Translated Document

AFRICAN DEVELOPMENT BANK GROUP

MULTINATIONAL (BENIN-TOGO)

LOME- COTONOU ROAD REHABILITATION (PHASE 2)

AND COASTAL PROTECTION

APPRAISAL REPORT

OITC/GECL November 2016

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TABLE OF CONTENT

I. STRATEGIC THRUST AND RATIONALE 1

1.1 Project linkages with the country strategy and objectives of Benin and Togo 1 1.2 Justification for Bank’s intervention 2 1.3 Donor coordination 2

II. PROJECT DESCRIPTION 3

2.1 Development objectives and project components 3 2.2 Technical solutions retained and other alternatives explored 4 2.3 Project type 4 2.4 Project cost and financing arrangements 5 2.5 Project’s target area and population 7 2.6 Participatory process for project design and implementation 7 2.7 Bank Group experience, lessons reflected in project design 8 2.8 Key performance indicators 9 III. PROJECT FEASIBILITY 9

3.1 Economic and financial performance 9 3.2 Environnemental and social impact 10 IV. PROJECT IMPLEMENTATION 13

4.1 Implementation arrangements 13 4.2 Monitoring 15 4.3 Governance 16 4.4 Sustainability 16 4.5 Risk management 17 4.6 Knowledge building 17 V. LEGAL INSTRUMENT AND AUTHORITY 18

5.1 Legal instrument 18 5.2 Conditions related to Fund’s intervention 18 5.3 Conformity with Bank’s policies 18 VI. RECOMMENDATIONS 19

I. Comparative socio-economic indicators (Benin and Togo) … I

II. Table of ADB's portfolio in Benin and Togo II

IV. Map of the project area …… …III

TABLE LIST

Table 2.1 : Project components …………………………..…………………………………………..…...4

Table 2.2 : Technical solutions retained and alternatives explored ………………………………………………….…..5

Table 2.3 : Costs estimates by project components ..……………………………….……...........................5

Table 2.3 bis : Cost estimates by component and by country………………………………………………… ……6

Table 2.4 : Cost estimates by project expenditure category ………………………..……………………. 6

Table 2.4 bis : Cost estimates by expenditures category and by country…………………………………………….. 6

Table 2.5: Financing sources of project component…………………………………………………………… 7

Table 2.6 Expenditure schedule by financing sources..…………………………….………………… .7

Table 3.1: Economic analysis summary………………………………………………………………………….… 11

Table 4.1 : Monitoring and evaluation schedule………………………………………………………………………… 17

i

CURRENCY EQUIVALENTS [August 2016]

1 UA = 822.459 XOF

1 UA = 1.25383 EUROS

1 UA = 1.39338 US$ EUROS

FISCAL YEAR

January 1st – December 31st

Weights and Measures

1 metric tonne = 2204 pounds (lbs)

1 kilogramme (kg) = 2.200 lbs

1 metre (m) = 3.28 feet (ft)

1 millimetre (mm) = 0.03937 inch (“)

1 kilometre (km) = 0.62 mile

1 hectare (ha) = 2.471 acres

ii

ACRONYMS AND ABRÉVIATIONS

PBA: Performance-Based Allocation

AfIF: EU Africa Investment Facility

IGA: Income Generating Activities

DD: Detailed Design

PD: Preliminary Design

AfDB: African Development Bank

EIB: European Investment Bank

IsDB: Islamic Development Bank

EBID: ECOWAS Bank for Investment and Development

BOAD: West African Development Bank

ECOWAS: Economic Community of West African States

REC: Regional Economic Community

VOC: Vehicle Operating Costs

CAW: Centre for the Advancement of Women

JTC: Joint Technical Committee

CU1 : Community Road 1

DATC UEMOA Community Territory Planning Directorate

ED: Environment Division

DGI: Directorate General for Infrastructure (Benin)

DGPW: Directorate General for Public Works (Togo)

CSP: Country Strategy Paper

PRSD: Poverty Reduction Strategy Document

ESIA: Environmental and Social Impact Assessment

TSF: Transition Support Facility

ADF: African Development Fund

GEF Global Environmental Facility

IEC: Information, Education and Communication

ETCD Excluding taxes and customs duties

M/month: Men / month

MCVDD Ministry of Quality of Life and Sustainable Development (Benin)

MERF: Ministry of Environment and Forestry Resources (Togo)

MIT-B: Ministry of Infrastructure and Transport (Benin)

MIT-T: Ministry of Infrastructure and Transport (Togo)

STD: Sexually Transmitted Diseases

N/A Non applicable

OPA: Observatory of Abnormal Practices

ALCO Abidjan-Lagos Corridor Organization

PAC: Autonomous Port of Cotonou

PACITR Action Plan For Road Infrastructure And Transport (WAEMU)

PAL Autonomous Port of Lomé

PAP Project Affected People

OSBP One Stop Border Post

FRP Full resettlement plan

ESMP Environmental and Social Management Plan

PIDA Programme for Infrastructure Development in Africa

PRFTTRIE: Regional Programme for the Facilitation of Interstate Road Transportation and Transit (ECOWAS)

SCAPE: Strategy for Accelerated Growth and Employment Promotion

TOR: Terms of Reference

AADT: Average Annual Daily Traffic

IRR: Internal rate of return

UA: Unit of Account

EU: European Union

UEMOA: West African Economic and Monetary Union (WAEMU)

USEP: Project Coordinating Unit

NPV: Net Present Value

Veh/d: Vehicles/day

PAI: Project's Area of Influence

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1. Project Worksheet

COUNTRY : Benin / Togo

PROJECT TITLE : Lome – Cotonou road rehabilitation (Phase 2) and coastal protection

