PROJECT INFORMATION DOCUMENT (PID)
CONCEPT STAGE
Report No.:AB6202
(The report # is automatically generated by IDU and should not be changed)
Project Name
Region
Country
Sector
Lending Instrument
Project ID
Parent Project ID
Borrower(s)
Implementing Agency
Environmental Screening
Category
Date PID Prepared
Estimated Date of Appraisal
Completion
Estimated Date of Board
Approval
Concept Review Decision
I.
Timor-Leste Road Climate Resilience Project
East Asia and Pacific
Timor-Leste
Roads and Highways (100%)
Specific Investment Loan
P125032
Government of Timor-Leste
Ministry of Infrastructure
[ ]A [ x ]B [ ]C [ ]FI [ ]TBD (to be determined)
December 21, 2010
May 17, 2011
Following the review of the concept, the decision was taken
to proceed with the preparation of the operation.
Introduction and Context
Country Context
1.
Timor-Leste is the eastern half of the island of Timor, the nearby islands of Atauro and
Jaco, and Oecussi, an exclave on the northwestern side of the island, within Indonesian West
Timor. It is a very mountainous country, dominated by Mount Ramelau, which bisects the island
from east to west. About 44 percent of the Timor‐Leste’s total land area lies between 100 and
500 meters in elevation, and 35 percent above 1,000 meters. The coastal zones in many parts of
the country consist of narrow steep hillsides. One of the poorest countries in the world, TimorLeste has basic income, health, and literacy levels similar to those of countries in sub-Saharan
Africa. Unemployment and underemployment combined are estimated to be as high as 70%.
Around 41 percent of the country's population lives below the poverty line.
2.
The UN Integrated Mission has worked with the Government and development partners
to tackle the security and stability issues. It has adopted a medium-term strategy with four
priority areas: (i) security and stability, now and in the future; (ii) the rule of law, justice, and
human rights; (iii) a culture of democratic governance and dialogue; and (iv) socio-economic
development. Supported by a number of international donors, the economy is growing fast.
3.
Oil and gas revenues are critical to the country’s socioeconomic development. The only
active field at the moment is located offshore in an area shared by Timor-Leste and Australia—
called the ‘Joint Petroleum Development Area’. The Government set up a special Petroleum
Fund in 2005 to facilitate the sustainable use of oil revenues. In 2010 the Petroleum Fund assets
reached nearly $7 billion. Coffee accounts for over 90% of Timor-Leste non-oil and gas exports.
4.
The economy is dependent on government spending (financed by petroleum revenues)
and assistance from international donors. Private sector development has lagged due to human
capital shortages and a weak business environment.
Sectoral and Institutional Context
5.
Roads are vital to the economy, carrying some 70% of freight and 90% of passengers.
The main network corridor runs along the northern fringe of the country from the Indonesian
border west of the capital Dili eastward to the second largest city, Baucau and then beyond to
Com which is seen as a prime future tourism destination. For the rest of the country, the network
consists of five north south connectors linking the northern trunk road across the mountainous
spine to the flatter plain in the south and an east west spine along the southern coastal plain.
6.
According to a road condition survey in 2009, the national road network has almost
entirely deteriorated and is no longer maintainable. This has resulted in increased isolation of
communities, higher vehicle operating and freight costs, and longer journey times. This has
arisen in a large measure due to underinvestment in maintenance. The annual maintenance
expenditure for the whole core road network (about 1,600 km) in its present condition is
estimated at $25 million, compared with an allocation of only about US$ 3.7 m in 2009 for the
maintenance of all national, district, urban, and rural roads.
7.
Many roads are often impassable during the rainy season due to landslides and road
failure. Often, the roads were not properly designed, lack sufficient drainage capacity, and are
often structurally unsound. This has been exacerbated by irregular and/or poor quality
maintenance. Due to the steep relief, ground conditions and local climate, slope instability is a
major problem and often results in significant damage to the road network. It also poses
considerable risk to road users.
8.
