AFRICAN DEVELOPMENT FUND

LANGUAGE : ENGLISH
ORIGINAL : FRENCH
DISTRIBUTION : LIMITED

PROJECT : Dakar-Diamniadio Highway Project

COUNTRY : Republic of Senegal

PROJECT APPRAISAL REPORT

Team Leader : Mr. Bamory TRAORE, Chief Transport Engineer, OINF.1, Extension 2223
Team Members : Mr. Moctar MBODJ, Principal Transport Economist, OINF.1, Extension 2348
Mr. Roger GAILLARD, Lead Infrastructure & PPP, OINF.0, Extension 2132
Mr. Leckram JOOTTUN, Environmentalist, OINF.1, Extension 2256
Mr. Mamady SOUARE, Principal Transport Engineer, SNFO
Mrs. Maïmouna SIDIBE-DIOUF, Infrastructure Specialist, SNFO,
Preparation
Mrs. S. BARA, Gender Specialist, OWAS.1, Extension 2397
Team
Mr. S. AMADOU, Legal Counsel, GECL, Extension 3333
Mr. M. DOUMBIA, Consultant, ORPF, Extension

Division Manager : Mr. A KIES, OINF.1, Extension 2282

Sector Director : Mr. Gilbert MBESHERUBUSA, OINF, Extension 2034
Regional Director : Mr. Frank PERRAULT, ORWB, Extension 2036

Mr. Massamba DIENE, ORQR.3, Extension 3395

Mr. Maleck AMARA, OINF.1, Extension 2497
Peer
Mr. Mohamed HASSAN, OPSM.3, Extension 2347
Reviewers Mrs. Niafatou SENOU, Consultant, OINF.2, Extension 2632
 TABLE OF CONTENTS
Pages
CURRENCY EQUIVALENTS, ACRONYMS AND ABBREVIATIONS, PROJECT INFORMATION SHEET, LISTS OF ANNEXES
AND TABLES, BASIC DATA, PROJECT LOGICAL FRAMEWORK, IMPLEMENTATION SCHEDULE, EXECUTIVE
SUMMARY ................................................................................................................................................................ i to viii

1 STRATEGIC ORIENTATION AND OBJECTIVES 1

1.1 Project links with country strategy and objectives 1
1.2 Justification for Bank intervention 1
1.3 Donor coordination 2

2 DESCRIPTION OF PROPOSED PROJECT 3

2.1 Project objectives 3
2.2 Project components 3
2.3 Technical options chosen and considered 4
2.4 Project type 5
2.5 Project cost and financing arrangements 5
2.6 Project area and beneficiaries 9
2.7 Participatory approach to project identification, design and implementation 9

2.8 Consideration of the Bank’s experience and lessons learnt in the project design 10
2.9 Key performance indicators 11

3 PROJECT FEASIBILITY 11
3.1 Economic and financial performance 11
3.2 Environmental and social impact 12

4 PROJECT IMPLEMENTATION AND MONITORING-EVALUATION 14

4.1 Implementation arrangements 14
4.2 Monitoring-evaluation 16
4.3 Governance 16
4.4 Sustainability 17
4.5 Risk management 17
4.6 Knowledge Development 18

5 LEGAL FRAMEWORK 18
5.1 Legal Instrument 18
5.2 Conditions for Bank Intervention 19
5.3 Compliance with Bank policies 20

6 CONCLUSIONS AND RECOMMENDATIONS 20

6.1 Conclusions 20
6.2 Recommendations 20

ANNEX I. Comparative socioeconomic indicators of the Country

ANNEX II. Table of adb portfolio in the country
ANNEX III MAP OF PROJECT AREA

TECHNICAL ANNEXES
 CURRENCY EQUIVALENTS
(April - 2009)
UA 1 = CFAF 736.928
UA 1 = US$ 1.49507
UA 1 = EUR 1.12344
US$1 = CFAF 492.906
EUR 1 = CFAF 655.957
FISCAL YEAR
1 January - 31 December

WEIGHTS AND MEASURES

1 kilogramme (kg)
1 metre (m)
1 kilometre (km)
1 square kilometre (km2)
1 hectare (ha)
= 2.205 lbs
= 3.28 feet
= 0.621 mile
= 0.3861 sq mile
= 2.471 ares

ACRONYMS AND ABBREVIATIONS

AATR Autonomous Road Works Agency
ADB African Development
ADF African Development Fund
AFD French Development Agency
AGETIP Public Interest Works Implementation Agency
APIX APIX Public Limited Company
BG Bituminous Gravel
BOT Build – Operate – Transfer
CETUD Dakar Urban Transport Study Centre
CFAF Franc of the African Financial Community
CG Crushed Gravel
CIB Consolidated Investment Budget
DDTH Dakar Diamniadio Toll Highway
DPA Highway Project Department
DPS Forecasts and Statistics Department
EU European Union
IDA International Development Association
IRI International Roughness Index
IRR Internal Rate of Return
MCA/MCC Millennium Challenge Account /Millennium Challenge Corporation
MEF Ministry of Economy and Finance
NEPAD New Partnership for Africa’s Development
Niayes Marshlands
ORB Open Road Barrier
PAD Autonomous Port of Dakar
PAP Persons Affected by the Project
PAST Transport Sector Adjustment Programme
PIA Direct Project Influence Area
PIS Pikine Irrégulier Sud (shanty town)
PRSP Poverty Reduction Strategy Paper
PST II Transport Sector Programme 2
PUD Diamniadio Urban Project
RA Resettlement Area
RN National Highway
SDSP Private Sector Development Strategy
SGBC Semi-Granular Bituminous Concrete
STAP NEPAD Infrastructure Short-Term Action Plan
USD United States Dollar
VDN Voie de Dégagement Nord (North Exit Road)
Veh/d Vehicles per day
WAEMU West African Economic and Monetary Union
 ii

1. Project Information Sheet

COUNTRY : Senegal
PROJECT NAME : Dakar-Diamniadio Highway Project
LOCATION : Dakar Region
BORROWER : Senegal
EXECUTING AGENCY : APIX -SA
52-54 rue Mohamed V, BP 430, CP 18524, Dakar-
Senegal; Tel (221) 338490555; Fax: (221)
338239489;
2. Financing Plan
Source Amount in UA Million Instrument
ADF 45.00 Project Loan
CONCESSIONARY COMPANY 75.15
GOV/OTHER DONORS 47.31
IDA 70.23 Loan
AFD 53.41 Grants
GOV 44.49
Total 335.60

3. Important Financial Information

ADF LOAN Currency Unit of Account (UA)
Interest Type Not Applicable
Interest Rate Margin Not applicable
Service Charge 0.75% per year on disbursed loan amount outstanding
Commitment Fee 0.5% on undisbursed loan amount 120 days after the signing of the Loan
Agreement
Other Charges Not Applicable
Maturity 50 years
Grace Period and Repayment of The Borrower shall repay the loan principal after a 10-year grace period
ADF Loan from the date of signature of Agreement over a forty (40)-year period at a
rate of one percent (1%) per year between the eleventh and twentieth years
of the said period and three percent (3%) per year thereafter.
FRR, NPV (baseline scenario) 20.16% and CFAF 66.13 billion
ERR (baseline scenario) CFAF 29.28% and CFAF 275.50 billion

4. Time Frame – Key Stages (expected)

Activities Beginning End
Project Preparation Mission 23/03/2008 07/04/2008
Approval of Project Concept Note 09/10/2008 22/10/2008
Joint Pre-Appraisal Mission with the Other Donors 23/11/2008 07/12/2008
Procurement Process Review 08/02/2009 04/04/2009
ADF Project Appraisal Mission 09/04/2009 27/04/2009
Internal Appraisal Report Review 21/04/2009 31/05/2009
ADF Loan Negotiation 08/06/2009 08/06/2009
Translation, Distribution and Approval of the Project by the ADF Board 24/05/2009 08/07/2009
Signature, Effectiveness and Fulfilment of the Conditions Precedent to Disbursement
of the ADF loan 08/07/2009 11/08/2009
nd
Note to Board for 2 Tranche of ADF Loan 01/02/2010 03/03/2010
First Disbursement 11/08/2009 10/09/2009
Last Disbursement 31/12/2013 31/12/2014
Completion 30/06/2012 30/07/2013
Last Repayment 12/08/2059 23/03/2060
 iii

LIST OF ANNEXES

Annexes

I. Comparative Socio-Economic Indicators of the Country

II. Table of the Bank’s Portfolio in the Country
III. Map of Project Area

LIST OF TABLES

No. TITLE Page

Table 1.1 : Impact of Transport Sector in GDP 2

Table 2.1 : Summary of Project Components 3
Table 2.2 : Alternative Routes Considered 4
Table 2.3 : Technical Options Chosen by Section
5
Table 2.4 : Summary Cost Estimate by Component for Entire Project 6
Table 2.5: Summary Cost Estimate of ADF Component 6
Table 2.6 : Summary Cost by Expenditure Category for Entire Project 6
Table 2.7 : Summary Cost by Expenditure Category for ADF Component 7
Table 2.8: Sources of Finance for Entire Project 7
Table 2.9: Sources of Finance for ADF Component 7
Table 2.10 : Expenditure Schedule by Component for Entire Project 8
Table 2.11 : Expenditure Schedule by Component for ADF Component 8
Table 2.12 : Expenditure Schedule by Source of Finance for Entire Project 8
Table 2.13 : Expenditure Schedule by Source of Finance for ADF Component 9
Table 2.14 : Expenditure Schedule by Source of Finance for ADF Component 9
Table 3.1 : Summary Outcomes of Economic and Financial Analysis 12
 iv

EXECUTIVE SUMMARY
Project Overview

1. The Dakar-Diamniadio Highway Construction Project concerns a length of 31.60

km. In the first phase, the Government, using its budget, financed the works on the Malick
Sy-Patte d’Oie-Pikine section (12 km) which should be completed by December 2009.
Subsequently, it initiated a process for the construction of the last 20 km between Pikine
and Diamniadio under a Public-Private–Partnership (PPP) with public and private funds on
the basis of a 30-year concession with the installation of toll stations. The route of the
highway runs across irregular, unserviced and flood-prone districts. The project will: (i)
restructure these districts, as well as develop and build houses and public utilities and
commercial infrastructure over a 165 ha resettlement area which will be fully serviced; and
(ii) close the uncontrolled refuse tip at Mbeubeuss in the Dakar region after identifying an
interim refuse disposal site and conducting studies on the construction of a waste burial
centre. Most of the people affected by the project (3350 families) will be rehoused in this
new resettlement area. The remaining 30% will receive cash compensation, as they have
requested.

