AFRICAN DEVELOPMENT BANK GROUP

MULTINATIONAL

OMVG ENERGY PROJECT- GAMBIA RIVER BASIN

DEVELOPMENT ORGANIZATION

ONEC DEPARTMENT

September 2015

Translated document

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TABLE OF CONTENTS

Currency Equivalents

Fiscal Year

Weights and Measures

Acronyms and Abbreviations

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

1.1 Project Linkage with Country Strategy and Objectives .............................................. 1

1.2 Rationale for Bank Involvement ................................................................................. 1

1.3 Aid Coordination ......................................................................................................... 2

II - PROJECT DESCRIPTION ............................................................................................ 3

2.1 Project components ...................................................................................................... 3

2.2 Technical Solutions Adopted and the Alternatives Explored ...................................... 3

2.3 Type of Project ............................................................................................................. 4

2.4 Project Cost and Financing Mechanisms…………………………………………….4

2.5 Project Area and Beneficiaries………………………………………………... …….6

2.6 Participatory Approach to Project Identification, Design and Implementation….…..6

2.7 Bank Group Experience and Lessons Reflected in Project Design…………………..7

2.8 Key Performance Indicators………………………………………………………….8

III. PROJECT FEASIBILITY ................................................................................................ 8

3.1 Economic and Financial Performance......................................................................... 8

3.2 Environmental and Social Impact ............................................................................... 9

IV - IMPLEMENTATION .................................................................................................... 11

4.1 Implementation Arrangements................................................................................... 11

4.2 Monitoring ................................................................................................................. 13

4.3 Governance................................................................................................................ 13

4.4 Sustainability ............................................................................................................. 14

4.5 Risk Management ...................................................................................................... 15

4.6 Knowledge Generation .............................................................................................. 15

V – LEGAL FRAMEWORK ................................................................................................ 16

5.1 Legal Instrument ........................................................................................................ 16

5.2 Conditions Associated with Fund Intervention .......................................................... 16

5.3 Conformity with Bank Policies .................................................................................. 17

VI – RECOMMENDATION ................................................................................................. 17

Annex I. Comparative Socio-economic Indicators

Annex II. Table of the Bank's Portfolio in the Countries

Annex III. Major Related Projects Financed by the Bank and Other Development Partners

of the Countries

Annex IV. Map of the Project Area

i

Currency Equivalents [December 2014]

UA 1 = USD 1.46424 $US = EUR 1.17374

UA 1 = XOF 769.92297 = GNF 10375.6723 = GMD 64.81

Fiscal Year 1st January – 31st December

Weights and Measures

m meter kgoe kilogramme of oil equivalent

cm centimetre = 0.01 metre ktoe ktoe = 1000 toe

mm millimetre = 0.001 metre kV kilovolt = 1,000 Volts

km kilometre = 1,000 metres kVA Kilovolt ampere (1,000 va)

m² square meter kW kiloWatt = 1,000 Watts

cm² square centimetre GW gigawatt (1,000,000 kw or 1,000 MW)

km² square kilometre = 1,000,000 m² MW Megawatt (1,000,000 W or 1,000 kW)

ha hectare = 10,000 square metres kWh Kilowatt-hour (1,000 Wh)

t (t) tonne (1,000 kg) MWh Megawatt-hour (1,000 KWh)

GWh Gigawatt-hour (1,000,000 KWh)

ii

Acronyms and Abbreviations

ADF African Development Fund

BD Bidding Documents

CE Consultant Engineer

CMC Coordination and Monitoring Committee

CO2 Carbon Dioxide

DEPI Directorate for Studies, Planning and Infrastructure

DNE National Directorate for Energy

DPD Detailed Preliminary Design

ECOWAS Economic Community of West African States

ERR Economic Rate of Return

ESIA Environmental and Social Impact Assessment

ESMP Environmental and Social Management Plan

EUR Euro

FIRR Financial Internal Rate of Return

GDP Gross Domestic Product

GHG Greenhouse Gas

HDI Human Development Index

HV High Voltage

ICB International Competitive Bidding

IDA International Development Agency

IEC Information, Education and Communication

IMF International Monetary Fund

IsDB Islamic Development Bank

IUCN International Union for the Conservation of Nature

KFAED Kuwait Fund for Arab Economic Development

LCMC Local Coordination and Monitoring Committee

LV Low Voltage

MDGs Millennium Development Goals

MV Medium Voltage

NCB National Competitive Bidding

NMC National Monitoring Committee

NPV Net Present Value

OMVG Gambia River Basin Development Organization

OMVS Senegal River Basin Development Organization

PAP People Affected by the Project

PRSP Poverty Reduction Strategy Paper

RBCSP Results-based Country Strategy Paper

RP Resettlement Plan

SL Short list

SME Small and Medium-sized Enterprises

SMI Small and Medium-sized Industries

SNE National Electricity Corporation

SOFRO Strategic and Operational Framework for Regional Operations

TO Turnover

TORs Terms of Reference

UA Unit of Account

UA million UA Million

WAPP West African Power Pool

iii

PROJECT BRIEF

BORROWERS : The Republics of The Gambia, Guinea, Guinea-

Bissau and Senegal

DONEES : The Republics of The Gambia, Guinea and

Guinea Bissau

EXECUTING AGENCY : OMVG

FINANCING PLAN

Source

Amounts in UA million

Instrument The

Gambia Guinea

Guinea

Bissau Senegal Total

ADF (PBA) 0.75 15.42 0.81 17 33.98 Loan

0.75 0 0.69 0 1.44 Grant

ADF (regional operations allocation) 2.25 30.83 3 25.5 61.58 Loan

0 0 0 0 0 Grant

Total GRANTS 0.75 0 0.69 0 1.44 Grant

Total LOANS 3.0 46.25 3.81 42.5 95.56 Loan

Bank Group Total 3.75 46.25 4.5 42.5 97.00

World Bank 28.89 18.44 47.95 22.66 121.48 Loan

EIB 0 55.17 0 15.49 70.66 Loan

KfW 3.94 0 0 17.84 21.78 Loan

AFD 0 0 0 34.08 34.08 Loan

IsDB 0 26.25 0 37.74 63.99 Loan

WADB 0 0 16.23 16.24 32.47 Loan

KFAED 16.35 0 0 0 16.35 Loan

Exim Bank of China 51.20 35.84 122.88 256.01 Loan

Republic of The Gambia 6.72 6.72 Capital Budget

Republic of Guinea 7.91 7.91 Capital Budget

Republic of Guinea-Bissau 6.10 6.10 Capital Budget

Republic of Senegal 14.43 14.43 Capital Budget

Total Cost per Country 105.73 205.22 110.63 327.41

TOTAL COST 748.99

iv

KEY INFORMATION ON BANK GROUP LOANS AND GRANTS

ADF loan to Senegal, Guinea, The

Gambia and Guinea-Bissau

ADF Grant to The Gambia and Guinea-

Bissau

Loan/Grant

currency Unit of Account (UA) Unit of Account (UA)

Interest type Not applicable Not applicable

Interest rate

margin Not applicable Not applicable

Service

commission

on ADF loan

0.75 % per year of the disbursed loan

amount not reimbursed N/A

Commitment

fee on ADF

loans

0.5 % of the loan amount not disbursed

120 days after signature of the Loan

Agreement

Not applicable

Loan maturity 40 years Not applicable

Grace period

and

reimbursement

of ADF loans

10 years (5 for Senegal) Not applicable

EIRR 21.56% ENPV EUR 1610 million

FRR 5.04% NPV EUR 329.28 million

Timeframe – Main Milestones (expected)

Approval of the concept note

October 2014

Negotiation of loan/grant agreements August 2015

Board presentation September 2015

Effectiveness December 2015

Closing date 31/12/2020

Completion report June 2021

v

Project Summary

1. General Overview of Project

The energy project targeting the four member states of the Gambia River Basin Development

Organization (OMVG), within the framework of their regional cooperation and integration, seeks to

promote the sharing of energy and improve electricity supply quality in The Gambia, Guinea,

Guinea-Bissau and Senegal, by providing renewable, clean and affordable energy. It comprises: (i)

the development of a 128 MW hydro-electricity dam with an annual output of 402 GWh; and (ii) an

interconnection network of 1,677 km, comprising 15 transformer stations and 2 dispatching centres.

The project, estimated to cost UA 748.99 million (net of taxes), will be executed over a five-year

period from 2015 to 2020.

The direct beneficiaries of the project are current customers of electricity companies, estimated at

approximately 1,300,000, who will receive more regular and affordable electricity. By increasing

electricity supply, the project will expand household access to more reliable energy, boost the

competitiveness of businesses in each of the countries, stimulate economic growth and create jobs,

thus contributing to poverty reduction. Through the interconnection network, it will also contribute

to the expansion of the power pool system, create a regional electricity market and reduce the

average cost of electricity generated in each of the OMVG member states. Furthermore, using hydro

power will substantially curb fossil fuel consumption and, consequently, greenhouse gas emissions.

2. Needs Assessment

The project seeks to help eliminate electricity sub-sector constraints in OMVG member states

namely: (i) the structural deficit in generation relative to demand; (ii) the high proportion of thermal

electricity which contributes to environmental degradation; (iii) the limited financial capacity of

national electricity companies; and (iv) the very limited size of the high voltage electricity

transmission network which impedes development of the sub-region's hydro-electricity potential.

Hydro-electricity generation will give the various countries access to renewable energy at affordable

costs. The project is consistent with the objectives of the West African Power Pool (WAPP) which

are to improve network reliability and electricity quality, while cutting costs.

3. Value-added of the Bank

The Bank's participation in the project will be the culmination of its efforts to support regional

integration and cooperation. Indeed, as regards the energy sector, the Bank has been providing

substantial assistance to OMVG since 2003, leading to the development of the current project. It

financed all the feasibility studies, DPD and the definition of the institutional plans. Furthermore, to

ensure the revival of the project, it financed in 2013 consultancy support to OMVG, which included

the updating of all initial studies to reflect recent technical, economic and institutional developments.

On account of this assistance, the Bank was designated as the lead donor of the project by the

OMVG Council of Ministers. Moreover, support to the energy project supplements the Bank's

financial support to the rural development sector.

4. Knowledge Management

Preparation and monitoring of project execution will require the Bank, designated by OMVG

Member States as the lead donor among technical and financial partners, to engage in regular

consultations with 8 donors, among whom it will play a major role to resolve concrete

implementation problems. The Bank will reflect the lessons from this experience in future similar

projects, including projects on the development of potential second generation sites.

vi

RESULTS-BASED LOGICAL FRAMEWORK

Country and Project Title: Multinational (The Gambia, Guinea, Guinea-Bissau, Senegal) – OMVG Energy Project

Project Goal: Facilitate power trade and improve electricity supply quality among OMVG countries through the supply of affordable electricity

RESULTS CHAIN

PERFORMANCE INDICATORS MEANS OF

VERIFICATION

RISKS/ MITIGATIVE MEASURES Indicator (including ISCs)

Baseline

Situation 2020 Target

IMP

AC

T

Contribute to the improvement of

living conditions for citizens of

OMVG Member States.

Electricity access rate:

Senegal

Guinea Guinea Bissau

The Gambia

60.6%

12%

19%

35%

75%

20%

65%

42%

Statistics from

ministries in

charge of the

economy in

OMVG countries

Statistics from

ministries in

charge of the

energy in OMVG

countries

OMVG

Secretariat reports

Risk: Limited financial capacity of

national electricity companies

Mitigative Measures:

- Streamlining of the management

of electricity companies;

- Sub-sector reform activities will

be implemented in parallel with

project execution;

- To stave off the risk of non-

payment of electricity rates, the

project will contribute to the

financing of O&M costs during the

first five years, through financing

aimed at building a financial

reserve to guarantee future

payments.

