|1. Project Data:
ICR Review Date Posted:
|Third Phase Of The Road Development Program
Project Costs(US $M)
Loan/Credit (US $M)
Cofinancing (US $M)
Board Approval Date
|Roads and highways (100%)|
|Rural services and infrastructure (40% - P)
Other urban development (20% - S)
Infrastructure services for private sector development (20% - S)
Administrative and civil service reform (20% - S)|
||ICR Review Coordinator:
||Judyth L. Twigg
|2. Project Objectives and Components:|
a. Objectives:This project was the third phase of the three-phased Road Development Program Adaptable Program Loan.
The first phase (P002970) was approved on June 29, 1999 for US$90 million and closed on June 30, 2008. The objectives of the first phase were to improve access to rural areas and economically productive areas and to gradually build up road sector planning and management capability (PAD p. 3).
The second phase (P065436) was approved on July 3, 2001 for US$64.5 million and closed on June 30, 2008. The objectives of the second phase were to to improve access to rural areas and economically productive areas and to progressively continue build up sustainable road sector planning, design and program management capability, as well as road safety management (PAD p. 6) .
The project development objectives of the third phase as stated in the Credit Agreement (p. 14) and the Project Appraisal Document (PAD p. 5) were "to improve access to rural areas and economically productive areas and to build up sustainable road sector planning, design and program management capability including road safety management."
b. Were the project objectives/key associated outcome targets revised during implementation?
c. Components:Original Components
Component 1: Civil works for upgrading, rehabilitation and reconstruction of the following national roads (appraisal estimate US$113.4 million, actual cost US$224.0 million):
(i) Upgrading of about 125 km of the Soroti-Lira road to paved (bitumen) standards (appraisal estimate US$47.0 million, actual cost US$103.5 million);
(ii) Upgrading of about 68 km of the Kampala-Gayaza-Zirobwe-Wobulenz road (appraisal estimate US$31.2 million, actual cost US$57.7 million);
(iii) Rehabilitation and re-graveling of about 91 km on Atiak-Moyo road (appraisal estimate US$10.9 million, actual cost US$8.9 million); and
(iv) Reconstruction and upgrading of the 57 km Busega-Mityana road (appraisal estimate US$24.3 million, actual cost US$53.9 million).
Component 2: Civil works for building construction (appraisal estimate US$7.5 million, actual cost US$0.0 million). Construction of headquarters building for the Ministry of Works and Transport (MOWT) and the Road Authority.
Component 3: Roads construction supervision services (appraisal estimate US$5.4 million, actual cost US$9.5 million). Supervision services for roads referred to in Component 1.
Component 4: Detailed design of about 300km of upgrading of district gravel roads and reclassifying to national road standards (appraisal estimate US$1.6 million, actual cost US$1.0 million). Consultant services for the execution of full feasibility studies on the upgrading of 300 km of district gravel roads.
Component 5: Feasibility studies and selected design of about 600km for upgrading of priority national roads (appraisal estimate US$2.0 million, actual cost US$2.5 million).
Component 6: Institutional support and establishment of the Road Authority (appraisal estimate US$3.1 million, actual cost US$2.2 million).
As part of a November 11, 2009 restructuring, some of the components were dropped primarily due to the high bids received on the civil works contracts, reallocation of credit proceeds and extension of the closing date. The project development objective remained unchanged as agreement was reached with the Government of Uganda (GoU) that it would finance the components that were dropped. Key indicators were not revised.
(a) The Zirobwe-Wobulenzi (23km) was dropped from the Kampala-Gayaza-Zirobwe-Wobulenzi road;
(b) The reconstruction of the Busega-Mityana road (57km) was dropped from the credit, but funded by the Government.
(c) The rehabilitation and re-graveling of Atiak-Moyo road (91km) was dropped. The scope of work was reduced to only design. The civil works were to be funded by the Government.
Component 2: Civil works for construction of the Uganda National Roads Authority headquarters building were dropped.
Component 3: The supervision services under Component 1 were dropped, and the Government committed to finance the corresponding consultancy services.
Component 4: Detailed designs on total length of roads were slightly increased to 312 km from the planned 300 km.