LOCATION : South Benin (Atlantique and Mono Prefectures) and South (Gulf and Lakes

Prefectures)

BORROWERS : Republic of Benin and Republic of Togo

EXECUTING AGENCY : Ministry of Infrastructures and Transport (Togo)/ Directorate General of Public

Works

Ministry of Infrastructures and Transport (Benin)/ Directorate General of

Infrastructures

2. Financing Plan

Source Amount in UA Million*

Instrument

Benin Togo Total

ADF loan (country allocation) 1 9 10 Project loan

TSF loan 18.35 18.35 Project loan

ADF grant 0.93 0.93 Grant (cancellation

balance)

TSF grant 0.03 0.03 Grant (cancellation

balance)

IsDB 67.86 67.86 Loan

BOAD 13.16 13.16 Loan

EU grant (AfIF) 1.99 13.96 15.95 Grant

UEMOA 0.96 0.96 Grant

GEF 6.41 6.41 Grant

GOVERNMENT of Togo 2.09 2.09 Investment budget

TOTAL 2.99 131.35 134.34

3. ADF’s key financing information

Loan Currency Unit of Account (UA)

Interest type N/A

Interest rate margin N/A

Service fee 75 bps on amount disbursed and outstanding

Commitment fee 5bps on the undisbursed loan amount 120 days following signature of the loan

agreement

Tenor 40 years

Grace period 10 years (Togo) et 5 years (Benin)

EIRR (base)

NPV

20.3% ;

54.278 billion FCFA

4. Timeframe - Main Milestones (expected)

Activities (month, year)

Project Concept Note Approval July 2016

Project Approval December 2016

Financing agreements signing (au plus tard) February 2017

Project completion December 2020

ADF loans/grants disbursement deadline December 2021

iv

PROJECT SUMMARY

Project Overview

1. The Abidjan-Lagos corridor is considered priority under the African Union Program for

Infrastructure Development in Africa (PIDA) and the ECOWAS regional transportation facilitation

program. The Lomé-Cotonou section of the corridor is an essential link in the Community Road (CU1

road) within the West African Economic and Monetary Union (WAEMU) zone. The Bank is currently

financing the Abidjan-Lagos 6 lanes Highway Development Study and, as part of Phase 1 of the current

project, the reconstruction in Benin, of the Pahou-Ouidah-Hillacondji road section and the building of

a One Stop Border Post (OSBP) at the border between Togo and Benin. The upgrading into a 2x2 lanes

of the Avépozo - Aneho section (30 km), planned as part of this project, will complete the missing link

on the Togolese portion of the Abidjan-Lagos corridor.

2. Like all the coastal countries in the sub-region, Togo and Benin have an interconnected coastal

and marine environment, densely populated with large infrastructure and industries and major

economic centers or capital cities located along it. However, these coastal areas are frequently subject

to flooding and/or erosion, which cause considerable damages. This situation threatens the livelihood

of coastal communities and nearby coastal infrastructure, drastically reducing the potential for

economic development along the coast.

3. The Bank's intervention in support of this strategic project is justified by the fact that its

implementation will contribute to achieving the objectives of its Ten Year Strategy (2013-2022), whose

aim is to promote infrastructure development and regional integration amongst others. Finally, the

project is justified by the fact that it aligns with the "High 5" strategic priorities of the Bank, namely

regional integration, industrialization, improving the quality of life of the people, youth employment,

equality, gender and resilience to climate change.

4. At the strategic level, this project aims to contribute to strengthening regional integration, the

growth of intra-regional trade as well as protecting the Togolese and Beninese coastlines. Specifically,

the project aims to: (i) improve the level of service of the transport logistical chain and traffic flow on

the Abidjan - Lagos corridor as well as improve the living conditions of people in the project area of

influence (PAI) and (ii) strengthen the climate resilience of infrastructure in coastal areas in Togo and

Benin. The project will directly benefit transportation users as well as the 1.7 million people in the

project area.

5. The project’s main components include: (A) upgrading into 2x2 lanes of the Avépozo- Aneho

road, (B) coastal protection works including construction of 28 groynes and beach nourishment as well

as coastal protection studies in Togo and Benin, (C) ancillary works and support to pro youth/gender

economic activities, (D) transport and transit facilitation measures, provision of equipment for the

OSBP, sensitization campaigns for border services and users and (D) support to project management

and monitoring. The implementation of project activities will take place from January 2017 to

December 2021. The total cost for the project, excluding taxes and customs duties is estimated at UA

134.341 million. The project will be jointly financed by the ADF, the Islamic Development Bank, the

European Union, the West African Development Bank, the Global Environment Facility, WAEMU,

and the Government of Togo.

Needs assessment

6. The project design is based upon feasibility studies completed in March 2016, which indicated

the urgent need for the construction of the Avépozo-Aného road and the coastal protection

infrastructure in the emergency area that is 13km along the Togolese coast. The combined construction

of the road and coastal protection infrastructure will not only improve the level of service between

Lomé and Cotonou but will most of all preserve human lives, the national territory and socio-economic

infrastructure of great importance such as the Abidjan-Lagos corridor all of which are located along

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the Togolese coast. In fact, this project is another step in the protection of the entire Togolese and

Beninese coast, as it will enable development of a coherent, comprehensive and multi-dimensional

program to fight against coastal erosion in both countries.