2. The project will contribute to: (i) improvement in the overall operation of the
transport system to support the accelerated growth strategy put in place by Senegal; and
(ii) strengthening regional integration through better competitiveness of Dakar Port and
implementation of the sub-regional rules concerning facilitation of transport. Since the
Dakar-Diamniadio section forms part of the Dakar-Bamako-Ouagadougou-Niamey trans-
West African highway, it is the gateway to Dakar Port for trade with Mali and parts of the
other hinterland countries and Guinea. Specifically, the project will create a rapid link
between the heart of Dakar and Diamniadio, which is the gateway to the new economic
development pole, and will improve the living conditions of people living near the road as
well as those affected by the project

3. The project has 4 components, and will be implemented from July 2009 to May
2014. For Component A “Highway Construction” proposed for Bank financing, the
procurement process which, in February 2009, led to the selection of a concessionary
company, was considered acceptable by the Bank. The total project cost is estimated at UA
335.60 million, comprising UA 231.40 million in foreign exchange and UA 104.20 million in
local currency. For the financing of Component A (PPP), the contribution expected from the
private concessionary company is about 42% of the cost of the works, excluding
expropriation costs. The remaining 48% of the cost will be contributed by the Government
and donors (see Annex B1, which gives details on the sections as well as the logical
framework and key factors of the PPP). ADF contribution stands at UA 45 million.

4. The direct beneficiaries of the project will be the transport users of the Dakar region
and the inhabitants (300,000) of the Pikine Irrégulier Sud (PIS) district. The project will
reduce overall transport costs and improve urban mobility. It will improve the living
environment of the inhabitants of PIS by protecting their district from flooding, by facilitating
access to transport and security services (fire safety, for example) and by carrying out land
regularization. Similarly, the negative impacts of the existing refuse tip at Mbeubeuss on
pollution of the air, groundwater and market gardening will be eliminated. The project will
also benefit the entire sub-region because it will serve as access road to Dakar Port which
is one of the access poles from the hinterland of the sub-region to the outside world.
 v

Needs Assessment

5. The extremely rapid increase in Dakar’s population and the development of districts
have not been accompanied by any significant decentralization of economic and social
activities and an integrated transport strategy. This has an increasingly negative impact on
the country’s economic development given the importance, on GDP formation, of the
services and industrial sectors, which are mainly concentrated in Dakar (85% of economic
activity is concentrated in Dakar). The major projects initiated by the Senegalese
Authorities (new airport, special economic zone, Diamniadio industrial platform, the mineral
port, etc.) to support the accelerated growth strategy are mainly located in the Dakar
Region. The reduced travel time on entering and exiting Dakar will contribute to the
achievement of the objectives of this strategy.

Value Added for the Bank

6. This project is one of the first PPP projects in the road sub-sector. It is therefore in
keeping with the objectives of NEPAD which consist in promoting private sector
participation in the financing of infrastructure. Since this is the Bank’s first experience in an
operation involving private and public financing, the project will serve as a model to give
impetus to the PPP mechanism.

Knowledge Management

7. To effectively draw lessons from this project, a consultant (Egisroute) has already
been financed to provide project management assistance. For specific issues relating to the
legal and financial aspects of the PPP, the consultant will rely on the appropriate
specialized APIX advisers (Norton Rose and Benjamin de Rothschild firm). In order to
establish the key impact indicators prior to project start up and their assessment during,
and at the end of the project, a consultant will be recruited. Information and knowledge will
be managed by the ‘Monitoring-Evaluation Unit’ of APIX and will be disseminated through
the Websites of APIX and the donors (AFD, ADB and WB) and in sensitization workshops
organized by APIX.
 vi

SENEGAL: Dakar-Diamniadio Highway Project

Project Logical Framework
Start-up Date : July 2009
Completion Date : December 2014
Design Team : Messrs. B. TRAORE, M. MBODJ, M. SOUARE, SNFO, OINF.1, R. GAILLARD, OINF.0
EXPECTED OUTCOMES PERFORMANCE INDICATORS INDICATORS OF OBJECTIVES AND TIMEFRAME ASSUMPTIONS
HIERARCHY OF by sectors and REACH Source and Method RISKS
OBJECTIVES corresponding themes
GOAL Impact Beneficiaries Impact Indicators 1.1 50% increase in the length of the network in good
Improve the general 1.1. Transport system 1.1. Countrywide 1.1 Rate of national road network condition between 2000 and 2015by 2014 1.1. Non consolidation of achievements
operation of the transport reformed and state of the . in good condition 1.2 Urban mobility index increases by 30% between of PST2 and delays in PAMU project
system to support the road network improved. 1.2. Sub-region 1.2 Urban mobility index in Dakar 2002 and 2015 implementation
Accelerated Growth 1.3 Growth of port traffic 1.3 Traffic through Dakar Port concerning neighbouring 1.2. Non-application of regional
Strategy and promote concerning neighbouring countries countries (Mali, Guinea) increases by 15%between 2002 regulations on transport facilitation and
regional integration. Sources: Ministries in charge of and 2015 control of axle load applied
Highways and Transport, CETUD, Mitigation Measures: (1) FERA which
PAD Sources: Ministries in charge of Highways and Transport, was one of the last reforms has been put
Methods: statistics prepared, CETUD, PAD in place, but it needs to be consolidated
specific surveys and studies by securing resources from fuel charges
Methods: Statistics prepared, specific surveys and studies and, after the two urban projects (UP),
PRECOL financed by the World Bank
whose works will start soon under the
PAMU should strengthen and broaden the
outputs of the two Ups, and (2) since
2003, with the support of donors including
the Bank, the ECOWAS Region States
have adopted the various texts relating to
facilitation and are committed to
implementing them by 30/12/2009

PROJECT OBJECTIVE 1. Travel time 1. Rate of reduction in travel time 1. By 2014, the average travel time on the stretch between 1. Toll avoidance and its impact on the
1. Provide a rapid link significantly reduced on the stretch between Dakar and Dakar and Diamniadio falls from 90 mn in 2008 2 hours to management of the concession during the
between the heart of Dakar 2. High economic Dakar Region Diamniadio 45 minutes; operational phase
and Diamniadio, gateway to operator satisfaction PIS district 2. Percentage of economic 2. Percentage of economic operators who consider
a new economic 3. living environment operators who consider transport as transport to Dakar as a major obstacle drops from 35% in 2. Mitigation Measures: Toll sensitivity
development pole and of the population and an obstacle; 2008 to 10% in 2014; studies show that even with a 20 to 30%
improve the living families improved 3. Number of people and families 3. As from 2014 (i) at least 200,000 people are not decline in traffic, the financial rate of
environment of people living . rehoused in more satisfactory exposed to flooding during the rainy season; (ii) 2000 return is still guaranteed
in the vicinity of the road. conditions families or 20 000 persons benefit from housing in fully
. Sources : Ministries in charge of serviced areas and the land situation regularized
Highways and Transport, APIX User
and Transporter Associations Sources : Ministries in charge of Highways and Transport,
Methods : statistics prepared, APIX, CETUD, Users and Transporters’ Associations;
surveys Methods: Statistics prepared, surveys on the highway and
project areas.
ACTIVITIES AND INPUTS 1. The Dakar- 1. Length of highway built under 1. 20 km of highway constructed and 25 km with toll 1. Government difficulties in mobilizing
 vii

EXPECTED OUTCOMES PERFORMANCE INDICATORS INDICATORS OF OBJECTIVES AND TIMEFRAME ASSUMPTIONS

HIERARCHY OF by sectors and REACH Source and Method RISKS
OBJECTIVES corresponding themes
1. Construction of Diamniadio highway PPP with toll equipment equipment ; counterpart funds to finance investments
highway and installation of has a 2x3 lane highway Space linked to 2. (i) Number of people 2. (i) 1200 families compensated in cash in 2009 and and pay compensation for expropriations.
toll equipment (UA 206.96 on the first 2 sections the Dakar- satisfactorily compensated, (ii) area 1700 families rehoused on the resettlement site between 2. Continuing support of population
million) (12 km) and a dual Diamniadio fully serviced and public utilities ; 2011 and 2012, (ii) 80 ha resettlement site developed at for the resettlement policy by clearing
2. Development of the carriageway on the last highway number of houses built, (iii) Tivaouane Peul in 2010 with the construction of at least 2 project rights-of-way;
Tivaouane Peul 20 km section; PIS and measures taken to close primary schools totalling 30 classrooms built, 1 secondary 3. Significant works cost overrun after
resettlement area (UA 75.86 2. Project affected Tivaouane Peulh Mbeubeuss school with 24 classrooms, 2 health posts, 1 public market, invitations to bid or in works execution
Million) persons compensated, 3. (i) Area restructured and 1 multi-purpose sports ground, 2 mosques and 1 socio- phase
3. Restructuring of PIS reception facilities number of socio-economic facilities cultural centre built; between 2009 and 2010 Mbeubeuss is
(UA 38.59 million) completed to the available, length of serviced roads closed, the work to operationalize a temporary waste burial Mitigation Measures: (1) risks relation to
4. Management and satisfaction of the PAPs etc. ; (ii) level of regularization of centre is carried out and the study on the new Waste Burial the mobilization of counterpart funds are
monitoring of project and Mbeubeuss closed title deeds for dwellings in PIS ; Centre is conducted and validated. mitigated by the strong commitment of
implementation (UA 6.73 3. PIS district 4. Number of people sensitized, 3. PIS : 860 ha of the district restructured in 2013, with 27 the Government to this project; the fact
million) restructured number of reports regularly km of serviced streets, 1x2000 pupil CEM, 4 health centres, that the expected contribution by the
4. Population produced on the status of project 1 sports stadium, 1 cultural centre built, rehabilitation of 11 Government of about CFAF 12.5 billion
sensitized and project management assistance, the audit primary schools and 4 existing markets and all the dwellings can be borne by the budget and the
monitoring carried out. and monitoring evaluation. of the priority programme have land certificates; possibility for the Government to raise a
4. As from 2010: (i) a large number pf people in the bond borrowing on the market for the
project area sensitized annually on road safety, project; (2) the benefits of a better future
environmental protection and on the toll highway concept ; living environment will enhance
preparation of quarterly status reports and annual audit and acceptance of the project by the
monitoring-evaluation reports. population; and (3) the risks of additional
costs are mitigated by: (i) the fact that the
concession contract is firm and non
reviewable, and that (ii) for the building
sub-sector, prices are often better
controlled and there are enough
competent SMEs for competition to take
place during competitive bidding, and (iii)
there is no slippage on the finalization of
final design for the works in PIS and RZ
and the related invitation to bid.
.
 viii

Implementation Schedule
1 STRATEGIC ORIENTATION AND OBJECTIVES

1.1 Project Links with Country Strategy and Objectives

1.1.1 The principal objectives of the country’s PRSP II (2006-2010) are broken down
into the following four priority areas: (i) create wealth through growth required to reduce
poverty; (ii) improve access to basic social services; (iii) provide social security and
manage risks and disasters; and (iv) promote good governance and decentralized and
participatory development. The four prime levers emerging from these four strategic
priority areas are: (i) wealth creation; (ii) capacity-building and promotion of basic social
services; (iii) improved living conditions for vulnerable groups; and (iv) promotion of good
governance.

