement of the outputs of National Transport Sector Master Plan Update as GOA’s
official master plan, to ensure transport infrastructure development based on this study.
4.4.2 It is recommended that the sector department of the Bank review the outputs of the
Pre-F/S on the Railway Link between CFB and Zambia upon its completion, and prepare as
appropriate for the Bank’s funding for a full-scale feasibility study and detailed engineering
design on the railway link, so that GOA will be able to proceed to the next step by fully
making use of the results of this study.
4.5.
Risk management
4.5.1 There is a risk of GOA not committing adequate budget to develop and maintain the
transport infrastructure as per the recommendations of the studies. As mitigation measures,
GOA is expected to continue to give the transport sector high priority, as well as seek funds
from development partners as necessary.
8
4.5.2 There is a risk of GOA underutilizing the outputs of the studies although GOA has
demonstrated its commitment to develop the transport sector. As mitigation measures, the
Bank together with other development partners will maintain regular dialogue with GOA and
encourage to set up an institutional framework within the government to be responsible for
the implementation of the study output. In addition, the participation of stakeholders in the
Study for National Transport Sector Master Plan Update will ensure the ownership and
mitigate this risk.
4.5.3 There is a risk of delays in the procurement and implementation of the studies, due to
limited capacity of executing agency and poorly qualified consultants. As mitigation
measures, technical assistance is included as a component. Also, GOA needs to prepare
precise TOR, carefully evaluate the technical proposals by candidate consultants, and
efficiently monitor the study progress, supported by the Bank as needed.
4.6.
Knowledge building
The Study for National Transport Sector Master Plan Update will unveil the current
situation of the transport sector in Angola which is not well known so far, despite its
importance in the regional context. Although the Bank has not undertaken sector intervention
in Angola, the study, as an upstream activity, is expected to identify future Bank’s
intervention, such as financing for priority projects to be identified in the National Transport
Sector Master Plan Update as well as financing for the full-scale feasibility study and detailed
engineering design on the Railway Link between CFB and Zambia whose TOR shall be
elaborated by the Pre-F/S.
V
LEGAL INSTRUMENTS AND AUTHORITY
5.1.
Legal instrument
The project will be financed pursuant to an ADF loan agreement between the
Republic of Angola and the ADF.
5.2.
Conditions associated with Bank’s intervention
Conditions Precedent to the Entry into Force of the Loan Agreement
5.2.1 The Loan Agreement will enter into force upon fulfillment by the Borrower of the
provisions of Section 12.01 of the General Conditions.
Conditions Precedent to First Disbursement of the Loan
5.2.2 The obligation of the Bank to make the first disbursement of the Loan shall be
conditional upon the entry into force of Loan Agreement and the fulfillment by the Borrower,
in form and substance satisfactory to the Fund, of the following conditions:
(i)
Provide evidence of the appointment of the study coordinator, whose qualifications
and experience shall be acceptable to the Fund; and
(ii)
5.3.
Provide evidence of the designation of a suitable officer to handle financial
reporting, whose qualifications and experience shall be acceptable to the Fund.
Compliance with Bank Policies
This study complies with all applicable Bank policies.
9
VI
RECOMMENDATION
This study is to facilitate the Government of Angola’s sound administration, decisionmaking and timely action for development of transport infrastructure that is crucial for further
economic growth of the country which is now transitioning from the infrastructure
rehabilitation phase to the new development phase. Moreover, this study, which will be an
entry point for the Bank’s intervention in the transport sector in Angola, may identify
transport infrastructure projects for further Bank’s intervention.
Management therefore recommends that the Board of Directors approve the proposed
ADF loan of UA 2.90 million to the Republic of Angola for the purposes and subject to the
conditions stipulated in this report.
10
Appendix I. Country’s comparative socio-economic indicators
Develo- Developing
ped
Countries Countries
2011
2012
Life Expectancy at Birth
(years)
71
61
51
41
31
21
11
1
2012
2011
2012
Angola
2011
106.6
102.8
101.5
101.4
80.0
98.3
98.7
97.9
5.2
2011
103.1
105.1
66.3
65.0
58.6
80.8
86.4
75.5
3.9
Africa
2010
101.9
98.4
42.3
38.5
43.2
67.0
75.8
58.4
5.3
2010
124.5
111.6
31.3
25.5
24.5
70.1
82.7
58.1
3.5
2010-2012
2010-2012
2010-2012
2010-2012
1998-2011
2010
2010
2010
2008-2010
2010
Education Indicators
Gross Enrolment Ratio (%)
Primary School
- Total
Primary School
- Female
Secondary School - Total
Secondary School - Female
Primary School Female Teaching Staff (% of Total)
Adult literacy Rate - Total (%)
Adult literacy Rate - Male (%)
Adult literacy Rate - Female (%)
Percentage of GDP Spent on Education
2009
276.2
730.7
...
