AFRICAN DEVELOPMENT BANK GROUP

DEMOCRATIC REPUBLIC OF CONGO

PROJECT TO DEVELOP THE LOVUA-TSHIKAPA SECTION OF

THE BATSHAMBA-TSHIKAPA ROAD

OITC

November 2013
Translated document
 TABLE OF CONTENTS

I – STRATEGIC THRUST AND RATIONALE .................................................................................. 1

1.1. Project Linkages with the Country Strategy and Objectives ....................................... 1
1.2. Rationale for the Bank's Involvement.......................................................................... 1
1.3. Aid Coordination ......................................................................................................... 2
II – PROJECT DESCRIPTION ............................................................................................... 3
2.1. Project Components ..................................................................................................... 3
2.2. Technical Options Adopted and Alternatives Explored ............................................ 4
2.3. Project Type ................................................................................................................. 4
2.4. Project Costs and Financing Arrangements ................................................................. 4
2.5 Project Target Area and Beneficiaries ......................................................................... 6
2.6. Participatory Approach in Project Identification, Design and Implementation .......... 7
2.7 Bank Group Experience and Lessons Reflected in Project Design ............................. 7
2.8. Key Performance Indicators ........................................................................................ 8
III – PROJECT FEASIBILITY ...................................................................................................... 8
3.1. Economic and Financial Performance ......................................................................... 8
3.2. Environment and Social Impact................................................................................... 9
IV –IMPLEMENTATION ............................................................................................................ 12
4.1. Implementation Arrangements .................................................................................. 12
4.2. Monitoring ................................................................................................................. 15
4.3. Governance ................................................................................................................ 15
4.4. Sustainability ............................................................................................................. 16
4.5. Risk Management ...................................................................................................... 17
4.6. Knowledge Building .................................................................................................. 17
V – LEGAL FRAMEWORK ........................................................................................................ 17
5.1. Legal Instrument ........................................................................................................ 17
5.2. Conditions Associated with Bank Intervention ......................................................... 17
5.3. Compliance with Bank Policy ................................................................................... 17
VI – RECOMMENDATION ......................................................................................................... 18
ANNEX I. COUNTRY'S COMPARATIVE SOCIO-ECONOMIC INDICATORS
ANNEX II. TABLE OF ADB PORTFOLIO IN THE COUNTRY (UPDATED ON 23 SEPTEMBER 2013)
ANNEX III. MAJOR RELATED PROJECTS FINANCED BY THE BANK AND OTHER
DEVELOPMENT PARTNERS IN THE COUNTRY

ANNEX IV. MAP OF PROJECT AREA

 Currency Equivalents
[September 2013]

UA 1 = USD 1.51528
UA 1 = EUR 1.14490
UA 1 = GBP 0.977536
UA 1 = CDF 1,388.12

Fiscal Year
1 January - 31 December
Weights and Measures
1 metric ton = 2204 pounds
1 kilogramme (kg) = 2.200 pounds
1 metre (m) = 3.28 feet
1 millimetre (mm) = 0.03937 inch
1 kilometre (Km) = 0.62 mile
1 hectare (ha) = 2.471 acres
Acronyms and Abbreviations
AAP Advance Action on Procurement
ADB African Development Bank
ADF African Development Fund
AFD French Government Development Agency
CDF Congolese Franc
CSP Country Strategy Paper
DFID Department for International Development (UK)
DRC Democratic Republic of Congo
DVDA Directorate of Farm Roads
EA Executing Agency
EDF European Development Fund
ERR Economic Rate of Return
ESIA Environmental and Social Impact Assessment
ESMP Environmental and Social Management Plan
EU European Union
EUR Euro
FONER National Road Maintenance Fund
GCP Partners Coordination Group
GPRSP Growth and Poverty Reduction Strategy Paper
GTIT Transport Infrastructure Thematic Group
HDM Highway Development and Management Model
HIV/AIDS Human Immunodeficiency Virus – Acquired Immunodeficiency Syndrome
HTTD Net of Taxes and Customs Duty
IU Infrastructure Unit
JICA Japanese International Cooperation Agency
Ministry of Regional Development, City Planning, Housing, Infrastructure, Public Works
MATUHITPR and Reconstruction
MST Sexually Transmissible Disease
NIS National Institute of Statistics
PRSP Poverty Reduction Strategy Paper
NPV Net Present Value

i
NR 1 National Road 1
OR Roads Authority (Office des Routes)
OHADA Organization for the Harmonization of Business Law in Africa
PCR Project Completion Report
PDNT National Transport Master Plan
PP Procurement Plan
PPP Public-Private Partnership
PA Project Area
RAI Rural Access Index
RISP Regional Integration Strategy Paper
RP Resettlement Plan
TFP Technical and Financial Partner
UA Unit of Account
UAM Unit of Account Million
USD United States Dollar
USDM US Dollar Million
WB World Bank

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 Project Brief
Client
BORROWER : Democratic Republic of Congo

EXECUTING AGENCY : Infrastructure Unit (IU) of the Ministry of Regional

Development, City Planning, Housing, Infrastructure,
Public Works and Reconstruction (MATUHITPR)
Financing Plan
Source Amount (UA) Instrument
ADF (derived from 660,000 Loan
cancellation)
ADF (PBA, including UA 13,260,000 Grant
280,000 derived from
cancellation)
FSF 55,560,000 Grant
TOTAL COST 69,480,000

Key AfDB financial information

Grant Currency Unit of Account

Type of Interest Not applicable
Interest Rate Margin Not applicable
Service charge 0.75% of the disbursed
loan amount and not yet
refunded
Commitment fee 0.5% of the undisbursed
loan amount 120 days
following signing of
loan agreement
Other Costs Not applicable
Maturity 50 years
Grace period 10 years
NPV (baseline scenario) EUR 206.20 million
ERR (baseline scenario) 19.90%

Duration – Key Milestones (expected)

Concept Note Approval August 2013
Project Approval December 2013
Effectiveness January 2013
Completion December 2018
Last Disbursement December 2019
Last reimbursement November 2063

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 Project Summary
Project Overview

1. The National Road 1 (NR1) (Banana-Matadi–Kinshasa-Lubumbashi-Kasumbalesa-

Sakania Road) (3,130 km) is the main backbone of the road transport system in the
Democratic Republic of Congo (DRC). It links Matadi to the West, but also Lubumbashi in
Katanga Province to the East of DRC across various towns. The NR1 passes through
Kinshasa, Kenge and Kikwit in Bandundu Province, Tshikapa and Kananga in West Kasaï
Province and Mbuji-Mayi in East Kasaï Province. Through this road, it is possible from
Mbuji-Mayi to get to Mwene Ditu (major railway station) and connect to NR2 leading to
Bukavu (South-Kivu) and Goma (North-Kivu). Rehabilitation works on NR1 are in line with
Government’s strategy aimed at the gradual development and paving of the above structuring
sections.

2. This project relates to the development of the remaining 56-km portion of the
Batshamba-Tshikapa road between Lovua and Tshikapa on the NR1, including the
construction of a new bridge over the Kasaï River which crosses Tshikapa town. It
supplements earlier Bank interventions on the same road: (i) between Nsele-Lufimi (93+850
km) and Kwango-Kenge (70+34 km) through a UA 52.45 million grant and completed in
2011; and (ii) between Loange and Lovua (63 km) financed by an ADF grant of UA 53.55
million approved in 2012. The project road extends 433 km towards Mbuji-Mayi beyond
Tshikapa. Detailed engineering design studies on this section were also financed by the Bank.
The Bank’s involvement in this project (Lovua bridge -Tshikapa) – co-financed with DFID –
will help to strengthen its previous and ongoing operations on the NR1 and extend its support
to other key provinces in the country (Bandundu, West and East Kasaï).

3. The project, to be implemented from December 2013 to December 2018, will be

jointly co-financed by DFID for UA 55.56 million and ADF, as lead donor, for UA 13.92
million. The contributions of DFID and ADF represent 79.97% and 20.03% respectively of
the project’s total cost estimated at UA 69.48 million. DFID resources will be managed and
disbursed through the Fragile States Facility (FSF), pursuant to Bank Rules and Procedures.
Both institutions will sign a specific agreement defining the terms of the co-financing.

4. The project will help to open up Bandundu and West Kasaï Provinces, by linking
them to the Capital Province of Kinshasa. Its expected economic benefits include direct
benefits from transport activities (lower vehicle operating expenses and shorter travel time)
and indirect benefits linked to various social and economic activities (job creation, higher
agricultural production, development of marketing activities, better access of the population
to basic services). In particular, the project will halt the massive exodus of youths towards
mining operations – prevalent in the project area in permanently insecure conditions– and
maintain them in their homelands to engage in profitable agricultural activities. As such, it
will ensure their autonomy and contribute to poverty reduction, mitigation of vulnerability to
external shocks (diseases, rise in the prices of essential products, climate change and
instability of seasons, etc.) and inclusive growth in the target area.

Needs Assessment

5. The project builds on the interventions of the Bank and other donors, including the
European Union, the World Bank and DFID aimed at the gradual improvement of NR1.
Since resources were already mobilized to develop road sections from Batshamba to Loange
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(114 km) and from Loange to Lovua (63 km), this project concerns the remaining section to
be developed between Lovua and Tshikapa (56 km), including the construction of the bridge
over River Kasaï. This section is in a very bad state of repair and needs urgent rehabilitation
like the two upstream sections described earlier. As such, the project is consistent with
Government’s strategy to gradually rehabilitate the NR1. The strategy underpinning the
Bank’s ongoing intervention in the DRC focuses on the Centre Zone defined around the
Ilebo-Tshikapa-Kananga-Mbuji-Mayi road, in which the project target area is located.

Bank’s Value Added

6. The experience acquired by the Bank during implementation of the Nsele-Lufimi

and Kwango-Kenge Roads Project, and during the project study of the Loange-Lovua section
along NR1 was leveraged in this project design at two levels: (i) technical options for
roadway development took into account the challenges of availability and quality of
materials, and (ii) measures and actions related to environmental protection, poverty
reduction within the PA and impact monitoring (beneficiary assessment of project impacts)
were incorporated in the components adopted.

Knowledge Management

7. Knowledge generated by the project will be managed through the project monitoring
and evaluation component, whose implementation, including beneficiary assessment of
impacts, will be entrusted to the National Institute of Statistics (NIS). This institution, already
selected during the project on the same road between Loange and Lovua, will be responsible
for supplementing and updating key impact indicators to allow for an efficient assessment of
project impacts and production of useful information on outcomes and outputs produced.
This knowledge will be entered in the country road databases in MATUHITPR, IU and OR.
It will be disseminated through the Bank and Infrastructure Unit website, annual reports, the
completion report and ADF’s post-evaluation review. It will also be used to update country
strategy papers.

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 Results-Based Logical Framework
DEMOCRATIC REPUBLIC OF CONGO : BATSHAMABA-TSHIKAPA ROAD IMPROVEMENT PROJECT - LOVUA-TSHIKAPA SECTION
Goal: To improve the service level of the transport logistics chain on the Kinshasa-Tshikapa road as well as the living conditions of the population in the project area.