1.1.2 One of the reasons for the failure to achieve accelerated economic growth is the
relatively high level of production costs, as well as the poor development of infrastructure
to support economic activity, with the exception of telecommunications. The persisting
problems of urban mobility in Dakar, resulting in significantly longer travel times, are
undermining the competitiveness of the economy. This project will help to remove the
constraints related to traffic congestion at the entry to Greater Dakar. In this respect, it is in
keeping with the country’s development strategy and objectives, in particular pillar 1 of the
PRSP and levers (i) and (iii) of the strategy.

1.2 Justification for Bank Intervention

1.2.1 The Bank’s strategy for Senegal for the 2005-2009 period is based on two pillars:
(i) improvement of the business environment with a view to achieving accelerated growth;
and (ii) improved access to basic infrastructure. This is reflected in the pursuance of
ongoing operations, the preparation of new operations under ADF XI in the areas of
improvement of the business environment, water, sanitation, transport (roads and
railway). This highway project is consistent with this strategy. It will help to improve the
mobility of goods and persons in the region of Dakar (thereby improving the business
environment), as well as the living environment of people in the vicinity of the road.
Furthermore, as part of its policy to integrate and open up the hinterland countries, the
Bank has, with cofinancing from other donors, undertaken the improvement and
rehabilitation of the Dakar-Bamako highway by the South, of which this project is the first
section. Thus, from 2000 to 2004, the Bank financed the rehabilitation of the Diamniadio-
Mbour-Fatick-Kaolack road with the European Union (EU) and is currently financing the
Kédougou-Saraya and Saraya-Mali border sections in cofinancing with the WADB, IDB,
JBIC and JICA, while the EU is financing the Birkilane-Tambacounda section.

1.2.2 The project will have a very significant impact on the implementation of the
Government’s accelerated growth strategy. Indeed, by its developmental nature for the
Cape Verde peninsula, it is a prerequisite for the implementation of the major
development projects of the Diamniadio economic pole (new airport, new mineral
terminal, and the Diamniadio socio-economic platform) and for regional integration
(strengthening the competitiveness of Dakar Port). The World Bank and AFD will
intervene in the resettlement of project affected persons, the restructuring of the districts,
and project management. The Bank’s assistance has been sought in a request from the
Ministry of the Economy and Finance, and it will contribute to the Government’s subsidy to
the concessionary company for the construction of the highway. In March 2009, the
Government reaffirmed the priority given to this project by requesting that the total amount
available on its ADF allocation be earmarked for this project.
 2

1.3 Donor Coordination

1.3.1 In Senegal, the coordination and monitoring of PRSP implementation are carried
out by a National Steering Committee (CNP) which, at sector level, is supported by
Ministerial Committees (CM), including the Transport Sector Committee. Periodic
meetings are organized with the donors. To finance this project, the Government
contacted several donors (World Bank, ADF, AFD, JICA, South Korea, the Nigeria Trust
Fund and the OPEP Fund). The World Bank, ADF and AFD confirmed their interest in the
project. The Bank fielded joint missions with the World Bank (WB) and the French
Development Agency (AFD) for project preparation (from 23 March to 7 April 2008), then
for project appraisal (24/11/2008 to 05/12/2008). However, in view of the time taken by
the Government to recruit the concessionary company, the Bank had to field a mission
from 9 to 24/04/2009 to finalize the project appraisal. Following each of the joint missions,
the financing plan, the loan conditions, the Aide Memoire and performance indicators of
the project were jointly prepared by the donors involved. Furthermore, the different project
designs were reviewed jointly by the donors, who also shared their experiences on similar
projects. Such coordination will continue through the dialogue platforms in which the
Bank’s Dakar Regional Office (SNFO) participates and through joint supervision missions
by the donors of this project.
1.3.2 The following table gives an indication of the share of the transport sector in GDP
formation, as well as the levels of donor contributions. It shows that the Government, with
52.81% of total investments, is the most important contributor to the financing of the
sector from 2000 to 2006.
Table 1.1
Impact of Transport Sector in GDP
Sector or Sub-sector Importance
in % GDP in % of Exports in % of Labour
2004 2005 2006 2004 2005 2006 2004 2005 2006
Transport Sector 4.3% 4.2% 4.1% 4.4% 5.4% 5.5% 1.1% 1.1% 1.1%
Road Sub-sector 1.6% 1.5% 1.6% NA NA NA
Rail Sub-sector 0.4% 0.3% 0.3% 1.1% 1.4% 1.5% NA NA NA
Air Transport Sub-sector 0.8% 0.8% 0.8% 3.0% 3.6% 3.6% NA NA NA
Maritime sub-sector 0.03% 0.03% 0.03% 0.01% 0.00% 0.00% NA NA NA
Ancillary Transport Services 1.5% 1.5% 1.3% 0.3% 0.4% 0.4% NA NA NA
Stakeholders – Annual Public Expenditure of Transport Sector (averages in CFAF million)
Donors
WAD Arab Fund (Private at
Years Total Govt. ADF IDA EU AFD B and Others PAD port)
2000 to 2003 in MCFAF 105 689 70 367 3 675 10 449 13 384 2 537 0 5 142 136
in% 100.00% 66.58% 3.48% 9.89% 12.66% 2.40% 0.00% 4.86% 0.13%
2004 in MCFAF 68 482 32 961 8 903 10 795 9 655 2 973 0 537 2 658
in% 100.00% 48.13% 13.00% 15.76% 14.10% 4.34% 0.00% 0.78% 3.88%
2005 in MCFAF 55 295 28 534 52 17 705 7 789 937 0 278 0
in% 100.00% 51.60% 0.09% 32.02% 14.09% 1.69% 0.00% 0.50% 0.00%
2006 in MCFAF 74 415 28 612 0 5 150 6 612 1 142 299 2 600 30 000
in% 100.00% 38.45% 0.00% 6.92% 8.89% 1.53% 0.40% 3.49% 40.31%
Total
between
2000 and
2006 In MCFAF 303 882 160 475 12 630 44 099 37 440 7 589 299 8 556 32 794
in% 100.00% 52.81% 4.16% 14.51% 12.32% 2.50% 0.10% 2.82% 10.79%
 3

Level of Coordination
Existence of Thematic Groups Yes/No
Existence of an Overall Sector Programme Yes (PST1 2nd PST being prepared)/No
Role of ADB in Aid Coordination Lead/Member/No. Give name of lead donor
* Source : PST Coordination; Arab Funds (IDB, Kuwait Fund, OPEC Fund, Saudi Fund) and other funds (ECOWAS
Fund, Nordic Fund)

2 DESCRIPTION OF PROPOSED PROJECT

2.1 Project Objectives
2.1.1 The project objectives are to: (i) improve the overall operation of the transport
system so as to support the accelerated growth strategy and promote regional integration;
and (ii) provide a rapid link between the heart of Dakar and Diamniadio, gateway to a new
economic development pole, and improve the living environment of people living in the
vicinity of the road.
2.2 Project Components
2.2.1 The components of the entire project are summarized below.
Table 2.1
Summary of Project Components
N. Component Name Estimated Cost Description of Components
in MUA
A - CONSTRUCTION OF 214.41 A.1 - Installation of toll station on the Patte d’Oie – Pikine section (5 km)
HIGHWAY WITH TOLL A.2 - Construction of the 2x3 lane highway section on a 33 m right-of-way between
STATIONS Pikine and Thiaroye (2.8 km) with the construction of junctions, interchanges
and toll stations
A.3 - Construction of the dual carriageway section of highway on a 33km right-of-
way between Thiaroye and Diamniadio (17.6 km) with the construction of
junctions, interchanges and toll stations
A.4 - Construction of stormwater drainage structures and installation of signs and a
highway protection system
A.5 - Environmental protection works and measures
A.6 - Clearing the highway rights-of-way
B- DEVELOPMENT OF 75.86 B.1 - Clearing the rights-of-way in the resettlement zone
THE TIVAOUANE B.2 - Development of the resettlement zone (earthworks, parcelling, full servicing,
PEUL construction of more than 2000 dwellings, places of worship, social services,
RESETTLEMENT wastewater treatment stations, etc) and operation to move the people to the
SITE site.
B.3 - Construction of primary roads connecting this zone to the road network
B.4 - Closure of the Mbeubeuss refuse tip (find a temporary site, close to the
Mbeubeuss tip and conduct a study on the construction of a final Waste Burial
Centre (CET) at Bargny and for the long-term treatment of the Mbeubeuss
refuse tip) ;
B.5 - Works and environmental protection measures, particularly as regards MBAO
forest;
B.6 - Works control and supervision
URBAN 38.59 C.1. Clearing of PIS rights-of way
C- RESTRUCTURING OF C.2. Development of the road network and networks for the drainage and disposal of
PIKINE IRREGULIER storm-and waste water.
SUD C.3. Establishment of development poles (Camp Thiaroye, Pôle Seven –Up, Marché
Waranka)
C.4. Studies and support measures
C.5. Works control and supervision
 4

D - MANAGEMENT AND 6.73 D.1 - Operating costs (personnel, materials, supplies, external services)
MONITORING OF D.2 - Project management assistance APIX (AGETIP, Consulting firm)
PORJECT D.3 - Monitoring-evaluation of impact indicators
IMPLEMENTATION D.4 - Accounting and financial audit and technical audit
D.5 - Sensitization on STD/AIDS, road safety and environmental protection including
transport and climate change, as well as opportunities for Clean Development
Mechanisms (CDM) and Sustainable Development Mechanisms (SDM) in the
context of the controlled refuse tip and the road project (carbon credits).