99.5
100.0
99.9
0.4
14.0
95.4
93.0
1.7
3 285
8.2
Angola
2009
112.2
187.6
65.4
86.4
80.0
56.2
0.9
146.0
83.9
83.7
17.4
2 675
2.9
2009
49.2
134.7
53.7
67.3
65.2
39.8
4.6
234.6
81.6
76.5
19.8
2 481
5.9
2008
8.0
135.0
47.3
51.0
24.0
58.0
2.1
310.0
88.0
88.0
15.6
2 079
2.9
4.0
3.5
3.0
2.5
2.0
1.5
1.0
0.5
0.0
2008
Health & Nutrition Indicators
Phy sicians (per 100,000 people)
2004-2010
Nurses (per 100,000 people)*
2004-2009
Births attended by Trained Health Personnel (%)
2007-2010
Access to Safe Water (% of Population)
2010
Access to Health Serv ices (% of Population)
2000
Access to Sanitation (% of Population)
2010
Percent. of Adults (aged 15-49) Liv ing w ith HIV/AIDS
2011
Incidence of Tuberculosis (per 100,000)
2011
Child Immunization Against Tuberculosis (%)
2011
Child Immunization Against Measles (%)
2011
Underw eight Children (% of children under 5 y ears) 2007-2011
Daily Calorie Supply per Capita
2009
Public Ex penditure on Health (as % of GDP)
2010
Population Growth Rate (%)
2008
0.3
0.7
16.6
16.5
49.3
94.7
45.5
77.9
81.2
11.4
10.1
6.0
7.8
1.7
13.7
71.4
2007
1.3
2.3
28.5
6.0
52.5
103.4
53.2
67.3
69.2
20.9
7.8
46.4
66.7
2.6
230.0
62.4
2007
2.3
3.4
40.0
3.6
77.3
100.0
49.8
58.1
59.1
33.3
10.9
71.4
111.3
4.2
417.8
31.6
Africa
2007
2.7
4.1
45.9
2.5
93.9
98.2
23.0
51.5
53.0
40.2
13.7
96.8
156.6
5.2
450.0
14.4
2006
2012
2012
2012
2012
2012
2012
2012
2012
2012
2012
2012
2012
2012
2012
2010
2012
Angola
2006
Demographic Indicators
Population Grow th Rate - Total (%)
Population Grow th Rate - Urban (%)
Population < 15 y ears (%)
Population >= 65 y ears (%)
Dependency Ratio (%)
Sex Ratio (per 100 female)
Female Population 15-49 y ears (% of total population)
Life Ex pectancy at Birth - Total (y ears)
Life Ex pectancy at Birth - Female (y ears)
Crude Birth Rate (per 1,000)
Crude Death Rate (per 1,000)
Infant Mortality Rate (per 1,000)
Child Mortality Rate (per 1,000)
Total Fertility Rate (per w oman)
Maternal Mortality Rate (per 100,000)
Women Using Contraception (%)
GNI Per Capita US $
4500
4000
3500
3000
2500
2000
1500
1000
500
0
2006
35,811
1,244.6
75.7
23.4
38 657
71.7
43.9
0.911
...
...
2005
98,458
5,807.6
46.0
70.0
3 304
68.7
39.1
0.694
...
22.4
2005
30,323
1,070.1
40.8
34.5
1 609
37.8
42.5
0.502
...
40.0
2004
1,247
20.2
60.2
15.7
4 060
36.6
45.8
0.439
148
54.3
2005
Basic Indicators
Area ( '000 Km²)
2011
Total Population (millions)
2012
Urban Population (% of Total)
2012
Population Density (per Km²)
2012
GNI per Capita (US $)
2011
Labor Force Participation - Total (%)
2012
Labor Force Participation - Female (%)
2012
Gender -Related Dev elopment Index Value
2005-2011
Human Dev elop. Index (Rank among 186 countries)
2012
Popul. Liv ing Below $ 1.25 a Day (% of Population) 2000-2011
2004
Africa
2004
Angola
2003
Year
Africa
Infant Mortality Rate
( Per 1000 )
120
100
80
60
40
20
0
last update :
2010
I
Angola
2009
Sources : AfDB Statistics Department Databases; World Bank: World Development Indicators;
UNAIDS; UNSD; WHO, UNICEF, WRI, UNDP; Country Reports.