PERFORMANCE INDICATORS
MEANS OF RISKS/
RESULTS CHAIN
Indicator (including Baseline VERIFICATION MITIGATION MEASURES
Target
CSI) Situation
Rural areas of Bandundu and Percentage of road 13% in 2013 15% as from 2018 Statistical reports of
West Kasaï Provinces opened network of common the Ministry of
up national interest in good Regional
state of repair Development, Town
11% 13% (Bandundu) Planning, Housing,
Percentage of the road (Bandundu) and10% (West Kasaï Infrastructure, Public
network of common and 7% (West ) as from 2018 Works and
IMPACT

interest in the Provinces Kasaï) in 2013 Reconstruction

of Bandundu and East (MATUHITPR)
Kasaï in good state of Project impact
repair monitoring and
evaluation reports

Monitoring and
evaluation unit of the
Infrastructure Unit

Vehicle operation VOE in 2013 : VOE is USD 0.36 Project impact

expenses (VOE) USD 0.82 / Km USD / km as from monitoring and
for 1 VL 2018, corresponding evaluation reports
OUTCOMES

Outcome 1 : The service level to more than 50%

of the transport logistics chain reduction Monitoring and
on the Kinshasa-Tshikapa road evaluation unit of the
is improved Travel time Average travel Average travel time Infrastructure Unit
time between between Lovua and
Lovua and Tshikapa is one
Tshikapa in hour as from 2018
2013 : 8 hours

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 PERFORMANCE INDICATORS
MEANS OF RISKS/
RESULTS CHAIN
Indicator (including Baseline VERIFICATION MITIGATION MEASURES
Target
CSI) Situation
Outcome 2 : People’s mobility Rural access index Rural access In 2018, rural access
and living conditions in the PA Number of jobs created index in PA in index rises to 25% in
are improved 2013 : 10% PA
0 employment 2,000 direct jobs
created, 20% of
them held by women

Output 1 : Road works: Length of asphalted 0 km 56 km of road paved Control Mission’s Risk :
Construction of a paved road roads on NR1 between progress reports Suitable financing of maintenance of new and
Construction of a bridge Lovua and Tshikapa rehabilitated roads
in 2018 Monitoring and Mitigation:
evaluation unit of the Top priority given to RN1 in
Length of bridge built One bridge Infrastructure Unit programming the maintenance of national
spanning 160 ml
constructed in 2018
interest roads

Output 2 : Development of Length of feeder roads 0 km In 2018, 100 km of

feeder roads Number of In 2013: 5 feeder roads
OUTPUTS

Rehabilitation of social schools/health centres schools and 5 developed.

infrastructure (school fences, fenced and equipped health centres In 2018 : 5 schools
health centres, latrines, with gender- with neither and 5 health centres
construction of markets) differentiated latrines fences nor rehabilitated and
Number of markets built latrines equipped with
0 markets gender-differentiated
latrines; 2 markets
built (at least 50% of
space reserved for
women – child-care
facilities and storage
space/facilities for
agricultural and
market-gardening
produce provided)

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 PERFORMANCE INDICATORS
MEANS OF RISKS/
RESULTS CHAIN
Indicator (including Baseline VERIFICATION MITIGATION MEASURES
Target
CSI) Situation
Output 3 : Sensitization of the Number of safety audit 2 Road safety audit
population reports reports
People educated on HIV, 1,000 people in PA
road safety and sensitized, including
environmental protection at least 50% of
and on the dangers women
relating to mining.
COMPONENTS RESOURCES
ACTIVITIES

A : Road works UA 66.44 Million

KEY

B – Related works UA 2.05 Million

C : Institutional support, management and monitoring UA 0.77 Million
D : Compensation of affected persons UA 0.22 Million
Total Project Cost : UA 69.48 Million

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Implementation Schedule of the Batshamba-Tshikapa Road Improvement Project
Lovua-Tshikapa Section

ix
 REPORT AND RECOMMENDATION OF THE MANAGEMENT TO THE
BOARD OF DIRECTORS CONCERNING A PROPOSAL TO AWARD A LOAN
AND GRANT TO THE DEMOCRATIC REPUBLIC OF CONGO TO FINANCE
THE BATSHAMBA-TSHIKAPA ROAD IMPROVEMENT PROJECT – LOVUA-
TSHIKAPA SECTION

Management hereby submits this report and recommendation concerning a proposal to

award two grants of UA 55.56 million and UA 13.26 million each and a loan of UA 0.66
million to the Democratic Republic of Congo to finance the Batshamba-Tshikapa Road
Improvement Project - Lovua-Tshikapa Section (56 km), including the construction of
the bridge over Kasaï River.

I. Strategic Thrust and Rationale

Project Linkages with Country Strategy and Objectives
1.1.1 The project is consistent with the pillars of the Growth and Poverty Reduction
Strategy Paper (GPRSP) 2011-2015 of the Democratic Republic of Congo, whose main
thrusts include the improvement of access to basic social services. It is in line with the
transport policies framework designed by the Government – complete with an action
plan– and is considered as a reference framework for the 2002-2015 transport sector
reforms. The plan proposes massive transport infrastructure investments and the
consolidation of sustainable development by according growth and regional development
requirements. Priorities are broken down into three pillars: (i) rehabilitation of old
asphalted roads and the construction of new ones; (ii) traffic restoration by re-opening the
earth-roads network; and (iii) protection and maintenance of roads in good state of repair.
1.1.2 In that context, the National Road 1 (NR1) is the main backbone road of the
country’s road transport system. It links Banana and Matadi (port zone) in the West, to
Lubumbashi in the South (Katanga), offering access to Zambia via the capital city,
Kinshasa, and through Bandundu, West Kasaï and East Kasaï Provinces where the poor
state of transport infrastructure, mainly roads, undermines the development of a
significant agricultural potential.

Rationale for Bank Involvement

1.2.1 The project is consistent with the Bank’s new country strategy (2013-1017) for
the Democratic Republic of Congo which builds on two pillars: (i) Development of
Private Investment and Rural Integration Support Infrastructure; and (ii) Building Central
Government’s Capacity to Increase Public Revenue and Create an Enabling Framework
for Private Investment. The project is aligned to the Regional Integration Strategy (RISP
2011-2015), also built on two pillars: (i) Regional Infrastructure Development; and (ii)
Institutional and Human capacity Building.

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 1.2.2 It is also aligned to the key objectives of the Bank’s Ten-Year Strategy (2013-
2022), namely, inclusive growth and gradual transition to green growth but also to its
accompanying operational priorities, including infrastructure development. Co-financing
of the project with DFID is also consistent with the Bank’s ambition of mobilizing more
resources for infrastructure on the continent, through its own loans and grants but also by
using its instruments to leverage the other TFPs. The dominant share of DFID’s
contribution to the project financing (nearly 80%), also highlights the Bank’s catalytic
role in this regard.
1.2.3 It is noteworthy that the project is in line with the interventions of the Bank and
other donors (European Union and World Bank) as part of the gradual development of
NR1. In fact, the Bank, through a grant of UA 52.45 million, financed the rehabilitation
of the road sections between Nsele-Lufimi (93.85 km) and Kwango-Kenge (70.34 km).
Similar works between Loange and Lovua (63 km) also benefited from an ADF grant of
UA 53.55 million, approved in 2012.
1.2.4 Furthermore, the project is consistent with the integrated approach of Bank
interventions in the country’s Centre Zone since it complements other projects approved
in 2013, especially the development of related feeder roads and construction of drinking
water supply networks in the said area.

Aid Coordination
Scope
Sector or Sub-sector*
GDP Exports Labour
Transport [10%] [10%] [70%]

Stakeholders – Annual Public Expenditure (2005-2012 averages) *

Government (USD Million) Donors Amount (USD Million) [%]
1.52 ADF 75.019 6.63
DFID 130.89 11.57
European Union 200.50 17.72
Belgium 111.73 9.87
WB 565.69 49.99
Chinese Cooperation 47.81 4.22
TOTAL 1,131.65 100
Level of Aid Coordination
Existence of thematic working groups Yes, GTIT was established in 2010
No – National Transport Master Plan Study expected
Existence of a global sector programme to be financed by the Bank
AfDB role in aid coordination L : Energy sub-group - M : Other groups
L : Lead Agency; M : Member (not lead agency) :
None : no role
(*) Sources : Ministry of the Plan

1.3.1 TFPs coordination in the DRC has improved significantly in recent years in
terms of harmonization of their interventions. Efforts made in that regard since 2009 led,
among other things, to the establishment of the partners’ coordination group (GCP) in
June 2012 with the Bank as member.

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 1.3.2 The Bank Field Office in Kinshasa works closely with the authorities and other
TFPs. In addition to joint portfolio reviews with the World Bank, the Bank undertakes
joint field missions in particular with TFPs operating in same sectors. The Field Office
also takes part in thematic groups’ activities, under the auspices of the Ministries in
charge of the Plan and Infrastructure. It plays the role of lead agency for the “energy”
sub-group. As part of NR1development, the EU has confirmed its commitment to
contribute EUR 150 million to finance works on the Tshikapa-Kananga section (250 km).
This contribution supplements the UA 94 million allocations earmarked under ADF XIII
to finance rehabilitation works on the same section.

II Project Description
2.1. Project Components
2.1.1 The sector objective of this project is to help open up the Bandundu and West
Kasaï Provinces. Its specific objective is to improve the service level of the transport
logistics chain on the Kinshasa-Tshikapa road as well as the living conditions of people
in the project area.
2.1.2 The project components are described in the table below with their
corresponding costs.
Table 2.1
Summary of Project Components (Costs in UAM)
Components Cost Description of Components
Estimates
NOT-CD
A.1 Rehabilitation of NR1 between Lovua and Tshikapa including
electrification by solar lamp posts along the section where it crosses the town
of Tshikapa (9.2 km/NR1), provision for the laying of optic fibre and
implementation of ESMP; A.2 Construction of bridge over the Kasaï River
A – Development of
66.44 (160 ml) with provision for the laying of optic fibre; A.3 Repair of the two
the main highway
existing metallic bridges in Tshikapa (Kasaï: 156 ml and Tshikapa: 48 ml);
A.4 Works supervision and monitoring; A.5 Awareness campaign on
HIV/AIDS, environmental protection, road safety and dangers related to
mining.
B.1 Rehabilitation of 100 km of related feeder roads; B.2 Rehabilitation of
related infrastructure (schools, health centres and wards in the Tshikapa
B – Related works 2.05 Referral Hospital); B.3 Rehabilitation of commercial facilities (markets); B.4
Development of boreholes and protection of water sources; B.5
Control/supervision of related works.
C.1 Road safety audit on NR1; C.2 Monitoring of project’s socio-economic
impact; C.3 Accounts and financial audit of project; C.4 Support to the
C – Institutional operation of the EO (Allowance for the of 3 Experts to be recruited including
support, management 0.77 1 Structural Engineer; 1 Monitoring and Evaluation Expert and 1
and monitoring Accountant) & Current operating expenses (office supplies, fuel, cleaning,
allowances/1 driver and 3 counterparts and mission allowances) C.5
Procurement of a 4WD pickup vehicle.
D – Compensations 0.22 Compensation of project affected persons.
TOTAL 69.48

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2.2. Technical Solutions Adopted and Alternatives Explored
2.2.1 The development standards adopted for the Lovua (PK177) – Tshikapa (PK233)
road section comprise a 10-m platform with a paved roadway 2 x 3.50 m wide and 2
shoulders 1.50 m each. The project includes the construction of a 160 ml-long bridge
over the Kasaï River. The surface covering best suited technically, economically and
environmentally is the same as the one chosen for the sections upstream: Batshamba-
Loange and Loange-Lovua. The detailed study report reveals that the Lovua-
Tshikapa section, covered by this project, has an undulating relief composed of silty sand
and very good quality earthwork soil. Sub-base materials are readily available and
possibilities exist for extending localized borrow sites. Consequently, the roadway
structure adopted has the following characteristics: (i) a 20-cm sub-base of selected silty
sand; (ii) an 18-cm thick sub-base of untreated crushed sand-gravel; and (iii) 4 cm of the
surface layer mix.
2.2.2 The option of construction in stages starting with a low-quality pavement to be
subsequently strengthened was rejected because of the risks of relatively high induced
construction costs. The option of using bituminous sand for the surface layer was not
chosen either due to the insufficient availability of natural sand-gravel aggregate and
good-quality rocks in the project area and the risks of sustainability attendant to this
technique.
Table 2.2: Alternative Solutions Considered and Causes for Rejection
Alternative Solution Brief Description Cause of Rejection
1. Construction in stages starting with a Begin works with a low- Subsequent construction costs are
roadway of low quality to be quality roadway to be high
strengthened subsequently strengthened subsequently
2. Use of bituminous sand for the surface Lack of natural sand-gravel aggregate
layer and good quality rocks in the region;
lack of technical capacity

2.3. Project Type

The project is a stand-alone investment operation. Transport infrastructure projects in the
DRC are executed using this type of operation.