2.3 Technical Options Chosen and Considered

2.3.1 Four route options were considered and their costs and social and environmental
impacts examined. These are: (i) extension of the North Exit Road (VDN), (ii) enlargement
of the Niayes road; (iii) the 1978 Electrowatt route; (iv) the raised section of the RNI. A
detailed multiple criteria analysis, based on technical, social, economic, financial,
environmental and mobility criteria, was conducted in order to select the optimal route.
This analysis showed that the best route retained is Route 3 which is the 1978 Electrowatt
route slightly modified to provide an alternative to users not wishing to pay the toll as
indicated in the following table.
Table 2.2
Route Options Considered
Route 1 (VDN) Route 2 (Niayes Road) Route 3 (1978 Route 4 (raised RN1)
Electrowatt) (Retained)
(i) runs along the coast in an (i) Fully serviced area with (i) crosses 6 km of (i) Very high
area with poor soil highly dense urban fabric unserviced irregular construction costs and
geotechnical characteristics and a lot of commercial districts subject to frequent harms the environment ;
and consequently difficulties activity; (ii) major flooding; (ii) a restructuring (ii) entails fewer
and high construction and thoroughfare for public plan of the area is expropriations but has
maintenance costs; (ii) entails transport, therefore underway with the no positive impacts on
significant expropriations; (iii) necessary to construct many possibility of land the precarious districts
route 6km longer than routes 3 pedestrian passageways; (iii) regularization; (iii) entails crossed; (iii) traffic and
and 4; (iv) outlying route, entails highly significant significant expropriations; toll revenues not high
therefore no impact on urban expropriations; (iv) route 6 (iv) major impact on urban enough for a good PPP
mobility; (v) traffic and toll km longer than route 3 and 4; mobility; (v) suitable for a (about CFAF 18 billion
revenue not high enough for a and (v) traffic and toll PPP, toll revenues are the per year).
good PPP (CFAF 14.20 billion revenues not high enough for highest (about CFAF 24.5
per year). a good PPP (about CFAF 16 billion per year).
billion per year).

2.3.2 Two options were considered (highway or expressway) and the highway was
retained given the weak impact on speed of an expressway in a highly dense urbanized
environment. The highway requires a special site marked off by an enclosure wall on the
most urbanized part of the route. Regarding the size of the roadway and lanes, several
options (all asphalt structure, mixed structure and semi-rigid structures with bases treated
with hydrocarbon binders) were considered taking into account the soil characteristics, the
availability of materials (laterite, crushed gravel), future traffic and its intensity, the impact
of the longitudinal section on stormwater drainage in the area and, to a certain extent, of
climate risk. The technical options retained for each section are summarized below.
 5

Table 2.3
Technical Options Chosen for each Section
Between PIKINE and the THIAROYE BPV. THIAROYE BPV and DIAMNIADIO
(i) 2.8 km long, 33 m platform in standard (i) length 17.6 km, 33 m platform ; (ii) roadway 3.5 m lane dual
sections; (ii) 2 x 3 lane roadways each with carriageway with an 11 m unpaved central reservation, two 3 m
a 4m central reservation, two 3m paved emergency lanes and two 1.00 m berms; (iii) the Thiaroye diamond-
emergency lanes, and two 1m berms ; (iii) shaped interchange, the Keur Massar, Rufisque Ouest, Rufisque Est
public lighting. The roadway structure is and Diamniadio trumpet interchanges; (iv) the two 3.5 m lane
composed of 6cm of semi-granular connecting road to Diamniadio and the RN1 connecting interchange,
bituminous concrete (SGBC) as a wearing (v) 19 overpasses and underpasses, and one underpass crossing the
course, 12 cm of bituminous gravel (BG) for railway line; and (vi) six open and/or closed pay-toll systems and
the base course and 25 cm of crushed lighting over 2.70 km. The structure is composed of 6 cm of semi-
gravel (CG) for the sub-base. The granular bituminous concrete (SGAC) as a wearing course, 12 cm of
thicknesses for the junction slip roads are 6 bituminous gravel (BG) as a base course and 25cm of crushed gravel
SGBC/9BG/20CG (CG) as a sub-base. The thicknesses of the junction slip roads are
6SGBC/9BG/20CG. It should be noted that this section is two-lane
because of the traffic which , early in the year, is less than on the first
section.

2.4 Project Type

2.4.1 In view of the significant financial resources to be mobilized and the toll
acceptability studies for an average daily traffic of nearly 40,000 vehicles, the Government
has decided to implement this project on the basis of a public-private partnership (PPP).
To do so, in the first phase, it constructed the first two sections (Malick Sy-Patte d’Oie and
Patte d’Oie-Pikine) with its own resources, and has contacted the donors to finance the
third and last section (Pikine-Diamniadio) with the private sector. The contribution
expected from the private sector is about 42% of the cost of the component relating to the
construction of the highway, excluding expropriation costs. The remaining 58% will come
from the Government and donors (see details of the sections in Annex B.1).

2.5 Project Cost and Financing Arrangements

Estimated Cost

2.5.1 The estimated costs (net of taxes and customs duties) of the entire project and of
the ADF component (Component A- part of project jointly financed by ADF, AFD, the
concessionary company and the Government) are based on the final design and
finalization of the concessionary company’s draft contract which was prepared in March
2009. A comparative analysis of the cost of the concession has been conducted on the
scenario of implementing the project with public financing or of constructing the Keur
Massar-Diamniadio section with public financing and the Pikine-Keur Massar under PPP.
This analysis concluded that continuing with the PPP as designed is more advantageous.
A combined physical contingencies/financial contingencies coefficient of 5.85% has been
applied to Components B, C and D. For Component A, since the contract with the
concessionary company is firm and cannot be revised, it is not included in the provisions
for physical and financial contingencies. These costs are summarized in Tables 2.4 and
2.5 respectively.
 6

Table 2.4
Summary Cost Estimate by Component for Entire Project
COMPONENT CFAF Million UA Million US$ Million
FE LC. Total FE LC. Total FE LC Total
A. CONSTRUCTION AND EQUIPPING OF 51 158
HIGHWAY 106 644.67 361.17 005.83 144.72 69.70 214.41 216.36 104.20 320.56
B- DEVELOPMENT OF RESETTLEMENT 13
ZONE 39 495.20 521.30 53 016.51 53.59 18.35 71.94 80.13 27.43 107.56
C – RESTRUCTURING OF PIKINE
IRREGULIER SUD (PIS) 18 141.82 8 971.61 27 113.43 24.62 12.17 36.79 36.81 18.20 55.01
D – PROJECT MANAGEMENT AND
MONITORING 2 870.50 2 090.86 4 961.36 3.90 2.84 6.73 5.82 4.24 10.07
75 243
BASE COST 167 152.19 944.94 097.13 226.82 103.06 329.88 339.12 154.08 493.19
Physical contingencies 922.19 230.55 1 152.74 1.25 0.31 1.56 1.87 0.47 2.34
Price escalation 2 447.78 611.94 3 059.72 3.32 0.83 4.15 4.97 1.24 6.21
76 247
Total 170 522.16 787.43 309.59 231.40 104.20 335.60 345.95 155.79 501.74

Table 2.5
Summary Cost Estimate for ADF Component
COMPONENTS CFAF Million UA Million US$ Million
FE LC Total FE LC. Total FE LC. Total
A – HIGHWAY CONSTRUCTION AND
EQUIPMENT
- Road works 76 800.00 19 200.00 96 000.00 104.22 26.05 130.27 155.81 38.95 194.76
- Work on structures 13 854.40 3 463.60 17 318.00 18.80 4.70 23.50 28.11 7.03 35.13
- Works and equipment of toll stations 15 319.83 3 829.96 19 149.79 20.79 5.20 25.99 31.08 7.77 38.85
- Environmental protection works 670.43 167.61 838.04 0.91 0.23 1.14 1.36 0.34 1.70
- Compensation and clearing of
highway area (cash) 24 700.00 24 700.00 33.52 33.52 50.11 50.11
BASE COST 106 644.67 51 361.17 158 005.83 144.72 69.70 214.41 216.36 104.20 320.56
Physical contingencies
Price escalation
Total 106 644.67 51 361.17 158 005.83 144.72 69.70 214.41 216.36 104.20 320.56

2.5.2 The summary costs by expenditure category for the entire project as well as for
the ADF Project are presented in Tables 2.6 and 2.7 below respectively:

Table 2.6
Summary Cost by Expenditure Category for the Entire Project
Expenditure Category CFAF Million UA Million US$ Million
FE LC Total FE LC Total FE LC Total
A Goods
B– Works/PPP* 156 787.01 39 196.75 195 983.76 212.76 53.19 265.95 318.09 79.52 397.61
C –Consultancy Services 8 387.04 3 470.00 11 857.03 11.38 4.71 16.09 17.02 7.04 24.06
D –Miscellaneous
D.1- Expropriation 32 783.66 32 783.66 44.49 44.49 66.51 66.51
D.2- Others 1 978.14 494.54 2 472.68 2.68 0.67 3.36 4.01 1.00 5.02
BASE COST 167 152.19 32 783.66 32 783.66 226.82 103.06 329.88 339.12 154.08 493.19
Physical contingencies 922.19 230.55 1 152.74 1.25 0.31 1.56 1.87 0.47 2.34
Price escalation 2 447.78 611.94 3 059.72 3.32 0.83 4.15 4.97 1.24 6.21
Total 170 522.16 76 787.43 247 309.59 231.40 104.20 335.60 345.95 155.79 501.74
* NB The purpose of the Bank’s financing is to participate in the government subsidy to the holder of the concession which comprises a series of
indissociable goods, services, works, as well as intangible assets. This expenditure category, which is specific to PPP concession contracts, does not fit
into the current classification of the Bank. Consequently, in view of the significant works in the PPP, it was agreed that all should be put in the “works”
category
 7

Table 2.7
Summary Cost by Expenditure Category for ADF Component
Expenditure Category CFAF Million UA Million US$ Million
FE LC Total FE LC Total FE LC Total
A - Goods
B – Works (PPP) 106 644.67 26 661.17 133 305.83 144.72 36.18 180.89 216.36 54.09 270.45
C – Consultancy Services
D - Miscellaneous
D.1- Expropriation 24 700.00 24 700.00 33.52 33.52 50.11 50.11
D.2- Others
BASE COST 106 644.67 51 361.17 158 005.83 144.72 69.70 214.41 216.36 104.20 320.56
Physical contingencies
Price escalation
Total 106 644.67 51 361.17 158 005.83 144.72 69.70 214.41 216.36 104.20 320.56

Financing Arrangements
2.5.3 The project will be cofinanced by ADF, AFD, the Government and the
concessionary company and through parallel financing with other donors (IDA and AFD).
ADF’s current contribution of UA 45 million represents 13.41% of the total project cost, net
of taxes and customs duties. This contribution is intended to finance Component A.
Components B, C and D will be financed by the other donors, as well as the Government.
The source of finance known as “GOVT/Donors” has been introduced to indicate
possibilities of intervention to donors who have been requested to participate and have
agreed (JICA, NTF, and South Korea) and/or ADF if the allocation in 2010 allows for
intervention of more than UA 45 million. However, if other donors do not accept to
intervene, the Government will bear this part of the financing. The source of finance
entitled “GOVT” indicated the part of financing which only the Government can bear,
namely cash compensations for expropriation. Evidence of the commitment of other
donors (AFD and WB) to financing the project, as well as securing the Government
counterpart funds are conditions for the ADF loan for this project.
2.5.4 The financing plans by source for the entire project and for the ADF component
are presented in Tables 2.8 and 2.9 below.