Note : n.a. : Not Applicable ; … : Data Not Available.
10.8
-0.2
40.4
11.4
2008
10.7
0.4
28.7
3.1
2007
7.6
0.6
23.0
1.2
2006
3.3
0.2
46.8
1.4
2005
2011
2000-2009
2011
2009
2004
Environm ental Indicators
Land Use (Arable Land as % of Total Land Area)
Annual Rate of Deforestation (%)
Forest (As % of Land Area)
Per Capita CO2 Emissions (metric tons)
Africa
May 2013
Appendix II. Table of ADB’s portfolio in the country
On-Going Portfolio In Angola (UA millions)
EFFECTIVE
DATE
CLOSING
DATE
TOTAL
COST
TOTAL
DISBU
RSED
%
DISBUR
SEMEN
T
PROJECT
SECTOR
APPROVAL
DATE
Bom Jesus Calenga Rural
Development Project
24/11/2005
14/09/2006
31/12/2012
17.20
7.8
45.66%
P-AO-A00-001
Agriculture
and Rural
Development
Environmental Sector
Support Project
Environment
11/03/2009
17/12/2009
31/12/2015
12.00
2.2
18.46%
Finance
14/11/2007
04/09/2008
31/12/2012
5.90
0.4
7.81%
Water and
Sanitation
28/11/2007
04/04/2009
30/06/2013
12.00
0.7
6.10%
Governance
23/02/2011
May 2011
30/07/2013
5.17
0.2
4.17%
52.27
11.04
16.44%
P-AO-CZO-001
Financial Support
Management Project
P-AO-KFO-002
Sumbe Water Supply
Sanitation And
Institutional Support
Project
P-AO-E00-003
Institutional Capacity
Building Poverty
Reduction Project
GRAND TOTAL COMMITMENT
II
Appendix III. Key related projects financed by the Bank and other
development partners in the country
(1) Study on Urgent Rehabilitation Program of Ports: JICA (2005 - 2006)
A study team conducted surveys and compiled a report, which proposed a short term port
rehabilitation plan for 2010, an urgent rehabilitation program of port facilities, and an
action program for the improvement of port management and operation. The study report
concluded with a variety of recommendations such as: (a) rehabilitation and
modernization of ports, (b) strengthening port administration, management and operation,
(c) future development of Port of Luanda, and (d) preparation of Master Plan of Angolan
Ports.
(2) Grant Aid for Urgent Rehabilitation of Ports in Angola: Japan (2008-2010)
Development of a multi-purpose terminal as the urgent rehabilitation program in Port of
Namibe based on the above study.
(3) Angola Emergency Multi-sector Recovery – Phase 2 : The World Bank
(Effective in 2008 – Closing in 2013)
A program to assist the government to: (a) facilitate agricultural marketing in specific
areas with high agricultural potential that have been affected by the conflict, (b)
reconstruct and rehabilitate critical infrastructure, and (c) strengthen capacity of
participating ministries and agencies for improved governance and transparency and of
local governments for future decentralization. The program includes rehabilitation of
150km of trunk roads and 600km of feeder roads, and Sector Strategy (Water, Power and
Transport) to be produced by the ministries involved.
(4) Preparatory Study on Namibe Port Rehabilitation: JICA (2010 –2011)
A study to prepare a rehabilitation project in Port of Namibe, including a preliminary
design, implementation plan and cost estimates. A grant aid for development of a multipurpose terminal is under consideration.
(5) Feasibility Study Western Part TAH 9 Beira Lobito: EU (2011 –2012)
This study is composed of (a) feasibility study of the selected road sections including
comprehensive environmental and social impact report, (b) recommendation for trade and
transport facilitation measures for the corridor, (c) recommendation for program to
implement regionally approved standards, policy and financing system of road
maintenance in the region and for vehicle and axle load regulations and management, (d)
development of a proper structured infrastructure database for the SADC region. The
feasibility study covers the road section Kuito – Luena – Luau – Angola/DRC border –
Mutshatsha – Kolwezi (1,161 km) .
III
Appendix IV. Map of the Study Area
CFB
Source: Country Report – Angola, March 2012, Economic Intelligence Unit
IV
Railway Link