AFRICAN DEVELOPMENT FUNDTRATUNIS BP 323 TUNISBELVEDERE 1002 Tel - PDF document

1 AFRICAN DEVELOPMENT FUNDTRA-TUNIS B.P. 3
AFRICAN DEVELOPMENT FUNDTRA-TUNIS B.P. 323 TUNIS-BELVEDERE 1002 Tel.: (216) 71 333 511 Fax: (216) 71 352 933PROJECT INFORMATION SHEET Date: 31 July 2009 The information given hereunder is intended to provide guidance to prospective suppliers, contractors, consultants and all persons interested in the procurement of goods and services for projects approved by the Boards of Directors of the Bank Group. More detailed information can be obtained from the executing agencies of the Borrower and the Donees. COUNTRY AND PROJECT TITLE : Multinational: Tanzania-Rwanda-Burundi Phase II Dar es Salaam-Isaka-Kigali/Keza-Musongati Railway Project StudyPROJECT LOCATION : Tanzania, Rwanda and Burundi - BORROWER : United Republic of Tanzania - DONEES : Republic of Rwanda and Republic of Burundi 4. EXECUTING AGENCY : Ministry of Infrastructure of Rwanda Boulevard de l’Umuganda B.P. 24 Kigali, Rwanda STUDY DESCRIPTION : The study comprises Study Services; ( Technical Assistance Services; ( Financial Audit Services; and ( Study Coordination and Management. SOURCES OF FINANCING ADF : 95.24% Government of Tanzania : 1.58% Government of Rwanda : 1.60% Government of Burundi : 1.58% LOAN AND GRANT

2 APPROVAL DATE : November 2009 PROBAB
APPROVAL DATE : November 2009 PROBABLE DATE OF STUDY START-UP/DURATION: - START-UP : September 2010 - DURATION : 15 months PROCUREMENT OF WORKS AND SERVICES: Services will be procured in accordance with ADF rules and procedures as follows: - Study : Consultation on the basis of a short list - Technical Assistance : Consultation on the basis of a short list- Financial Audit : Consultation on the basis of a short list iii iv v MULTINATIONAL: TANZANIA-BURUNDI-RWANDA PHASE II DAR ES SALAAM-ISAKA-KIGALI/KEZA-MUSONGATI RAILWAY PROJECT STUDY RESULTS-BASED LOGICAL FRAMEWORK Inception Date: August 2009 Completion Date: March 2012 Design Team: A. Mohamed, N. Senou, E. Masengo, OINF.2 HIERARCHY OF OBJECTIVES EXPECTED OUTPUTS SCOPE (TARGET POPULATION) PERFORMANCE INDICATORS INDICATIVE TARGETS AND TIME FRAMES ASSUMPTIONS/RISKS Study goal Contribute to strengthening railway infrastructure of Transport Corridors of East Africa with a view to ensuring regional integration and developing areas with mining , industrial and agricultural potential Impacts Existing railway line rehabilitated and connections towards Rwanda and Burundi constructed: Diversified trade c

3 hannels and increased inter-regional tra
hannels and increased inter-regional trade- Tanzania, Rwanda and Burundi (about 59.4 million inhabitants), and - EACImpact indicators Railway investment programme between the three countries implemented Source : statistics from the three countries Method : statistics prepared by the three countries and the Progress anticipated in the long term 970 km of existing Dar es Salaam- Isaka railway line studied by 2012 and rehabilitated in 2018 700 km of new Isaka-Kigali/Keza-Musongati railway lines studied by 2012 and constructed in 2018 Source : statistics from the three countries Method : statistics prepared by the three countries and the EACRisk statement Failure to pursue regional integration policy and deterioration of stability in the EAC Region Mitigative measure Commitment of Governments of the EAC Region Study objective Provide an optimal engineering design of the Dar es Salaam-Isaka-Kigali/Keza-Musongati railway line on the Central Transport Corridor Recommend Public Private Partnership (PPP) models for financing the project and managing railway infrastructure Effects Dar es Salaam-Isaka-Kigali/Keza-Musongati rail link study carried out and decision-making tools put at the disposal of go

4 vernments for financing the project and
vernments for financing the project and managing railway infrastructure Interest shown by private operators Beneficiaries - Shinyanga and Kagera Regions of Tanzania, Burundi and Rwanda (about 22.7 million inhabitants) Impact indicators Mobilization of financing for works on the railway line based on the study Source study reports and Bank supervision reports Method statistics prepared by the three countriesProgress anticipated in the medium term In 2012: Round table of development partners and private sector held 2 Interest shown by potential project co-financiers Sources : Ministry of Infrastructure Development of Tanzania, MININFRA of Rwanda and Ministry of Transport, Posts and Telecommunications of Burundi Method : statistics prepared by the three countriesRisk statement Non-adherence to deadlines for the conduct of study and validation of reports Lack of interest by the private sector and donors in financing the project Mitigative measures Adequate and qualified team of consultants Regular consultation of potential investors during the study Activities Preparation of requests for proposals (RFPs) and procurement of consultancy services (study, technical assistance and financial audit) Pr

5 ovision and monitoring of services (stud
ovision and monitoring of services (study, technical assistance and financial audit) Organization of seminars, a workshop and a round table, and validation of study reports Outputs RFPs prepared and approved within the set deadline, and contracts awarded and signed Study, technical assistance and financial audit reports produced on time and validated by the three countries Seminars, workshop and round table of development partners and private sector heldBeneficiaries MID (Tanzania), MININFRA (Rwanda) and MTPT (Burundi), EAC, donors and private sector Output indicators Contracts for study, technical assistance and financial audit Study reports and results of seminars, workshop and round table Sources reports of the consulting firm, technical assistance reports and Bank supervision reportsTarget value of indicator Contracts signed Reports produced on time and validated by the three countries and the Bank, seminars, workshop and round table held Risk statement Delays in the procurement of consultancy services Lack of coordination and inefficient monitoring of study by the countries Mitigative measures Realistic contract award plan 2 Efficient study coordination and monitoring team RESOURCES (UAM

6 ) SOURCE AMOUNT (UAM) Studies 4.
) SOURCE AMOUNT (UAM) Studies 4.26 ADF 5.00 95.24 Technical Assistance 0.46 TANZANIA 0.083 1.58 Financial audit 0.04 RWANDA 0.084 1.60 Study coordination and monitoring 0.49 BURUNDI 0.083 1.58 TOTAL 5.25 TOTAL 5.25 100 TABLE OF CONTENTS ......................................... PAGE1. INTRODUCTION ........................................................................................................................ 1PROPOSED STUDY .................................................................................................................... 2Study Design and Formulation .............................................................................................. 2 Study Objective ...................................................................................................................... 4Study Description .................................................................................................................. 5Estimated Study Cost ............................................................................................................ 6Sources of Financing .............................................................................................