Table 2.8
Sources of Finance for Entire Project
(In UA million)
Source FE LC Total %
ADF LOAN 36.00 9.00 45.00 13.41%
CONCESSIONARY 60.12 15.03 75.15 22.39%
GOVT/OTHER DONORS 37.85 9.46 47.31 14.10%
IDA 54.70 15.54 70.23 20.93%
AFD 42.73 10.68 53.41 15.92%
GOV 0.00 44.49 44.49 13.26%
Total 231.40 104.20 335.60 100%

Table 2.9
Source of Finance for ADF Component
(in UA million)
Source FE LC Total %
ADF LOAN 36.00 9.00 45.00 20.99%
CONCESSIONARY COMPANY 60.12 15.03 75.15 35.05%
GOVT/OTHER DONORS 28.70 7.18 35.88 16.73%
AFD 19.89 4.97 24.86 11.60%
GOVT. 0.00 33.52 33.52 15.63%
Total 144.72 69.70 214.41 100%
 8

2.5.5 The expenditure schedules by component for the entire project and for the ADF
Component are presented in Tables 2.10 and 2.11 below:

Table 2.10
Expenditure Schedule by Component for Entire Project
(in UA million)
Components 2009 2010 2011 2012 2013 2014 Total
A. CONSTRUCTION AND
EQUIPMENT OF THE HIGHWAY 34.94 54.12 46.39 49.86 29.11 214.41
B. DEVELOPMENT OF THE
RESETTLEMENT AREA (RA) 5.48 32.69 26.26 6.97 0.54 0.00 71.94
C. RESTRUCTURING OF
PIKINE IRREGULIER SUD (PIS) 0.80 9.84 11.64 8.63 5.89 36.79
D. PROJECT MANAGEMENT
AND MONITORING 0.67 1.35 1.35 1.35 1.35 0.67 6.73
BASELINE COST 41.90 97.99 85.63 66.80 36.88 0.67 329.88
Physical Contingencies 0.09 0.61 0.55 0.22 0.09 0.00 1.56
Price Escalation 0.24 1.62 1.45 0.60 0.25 0.00 4.15
TOTAL COST 42.23 100.23 87.63 67.62 37.22 0.67 335.60
100.00
Total in % 12.58% 29.87% 26.11% 20.15% 11.09% 0.20% %

Table 2.11
Expenditure Schedule by Component for ADF Component
(in UA million)
Components 2009 2010 2011 2012 2013 2014 Total
A. CONSTRUCTION AND
EQUIPMENT OF HIGHWAY
- Works/PPP 17.97 45.84 38.11 49.86 29.11 180.89
- Compensation and
clearing of highway area (cash) 16.96 8.28 8.28 33.52
BASE COST 34.94 54.12 46.39 49.86 29.11 214.41
Physical contingencies
Price escalation
TOTAL COST 34.94 54.12 46.39 49.86 29.11 214.41
Total in % 16.29% 25.24% 21.63% 23.25% 13.58% 100.00%

2.5.6 The expenditure schedules by source of finance for the entire project and for the
ADF Component are presented in Tables 2.12 and 2.13 below.

Table 2.12
Expenditure Schedule by Source of Finance for Entire Project
(in UA million)

Source 2009 2010 2011 2012 2013 2014 Total

ADF LOAN 7.78 20.72 16.50 45.00
CONCESSIONARY COMPANY 2.06 9.30 18.48 25.63 19.68 75.15
GOVT/ OTHER DONORS 5.72 6.79 25.37 9.43 0.00 47.31
IDA 1.35 29.43 25.52 10.14 3.79 0.00 70.23
AFD 9.14 23.77 9.04 6.48 4.31 0.67 53.41
GOVT 21.91 11.29 11.29 44.49
Total 42.23 100.23 87.63 67.62 37.22 0.67 335.60
Total in % 12.58% 29.87% 26.11% 20.15% 11.09% 0.20% 100%
 9

Table 2.13
Expenditure Schedule by Source of Finance of ADF Component
(In UA million)
Source 2009 2010 2011 2012 2013 2014 Total
ADF LOAN 7.78 20.72 16.50 45.00
CONCESSIONARY COMPANY 2.06 9.30 18.48 25.63 19.68 75.15
GOVT/OTHER DONORS 2.22 24.23 9.43 35.88
AFD 8.14 15.82 0.91 24.86
GOVT 16.96 8.28 8.28 33.52
Total 34.94 54.12 46.39 49.86 29.11 214.41
100.00
% 16.29% 25.24% 21.63% 23.25% 13.58% %

Table 2.14
Expenditure Schedule by Source of Finance of ADF Component
(In CFAF million)
Source 2009 2010 2011 2012 2013 2014 Total
ADF LOAN 5 730.74 15 269.26 12 162.49 33 162.49
CONCESSIONARY COMPANY 1 514.41 6 855.65 13 615.98 18 889.49 14 505.05 55 380.58
GOVT/OTHER DONORS 1 636.77 17 853.91 6 949.20 26 439.88
AFD 6 000.00 11 654.77 668.12 18 322.89
GOVT 12 500.00 6 100.00 6 100.00 24 700.00
Total 25 745.14 39 879.68 34 183.36 36 743.39 21 454.26 158 005.83
% 16.29% 25.24% 21.63% 23.25% 13.58% 100.00%

2.6 Project Area and Beneficiaries

2.6.1 The direct project area is the Dakar Region, but the project impact reaches
beyond this region to the whole of Senegal and ECOWAS. Indeed, since the project is the
first link in the Dakar-Lagos Trans-African Highway, its impact will be felt in the ECOWAS
countries, in general, and in Mali, Guinea, Guinea Bissau and the Gambia, in particular.
The main beneficiaries are: (i) transport users who will have an alternative to improve their
mobility; (ii) the 300,000 inhabitants of the PIS who will benefit from a restructured and
improved district; (iii) the 3000 families of the PIS who will be resettled in Tivaouane Peul ;
(iv) export manufacturers and economic operators involved in regional transport; (v) the
inhabitants of Dakar Region who will be less exposed to pollution caused by the
uncontrolled Mbeubeuss refuse tip; and (vi) the Government of Senegal, which could
attract more private investments by demonstrating the feasibility of PPP.

2.7 Participatory Approach to Project Identification, Design and Implementation

2.7.1 A participatory approach was adopted for the conduct of the project studies.
Several meetings and sessions were organized with the beneficiary and/or affected local
populations (local administrative and local authorities, local associations, government
technical services, religious authorities, representatives of the civil society, local NGOs
and other organizations active in the area, local socio-professional actors, etc). Local
community meetings were organized in the council areas with the interested parties
(district delegates and associations, local associations, etc.). The outcomes of these
various sessions were presented at public hearings which helped to define the outlines of
the project. The needs of the project beneficiaries were therefore taken into account in the
project design, particularly as regards compensations for the PAPs (cash or building of
houses), basic socio-economic infrastructures (health centres, schools, places of worship,
sports centres, markets, etc.). The meetings and sensitization will be pursued through
social intermediation during the project implementation and operational phases.
 10

2.8 Consideration of the Bank’s Experience and Lessons Learnt in the Project
Design

2.8.1 The lessons learnt from the Bank’s experience in the country concern, in
particular, the risks of additional costs due to the quality of the studies, the technical
modifications after project approval, and time frames for fulfillment of the conditions for
disbursement and procurements. Lessons were also drawn from execution of works on
the Malick Sy-Patte d’Oie-Pikine section of the highway, particularly difficulties related to
expropriation and clearing of highway areas and the fact that deep patchings not initially
foreseen were made as a result of the poor quality of soils.

2.8.2 This project benefited from high quality basic studies in its design; for the conduct
of these studies and preparation of the bidding documents, APIX used several experts in
the technical, legal, financial, economic, social and environmental areas, etc. The priced
bill of quantities of the highway works has been updated by APIX and the concessionary
company, taking into account the technical problems encountered during works on the
earlier sections of the highway. An institutional and communication mechanism has been
put in place to monitor the expropriation and resettlement. Regarding procurements, the
Bank will only finance the component concerning the PPP component for which the
concessionary company has already been selected. Furthermore, the Project Executing
Agency (APIX) received initial training on the Bank’s procedures during the different
missions fielded by the Bank as part of the project preparation and for SNFO staff. This
training will be deepened during project launching. For the components financed by the
other project donors involved from the design studies phase, APIX and AGETIP are
already acquainted with their procurement procedures.

2.8.3 As regards the project implementation monitoring component, adequate

institutional arrangements were made through APIX and its Highway Project Department.
The project will therefore benefit from the quality of the work carried out by APIX and its
advisers, as well as the Government’s support for financing the parts already constructed
or under construction and for future financing.

2.9 Key Performance Indicators

Impact and Implementation Performance Indicators

2.9.1 The key indicators concern: (i) the rate of the national road network in good state,
the trend of the urban mobility index in Dakar and the port traffic growth rate for the
neighbouring countries; and (ii) improvement of transport conditions by reducing the travel
time between Dakar and Diamniadio, the percentage of economic operators who consider
transport as a major obstacle, and the number of people and families or persons resettled
under more satisfactory conditions. These key indicators are described in detail in the
logical framework matrix with implementation time frames. They will be mainly measured
through the monitoring and evaluation programme to be put in place for the project. Their
sources will be the surveys on project beneficiaries, the periodic project supervision and
completion reports, as well as reports produced by the different government services and
APIX.
 11

2.9.2 In addition to the impact indicators, implementation performance indicators will be

determined and monitored, in particular: (i) the time frames for effectiveness and fulfilment
of the disbursement conditions of the loan; (i) the time frames for the award of contracts
financed by the other donors on whom the progress of the highway works depends; and
(iii) assessment of the disbursement rates on the basis of the expenditure schedule.