According to an assessment of the potential impact of climate change1, the mean rainfall
in Timor-Leste will increase in the future with fewer extreme rainfall events, but of higher
intensity. This may lead to an increase in the number of slope instability events and/or their
magnitude, and will place further demands on the existing poor road infrastructure.
9.
The Government has limited capacity to manage the road network. The Ministry of
Infrastructure (MOI) is responsible for planning, developing, and maintaining roads. The MOI’s
Directorate of Roads, Bridges, and Flood Control (DRBFC) has only 12 engineers—seven at the
headquarters in Dili and five in regional offices. Each regional engineer is assisted by a
supervisor and three assistant supervisors. DRBFC’s shortage of capable staff, assets and funding
in the districts severely limits its capacity to manage and maintain the road infrastructure.
Cardno Acil (2009). Preparing the Road Network Development Project – TA 7100. Volume III: Climate Change
Assessment. Report to the Ministry of Infrastructure.
1
10.
A number of donors are active in the sector—the Asian Development Bank (ADB)
US$46 m, European Union (EU) US$50 m, Japan International Cooperation Agency (JICA)
US$34.6 m and GTZ. Donors are rehabilitating national, district and rural roads, often with a
focus on labor based activities for employment generation. In 2009 the ADB financed a ‘Core
Network Development Program’ (see map) which identified 1,000 km of high-priority national
and district roads that were technically and economically justified for improvement. The
program aligns closely with the key goals for the road sector presented in the summary of the
Strategic Development Plan 2010-2030, released by the Government to donors in April 2010.
11.
On the basis of this core network development program, the ADB are financing
investments along the north of the country to the west of Dili, and JICA are proposing
investments east from Dili to Baucau. The proposed World Bank financed project will invest in
the key north-south links.
Relationship to CAS
12.
The Timor-Leste Interim Strategy Note (August 12, 2009) notes the importance of “steps
intended to secure longer-term economic growth and development.” Human development
remains a challenge, especially in rural areas. Seventy-four percent of Timorese live in rural
areas, as do three-quarters of the country’s poor. The proposed project would be one such critical
step as it improves road infrastructure to the rural, mountainous portions of the country. Climate
proofing roads will ensure that the roads are not closed for extended periods due to flooding and
other natural disasters, thereby improving rural access and socioeconomic development.
II.
Proposed Development Objective(s)
Proposed PDO
13.
The proposed development objective is: “the project will deliver climate resilient road
infrastructure to the beneficiary communities on key road links and facilitate emergency
responses to tackle natural disasters”.
Key Results
14.
Monitoring Indicators: It is proposed that the success of the project will be monitored
through three indicators: (i) percentage of targeted road network with climate resilient
infrastructure; (ii) number of days roads closed on target network due to natural disasters; and,
(iii) MOI with functional planning and response systems for natural disasters.
15.
Proposed intermediate output indicators, for each target road corridor, include: (i) number
of kilometers of improved drainage capacity; (ii) number of retaining structures (gabions,
masonry walls, etc.) constructed; (iii) area (m2) of bio-engineering solutions implemented and in
working condition; and, (iv) length of pavements rehabilitated.
16.
Beneficiaries: The project will benefit residents of rural areas by reducing road closures
due to flooding or heavy rainfall. These closures directly affect incomes and access to health and
education facilities thereby hampering the overall socioeconomic development. With improved
access to local and regional markets and towns, farmers will be able to expand and diversify their
agricultural production. The inadequacy of road infrastructure in the western mountainous
areas—where the first year work program is to be done—has already adversely affected coffee
production and rural development.
III.
Preliminary Description
Component A: Climate Resilient Road Infrastructure (US$ 18.5 m): This component will
invest in the key road infrastructure to improve their climate resilience. The objective is to
reduce the impact of the forecasted increase in the volume and intensity of rainfall on the road
infrastructure in mountainous areas. The project will invest in selected corridors based on the
Government’s Strategic Development Plan and the Core Network Development Plan. The
proposed initial investment program is on the road corridor south from Dili to Ainaro2. Future
investment activities will be on other corridors from the core network.