Added value for the Bank

7. The Bank is considered in the sub-region as a strategic partner in the transport sector through

its various past and ongoing operations. In addition to national transport projects, the Bank plays a key

role in financing regional projects including the Abidjan-Lagos corridor. The Bank financed

construction of several sections of the Abidjan-Lagos corridor, including the Avépozo- Port

Roundabout in Togo; Tema -Aflao and Akatsi-Dzodze-Noepe, in Ghana. It is currently funding a 6

lanes highway development study between Abidjan and Lagos (which will determine, among other

things, the most optimal route between the two cities) and as part of Phase 1 of this project, development

of the Pahou-Ouidah-Hillacondji road and construction of the One Stop Border Post (OSBP) at the

border between Togo and Benin. Through the current project, the Bank will therefore leverage the

achievements of previous national/multinational operations in the transport sector. Indeed, the project

will sustainably consolidate the achievements of previous projects by ensuring continuity of traffic and

an enhanced level of service on this trans-African route (Dakar-Mombasa Trans African Highway)

which is ranked among the most strategic roads in the continent and as such drains a large part of traffic

from the coastal cities of the sub-region (Abidjan, Accra, Lomé, Cotonou, Lagos) and even from the

countries of the hinterland through the corridors that are being financed by the Bank, such as Lomé-

Ouagadougou, Cotonou-Parakou-Malanville-Dosso -Niamey, etc. ..

8. Moreover, the project provides an opportunity to ensure the sustainability of investments on

the coast addressing the problems of resilience of coastal infrastructure subject to climate change and

coastal erosion. The sea has already flooded the first two previous alignments of the project road and

is threatening the current and third alignment, which is located in some parts, less than 100m from the

ocean. This project will thus ensure the sustainability of all investments made for and along the road.

Knowledge management

9. The project will provide an opportunity for improved knowledge in the fields of regional

infrastructure and coastal protection. The important knowledge management system included in this

project will identify the needs for coastal protection infrastructure, awareness/sensitization,

information, and education on erosion and climate change. The dissemination of this knowledge will

be done through the Bank's website, meetings, and other opportunities for information sharing with the

various stakeholders operating in the sector.

vi

RESULTS-BASED LOGICAL FRAMEWORK

Country and project name : Bénin/ Togo : Lomé-Cotonou road rehabilitation (phase 2) and coastal protection

Objective of the project : Improve coastal protection, the level of service along the above-mentioned road as well as the living conditions of people in the project influence zone.

RESULTS CHAIN

PERFORMANCE INDICATORS MEANS OF

VÉRIFICATION

RISKS/

MITIGATION MESURES Indicator

(including CSI) Baseline Situation Target

IMP

AC

T

Contribute to

strengthening of regional

integration, increased

inter-regional trade and

protection of the Togolese

coast

Volume of trade recorded at the Sanvee

Condji/Hillacondji border between Togo

and Benin/other countries of the sub-region

In 2016:

Import: amounting to CFAF

31 755 674 756 for the

weight of 108 323 806 kg ;

Export : amounting to CFAF

11 576 192 085 and

weighing 12 231 572 kg

In 2020 :

Import: will be up by

15% weight of imports

representing 124 572

377kg and exports

representing 14 066 308

kg

Source : INSAE

Reports on national

statistics, ALCO and

Customs

Risks

(i) Delay in mobilizing counterpart resources ;

(ii) Increase in construction costs;

(iii) Slowness/delay in procurement, resulting in late

startup of works;

(iv) Weakness in the Project Management Unit’s

human resources;

Mitigative measures

(i) The Government counterpart has been reduced to

minimum and will be secured in an account;

(ii) Cost estimates were made on the basis of unit price

of current markets, taking into account physical and

financial contingencies;

(iii) Good knowledge of Bank procurement rules and

procedures by the DGTP and close monitoring by

TGFO;

(iv) The management unit will be strengthened in

human and material resources (technical assistance to

the executing agency) for the successful

implementation of this project

OU

TC

OM

ES

Impact 1: Improved traffic

conditions of the Lomé-

Cotonou road

Impact 2: Slowing coastal

erosion in the PIA

Impact 3: Improved living

conditions of the

populations in the PIA.

1.1. Average travel time between Lome

and Cotonou

1.2. Transit duration for HT to the border

2.1 Erosion rate of the coastline (m/year)

3.1 : Average annual income

/household/gender

3.2 : Direct jobs created levels

In 2016 :

1.1 :11hrs for HTs

1.2: 7hrs

2.1 :15 to 20m/year

3.1: CFAF 48900

3.2: 0

In 2020:

1.1 : 5 hrs for HTs

1.2 : 3hrs

2.1 : 0m/year

3.1: CFAF 60000

3.2 :75000 hs-month

including 20%

women

Source :

DGTP, ALCO and

INSAE reports

OU

TP

UT

S

Ouput 1: Road works

implemented

Output 2: Coastal

protection works

Output 3: Ancillary works

1.1 Linear (km) of roads built in 2x2

2.1 Number of groynes

2.2 Number m3 of refilling

2.3 Number of persons sensitized

2.4 Number of coastal studies conducted

2.5 Number of women supported in IGA

3.1 : Linear (Km) of urban roads developed

3.2 : Number of water points rehabilitated,

3.3 : Number of multifunctional centers for

women built

3.4. Number of latrines built,

3.5. Number of rehabilitated markets

3.6. Number of health facilities

rehabilitated

3.7. Number of school infrastructure

In 2016 :

1.1 0

2.1: 0

2.2: 0

2.3: 0

2.4: 0

2.5: 0

3.1: 0

3.2: 0

3.3: 0

3.4:0

3.5:0

3.6. 0

3.7. 0

In 2020 :

1.1 30

2.1 : 28 groynes

2.2 : 920 000

2.3 : 5 000

2.4 : 2

2.5 : 400

3.1 : 7

3.2 : 3

3.3 : 2

3.4 :21

3.5 : 3

3.6 :2

3.7 : 2

Source:

DGTP, ALCO and

INSAE reports

vii

Output 4: Measures to

operationalize the PCJ of

Sanvee Condji

/Hillacondji

Output 5: Support to

executing agencies

4.1. Equipment procured for OSBP

4.2. Number of persons sensitized

4.3. Studies conducted on the OSBP

5.1. Documents on road safety,

5.2. Number of equipment procured

5.3. Number of State agents trained,

5.4. MIT documents archiving system

4.1 : 0

4.2 : 0

4.3 : 0

5.1 : 0

5.2 : 0

5.3 : 0

4.1 : 1

4.2 :20000

4.3 :3

5.1 : 2

5.2. 40

5.3 : 20

A C TI

VI

T É S

C L É S

COMPONENTS RESOURCES (UA MILLION)

1. Road works ;

2. Coastal protection works

3. Ancillary works

4. Transport facilitation

5. Institutional Support

6. Project management

1. Road Works:61.29 UA Million;

2. Coastal protection works : 39.05 UA

3. Ancillary works :4.93MUA

4. Transport Facilitation : 3.20MUA

5. Institutional Support : 3,86MUA

6. Project management : 2.48MUAC

Physical contingencies: 11,18Mo UC

Financial contingencies : 6,41Mo UC

TOTAL AMOUNT : 134,341Mo UC

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IMPLEMENTATION SCHEDULE

Name of Activity

LOME- COTONOU ROAD REHABILITATION AND

COASTAL PROTECTION PROJECT

1. GENERAL ACTIVITIES

1.1 Loan approval by the Bank

1.2 Loan signature

1.3 Project launching mission

1.4 Loan effectiveness

1.5 Lifting of conditions precedent to first disbursement

2. ROAD WORKS

2.1 Procurement process

2.2 Execution of works

2.3 End of works/ provisional acceptance

2.4 Guarantee period

3. CONTROL AND SUPERVISION OF ROAD WORKS

3.1Procurement process

3.2 Execution of services

3.3 End of works/provisional acceptance

4. COASTAL PROTECTION INFRASTRUCTURE WORKS

4.1Procurement process

4.2 Execution of works

4.3 Control and supervision of works

4.4 Works completion/provisional acceptance

4.5 Guarantee period

5. TECHNICAL ASSIST. TO THE EXECUTING AGENCY

5.1 Procurement process

5.2 Execution of services

5.3 End of services

6. TRANSPORT SECTOR RELATED STUDIES

6.1 Procurement process

6.2 Execution of services

6.3 End of services

7. COASTAL PROTECTION RELATED STUDIES

7.1 Procurement process

7.2 Execution of services

7.3 Completion of services

8. AUDITS

8.1 Procurement process

8.2 Execution of services

8.3 End of services

G

A

N

T

T

C

H

A

R

T

1

REPORT AND RECOMMENDATION OF THE BANK GROUP MANAGEMENT TO THE BOARD OF DIRECTORS

CONCERNING PROPOSED ADF LOAN TO THE REPUBLIC OF BENIN AND TWO ADF/TSF LOANS, TWO

ADF/TSF GRANTS AND GEF GRANT TO THE TOGOLESE REPUBLIC FOR THE LOME-COTONOU ROAD

REHABILITATION (PHASE 2) AND COASTAL PROTECTION PROJECT

Management hereby submits the present report and recommendations concerning a proposal to award

an ADF loan of UA 1 million to the Republic of Benin and an ADF loan of UA 9million, a TSF loan of

UA 18.35 million, an ADF grant of UA 0.93 million, a TSF grant of UA0.03 million and a GEF grant

of 8.93 million US$ to the Togolese Republic, as contributions towards the financing of the Lome-

Cotonou road rehabilitation (phase 2) and coastal protection project.

I. STRATEGIC THRUST AND RATIONALE

1.1 Project Linkages with the Country Strategy and Objectives (Benin and Togo)

1.1.1 The project road forms part of the Abidjan-Lagos corridor, identified as the backbone of the

socioeconomic development of the sub-region. The Abidjan-Lagos corridor is considered the first

priority of the Programme for Infrastructure Development in Africa (PIDA) of the African Union (AU)

and the ECOWAS Regional Programme for Transport Facilitation. The Lome-Cotonou section of the

corridor is also an essential link in the Community Road (CU1 road) of the West African Economic and

Monetary Union (WAEMU) and under their Action Plan for Road Infrastructure and Transport

(PACITR) and the Regional Programme for the Facilitation of Inter-State Road Transportation and

Transit (PRFTTRIE). The upgrading of the Avépozo - Aneho section (30 km) into a 2x2 lanes as part of

this project, will complete the Togolese portion of the corridor. In addition, the combined provision of

road infrastructure and coastal protection will not only improve the level of service between Lome and

Cotonou but also mostly preserve human lives, the country and the socio-economic infrastructure of

great importance such as the Abidjan-Lagos corridor located along the Togolese coast. In fact, this

project is another step in the protection of the entire Togolese and Beninese coastline as it will provide

for both countries a coherent, comprehensive and multi-dimensional programme against coastal erosion.