Mechanisms for Assessing Project Effectiveness

2.9.3 A Steering Committee has been established to ensure the overall monitoring of
project implementation; the Committee organizes periodic meetings and seminars which
are open to the civil society. The meetings will use summary reports and monitoring-
evaluation indicators prepared by APIX.

3 PROJECT FEASIBILITY

3.1 Economic and Financial Performance

3.1.1 The economic analysis of the highway construction was carried out using the
HDM4 model based on a cost/benefit analysis of the ‘with’ and ‘without’ project situations.
The costs taken into consideration: (i) the investment costs (net of taxes and customs
duties) of constructing the highway (from Patte d’Oie to Diamniadio) and installing the toll
equipment, including amounts paid in cash to compensate affected people located on the
highway area; and (ii) the operation and maintenance costs, as well as costs for renewal
of investments and equipment of the highway and toll stations. The benefits lies in the
reduction of overall transport costs (savings on time and the operating costs of vehicles
using the highway and vehicles that continue to use the alternative roads which will be
less congested as a result of the diverted traffic) and savings on maintenance costs of the
alternative roads. The traffic and toll acceptability study concluded on variable diverted
traffic from the entry into service of the highway of between 7,000 and 40,000
vehicles/day, depending on the sections. The residual value of the investments for the
construction of the highway represents 66.60% after a life span of 25 years. The
economic analysis did not take into account the climate risk and the sale of carbon
credits, due to lack of data. It did not also take into account the intangible benefits (difficult
to convert into currency) as a result of improvement of the living environment of the
populations.

3.1.2 The financial analysis was conducted on the basis of the toll revenue and the
share of the investment costs borne by the private concessionary company for the
highway construction works, excluding expropriation and operating and maintenance
costs, as well as costs for renewal of infrastructure and equipment of the highway which
will be borne by the concessionary company. Details of these analyses, presented in
Annex A.6, are summarized below.
 12

Table 3.1
Summary of Outcomes of the Economic and Financial Analysis

Financial Rate of Return (FRR) in % 20.16%

Net Present Value in million CFAF (NPV) 275.50
Economic Rate of Return (ERR) in % 29.28%
ERR for economic benefits reduced by 54% and investment,
maintenance and operating costs increased by 98% 12%
Discount Rate 12%
Residual Value of Investment after 25 years 66.60%

3.2 Environmental and Social Impact

Environment

3.2.1 From the environmental standpoint, the project is classified in Category 1 because
of its potential direct and indirect impacts. Between 2005 and 2007, an environmental and
social impact assessment (ESIA) was conducted, and the different resettlement action
plans (RAP) and environmental and social management plans (ESMP) were prepared.
The ESIA and RAP summaries were placed in the Bank’s Public Information Centre (PIC)
and distributed to the Board on 16/02/2009 and 09/01/2009. The major negative impacts
concern: (i) the displacement of 3,350 families and economic and commercial activities to
a new fully serviced and built up resettlement area; (ii) nuisances during the works phase;
and (iii) environmental impacts related to the crossing of the Mbao classified forest and
the possibility of worsening flooding in the marshlands located in some sectors of
Thiaroye.

3.2.2 The impact mitigation costs are estimated at CFAF 109.04 billion comprising: (i)
CFAF 32.78 billion cash expropriation compensation; (ii) CFAF 51.76 billion for the
development of the resettlement area, including the required studies and works for the
closure of the Mbeubeuss refuse tip; (iii) CFAF 23.51 billion for development of the refuse
dump and sanitation network in the floodable area of PIS, and (iv) CFAF 0.99 billion for
the implementation of the ESMP in terms of sensitization and capacity building in
monitoring. In addition, the activities included in the concessionary company’s contract will
also be carried out; the activities comprise the building of a noise protection wall,
replanting of green spaces, improved sanitation and protection of the Mbao classified
forest. The project implementation will have positive impacts such as thee restructuring
and development of the unhealthy PIS district, the significantly reduced risks and losses
due to flooding and difficulties in refuse collection on the health and safety of the 300,000
inhabitants. The closure of the Mbeubeuss uncontrolled refuse tip will have a positive
impact on air quality and the risk of soil contamination.
 13

Climate Change

3.2.3 The effects of climate change are already perceptible in Senegal, even though the
impact of human activities on the concentration of greenhouse gas is low, in view of the
level of development of the country. The two challenges facing the country are the
structural irregularity of rainfall which makes farming systems vulnerable, as well as
atmospheric pollution. Climate trends show an increase in temperatures by about 1.2°C
since the beginning of the century and 35% reduction in rainfall within the space of a
generation. In 1993, Senegal ratified the Vienna Convention and the Montreal Protocol
relating to the protection of the ozone layer. It subsequently developed initiatives to
protect the ozone layer and signed in June 1992 the Convention on climate change and
ratified it in June 1994. Furthermore, it has implemented the 2001Dakar Declaration on
the phasing-out of leaded fuel in Africa by 31/12/2005. A number of sector policies have
also be implemented, including the Second Transport Sector Programme (TSP 2) and the
Urban Mobility Programme one of whose objectives is to enhance the performance of the
sector so as to significantly reduce greenhouse gas emissions.

3.2.4 The road traffic in Dakar is highly congested, and has an ageing vehicle fleet that
generates high greenhouse gas emissions, especially on the Dakar-Diamniadio highway.
The design retained for the highway includes various considerations to mitigate the impact
of climate change, such as: (i) the draining of sections of roads to be developed and
sizing of hydraulic structures taking into account the rainfall; (ii) the PIS and Tivaouane
Peul zones for which sanitation plans have been prepared to address any increase in
contamination of the groundwater; (iii) the closure of the Mbeubeuss uncontrolled refuse
tip and establishment of a waste burial centre are likely to eliminate emissions of smoke
and toxic gas from the tip; and (iv) the planting of trees along the highway, in the
resettlement area and in the restructured PIS. The Climate Change Committee of the
African Development Bank has selected this highway project as the pilot project and will
therefore support it for the monitoring of key performance indicators (KPI) of climate
change.

Gender

3.2.5 The direct project area has about 532,000 inhabitants, 50% of whom are women.
Between 40.6% and 45.8% of the population of the project area are considered to be
poor, and women represent 51.8% of these poor people. Of the estimated 64,000
households in the project area, 23% are headed by women who have full responsibility for
their families. Of the remaining 77%, women play important roles despite the presence of
men. These communities live in a socio-cultural environment strongly marked by the
development of interrelationships, the significant participation of both men and women in
the production of resources and frequent use of the services made available to them.
Activities related to trade and foodstuffs are chiefly the responsibilities of women, who
remain predominant in the informal sector workforce. The loss of commercial activities
related to fruit production and market gardening will be compensated by the development
of other types of activities, such as the marketing of fish and sale of building materials
(natural sand and gravel available in the resettlement area), as well as employment inn
the building and development of new districts.

3.2.6 Indeed, the project creates several opportunities for support to women, youths
and vulnerable groups with the creation of jobs during the implementation and operational
phases. For example, in the commercial areas to be established under the project, a
certain area will be allocated to women to enable them to develop commercial activities,
 14

such as catering, sewing and the sale of vegetables and fishery products, or building
materials or fruits. The jobs generated by the toll highway (collection of toll levies, refuse
collection and periodic cleaning of highway) could be filled by women and youths. The
highway will facilitate trade and the rapid transportation of their produce countrywide and
within the sub-region.

Social

3.2.7 The main negative impact of the project concerns the displacement of the
inhabitants of the PIS zone. However, the positive impacts largely outweigh this impact.
Indeed, 70% of the 3,350 families affected by the project will benefit from modern housing
in a healthier environment, title deeds for their dwelling plots, and modern facilities. It is
expected that the PIS district will become an autonomous urban sector capable of
stimulating its own economic and social development. Alternatively, this transformed
urban centre will provide additional impetus to the future development of the Dakar
metropolitan centre with its job-creating potential.

Compulsory Resettlement

3.2.8 For the 3,350 project affected families (3,000 on the highway area and 350 on the
PIS restructuring roads), there will be no compulsory resettlement. Indeed, nearly 70% of
these families have expressed the wish to be resettled, and the remainder have agreed to
a cash payment as expropriation compensation. This payment or the deposit of the
amounts in a dedicated account will be one of the conditions precedent to first
disbursement of the ADF loan.

4 PROJECT IMPLEMENTATION AND MONITORING-EVALUATION

4.1 Implementation Arrangements

Executing Agency

4.1.1 The Ministry of the Economy and Finance (MEF) and the Ministry in charge of
Roads will jointly assume the role of Project Executing Agency and Concession Granting
Authority as stipulated in Decree 2007-170 of 13 February 2007. APIX-SA has been
designated as ‘Delegated Concession Granting Authority’ to organize, coordinate and
monitor the preparation and implementation of BOT- type projects. It will be mainly
responsible for ensuring the accounting and financial monitoring of the project.

4.1.2 APIX is a public limited company with majority public capital, and with the
strategic mission of promoting major investments. It comprises several Departments,
including the Administrative and Financial Department (DAF) responsible for the financial
and accounting management of the project, and the Highway Project Department (DPA)
which will be involved in monitoring the implementation of this project.

4.1.3 For the present project, the DPA will be responsible for monitoring its preparation
and implementation at thee technical level. The DPA has a staff of 7, comprising 3
engineers, 2 specialists in environmental and social issues, one PPP specialist and a
communication specialist. It has been strengthened by technical assistance recruited in
2007 to assume a project management assistance role for Component A, the
implementation of which will be under the oversight of the concessionary company.
Indeed, the concessionary company will carry out road works, procure toll equipment and
 15

operate them with its own resources. Similarly, it will ensure the proper delivery of all
these services. On this component, APIX will play only a monitoring role.

Institutional Arrangements

4.1.4 The operation to clear the rights of way and resettle the persons affected by the
project lies on the project implementation critical path. Given the sensitive nature of this
operation, a Resettlement and Social Communication Unit (URCS) will be set up in the
DPA. The URCS, which will be headed by a sociologist and an urban specialist, will have
an office on the project site to communicate with the District Committees, the Urban
Resettlement Committees (local representatives of the communities to be resettled or
compensated), and to coordinate the activities of the NGOs, government departments and
agencies, and other actors involved in the resettlement issues. The URCS will be
strengthened by technical assistance financed by the World Bank.