Risk: The limited experience and

resources of OMVG in the

EF

EC

TS

(1) Reinforcement of the capacity of

the power grid

(2) Power trade among OMVG

countries

(3) Reduction of average cost per

kWh

(4) Reduction of greenhouse gas

emissions in the project area

(5) Creation of jobs

(6)OMVG institutional capacity

building

(1)Additional installed capacity (MW)

(2) Quantity of power traded per/year

(GWh/year)

(3) Average generation cost (USD/kWh)

in Senegal, The Gambia, Guinea and

Guinea-Bissau

(4) Quantity of CO2 avoided (t/year)

(5) Number of permanent jobs created

(6) Number of temporary jobs created

0

0

31, 38, 19 and

50 respectively

-

128

686

27.9, 22, 13 and 28

respectively

520,000

290 (including 30

for women)

2,500 direct and

1,000 indirect

(including 350 for

women)

vii

OU

TC

OM

ES

(1) The Sambangalou hydro-

electricity power station is

constructed

(2) The interconnection loop is

constructed

(3) Dispatch centres are constructed

(4) HV/MV posts are constructed

(5) Institutional support to OMVG is

strengthened

(6) Project audit and progress reports

are prepared

(1) Hydro-electricity power station

constructed

(2) Dispatch centres constructed

(3) Number of km of 225 kV lines

constructed

(4) Number of HV/MV stations

constructed

(5) Number of experts put at the disposal

of OMVG

(6) Number of progress reports prepared

(7) Number of audit reports approved

0

0

0

0

0

0

0

1

2

1677 km

15

21

16

4

Project progress

reports

Project mid-term

review reports

Project

completion report

Audit reports

implementation of such large-scale

projects involving several TFPs.

Mitigative measure: There are

plans to delegate supervision to a

specialized structure tasked with

managing the PMU in order to

guarantee satisfactory execution of

all aspects of the project. This

structure will rely on a consultant

engineer responsible for controlling

and supervising works execution.

Risk: Risk of delay due to lack of

coordination stemming from the

multiplicity of donors (8 in

number).

Mitigative measure: The holding

of regular, monthly, donor

coordination meetings and joint

missions during project

preparation. Joint supervision

missions will be organized during

project implementation.

KE

Y A

CT

IVIT

IES

COMPONENTS RESOURCES

Component 1: Construction and development of the Sambangalou hydro-electric power plant

Component 2: Construction (i) of a 1677 km loop and 225 kV high voltage line antennae; (ii) 15 stations; and (iii) 2 load dispatch

centres.

Component 3: Project management: Works Control and Supervision, Environmental and Social Impact Management, Project Audit,

Functioning of the PMU

Component 4: Institutional support: supervisory assistance, capacity-building, equipment of the PMU, O&M support, E&S panel of

experts, fibre optics assistance, area electrification studies

Component 1: UA 256.01 million

Component 2: UA 386.78 million

Component 3: UA 66.69 million

Component 4: UA 39.51 million

Financing sources: UA 748.99 million

ADF loans and grants: UA 97.00 million

Other TFPs: UA 616.82 million

States: UA 35.17 million

viii

1 2 3 4 5 6 7 8 9 10 11 12 1 2 3 4 5 6 7 8 9 10 11 12 1 2 3 4 5 6 7 8 9 10 11 12 1 2 3 4 5 6 7 8 9 10 11 12 1 2 3 4 5 6 7 8 9 10 11 12

C.2 Mobilization and construction worksMobilization and Construction Works

F.1 Prequalification Process for the Different Packages

G.2 Bidding Process

C.1 Compensation of PAPs

D. Project Management

D.1 Selection of the MO Technical Assistant

D.2 Selection of the Consultant Engineer

D.3 Establishment of the PMU

IMPLEMENTATION SCHEDULE OF THE OMVG POWER PROJECT

C. Construction of the Sambangalou Hydro-electric Power Plant

G.3 Construction Works

F. Project Supervision

A. Approval and Effectiveness

A.1 Board Approval

A.2 Signature of Loan Agreement

A.3 Effectiveness

D.4 Establishment of the CCS, CNS and CLCS

E. Interconnection Network

20192016 2017 2018

B. Lifting of Conditions Precedent

2015

Description

1

REPORT AND RECOMMENDATIONS OF MANAGEMENT TO THE BOARD OF

DIRECTORS CONCERNING FINANCING OF THE OMVG ENERGY PROJECT

Management hereby submits this report and recommendations concerning the proposal of (i) ADF

grants of UA 0.75 million and UA 0.69 million to the Republic of The Gambia and the Republic of

Guinea- Bissau, respectively; and (ii) ADF loans of UA 3 million, UA 46.25 million, UA 3.81 million

and UA 42.5 million to the Republic of The Gambia, the Republic of Guinea, the Republic of Guinea-

Bissau, and the Republic of Senegal, respectively, to finance the OMVG Energy Project.

I. STRATEGIC THRUST AND RATIONALE

1.1 Project Linkage with Country Strategy and Objectives

1.1.1 The project has linkages with the development strategies of OMVG Member States, contained

in: (i) Pillar I of the AfDB/World Bank Joint Strategy Paper II (2012-2015) for The Gambia; (ii)

strategic Pillar II of the 2012-2016 PRSP for Guinea; (iii) Pillar III of the Strategic and Operations Plan

(2015 – 2025) for Guinea Bissau and (iv) and strategic Pillar 1 of the 2010-2015 PSRP-III for Senegal.

At the regional level, the project is consistent with the energy development strategy of the Economic

Community of West African States (ECOWAS) through the West African Power Pool (WAPP), a

mechanism created in 2006 to pool resources for the integration of national power grids, with a view to

creating a unified power market. The WAPP Infrastructure Programme which includes this project, is

based on the results of the ECOWAS Master Plan for the Generation and Transmission of Electrical

Energy, whose updated version was approved by the ECOWAS Conference of Heads of State in

February 2012.

1.1.2 For the Bank, the project falls within the framework of: (i) Pillar I of the 2012-2015 Joint

Assistance Strategy (JAS) for The Gambia; (ii) Pillar 2 of the 2012-2016 RBCSP for Guinea on the

basic infrastructure development; (iii) Pillar 2 of the 2014-2018 CSP for Guinea-Bissau on

infrastructure development which promotes inclusive growth; (iv) Pillar I on "Support for Inclusive

Growth through Diversification and Economic Integration" through the 2010-2015 CSP for Senegal;

and (v) the Bank's 2011-2015 Regional Integration Strategy Paper (RISP) for West Africa whose Pillar

I relates to the connection of regional markets by supporting investments in regional infrastructure,

including electricity generation and transmission. It is also consistent with the 2014-2023 Regional

Integration Strategy whose Pillar I focuses on supporting regional infrastructure development,

including large-scale hydro-electricity projects and interconnections.

1.2 Rationale for Bank Involvement

1.2.1 The project will eliminate electricity sub-sector constraints in OMVG member states which

are: (i) low electricity access rate (12% in Guinea and 19% in Guinea-Bissau in 2014; 35% and 57% in

The Gambia and in Senegal in 2013 respectively); (ii) the structural deficit in power generation relative

to electricity demand which grows at an average annual rate of 6 to 8%; (iii) the high proportion of

thermal electricity (100% in The Gambia and Guinea Bissau, 90% in Senegal and 45% in Guinea),

which does not only contribute substantially to raising the cost of electricity generated but also to

harming the environment; and (iv) and the low financial and institutional capacities of national

electricity companies. The project will help to establish the backbone infrastructure for the regional

electricity industry and a major regional electricity market through the progressive integration of

isolated national grids into a unified interconnection system. This infrastructure will reduce the cost

borne by networks for evacuating power from other potential hydro-electricity sites which will be

subsequently developed. The OMVG network is an essential interconnection link within the WAPP

system, which comprises the existing OMVS network co-financed by the Bank, and the CLSG

interconnection network, which is being developed with Bank co-financing as well.

2

1.2.2 The project’s strategic alignment on continental and regional objectives, including its close

association with the development and establishment of WAPP (which is an element of the NEPAD

short-term action plan), its scope as well as its alignment with the strategic guidelines of the Bank, all

place it in a favourable and natural position to benefit from resources earmarked for regional

operations. Lastly, the Bank's participation in the project will be the culmination of its efforts to

support regional integration and energy cooperation within OMVG. Indeed, since 2003, the Bank has

provided substantial assistance to OMVG in the conduct of feasibility studies, DPD and definition of

the institutional plan which all led to the formulation of this project. As a result, it was designated as

the lead donor of the project by a resolution of the OMVG Council of Ministers. The reports used for

joint appraisal of the project are the fruit of consultancy support approved in 2013 through NEPAD-

IPPF, which led to an update of the technical, economic, institutional, environmental and social aspects

of the project to reflect major developments that occurred in recent years. Hence, a group of consultants

produced reports updating the technical, economic, financial and institutional studies. It also prepared

the various draft power purchase, transmission and lease contracts that will be used in negotiations

between various project stakeholders. Furthermore, a second group of consultants produced reports

updating the different environmental and social protection documents, with recommendations on

gender-promotion activities to be implemented during project execution.

1.2.3 The Bank's intervention is justified by the project's alignment with the objectives of the Bank's

2013-2022 Long-term Strategy, whose two strategic goals are inclusive growth and transition to green

growth. Indeed it includes connection of the networks of localities situated near the integrated power

plants into the sub-regional power grids, thus giving access to clean and affordable energy to the

communities concerned. It is in line with the operational priorities of the Bank's long-term strategy on

regional integration infrastructure. Besides, another justification for the Bank's intervention is the

project's conformity with its energy sector policy of August 2012, which seeks to support regional

member countries in their efforts to improve access to modern, reliable and affordable energy services.

At the regional level, it is important to note that one of the components of the project (development of

the Sambangalou hydro-electric power station) is an integral part of the PIDA priority action plan.

1.3 Aid Coordination

1.3.1 Annex 3 and Section A3 of the technical annexes list the financial partners and their respective

financing allocations to OMVG Member States. Assistance to OMVG is provided at the regional level

by the Executive Secretariat and the OMVG Council of Ministers which meets twice a year in ordinary

sessions. At the national level, Ministers of Finance arbitrate between country allocations and

multinational allocations in keeping with the priorities defined in the PRSPs. The Bank is the lead

donor and, as such, plays a key role in coordinating co-financiers, given the high number of partners. It

supported OMVG in the organization of two donors roundtables in Dakar (19 and 20 April 2007) and

Conakry (30 and 31 January 2008) to present the results of feasibility studies and raise funding for the

project.

1.3.2 Furthermore, from September 2011 to February 2014 the Bank attended many coordination

meetings of the project's technical and financial partners as well as OMVG Council of Ministers

meetings. It also joined forces with the OMVG Executive Secretariat to organize and coordinate the

joint preparation (pre-appraisal) mission in July 2014 and the joint appraisal mission of December

2014. These missions brought together the main development partners present in OMVG Member

States and involved in the financing of the project, particularly, the World Bank, European Union (EU),

European Investment Bank (EIB), Islamic Development Bank (IsDB), French Development Agency

(AFD), German Development Bank (KfW), Japanese International Cooperation Agency (JICA),

Kuwait Fund for Arab Economic Development (KFAED) and the West African Development Bank

3

(WADB). Since October 2013, virtual coordination meetings have been organized by the Bank with

the objective of holding them every month. In a bid to reinforce such coordination and ensure smooth

project implementation, the principle of joint supervision missions was adopted for the execution phase

which involves the largest number of co-financiers.