1.1.2 The project is consistent with the Strategy for Accelerated Growth and Employment Promotion

(SCAPE) 2013-2017 of Togo, for which the development of economic infrastructure is one of the five

(5) strategic priorities. Similarly, it is consistent with the Governmental Action Plan (2016-2021) of

Benin, under preparation of which one priority is the promotion of supporting infrastructure for

economic growth, including transportation, logistics and trade. It is also consistent with the National

Investment Programme for the Environment and Natural Resources (PNIERN) of Togo, for which the

subroutine (sub-programme) includes the coastal erosion phenomenon in national priorities. Concerning

Benin, coastal risk is a national strategic priority and as such is mentioned in the Master Plan on Coastal

Planning (SDAL), the National Action Plan for Adaptation (NAPA) to climate change, etc. The project

is also consistent with the Master Plan of the West African Coast (SDLAO) which advocates that all

actions should be under a concerted regional approach. The project is also in line with sectoral visions

and transport policies of both countries. It is also part of the Bank's Strategy Paper for Togo (CSP 2016-

2020), one of the two pillars is the "Development of inclusive growth poles and agribusiness

competitiveness, and development of economic infrastructure". The project is also in full agreement

with the first pillar of Benin CSP for the period 2012-2016, namely: (i) development of supporting

infrastructure for production and competitiveness. It is also in line with the two pillars proposed in the

CSP 2017-2021 of Benin which are: (i) the development of agricultural value chains and agribusiness

that support among others the strengthening of capacity to adapt to climate change (coastal erosion,

flooding, etc.) that weaken rural populations and; ii) strengthening of supporting infrastructure for

regional integration and competitiveness.

2

1.1.3 The West Africa Regional Integration Strategy Paper (RISP 2011-2015) extended to 2017 is

based on two pillars: (i) development of regional infrastructure and (ii) capacity building for the effective

implementation of the regional integration programmes. Pillar I especially supports investments in

regional transport infrastructure (missing sections of Trans Coastal and Trans Sahel road networks,

rehabilitation of priority road corridors, inland waterways) and transport and trade facilitation measures.

The project is aligned with the priority 1 of RISP 2011-2015 extended to 2017.

1.2 Justification for Bank’s Intervention

1.2.1 The Bank’s intervention in support of this strategic project is also justified by the fact that its

implementation will contribute to achieving the objectives of the Ten Year Strategy (2013-2022) which

aims to increase substantially financing for the continent's infrastructure and to promote regional

integration. Finally, the project is justified by the fact that it aligns with the strategic priorities of the

"High 5" of the Bank in helping to meet the challenges of regional integration, industrialization,

improving the quality of life of populations, youth employment, equality, gender and resilience to

climate change.

1.2.2 The Bank is considered in the sub-region as a strategic partner in the transport sector through

its various past and ongoing interventions in the sector. In addition to nationwide transport projects, the

Bank plays a key role in financing corridor projects in West Africa including Abidjan-Lagos corridor.

The Bank financed construction of several sections of the corridor, such as the Port Roundabout -

Avépozo, Togo; Tema-Aflao and Akatsi-Dzodze-Noepe, in Ghana. The Bank is currently funding the

study on development of 6-lanes Highway between Abidjan and Lagos (which will determine, among a

more optimal highway between Abidjan and Lagos), and as part of Phase 1 of this project the

reconstruction of the Pahou-Ouidah-Hillacondji road and construction of a One Stop Border Post

(OSBP) at the border between Togo and Benin. Moreover, the actions planned for this project will aim

to turn into 2x2 lanes, the entire Togolese portion of the Lomé-Cotonou section and make the OSBP

fully operational. Phase 2 of this project will sustainably consolidate the achievements of previous

projects by ensuring continuity of traffic and a better level of service on the trans-African road ranked

among the most strategic roads in the area and which attracts 75% of trade in West Africa. Thus a

significant share of traffic between the coastal towns of the sub-region (Abidjan, Accra, Lome, Cotonou,

Lagos) and even the hinterland countries.

1.2.3 Through this intervention, the Bank will enhance its support for the local branches of the

observation mission of the West African Coast (MOLOA), an initiative gathering over 11 coastal

countries from Mauritania to Benin in order to monitor the coastline and reducing coastal risks in West

Africa

1.2.4 Furthermore, the project provides an opportunity to ensure the sustainability of investments on

the coast by addressing resilience problems of coastal infrastructure faced with climate change and

coastal erosion. Indeed, the high rate of erosion on the Togolese and Beninese coast has reached alarming

proportions, endangering resources and services generated by the coastal and marine ecosystems that

are key drivers of economic growth, accounting for 56% of GDP of these coastal countries of West

Africa.

1.3 Donor Coordination

1.3.1 The main development partners operating in the transport sector in Togo are the Bank, the

World Bank, BOAD, EBID, IsDB, EU, AFD, KfW, JICA, BADEA, FSD, FKD, OFID, Abu Dhabi Fund

and China. In Togo, the authorities have set up an institutional coordinating mechanism, for monitoring

and evaluation of development policies (DIPD). It is in this context that a formal mechanism for donor

coordination of supporting infrastructure for growth has been set up. The Bank, as the main donor in the

3

transport sector of Togo is designated as leader of Technical and Financial Partners and Vice President

of the Sector Infrastructure Committee. In the Togolese transport sector, the Bank financed the study on

a strategy for the development of the sector which is currently awaiting approval but constitutes the

reference framework for partners involved in the sector.

1.3.2 In Benin, the aid coordination is done at both national and sectoral level. Nationally, it is

provided by the Monitoring Unit's Technical Secretariat for Economic and Financial Programmes and

the Ministry of Planning and Development, through the Directorate General of Investments and

Development Funding (DGIFD) and the Directorate General for Monitoring Projects and Programmes.

The main donors active in the transport sector are the World Bank, ADB, BOAD, EBID, IDB, Arab

Funds and the Netherlands. At sectoral level, the donors present in the country have actively contributed

to the development of the Transport Sector Strategy (TSS), the National Rural Transport Strategy

(SNTR) and the Road Maintenance Strategy.