Component 5: Feasibility studies and engineering designs were reduced from 600 km to 300 km.
d. Comments on Project Cost, Financing, Borrower Contribution, and DatesProject Cost and Financing: The final project cost at completion was US$239 million against the appraisal estimate of US$133 million, an increase of 80 percent. The global economic situation affected the prices of inputs, leading to an increase in actual project cost. The price of a barrel of oil was US$43.03 at appraisal in August 2004. The price in November 2006, 28 days prior to opening of bids, was US$58.48, a 26 percent increase from the cost at appraisal. During the implementation of the civil works contracts, the price of a barrel of oil continued an upward trend with a peak of US$133.90 in July 2008. The average price during the execution of the civil works contracts was US$77.35, which is 32.3 percent above the price 28 days prior to bid opening or 80 percent above the price at appraisal.
The actual IDA credit/grant was SDR 73.2 (US$116.4 million equivalent), compared to the appraisal amount of SDR 72.8 (US$107.6 million equivalent).
Borrower Contribution was US$122.9 million against the appraisal commitment of US$25.4 million.
Dates: The project was restructured three times.
- An April 25, 2007 restructuring amend the Credit to 100 percent financing by IDA because of a lack of counterpart funding from the Government.
- At a November 11, 2009 restructuring some of the components were dropped, primarily due to the high bids received on the civil works contracts. Also, the closing date was extended by 22 months from December 31, 2009 to October 31, 2011 due to delays experienced in procuring the civil works contracts.
- A January 12, 2011 restructuring reallocated funds in Category 3 (unallocated) to Categories 1 and 2 (works and services) so as to complete the remaining civil works contract for upgrading Kampala-Gayaza-Zirobwe road and the related supervision consultancy services; and to drop the requirement for completion of environmental and social assessment of the Busega-Mityana road that was dropped from Component 3 of the project.
|3. Relevance of Objectives & Design:|
a. Relevance of Objectives:Relevance of objectives: High.
The development objective remains highly relevant to the current Country Assistance Strategy (CAS) for the period FY2011-2015. It is fully aligned with the first and second strategic objectives of the CAS (CAS pp. 27, 32, 34) i.e. "promote inclusive and sustainable economic growth" and "enhance public infrastructure." It is pertinent to the CAS outcome of improved inter-connectivity for regional integration, and the CAS outcome of improved access to and quality of roads.
The project is consistent with country priorities. It is in line with the Road Sector Development Program (RSDP), which has two components: (i) a National Transport Master Plan (issued in November 2008) to be implemented by Uganda National Roads Authority (UNRA) (ICR p. 3), and (ii) the Ten-Year District, Urban, and Community Access Roads Investment Plan (PAD p. 9). The PAD does not provide the dates.
b. Relevance of Design:Relevance of design: Modest.
The PAD includes a clear statement of objectives. However, the project components did not fully support the achievement of the objectives. The components were focused on the civil works for upgrading, rehabilitation and reconstruction of roads, but the road safety aspect was not addressed adequately as part of planned project activities.
|4. Achievement of Objectives (Efficacy) :|
The objective to improve the access to rural areas and economically productive areas was substantially achieved. The ICR (p. 15) reports that the upgraded roads service rural parts of the country that have high levels of agricultural productivity.
- About 152 km of national gravel roads were upgraded to paved (bitumen) to meet national road Class II standard of width 6.0 meter and 1.5 meter shoulders (pedestrian walkways) compared to the appraisal target of 178 km. On the Soroti-Lira road, 123 km was upgraded compared to 125 km estimated at appraisal. For the Gayaza- Zirobwe road, 29 km was upgraded compared to 53 km estimated at appraisal.
- Only 15 km of the 72 km (original target) of damaged paved roads was reconstructed and widened to Class I (national roads standard). The revised target of 15 km was met.
- The average traffic growth for the four sections of the upgraded roads ranged from 11 percent to 16 percent.
The Busega-Mityana road and bridges on the Atiak-Moyo road were financed by the Government. According to the Project Team, the Busega-Mityana road rehabilitation has been completed and the road has been opened to traffic. On the seven bridges and ferry landings on Atiak Moyo road, six bridges have been completed but the approaches have not yet been reinstated. By the time of the writing of the ICR, the work was ongoing but with delays.
- The average travel time by bus on the 123 km Soroti-Lira Road was reduced from 140 minutes (baseline) to 100 minutes at project closure.