4.1.5 Monitoring and management of the implementation of the public works activities of
components B and C, financed by AFD and the World Bank, will be delegated to AGETIP
which has proved to be an efficient structure for controlling contracts of this type in
different sectors with WB financing. The “Fondation Droit à la Ville” (FDV) [Rights to the
City Foundation], a specialized operator in Urban Restructuring and Land Regulation will
be contacted for issues relating to land registration and the issuance of surface owner’s
rights (SR) to eligible persons in the restructured PIS and resettlement area.

Procurement

4.1.6 Under the project, the Bank will finance only the Government subsidy to the
concessionary company which will carry out the highway works and manage the toll
system. The concessionary company selection process started in 2007 prior to the Bank’s
involvement and, in December 2008, led to the selection of the EIFFAGE Group. In
accordance with its Rules of Procedure, the Bank carried out an ex post review of this
process and noted certain shortcomings in the pre-qualification phase and with regard to
some of the provisions of the bidding documents finally approved by the Bank. Following
its overall analysis, the Bank concluded that the shortcomings noted had not significantly
affected the selection process and therefore considered the process acceptable on the
whole. The concessionary company selection process is described in detail in Annex A.4.

Disbursement

4.1.7 The direct disbursement method has been retained for the works financed by the
ADF loan. In other words, the concessionary company will present its invoices to APIX
which will submit them to the Debt and Investments Department (DDI) or to any other
structure with the required delegated authority, a payment request made out according to
the Bank’s standard format. The payment requests will be made out on the basis of key
stages in the implementation of the highway construction works by the concessionary
company.
 16

Audit

4.1.8 The project accounting will be maintained by APIX through its Administrative and
Financial Department. This Department has adequate accounting and financial monitoring
capacity. An external audit of accounts will be conducted annually by an audit firm to be
recruited by APIX on World Bank financing. The TOR will take into account the specific
requirements of the ADF as regards project auditing. The audit reports will be submitted to
the donors no later than 6 months after the end of each accounting year.

National Laws and Regulations

4.1.9 The project was formulated in such a way as to rely as far as possible on existing
structures and regulations for its implementation. The financial and procurement
management capacities were assessed and considered, overall, to be satisfactory. Thus
for BOT-type contracts and to guarantee transparency of the procedure and the balance
of power between the concession grantor and the potential concessionary companies, the
Infrastructure Council (CI) was established by Law No. 2004-14 of 1 March 2004. The CI
is required to give its opinion on the bidding procedure and the preparation of bidding
documents at each stage of the process. Similarly, a Procurements Commission has been
established to rule on the final choice of concessionary company. The financial
management will be carried out by the Administrative and Financial Department of APIX,
which has a financial management manual and its statements are audited in conformity
with international audit standards.

Implementation and Supervision Schedule

4.1.10 The project will be implemented from July 2009 to May 2014 in accordance with
the implementation schedule at the beginning of this report. Upon approval of the loan,
the ADF will launch the project and subsequently field supervision missions, the indicative
schedule and composition of which are presented in Annex A.8.

4.2 Monitoring-Evaluation

4.2.1 Monitoring–evaluation will comprise internal and external monitoring, joint donor
supervision missions, a mid-term review and a final evaluation, including the completion
reports. Quarterly status reports will be prepared by the consultants responsible for
providing project management assistance to APIX. APIX will, within three months of the
end of project implementation, prepare the Borrower’s Completion Report on the basis of
a format to be communicated by the donors. Furthermore, on WB financing, a consulting
firm will be recruited for the annual monitoring-evaluation of project impact indicators,
through regular surveys on beneficiaries.

4.3 Governance

4.3.1 The participatory approach widely used under the project for the PAPs could
mitigate the risks of bad governance often related to the payment of compensation to the
PAPs under such projects. Indeed, from the outset, the PAPs organized themselves into
neighbourhood committees to monitor the different stages, the identification of the
population and their property, and their valuation and payment. A special committee
chaired by the Governor of the Dakar Region, regrouping all the parties, is responsible for
monitoring the implementation of the expropriations and compensation. Furthermore,
donor involvement in the ESIAs and RAPs and in the project will make it possible to
 17

ensure that the compensation and resettlements are smoothly conducted. The fact that
the actual works will be carried out by the private concessionary company partly from its
own resources, will also mitigate the corruption risk. As regards the procedure for the
selection of the Concessionary Company, the WB and AFD monitored and supported
APIX by financing its technical, legal and financial counseling services. The Bank
conducted an ex-post review of the selection process, and deemed it to be acceptable.

4.4 Sustainability

4.4.1 Project sustainability will depend on the quality of the works, the availability of
resources to pay the recurrent maintenance costs, road operating conditions and the
capacity of contractors to carry out the maintenance works. The technical construction
options retained were determined on the basis of the intensity of existing and future traffic.
The concession formula adopted means that the concessionary company will have to take
the greatest care in building the structure in order to limit the risk of interventions for
repairs. The installation of axle scales and control of axle loads will be carried out by the
Concessionary Company which thereby reduces the risk at its expense related to repairs
necessitated by premature deterioration of the road. During the period of the concession,
routine and periodic maintenance will be carried out by the Concessionary Company
using the toll revenues, part of which could be paid as levy to the Concession Authority
depending on the amount of revenues. Beyond that period, maintenance will be carried
out through the Autonomous Road Maintenance Fund (FERA), a second generation road
fund established in 2007 by the Government and which is already operational. FERA’s
key staff are already in place since 1 April 2009. The Government has taken measures
for the resources from the road user charges to be paid directly into the FERA accounts.
A schedule has been determined for the quarterly payment of budgetary provisions. The
budgetary allocation for road maintenance for 2009 amounts to CFAF 21 billion and the
maximum amount of road user tax for that year is CFAF 16 billion, making a total of CFAF
37 billion for road maintenance in 2009.

4.5 Risk Management

4.5.1 The major sector risks are non-consolidation of TSP2 outputs, delays in the
implementation of projects in the Urban Mobility Programme (PAMU) and non-application
of regional regulations on facilitation of transport and control of axle load. As regards the
project, the main risks are : (i) the problem of mobilizing counterpart resources for the
payment of expropriation compensation; (ii) continuing support of the population for the
resettlement and district restructuring processes which may affect the implementation
period; (iii) an increase in costs after competitive bidding or during works execution and a
change in the level of available financing depending on exchange rate trends; and (iv) toll
avoidance and its impact on the management of the concession during the operational
phase.

4.5.2 The sector risks will be mitigated by the fact that: (i) FERA, one of the last reforms,
has been put in place, but it needs to be consolidated by securing resources from fuel
charges and, after the two urban projects (UP), PRECOL financed by the World Bank and
whose works will start soon under the PAMU, should strengthen and broaden the outputs
of the two UPs, and (ii) since 2003, with the support of donors including the Bank, the
ECOWAS Region States have adopted the various texts relating to facilitation and are
committed to implementing them by 30/12/2009. To that end, the Government has adopted
an Order (No. 00575 of 29/01/2009) to limit the axle control points on inter-State highways.
Similarly the Government is making efforts to implement the ECOWAS Regulation on
 18

control of axle load on the highways. Sensitization campaigns are currently being
organized for transport operators to ensure effective implementation of these decisions
before the end of 2009.

4.5.3 Concerning mobilization of the counterpart funds, it should be noted that the
Government’s strong commitment toward this project has already led to the financing of
the first two sections of the highway from the national budget, and that the expected
annual contribution of CFAF 12.5 billion from the Government will be borne by the budget.
Furthermore, in view of the impact of this project, the Government can, after IMF’s
approval, implement a specific market borrowing mechanism (bond issue) to finance this
project. The continuing support of the population for the resettlement process is
guaranteed by: (a) the benefits of better situation in the future than now due to the
selected option of building houses with donor financing on a fully serviced site and
assigning them to displaced persons following land regularization; and (b) heightened
visibility of implementation of the resettlement process by allocating plots, as from 2010,
for the houses to be built by BPW enterprises, which is a different mechanism from the
first restructurings/regularizations carried out in Senegal.

4.5.4 The risks related to an increase in the cost of works will be limited because: (i) as
regards Component A, the Concessionary Company’s financial bid includes coverage of
this risk and the concession contract is firm and non reviewable; (ii) as for Components B
and C with concern the building of houses, the costs estimates are based on recent prices
and, in view of the division of the works into lots, there will be keen competition because in
Senegal there are many SMEs in the building sub-sector which are competent and have
adequate skilled labour. Regarding the impact of toll avoidance, it should be noted that toll
revenues are estimated at between CFAF 20 billion and CFAF 24 billion per annum and
the toll sensitivity studies have shown that, even with a drop in traffic of 20% to 30%, the
financial yield would always be guaranteed. The impact of flooding as a result of climatic
risks will be mitigated through the construction of storm-and wastewater drainage,
collection and disposal structures under this project.

4.6 Knowledge Development

4.6.1 The establishment of real PPPs in the road transport sector in Africa is slow in
materializing despite the desire expressed by the States under NEPAD to attract private
investments. Implementation of the project will therefore serve as an example to stimulate
the PPP mechanism. The concession monitoring reports will constitute the main
information media. This experience will be shared and compared with other similar
experiences in the world through seminars organized by the project donors.

5 LEGAL FRAMEWORK

5.1 Legal Instrument

5.1.1 The Bank will use the project loan to finance this operation from ADF resources.
The loan duration will be 50 years, with a 10 year grace period. It will be subject to a
service charge of 0.75% on amounts disbursed and outstanding, and a commitment fee of
0.50% on the undisbursed amount, beginning 120 days after the signing of the Loan
Agreement.
 19

5.2 Conditions for Bank Intervention

A. Conditions Precedent to Effectiveness

5.2.1 The loan agreement to be signed between the ADF and Senegal will become
effective when the Borrower has fulfilled Section 12.01 of the General Conditions
applicable to Loan Agreements and Guarantee Agreements.

B. Conditions Precedent to the First Disbursement

5.2.2 In addition to effectiveness of the Loan Agreement, the first disbursement of the
loan resources shall be subject to fulfillment by the Borrower, to the satisfaction of the
Fund, of the following conditions:

(i) Provide the Fund with evidence that APIX has opened and will maintain for
the project duration in a bank acceptable to ADF, a CFAF account (Project
Account) to receive the counterpart funds that shall be paid promptly on the
basis of the expenditure schedule for the entire project.

(ii) Provide the Fund with evidence of the payment or lodging in a separate
account (Expropriation Account) acceptable to the Fund, of the resources to
compensate the displaced persons affected by the works on the Malick-Sy-
Pikine and Keur-Massar-Diamniadio sections, as well as on the Tivaouane
Peulh resettlement area.