7 ................ 6Expenditure Schedule a
................ 6Expenditure Schedule and Disbursement Arrangements ...................................................... 7 ORGANIZATION AND MANAGEMENT ................................................................ 8Executing Agency .................................................................................................................. 8Study Management ................................................................................................................ 8Implementation Schedule .......................................................................................................Reporting ............................................................................................................................. 104. PROCUREMENT OF SERVICES ........................................................................................... 11 JUSTIFICATION ....................................................................................................... 116. OBLIGATIONS OF THE CONSULTANTS AND THE GOVERNMENTS ....................... 12Obligations of the Consultants ............................................................................................ 12Obligations of t

8 he Governments .........................
he Governments .......................................................................................... 137. CONCLUSIONS AND RECOMMENDATIONS ................................................................... 13Conclusions ......................................................................................................................... 13Recommendations ................................................................................................................ 14 1.6 As part of implementing the regional integration policy and in a bid to support economic development, in particular mining, industrial and agricultural development, Phase I of the Isaka-Kigali/Keza-Musongati railway project study was financed with an ADF grant, an IPPF-NEPAD grant and a Development Bank of South Africa (DBSA) grant. In particular, Phase I study analyzed the different rail alignments with the associated physical and technical constraints, project environmental and social impact, the economic and financial feasibility and the existing institutional framework. The Phase I study results were presented to the round table of development partners and the private sector held in Tunis in March 2009. Participants

9 in that international forum, notably mi
in that international forum, notably mining companies, railway operators, investment and development banks, showed interest in the project and encouraged the three countries to pursue the study. Following the conclusions of the round table, and to ensure the implementation of the investment programme and capitalize on the interest shown in the project, the three countries requested the Bank to finance Phase II of the study. 1.7 The project objectives are in keeping with NEPAD’s in the transport sector. They are also in line with: (i) the Country Strategy Papers (CSPs) of Tanzania, Rwanda and Burundi and (ii) ADF-XI operational priorities which place a high premium on infrastructure, governance and regional integration. 1.8 This loan and grant proposal is a follow-up to a joint request by the three countries to the Bank to finance Phase II of the project study. This Phase provides for: (i) an engineering, economic, financial, institutional, environmental and social study; and (ii) recommendation of models for financing the project and managing railway infrastructure. It is based on the results of the preparation mission (see the Terms of Reference attached) conducted in June-July 2009 and on d

10 ata collected in the three countries.
ata collected in the three countries. 2. PROPOSED STUDY 2.1 Study Design and Formulation 2.1.1 Phase II of the project study will cover the existing Dar es Salaam-Isaka railway link and its Isaka-Kigali/Keza-Musongati extension. Phase II is part of the implementation by the three countries of the EAC priority investment programme which attaches special importance to multinational poverty reduction projects, through regional infrastructure development, and to cooperation among member countries. The preparation of the Terms of Reference (TORs) under Phase II of the study drew lessons from Phase I (findings of the study and conclusions of the round table) in terms of design, cost and approach. In that regard, Phase II will focus more on deepening the institutional framework and structuring the project in the form of Public Private Partnership (PPP). The preparation of the TORs also made use of data collected during the preparation mission and discussions in the three countries, notably with representatives of the three governments, rail transport specialists in Tanzania, rail transport users (traders, industrialists, etc.) and private sector operators, including mining companies active in the thr

11 ee countries. 2.1.2 Phase II of the stu
ee countries. 2.1.2 Phase II of the study will also deepen: (i) the analysis of the project’s socio-economic benefits, notably for the most vulnerable population segments (women, children, rural dwellers, etc.), in terms of business development and enhancement of economic potential (particularly in mining, industry and agriculture) as well as facilitating the low-cost marketing of goods and movement of people; (ii) the comparative analysis of modes of transport (road, rail and rail-road and lake-rail combination) on the corridors to Rwanda and Burundi; (iii) the environmental and social impact of the future railway project (impact of Participatory Approach 2.1.7 In line with the participatory approach, the scope and methodology of the study were discussed during the terms of reference preparation mission. Discussions were held with transport specialists (especially rail transport specialists), governments of the three countries, private sector operators (particularly mining companies operating in the three countries) and the population in the PIA. The proposed study will also follow the participatory approach (public consultation) in accordance with the relevant Bank guidelines. To that end, n

12 ine seminars and/or workshops (three per
ine seminars and/or workshops (three per country) will be organized for various socio-professional groups (population, private operators, NGOs, donors, community organizations, etc.) and ministerial departments of the three countries. Public consultations in all areas covered by the study will be held with various stakeholders and beneficiaries, including public and private sector vocational associations, local authorities and development committees, to obtain points of view with regard to the construction of the proposed railway line. The observations and recommendations made at the end of the seminars and workshops will be reflected in the final study report. Private Sector Participation 2.1.8 The three Governments have liberalized transport sector activities by involving the private sector. However, they continue to assume responsibility for mobilizing investment resources. Hence, the Tanzanian Government leased the technical and commercial operation of the railway network of the former Tanzania Railways Cooperation (TRC) to a private operator, Tanzania Railway Limited (TRL). However, the rail assets remain the property of the Tanzanian State through Reli Assets Holding Company (RAHCO) which