The project will: (i) increase the longitudinal and transverse drainage to accommodate the
forecast future rainfall volumes and intensities; (ii) provide new or increased capacity culverts;
(iii) construct new, or reinforce existing, slope stabilization structures such as gabions; (iv) use
bio-engineering techniques to improve slope stability and decrease runoff; and, (v) repair the
pavement surfaces where they have been damaged. Where practical, the project will use labor
based construction approaches to maximize the potential for job creation. This component
includes a design and supervision consultancy for the civil works, which will also identify the
future investment priorities. It is anticipated that the works on each corridor will take at least two
years to complete to allow time for the bio-engineering to become established and functional,
and to ensure adequacy of other remedial measures.
Component B: Emergency Planning and Response Systems (US$ 1 m): To help mitigate the
impact of any disasters to the road network, an emergency response plan would be developed
that considers: (i) currently available resources and existing plans the MOI has to support
affected communities; (ii) the resources and actions the MOI needs to repair a damaged road
(even if temporarily) as soon as possible after an event; (iii) the actions the community can take
maintain and protect the road as well as repair it in the event of a disaster (community response
plan); and, (iv) how the MOI is integrated into the national disaster risk management framework
and its business continuity arrangements. One consideration will be the establishment of small
local enterprises with performance based contracts to do routine maintenance on the road
network with an emphasis on drainage.
2
This road section was selected because some sections were improved in 2006 with finance by JICA. While the
pavement along these sections is still generally in very good condition, areas which did not receive drainage
improvements or slope stabilization are in risk of being lost. The proposed project will further protect the previous
investments, as well as upgrade sections of the road not previously improved.
Component C: Project Support and Training (US$ 0.5 m): (i) Support to the Project
Management Unit (PMU)3; and, (ii) training program for MOI staff and contractors as necessary.
Tentative Project cost and financing: The estimated cost of the project is US$ 20 m. Financing
would be provided by the World Bank through an IDA Grant.
IV.
Safeguard Policies that might apply
Safeguard Policies Triggered by the Project
Environmental Assessment (OP/BP 4.01)
Natural Habitats (OP/BP 4.04)
Pest Management (OP 4.09)
Physical Cultural Resources (OP/BP 4.11)
Involuntary Resettlement (OP/BP 4.12)
Indigenous Peoples ( OP/BP 4.10)
Forests (OP/BP 4.36)
Safety of Dams (OP/BP 4.37)
Projects in Disputed Areas (OP/BP 7.60)*
Projects on International Waterways (OP/BP 7.50)
Yes
X
No
TBD
X
X
X
X
X
X
X
X
X
V.
Tentative financing
Source:
Borrower/Recipient
IBRD
IDA
Others (specify)
($m.)
0
0
20.0
Total
20.0
VI.
Contact point
World Bank
Contact:
Christopher R. Bennett
Title:
Senior Transport Specialist
Tel:
61-2-9235-6592
Email:
cbennett2@worldbank.org
Borrower/Client/Recipient
Contact:
H.E. Emilia Pires
Title: Minister of Finance
Tel: +670 7230017
Email: pires.emilia@gmail.com
The project will use the existing PMU established by the ADB for their ‘Road Network Development Project’
(Project 43322). The PMU will be strengthened with appropriate financial management, procurement and other staff
to meet the World Bank financed project’s requirements.
3
*
By supporting the proposed project, the Bank does not intend to prejudice the final determination of the parties' claims on the
disputed areas
Implementing Agencies
Contact: Jose L.C.C. Pereira Mestre
Title: Director General, Directorate of Corporate Services, Ministry of Infrastructure
Tel: +670 7236746
Email: jose.mstr@gmail.com
VII. For more information contact:
The InfoShop
The World Bank
1818 H Street, NW
Washington, D.C. 20433
Telephone: (202) 458-4500
Fax: (202) 522-1500
Web: http://www.worldbank.org/infoshop