II. PROJECT DESCRIPTION

2.1 Project Components

2.1.1 The project entails the development of the Sambangalou hydro-electricity dam with an

installed capacity of 128 MW and the construction of an interconnection network for the evacuation of

energy, comprising 1,677 km of 225 kV lines, 15 high voltage /medium voltage transformer stations,

and 2 load dispatch centres. The project comprises four components presented in detail in the table

below.

Table 2.1

Project Components (amounts in UA million)

No. Name of Components Cost

Estimate Description of Components

A

Electricity Generation

Infrastructure1

256.01

Construction of the Sambangalou hydro-electricity power

station (128 MW, 402 GWh/year) in Senegal on the River

Gambia.

B

Interconnection

Infrastructure

386.78

Construction (i) of a 1677 km loop and 225 kV line antennae to

interconnect the four countries; (ii) fifteen transformer stations

for injecting power into national electricity grids; and (iii) two

dispatch centres for managing energy movements.

C Project Management 66.69.

Works control and supervision

Management of the main environmental and social impacts

Project audit

Functioning of PMU

D Institutional Support 39.51.

Supervision assistance

Capacity-building

PMU equipment

O&M support, E&S panel of experts

Technical assistance on optical fibres

Feasibility study on the hydro-electricity potential of Digan

Electrification studies for rural areas

Total Project Cost 748.99

2.2 Technical Solutions Adopted and the Alternatives Explored

The construction of a high voltage interconnection network fed by a hydro-electricity power station

was adopted to supply power to OMVG Member States. It should be noted that the hydro-electricity

power plant in Kaleta, Guinea, which was initially an integral part of the project, is nearing completion

and has been partially operational since 28/05/2015 with the commissioning of 2 of the three projected

generators. Guinea agreed to cede 30% of Kaleta's electricity output (283.8 GWh) to the other 3

OMVG Member States. The alignment of the transmission line corridor makes it possible to supply

power to the various countries while facilitating their connection to other electricity grids of the sub-

1 The Kaleta hydro-electricity power station (240 MW, 946 GWh/year), which was initially and integral part of the project, has been partially

operational since 28/05/2015 following the decision taken in 2011 by Guinea to construct it on own resources. The States agreed on the distribution of

30% of the potential energy output from Kaléta which Guinea agreed to cede to The Gambia, Guinea Bissau and Senegal (6%, 4% and 20%,

respectively).

4

region (CLSG) planned under WAPP or already existing (OMVS network). The operational voltage of

the transmission line (225 kV) was chosen, taking into account the electricity transmission needs of

West African countries. Construction of the Sambangalou power plant will increase the supply of clean

electricity at competitive prices.

Table 2.2

Alternative Solutions Considered and Reasons for Rejection

Alternative solution Brief Description Reason for Rejection

Continue with the

development of national

systems

Each country will continue to use

own resources to deal with rising

demand by relying essentially on

thermal sources.

The highest average cost per kWh

Less regular supply

More pollution since electricity will be

generated mainly with petroleum products.

Indeed, only Guinea has substantial hydro-

electricity resources.

Construct the

interconnection network of

the four countries without

generating additional

hydro-electricity

Construct only the

interconnection lines and stations

Limited power generation within the

OMVG area which will not facilitate power

trade

Pollution due to increased recourse to

thermal generation

The highest average cost per kWh

2.3 Type of Project

The instrument proposed to support the OMVG Energy Project is an investment operation in the form

of a loan and grants to OMVG Member States for the development of the Gambia River basin.

Financing will be granted to the Member States in accordance with the ADF XIII credit policy and the

strategic framework for regional operations.

2.4. Project Cost and Financing Mechanisms

2.4.1 The total project cost, net of taxes and customs duties, is evaluated at UA 748.99 million. This

cost includes a 5% provision for physical and technical contingencies and a further 5% provision for

price escalation, and will be financed up to 13% by the Bank. Project costs by component, financing

source and expenditure category are presented in Tables 2.3, 2.4 and 2.5 below:

Table 2.3

Estimated Costs by Component

Amount (in UA million) % Foreign

exchange Components F.E. Local

currency Total

Electricity Generation Infrastructure 230.41 25.60 256.01 90%

Interconnection Infrastructure 270.75 116.03 386.78 70%

Project Management 33.34 33.34 66.69 50%

Institutional Support 24.14 15.37 39.51 61%

Total Project Cost 558.64 190.35 748.99 75%

The project is co-financed by the World Bank (WB), IsDB, KFAED, EIB, AFD, KfW, WADB, ADF,

Exim Bank China and the Governments of the four OMVG Member States. Following a joint appraisal

mission of the project, the IsDB and WB approved the project in March and April 2015, respectively.

5

The other donors intend to submit it to their respective Boards before the end of 2015. The resources of

the Fund are grants and loans awarded under the conditions indicated in the project brief on Page vi,

which were negotiated and accepted by the four governments (the exchange rates adopted are those

presented on Page iv).

2.4.2 The project cost by expenditure category is presented as follows:

Table 2.5

Project Costs by Expenditure Category

Expenditure Categories

Amount (in UA million) % Foreign

Exchange F.E. Local

Currency Total

Works 501.16 141.64 642.79 78%

Goods 0.63 0.63 1.25 50%

Services 21.43 21.43 42.87 50%

Operation and Miscellaneous Aspects 35.43 26.66 62.08 57%

Total Project Cost 558.64 190.35 748.99 75%

2.4.3 The expenditure schedule per project component is as follows:

Table 2.6

Expenditure schedule by Component

Components Amount (in UA million)

2,015 2,016 2,017 2,018 2,019 2020 Total

Electricity Generation Infrastructure - 64.00 76.80 89.60 25.60 12.80 256.01

Interconnection Infrastructure 77.36 116.03 116.03 77.36 - 386.78

Project Management 6.67 20.01 20.01 13.34 6.67 5.01 66.69

Institutional Support 3.95 11.85 11.85 11.85 - 39.51

TOTAL 87.98 211.90 224.70 192.15 32.27 17.81 748.99

% Total 11.7% 28.3% 30.0% 25.7% 4.3% 2.4 100.0%

2.4.4 ADF resources will be used to fully finance the two load dispatch centres and partially finance

the components on lines, institutional support and project management. These resources are broken

down by expenditure category as follows:

Table 2.7

ADF Resources by Expenditure Category

Expenditure Categories

Amount (in UA million) % Foreign

Exchange F.E. Local

Currency Total

Works 39.36 16.87 56.23 70%

Goods 0.63 0.63 1.25 50%

Services 15.03 15.03 30.07 50%

Functioning 4.73 4.73 9.46 50%

Total 59.75 37.25 97.00 62%

6

2.5. Project Area and Beneficiaries

2.5.1 The Sambangalou hydro-electricity plant, with a reservoir of 181 square kilometres and a

reservoir storage capacity of 3,794 million cubic metres, of which close to 50% is used, will span

Senegal (20%) and Guinea (80%). In Senegal, the plant is situated on the River Gambia, a few

kilometres north of the border with Guinea and 18 km south of Kedougou. The reservoir and the

project area are located in the Kedougou District which has an estimated population of 78,806

inhabitants. In Guinea, the plant area lies exclusively in the Prefecture of Mali which has a population

of 211,130 inhabitants.

2.5.2 The interconnection line, which is 1,677 km long, cuts across the 4 (four) OMVG countries.

Interconnection will make it possible to supply the four countries with energy generated from the

power plants of Sambangalou and Kaleta and other power plants in the OMVG/ECOWAS area. The

population living within the interconnection study area is estimated at 3,347,303 inhabitants, in Guinea

(1,850,078), Senegal (989,187), The Gambia (308,906) and Guinea-Bissau (199,132). Most of the

population affected by the project lives in rural areas and are engaged in farming, stockbreeding and

handicrafts.

2.5.3 The project benefits the different communities, especially those living within its area of direct

impact described above, as well as the various economic sectors of the countries concerned. It has a

considerable positive impact on the activities of the communities located within its area of impact,

mainly through new job opportunities and an improvement in the quality of electricity supply. The

direct beneficiaries of the project are current customers of electricity companies, estimated at

approximately 1,300,000, who will have access to more regular and affordable electricity.

2.6. Participatory Approach to Project Identification, Design and Implementation

2.6.1 The communities was consulted during feasibility studies for the Sambangalou hydro-

electricity power plant conducted in 2002, throughout the environmental and social impact assessments

of November 2005 to February 2006, and during updating of the environmental documentation in

August 2014. In addition to the above, other consultations were conducted from December 2014 to

February 2015, which also targeted communities in the host villages. The expectations of the project

area communities focus essentially on poverty reduction through: access to electricity; employment

opportunities on the project site; the creation of roads and access to the area; the construction of local

full-cycle primary schools to enable children study more conveniently; the construction and equipment

of health posts to facilitate access to healthcare; the construction of boreholes to supply drinking water;

and the development of fishing and new income-generating activities. Their concerns relate essentially

to: loss of farmland, homes and socio-economic infrastructure; fears about the compensation and

resettlement process, especially for communities that relocated earlier and now realize that the project

is delayed; access to drinking water in the resettlement areas; and impact on the environment.

2.6.2 The consultations also helped to define the compensation and indemnification options

preferred by the communities and to clarify their choice of resettlement sites. The main options

discussed focused on: (i) compensation arrangements; (ii) type of building; (iii) the organisation of

villages within the area; (iv) resettlement sites; and (v) compensation for sacred sites.

2.6.3 The measures adopted to ensure community involvement during the operational phase are set

out in the table below:

7

ACTIONS IMPLEMENTATION

PERIOD

SCOPE

Announcement through the national media and local audio-

visual media that the environmental and social

documentation has been uploaded to the internet

March 2015 National / regional / local

Uploading of the provisional environmental and social

documentation to the website of the African Development

Bank.

March 2015 International / national /

regional / local

Establishment of information points at the NMC May 2015 Local

Dissemination of paper copies of the environmental and

social documentation within the NMC

May 2015 National / regional / local

Upgrading of the E&S documentation based on the

individual public surveys conducted among populations

affected by the project (PAP)

June 2015 International / national /

regional / local

Announcement in the national media and local audio-visual

media of the commencement of the community

compensation and displacement process

June 2015 National / regional / local

Systematic verification of PAP prior to payment of

compensation

June - August 2015 Local

Local radio/television programmes reporting on the

commencement of works and access to jobs created by the

project.

June 2015 National / regional / local

National dissemination and online posting of monitoring

reports of the E&S panel of experts tasked with monitoring

the construction of the dam and the line.

2015, 2016, 2017, 2018 International / national /

regional / local

Periodic informed consultation of the communities on the

implementation of E&S measures for RPs and the ESMP

2015, 2016, 2017, 2018 Regional / local

2.6.4 The consultations will continue after the communities have been displaced, in order to ensure

that resettlement is conducted under satisfactory conditions and that accompanying measures

effectively lead to the improvement of living conditions. The arrangements made to ensure such

monitoring include (i) the conduct of socio-economic surveys; and (ii) communication actions targeting

the local community. These actions will be supplemented by the establishment of a complaint-

management mechanism and monitoring of the socio-economic situation in the project area.

2.6.5 During the conduct of ESIA for the interconnection line, public consultations were carried out

by a group of consultants. Measures similar to those adopted for the Sambangalou power plant will be

taken during conduct of the interconnection line study. The World Bank, which is co-financing only

the interconnection line, published the environmental and social documentation on its website in 2014.

2.7. Bank Group Experience and Lessons Reflected in Project Design

2.7.1 The OMVG energy project was designed based specifically on the OMVS (Senegal River Basin

Development Organization) multinational Energy Project co-financed by the Bank. The project design

incorporates lessons learnt from the preparation of the TORs of the DPD/BD studies right up to

definition of the institutional framework as well as the organizational framework for its overall

implementation. Additional studies financed by the Bank led to the design of an adapted institutional

framework that reflects lessons learnt from difficulties encountered by SOGEM with the operator

ESKOM, especially regarding maintenance of the Manantali power plant facilities. Indeed, SOGEM

has not succeeded in setting up the maintenance and renewal fund that is supposed to facilitate

implementation of these actions, thereby delaying repairs and maintenance at the Manantali power

plant, which is currently in a critical situation after an unfruitful process to select a new operator

following the departure of ESKOM.