13 replaced Tanzania Railways Cooperation.
replaced Tanzania Railways Cooperation. RAHCO manages the leased rail assets and retains responsibility for implementing heavy infrastructure renewal projects. The Government of Tanzania also established a regulator, Surface and Marine Transport Agency (SUMATRA), responsible for issuing railway operating licenses, ensuring railway safety and approving engineering and maintenance standards. The consultant will examine the operation of the railway concession agreement in force between TRL and the Government of Tanzania as well as other concession agreements in the region, and draw lessons for the proposed study. Furthermore, as part of the national transport policy which prioritizes private sector involvement in transport activities, the three Governments intend to involve the private sector in financing the project and managing future railway infrastructure in the form of Public Private Partnership (PPP). 2.2 Study Objectives 2.2.1 The overall study objective is to contribute to strengthening railway infrastructure of East Africa Transport Corridors to meet the needs of regional integration and development of areas with mining, industrial and agricultural potential. 2.2.2 The specific objectiv

14 e of Phase II of the study is to: (i) pr
e of Phase II of the study is to: (i) provide an optimal engineering design of Dar es Salaam-Isaka/Keza-Musongati railway line on the Central Transport Corridor; and (ii) recommend Public Private Partnership (PPP) models for financing the project and managing railway infrastructure. Study coordination and monitoring the Study Coordination Unit and the Study Technical Monitoring Committee set up since 2004 under Phase I will coordinate and monitor the study. This task includes administration, management and routine monitoring of the technical, administrative and financial implementation of study activities. 2.4 Study Estimated Cost The estimated cost of Phase II of the study, net of taxes and customs duty, will amount to USD 8.15 million or UA 5.25 million, of which UA 4.36 million (83.06% of the study cost) payable in foreign exchange and UA 0.89 million (16.94% of the study cost) payable in local currency. This cost includes 5% and 4.06% provision for physical contingencies and price escalation, respectively. It was estimated on the basis of the unit prices of recent studies carried out in the three countries and others approved lately by the ADF. The estimated study cost, details of which

15 are given as Annex 3, is summarized in
are given as Annex 3, is summarized in Table 2.1 below. Study Estimated Cost (in USD Million and UA Million) Component USD (Million) UA (Million) Foreign Exchange Local Currency Total Exchange Local Currency Total A – Study and technical assistance services 5.87 0.85 6.72 3.78 0.54 4.32 A.1 Study 5.310.766.073.420.48 3.90 A.2 Technical assistance to SCU 0.56 0.09 0.65 0.36 0.06 0.42 B – Financial audit services 0.05 - 0.05 0.03 - 0.03 C – Study coordination and monitoring 0.28 0.41 0.69 0.18 0,27 0.45 Base cost 6.20 1.26 7.46 3.99 0.81 4.80 Physical contingencies (5%) 0.31 0.06 0.37 0.20 0.04 0.24 Price escalation (4.06%) 0.26 0.05 0.32 0.17 0.04 0.21 Total cost (net of taxes and customs duty) 6.77 1.37 8.15 4.36 0.89 5.25 2.5 Sources of Financing2.5.1 The study will be financed by the ADF and the Governments of Tanzania, Rwanda and Burundi. ADF financing will not exceed UA 5 million (including UA 3.3 million from multinational resources and UA 1.7 million from country allocations). The UA 3.3 million multinational allocation will be shared equitably between the three countries. This financing represents 95.24% of the total cost and will cover 100% of the foreig

16 n exchange cost (UA 4.36 million) and 72
n exchange cost (UA 4.36 million) and 72% (UA 0.64 million) of the local currency cost. ADF financing will cover: (i) the entire expenditure on the study, technical assistance to the SCU and financial audit services; and (ii) part of the expenditure on study coordination and monitoring activities. It is worth noting that Tanzania is only eligible for the ADF loan, and Rwanda and Burundi for the ADF grant. 2.5.2 The three Governments will contribute UA 0.25 million to study financing, representing 4.76% of the total cost or 28% of the local currency cost. The contribution of the Governments will cover part of the expenditure on study coordination and monitoring. It will be shared as follows: (a) UA 0.083 million for Tanzania; (b) UA 0.084 million for Rwanda; and (c) UA 0.083 million for Burundi. This distribution is in keeping with ADF-XI provisions for multinational operations. Table 2.2 below shows the financing plan. The detailed financing plan is given as Annex 4. 2.6.3 Counterpart contribution each of the three countries will open a special local currency account bearing the study name in a commercial bank acceptable to the ADF, into which the counterpart contribution will be deposited. E

17 vidence of opening these three special l
vidence of opening these three special local currency accounts will be a loan and grant condition (Condition 7.2.2 Bi, 7.2.3 Bii and 7.2.4 Bi). These accounts will be replenished in accordance with the expenditure schedule. 3. STUDY ORGANIZATION AND MANAGEMENT 3.1 Executing Agency 3.1.1 The study will be implemented under the oversight of ministries in charge of transport in the three countries, namely Rwanda’s Ministry of Infrastructure (MININFRA), Tanzania’s Ministry of Infrastructure Development (MID) and Burundi’s Ministry of Transport, Post and Telecommunications (MTPT). However, for reasons of efficiency in steering the study, the three Governments have agreed that Rwanda will coordinate the study and that MININFRA will be the study executing agency. 3.1.2 For routine management and monitoring of study activities, the Study Coordination Unit (SCU) set up in Rwanda since 2004 under Phase I will manage and monitor the implementation of Phase II. The SCU will be placed under the supervision of the Planning, Policy and Capacity Building Unit (PPCBU) of MININFRA. The SCU will comprise a Coordinator assisted by a Deputy and an Accounts Manager, as well as support staff. It will ensure the tech

18 nical, administrative, accounting, finan
nical, administrative, accounting, financial and organizational management of the study. In addition, the SCU will regularly inform the EAC and the Central Transport Corridor Coordination Authority on progress of the study. The study organizational chart is shown as Annex 2. 3.1.3 Since 2004, the SCU has satisfactorily coordinated, managed and monitored Phase I of the study financed by the Bank. To strengthen its technical and operational capacity, the SCU will, under Phase II, receive technical assistance support which will collaborate with the Unit to provide technical monitoring for the study. The technical assistance summary Terms of Reference are given as Annex 7. Provision to ADF of proof of appointing the Coordinator, his Deputy and the Accounts Manager whose qualifications would have been deemed acceptable to the ADF beforehand, will be a loan and grant condition (Condition 7.2.3 Biii). 3.2 Management of the Study3.2.1 The Study Coordination Unit based in Rwanda will be responsible for administering and managing the study, in particular preparing procurement and contract documents, planning meetings of the Study Technical Monitoring Committee, seminars and workshops, and round table of