(iii) Provide the Fund with evidence of the written commitment by the other
donors to participate in the financing of the public part of the project; and

(iv) Provide the Fund with evidence of the signing of the concession contract
duly authorized or ratified and transferred to the project company under the
terms of the law, as well as evidence of the signing of the external financing
agreements required under the Concession Contract.

C. Other Loan Conditions

5.2.3 In order to avoid the suspension of disbursements during project implementation,

the Borrower shall also fulfill the following conditions:

(i) Regularly replenish the Project Account with counterpart funds in

accordance with the expenditure schedule;

(ii) No later than 31 December 2011, effect payment of, or lodge in the
Expropriation Account, the amount required for compensation of the
displaced persons affected by the construction works on the Pikine-Keur
Massar section of the highway and the restructuring of Pikine Irrégulier Sud;
and

(iii) Effectively assign, no later than 31 December 2012, houses in the

resettlement area to the persons affected by the project and who have opted
to be resettled.
 20

5.3 Compliance with Bank Policies

Does this project comply YES. With regard to the process for the procurement of the services of
with all the applicable the Concessionary company which had been initiated prior to the
Bank rules? Bank’s involvement in the project, the pre-selection and bidding
documents used are those prepared at national level in conformity with
the BOT (build operate and transfer) national law. In accordance with
the provisions of its Rules of Procedure relating to the PPP contract,
the Bank carried out an ex post review of the process which it has
deemed acceptable on the whole.

6 CONCLUSIONS AND RECOMMENDATIONS

6.1 Conclusions

6.1.1 As it stands, the project should, after implementation, facilitate entry to and exit
from Dakar City and strengthen regional economic integration, particularly with Mali and
Guinea. In this respect, it is in keeping with the TSP and pillars of Senegal’s PRSP and
RBCSP for 2007-2009.

6.1.2 Technically, the project is well designed. The negative environmental impacts
have been identified, and mitigation measures incorporated in the project. It is
economically viable, with an average economic rate of return of 29.28% which is above
the opportunity cost of capital estimated at 12%. The project is financially profitable with a
financial rate of return of 20.16%. The sustainability of the investments will be ensured by
the PPP formula, which makes the concessionary company responsible for the
maintenance of the highway and toll equipment.

6.2 Recommendations

6.2.1 In light of the foregoing, it is recommended that the ADF should grant to the
Government of Senegal a loan of UA 45 million. The loan will be used to implement the
project as designed and described in this report. It will be subject to fulfilment of the
conditions specified in the Loan Agreement.
 Annex I
SENEGAL: DAKAR-DIAMNIADIO HIGHWAY CONSTRUCTION PROJECT
Comparative Socio-Economic Indicators of the Country
Senegal - Development Indicators

Senegal
Developing
Social Indicators Africa
countries
1990 2008 *
Area ( '000 Km²) 197 30 323 80 976
Total Population (millions) 7,9 12,7 985,7 5 523,4
Population growth (annual %) 2,9 2,5 2,3 1,4
Life expectancy at birth, total (years) 57 63 55 66
Mortality rate, infant (per 1,000 live births) 91,3 65,1 83,9 53,1
Physicians per 100,000 People 5,1 5,2 39,6 78,0
Births attended by skilled health staff (% of total) … 51,9 51,2 59,0
Immunization, measles (% of children ages 12-23 months) 57,0 84,0 83,1 81,0
School enrollment, primary (% gross) 59,0 83,5 99,6 106,0
Ratio of girls to boys in primary education (%) 74 100 92 100,0
Illiteracy rate, adult total (% of people ages 15 and above) … 57,4 33,2 26,6
Access to Safe Water (% of Population) 67,0 77,0 64,3 84,0
Access to Sanitation (% of Population) 26,0 28,0 37,6 53,0
Human Develop. (HDI) Rank (Over 179 Countries) … 153 … …
Human Poverty Index (% of Population) … 41,1 38,7 …

Senegal
Economy 2000 2007 2008 2009**
GNI per capita, Atlas method (current US$) 450 820 … …
GDP (current Million US$) 4 681 11 169 12 602 12 120
GDP growth (annual %) 3,2 4,8 3,7 3,5
Per capita GDP growth (annual %) 0,6 2,2 1,2 1,1
Gross Domestic Investment (% of GDP) 20,5 27,1 28,2 26,2
Inflation (annual %) 0,7 5,9 5,8 4,0
Budget surplus/deficit (% of GDP) 0,5 -3,8 -4,5 -4,3

Trade, External Debt & Financial Flows 2000 2007 2008 2009**
Export Growth, volume (%) -13,5 -0,1 8,9 11,2
Import Growth, volume (%) -1,0 7,6 7,9 9,2
Terms of Trade (% change from previous year) 3,3 -9,8 -9,1 14,7
Trade Balance ( mn US$) -417 -2 329 -2 936 -2 057
Trade balance (% of GDP) -8,9 -20,9 -23,3 -17,0
Current Account ( mn US$) -332 -1 259 -1 788 -1 057
Current Account (% of GDP) -7,1 -11,3 -14,2 -8,7
Debt Service (% of Exports) 13,8 6,5 5,8 6,7
External Debt (% of GDP) 76,2 42,8 44,0 50,6
Net Total Inflows ( mn US$) 475,7 964,6 … …
Net Total Official Development Assistance (mn US$) 425,1 842,8 … …
Foreign Direct Investment Inflows (mn US$) 62,9 78,0 … …
External reserves (in month of imports of goods & services) 2,6 4,3 2,6 …

Private Sector Development & Infrastructure 2000 2006 2007 2008

Time required to start a business (days) … 58 58 8
Investor Protection Index (0-10) … 3 3 3
Main Telephone Lines (per 1000 people) 20 23 22 …
Mobile Cellular Subscribers (per 1000 people) 24 247 293 …
Internet users (000) 40.0 650.0 820.0 …
Roads, paved (% of total roads) 29,3 … … …
Railways, goods transported (million ton-km) 371 … … …

Source: ADB Statistics Department, based on various national and international sources
* Most recent year Last Update: March 2009
** Forecast
 Annex II

SENEGAL: DAKAR-DIAMNIADIO HIGHWAY CONSTRUCTION PROJECT

Table of ADB Portfolio in the Country as at 25/03/2009
Net Amount Disb. Age
Approval Signature Effect. Closure approved Disb. Rate. duration
Project Name Date. Date Date Date amount ratio
Risk
(MUA) (M. UC) %
Agriculture Sector
Livestock Project - Phase II (PAPEL) 17-May-00 14-Jul.-00 1-Feb.-02 30-June-09 10.0 9.9 98.8 1.19 PPP
Anambe Rur. Dev. Support 26-Oct.l.-
25-April.-01 13-Feb.-02 31-Dec.-08 7.2 4.9 67.6 1.19 PPP
Project(PADERBA) 01
Rural Infrastructure Project (PPC/PNIR) 3-April.-02 6-May-02 4-Feb.-03 30-Dec.-08 11.9 11.1 94.0 1.53 NO
Local Small-scale Irrigation Support Project
22-Oct.-03 18-Dec.-03 7-Sept.-04 31-Dec.-10 14.3 4.3 30.4 0.91 NO
(PAPIL)
Casamance Rural Development Support
19-Oct.-05 11-Nov.-05 22-mars-06 21-Dec.-12 20.0 1.6 8.2 0.60 PPP
Project (PADERCA)
5 Operations 63.3 31.9 50.3 0.93
Infrastructure Sector
Rural Electrification Project 13-Oct..-04 29-Nov.-04 8-Aug.-06 31-Dec.-10 9.6 0.1 1.6 0.53 PP
Road Maintenance Project (PER) 29-June-05 20-July-05 21-June-06 31-Dec.-09 29.0 13.7 47.1 0.83 NO
2 Operations 38.6 13.8 35.8 0.65
Water and Sanitation
Dakar City Sanitation Project (PAVD) 12-July-01 26-Oct..-01 22-Aug.-02 30-Dec.-08 11.9 11.3 94.9 1.65 PPP
21-Sept.-
Rural DWSS Sub-Programme (PEPAM) 26-Oct.-05 23-Jan.-06 31-Dec.-11 25.0 16.5 66.0 0.79 NO
05
Ziguinchor Sanitation Study (FAE) 22-Dec.-06 25-June-07 9-Aug.-07 31-May-09 0.8 0.4 49.8 0.93 NO
Implementation of Senegal PAGIRE (FAE) 31-Aug.-07 10-Oct..-07 15-May-08 30-Nov.-09 1.4 0.9 62.0 0.43 NO
Second DWSS Sub-Programme (PEPAM II) 18-Feb.-09 26-Feb.-09 31-Dec.-13 30.0 0.0 0.0 0.00 NO
5 Operations 69.2 29.1 42.1 0.97
Social Sector
Health Project II (loan) 18-June-03 21-July-03 22-April.-04 31-Dec.-09 10.0 4.5 45.5 0.99 PPP
Health Project II (grant) 18-June-03 21-July-03 22-April.-04 31-Dec.-09 1.4 0.9 66.7 0.99 PPP
Education Project IV (loan) 25-June-03 21-July-03 15-Oct.-04 31-Dec.-09 13.8 5.9 42.3 0.89 PPP
Education Project IV (grant) 25-June-03 21-July-03 15-Oct..-04 31-Dec.-09 1.0 0.4 44.3 0.89 PPP
2 Operations 26.2 11.7 44.9 0.94
Multisector
Statistics Directorate Support Project 12-Dec.-02 7-Feb.-03 5-July-04 31-Dec.-08 1.6 1.2 75.9 1.57 PPP
Cadastral Survey Modernization Project
22-April.-05 17-May-05 12-Aug.-05 31-Dec.-09 2.5 1.9 75.1 1.45 NO
(PAMOCA)
Poverty Reduction Support Project (PASRP) 22-Dec.-08 22-Dec.-08 23-Dec.-08 31-Dec.-10 30.0 20.0 66.7 0.08 NO
3 Operations 34.1 23.1 67.7 1.01
TOTAL 17 OPERATIONS 231.3 109.6 47.4 0.93
 ANNEX III
SENEGAL: DAKAR-DIAMNIADIO HIGHWAY CONSTRUCTION PROJECT
PROJECT MAP
Cette carte a été fournie par le personnel de la Banque Africaine de Développement exclusivement à l’usage des lecteurs du rapport auquel elle est jointe. Les dénominations utilisées et les frontières figurant sur cette carte n’impliquent de
la part du Groupe de la BAD et de ses membres aucun jugement concernant le statut légal d’un territoire ni aucune approbation ou acceptation de ses frontières