8

2.7.2 According to the institutional plan adopted, the States remain co-owners of the joint facilities

but delegate key functions to OMVG and the Facility Management Agency (to be created).

Furthermore, OMVG and the Agency, in turn, delegate their responsibilities to private partners during

the construction and operational phases. Under this plan, a lease contract will be signed for the

management of the Sambangalou power station, while a private partner will be recruited for the

operation and maintenance of the interconnection line (O&M contract). Besides, the project will

contribute to the financing of O&M costs during the first five years through financing arrangements

aimed at building a financial reserve to guarantee future payments.

2.7.3 Project design also takes into account the problems and lessons learned from other hydro-

electricity and interconnection projects (especially Bujagali /Uganda and Garafiri/Guinea), as concerns

the environmental aspects, management of joint facilities and the award and monitoring of contracts for

the construction of complex facilities. A detailed analysis of the lessons learnt from the OMVS project

features in Technical Annex B1.

2.8. Key Performance Indicators

It should be noted that the four States have agreed on the distribution of the power to be generated from

Sambangalou as follows: 14% for Guinea-Bissau, 18% for The Gambia, 20% for Guinea, and 48% for

Senegal. Project performance will be measured through the performance indicators detailed in the

results-based logical framework. The main performance indicators of the project are: (i) the quantity of

power traded through the interconnection network; (ii) reduction of the average cost per kWh; (iii) the

quantity of greenhouse gases avoided per year; and (iv) the number of direct and indirect jobs created.

The expected project outputs in 2020 are: (i) the construction of the Sambangalou hydro-electricity

power plant; (ii) the construction of a 225 kV electricity transmission line; (iii) the construction of two

load dispatch centres and; (iv) the construction of 15 new 225 kV stations.

III. PROJECT FEASIBILITY

3.1. Economic and Financial Performance

Table 3.1

Key Economic and Financial Data of the Project

Baseline Scenario EIRR: 21.56 % ENPV: EUR 1,610 million

FRR: 5.04 % FNPV: EUR 329.28 million

NB: The detailed calculations are found in Annex B7

3.1.1 Economic Performance of the Project: The economic performance of the project was

analysed based on the economic internal rate of return (EIRR) generated from a comparison of updated

costs (investment and operation of the power grids) within the OMVG area during the appraisal period

in two situations: "no project" situation, corresponding to the autonomous operation of the 4 electricity

systems, and the "project" situation of OMVG (interconnection plus development of the Sambangalou

power plant). This comparative analysis showed that the OMVG Energy Project generates a substantial

economic rate of return compared to the "no project" situation and therefore constitutes the least costly

option.

3.1.2 Financial Performance of the Project: Financial analysis confirms that with sufficient rates,

the Facility Management Agency of the OMVG will be financially viable and capable of defraying the

operational costs, making provisions for asset renewal and honouring its debt servicing obligations.

Based on these assumptions, the project has a financial internal rate of return (FIRR) of 5.04%, which

exceeds the cost of capital of 1.67% as well as a financial net present value (FNPV) of EUR 329.28

million. The debt servicing ratio remains positive during the operational period standing between 1.35

and 1.49.

9

3.1.3 Sensitivity of Project Performance: It was analysed based on: (i) a 20% decline in energy

generated by the Kaleta and Sambangalou power plants; (ii) a decline in the price of fuel; (iii) a 20%

increase in investment costs; and (iv) a 2-year delay in project execution. This analysis shows that the

project's economic rate of return, though sensitive to changes in the various factors, remains higher

than the updated rates, thus confirming the project's economic viability. It is more sensitive to a decline

in fuel prices and a delay in implementation is more favourable to it. Sensitivity studies also showed

that the project's economic rate of return was good even under pessimistic assumptions.

3.2. Environmental and Social Impact

Environment

3.2.1 The project is classified in Category 1 of the environmental and social plan. Hence, its

formulation included a complete environmental and social impact assessment (ESIA), an environmental

and social management plan (ESMP), and a resettlement action plan (RAP) for persons affected by the

project. A summary of the ESMP was published on the Bank's website on 28 May 2015.

3.2.2 The most significant negative impact expected from construction of the dam relates to: (i) the loss

of soils, vegetation and wildlife habitats (creation of a reservoir of 181 km²); (ii) modification of the water

balance upstream of the dam; (iii) clearing of a 40-metre strip in certain areas of classified forests for the

construction of the interconnection line; (iv) advancement of the salinity front during the dry season within

the Gambian reach; and (v) deterioration of the wetlands in the Senegalese and Gambian reaches.

Operation and electricity generation will modify the hydrological regime by: (i) reducing the flood levels

and maintaining dry-weather flow during the dry season; and (ii) modifying the quality of water (anoxia).

Maintenance work on access roads and areas around the pylons may: (i) contaminate the environment

through the use of herbicides or the burning of ligneous waste emanating from periodic clearing; and (ii)

disrupt and destroy habitats and wildlife because of the opening of many more access routes.

3.2.3 During the construction and operation period the positive impacts of the project will include: (i)

the receding of the salinity front favourable to agriculture but unfavourable for mangroves; (ii) the creation

of many direct jobs and economic opportunities such as sub-contracting in each of the four countries; (iii)

recuperation of ligneous resources by the population; (iv) the development of access roads (dam and line);

and (v) rehabilitation of the Kedougou bridge. During operation, the reservoir and the regularization of

water flow will generate: (i) an improvement in the quality of water in the afterbay during the dry season;

(ii) the development of conditions favourable to certain aquatic bird species; and (iii) increased habitat

capacity for aquatic fauna.

3.2.4 Mitigation of the negative effects during the construction phase will depend essentially on the

organization of works relating to the equipment of workers' camps as recommended in the terms of

reference for the companies (dam and line). Organizational responsibilities will be incumbent upon the

Project Management Unit (PMU) at the regional level, the national monitoring committees (NMC) and

the local coordination and monitoring committees (NMC). These structures will be supported by three

stakeholders playing an advisory role and who will interact primarily with the OMVG Executive

Secretariat. The ESMP will be regularly monitored to ensure that any negative effects are mitigated.

The objectives to be attained underscore the need for prevention and intervention plans during project

implementation. They take into account the prevailing situation and its interaction with project activities.

The ESMP will be updated in cases where certain unidentified impacts were either ignored or under-

estimated. Its total budget, net of taxes, is EUR 44,613,500, representing 3.8% of the total project budget.

10

3.2.5 The Ministries in charge of the environment in the 4 countries will be involved in the

implementation phase to ensure the application of environmental provisions. Compliance with applicable

standards governing emissions, safety at work, storage or destruction of dangerous products, and the

operation of networks will facilitate the management of these negative effects. It should be underscored

that the four countries have ratified several international conventions on the environment.

Climate Change

3.2.6 The project was classified under climate change Category 1 on 17 May 2015 mainly because of

the risks of erosion and extreme floods. To mitigate the risk of increased erosion and extreme floods in the

project area, the project has made provision for the following measures: (i) the scheduled erosion

monitoring will be conducted in close collaboration with the structures responsible for managing the

Gambia River basin; (ii) sizing of the dam will take account of the risk of extreme floods; (iii) the

construction site will be protected with coffer dams and diversion structures to siphon off excess

floodwater during the construction phase.

3.2.7 Furthermore, the use of regional hydro-electricity will reduce the dependence of OMVG

countries on fossil fuel supplies and contribute to the reduction of greenhouse gas emissions by 520,000

tonnes of CO2 equivalent/year. Consequently, the project will contribute to the mitigation of climate

change (carbon sequestration and reduction of greenhouse gas emissions).

Gender

3.2.8 Gender analysis was conducted for the project during development of the Sambangalou hydro-

electricity power plant and interconnection of the four OMVG countries (cf. Annex B.8). It highlighted

the gender disparities in education, health, employment, security and energy access in the project area,

especially around the dam. To address certain shortcomings identified through the analysis, the project

has made provision for special attendant and remedial measures for women affected by the project with

monitoring indicators and a specific budget within the resettlement plan. Furthermore, the project will

enable women to develop income-generating activities and help to increase household income by

implementing a para-agricultural programme that will support the processing of products cultivated by

women's groups.

Social

3.2.9 Construction of the Sambangalou hydro-electricity plant and construction of the interconnection

line will develop the project area and yield a certain number of positive outcomes: improvement of the

living conditions of displaced communities; opening up of access to the project area; access to

electricity in the short and medium terms; creation of employment opportunities and improvement of

incomes; development of fisheries; development of arable lands; and improvement of infrastructure and

creation of new services.

3.2.10 The greatest negative impact on the human environment relates to the displacement of

communities living within the vicinity of the reservoir, impact on the health of locals and workers, loss

of farmland and bridges for crossing the river in the dry season, accidents and drownings, a reduction

in fish landings downstream of the dam, and loss of the natural resources used by the communities.

11

Forced Resettlement

3.2.11 Ten (10) villages will have to be displaced with a total population of 1,436 persons, including

733 women from 180 households. To that end, a resettlement action plan (RAP) was established for all

the 4 countries. It will be implemented by the OMVG in close collaboration with the competent State

institutions. Compensation payments will be managed by the OMVG which will harmonize the

approach among the 4 countries.

3.2.12. The total budget for executing the implementation plan of the Sambangalou hydro-electricity

power plant is EUR 12,359,868 over a 10-year period. This amount includes indemnifications and

compensations totalling EUR 7,118,351, as well as resettlement and development costs amounting to

EUR 5,241,517. The 4 countries will contribute to the financing of the RAP in accordance with their

respective quotas, as defined in the RAP.

3.2.13 The budget for the interconnection line was determined on the basis of data available on the

ground and is estimated at EUR 2,267,000. This amount will be fine-tuned during the line construction

studies. The financing will be provided entirely by OMVG Member States. A summary of the RAP was

published on the Bank's website on 28 May 2015

IV. IMPLEMENTATION

4.1 Implementation Arrangements

4.1.1 Institutional Mechanism: Through a participatory approach framework, the Council of

Ministers, by a resolution adopted in November 2013, authorized the OMVG Executive Secretariat, in

collaboration with Member States and donors, to establish: (i) an Advisory Monitoring Committee

(CMC); (ii) national monitoring committees (NMC); and (iii) local coordination and monitoring

committees (NMC). The CMC will serve as the project steering committee and comprise members

representing the various project stakeholders, namely: the Executive Secretary of OMVG, the national

OMVG units, the ministries in charge of finance, national directorates for energy, national electricity

companies and WAPP. It will be responsible for the strategic guidance and general supervision of the

project. The NMC will be responsible for monitoring and supervision of field activities, environmental

monitoring and administrative facilitation with the support of the NMC (seen Annex B3 in the

technical annexes).

4.1.2 Executing Agency: The OMVG will be the project executing agency. OMVG has already

executed or is satisfactorily executing several studies and projects financed by international donors,

with the exception of the Natural Resources Management Project (PGRN) financed by the Bank. The

special account opened for this project, which was closed since 2010, has not yet been settled and its

final audit is yet to be approved by the Bank. However, OMVG’s capacity to implement this project is

inadequate. That is why provision has been made for technical assistance of its supervision, financed

by the World Bank to support the Project Management Unit (PMU) that will be created within OMVG.