19 development partners and potential priv
development partners and potential private investors. It will also plan and prepare disbursement requests, assuming responsibility for the administrative and accounting management of the study. Concerning technical monitoring, the Study Technical Monitoring Committee (STMC), set up in 2004 under Phase I and chaired by Tanzania, will be charged with the technical monitoring of Phase II. The STMC will operate under the supervision of the Transport Department of Tanzania’s Ministry of Infrastructure Development (MID), while maintaining a functional relationship with Burundi’s MTPT and Rwanda’s MININFRA. It will work in close collaboration with the SCU. 10Table 3.1 Summary Provisional Study Implementation Schedule ACTIVITY ACTION/AGENCY END A – PRELIMINARY ACTIVITIES Grant/ Loan Approval ADF Nov - 2009 Nov - 2009 Signature of Grant Protocol o f Agreement/Loan Agreement Gov. (RW, TZ & BUR)/ADF Dec - 2009 May- 2010 Publication of General Procurement Notice ADF/Gov. (RW, TZ & BUR) Dec - 2009 Dec - 2009 Fulfilment of Conditions Precedent to Grant/Loan Effectiveness Gov. (RW, TZ & BUR) Dec - 2009 Aug - 2010 Fulfilment of Conditions Precedent to First Disbursement of G

20 rant/Loan Gov. (RW, TZ & BUR) Dec - 20
rant/Loan Gov. (RW, TZ & BUR) Dec - 2009 Aug - 2010 Procurement of Consultancy Services ADF/Gov. (RW, TZ & BUR) Jan - 2010 July - 2010 Procurement of Technical Assistance Services ADF/Gov (RW, TZ & BUR) April - 2010 Aug - 2010 Procurement of Financial Audit Services ADF/Gov. (RW, TZ & BUR) June - 2010 Dec - 2010 B- STUDY, TECHNICAL ASSISTANCE AND FINANCIAL AUDIT SERVICES B.1 STUDY SERVICES Study Start-up Consultant Sept - 2010 Sept - 2010 Study Inception Report Consultant Oct - 2010 Oct - 2010 Study Information Seminar Consultant/Gov. (RW, TZ & BUR) Nov - 2010 Nov - 2010 Quarterly Study Progress Reports Consultant Dec -2010 March June Sept 2011 First Results Presentation Seminar Consultant/Gov. (RW, TZ & BUR) May - 2011 May - 2011 Draft Study Reports Consultant Aug - 2011 Aug - 2011 Study Restitution Seminar Consultant/Gov. (RW, TZ & BUR) Sept - 2011 Sept - 2011 Study Validation Workshop by the Three Countries Consultant/Gov. (RW, TZ & BUR) Oct - 2011 Oct - 2011 No-Objection of Draft Study Reports ADF/Gov. (RW, TZ & BUR) Oct - 2011 Oct - 2011 Final Study Reports Consultant Nov - 2011 Nov - 2011 Round Table of Donors and P

21 rivate Investors Gov. (RW, TZ & BUR)/A
rivate Investors Gov. (RW, TZ & BUR)/ADF Nov - 2011 Nov - 2011 B.2 Technical Assistance Services Start-up of Technical Assistance Consultant Nov - 2010 Nov - 2010 Technical Assistance Inception Report Consultant Nov - 2010 Nov - 2010 Quarterly Technical Assistance Progress Reports Consultant Feb, May, Aug Nov - 2011 Draft Technical Assistance Report Consultant Nov - 2011 Nov - 2011 No-Objection of Draft Technical Assistance Report ADF/Gov. (RW, TZ & BUR) Dec – 2011 Dec – 2011 Final Technical Assistance Report Consultant Dec - 2011 Dec - 2011 B.3 Financial Audit Services First Financial Audit Consultant March 2011 March 2011 Final Financial Audit Consultant March 2012 March 2012 RW = Rwanda; TZ = Tanzania; BUR = Burundi; ADF = African Development Fund The Consultant will produce an inception report, quarterly progress reports and draft and final reports in English and French. The reports will be forwarded simultaneously to the ADF and the executing agency as per the proposed schedule. 125.3 Shinyanga and Kagera Regions in Tanzania, with a population of about 5 185 000, have vast reserves of nickel, gold and diamond which are not yet fully exp

22 loited. Mining activity is dominated by
loited. Mining activity is dominated by gold extraction, mainly in the Kahama district. Tanzania has nickel sulphide deposits estimated at about 36 million tons with 2.8% nickel content at the Kabanga site. The feasibility study for the exploitation of these mines is being carried out by the franchisee company (Kabanga Nickel). 5.4 Burundi has huge nickel deposits (sulphuric and lateritic), the most famous of which is the Musongati deposit with reserves estimated to be more than 185 million tons with a 1.6% nickel content, including 72 million tons of proven reserves. Multinational mining companies are interested in exploiting the mineral deposits (nickel, copper and cobalt). In addition, the Burundian sub-soil contains huge mineral reserves proven by various studies. In the North, there are many gold, cassiterite and colombo-tantalite deposits, and all over the country there are proven reserves of vanadium ore (about 10 million tons), and phosphates (about 17 million tons). Burundi also has industrial mineral ores such as carbonate rocks (about 2 million tons) used for making cement and raw materials (kaolin, quartzite and feldspar) used for producing ceramic ware. 5.5 The main expected socio-e