II. PROJECT DESCRIPTION

2.1 Development Objectives and Project Components

2.1.1 The sector goal of the project is to contribute towards strengthening of regional integration,

growth in intra-regional trade and the protection of the Togolese and Beninese coasts. Specifically, the

project aims at: (i) improving the level of service in the supply chain of transportation and traffic flow

on the Abidjan - Lagos corridor and the living conditions of populations in the PIA and (ii) strengthening

climate resilience of coastal area infrastructure in Togo and Benin. The project components are

summarized in the table below:

Table 2.1 - Summary of Project Components

Component Description of components

Road works In Togo

A.1 Upgrading into 2x2 lanes of Avépozo-Aného road (30km) in 2 lots

A.2 Environmental measures

A.3 Road works supervision

A.4 Sensitization campaigns targeting PIA people on topics such as STDs,

environmental protection and road safety

A.5 Resettlement

Coastal protection works

In Togo

B.1 Construction of 28 groynes on 13km long coast and beach reloading (with sand) plus

maintenance of existing coastal infrastructure

B.2 ESMP Measures

B.3 Coastal protection works supervision

B.4 Coastal protection studies(i) setting up of early warning system ; ii) coastal area

master plan ; iii) updating of coastal protection measures -phase 2, iv) establishment of a

coastal protection management structure

B.5 IEC campaigns for coastal protection

B.6 Studies in Benin : B.7 Full (economic and technical) Feasibility study for the

strengthening of coastal infrastructure resilience to climate change

Ancillary works and

activities in support of

women and youth

In Togo

C.1 Income generating activities for vulnerable people on the coast (these involved

people involved in sand mining)

C.2. Multifunctional center for Aneho youth

C.3 Fencing of Heavy Vehicles Parks in Aného equipped with 2 latrines and borehole

C.4 Construction/Rehabilitation of markets stalls/stores for women in Baguida et Agbodrafo

C.5 Rehab of social Infrastructures : 2 High schools and health centers

C.6 Support to youth employment with the CERFER

C.7 Supervision of ancillary works

4

Transport facilitation In Togo/ Benin

D.1 Procurement of equipment for the OSBP of the Hillacondji/Sanvee-Condji

D.2 Facilitation studies (3) financed by WAEMU : sensitization campaigns for border

services ; ii) Study for the OSBP operations management/financing and iii)

Interconnection of customs systems at OSBP.

D.3 Study on the Impact of overloading on road infrastructure in Togo

Institutional support

In Togo

E.1 Study for development the road safety / prevention policy

E.2 Support to MIT (archiving and training) and MERF equipment (simulation system of

marine phenomena

E.3 Training of DGTP and DE staff on coastal infrastructure engineering and

environmental protection

E.4 Knowledge management and monitoring &evaluation

In Benin : E.5 Road studies

E.6 Provision of equipment for MIT & MCVDD (archiving, internet access, etc.)

Project Management In Togo

F.1 Technical/ road safety audit

F.2 Financial and procurement Audit

F.3 Project implementation unit operations

F.4 Technical Assistance for the Project Implementation Unit

F.5 Operations/supervision of the Joint Technical Committee

Au Bénin: F.6 Financial Audit

2.2 Technical Solutions Retained and Other Alternatives Explored

2.2.1 The project provides a 2x2 lanes carriageway of 7 m width with a median of 2 m, 20 cm thick

cement stabilized subbase, a 15cm thick crushed gravel base course, a 10cm thick bituminous binder

and a 6cm thick asphalt concrete pavement. The coastal protection component involves construction of

28 groynes, 80 m to 120 m long, and in areas of major challenges, sand pre-loads in cells (compartments),

defined by two successive groynes. These groynes complement the 9 existing groynes, out of which

were installed in 2012-2013 as part of the WAEMU regional programme against coastal erosion.

Table 2.2 – Alternatives Explored and Reasons for Rejection Alternatives explored and

reasons for rejection

Brief description

Reasons for rejection

Maintenance of the road in

its current specifications

Road with a new platform of nine (9)

meters and a carriageway in 1x2 lanes

with a surface coating covering six (6)

meters and two shoulders of 1.5 meters

on each side, with a pavement width of

1x2 lanes

Theoretical capacity of low pavement

(about 1,800 UVP /day)

Phenomena saturation to specific hours of

the day;

Low pavement structure not corresponding

to the increase in traffic

Construction of 2

breakwaters (a 1,200 m and

another 900 m) east of the

port,

The breakwaters will be integrated

into the existing reef, land side, where

they are located; the dimensions of the

rock vary between 1 to 200 kg in base

layer 1 to 3 tons in intermediate layer,

8-10 tons of shell land side, 4 to 6 tons

of shell sea side.

With the holding of riprap levelled on the

beach rock, there are risks of alteration and

wear of beach-rock that may lead eventually

to destabilizing the structure or even its

destruction

Difficulties in execution of works, high

implementation costs

Rockfill needs of large caliber,

Problem of water quality in areas located

behind the structures.

2.3 Project Type

The project was designed as a multinational autonomous operation. The donors’ interventions in

transport and/or maritime infrastructure in Benin and Togo are generally done through this type of

operation (investment project). The project funds will be disbursed for well-defined and specific

investments. Thus, the project adopts the most suitable approach to the intervention of the Bank in this

operation.