The PMU, which will also be supported by a consultant engineer financed by the Bank for project

implementation, will be tasked with: (i) coordination, planning and smooth implementation of the

components; (ii) monitoring/evaluation and control of project activities; (iii) administrative, financial

and accounting management; and (iv) the bidding process and procurements. The coordinator of

technical assistance for supervision, on behalf of the PMU, will sign with the Executive Secretary of

OMVG a performance contract which would have been approved beforehand by the Bank. Proof of

creation of the PMU and of the establishment of technical assistance for project supervision is one of

the conditions precedent to first disbursement of ADF financing.

12

4.1.2.1 During the operational phase of the facilities constructed under the project, a common Assets

Management Agency (AGO) will be set up based on an agreement already adopted to that end by

OMVG Member States. The States, which are co-owners of the common facilities will delegate major

functions to OMVG and AGO, which would, in turn, delegate responsibilities to private partners during

the operational phase. Under this plan, a lease contract will be signed for the management of the

Sambangalou power station, while a private partner will be recruited for the operation and maintenance

of the interconnection line (O&M contract).

4.1.3 Procurement Arrangements: All goods, works and services financed by the Bank will be

procured in accordance with the relevant AfDB rules and procedures on procurement (May 2008

edition, revised in July 2012), or where necessary, the Bank’s rules and procedures for the recruitment

of consultants (May 2008 edition, revised in July 2012), using the Bank’s standard bidding documents.

Works control and surveillance will be co-financed by WADB which accepted the use of Bank Rules

and Procedures for the recruitment of the firm. To mitigate risks arising from bottlenecks in the

procurement process, advanced procurement actions (APA) were approved by the Bank in May 2014

for (i) construction of the Sambangalou-Mali-Labe-Linsan stretch of the 225 kV line; (ii) construction

of 2 load dispatch stations; and (iii) consultancy services for the supervision of project implementation

works.

4.1.3.1 The Executive Secretariat of the OMVG, supported by technical assistance for delegated project

supervision, local experts and support staff, will be responsible for the procurement of goods/works/

service contracts and consultancy services. Its resources, capacities, expertise and experience were

evaluated by the project appraisal mission and deemed to be generally satisfactory. The project

procurement plan (PPM) was prepared over a period of 18 months, based on the Bank’s model. The

detailed procurement arrangements and PPM are presented in Annex B5.

4.1.4 Financial Management and Audit Arrangements

4.1.4.1 Financial Management: Financial management will follow a parallel system of public

management of the OMVG with commitment accounting based on SYSCOHADA. A manual of

administrative, financial and accounting procedures will be prepared as well as multi-project, multi-

donor, multi-site software whose features include budget, cost and general accounting; automated

generation of financial statements; management of capital assets; and the management of

disbursements and procurements. Budget execution statements and financial monitoring reports will be

produced every quarter, and financial statements comprising the balance sheet, income and expenditure

tables, explanatory notes to the financial statements and a physical inventory of capital assets will be

produced at the end of each fiscal year and submitted to an independent audit structure.

4.1.4.2 Fund Flows and Disbursement: The Executive Secretariat, to which the 4 OMVG Member

States will transfer financing, shall in turn transfer the management of technical-assistance-financing to

the project supervision structure under a delegated project supervision contract. As such, regardless of

the disbursement method (direct payment of special account), fund withdrawal requests shall be co-

signed by the coordinator of project-supervision technical assistance and the Executive Secretary. The

special accounts (ADB and WB) will be operated with the joint signatures of the Coordinator and the

Chief Expert in charge of the financial and accounting management unit. Sub-accounts attached to the

special accounts will be opened in the 4 countries to defray operating expenditure. They shall be

operated with the joint signatures of the Coordinator and the NMC accountant. Expenditure under the

special accounts shall be justified at least once a quarter.

13

4.1.4.3 Financial and Accounting Audit: Project accounts will be submitted to an annual audit

conducted by an independent auditor according to the International Standards on Auditing (ISA)

published by IFAC. The auditor shall be selected according to the procedures of the AfDB which will

have to obtain the endorsement of the audit terms of reference by the other donors. The audit will cover

activities conducted in the 4 OMVG countries and the audit reports must reach the AfDB not later than

six months after the closure of each fiscal year. Audit fees will be paid from AfDB resources.

4.2 Monitoring

4.2.1 Monitoring and evaluation will be conducted by OMVG and financed with project resources.

The consultant engineer in charge of supervision and control as well as the technical assistance for

project management will contribute to the establishment and strengthening of monitoring-evaluation

capacity within the PMU. In each country, the NMC supported by the NMC, will contribute to the

monitoring and supervision of field activities. It will help to obtain the administrative authorizations

and also facilitate environmental monitoring. Proof of creation of the NMC and appointment of their

members is one of the conditions precedent to first disbursement of ADF financing.

4.2.2 The PMU will submit quarterly reports to the Bank on project implementation, procurements,

update of results indicators, disbursements and implementation of the ESMP and RAP. The reports will

also present the problems encountered and envisaged solutions. The Bank will field a project launching

mission after approval of the project. It will also conduct periodic supervision missions, at least twice a

year. Towards the end of works execution and after commissioning of all the works, the PMU will

prepare a project completion report. The Bank will also prepare its own completion report and a project

performance appraisal report.

4.2.3 The main project implementation stages are presented chronologically as follows:

Table

Monitoring of Project Activities / Feedback Loop Period Stages Monitoring Activities/Feedback

Loop

September - December 2015 Approval and effectiveness of

grants/loans

Governments /AfDB / OMVG

October 2015 Finalization of the selection of

companies, consultant engineer (CE)

and technical assistance (TAPS)

OMVG with the consultancy

support financed by the AfDB

March 2016 to March 2020 Execution of works in Sambangalou PMU/TAPS/CE/Companies

March 2016 to August 2017 Execution of interconnection works PMU/TAPS/CE/Companies

Twice a year Project supervision ADF / PMU / CE

November 2018 Mid-term review ADF/PMU/CE

June 2021 OMVG’s Completion Report PMU/TAPS/CE

September 2021 Bank’s Completion Report AfDB

4.3 Governance

4.3.1 The main governance-related problems or risks could arise during implementation of the

procurement plan, especially for construction works on the line, the transformer stations as well as

works control and supervision. Such problems could also relate to transparency of the process and to

ensuring that materials, goods and works comply with the term of reference set out in the bidding

documents. Given the flaws identified in the OMVG's internal procurement systems and to guarantee

application of the relevant rules of good governance, the Bank's procurement procedures for goods,

works and consultancy services will be followed. The consultant (whose selection has already been

14

finalized) who will provide high-level technical assistance and play the role of delegated project

supervisor, will also support the PMU in its procurements. It should be noted that a manual of

administrative, financial, accounting and procurement procedures is being finalized by a consultant and

financed by the Bank. The project will support the establishment, within OMVG, of an internal audit

system which ensures compliance with the procedures, control of budget execution and auditing of the

performance of the Project Management Unit.

4.3.2 To ensure compliance with equipment norms and the execution of works according to

standards, the companies to be selected will work under the supervision and control of the engineering

consultancy firm, in collaboration with the technical assistance for project supervision and the PMU.

As concerns financial management of the project, the executing organ shall keep separate accounts for

the project. This will make it possible to identify expenditure by component, category and financing

source. Project accounts will be audited annually by a firm recruited for that purpose. The financial

statements and audit reports will be submitted to the ADF within six months after closure of the

accounting period.

4.4 Sustainability

4.4.1 As regards commitment and project ownership, OMVG countries have participated actively in

the various phases of project preparation, from the very beginning right up to the DPD/BD phase, as

well as in the institutional study also financed by the Bank. They also participated in project financing

at these different stages by providing national counterpart funds. The same approach was followed

when raising financing for the project.

4.4.2 A study conducted in 2014 with Bank financing, as part of consultancy-support to project

implementation, led to the preparation of (i) a draft power purchase contract for Kaleta and

Sambangalou, and (ii) a draft power transmission contract as well as a billing study to serve as the basis

for negotiation between project stakeholders. The OMVG Council of Ministers has already approved

the "term sheets" for energy generated from Kaleta (240 MW, 946 GWh), of which 30% will be ceded

through interconnection lines to Senegal, Guinea-Bissau and The Gambia following a distribution

formula already agreed upon by the three States (20%, 4% and 6%, respectively). The distribution

formula for energy generated from Sambangalou has also been agreed upon by the States as follows:

The Gambia (18%), Guinea (20%), Guinea Bissau (14%), and Senegal (48%). Kaleta, whose gradual

commissioning started on 28 May 2015 will be the first energy source that will precede Sambangalou

and future sites to be developed in the sub-region. The recourse of Guinea and OMVG to a leasing plan

for Kaleta and Sambangalou and to an operator (O&M) for interconnection, with attendant measures

that include the suspension of supply in case of non-payment of bills by national electricity companies

and the establishment of guarantees and of financing to cover part of the O&M costs during the first

five years of operation, will help to ensure the sustainability of the project.

4.4.3 Furthermore, implementation of the following measures will help to ensure the sustainability

of project impact: (i) the commitment of OMVG Member States to pursue and conclude ongoing

reforms aimed at improving energy sector management, including rehabilitation of national electricity

companies; (ii) training activities for the staff of the PMU, OMVG and national electricity companies

which should ultimately produce competent experts in the electricity sub-sector of the sub-region, as

defined in one of expected outcome; and (iii) the planned interconnection of the OMVG with other

WAPP networks, including the ongoing CLSG interconnection.

15

4.5 Risk Management

4.5.1 The main risks of the project are: (i) the limited resources and experience of OMVG in

implementing such a large-scale project that involves several TFPs; (ii) the limited financial capacity of

national electricity companies; and (iii) the risk of delay due to lack of coordination as a result of the

multiplicity of donors (8 in number). To mitigate the first risk, there are plans to delegate supervision to

a specialized structure tasked with managing the PMU in order to guarantee satisfactory

implementation of the project in all its aspects. This structure will rely on a consultant engineer

responsible for controlling and supervising works execution.

4.5.2 The second risk mentioned above, which relates to the financial health of the electricity

companies that are the main purchasers of generated electricity, remains an abiding concern for donors.

The visits and investigations conducted during the preparation and appraisal phase by the Bank led to

the identification of all current ongoing actions by various donors and other operators to support

planned reforms or specific projects aimed at building the technical and institutional capacities of

electricity companies. This financial situation could lead to a lack of interest by O&M operators of the

network and the potential operators of Sambangalou. As a supplementary mitigative measure for the

risk of non-payment by electricity companies, the project will contribute to the financing of O&M costs

during the first five years through financing arrangements aimed at building a financial reserve to

guarantee future payments. Furthermore, the regular holding of monthly donor coordination meetings

and joint supervision missions will help to mitigate the third risk.

4.6 Knowledge Generation

4.6.1 Project execution will enable OMVG staff and nationals of OMVG Member States involved in

the management of the project to acquire knowledge on the management of major projects,

environmental management, community resettlement, the operation of hydro-electricity power plants,

the installation of high-voltage electricity network, especially for The Gambia and Guinea-Bissau

which have hitherto not had a high-voltage electricity transmission network.

4.6.2 The project will serve as a training framework and a learning opportunity for counterparts of

the experts who will be incorporated into the teams of the companies and consultancy firms to learn,

through a buddy system, certain techniques on the construction of power lines and stations, testing of

facilities, procurements as well as financial and environmental management procedures. Furthermore,

provision is made for a major theoretical and practical training programme for equipment

manufacturers and in partner electricity companies. The Bank, as lead donor among the technical and

financial partners and through regular consultation with 8 donors with whom it will play a leading role

in project implementation, will learn lessons from this experience that will be reflected in similar

projects in future, including projects related to the development of potential second generation sites.