23 conomic benefits of the project are: (i)
conomic benefits of the project are: (i) a sharp drop in the cost of imported goods at national level. Transport costs account for about 40% of the cost of imported products in Rwanda and Burundi. The drop in the cost of imported goods will result in a reduction of the trade deficit, an increase in foreign exchange earnings and, ultimately, increased economic growth; (ii) a fall in the cost of exporting mine and agricultural products, and encouragement of private operators to promote and diversify exports; and (iii) promotion of productive activities (primary and secondary sectors), thanks to new means of transporting goods at the internal and international levels. 5.6 The interest shown in the railway line also stems from the comparative advantages of this mode of transport compared to the road. This includes bulky commodity transport capacity (mine, industrial, agricultural products), lower transport cost, greater security/safety of transporting goods, a longer life span of railway infrastructure (at least 30 years), an organized railway transport offer which facilitates programming of production in the area by economic actors. 5.7 The proposed study will enable the Governments of Tanzania, Rw

24 anda and Burundi to have instruments for
anda and Burundi to have instruments for making decisions on rational investment in the proposed railway infrastructure which will contribute to: (a) developing mining, industrial and agricultural activities in the area; and (b) opening up the countries internally and to the outside world and regional integration, by facilitating low-cost transportation of goods within the area. The study will also enable them to have a PPP model that will draw the involvement of the private sector and help mobilize financing for the project and managing railway infrastructure. 6. OBLIGATIONS OF THE CONSULTANTS AND THE GOVERNMENTS 6.1 Obligations of the Consultants The consultants will be solely responsible for delivering study, technical assistance and financial audit services. They will take all the necessary steps to ensure the delivery of services within the set time frames. They will draw up an accurate list of all the documents put at their disposal by the three governments or produced during the delivery of 147.2 Recommendations In light of the foregoing, it is recommended that: (i) the United Republic of Tanzania be granted an ADF loan not exceeding UA 1.66 million; (ii) the Republic of Rwanda be awa

25 rded an ADF grant not exceeding UA 1.67
rded an ADF grant not exceeding UA 1.67 million; and (iii) the Republic of Burundi be awarded an ADF grant not exceeding UA 1.67 million to finance the foreign exchange and local currency costs of the study, subject to the specific conditions hereunder. Legal Framework 7.2.1 Legal Instrument The legal framework for the project study will be a Loan Agreement between the United Republic of Tanzania and the Fund, a Grant Protocol of Agreement between the Republic of Rwanda and the Fund, and a Grant Protocol of Agreement between the Republic of Burundi and the Fund. 7.2.2 Conditions Associated with the Fund’s Involvement (United Republic of TanzaniaA. Conditions Precedent to Entry into Force of the Loan Agreement Entry into force of this Agreement shall be subject to the signing of the Agreement and fulfilment by the Borrower to the Fund’s satisfaction, of the conditions set forth in Section 12.01 of the General Conditions Applicable to African Development Bank Loan Agreements and Guarantee AgreementsB. Conditions precedent to First Disbursement of the Loan to Tanzania The Fund shall make the first disbursement of the loan resources only if, in addition to entry into force of the Loan Agreement,

26 the Borrower fulfils the following cond
the Borrower fulfils the following conditions to the satisfaction of the Fund: Provide to the ADF evidence of opening a special local currency account in the name of the study in a commercial bank deemed acceptable to the Fund, into which the counterpart contribution will be deposited (paragraph 2.6.3); and (ii) Provide to the ADF evidence of appointing members of the Study Technical Monitoring Committee comprising: one (1) Committee Chairperson; three (3) civil engineers, two (2) from Reli Assets Holding Company and one (1) from Tanzania Ports Authority; one (1) transport economist from the Ministry of Infrastructure Development; and one (1) environmentalist from the Vice-Presidency in charge of Environment. 7.2.3 Conditions Associated with the Fund’s Involvement (Republic of Rwanda) A. Condition Precedent to Entry into Force of the Grant Protocol of Agreement Entry into force of the Grant Protocol of Agreement shall be subject to its signature by the Republic of Rwanda (“the Donee”) and the ADF. MULTINATIONAL/TANZANIA–RWANDA-BURUNDI PHASE II DAR ES SALAAM-ISAKA-KIGALI/KEZA-MUSONGATI RAILWAY PROJECT STUDY THE PRESIDENT’S MEMORANDUM ANNEXES LIST OF ANNEXES Number of pages ANNEX 1: Map of

27 Study Railway Alignment 2 ANNEX 2:
Study Railway Alignment 2 ANNEX 2: Study Organization Chart 1 ANNEX 3: Detailed Estimated Study Cost 4 ANNEX 4: Financing Plan by Expenditure Category and by Country 1 ANNEX 5: Detailed Provisional Study Implementation Schedule 2 ANNEX 6: Contract Award Plan 1 ANNEX 7: Summary Terms of Reference for Provision of Technical Assistance Services to the Study Coordination Unit 1 ANNEX 8: Profiles of Experts of the Consultant in charge of the Study 1 ANNEX 9: Profiles of Key Staff of the Study Coordination Unit, the Study Technical Monitoring Committee and Counterparts 1 ANNEX 10: Map of Existing and Proposed Railway Network 2 ANNEX 11: List of Documents Consulted 1 ANNEX 2 STUDY ORGANIZATION CHART TANZANIA MINISTRY OF INFRASTRUCTURE DEVELOPMENT (MID) RWANDA MINISTRY OF INFRASTRUCTURE (MININFRA BURUNDI MINISTRY OF TRANSPORT, POST AND TELECOMMUNICATIONS (MTPT) DEPARTMENT OF TRANSPORT POLICY PLANNING AND CAPACITY BUILDING UNIT (PPCBU) GENERAL DIRECTORATE OF TRANSPORT STUDY COORDINATION UNIT STUDY TECHNICAL MONITORING COMMITTEE (STMC) ANNEX 3 Page 1 of 2 DETAILED ESTIMATED STUDY COST IN USD MILLION DESIGNATION FIELD QUANTITY HEAD OFFICE QUANTI