2.4. Project Cost and Financing Arrangement

2.4.1 The total cost of the project, net of taxes and customs duty, is estimated at UA
69.48 million, equivalent to USD 105.26 million. The project is jointly financed by: (i)
the ADF to the tune of UA 13.98 million through a loan of UA 0.66 million, derived from
a cancellation, and a grant of UA 13.26 million, of which UA 0.28 million is derived
from a cancellation; and (ii) DFID, to the tune of EUR 63.61 million, equivalent to UA
55.56 million, to be disbursed through the Fragile States Facility (FSF). The contributions
of ADF and DFID represent 20.03% and 79.97% respectively of the total project cost.
This cost includes compensations owed project affected persons, borne exclusively by
ADF resources. The provision for price escalation representing 6.55% of the base cost
and provision for physical contingencies took into account the inflation rate in DRC and
the works implementation schedule. No contribution is required from the Government

4
 since the DRC fulfils the requisite criteria for its counterpart contribution to be waived
down to 0%, pursuant to Provision 4.2.2 of the Policy on Expenditure Eligible for Bank
Group Financing (Ref. ADB/BD/2007/106/Rev.1, revised version of 19 March 2008).
The argument relating to the three key criteria chosen under this provision, namely:
country’s commitment to implement its overall development programme; financing
allocated by the country to sectors targeted by Bank assistance; and the country’s budget
situation and debt level, is developed in Annex 2 of this report.
2.4.2 The following tables present the overall financing plan, ADF financing sources,
detailed project costs by component and expenditure category and the expenditure
schedule by category.
Table 2.3: Project Financing Plan (in UAM)
Source For. Exch. Local Currency Total %
ADF Grant 9.79 3.47 13.26
ADF Loan 0.48 0.18 0.66
TOTAL ADF 10.27 3.65 13.92 20.03
DFID through FSF 41.06 14.50 55.56 79.97
Total 51.33 18.15 69.48 100

Table 2.4: ADF Sources of Financing (in UAM)

Source For. Exch. Local Currency Total
ADF Grant XII - PBA 9.59 3.39 12.98
ADF Grant (country cancellation) 0.20 0.08 0.28
ADF Loan (country cancellation) 0.48 0.18 0.66
TOTAL ADF 10.27 3.65 13.92

Table 2.5: Summary of Project Cost Estimates by Component

USD Million UA Million
Components For. Exch. L.C. Total For. Exch. L.C. Total
A – ROAD WORKS 68.71 17.18 85.89 45.35 11.34 56.69
B – RELATED WORKS 2.11 0.54 2.65 1.40 0.34 1.74
C- INSTITUTIONAL SUPPORT AND
PROJECT MANAGEMENT 0.80 0.20 1.00 0.53 0.13 0.66
D - EXPROPRIATIONS 0.23 0.06 0.29 0.15 0.04 0.19
BASE COST 71.85 17.98 89.83 47.43 11.85 59.28
Physical contingencies 7.18 1.80 8.98 4.74 1.19 5.93
Price escalation 5.18 1.29 6.47 3.42 0.85 4.27
TOTAL 84.21 21.07 105.28 55.59 13.89 69.48

Table 2.6: Project Cost by Expenditure Category

USD Million UA Million
Expenditure Categories For. Exch. L.C. Total For. Exch. L.C. Total
A - GOODS 0.04 0.01 0.05 0.02 0.01 0.03
B - WORKS 67.16 16.80 83.96 44.33 11.08 55.41
C - SERVICES 4.30 1.08 5.38 2.85 0.70 3.55
D - MISCELLANEOUS 0.35 0.09 0.44 0.23 0.06 0.29
BASE COST 71.85 17.96 89.81 47.42 11.86 59.28
Physical contingencies 7.18 1.80 8.98 4.74 1.19 5.93
Price escalation 5.18 1.29 6.47 3.42 0.85 4.27
TOTAL 84.21 21.07 105.28 55.59 13.89 69.48

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 Table 2.7: Expenditure Schedule by Expenditure Category (in UA million)
Categories / Years 2014 2015 2016 2017 Total
1 - GOODS 0.01 0.01 0.01 0.00 0.03
2 - WORKS 11.08 16.62 22.16 5.54 55.41
3 – CONSULTANTS’ SERVICES 0.71 1.07 1.42 0.36 3.55
4 - MISCELLANEOUS 0.06 0.09 0.12 0.03 0.29
BASE COST 11.86 17.78 23.71 5.93 59.28
Unallocated 2.04 3.06 4.08 1.02 10.20
TOTAL 13.90 20.84 27.79 6.95 69.48
Total in % 20% 30% 40% 10% 100%

2.5 Project Target Area and Beneficiaries

2.5.1 The road section to be improved between Lovua and Tshikapa (56 km),
including the new bridge to be constructed over River Kasaï crossing Tshikapa town, the
subject of this project, is part of National Road 1 (NR1) which links Banana and Matadi
in the West, to Lubumbashi in the South in Katanga Province offering access to Zambia.
It crosses the Capital Province of Kinshasa and the Bandundu, West Kasaï and East Kasaï
Provinces. Through NR1, it is possible from Mbuji-Mayi to connect to NR2 leading to
the towns of Bukavu (South-Kivu) and Goma (North-Kivu) in the East of the country.
2.5.2 The project setting is rural over nearly 47km, between Lovua and Katshongo,
and urban in the town of Tshikapa over nearly 9 km, corresponding to a total length of 56
Km. The road section to be improved is entirely in the West Kasaï Province, specifically
in Kasaï District, Kamonia territory and the Bapende and Kamonia Sectors. The total
population of West Kasaï Province is 5,296,347 with women making up a relative
majority of 50.94%. Administratively, this province has: (i) one town (Kananga) ; (ii) a
territorial unit similar in status to a town (Tshikapa) and (ii) two Districts (Kasaï and
Lulua), with 10 Territories, 50 sectors and 626 groupings.
2.5.3 The direct project target area has a population estimated at 1,750,000, including
892,000 women representing nearly 51%. It comprises the urban centre of Tshikapa and
four major villages (Mukala, Katanga, Kayateshia and Kabunlongo). The planned road is
the nearest motorway of national importance to which it can be connected.
2.5.4 The West Kasaï sub-soil is replete with geological resources (diamond, tin, iron,
nickel, chromium, cobalt…) mainly mined on a small scale. Agriculture is also practised
in the zone and there are indeed interesting prospects in this area for agricultural
production (sorghum, rice, maize, cotton...).
2.5.5 In the wider project area, there are 19 health centres, 5 dispensaries and 5
hospitals the geographic distribution of which uneven. The town of Tshikapa alone has 3
of the 5 hospitals identified. The Kamonia health zone has a total of 25 health districts 7
of which are managed by the State and 18 by the private sector but integrated in the
primary health system. According to a fairly recent study (ACF, February 2011), 92
health facilities provide health-care to the local population, including 84 health centres
and posts, most of which lack equipment and medications. Six (6) weekly markets were
counted along the road (with a greater presence of women), but all lack sustainable
commercial infrastructure.

6
2.5.6 Lastly, drinking water supply in the project area remains problematic since there is
no drinking water distribution network in the immediate PA. Out of the 369 water sources
inventoried in the Kamonia health area (ACF, 2011), only 68 are built. Most health facilities
resort to rain water and only a handful of wells are built.

2.5.7 The main direct beneficiaries of the project are: (i) the PA populations; (ii) road
transport practitioners through the provision of adequate infrastructure and substantial
reduction of vehicle operating expenses; (iii) the extractive industries sector for
transportation of inputs and evacuation of products; and (iv) the Congolese State. The
other project beneficiaries are businesses and other service providers involved in works
implementation and monitoring.

2.6. Participatory Approach in Project Identification, Design and

Implementation
2.6.1 The participatory approach was preferred at each stage of the project both during
studies and during appraisal between Loange bridge and Tshikapa (114 km). Public
information sessions were organized at Mukala, Katanga, Katshongo and Tshikapa.
Thanks to specific discussions with the environmental unit of the Infrastructure Unit, the
Environmental Studies Group of Congo (GEEC), officials of local government bodies
and customary authorities a number of concerns were identified regarding: (i) fine-tuning
the Environmental and Social Management Plan; (ii) ensuring better management of solid
and liquid wastes; and (iii) instituting procedures relating to hygiene, health, safety,
HIV/AIDS/STD awareness as well as transparent measures to better integrate women
into mainstream economic activities and more effectively protect children.
2.6.2 This participatory approach will be continued during the project implementation
phase through supervision and mid-term review missions and studies to monitor and
assess the project’s socio-economic impact.

2.7 Bank Group Experience and Lessons Reflected in Project Design

2.7.1 The Bank’s active portfolio in the DRC, updated end-September 2013, has 41
operations, including 11 national operations for a total amount of UA 412.63 million,
with a disbursement rate of 26.99%, and 6 multinational operations for a total of UA
58.46 million in the infrastructure (80%) and agricultural (20%) sectors, disbursed at a
rate of 28.90%. The portfolio also has 14 CBFF operations totaling UA 25.11 million,
disbursed at a rate of 33.5%. There is only one Forest Investment Fund operation,
amounting to UA 0.52 million, with a disbursement rate of 36.54%, features in the
portfolio. The 9 operations financed under the FSF technical assistance window amount
to UA 7.13 million, disbursed at a rate of 19.10%. The last portfolio performance review
conducted in March 2013 indicates that the Bank’s national public portfolio performed
satisfactorily with a score of 2.40 against 2.25 at end-2011. This progress is attributable
to the shorter time required to fulfill conditions precedent to first disbursement of new
projects, the improved financial performance of projects and smaller number of risk
projects.
2.7.2 The Bank’s experience in the transport sector in the DRC was obtained mainly
during the Nsele-Lufimi and Kwango-Kenge Roads Rehabilitation Project through: (i)
7
slippages observed in implementing the procurement plan; and (ii) the difficulties
encountered by the Government to honour its commitment to pay its counterpart
contribution for the project. Based on this experience, the project will benefit from the
presence of the Public Procurement Expert recruited for the Loange-Lovua Road
Development Project financed by the Bank. As indicated earlier, a waiver has been
granted exempting the country from counterpart contribution.

2.8. Key Performance Indicators

2.8.1 The project’s main expected outputs are the following: (i) 56 km of road paved
along the NR1; (ii) 100 km of feeder roads rehabilitated; (iii) socio-economic infrastructure
rehabilitated (schools, health centres, markets, water points); (iv) institutional support to the
IU to manage the project; and (v) a monitoring and evaluation system set up to monitor the
project’s socio-economic impact. Socio-economic impact monitoring targets a limited
number of indicators, including: (i) the rural access index; (ii) vehicle operation expenses;
(iii) travel time; (iv) level of direct and indirect jobs created; and (v) number of persons
sensitized with respect to HIV/AIDS, environmental protection and road safety.

2.8.2 NIS will conduct an in-depth analysis of impact indicators in order to fine-tune
the baseline situation before works and assess the socio-economic impact upon
completion based on the same methodological approach. The IU will monitor the
implementation of all project activities and produce half-yearly reports accordingly.