- The Vehicle Operating Cost (VOC) on Soroti-Lira road was reduced by 53% from 0.46 US$/vehicle km to 0.22.
The objective to build up sustainable road sector planning, design and program management capability including road safety management was modestly achieved.
- Uganda National Roads Authority (UNRA) was established. The Uganda National Roads Authority Bill was approved by Parliament on May 24, 2006, Board of Directors appointed on January 22, 2007, Executive Director appointed on October 31, 2007 and key positions filled by June 30, 2008. UNRA became functional on July 1, 2008.
- The project supported the preparation and launching of the National Transport Master Plan (NTMP). The ICR (p. 3) reports that the NTMP is being used as a guiding principle for making decisions relating to planning and development of transport projects in the country and in the Greater Kampala Metropolitan Area.
- A financial management system and internal audit function was established.
- Detailed design for upgrading of 300 km of district roads reclassified to national (bitumen) standard was prepared.
- The project provided training to Road Agency Formation Unit (RAFU ) staff in the application of road planning tools, specifically the Roads Economic Decision (RED) model and the Highway Development and Management Model (HDM4), to enable the staff to analyze data and use it for planning. Software licenses were also provided for the HDM4.
- Detailed design and tender documents were prepared for the two high priority roads, totaling 222 km. According to the project team the two roads were: (i) the Gulu-Atiak-Nimule road and (ii) the Vurra-Arua-Oraba road. These two roads connecting South Sudan and Eastern Democratic Republic of Congo (DRC) qualified for the detailed design as they are on international corridors and their traffic volumes were much higher compared to the rest of the roads on the government's list.
- Data collection on 10,000 km of national roads was completed.
The ICR does not provide evidence on improvement in road safety management. According to the Project Team, under the Second Road Development Program Project, Engineering Design Manuals and Specifications were prepared for: (i) traffic signs, (ii) road safety vision, and (iii) safety at road works. At design, the PAD did not have a specific set of activities for road safety, but the project simply implemented the recommendations from the manuals prepared under the second project to ensure that roads were constructed with enhanced road safety features.
At project appraisal, an economic analysis for investment on each of the project roads was carried out using the Highway Development and Management Model (HDM4). The consolidated Economic Rate of Return (ERR) was above 12 percent.
At project completion, the ERR was re-evaluated for the two roads that were upgraded—the Soroti-Lira and Kampala-Gayaza-Zirobwe roads.The ERR for the Soroti-Lira road was 15.6% compared to 21.3% at appraisal.
The ERR for the Kampala-Gayaza-Zirobwe road was 55.4% compared to 27.5% at appraisal. The annual daily traffic at project completion far exceeded the projected traffic at appraisal. The average traffic increased by is 8.16 percent at completion compared to the projected traffic growth rate of 5 percent at appraisal. For some categories of vehicles such as heavy trucks, vehicle traffic, which was not expected to increase, more than doubled in volume. The ICR (p. 33) reports that the scope of work of the completed project was substantially different from the scope work at appraisal. Among others, factors resulting from dualizations of the carriageway, relocations of utilities, and provision of pedestrian walkways are some of the additions to the original scope of work that contributed to higher ERRs.
The final project cost at completion was US$239 million against the appraisal estimate of US$133 million, an increase of 80 percent. The global economic situation affected the prices of inputs leading to an increase in actual project cost. The price of a barrel of oil was US$43.03 at appraisal in August 2004. The price in November 2006, 28 days prior to opening of bids, was US$58.48, a 26 percent increase from the cost at appraisal. During the implementation of the civil works contracts, the price of a barrel of oil continued an upward trend with a peak of US$133.90 in July 2008. The average price during the execution of the civil works contracts was US$77.35, which is 32.3 percent above the price 28 days prior to bid opening or 80 percent above the price at appraisal.
During the early years of implementation, there were issues relating to procurement (see section 9b below). After a long dialogue with the Borrower, the Directorate of Procurement was created and procurement improved substantially.
The Bank conducted regular supervision missions focusing on the quality and progress of works throughout the project implementation period. Issues that emerged during implementation were attended to efficiently and promptly.
Overall, efficiency is rated substantial.
a. If available, enter the Economic Rate of Return (ERR)/Financial Rate of Return at appraisal and the re-estimated value at evaluation:
* Refers to percent of total project cost for which ERR/FRR was calculated