28 TY UNIT PRICE TOTAL PRICE % FOR.
TY UNIT PRICE TOTAL PRICE % FOR. EXCH. SHARE IN FOR. EXCH. SHARE IN LOC. CURR. FEES Project Director MM 0.3 1.7 27500 55000 100% 55000 0 Project Manager MM 16 0 25000 400000 100% 400000 0 PPP Design Expert MM 4 4 25000 200000 100% 200000 0 Railway Rolling Stock Specialist MM 1 2 25000 75000 100% 75000 0 Signal and Telecommunications Engineer MM 2 1 25000 75000 100% 75000 0 Bridge/Structural Engineer MM 6 3 25000 225000 100% 225000 0 Construction Engineer 3 3 25000 150000 100% 150000 0 Financial Analyst 1 1 20000 40000 100% 40000 0 Cross-cutting Issues Expert (gender, poverty, STDs/AIDS, etc) 3 1 20000 80000 100% 80000 0 Railway Operation Specialist 1 1 25000 50000 100% 50000 0 Hydrologist 2 2 25000 100000 100% 100000 0 Geological/Geotechnical Engineer 7 4 25000 275000 100% 275000 0 Transport Economist 3 1 20000 80000 100% 80000 0 Socio-economist 2 2 20000 80000 100% 80000 0 Railway Alignment Specialist 3 3 25000 150000 100% 150000 0 Environmentalist 3 1 20000 80000 100% 80000 0 Draftsmen MM 0 10 9000 90000 100% 90000 0 Sub-total 1.1 57.3 40.7 2205000 Support Staff Secretaries 15 0 1200 18000 0% 0 18000 Draftsmen 15 0 1500 22500 0% 0 22500 Clerks 15 0 750

29 11250 0% 0 11250 Driver/Messenger 15 0
11250 0% 0 11250 Driver/Messenger 15 0 900 13500 0% 0 13500 Sub-total 1.2 65250 Sub-total 1 117.3 2270250 FIELD SERVICES AND WORKS Geotechnical works FF 1 0 1725000 1725000 100% 1725000 0 Surveys FF 1 0 55000 55000 50% 27500 27500 Sub-total 2 1780000 PER DIEM, LOGISTICS AND TRAVEL (connected with the study) Per diem for experts/consultants in the three countries M-Days 1719 0 300 515700 100% 515700 0 Per diem for six counterparts at the head office of the consultant M-Days 180 0 300 54000 100% 54000 0 Round trip air tickets for experts/consultants Unit 23 0 10000 230000 100% 230000 0 Round trip air tickets for counterparts at the head office of the consultant Unit 6 0 6000 36000 100% 36000 0 Land transport for consultants in the three countries M- Days 1719 0 200 343800 60% 206280 137520 Computer hardware and office automation equipment FF 1 0 75000 75000 100% 75000 0 Reproduction and dispatch of documents FF 1 0 45000 45000 100% 45000 0 Office rental and operation Months 15 0 10000 150000 50% 75000 75000 Office furniture FF 1 0 12000 12000 0% 0 12000 Communication FF 1 0 10000 10000 50% 5000 5000 Sub-total 3 1471500 SEMINARS, WORKSHOPS AND ROUNDTABLES Infor

30 mation, restitution and validation semin
mation, restitution and validation seminars Unit 10 0 45000 450000 20% 90000 360000 Round table of donors and private investors Unit 1 0 90000 90000 20% 18000 72000 Sub-total 4 108000 STUDY COORDINATION AND MONITORING (Study Coordination Unit + Study Technical Monitoring Committee) Allowance for travel within the countries of origin M-days 1000 0 50 50000 0% 0 50000 SCU and STMC activities in the countries of origin FF 1 0 340000 340000 0% 0 340000 Per diem for SCU and STMC outside the countries of origin M-days 500 0 300 150000 100% 150000 0 Round trip air tickets for SCU, STMC, Technical Assistant outside the countries of origin Unit 0 100 1000 100000 100% 100000 0 Operation of SCU office Months 16 0 1000 16000 0% 0 16000 Land transport for SCU & STMC outside the countries of origin M-days 150 0 200 30000 100% 30000 0 SCU communication expenses FF 1 0 6000 6000 0% 0 6000 Sub-total 5 280000 FINANCIAL AUDIT OF STUDY Unit 2 0 25000 50000 100% 50000 0 Sub-total 6 50000 DETAILED ESTIMATED STUDY COST IN USD MILLION (cont’d and end) TECHNICAL ASSISTANCE TO THE STUDY COORDINATION UNIT Fees MM 14 0 25000 350000 100% 350000 0 Per diem M-Days 420 0 300 126000 100% 126000 0

31 Land transport in Rwanda M-Days 420 0
Land transport in Rwanda M-Days 420 0 200 84000 0% 0 84000 Round trip air tickets (country of origin - Rwanda) Unit 8 0 10000 80000 100% 80000 0 Operation and communication FF 1 0 13000 13000 50% 6500 6500 Sub-total 7 562500 BASE COST 7456750 Physical contingencies (PC) (5% of Base Cost) 372838 309999 62839 Price escalation [(4.06%) * (Base Cost +PC)] 317881 264305 53576 GRAND TOTAL 8147469 ANNEX 4 FINANCING PLAN BY EXPENDITURE CATEGORY AND BY COUNTRY (1) FINANCING PLAN BY EXPENDITURE CATEGORY IN TANZANIA Expenditure Category Total Study A D F BURUNDI Foreign Exchange Currency Total Foreign Exchange Local Local Currency (A) SERVICES 3.81 0.54 4.35 1.27 0.18 1.45 0.00 Study 3.42 0.483.901.14 0.161.30 0.00 Technical Assistance 0.36 0.06 0.42 0.12 0.02 0.14 0.00 Financial Audit 0.03 0.03 0.01 0.01 0.00 (B) MISCELLANEOUS 0.18 0.27 0.45 0.06 0.00 0.06 0.00 Study Coordination and Monitoring 0.18 0.27 0.45 0.06 0.01 0.07 0.075 Base Cost 3.99 0.81 4.80 1.33 0.18 1.51 0.075 Physical Contingencies 0.20 0.04 0.24 0.07 0.01 0.08 0.004 Price Escalation 0.17 0.04 0.21 0.06 0.01 0.07 0.003 Grand total net of taxes 4.