16

V. LEGAL FRAMEWORK

5.1. Legal Instrument

5.1.1 Two (2) grant memoranda of understanding will be signed between the African Development

Fund (hereinafter referred to as "the Fund" or "ADF") and the Republic of The Gambia (the "Donee")

for a maximum amount of UA 0.75 million; and between the Fund and the Republic of Guinea-Bissau

(the "Donee") for a maximum amount of UA 0.81 million.

5.1.2 Four (4) loan agreements will be signed between (i) the African Development Fund (the

"Fund" or ADF) and the Republic of The Gambia (the "Borrower"), for a maximum amount of UA 3

million; (ii) the Fund and the Republic of Guinea-Bissau (the "Borrower") for a maximum amount of

UA 3.69 million; (iii) the Fund and the Republic of Guinea (the "Borrower") for a maximum amount

of UA 46.25 million; and (iv) the Fund and the Republic of Senegal (the "Borrower") for a maximum

amount of UA 42.5 million.

5.2. Conditions Associated with Fund Intervention

A. Conditions precedent to effectiveness of the ADF grants to The Gambia and Guinea-

Bissau; and ADF loans to The Gambia, Guinea, Guinea-Bissau and Senegal

(i) The ADF grants shall become effective on the date of signature, by the parties

concerned, of the relevant grant agreements (Article X, section 10.01, General

Conditions Applicable to Grant Memoranda of Understanding of the African

Development Fund); and

(ii) The ADF loan shall become effective subject to the Borrowers' fulfilment of the conditions

provided for in Section 12.01 of Article XII of the Fund's General Conditions for Loan

Agreements and Guarantee Agreements. (Sovereign entities);

B. Conditions precedent to first disbursement of the ADF grants to The Gambia, Guinea

and Guinea-Bissau; and ADF loans to The Gambia, Guinea, Guinea-Bissau and Senegal.

Apart from fulfilment of the conditions for effectiveness of the memoranda of understanding for the

above-mentioned grants and loans, the donees/borrowers have to fulfil the following conditions

precedent to first disbursement:

(i) supply to the Fund, evidence of signature of an agreement for transferring received

resources to OMVG, under conditions acceptable to the Fund;

(ii) procure a financial and accounting management software package acceptable to the

Fund;

(iii) prepare a manual of administrative, financial and accounting procedures for the project

deemed acceptable by the Fund;

(iv) transmit to the Fund (by the State concerned), where applicable, proof of the opening of

a special account by OMVG in a bank deemed acceptable by the Fund, to receive

resources transferred to OMVG; and

17

(v) transmit to the fund (by OMVG) proof of the recruitment of a consultant in charge of

technical assistance for project management and appointment of the key staff of the

PMU for financial management (a manager and an accountant).

C. Other Conditions for ADF Grants and Loans

(i) Transmission to the Fund, not later than 30 June 2016, by (a) Senegal, of the project

financing agreements with AFD, EIB, IsDB, WADB, the World Bank, KfW and Exim

Bank China, (b) Guinea, of the project financing agreements with the IsDB, the World

Bank, EIB and Exim Bank China, (c) by Guinea-Bissau, of the project financing

agreements with WADB, the World Bank, and Exim Bank China and (d) by The

Gambia, of the project financing agreements with the World Bank, KfW and KFAED;

(ii) transmission, by OMVG to the Fund, of evidence of the creation of a joint Assets

Management Agency, not later than 31 December 2016; and

(iii) transmission to the Fund by each State, prior to the commencement of works on its

territory, and for the component concerned, of: (i) proof of the procurement of land or of

the compensation of persons affected by the project (PAP), in accordance with the

Bank's rules and procedures and the Environmental and Social Management Plan

(ESMP); or (ii), where such acquisition or compensation of certain PAPs is impossible,

proof of deposit into an escrow account acceptable to the Fund, of financial resources to

be used in financing the procurement of land or compensation of these persons; in

accordance with the ESMP and compensation payment plan.

D. Commitments:

Each State undertakes to implement and issue reports on the implementation status of the

Environmental and Social Management Plan (ESMP) and to update the Resettlement Action Plan

(RAP) every six months and not more than 30 days after the end of each period during which reports

should be submitted, in a format acceptable to the Fund

5.3. Conformity with Bank Policies

This project is in conformity with all the Bank’s applicable policies.

VI. RECOMMENDATION

Management recommends that the Board of Directors approve the proposal of (i) ADF grants of UA

0.75 million and UA 0.69 million to the Republic of The Gambia and the Republic of Guinea-Bissau,

respectively; and (ii) ADF loans of UA 3 million, UA 46.25 million, UA 3.81 million and UA 42.5

million to the Republic of The Gambia, the Republic of Guinea, the Republic of Guinea-Bissau, and

the Republic of Senegal, respectively, in accordance with the conditions set out in this report.

I

Indicators Unit 2000 2009 2010 2011 2012 2013 2014 (e)

National Accounts

GNI at Current Prices Million US $ 823 928 975 885 931 925 ...

GNI per Capita US$ 670 570 580 510 520 500 ...

GDP at Current Prices Million US $ 421 904 961 933 936 979 1 119

GDP at 2000 Constant prices Million US $ 421 576 613 587 618 657 653

Real GDP Growth Rate % 5,5 6,4 6,5 -4,3 5,3 6,3 -0,7

Real per Capita GDP Growth Rate % 2,5 3,2 3,3 -7,2 2,0 3,1 -3,8

Gross Domestic Investment % GDP 17,3 19,6 21,4 19,2 23,1 18,0 17,4

Public Investment % GDP 4,6 8,0 9,0 8,7 12,4 7,0 6,6

Private Investment % GDP 12,7 11,6 12,4 10,6 10,7 10,9 10,7

Gross National Savings % GDP -1,1 7,3 5,4 3,6 6,1 1,7 7,1

Prices and Money

Inflation (CPI) % 0,2 4,6 5,0 4,8 4,6 5,2 6,1

Exchange Rate (Annual Average) local currency/US$ 12,8 26,6 27,7 28,4 31,1 33,4 32,5

Monetary Growth (M2) % 105,3 22,6 15,6 11,2 6,6 11,0 13,1

Money and Quasi Money as % of GDP % 56,1 73,5 76,5 85,6 83,0 82,0 83,4

Government Finance

Total Revenue and Grants % GDP 14,8 20,5 18,9 21,2 25,4 18,3 20,7

Total Expenditure and Net Lending % GDP 15,3 23,7 24,0 26,0 29,8 26,8 26,7

Overall Deficit (-) / Surplus (+) % GDP -0,7 -3,2 -5,2 -4,7 -4,4 -8,4 -6,0

External Sector

Exports Volume Growth (Goods) % 34,8 9,9 0,9 17,4 4,7 4,0 4,0

Imports Volume Growth (Goods) % -0,8 -1,1 -10,2 -3,5 19,8 6,8 7,4

Terms of Trade Growth % -10,0 2,2 -14,9 -11,0 -3,5 17,0 9,3

Current Account Balance Million US $ -35 -101 -154 -89 -156 -141 -119

Current Account Balance % GDP -5,7 -11,2 -16,0 -9,5 -16,7 -14,4 -10,7

External Reserves months of imports 5,9 7,2 6,0 6,3 6,1 5,4 3,8

Debt and Financial Flows

Debt Service % exports 26,3 31,3 33,4 30,9 32,9 29,6 27,4

External Debt % GDP 85,4 43,1 42,3 43,2 44,4 43,4 39,2

Net Total Financial Flows Million US $ 45 153 124 154 101 ... ...

Net Official Development Assistance Million US $ 50 127 120 135 139 111 ...

Net Foreign Direct Investment Million US $ 44 40 37 36 25 25 ...

Source : AfDB Statistics Department; IMF: World Economic Outlook, October 2014 and International Financial Statistics, October 2014;

AfDB Statistics Department: Development Data Portal Database, March 2015. United Nations: OECD, Reporting System Division.

Notes: … Data Not Available ( e ) Estimations Last Update: March 2015

GambiaSelected Macroeconomic Indicators

-6,0

-4,0

-2,0

0,0

2,0

4,0

6,0

8,0

2003

2004

200

5

200

6

200

7

200

8

200

9

201

0

2011

2012

201

3

201

4

%

Real GDP Growth Rate, 2003-2014

0

2

4

6

8

10

12

14

16

18

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

Inflation (CPI),

2003-2014

-18,0

-16,0

-14,0

-12,0

-10,0

-8,0

-6,0

-4,0

-2,0

0,0

2 003

2 004

2 005

2 006

2 007

2 008

2 009

2 010

2 011

2 012

2 013

2 014

Current Account Balance as % of GDP,

2003-2014

II

GNB

Indicators Unit 2000 2009 2010 2011 2012 2013 2014 (e)

National Accounts

GNI at Current Prices Million US $ 255 822 889 991 981 1 006 ...

GNI per Capita US$ 200 530 560 610 590 590 ...

GDP at Current Prices Million US $ 216 828 849 1 105 1 073 1 158 1 143

GDP at 2000 Constant prices Million US $ 216 263 275 300 293 296 304

Real GDP Growth Rate % 7,5 3,3 4,4 9,0 -2,2 0,9 2,6

Real per Capita GDP Growth Rate % 5,2 1,1 2,1 6,5 -4,5 -1,5 0,2

Gross Domestic Investment % GDP 20,1 6,3 6,7 6,5 5,0 4,6 4,4

Public Investment % GDP 9,7 4,4 4,3 3,7 2,7 2,3 2,1

Private Investment % GDP 10,4 1,9 2,4 2,8 2,3 2,3 2,3

Gross National Savings % GDP 15,0 -0,1 -2,1 7,4 2,1 1,4 6,4

Prices and Money

Inflation (CPI) % 8,6 -1,6 1,1 5,1 2,1 0,8 0,6

Exchange Rate (Annual Average) local currency/US$ 712,0 471,1 494,7 471,4 510,2 493,9 493,8

Monetary Growth (M2) % 58,9 3,3 33,0 45,8 -3,8 11,9 10,2

Money and Quasi Money as % of GDP % 42,1 26,7 32,9 38,7 35,4 37,9 42,4

Government Finance

Total Revenue and Grants % GDP ... 25,3 21,7 16,7 10,6 10,5 19,5

Total Expenditure and Net Lending % GDP ... 22,2 21,5 18,1 12,7 11,9 21,7

Overall Deficit (-) / Surplus (+) % GDP ... 3,0 0,2 -1,4 -2,1 -1,4 -2,1

External Sector

Exports Volume Growth (Goods) % -12,8 12,7 -12,1 26,1 -25,2 38,0 -5,8

Imports Volume Growth (Goods) % -21,1 18,9 -5,3 6,3 -25,9 2,0 15,4

Terms of Trade Growth % 133,8 -1,4 15,5 29,6 -27,7 -20,2 33,6

Current Account Balance Million US $ 32 -48 -71 -14 -83 -48 -6

Current Account Balance % GDP 8,8 -5,8 -8,3 -1,3 -7,8 -4,1 -0,5

External Reserves months of imports 8,3 7,5 7,0 7,8 7,8 8,9 12,9

Debt and Financial Flows

Debt Service % exports 2,0 8,7 648,7 0,6 0,1 0,0 2,8

External Debt % GDP 217,1 128,9 23,6 31,8 39,2 36,5 37,4

Net Total Financial Flows Million US $ 85 126 131 110 49 ... ...

Net Official Development Assistance Million US $ 81 147 125 120 79 104 ...

Net Foreign Direct Investment Million US $ 1 17 33 25 7 15 ...

Source : AfDB Statistics Department; IMF: World Economic Outlook, October 2014 and International Financial Statistics, October 2014;

AfDB Statistics Department: Development Data Portal Database, March 2015. United Nations: OECD, Reporting System Division.