5

2.4 Project Cost and Financing Arrangements

Cost estimates

2.4.1 The total project cost for Togo and Benin (excluding taxes and custom duties), including

physical contingencies (10%) and financial contingencies (5.03%), is estimated at UA 134.341 million,

or nearly CFAF 110.49 billion at prevailing rate of August 2016 1UA = CFAF 822.459. The estimated

cost of the project works was done on the basis of the APS/APD studies updated in March 2016 and cost

of recent similar work contracts or those being executed in both countries. The base cost excluding

physical contingencies and financial contingencies by component is summarized below:

Table 2.3 - Summary of Cost Estimates by Project Component

Component CFAF Billion UA Million

F.E. L.C. Total F.E. L.C. Total

1. Road Works 38.718 11.714 50.433 47.076 14.243 61.319

2. Coastal Protection Works 26.093 6.683 32.916 31.726 8.296 40.022

3. Ancilllary Works 0.826 3.231 4.057 1.004 3.928 4.932

4. Transport Facilitation and Transit 2.066 0.564 2.630 2.512 0.686 3.198

5. Institutional support and road

studies 1.810 1.562 3.373 2.201 1.899 4.101

6. Project Management and

Monitoring 0.930 1.466 2.396 1.131 1.783 2.914

Base Cost 70.443 25.361 95.804 85.650 30.835 116.485

Physical Contingencies 6.877 2.458 9.335 8.361 2.989 11.350

Financial Contingencies 3.941 1.409 5.350 4.792 1.713 6.505

Total, ETCD 81.262 29.228 110.490 98.803 35.537 134,341

Table 2.3bis - Summary of Cost Estimates by Component and by Country

Component

Togo Benin Total

CFAF Billion UA Million CFAF Billion UA Million CFAF

Billion UA Million

1. Road Works 50.433 61.319 0.00 0.00 50.433 61.319

2. Coastal Protection Works 31.516 38.320 1.40 1.702 32.916 40.022

3. Ancillary Works 4.057 4.932 0.00 0.00 4.057 4.932

4. Transport Facilitation and Transit 2.630 3.198 0.00 0.00 2.630 3.198

5. Institutional Support and Road

Studies 2.368 2.879 1.005 1.221 3.373 4.101

6. Project Management and

Monitoring 2.346 2.853 0.05 0.061 2.396 2.914

Base Cost 93.350 113.501 2.455 2.984 95.804 116.485

Physical Contingencies 9.335 11.350 0.25 0.00 9.335 11.350

Financial Contingencies 5.350 6.505 0.141 0.00 5.350 6.505

Total Cost ETCD 108.035 131.356 2.455 2.984 110.490 134.341

2.4.2 The cost by expenditure category of the project is detailed in Annex (B2). It is summarized in

Table 2.4 below.

6

Table 2.4 - Summary of Cost Estimates by Expenditure Category

Expenditure Category

Togo Benin Total

In Billion

FCFA

In UA

Million CFAF Billion UA Million CFAF Billion

UA

Million

1. Works 81.629 98.886 0.00 0.00 81.629 98.886

2. Services 7.614 9.258 2.225 2.705 9.839 11.962

3. Operations 1.306 1.1588 0.00 0.00 1.306 1.588

4. Goods/Equipment 3.100 3.769 0.230 0.280 3.330 4.049

Base Cost 93.350 113.501 2.455 2.984 95.804 116.485

Physical Contingencies 9.335 11.350 0.00 0.00 9.335 11.350

Financial Contingencies 5.350 6.505 0.00 0.00 5.350 6.505

Total Cost Without

Taxes /Customs Duties 108.035 131.356 2.455 2.984 110.490 134.341

Financing Plan

2.4.3 The project is jointly financed by the ADF, the Islamic Development Bank (IsDB), the

European Union (EU), the West African Development Bank (BOAD), the Global Environment Facility

(GEF), WAEMU, and the Government of Togo for an estimated cost of UA 134.341 million. As the

lead financier of this project, the Bank introduced and strongly supported the project with donors

including the IsDB, EU, GEF and BOAD. The IsDB and WAEMU will finance the project in parallel,

while the BOAD, GEF, and the EU funding will be jointly provided with the ADF/TAF. The BOAD,

GEF and the EU will follow the ADF rules and procedures. The financing plan of components by project

source is presented in Table 2.5 below. For Togo, the national counterpart contribution, estimated at

1.6% of the total project cost has been reduced to a minimum (to cover only the non-eligible expenditure

for ADF financing, including the costs of compensation and resettlement of PAP and project

coordination) and in accordance with the provisions of the Policy on eligible expenditure for funding

from the Bank Group, dated 19 March 2008 (see Annex B.2).

Table 2.5 - Source of Financing of the Project Components in UA Million

Components

ADF/TAF

FEM WAEMU

EU

TOGO IDB BOAD TOTAL TOGO BENIN TOTAL TOGO BENIN TOTAL

Road Works 19.203 0.000 19.203 0.000 0.000 9.631 0.000 9.63 1.806 21.271 9.408 61.319

Coastal Protection Works 0.000 0.000 0.000 2.714 0.000 0.000 1.702 1.70 0.000 35.605 0.000 40.022

Ancillary Works 2.695 0.000 2.695 0.857 0.000 0.000 0.000 0.00 0.000 1,380 0,000 4.932

Transport Facilitation and Transit 0.243 0.000 0.243 0.000 0.523 2.432 0.000 2.43 0,000 0,000 0,000 3.198

Institutional Support and Road

Studies 0.912 0.942 1.854 1.967 0.000 0.000 0.280 0.28 0,000 0,000 0,000 4.101

Project Management 1.409 0.061 1.470 0.000 0.304 0.000 0.000 0.00 0,000 0,383 0,757 2.914

Total Base Costs 24.46 1.00 25.47 5.54 0.83 12.06 1.98 14.04 1,806 58,64 10,165 116.485

Total Cost Without Taxes

/Customs Duties 28.31 1.00 29.31 6.41 0.96 13.96 1.98 15.94 2,09 67,86 11,76 134.341