32 36 0.89 5.25 1.46 0.21 1.66 0.083
36 0.89 5.25 1.46 0.21 1.66 0.083 (2) FINANCING PLAN BY EXPENDITURE CATEGORY IN RWANDA Expenditure Category Total Study ADF BURUNDI Foreign Exchange Currency Total Foreign Exchange Local Local Currency (A) SERVICES 3.81 0.54 4.35 1.27 0.18 1.45 0.00 Study 3.42 0.48 3.90 1.14 0.16 1.30 0.00 Technical Assistance 0.36 0.06 0.42 0.12 0.02 0.14 0.00 Financial Audit 0.03 0.03 0.01 0.01 0.00 (B) MISCELLANEOUS 0.18 0.27 0.45 0.06 0.01 0.07 0.00 Study Coordination and Monitoring 0.18 0.27 0.45 0.06 0.01 0.07 0.076 Base Cost 3.99 0.81 4.80 1.33 0.19 1.52 0.076 Physical Contingencies 0.20 0.04 0.24 0.07 0.01 0.08 0.005 Price Escalation 0.17 0.04 0.21 0.06 0.01 0.07 0.003 Grand total net of taxes 4.36 0.89 5.25 1.46 0.21 1.67 0.084 (3) FINANCING PLAN BY EXPENDITURE CATEGORY IN BURUNDI Expenditure Category Total Study ADF BURUNDI Foreign Exchange Currency Total Foreign Exchange Local Local Currency (A) SERVICES 3.81 0.54 4.35 1.27 0.18 1.45 0.00 Study 3.42 0.48 3.90 1.14 0.16 1.30 0.00 Technical Assistance 0.36 0.06 0.42 0.12 0.02 0.14 0.00 Financial Audit 0.03 0.03 0.01 0.01 0.00 (B) MISCELLANEOUS 0.18 0.27 0.45 0.06 0.01 0.07 0.

33 00 Study Coordination and Monitoring 0.
00 Study Coordination and Monitoring 0.18 0.27 0.45 0.06 0.01 0.07 0.076 Base Cost 3.99 0.81 4.80 1.33 0.19 1.52 0.076 Physical Contingencies 0.20 0.040.240.070.010.08 0.004 Price Escalation 0.17 0.04 0.21 0.06 0.01 0.07 0.003 Grand total net of taxes 4.36 0.89 5.25 1.46 0.21 1.67 0.083 ANNEX 5 Page 2 of 2 PROVISIONAL STUDY IMPLEMENTATION SCHEDULE ID Task Name 1 A - PRELIMINARY ACTIVITIES 2 Loan/Grant Approval 3 Signature of Protocol Agreement / Loan Agreement 4 GPN Publication 5 Fulfilment of Conditions Precedent to the Entry in Force of Loan/Grant 6 Fulfilment of Conditions Precedent to First Disburcement 7 SL & RFP Document Preparation & Submission - Study 8 No-objection RFP + SL - Study 9 Consultation Launching & Bid Documents - Study 10 Bid Evaluation & No-Objection - Study 11 No-objection of the Draft Contract and Signature of the Contract - Study 12 SL & RFP Document Preparation & Submission - Technical Assistance 13 No-objection RFP + SL - Technical Assistance 14 Consultation Launching & Bid Documents - Technical Assistance 15 Bid Evaluation & No-Objection - Technical Assistance 16 No-objection of the Draft Contract and Signature of the Contract - Technical assistance 17

34 SL & RFP Document Preparation & Submiss
SL & RFP Document Preparation & Submission - Financial Audit 18 No-objection RFP + SL - Financial Audit 19 Consultation Launching & Bid Documents - Financial Audit 20 Bid Evaluation & No-Objection - Financial Audit 21 No-objection of the Draft Contract and Signature of the Contract - Financial Audit 22 B - STUDY, TECHNICAL ASSISTANCE, AND FINANCIAL AUDIT SERVICES 23 B.1 Study Services 24 Starting of the Study 25 Study Inception Report 26 Information Seminars 27 Quarterly Study Progress Report 28 Quarterly Study Progress Report 29 Quarterly Study Progress Report 30 Quarterly Study Progress Report 31 First Results Presentation Seminar 32 Study Draft Reports 33 Restitution Seminars 34 Validation Seminar by the Three Countries 35 No-Objection of the Study Draft Reports 36 Final Study Reports 37 Round Table of Development Partners and Private Sector 38 B.2 Technical Assistance Services 39 Starting of Technical Assistance 40 Technical Assistance Inception Report 41 Quarterly Technical Assistance Progress Report 42 Quarterly Technical Assistance Progress Report 43 Quarterly Technical Assistance Progress Report 44 Quarterly Technical Assistance Progress Report 45 Technical Assistance Draft Report 46

35 No-Objection of the Technical Assistance
No-Objection of the Technical Assistance Draft Report 47 Final Technical Assistance Report 48 B.3 Financial Audit Services 49 First Financial Audit 50 Final Financial Audit 11/17 12/15 Oct Nov Dec Jan Feb Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr 2010 2011 ANNEX 6 CONTRACT AWARD PLAN Activities Action/A enc rocurement Method Start End A – Preliminary Activities Grant/Loan Approval ADF N.A. Nov - 2009 Nov - 2009 Signature and Entry into Force of Protocol Grant/Loan Agreement Gov. (RW, TZ & BUR)/ADF Dec - 2009 May - 2010 Publication of General Procurement Notice ADF/Gov. (RW, TZ &BUR) Dec - 2009 Dec - 2009 Fulfilment of Conditions Precedent to the Entry into Force o f Grant/Loan Gov. (RW, TZ & BUR) Dec - 2009 August - 2010 Fulfilment of Conditions Precedent to the First Disbursement o f Grant/Loan Gov. (RW, TZ & BUR) Dec - 2009 August - 2010 Procurement of Consultancy Services ADF/Gov. (RW, TZ &BUR) Jan - 2010 July - 2010 Procurement of Technical Assistance Services ADF/Gov. (RW, TZ &BUR) Apr - 2010 August - 2010 Procurement of Financial Audit Services ADF/Gov. (RW, TZ &BUR) June - 2010