III Project Feasibility

3.1. Economic and Financial Performance

3.1.1 The economic analysis was conducted using the HDM.4 model on the entire road
section spanning over 233 km subdivided into 3 sections: (i) a 114-km section between
Batshamba and Loange, financed by the European Union (works expected to start during
the first quarter of 2014); (ii) a 63-km section between Loange and Lovua financed by the
Bank (works expected to start in the same period); and (iii) a 56-km section, covered by this
project, between Lovua and Tshikapa, including the construction of the new bridge over the
Kasaï River.

3.1.2 Due to the scale of selected works, especially the fairly long bridge to be built over
the Kasaï River (160 ml) whose life span is normally above 50 years, a residual value of
investments of 35% was chosen for the above period. For the purpose of economic analysis,
the quantifiable benefits of the highway were determined based on the “no-project” and
“with-project” scenarios over a 20-year period. The “no-project” situation corresponds to the
following states of development of various road sections between Matadi and Mbuji Mayi:
(i) Matadi – Kinshasa – Batshamba (paved road); (ii) Batshamba – Tshikapa (undeveloped
earth road); (iii) Tshikapa – Kananga – Mbuji Mayi (partially developed earth road). The
“with-project” situation corresponds to the following states of development of various road
sections between Matadi and Mbuji Mayi: (i) Matadi – Kinshasa – Batshamba – Tshikapa
(asphalted road); (ii) Tshikapa – Kananga – Mbuji Mayi (developed earth road).

8
3.1.3 The costs considered are the economic costs of investment, routine and periodic
maintenance and vehicle operation. Since the road was designed to support traffic for 20
years, benefits are expected on: (i) vehicle operating expenses; and (ii) maintenance costs.
The project-induced agricultural value added in the PA stems from the surplus production
on some key crops (coffee, sorghum, rice, maize and cotton) to be generated by the road.
These crops, which thrive in the PA, remain undeveloped due mainly to high feeder costs
linked to the accessibility of the zone. Based on this analysis, an economic rate of return
(ERR) of 19.9% for the entire road stretch and a net present value (NPV) of USD 206.2
million were obtained using a discount rate of 12%. Based on a sensitivity test (10%
increase of project cost and 10% decrease in benefits), the project’s ERR was finally
established at 17.5%. This rate is still higher than the opportunity cost of capital estimated at
12% and indicates that the project is economically profitable for the community. This rate
will improve further when placed within the context of the medium-term development of the
Tshikapa-Kananga sections (jointly financed by EU and ADF XIII), or 250 km beyond
Tshikapa. The summary results of the economic analysis conducted based on the HDM.4
model are presented in the table below.

Table 3.1: Economic and Financial Data

Economic Parameters Analysed Results
Economic Rate of Return (ERR baseline scenario) 19.9%
Net Present Value (NPV) in USD Million 206.2
ERR Sensitivity Test (Assumption of 10% rise in investment cost and recurrent
17.5%
expenses )

3.2. Environmental and Social Impact

3.2.1 The Road Development Project stretching all the way from Batshamba to
Tshikapa, including construction of the bridge over the Kasaï River is classified under
Environmental and Social Category 1. Its design included a complete Environmental and
Social Impact Assessment (ESIA) and a Resettlement Action Plan (RAP) for project
affected persons. The ESIA and RAP summaries were posted online on the Bank’s PIC
website on 12 August 2013, pursuant to the Rules and Procedures for Category 1 Projects.

Negative Impacts
3.2.2 By their very nature, road works are likely to generate negative impacts
including: (i) risk of accidents during works; (ii) risk of river and soil pollution due to
accidental spills of used oil and fuel; (iii) erosion risk at the level of right-of-way
adjustments (cave-ins, land-slides); and (iv) piling up of waste materials from works
(excavated materials, dykes, rubble…) that could be a further nuisance to the population
with the risk of respiratory diseases caused especially by dust raised during works.
3.2.3 The project will not entail any significant destruction of plant cover on the project
route or road right-of-way. Nevertheless, some semi- or totally-protected tree species very
close to the road will likely be felled during the construction phase. Some activities mainly
carried out by women on the right of way and in the road’s immediate vicinity, particularly
in the Hospital neighbourhood (small vendors of bread, salted fish, cassava, maize, fruits,
vegetables, local drinks, water, etc.), could be affected by the worksite facilities established
for the construction of the Kasaï bridge and cause direct revenue losses.

9
Positive Impacts
3.2.4 The road’s beneficial impacts on the physical environment will be reflected in
the improvement of water management systems which will help to control soil erosion,
protect water resources and secure local residents against floods. Erosion control works
(rolling basins, planting of plant species in earth-bank areas, stabilization of erosion
zones, booms, curbs) will reduce cave-ins and soil loss, helping to sustaining the road.
Similarly, the planting of roadside trees will enhance the aesthetics of the road and reduce
the level of noise, pollution, light nuisance and the effect of dust.

Land Reclamation and Negative Impact Mitigation Programme

3.2.5 To mitigate identified negative impacts during the project implementation phase,
works need to be organized and the worksite facility equipped as recommended in the
Contractor’s specifications, under the supervision of the Control Mission. These
measures will concern: (i) installation of works site spaces and facilities; (ii) storage and
warehousing of materials and products likely to release polluting materials as well as
inflammable and dangerous substances; (iii) machine movement and signage plans; (iv)
felling of trees and cutting of hedges requiring prior authorization from the decentralized
services of GEEC and compensatory planting of nearly 3,000 roadside and shade trees in
villages and towns crossed (nearly 1,500 trees distributed in Mangoya, Mukala, Katanga,
Kayateshia, Kibimlongo and 1,500 in Tshikapa town); (v) organization of earth-moving
operations in borrow sites and their rehabilitation upon completion of works; (vi)
reduction of dust emissions; (vi) collection and evacuation of liquid discharges and solid
wastes to mitigate the risks of water pollution; (v) management of erosion risks and
regular assessment of soil stability (identification of erosion-prone zones, stabilization of
earth banks, protection of the Kasaï River banks…), etc.
3.2.6 The ESMP, to cost EUR 1,536,500, or 1.84% of the total project cost,
comprises: (i) impacts mitigation by works contractor (EUR 1,461,500); (ii) works
supervision (EUR 35,000) and (iii) implementation of the monitoring plan by Control
Mission (EUR 40,000). Pursuant to Congo’s institutional provisions, responsibility for
monitoring project implementation will be organized and overseen by MATUHITPR
working closely with the Ministry of the Environment, Nature Conservation and Tourism
(MECNT) and Congo’s Environmental Evaluation Group (GEEC). MATUHITPR will,
through the IU’s environmental unit, assisted by the Control Mission (MDC), regularly
monitor ESMP implementation until the acceptance of works.

Gender
3.2.7 The project area is characterized by widespread deterioration of basic infrastructure
(paths, roads, schools, health centres, etc.) and scarce means of transport. In such a context,
women’s conditions are likely to be more precarious. Their economic activities would not
be developed (loss of foodstuffs) and their daily chores more strenuous. The PA, particularly
West Kasaï, is also characterized by a very high maternal mortality rate (549 deaths for
100,000 live births, according to EDS 2007) due, among other things, to remoteness and
poor equipment of health institutions. Slightly over one-third of children of school-going
age are enrolled in school in West Kasaï. The gender parity index (GPI) relating to primary
school attendance is 0.83, indicating that girls and boys attend primary school in roughly the
same proportions; which is not the case in secondary school where GPI is about 0.63. The
proximity of PA populations to Tshikapa town induced by the developed road and financing
10
of some specific project activities (opening of feeder roads, construction of markets,
rehabilitation of schools and health centres, sinking of bore holes and protection of water
sources in addition to those chosen for the immediate project on the Loange-Lovua section),
will contribute to improving their conditions of access to care and basic education.

Social
3.2.8 Generally, 71% of the population in DRC still lives below the poverty line.
Although the poverty rate in the PA (West Kasaï) is estimated at 55.4%, the analysis of
commercial flows and availability of staple foodstuffs reveal significant potentials in both
Kasaïs, Bandundu and Kinshasa in terms of the production and marketing of products such
as maize, beans, cassava, groundnuts, bolstered by the availability of over 32 million
hectares of agricultural land, less than 10% of which is developed. The poor exploitation of
these resources is largely attributable to the inaccessibility of the provinces crossed and the
local populations’ lack of access to basic socio-economic infrastructure. The result is: (i) an
excessive increase in costs of transports and all categories of goods; (ii) a deterioration of
means of transport; and (iii) a reduction in production activities.

3.2.9 The analysis of the social situation in Kasaï, where mining is preponderant also
reveals the negative effects of this activity on youths, manifest, among other things, in, the
abandonment of agriculture, massive rural exodus, recurrent job insecurity and exposure to
scourges such as HIV/AIDS and early school drop-outs.

3.2.10 Development of road and opening of feeder roads will have a knock-on effect on
the development of arable land. These roads will facilitate the evacuation of agricultural
products (sorghum, coffee, rice, maize, cotton…), thereby generating higher farmer
incomes, better living conditions and poverty reduction in poor households. The project’s
beneficial social impacts on users and the population are also reflected in: (i) the
improvement of social and commercial facilities (health centers, schools, water points,
markets…); and (ii) ease of supply of manufactured goods to rural communities and access
to basic social services. The higher demand for common consumer goods during the
construction phase will help to improve women’s revenues most of whom are petty traders.
In all, the project will create 2,000 direct jobs and 10,000 indirect jobs and contractors will
be urged to favor women’s access to works-related jobs under the best conditions. Through
the project, the PA will benefit from many opportunities for investment, creation of micro-
enterprises for the processing of agro-pastoral products and emergence of induced activities
(accommodation, catering and socio-economic activities). Furthermore, the road will foster
and improve conditions for posting administrative staff (teachers, medical, civil protection,
forestry staff…) to the towns adjoining or crossed by the roadway and human settlements.

3.2.11 A likely project risk is the spread of HIV/AIDS/STDs with an increase in the
flow of people and greater insecurity on the road to be developed. Awareness campaigns
on HIV/AIDS and environmental protection have accordingly been planned. In addition,
a series of measures are listed in the ESMP to mitigate the negative impact of this project.

11
Climate Change
3.2.12 Based on lessons learned from experience with the Nsele-Lufimi and Kwango-
Kenge sections of NR1, the project took into consideration adaptation options consisting
in establishing lamination basins and replacing some discharge structures, using as
reference fifty-year flood flows. Close to 1,000 roadside and shade trees (500 of them in
Tshikapa) will be planted to make up for the few felled trees. The project will thus
contribute to climate change mitigation (carbon sequestration and reduction of
greenhouse gases in the atmosphere) in accordance with the strategic options of the
National Climate Change Adaptation Action Plan adopted in September 2006 with the
support of the Global Environment Fund (GEF). Furthermore, the public lighting of
Tshikapa’s central thoroughfare (9.2 km on NR1) using photovoltaic solar panels
represents a more economical and eco-friendly alternative to standard street lighting in
terms of CO2 emissions.

Resettlement
3.2.13 In all, 309 people will be affected by the project. They will lose: (i) homes; (ii)
plots of land; (iii) sources of income; (iv) farmland; (v) trees; (vi) trading stands and
stalls. A RAP was prepared, pursuant to Bank Rules and Procedures, whose total cost
was evaluated at about 259,091,340 Congolese Francs (CF), equivalent to USD 285,000,
financed by ADF resources. The RAP includes a monitoring and evaluation arrangement
to allow for effective compensation which is an ADF loan and grant condition (Cf. Bank
Group Involuntary Resettlement Policy, 2003).

