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Implementation Completion Report (ICR) Review - Ma-secondary Roads

1. Project Data:   
ES Date Posted:
Project Name:
Ma-secondary Roads
Project Costs(US $M)
 194.1  149.5
Loan/Credit (US $M)
 57.6  57.6
Sector, Major Sect.:
Roads & highways,
Cofinancing (US $M)
 62.9  46.1
L/C Number:
Board Approval (FY)
Partners involved
Japan Bank for International Cooperation 
Closing Date
06/30/2000 06/30/2002
Prepared by: Reviewed by: Group Manager: Group:  
Kavita Mathur
John R. Heath Alain A. Barbu OEDST

2. Project Objectives and Components:

a. Objectives
The objectives of the project were to:

  • address core needs of the rural poor by improving access to social services and to markets;
  • accelerate private sector development by reducing regulatory constraints in road transport and by increased resort to road works and supervision by contract;
  • develop road management expertise in the new regional directorates; and
  • improve road safety.

b. Components
The main components of the project were:

    • improving 1,133 kilometers of priority unpaved roads to all weather gravel standard, constructing 96 km of paved roads, and finalizing the road reclassification (18.5% of actual costs);
    • improving 2,219 kilometers of paved branch roads (formerly classified in the secondary and tertiary road networks) by carrying out maintenance backlog resealing, structural overlays and/or widening works (73.4% of actual costs);
    • improving network management through technical support, planning and programming, training, and renewal of essential road maintenance equipment (2% of actual costs); and
    • streamlining the road safety organization and supporting priority actions (6% of actual costs).
Revised Components:
At the Mid-Term Review, the targets were modified and the loan agreement was amended accordingly. The new targets were:
    (a) rural roads: improvement of 1,000 kilometers instead of 1,133 kilometers; construction of 235 kilometers of paved roads instead of 96 kilometers;
    (b) classified paved roads: improvement of 2,660 kilometers (of which 825 km to be financed by the Bank, the remainder by the Japan Bank for International Cooperation), instead of 2,219 kilometers;
    (c) equipment: amount reduced and limited to equipment needed for snow removal and emergency works only.

c. Comments on Project Cost, Financing and Dates
After disbursing about US$2.3 million from US$ 57.6 million loan, the remainder of the loan was converted to a single currency loan denominated in French Francs on June 9, 1998, and then converted to Euro on January 1, 2002.

3. Achievement of Relevant Objectives:

The objective of the project to improve the accessibility of rural poor to social services and markets was achieved. About 232 km of paved roads (99% of revised targets) were constructed and 714 km of unpaved roads (71%) were rehabilitated. The beneficiary survey reports decrease in time to reach health centers, schools and administrative centers. Road closures in rural roads decreased from 50,000 km-day before project to 3,000 km-day by the end of the project. The proportion of road network in good or acceptable condition increased from 63% in 1996 to 66% in 2000.
1. The objective relating to private sector development was largely met. A law to liberalize the transport market was passed. The project also increased private sector participation in road maintenance.
2. The objective of developing road management expertise in the new regional directorates was largely achieved. The Directorate of Road and Road Traffic (DRCR ) expanded the number of regional directorates and delegated some technical functions to the regional directorates. Technical assistance was provided for developing procedures, preparing tools and guidelines that would help govern the transfer of responsibility to regional directorates.
3. The objective of improving road safety was partially achieved. A substantial number of black spots (43) have been made safer or eliminated. However, the government's road safety organization was not improved. The intended "safety-coordinating agency" coordinating the efforts of key stakeholders (police, transport, roads, health, and insurance) was not established.

4. Significant Outcomes/Impacts:

Significant progress was made in areas relating to the development of private sector in road maintenance and road transport industry. With private sector participation in road maintenance, there has been substantial reduction in the unit costs of road maintenance works.
  • DRCR is carrying out environmental assessments of rural roads projects.
  • Development of an integrated financial management system to improve budget preparation, investment planning and programming.
  • The road works have produced substantial benefits. The re-estimated economic rates of return are in the range of 30-50%.

  • 5. Significant Shortcomings (include non-compliance with safeguard features):

    Concurrently with the Board approval of the project, the Ministry of Equipment (MOE) launched a countrywide "National Rural Roads Program" (NRRP) which hampered initial implementation of the project. The government should have integrated the proposed Bank project into NRRP instead of treating it as a separate investment.
    1. Lack of commitment to create a high-level interministerial commission on road safety.
    6. Ratings:ICROED ReviewReason for Disagreement/Comments
    Institutional Dev.:
    Bank Performance:
    Borrower Perf.:
    SatisfactorySatisfactoryThe overall borrower performance is rated "satisfactory". It should be noted that the implementation agency performance was poor until the Mid-Term Review. The implementing agency was slow to set in motion the projects technical assistance and institutional components.
    Quality of ICR:

    7. Lessons of Broad Applicablity:

    With the change in government leadership, much discussion is needed with new authorities to give them ownership of the project, or to modify the project if necessary.
    • To improve monitoring of the project, it is critical that the responsibility of producing and updating performance indicators should be assigned to a single unit or individual within the implementing agency.
    • A liberalized transport market without properly functioning regulatory institutions is inadequate. The Bank should consider it essential that the policy reforms it endorses are adequately supported by follow-up technical assistance in building regulatory capacity.

    8. Audit Recommended?  No


    9. Comments on Quality of ICR:

    The ICR provides a good discussion of the implementation experience and outcome of the project. This discussion is further strengthened by the analysis of the results of the Beneficiary Survey and Stakeholders Workshop.

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