36 Dec - 2010 B – Study Services SL RF
Dec - 2010 B – Study Services SL RFP and SL Documents Preparation and submission - Study Gov. RW Jan - 2010 Feb - 2010 No-objection RFP + SL – Study ADF Mar - 2010 Mar - 2010 Bid Invitation + Submission of Bids - Study Gov. RW/Consultant Apr - 2010 May - 2010 Bid Appraisal & No-Objection - Study ADF/Gov. (RW, TZ & BUR) June - 2010 July - 2010 N o- objection Draft Contract and Contract Signature - Study ADF/Gov. RW August - 2010 August - 2010 Start Consultant Sept - 2010 Sept - 2010 Completion Consultant Nov - 2011 Nov - 2011 C – Technical Assistance Services SL RFP and SL Documents Preparation and Submission - Study Gov. RW Apr - 2010 May - 2010 No-objection RFP + SL – Study ADF June - 2010 June - 2010 Bid Invitation + Submission of Bids - Study Gov. RW/Consultant July - 2010 August - 2010 Bid Appraisal & No-Objection - Study ADF/Gov. (RW, TZ & BUR) Sept - 2010 Oct - 2010 N o- objection Draft Contract and Contract Signature - TA ADF/Gov. RW Nov - 2010 Nov - 2010 Starting of Technical Assistance Consultant Nov - 2010 Nov - 2010 Completion Consultant Dec - 2011 Dec - 2011 D – Financial Audit Services RFP and SL Documents Pr

37 eparation and Submission - Study Gov. R
eparation and Submission - Study Gov. RW June - 2010 July - 2010 No-objection RFP + SL - Study ADF August - 2010 August - 2010 Bid Invitation + Submission of Bids - Study Gov. RW/Consultant Sept - 2010 Oct - 2010 Bid Appraisal & No-Objection - Study ADF/ Gov. (RW, TZ & BUR) Nov - 2010 Dec - 2010 N o- objection Draft Contract and Contract Signature – Fin. Audit ADF/Gov. RW Jan - 2011 Jan - 2011 Starting of Financial Audit Consultant Mar 2011 Mar 2011 Completion Consultant Mar 2012 Mar 2012 RW: Rwanda TZ: TanzaniaBUR: BurundiADF: African Development FundSL: Short List ANNEX 8 PROFILES OF EXPERTS OF THE CONSULTANT IN CHARGE OF THE STUDY The Consultant in charge of the study will recruit a team of experts with solid qualifications and experience in their respective domains. As a guide, the key experts will be: Project Director; at the head office of the Consultant – at least fifteen (15) years’ experience in project management; Project Manager (civil engineer with at least ten (10) years’ experience in the design, planning and coordination of studies with skills in the railway domain. He will be in charge of coordinating the team of experts and the proper conduct of

38 the study; Railway Engineer: with at le
the study; Railway Engineer: with at least ten (10) years’ experience in railway design and engineering; Signal and Telecommunications Engineer: with at least five (5) years’ experience in the design of signal and telecommunications systems; Bridge/Structural Engineer: with at least ten (10) years’ experience in bridge and structural design; Civil Construction Engineer: with at least 10 (ten) years’ experience in civil construction design and engineering; Railway Operation Specialist: with at least five (5) years’ experience in railway operation; Hydraulic Engineer: with at least five (5) years’ experience in the domain; Geological/Geotechnical Engineer: with at least ten (10) years’ experience in the domain; Transport Economist: with at least five (5) years’ experience in transport project evaluation and in the railway sub-sector; Socio-economist: with at least five (5) years’ experience in the conduct of socio-economic surveys, community participation, socio-economic analysis of transport infrastructure projects in general and in the railway sub-sector in particular; Railway Alignment Specialist: with at least ten (10) years’ experience in the domain; Railway Equipment Specialist: with a

39 t least ten (10) years’ experience in th
t least ten (10) years’ experience in the domain; Environmental Expert: with at least five (5) years’ experience in infrastructure project environmental impact assessment; ANNEX 9 PROFILES OF KEY STAFF OF THE STUDY COORDINATION UNIT, STUDY TECHNICAL MONITORING COMMITTEE AND COUNTERPARTS (A) Profiles of the Staff of the Study Coordination Unit (SCU)The key staff of the SCU will comprise two civil engineers including one Study Coordinator and his Deputy and one Accounts Manager. Coordinator of Phase II of the study : civil engineer with at least seven design and engineering studies, especially railway infrastructure; Deputy Coordinator : civil engineer with at least five years’ experience in transport; Accounts Manager: project manager and accountant with at least five years’ experience in the domain. (B) Profile of Members of the Study Technical Monitoring Committee (STMC) The STMC will comprise civil engineers, economists, transport economist and environmentalists. The required profiles are summarized as follows: The civil engineers, economists and transport Economist will all be years’ experience in transport infrastructure; (ii) The environmentalists will be holders of a university de

40 gree in environmental assessment of pr
gree in environmental assessment of projects in general and development and infrastructure projects in particular. (C) Profile of Counterparts The counterparts will be civil Engineers and/or environmentalists and/or transport economists, and will have two to five years’ experience in their respective domains. The consulting firm in charge of the study will provide the assigned counterparts with training on railway design and engineering. ANNEX 10 EXISTING REGIONAL RAILWAY NETWORK LIN DISTANCE (km) 1 Kenya Railway Corporation (KRC) 1876 Uganda Railway Corporation (URC) 260 Tanzania Railway Limited (TRL) 3083 Tanzania Zambia Railways (TAZARA) 976 TOTAL 6195 PROPOSED REGIONAL RAILWAY NETWORK LIN DISTANCE (km) 1 Kasese – Kisangani 600 Gulu – Nimule – Juba 300 Pakwach – Bunia – Kisangani 900 Bihanga – Kabale – Kigali 300 Lamu – Garissa – Juba 1600 Garissa – Addis Ababa 1300 Liganga – Mchuchuma – Mtwara 800 Mchuchuma – Mbamba Bay 200 Liganga – Mlimba 250 10 Dar es Salaam – Mtwara 600 11 Kigali - Kabale - Bihanga 300 12 Tunduma – Sumbawanga – Mpanda – Kigoma 700 13 Uvinza – Bujumbura 300 14 Arusha – Musoma 500 15 Lamu – Kismayu 300 16 Garissa -