IV Implementation

4.1. Implementation Arrangements

Executing Agency
4.1.1 The Project Executing Agency, for all components financed by the ADF and
DFID, is the Ministry of Regional Development, Town Planning, Housing, Public Works
and Reconstruction (MATUHITPR) through the Infrastructure Unit (IU). Established in
2004, the IU assumes the prerogatives of delegated contracting authority for transport sector
projects financed by donors (WB, ADB, EU, DFID, JICA, BADEA, KFAED…). The IU
comprises a dedicated multi-disciplinary team bringing together construction, procurement,
administration, finance, monitoring and evaluation, environment and communication
experts. The project to develop the Loange-Lovua bridge section, financed fully by the
Bank, already includes the hiring of an Engineer (Project Manager), a Procurement
Specialist and an Administrative and Financial Officer. The same team will be maintained
for this project’s management and will be reinforced with the addition of: (i) a Structural
Engineer; (ii) a Project Monitoring and Evaluation Expert; and (iii) an Accountant. The
monthly and subsistence allowances to be paid to the three experts will be covered by the
project. .

4.1.2 The Executing Agency will work closely with the Congo Environmental Studies
Group (GEEC) of the Ministry of the Environment and DVDA to monitor: (i)
environmental and social issues; and (ii) the implementation of rural feeder road
development works. The Unit will maintain close working relations with other ministries
12
involved in the project, especially the Ministries in charge of Basic Education, Health and
Transports. The Bank will, in particular, ensure the quality of the Management Unit’s
services. Furthermore, it was decided that the project’s financing would include
reinforcement of the IU’s logistics. The monthly allowances of the driver as well as
subsistence allowances during field missions will be paid by the project.

Institutional Arrangements
4.1.3 A qualified consulting firm will be recruited for works supervision and
inspection. Under the supervision of the IU, it shall monitor works on the ground, control
technical quality and certify estimates based on attachments made by the Contractor and
prepare monthly works progress reports.
4.1.4 The Roads Authority (OR), which already benefits from logistics support under
the Loange-Lovua Road Section Project, will be involved during the implementation of
this project, as works supervisor. In addition, three (3) national counterparts (2 OR road
engineers and one (1) DVDA rural engineer) will work full-time and directly with the
Works Control and Supervision Mission to benefit from knowledge transfer in the
monitoring of road works, bridge construction and feeder road development. These
national counterparts will receive monthly allowances and per diems for field missions
paid by the project.

Procurement Arrangements
4.1.5 Goods and works necessary for the project implementation will be procured
through international competitive bidding (ICB), pursuant the Fund’s Rules and Procedures
for the Procurement of Goods and Works, May 2008 edition revised in July 2012, or, as the
case may be, the Fund’s Rules and Procedures on the Use of Consultants, May 2008 edition,
as revised in July 2012, based on the Fund’s appropriate standard bidding documents. In
accordance with Law No. 10/010 of 27 April 2010 on public procurement and national
standard bidding documents (NSBD), national procedures will be used for national
competitive bidding (NCB) and local shopping when the allocated amount per contract does
not exceed UA 3 million for works and UA 300,000 for goods and above UA 50,000 for
local shopping, subject to the terms defined in Annex III of the Loan/Grant Agreement. The
Executing Agency’s evaluation, procurement method and draft procurement plan are
attached as Technical Annex B5 of the Appraisal Report.

Disbursement
4.1.6 Two disbursement methods are proposed: (i) special account method for the
expenditure related to support to the operation of the Project EO (allowances for the three
experts to be recruited, the driver and three national counterparts, subsistence allowances,
upkeep, office supplies…) and payment of compensation to project affected persons and; (ii)
direct payment method for expenses incurred for goods, works and services.

4.1.7 Expenses related to support to the operation of the Project EO, financed
exclusively from FSF grant resources, will be made through a Special Account. Those
relating to compensation to affected persons, financed exclusively from ADF grant
resources will be made through another Special Account. The two separate Special
Accounts, denominated in U.S. dollars, will be opened in accordance with Bank rules.
Evidence of opening of these Accounts in the same bank or in two separate banks
acceptable to the Bank, is a condition precedent to first disbursement of ADF and FSF
13
grants. Proof of full compensation of project affected persons, not later than 30 June 2014, is
another condition of the FSF and ADF grants as well as ADF loan. Funds from the Special
Accounts will be disbursed in the form of advances payable in the said account opened for
that purpose. The accounts will be replenished after justification of the use of at least 50% of
the preceding disbursement and the entirety of earlier disbursements, as appropriate.
Disbursements will be made in accordance with: (i) the project expenditure schedule; (ii) the
list of goods and services; and (iii) Bank procedures. Three disbursement letters defining
related guidelines will be reviewed and accepted by the Bank and the Government during
negotiation of the loan and grants.

Financial Management and Audit

4.1.8 The IU will be responsible for the administrative, financial and accounts
management of all project activities covered by the two financing sources (ADF and DFID).
The steering organ’s financial management system was assessed on the basis of available
information after a review conducted in June 2013. The system’s performance was deemed
satisfactory on the date of the mission. The financial management arrangement in place at
the IU will be fully used during this project. There are plans to recruit an accountant to
support the Project Management Unit.

4.1.9 The IU will ensure that the following financial management measures are in place:
(i) effective mobilization of staff ; (ii) updated procedures manual to strengthen internal
control processes; (iii) configuration of the existing software based on specific project data;
(iv) opening of special accounts; (v) inclusion of the project activities in the internal
auditor’s work programme; (vi) training of financial staff on the Bank’s Financial
Management Rules and Procedures; and (vii) recruitment of the auditor. After evaluation,
the IU’s financial management and procurement capacities were deemed satisfactory
overall.

4.1.10 Project accounts and financial statements will be approved on 31 December every
year, in tune with OHADA accounting principles. An independent external auditor deemed
acceptable by the Bank will perform annual audits of the project’s annual financial
statements, special accounts and certified expenditure statements. Throughout the project
duration, audits will be financed by ADF grant resources. Considering the probable date of
first disbursement by the Bank, the first fiscal year to be audited could extend to 18 months.
The overall financial management risk remains moderate given the measures proposed in
the financial management action plan. The financial management arrangement proposed
based on available information will be reviewed during the project start.

Implementation and Supervision Schedule

4.1.11 The project will be implemented from December 2013 to December 2018,
corresponding to a period of 60 months. During its implementation, the Bank will undertake
joint supervision missions with Government departments in the DRC (IU, OR, DVDA,
FONER...). A mid-term review mission undertaken by the Bank will assess implementation
to ascertain progress towards the project objectives. The table below indicates the key dates
of the provisional project supervision programme.

14
 Table 4.1: Provisional Supervision Programme
Period Activity Team Composition
02/2014 Launch mission Project Team (1 Transport Economist ; 1 Roads
Engineer ; 1 Disbursement Officer ; 1 Procurement
Officer + CDFO
11/2014 - 06/2015 - Supervision Project Team + CDFO
11/2015
06/2016 Mid-term review Project Team /Socio-economist; Environmentalist;
Financial management officer; CDFO
11/2016 – 06/2017 Supervision Project Officers + CDFO
03/2018 Completion report Project Officers + 1 Socio-economist + CDFO

4.2. Monitoring and Evaluation

4.2.1 Monitoring and evaluation will consist in internal and external monitoring,
supervision missions by the Bank and an evaluation including the Bank’s completion report.
Implementation of the project will be the subject of monthly reports prepared by consultants
tasked with works control and supervision and half-yearly reports prepared by the
Infrastructure Unit. DFID proposed that project impact monitoring be reinforced by the local
population. Specifically, this involves including in the monitoring mechanism participatory
procedures that can: (i) build beneficiary capacity to monitor and assess project impacts; and
(ii) encompass the principle of accountability among project beneficiaries. In that regard, the
EA’s capacity to monitor project impacts will be strengthened by hiring a suitable Expert
who will be part of the project management unit. These terms of reference will specify the
indicators to be monitored for this project, the composition of the team to be mobilized and
the area to be covered and will be supplemented by detailed budget estimates and the
implementation schedule of the said services.
4.2.2 The terms of reference of monitoring and evaluation services will be reviewed by
the Bank and DFID prior to finalization. A draft direct agreement contract with NIS
comprising the terms of reference of the impact monitoring mission will be submitted by the
IU for approval by the Bank and DFID before signature. This will build on the Bank’s
experience acquired during the Nsele-Lufimi and Kwango-Kenge Roads Project through a
specific beneficiary assessment of the project. Monitoring and evaluation expenses are
included in the project financing.

4.3. Governance
4.3.1 Governance indicators reveal that DRC still falls short of the Sub-Saharan
average. The country is ranked in the 5th and 10th percentile for the “control of
corruption” and “voice and accountability” dimensions, in the World Bank’s 2011
classification. Devolution mechanisms should be specified to make effective
Government’s strategy on decentralization and transfer of powers and financial resources,
mainly to the provinces. With a Corruption Perception Index of 21 on 100, the DRC is
ranked 160th out of 176 countries in Transparency International’s 2012 Report and
Government’s sometimes vigorous efforts to reverse this situation have still not yielded
the expected results.

15
4.3.2 A public finance management reform initiated in 2008 led to: (i) the adoption of
a Public Finance Reform Strategic Plan and an organic law on public finance (LOFIP)
introducing results-based budgeting; and (ii) the establishment of a Steering Committee
for Public Finance Reform (COREF). The Bank’s assessment of the country’s public
finance management and fiduciary risk systems in 2012 revealed a number of recurrent
weaknesses that hamper fiscal management efficiency: (i) repeated use of exceptional
expenditure procedures; (ii) virtual non-existence of the accounting function; (iii) weak
internal and external audits; (iv) inefficient internal resource mobilization system, etc.
Arrangements are being made by the country to join the Construction Sector
Transparency Initiative (CoST) launched under the auspices of DFID and the World
Bank.
4.3.3 Project governance quality is guaranteed by: (i) the presence of a Procurement
Expert in the Management Unit; (ii) the existence of an administrative, financial and
accounting procedures manual for use by the IU; (ii) Bank oversight of the procurement
process through its no-objection notice at various stages; and (iii) institution of
compulsory supervisions and financial audits. Furthermore, CDFO will provide the EA
with on-site procurement, contract management and financial management support.

4.4. Sustainability
4.4.1 Pursuant to Law No. 08/006-A of 7 July 2008 and Decree No. 08/27 of 24
December 2008, a National Road Maintenance Fund (FONER) with virtually all the
characteristics of a second-generation fund was set up and its operation is governed by an
Operations Manual. FONER resources are derived mainly from: (i) royalties levied on
lubricants and fuel (96%); (ii) toll-gate fees (3%) and (iii) overload fines (1%). The Fund’s
resources increase on average by 10% yearly. In 2012, the Fund collected close to USD
85.83 million against projections of around USD 77.52 million, representing an achievement
rate of 110.71%. The same year, it financed maintenance works on general utility roads,
urban roads and agricultural feeder roads for about USD 70.23 million, but also made
transfers to provinces based on the maintenance projects and programmes prepared by road
agencies (OR, OVD and DVDA). It is noteworthy that 60% of revenue is earmarked for the
maintenance of the national general utility network and 40% for the maintenance of urban
and rural feeder roads. In accordance with the Fund’s intervention strategy, the Batshamba-
Tshikapa road will automatically feature in the priority network maintenance schedule after
the contract performance security period.
4.4.2 DVDA whose capacity-building needs are structural is responsible for the
maintenance of feeder roads. The Belgian technical cooperation is highly involved in this
sector through the training of local road maintenance committees (CLER).
4.4.3 A number of initiatives have been taken to improve the Fund’s efficiency: (i)
implementation of a media plan to disseminate the new Operations Manual under the Pro-
routes programme targeting road agencies; (ii) reform to change from the Fund’s triple
supervisory oversight to just one, namely the Ministry of Finance; (iii) revitalization of
provincial road boards in each province; (iv) capacity-building to design road maintenance
programmes; and (v) faster justification of expenditure by road agencies. To optimize
resource absorption by road agencies, FONER proposes that contracts signed with SMEs for
routine maintenance should be combined with contracts signed under State supervision
(road agencies) for periodic maintenance. It is also involved in road network protection by
16
procuring and operating axle-weighing stations and by disseminating the related
instruments.
4.4.4 During implementation of CSP 2013-2017, the Bank plans to work closely with the
World Bank and EU to support the National Road Maintenance Fund reform to allow for
adequate financing of road maintenance and establish an efficient institutional road
management framework to, among other things, improve investment quality. The Bank will
thus participate in the reform of the institutional management framework reform for road
maintenance with focus on: (i) redefining the roles of road agencies and building their
programming capacity; and (v) training in the award of maintenance contracts, in particular,
to SMEs.