Notes: … Data Not Available ( e ) Estimations Last Update: March 2015

Guinea-BissauSelected Macroeconomic Indicators

-4,0

-2,0

0,0

2,0

4,0

6,0

8,0

10,0

200

3

200

4

200

5

200

6

200

7

200

8

200

9

201

0

201

1

201

2

201

3

201

4

%

Real GDP Growth Rate, 2003-2014

-6

-4

-2

0

2

4

6

8

10

12

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

Inflation (CPI),

2003-2014

-10,0

-8,0

-6,0

-4,0

-2,0

0,0

2,0

4,0

2 003

2 004

2 005

2 006

2 007

2 008

2 009

2 010

2 011

2 012

2 013

2 014

Current Account Balance as % of GDP,

2003-2014

III

Year Senegal Africa

Develo-

ping

Countries

Develo-

ped

Countries

Basic Indicators

Area ( '000 Km²) 2014 197 30 067 80 386 53 939Total Population (millions) 2014 14,5 1 136,9 6,0 1,3Urban Population (% of Total) 2014 43,4 39,9 47,6 78,7Population Density (per Km²) 2014 74,0 37,8 73,3 24,3GNI per Capita (US $) 2013 1 050 2 310 4 168 39 812Labor Force Participation - Total (%) 2014 76,6 66,1 67,7 72,3Labor Force Participation - Female (%) 2014 44,9 42,8 52,9 65,1Gender -Related Dev elopment Index Value 2007-2013 0,864 0,801 0,506 0,792Human Dev elop. Index (Rank among 187 countries) 2013 163 ... ... ...Popul. Liv ing Below $ 1.25 a Day (% of Population)2008-2013 34,1 39,6 17,0 ...

Demographic Indicators

Population Grow th Rate - Total (%) 2014 2,9 2,5 1,3 0,4Population Grow th Rate - Urban (%) 2014 3,6 3,4 2,5 0,7Population < 15 y ears (%) 2014 43,4 40,8 28,2 17,0Population >= 65 y ears (%) 2014 2,9 3,5 6,3 16,3Dependency Ratio (%) 2014 82,5 62,4 54,3 50,4Sex Ratio (per 100 female) 2014 96,4 100,4 107,7 105,4Female Population 15-49 y ears (% of total population) 2014 24,3 24,0 26,0 23,0Life Ex pectancy at Birth - Total (y ears) 2014 63,6 59,6 69,2 79,3Life Ex pectancy at Birth - Female (y ears) 2014 65,0 60,7 71,2 82,3Crude Birth Rate (per 1,000) 2014 37,3 34,4 20,9 11,4Crude Death Rate (per 1,000) 2014 7,5 10,2 7,7 9,2Infant Mortality Rate (per 1,000) 2013 43,9 56,7 36,8 5,1Child Mortality Rate (per 1,000) 2013 55,3 84,0 50,2 6,1Total Fertility Rate (per w oman) 2014 4,9 4,6 2,6 1,7Maternal Mortality Rate (per 100,000) 2013 320,0 411,5 230,0 17,0Women Using Contraception (%) 2014 17,4 34,9 62,0 ...

Health & Nutrition Indicators

Phy sicians (per 100,000 people) 2004-2012 5,9 46,9 118,1 308,0Nurses (per 100,000 people)* 2004-2012 42,0 133,4 202,9 857,4Births attended by Trained Health Personnel (%) 2009-2012 65,1 50,6 67,7 ...Access to Safe Water (% of Population) 2012 74,1 67,2 87,2 99,2Healthy life ex pectancy at birth (y ears) 2012 55,0 51,3 57 69Access to Sanitation (% of Population) 2012 51,9 38,8 56,9 96,2Percent. of Adults (aged 15-49) Liv ing w ith HIV/AIDS 2013 0,5 3,7 1,2 ...Incidence of Tuberculosis (per 100,000) 2013 136,0 246,0 149,0 22,0Child Immunization Against Tuberculosis (%) 2013 97,0 84,3 90,0 ...Child Immunization Against Measles (%) 2013 84,0 76,0 82,7 93,9Underw eight Children (% of children under 5 y ears) 2005-2013 16,8 20,9 17,0 0,9Daily Calorie Supply per Capita 2011 2 426 2 618 2 335 3 503Public Ex penditure on Health (as % of GDP) 2013 2,2 2,7 3,1 7,3

Education Indicators

Gross Enrolment Ratio (%)

Primary School - Total 2011-2014 83,6 106,3 109,4 101,3 Primary School - Female 2011-2014 87,1 102,6 107,6 101,1 Secondary School - Total 2011-2014 41,0 54,3 69,0 100,2 Secondary School - Female 2011-2014 39,1 51,4 67,7 99,9Primary School Female Teaching Staff (% of Total) 2012-2014 32,4 45,1 58,1 81,6Adult literacy Rate - Total (%) 2006-2012 52,1 61,9 80,4 99,2Adult literacy Rate - Male (%) 2006-2012 66,3 70,2 85,9 99,3Adult literacy Rate - Female (%) 2006-2012 40,4 53,5 75,2 99,0Percentage of GDP Spent on Education 2009-2012 5,6 5,3 4,3 5,5

Environmental Indicators

Land Use (Arable Land as % of Total Land Area) 2012 17,4 8,8 11,8 9,2Agricultural Land (as % of land area) 2012 0,5 43,4 43,4 28,9Forest (As % of Land Area) 2012 43,6 22,1 28,3 34,9Per Capita CO2 Emissions (metric tons) 2012 0,5 1,1 3,0 11,6

Sources : AfDB Statistics Department Databases; World Bank: World Development Indicators; last update :

UNAIDS; UNSD; WHO, UNICEF, UNDP; Country Reports.

Note : n.a. : Not Applicable ; … : Data Not Available.

SenegalCOMPARATIVE SOCIO-ECONOMIC INDICATORS

juin 2015

0

10

20

30

40

50

60

70

80

90

100

2000

2005

2008

2009

2010

2011

2012

2013

Infant Mortality Rate( Per 1000 )

Senegal Africa

0

500

1000

1500

2000

250020

00

2005

2007

2008

2009

2010

2011

2012

2013

GNI Per Capita US $

Senegal Africa

0,0

0,5

1,0

1,5

2,0

2,5

3,0

3,5

2000

2005

2008

2009

2010

2011

2012

2013

2014

Population Growth Rate (%)

Senegal Africa

01020304050607080

2000

2005

2008

2009

2010

2011

2012

2013

2014

Life Expectancy at Birth (years)

Senegal Africa

IV

YearGuinea-

BissauAfrica

Develo-

ping

Countries

Develo-

ped

Countries

Basic Indicators

Area ( '000 Km²) 2014 36 30 067 80 386 53 939Total Population (millions) 2014 1,7 1 136,9 6,0 1,3Urban Population (% of Total) 2014 46,0 39,9 47,6 78,7Population Density (per Km²) 2014 48,3 37,8 73,3 24,3GNI per Capita (US $) 2013 590 2 310 4 168 39 812Labor Force Participation - Total (%) 2014 73,4 66,1 67,7 72,3Labor Force Participation - Female (%) 2014 47,0 42,8 52,9 65,1Gender -Related Dev elopment Index Value 2007-2013 0,381 0,801 0,506 0,792Human Dev elop. Index (Rank among 187 countries) 2013 177 ... ... ...Popul. Liv ing Below $ 1.25 a Day (% of Population)2008-2013 48,9 39,6 17,0 ...

Demographic Indicators

Population Grow th Rate - Total (%) 2014 2,4 2,5 1,3 0,4Population Grow th Rate - Urban (%) 2014 3,9 3,4 2,5 0,7Population < 15 y ears (%) 2014 41,3 40,8 28,2 17,0Population >= 65 y ears (%) 2014 2,9 3,5 6,3 16,3Dependency Ratio (%) 2014 78,3 62,4 54,3 50,4Sex Ratio (per 100 female) 2014 98,9 100,4 107,7 105,4Female Population 15-49 y ears (% of total population) 2014 24,0 24,0 26,0 23,0Life Ex pectancy at Birth - Total (y ears) 2014 54,5 59,6 69,2 79,3Life Ex pectancy at Birth - Female (y ears) 2014 56,1 60,7 71,2 82,3Crude Birth Rate (per 1,000) 2014 37,1 34,4 20,9 11,4Crude Death Rate (per 1,000) 2014 12,4 10,2 7,7 9,2Infant Mortality Rate (per 1,000) 2013 77,9 56,7 36,8 5,1Child Mortality Rate (per 1,000) 2013 123,9 84,0 50,2 6,1Total Fertility Rate (per w oman) 2014 4,9 4,6 2,6 1,7Maternal Mortality Rate (per 100,000) 2013 560,0 411,5 230,0 17,0Women Using Contraception (%) 2014 16,3 34,9 62,0 ...

Health & Nutrition Indicators

Phy sicians (per 100,000 people) 2004-2012 7,0 46,9 118,1 308,0Nurses (per 100,000 people)* 2004-2012 58,5 133,4 202,9 857,4Births attended by Trained Health Personnel (%) 2009-2012 43,0 50,6 67,7 ...Access to Safe Water (% of Population) 2012 73,6 67,2 87,2 99,2Healthy life ex pectancy at birth (y ears) 2012 47,0 51,3 57 69Access to Sanitation (% of Population) 2012 19,7 38,8 56,9 96,2Percent. of Adults (aged 15-49) Liv ing w ith HIV/AIDS 2013 3,7 3,7 1,2 ...Incidence of Tuberculosis (per 100,000) 2013 387,0 246,0 149,0 22,0Child Immunization Against Tuberculosis (%) 2013 94,0 84,3 90,0 ...Child Immunization Against Measles (%) 2013 69,0 76,0 82,7 93,9Underw eight Children (% of children under 5 y ears) 2005-2013 18,1 20,9 17,0 0,9Daily Calorie Supply per Capita 2011 2 304 2 618 2 335 3 503Public Ex penditure on Health (as % of GDP) 2013 1,1 2,7 3,1 7,3

Education Indicators

Gross Enrolment Ratio (%)

Primary School - Total 2011-2014 116,2 106,3 109,4 101,3 Primary School - Female 2011-2014 112,3 102,6 107,6 101,1 Secondary School - Total 2011-2014 34,5 54,3 69,0 100,2 Secondary School - Female 2011-2014 12,6 51,4 67,7 99,9Primary School Female Teaching Staff (% of Total) 2012-2014 21,8 45,1 58,1 81,6Adult literacy Rate - Total (%) 2006-2012 56,7 61,9 80,4 99,2Adult literacy Rate - Male (%) 2006-2012 69,8 70,2 85,9 99,3Adult literacy Rate - Female (%) 2006-2012 43,9 53,5 75,2 99,0Percentage of GDP Spent on Education 2009-2012 ... 5,3 4,3 5,5

Environmental Indicators

Land Use (Arable Land as % of Total Land Area) 2012 10,7 8,8 11,8 9,2Agricultural Land (as % of land area) 2012 0,6 43,4 43,4 28,9Forest (As % of Land Area) 2012 71,2 22,1 28,3 34,9Per Capita CO2 Emissions (metric tons) 2012 0,3 1,1 3,0 11,6

Sources : AfDB Statistics Department Databases; World Bank: World Development Indicators; last update :

UNAIDS; UNSD; WHO, UNICEF, UNDP; Country Reports.

Note : n.a. : Not Applicable ; … : Data Not Available.

Guinea-BissauCOMPARATIVE SOCIO-ECONOMIC INDICATORS

juin 2015

0

20

40

60

80

100

120

2000

2005

2008

2009

2010

2011

2012

2013

Infant Mortality Rate( Per 1000 )

Guine a-Bissau Africa

0

500

1000

1500

2000

250020

00

2005

2007

2008

2009

2010

2011

2012

2013

GNI Per Capita US $

Guine a-Bissau Africa

0,0

0,5

1,0

1,5

2,0

2,5

3,0

2000

2005

2008

2009

2010

2011

2012

2013

2014

Population Growth Rate (%)

Guinea-Bissau Africa

01020304050607080

2000

2005

2008

2009

2010

2011

2012

2013

2014

Life Expectancy at Birth (years)

Guine a-Bissau

Africa

V

Annex II

Table of the Bank's Portfolio in the Countries

Gambia as at 30 March 2015

Approval Amount Amount Disburs. Closing

Sector / Operation Date Approved Disbursed Ratio Date

(UA million) (UA million) (%)

RURAL DEVELOPMENT

1 Sustainable Land Management 26-Oct-10 3.18 2.55 80.1 29-June-15

2

Food & Agriculture Sector Devt. Project (GAFSP) 13-May-03 19.23 2.39 12.4 30-June-19

Sub-total / Average

22.41 4.94 22.0

WATER & SANITATION

3 Support for National Water Reform 7-Apr.-10 1.56 1.56 100 30-Sept-15

4 Rural Water Supply and Sanitation 13-Feb.-12 1.11 0.25 22.2 31-Dec-15

13-Feb.-12 3.13 1.39 44.3 31-Dec-15

Sub-total / Average

5.80 3.20 55.2

GOVERNANCE

5

ISP for Economic and Financial Governance 30-Sept-11 2.00 1.99 99.9 31-Dec-15

6 Support to Financial Intelligence Unit of The Gambia

in the Implementation of Anti-money Laundering and

Terrorism Financing (GovTF: USD 155,471)

3-Oct.-13 0.11 0 0 31-Dec.-15

Sub-total / Average 2.11 1.99 94.3

TOTAL

30.32 10.13 33.4%

Bank Group’s Ongoing Private Sector Operations in The Gambia as at 30 March 2015

Approval

Date

Approved

Amount Disbursed

Amount

Disburs. Closing

Sector / Operation Ratio Date

(UA million) (UA million) (%)

1

Horizons Clinic Project

(USD 8,175,000) 16-Apr-2014 5.93 - - 31-Dec.-2029

TOTAL 5.93

Bank Group’s Ongoing Regional Operations in The Gambia as at 30 March 2015

Approval

Date

Approved

Amount Disbursed

Amount

Disburs. Closing

Sector / Operation Ratio Date

(UA million) (UA million) (%)

RURAL DEVELOPMENT

1

Programme for Building Resilience to Food and

Nutritional Insecurity in the Sahel (P2RS) 15-Oct-2014 11.50 0 0 30-June-2020

Sub-Total 11.50 0 0

INFRASTRUCTURE

2 Trans-Gambia River Crossing Project 16-Dec.-2011 63.55 9.55 15.0 30-June-2017

3 Trans-Gambia Corridor Phase II Preparatory

Studies Project 19-Oct.-2014 1.00 0 0 31-Dec.-2016

Sub-Total 64.55 9.55 14.8

TOTAL 76.05 9.55 12.6

VI

Guinea: Active Projects as at 3 July 2015

Operation Approval Date Approved

Amount

Amount

Disbursed

Disb.

Rate (%)

Closing

Date

1 Institutional Support Study for the

Reorganization of SNAPE

22/01/2014 358,003 0 0.00% 30/04/2016

2 Rural Electrification Project 21/01/2011 14,960,000 2,989,008 19.98% 31/12/2015

3 Rehabilitation and Extension of the Conakry

Power Grid

29/10/2008 12,000,000 11,940,000 99.50% 30/04/2015

4 Second Network Rehabilitation and Extension

Project

11/09/2013 4,690,000 0 0.00% 31/12/2017

5 Second Network Rehabilitation and Extension

Project

11/09/2013 6,310,000 141,975 2.25% 31/12/2017

6 Support to the Project to Build Economic

Management Capacity

31/01/2011 7,544,000 6,640,983 88.03% 31/10/2015

7 Economic Planning and Governance Support

Project

10/07/2013 11,380,000 6,180,478 54.31% 30

September

2017

8 Economic and Financial Reform Support

Program

23 June 14 6,390,000 6,390,000 100.00% 31/12/2015

9 Supporting the National Strategy in the

Development of Statistics

30 June 2011 1,136,000 1,136,000 100.00% 30/06/2015

10 Guinea-Mali Interconnection Study (FOMI) 12/01/2011 1,667,000 760,819 45.64% 31/12/2016

11 Crisis Response: Technical Assistance in

Support Countries

01/10/2014 1,500,000 1,492,050 99.47% 31/12/2015

12 Ebola Fight-Back Programme - Guinea 01/10/2014 12,400,000 12,400,000 100.00% 31/12/2016

13 Ebola Fight-Back Programme - Guinea 01/10/2014 6,000,000 6,000,000 100.00% 31/12/2016

14 Ebola Fight-Back Programme - Guinea 01/10/2014 2,600,000 2,400,060 92.31% 31/12/2016

VII

Guinea Bissau: National Active Projects as at 30 March 2015

Sector/Operation Source Approval

Date

Approved

Amount

(UA

million)

Disbursed

Amount

(UA

million)

Disb.

Rate

(%)

Closing

Date

1

Capacity Building Project for the

Administration (PARCA) ADF 15-Jul-09 7.80 0.47 6.0 31–Dec. -

16

2 Education Project III

ADF 2-Jul-03 3.65 1.62 44.4 31–Dec. -

15

NTF 2-Jul-03 3.51 0.24 6.9 31–Dec. -

15

3 Institutional Capacity-Building Project

(PECA II)

FSS 9-Dec-11 0.66 0.66 100 30-June-

15

4

Support Project for the Capitalization,

Optimization and Dissemination of

PRESAR Results (USD 180,000)

FFCSS 21-Dec-2012 0.13 0 0 31-Dec-15

5 Technical support to PRESAR in the areas

of climate change and renewable energy

development (USD 806,576)

FFCSS 21-Dec-2012 0.59 0 0

31–Dec. -

15

TOTAL 16.34 2.99 18.3

Active Multinational Projects Involving Guinea Bissau as at 30 March 2015

Approval Date Amount Amount Disburs Closing Date

Sector/Operation

Approved Disbursed . Rate

UA million UA million (%)

SOCIAL SECTOR

1 WAEMU Higher Education Support Project 24/07/2006 20 13.05 65.2 15/12/2015

Sub-total / Average 20 13.05 65.2

WATER AND SANITATION SECTOR

2 IWRM for the Kayanga-Geba River Basin

(PMVGRN-OMVG) 09/01/2009 1.24 1.24 100 30/06/2015

Sub-total / Average 1.24 1.24 100

TOTAL 21.24 14.29 67.3

VIII

Senegal: Active National Projects as at 30 March 2015

Approval Date Amount Amount

Disburs.

Rate Closing Date

Sector/Operation

Approved Disbursed

(UA million) (UA million) (%)

RURAL

1

Community Roads Project in support of the National

Development Programme (PPC/PNDL) 17-Jul-13 15.00 2.35 15.7 31-Dec-15

2 Lake Guiers Restoration Project (PREFELAG) -ADF

- GEF

4-Sept-13

4-Sept-13

15.00

0.95

2.33

0

15.6

0

31-Dec-15

31-Dec-15

3 Food Security Support to Louga-Matam-Kaffrine

- ADF

- GAFSP 26-April-13

26-April-13

2.00

28.85

0.26

2.07

13.3

7.2

31-Dec-15

31-Dec-15

Sub-total / Average 61.80 7.01 11.3

INFRASTRUCTURE

4 Rural Electrification 13-Oct-04 9.58 4.49 46.8 31-Oct.-15

5 Dinguiraye-Nioro-Keur-Ayib Road Project 28-May-14 23.77 0 0 30-June-18

Sub-total / Average 33.35 4.49 13.5

WATER AND SANITATION

6 DWSS Prog. in Rural Areas (PEPAM II) 18-Feb-09 30.00 26.70 89 30-Sept-15

7

Project to Improve Sludge Management and Treatment in

Ziguinchor Town (AWF) 23-April-13 0.99 0.28 28.7 30-June-16

8

Water and Sanitation Sector Project

- ADF 23-April-14 20.00 0.13 0.7 31–Dec. -18

RWSSI 23-April-14 4.70 0 0 31–Dec. -18

Sub-total / Average 55.69 27.11 48.7

SOCIAL

9

Project to Support the Promotion of Employment for

Youth and Women (PAPEJF) 23-Oct.-13 21.19 0.46 2.2 30-June-19

10

Senegal Virtual University Support Project (PAUVS) 18 Dec. 13 3.38 0.17 5.1 30-June-17

Sub-total / Average 24.57 0.63 2.6

GOVERNANCE

11

Private Sector Promotion Support Project (PAPSP) 10-Sept-12 4.04 1.09 26.9 30-June-16

Sub-total / Average 4.04 1.09 26.9

TOTAL

179.45 40.33 22.5

IX

Senegal: Active Private Sector Window Projects as at 30 March 2015

Date Amount Amount Disburs. Closing

Sector/Operation of Approval Approved Disbursed Rate Date

(UA million)

(UA

million) (%)

1 Sendou Coal Energy Project 25-Nov-09 43.07 13.58 31.5 31-Dec-15

2

Dakar Toll Highway - Phase II

Senior loan

Standby facility

26-June-14

26-June-14

2.43

0.80

0

0

0

0

31-Dec-27

31-Dec-27

3 Blaise Diagne International Airport (AIBD) 17- Dec -10 54.82 38.84 70.9 5-March-29

4 Kounoune Thermal Power Plant 22-June-05 5.68 5.68 100 30-June-17

5 Dakar Container Terminal 20-Jul-09 15.66 15.66 100 31- Dec -19

6 Volo 5-Aug-13 0.20 0.19 95.3 18-Oct.-15

7

Dakar Toll Highway

Senior Loan

Standby Facility

19-Jul-10

19-Jul-10

7.42

1.17

7.42

0

100

0

31- Dec -25

TOTAL

131.25 81.37 62

X

Annex III

Major Related Projects Financed by the Bank and Other Development

Partners of the Countries

The Gambia Guinea Guinea Bissau Senegal

ADF

Rehabilitation and Extension of

the Distribution Network in

Conakry (PREREC 1) - 2008;

UA 12 million

Rural Electrification Project -

2011; UA 14.96 million

Guinea - Mali Interconnection

Line Study - 2011; UA 1.66

million

Rural Electrification

Project - October

2004; UA 9.58 million

Kounoune Thermal

Power Plant - June

2005; UA 5.68 million

IDA

Improvement of Energy Sector

Efficiency - 2006; UA 37.3

million

Emergency Electricity and

Water Rehabilitation

Project (EEWRP) - May

2010; USD 14.9 million

Emergency Electricity and

Water Rehabilitation

Project (EEWRP) - May

2014; USD 22.5 million

Electricity Sector

Support Project - July

2012; USD 93.5

million

IsDB

Rehabilitation and Extension of

the Distribution Network in

Conakry (PREREC 1) - 2008;

USD 11.5 million

Rehabilitation of the Tombo

Power Plants - 2012; USD

17.45 million

WADB

15 MW Thermal Power

Plant Construction Project -

December 2011; CFA.F

13,300 million

CHINA

Kaleta Hydro-electricity Power

Plant Development - 2012;

USD 334.5 million

XI

Annex IV

Map of the Project Area

The staff of the African Development Bank

Group have provided this map for the

exclusive use of readers of this report to which

it is appended. The appellations and the

demarcations on this map do not imply any

judgment on the part of the ADB Group and

its members concerning either the legal status

of a territory or the approval or acceptance of

its boundaries.