4.5. Risk Management

The direct risk for the project is the inadequate financing of maintenance for new and
rehabilitated roads. This risk is mitigated by the top priority given to NR1 regarding the
programming of national utility roads.

4.6. Knowledge Building

Lessons learned from project implementation will be leveraged through the planned
monitoring and evaluation mechanism. By analyzing key impact indicators before project
start (baseline situation) and assessing post-completion impact, useful information will be
generated on the project outcomes and outputs. This knowledge will be managed from a
functional database at the level of the monitoring and evaluation services of the IU, OR
and DVDA and will be disseminated in annual reports and on the Bank’s Transport and
ICT Department’s website.

V Legal Framework

5.1. Legal Instrument

A Loan Agreement and two Grant Agreements for the financing of this project will be
signed between the Democratic Republic of Congo and the Bank.

5.2. Conditions Associated the Bank Involvement

5.2.1 Effectiveness of the Grant Agreements. The effectiveness of the Grant Agreements
shall be subject to their signature by the Donee and the Fund.
5.2.2 Effectiveness of the Loan Agreement: The effectiveness of the Loan Agreement
shall be subject to fulfillment by the Borrower of the conditions provided for under
Section 12.01 of the General Conditions.
5.2.3 Condition Precedent to Disbursement of the Grants. Apart from effectiveness, the
Fund shall disburse Grant resources only if the Donee has fulfilled, to the satisfaction of the
Fund, the following condition:
(i) Provision of proof of opening two Special Accounts in the same bank or in
two separate banks to receive the grant resources exclusively (Cf.
paragraph 4.1.7) ;
17
5.2.4 Other Condition of the Grants and Loan: In addition, the Donee/Borrower shall
furnish proof, to the satisfaction of the Fund, of:

(i) payment of compensation to people affected by expropriations, in

accordance with the relevant Fund policies and guidelines, the
Environmental and Social Management Plan (ESMP) and the Involuntary
Resettlement Plan (IRP) (see. paragraphs 3.2.13 and 4.1.7).

5.2.5 Commitments. The Donee/Borrower undertakes, to the satisfaction of the Fund:

(i) Not to start development works on the road before providing evidence of
payment of compensation to persons affected by expropriations, in
accordance with the IRP; and

(ii) To implement the project including the Environmental and Social

Management Plan (ESMP) and the Involuntary Resettlement Plan (IRP)
and have its contractors implement same in accordance with national law,
the recommendations, procedures and prescriptions contained in the ESMP
and IRP as well as the related Fund rules and procedures; and submit to
the Fund quarterly reports on ESMP implementation including, where
applicable, weaknesses and corrective actions undertaken or planned,.

5.3. Compliance with Bank Policies

The project complies with all applicable Bank policies.

VI Recommendation
In view of the foregoing, Management recommends that the Board of Directors approve
the proposal to award FSF grant of an amount not exceeding UA 55.56 million and ADF
Grant and Loan in the amounts not exceeding UA 13.26 million for the grant and UA
0.66 million for the loan, to the Government of the Democratic Republic of Congo. The
Loan and Grants shall be used to implement the project as designed and set out in this
report and shall be subject to the terms specified in the Loan Agreement and Grant
Agreements.

18
Annex I. Country’s Comparative Socio-economic Indicators

Congo, Dem. Republic

COMPARATIVE SOCIO-ECONOMIC INDICATORS

Congo, Develo- Develo-

Year Dem. Africa ping ped
Republic Countries Countries
Basic Indicators
GNI Per Capita US $
Area ( '000 Km²) 2011 2 345 30 323 98 458 35 811
Total Population (millions) 2012 65,7 1 070,1 0,0 0,0 1800
1600
Urban Population (% of Total) 2012 34,8 40,8 47,1 78,0 1400
Population Density (per Km²) 2012 28,9 34,5 69,8 23,5 1200
1000
GNI per Capita (US $) 2012 220 1 604 3 795 37 653 800
Labor Force Participation - Total (%) 2012 39,2 37,8 68,7 72,0 600
400
Labor Force Participation - Female (%) 2012 49,7 42,5 38,9 44,5 200
Gender -Related Dev elopment Index Value 2007-2011 0,370 0,525 0,694 0,911 0

2003
2004
2005
2006
2007
2008
2009
2010
2011
Human Dev elop. Index (Rank among 187 countries) 2008-2012 186 ... ... ...
Popul. Liv ing Below $ 1.25 a Day (% of Population) 2009-2011 87,7 40,0 20,6 ...
Cong o, Dem. R epublic

Demographic Indicators
Population Grow th Rate - Total (%) 2012 2,7 2,3 1,3 0,3
Population Grow th Rate - Urban (%) 2012 4,3 3,4 2,6 0,7
Population < 15 y ears (%) 2012 45,2 40,0 28,5 16,4
Population Growth Rate (%)
Population >= 65 y ears (%) 2012 2,9 3,6 6,0 16,6
Dependency Ratio (%) 2012 94,0 77,3 52,6 49,2 3,5
Sex Ratio (per 100 female) 2012 98,7 100,0 103,3 94,3 3,0
Female Population 15-49 y ears (% of total population) 2012 22,8 49,8 53,3 45,6 2,5
Life Ex pectancy at Birth - Total (y ears) 2012 49,6 58,1 68,2 77,7 2,0
1,5
Life Ex pectancy at Birth - Female (y ears) 2012 51,2 59,1 70,1 81,1 1,0
Crude Birth Rate (per 1,000) 2012 43,2 33,3 21,4 11,3 0,5
Crude Death Rate (per 1,000) 2012 15,7 10,9 7,6 10,3 0,0

2004

2005

2006
2007
2008
2009
2010
2011
2012
Infant Mortality Rate (per 1,000) 2012 109,5 71,4 40,9 5,6
Child Mortality Rate (per 1,000) 2012 181,8 111,3 57,7 6,7 Congo, Dem. Republic
Total Fertility Rate (per w oman) 2012 6,0 4,2 2,6 1,7 Africa
Maternal Mortality Rate (per 100,000) 2006-2010 540,0 415,3 240,0 16,0
Women Using Contraception (%) 2012 19,2 34,5 62,4 71,4

Health & Nutrition Indicators

Phy sicians (per 100,000 people) 2004-2010 11,0 49,2 103,7 291,9 Life Expectancy at Birth
Nurses (per 100,000 people)* 2004-2009 53,0 133,0 168,7 734,3 (years)
Births attended by Trained Health Personnel (%) 2006-2010 80,4 53,7 64,3 ...
Access to Safe Water (% of Population) 2011 46,2 67,8 86,5 99,1 71
61
Access to Health Serv ices (% of Population) 2000 59,0 65,2 80,0 100,0 51
Access to Sanitation (% of Population) 2011 30,7 40,2 56,8 96,1 41
31
Percent. of Adults (aged 15-49) Liv ing w ith HIV/AIDS 2011 4,6 0,9 0,5 21
Incidence of Tuberculosis (per 100,000) 2011 387,0 234,6 146,0 23,0 11
1
Child Immunization Against Tuberculosis (%) 2011 67,0 81,6 83,9 95,4
2004
2005
2006
2007
2008
2009
2010
2011

Child Immunization Against Measles (%) 2011 71,0 76,5 83,7 93,5 2012
Underw eight Children (% of children under 5 y ears) 2006-2011 28,2 19,8 17,0 1,4 Cong o, Dem. R epublic

Daily Calorie Supply per Capita 2009 … 2 481 2 675 3 285 Africa

Public Ex penditure on Health (as % of GDP) 2010-2011 2,9 5,9 2,9 7,4

Education Indicators
Gross Enrolment Ratio (%)
Primary School - Total 2009-2012 96,0 107,0 107,8 102,7
Infant Mortality Rate
Primary School - Female 2009-2012 89,0 103,1 106,2 102,3 ( Per 1000 )
Secondary School - Total 2009-2012 39,8 46,3 66,4 100,4
Secondary School - Female 2009-2012 29,4 41,9 65,1 100,0 140
120
Primary School Female Teaching Staff (% of Total) 2009-2012 27,0 39,2 58,6 81,3 100
Adult literacy Rate - Total (%) 2007 61,2 71,5 80,2 … 80
Adult literacy Rate - Male (%) 2007 76,9 78,4 85,9 … 60
40
Adult literacy Rate - Female (%) 2007 46,1 64,9 74,8 … 20
Percentage of GDP Spent on Education 2008-2010 2,5 5,3 4,5 5,5 0
2004
2005
2006
2007
2008
2009
2010
2011
2012

Environmental Indicators
Land Use (Arable Land as % of Total Land Area) 2011 3,0 7,6 10,7 10,8 Cong o, Dem. R epublic Africa
Annual Rate of Deforestation (%) 2000-2009 0,4 0,6 0,4 -0,2
Forest (As % of Land Area) 2011 67,9 23,0 28,7 40,4
Per Capita CO2 Emissions (metric tons) 2009 0,0 1,2 3,0 11,6

Sources : AfDB Statistics Department Databases; World Bank: World Development Indicators; last update : october 2013
UNAIDS; UNSD; WHO, UNICEF, WRI, UNDP; Country Reports.
Note : n.a. : Not Applicable ; … : Data Not Available.

I
Annex II. Table of ADB Portfolio in the Country (updated on 23 September 2013)
Project Name Source of Approval Signature Effective Closing Amount Total % % sect. Status
Financing Date Date Date Date Approved Disbursed Disbursed
AGRICULTURE SECTOR 49.46 2.56 5.2% 11.99%
1 RURAL INFRASTR. DEV. SUPPORT PROJECT ADF Grant 10.11.2011 20.01.2012 20.01.2012 31.12.2017 49.46 2.56 5.2% NPP/NPPP
TRANSPORT AND ICT SECTOR 142.15 18.16 12.8% 34.45%
2 PRIORITY PROJECT – AIR SAFETY ADF Grant 27.09.2010 02.11.2010 02.11.2010 31.12.2015 88.60 18.04 20.4% NPP/NPPP
3 BATSHAM ROAD REHABILITATION PROJECT ADF Grant 13.06.2012 07.08.2012 07.08.2012 31.12.2017 53.55 0.12 0.2% NPP/NPPP
WATER AND SANITATION SECTOR 70.00 40.36 57.7% 16.96%
4 SEMI-URBAN DWSS PROJECT ADF Grant 06.06.2007 09.08.2007 04.04.2008 31.12.2013 70.00 40.36 57.7% PPP
PRIVATE SECTOR 0.63 0.60 95.2% 0.15%
5 ADVANS BANQUE (CONGO) ADB Loan 04.02.2008 24.11.2008 09.04.2009 31.05.2013 0.63 0.60 95.2% NPP/NPPP
ENERGY SECTOR 105.39 14.35 13.6% 25.54%
6 INGA-PMEDE HYDROELECTRIC REHAB ADF Grant 18.12.2007 10.04.2008 10.04.2008 31.12.2014 35.70 13.83 38.7% NPP/NPPP
PROJECT
7 PERI-URBAN/RURAL ELECTRIFICATION FSF 15.12.2010 10.03.2011 10.03.2011 31.12.2015 60.00 0.11 0.2% NPP/NPPP
PROJECT
8 PERI-URBAN /RURAL ELECTRIFICATION ADF Grant 15.12.2010 10.03.2011 10.03.2011 31.05.2015 9.69 0.41 4.2% NPP/NPPP
PROJECT
SOCIAL SECTOR 15.00 10.15 67.7% 3.64%
9 POST-CONFLICT SOCIO-ECONOMIC ADF Grant 24.07.2007 09.08.2007 09.08.2007 30.06.2013 15.00 10.15 67.7% PPP
REINTEGRATION SUPPORT
MULTISECTOR SECTOR 30.00 4.54 15.1% 7.27%
10 ADF Grant 25.04.2012 29.05.2012 29.05.2012 31.12.2015 10.00 0.67 6.70% NPP/NPPP
PUB. FIN. MODERNIZ. SUPPORT PROJECT
11 MOBILIZATION HUM. RES. PUBLIC ADMIN ADF Grant 21.01.2011 04.05.2011 05.05.2011 31.12.2015 20.00 3.87 19.35% NPP/NPPP
National Operations 412.63 90.72 21.99%
FSF WINDOW III 7.13 1.36 19.1%
1 NAT. STATISTICS DEV. STRATEGY 19.04.2011 24.08.2011 24.08.2011 30.11.2013 0.26 0.14 53.85% NPP/NPPP
2 INSTITUTIONAL CAPACITY-BUILDING FOR 11.07.2011 24.08.2011 24.08.2011 30.11.2013 0.28 0.20 71.43% NPP/NPPP
MINISTRY OF EDUCATION
3 SUPPORT FOR FSF PROJECTS 01.03.2011 30.09.2013 0.15 0.12 80.00% NPP/NPPP
IMPLEMENTATION UNIT
4 SUPPORT FOR MACRO-ECONOMIC 24.11.2010 31.12.2012 0.59 0.46 77.97% NPP/NPPP
MANAGEMENT
5 INSTITUTIONAL CAPACITY-BUILDING (Public 26.03.2010 31.12.2012 0.48 0.18 37.50% NPP/NPPP
Finance)
6 INSTITUTIONAL CAPACITY-BUILDING 26.03.2010 30.09.2013 0.34 0.26 76.47% NPP/NPPP
(Diaspora)
7 CREATION OF INGA SITE AGENCY 17.04.2013 31.05.2013 31.05.2013 30.06.2015 1.99 0.00 0.00% NPP/NPPP
8 INGA3 -INGA/PATCD DEVELOPMENT 13.05.2013 31.05.2013 31.05.2013 30.06.2015 1.50 0.00 0.00% NPP/NPPP
PROJECT

II
 Project Name Source of Approval Signature Effective Closing Amount Total % % sect. Status
Financing Date Date Date Date Approved Disbursed Disbursed
9 REFORMS STEERING CAPACITY-BUILDING 18.07.2013 31.12.2014 1.54 0.00 0.00% NPP/NPPP

CBFF 25.11 8.42 33.5%

1 PHASING OUT SLASH AND BURNING 04.11.2009 20.11.2009 20.11.2009 31.12.2013 0.29 0.28 96.35% NPP/NPPP
FARMING
2 MANAGEMENT AND SUSTAINABLE 11.11.2009 20.11.2009 27.11.2009 31.12.2013 0.96 0.89 92.71% NPP/NPPP
EXPLOITATION AND INNOVATION
3 QUANTIFIYING CARBON STOCK 13.11.2009 29.01.2010 08.02.2010 30.06.2013 1.08 0.81 75.00% NPP/NPPP
4 SANKURU FAIR TRADE CARBON INITIATIVE 07.04.2010 14.02.2011 10.03.2011 01.05.2015 1.15 1.04 90.43% NPP/NPPP
5 CONSERVATION INTERNATIONALE 09.06.2010 26.07.2001 10.11.2011 28.02.2014 1.18 0.15 12.71% NPP/NPPP
FOUNDATION
6 ECOMAKALA 12.07.2011 31.08.2011 31.08.2011 31.03.2014 2.18 0.42 19.27% NPP/NPPP
7 REDD AGROFORESTRY SOUTH KWAMOUTH 12.07.2011 31.08.2011 31.08.2011 31.03.2014 2.17 0.39 17.97% NPP/NPPP
8 ISANGI PILOT REDD PROJECT 19.05.2011 08.06.2011 17.08.2011 31.03.2014 2.00 0.39 19.50% NPP/NPPP
9 CIVIL SOCIETY AND GOVERNANCE 13.07.2011 31.08.2011 15.10.2011 31.03.2014 2.79 0.29 10.39% NPP/NPPP
CAPACITY BUILDING
10 LUKI REDD PROJECT 22.07.2011 31.08.2011 31.08.2011 31.03.2014 2.01 0.00 0.00% NPP/NPPP
11 MAMBASA REDD PROJECT 27.04.2011 08.06.2011 17.08.2011 31.03.2014 2.58 0.93 36.05% NPP/NPPP
12 INTEGRATED EXPLOITATION OF JAFRO 06.12.2011 29.02.2012 29.02.2012 31.12.2015 0.11 0.06 54.55% NPP/NPPP
PLANT
13 VAMPEEN DEVELOPMENT OF AFRICAN 16.11.2011 09.12.2011 30.12.2011 31.12.2014 1.37 0.96 70.07% NPP/NPPP
MEDICINE
14 SUPPORT FOR AGRO-FORESTRY 02.04.2012 12.06.2012 30.08.2012 28.02.2015 5.24 1.81 34.54% NPP/NPPP
DEVELOPMENT
Forestry Investment Fund (PIF) 0.52 0.19 36.5%
1 Forestry Investment Plan PIF 19.06.2012 06.10.2012 06.10.2012 31.12.2013 0.52 0.19 36.54% NPP/NPPP
MULTINATIONAL 58.46 16.92 28.9%
1 Study on bridge between Kinshasa (DRC) and ADF Grant 03.12.2008 13.05.2009 13.05.2009 30.06.2014 3.59 1.64 45.68% NPP/NPPP
Brazzaville (Congo Republic)
2 Study of Ousso-Bangui-Ndjamena Road and river ADF Grant 01.12.2010 29.04.2011 29.04.2011 31.12.2014 0.44 0.00 0.00% NPP/NPPP
navigation
3 LAKE TANGANYIKA DEV. PROG. (DRC) ADF Loan 17.11.2004 01.02.2005 24.11.2006 31.12.2013 6.79 4.76 70.10% PPP
ADF Grant 17.11.2004 01.02.2005 01.02.2005 31.12.2013 4.96 3.15 63.51%
4 NELSAP INTERCONNECTION PROJECT ADF Grant 27.11.2008 28.05.2010 28.05.2010 31.12.2014 27.62 0.38 1.38% PPP
5 INGA and Related Interconnections Study ADF Grant 30.04.2008 07.08.2008 07.08.2008 31.10.2013 9.51 6.99 73.50% NPP/NPPP
6 Boali Electricity Networks Interconnection don FAD 19.09.2012 20.02.2013 20.02.2013 31.12.2017 5.55 0.00 0.00% NPP/NPPP
GRAND TOTAL 503.33 117.42 23.33%

III
Annex III. Major Related Projects Financed by the Bank and Other Development Partners
/ Donor Group / Main Sub- Financing Total Costs
Sector / 2005 2006 2007 2008 2009 2010 2011 2012
Actual Actual Actual Actual Actual Actual Actual Actual Actual
Payments Payments Payments Payments Payments Payments Payments Payments Payments
ADB - - 11,016 10,051,539 274,050 30,476,323 16,106,049 18,100,779 75,019,756
-- Air transport (1) - - - - - - 15,339,990 2,375,063 17,715,053
-- Road transport (1) - - 11,016 10,051,539 274,050 30,476,323 766,060 15,725,717 57,304,704
World Bank 79,646,985 102,459,047 64,670,519 83,895,763 29,872,005 45,443,247 90,685,346 69,020,198 565,693,110
- Transport policy and 3,970,613 4,914,820 849,309 1,639,936 1,466,677 4,168,566 3,209,898 2,538,827 22,758,645
administrative
management (4)
-- Air transport (1) - - 13,800 4,200,000 41,524 186,923 18,864,016 12,316,668 35,622,931
- Rail transport (3) 4,890,772 4,960,330 711,179 5,485,896 41,524 186,923 18,864,016 12,316,668 47,457,307
- Water transport (4) 13,783,586 9,350,708 6,192,774 7,618,627 41,524 186,923 18,864,016 12,316,668 68,354,825
- Road transport (11) 57,002,014 83,233,189 56,903,459 64,951,305 28,280,757 40,713,911 30,883,401 29,531,367 391,499,403
Belgium 10,899,744 11,191,642 11,727,793 23,778,228 12,305,756 15,953,912 12,629,744 13,241,295 111,728,112
--Transport policy and - 37,746 6,013 - 47,901 60,222 1,205 - 153, 087
administrative management (3)
--Storage (1) - - 535,678 - - - - - 535,678
--Air transport (1) - - - - - - - 805,418 805,418
--Rail transport (2) - - - - 303,124 2,611,525 6,182,631 213,043 9,310,322
--Water transport (7) 623,475 754,919 1,957,499 1,574,685 38,446 3,711,134 64,282 663,779 9,388,219
--Road transport (19) 10,276,269 10,398,976 9,228,603 22,203,543 11,916,286 9,571,031 6,381,626 11,559,054 91,535,388
China - - - - 14,858,580 151,430 - 32,800,000 47,810,011
--Transport policy and - - - - - 151,430 - - 151,430
administrative management(1)
--Air transport (2) - - - - 14,858,580 - - 32,800,000 47,658,580
United Kingdom 14,571,846 14,862,405 7,995,903 13,164,610 6,563,269 36,204,367 22,821,205 14,711,185 130,894,792
--Road transport (11) 14,571,846 14,862,405 7,995,903 13,164,610 6,563,269 36,204,367 22,821,205 14,711,185 130,894,792
European Union 18,359,372 10,762,220 17,013,829 38,413,931 26,537,067 40,214,472 17,128,700 32,075,894 200,505,486
--Water transport (1) - - - - - - 566,210 3,563,884 4,130,094
--Road transport (11) 18,359,372 10,762,220 11,325,060 12,189,641 26,537,067 40,214,472 16,562,490 28,512,010 164,462,332
Main undistributed sub-sector - - 5,688,770 26,224,290 - - - - 31,913,060
(1)
TOTAL (81) 123,477,947 139,275,314 101,419,060 169,304,071 90,410,728 168,443,752 159,371,044 179,949,351 1,131,651,267

IV
Annex IV: Map of Project Area

V
 TECHNICAL ANNEX No. 1: DETAILED PROJECT COSTS
Table 1.1
Detailed Costs by Component
USD Million UA Million
Components For. For.
L.C. Total L.C. Total
Exch. Exch.
A – ROAD WORKS 68.71 17.18 85.89 45.35 11.34 56.69
Rehabilitation of NR1 between Lovua and Tshikapa
including electrification by solar-powered lamp-posts
along the section crossing Tshikapa town (9.2 km/NR1)
and provision for laying of optic fibre 53.99 13.50 67.49 35.64 8.91 44.55
Construction of bridge over the Kasaï River (160 ml)
with provision for laying of optic fibre - Repair of two
existing metallic bridges in Tshikapa town (Kasaï: 156
ml and Tshikapa : 48 ml) 11.76 2.94 14.70 7.76 1.94 9.70
Environmental impact mitigation works and measures 0.05 0.01 0.06 0.03 0.01 0.04
Control and supervision of road works 2.82 0.71 3.53 1.86 0.47 2.33
awareness campaign on HIV/AIDS, environmental
protection, road safety and on the dangers linked to
mining. 0.09 0.02 0.11 0.06 0.01 0.07
B – RELATED WORKS 2.11 0.54 2.65 1.40 0.34 1.74
Rehabilitation of 100 km of related rural feeder roads. 0.94 0.23 1.17 0.62 0.15 0.77
Rehabilitation of social facilities (schools, health centres
including 2 wards in Tshikapa Referral Hospital) 0.18 0.05 0.23 0.12 0.03 0.15
Rehabilitation of commercial infrastructure (2 markets:
Dibumba 1 at crossing of Tshikapa town and Katanga on
NR1) 0.18 0.05 0.23 0.12 0.03 0.15
Sinking of bore holes and protection of water sources 0.06 0.02 0.08 0.04 0.01 0.05
Control/supervision of related works 0.75 0.19 0.94 0.50 0.12 0.62
C – INSTITUTIONAL SUPPORT AND PROJECT
MANAGEMENT 0.80 0.20 1.00 0.53 0.13 0.66
Road safety audit on NR1 (from Boma to Batshamba) 0.19 0.05 0.24 0.13 0.03 0.16
Project accounts and financial audit 0.12 0.03 0.15 0.08 0.02 0.10
Support for IU operation (Allowances for 3 Experts
including: 1 Structural Engineer; 1 Monitoring and
Evaluation Expert and 1 Accountant) and Current
operating expenses (office materials, fuel, cleaning,
allowances /1 Driver & 3 counterparts & mission
expenses) 0.24 0.06 0.30 0.16 0.04 0.20
Monitoring and evaluation of project’s socio-economic
impact 0.21 0.05 0.26 0.14 0.03 0.17
Logistics support to IU (1 4WD vehicle) 0.04 0.01 0.05 0.02 0.01 0.03
D - EXPROPRIATIONS 0.23 0.06 0.29 0.15 0.04 0.19
Compensation of project affected persons 0.23 0.06 0.29 0.15 0.04 0.19
BASE COST 71.85 17.98 89.83 47.43 11.85 59.28
Physical contingencies 7.18 1.80 8.98 4.74 1.19 5.93
Price escalation 5.18 1.29 6.47 3.42 0.85 4.27
TOTAL 84.21 21.07 105.28 55.59 13.89 69.48

VI
 Table 1.2
Detailed Costs by Expenditure Category
USD Million UA Million
Expenditure Category
For. Exch. L.C. Total For. Exch. L.C. Total
A - GOODS 0.04 0.01 0.05 0.02 0.01 0.03
Logistics support to IU: procurement of one
4WD pick-up vehicle 0.04 0.01 0.05 0.02 0.01 0.03
B - WORKS 67.16 16.80 83.96 44.33 11.08 55.4
Rehabilitation of NR1 (Louva-Tshikapa
section) including electrification, by solar-
powered lamp-posts, along the section
crossing Tshikapa town (9.2 km/NR1) and
provision for laying of optic fibre 53.99 13.50 67.49 35.64 8.91 44.55
Construction of bridge over the Kasaï River
(160 ml) with provision for laying of optic
fibre - Repair of the two existing metallic
bridges in Tshikapa town (Kasaï: 156 ml and
Tshikapa : 48 ml) 11.76 2.94 14.70 7.76 1.94 9.70
Environmental impact mitigation measures
including the planting of trees 0.05 0.01 0.06 0.03 0.01 0.04
Rehabilitation of 100 km of related rural
feeder roads; 0.93 0.23 1.17 0.62 0.15 0.77
Rehabilitation of social facilities (schools,
health centres including 2 wards in Tshikapa
Referral Hospital) 0.18 0.05 0.23 0.12 0.03 0.15
Rehabilitation of commercial infrastructure (2
markets: Dibumba 1 at the crossing of
Tshikapa town and Katanga on NR1) 0.18 0.05 0.23 0.12 0.03 0.15
Construction of bore holes and protection of
water sources 0.06 0.02 0.08 0.04 0.01 0.05
C - SERVICES 4.30 1.08 5.38 2.85 0.70 3.55
Control and supervision of road works 2.82 0.71 3.53 1.86 0.47 2.33
Control/supervision of related works 0.75 0.19 0.94 0.50 0.12 0.62
Road safety audit on NR1 (from Boma to
Batshamba) 0.19 0.05 0.24 0.13 0.03 0.16
Accounts and financial audit of the project 0.12 0.03 0.15 0.08 0.02 0.10
Monitoring and evaluation of the project’s
socio-economic impact 0.21 0.05 0.26 0.14 0.03 0.17
Awareness campaign on HIV/AIDS,
environmental protection, road safety and on
the dangers linked to mining 0.09 0.02 0.11 0.06 0.01 0.07
Allowances for the 3 experts to be recruited to
support the EA (1 Structural Engineer, 1
Monitoring and Evaluation Expert and 1
Accountant) 0.12 0.03 0.15 0.08 0.02 0.10
D - MISCELLANEOUS 0.35 0.09 0.44 0.23 0.06 0.29
Compensation of project affected persons 0.23 0.06 0.29 0.15 0.04 0.19
Operational support for the EA Current
operating expenses (office materials, fuel,
cleaning, allowances /1 Driver & 3
counterparts & mission expenses 0.12 0.03 0.15 0.08 0.02 0.10
BASE COST 71.85 17.98 89.83 47.43 11.85 59.28
Physical contingencies 7.18 1.80 8.98 4.74 1.19 5.93
Price escalation 5.18 1.29 6.47 3.42 0.85 4.27
TOTAL 84.21 21.07 105.28 55.59 13.89 69.48

VII
TECHNICAL ANNEX No. 2: RATIONALE FOR WAIVING THE 10%
MINIMUM COUNTERPART CONTRIBUTION TO THE PROJECT
FINANCING

This section analyse the rationale for waiving the counterpart contribution of the Government
of the Democratic Republic of Congo for financing the Batshamba-Tshikapa Road
Improvement Project-Lovua-Tshikapa Section. The waiver aims to reduce to 0% the
Government’s contribution in exchange for the minimum rate of 10% required by the Bank
Group Eligible Expenditures Policy. It is based on three criteria defined by the above Bank
policy, especially related to cost-sharing. These three criteria are summarized below:

1. Country’s Commitment to Implement its Overall Development Programme

In 2001, the Government implemented a robust economic and structural reforms programme
which, coupled with efforts to consolidate political stability, contributed to economic
recovery, after a decade of decline. Real GDP growth averaged 5.8% over the 2002-2012
period. This positive result was obtained through an economic programme backed by the IMF
under an Extended Credit Facility concluded in December 2009. Furthermore, since 2006,
Government designed and implemented two national Growth and Poverty Reduction
Strategies – the ongoing strategy covers the 2011-2015 period.

2. Financing Allocated by the Country to Sectors Targeted by Bank Assistance

In the last five years, the Government of the DRC has made the building and construction
sector, in particular the rehabilitation and reconstruction of roads, the pillar of its public
investment policy. Thanks to a vast economic and social infrastructure development and
modernization programme launched with the aid of development partners, from 2005 to
March 2011, 1,419 km of paved roads were rehabilitated, another 130 km of roads paved,
3,554.40 km of earth roads opened/rehabilitated and many long-span bridges built. Public
investments earmarked for rehabilitation or construction works as well as those meant to
maintain minimum service on major roads of the national network are on the increase. They
rose from USD 33 million in 2008 to USD 126 million in 2009. This upward trend is offset
by the sheer immensity of needs evaluated at USD 4,500 million in the action plan for 2003-
2015, financed by the Government. More should be done to mobilize local resources to
finance road maintenance. The Fund’s resources grow by an average 10% yearly. In 2012,
the Fund collected nearly USD 85.83 million against projections of around USD 77.52
million, representing an achievement rate of 110.71%. The same year, the Fund financed
maintenance works to the tune of around USD 70.23 million, including maintenance of
general utility roads, agricultural feeder roads and transfers to provinces based on road
maintenance projects/programmes prepared by road agencies.

VIII
3. Country’s Budget Situation and Debt Level

Apart from 2010 when the budgetary surplus represented 3.7% of GDP, thanks mainly to the
benefits of debt relief after the country reached the HIPCI completion point in July 2010 and
the substantial increase in external support, the DRC witnessed chronic public finance
deficits. In the last couple of years, the overall budgetary deficit widened from 2.2% of GDP
in 2011 to 3.0% in 2012 attributable mainly to shrinking external contributions coupled with
high pressure especially of election-related expenses. While grants awarded to DRC
represented 14.1% of GDP in 2010, they were only 8.5% of GDP in 2011 and 2012.
Furthermore, the country’s fiscal situation can be negatively affected by the unfavorable
trend of its macro-economic position due mainly to lower international demand and
commodity prices and higher security expenditure.

With regard to debt, the DRC’s debt servicing is significantly reduced because it reached the
HIPC completion point, qualified for MDRI and its current debt policy is posited on the
requirement of concessionality of new loans. Under the HIPC Initiative, the country’s
external debt worth USD 10.8 billion was written off in July 2010. Debt service which
represented 43% of public revenue in 2009 fell to 6.4% in 2010 and 2.6% in 2011. However,
according to the IMF’s March 2013 report, the risk of a debt overhang in the DRC is still
high. The public debt situation in Congo is characterized by substantial internal debt arrears.

Successive portfolio reviews in the DRC and project completion reports show that a recurrent
generic challenge for all projects remains the payment of counterpart contribution by the
State. This situation not only blocks the implementation of projects but also negatively affects
portfolio performance. Since 2010, the Bank has contributed 100% of all costs incurred in
project implementation in the DRC, including PMR-RH, PADIR, PAM-FP and the Project to
Develop the Loange-Lovua Bridge Section of the Batshamba-Tshikapa Road.

In view of the foregoing, the waiver of the DRC’s 10% counterpart contribution to financing
of the Batshamba-Tshikapa Road Improvement Project-Lovua-Tshikapa Section is justified.

IX
TECHNICAL ANNEX No. 2: SUMMARY OF PROCUREMENT
ARRANGEMENTS

The table below provides a summary of procurement arrangements for each project’s
expenditures category using Bank’s Rules and Procedures and, if applicable, National
Competitive Bidding (NCB). Technical Annex B.5 shows details of procurement
arrangements.

Table 3.1: Summary of procurement arrangements (in UA '000 000)

UA '000 000
Project’s Expenditures Categories
Bank’s Rules and
NCB Total ADF
Procedures

1. Civil Works
1.1 Building works [0.42] 0.42 [0.42]
1.2 Infrastructure [10.80] 52.83 63.63 [10.80]
1.3 Upgrading and Maintenance [0.90] 0.90 [0.90]
2. Goods
2.1 Equipment & Machinery [0.04] 0.04 [0.04]
3. Consulting Services
4.1 Studies & Ingeniering [0.59] 0.59 [0.59]
4.2 Supervision [0.95] 2.50 3.45 [0.95]
4.3 Technical Assistance 0.11 0.11
4. Miscellanous
4.1 Compensation [0.22] 0.22 [0.22]
5.2 Running costs 0.12 0.12
Total 69.48 [13.92]
NB: Figures in brackets are amounts financed through ADF (Loan and Grant) and FSF (Grant).