Percentage 21.82% 4.77% 0.71% 11.87% 1.56% 50.52% 8.76% 100.00%

7

2.4.4 Bank financing totaling UA 29.31 million represents 21.82% of the project cost net of taxes

and customs duties, and includes: (i) an ADF loan of UA 1 million to the Republic of Benin; (ii) an ADF

loan of UA 9 million and a TAF loan of UA 18.35 million, an ADF grant of UA 0.93 million and TAF

grant of 0.03 million to the Republic of Togo. Regarding the EU contribution to the project in the amount

of 20 million Euros (17.5 million Euros for Togo and 2.5 million for Benin), it will be made through

"the Investment Facility for Africa" recently set up to provide mix resources in the form of a grant to

complete the financing of regional integration projects. The GEF provides a grant of approximately US

$ 8.9 million (UA 6.41 million) to the environmental component of the project in Togo. During the

evaluation mission, the dialogue between BOAD, the Bank and the Government of Togo allowed the

completion of additional financing of CFAF 9.675 billion by BOAD using virtually full indicative

allocation in 2017 for concessional loan of CFAF 10 billion. The WAEMU will finance as a grant

component, part of the transport facilitation component and the entire operation of the Joint Technical

Committee (JTC).

2.4.5 The expenditure schedule by sources of financing and by project component are detailed in

Annex B2.

2.5 Project’s Target Area and Beneficiaries

2.5.1 The area of influence of the Abidjan-Lagos corridor spans the West African coastal as well as

the neighbouring landlocked countries who rely on the ports along this corridor. Therefore, in terms of

trade and regional integration, the expanded project area extends beyond Côte d’Ivoire, Ghana, Togo,

Benin, Nigeria, Burkina Faso, Mali and Niger, representing about 240 million inhabitants. However, the

project being carried out in phases, the area affected by Phase II (this project) is mainly southern Benin

and southern Togo. The project’s direct impact area passes through the Togolese prefectures of the Gulf

and lakes (chief towns being Lome and Aneho respectively) with their total population estimated at

1,742,431 inhabitants, of which over 51.4% are women.

2.5.2 The main project beneficiaries are the people living on the coast bordering Benin and Togo

characterized by: (i) a high density of population, (ii) a high concentration of economic activities (over

90% of companies), provided with many facilities (port, airport, formal or informal tourist development,

industries, parks for sales of used cars, plantations) under the framework of unplanned urbanization. The

implementation of the component on coastal protection will help preserve lives and socio-economic

activities in the coastal area. This will ensure sustainable incomes and food production for the population

of the area of influence and reduce poverty, manifested by low and insecure income, food shortages, low

levels of education and low life expectancy. An income generation programme (IGP) for women

extracting sea gravels will strengthen the resilience of the said women and youth to climate change while

promoting the eradication of sea sand extraction phenomenon which is very harmful to the environment.

2.5.3 Regarding the road component, the project will directly benefit transit users as well as 2.5

million people (1.5 million in Benin and 1 million in Togo) living in the area between Lomé and

Cotonou. It will contribute to the reduction of poverty in the project area and improve the living

conditions of the beneficiaries by reducing transport costs and improving accessibility. Farmers and

traders who through the opening up of production areas and new facilities offered by flow of goods, will

benefit from the new road and related facilities. Finally it will foster increased trade and strengthened

cooperation among ECOWAS countries in general and between Benin and Togo in particular. The

project will have a positive impact on women and young people by improving their access to socio-

economic activities and the creation of more formal and better paid jobs.

8

2.6 Participatory Process for Project Design and Implementation.

2.6.1 Both in the technical, economic, environmental and social feasibility studies and during the

project appraisal and preparation mission, participatory meetings were organized in the PIA to take into

account the beneficiaries’ needs and concerns of key stakeholders in the project. Concerns focused

mainly on the safety of the Lome-Cotonou highway, socio-economic infrastructure to be rehabilitated

under the project and especially the human and economic losses caused by the advance of the sea. These

meetings were organized both in Togo and Benin. They were attended by representatives of various

project stakeholders. These include: services of ministries and public agencies involved in the transport

sector, local residents, civil society, and local and village authorities. The various meetings made it

possible to: (i) gather information and data on the transport sector, cross-border trade and problems

related to climate change and coastal erosion; (ii) collect information on donor interventions to avoid

duplication and enhance coordination; and (iii) define the components and main activities of the project.

The project being a multi-donor type, its preparation and appraisal were carried out jointly by ADB,

IsDB, BOAD, WAEMU, the EIB and the EU. During its implementation, the various social partners and

key stakeholders will be involved through consultation, training and awareness campaigns.

2.7 Bank Group Experience, Lessons Reflected in Project Design

2.7.1 The Bank’s active portfolio in Togo comprises seven operations for a total net commitment of

UA 99.9 million. This portfolio includes five national operations for a financing volume amounting to

UA 24.6 million (25%) and two multilateral operations for an amount of UA 75.3 million (75%). The

sectoral distribution of the portfolio reflects the predominance of transport infrastructure with

approximately 75% of operations, followed by the social sector (19%), economic and financial

governance (5%) and water and sanitation sector (1%).

2.7.2 The overall performance of the Bank’s portfolio in Togo is satisfactory (see Annex 3). The

Bank's interventions helped to promote economic and social development by improving road and port

infrastructure, allowing the country to play its role of transit to the countries of the sub-region. The

Bank’s support enabled the preparation of the transport sector development strategy. The ongoing

dialogue with the Government of Togo on the sector has actively contributed to the establishment of one

stop at the port of Lomé, road maintenance reforms and removal of checkpoints on the Lomé-Cinkansé

highway. Similarly, in Benin, the portfolio's overall performance is satisfactory, benefiting from the

presence of the Bank in Benin and TGFO monitoring. Progress has been made in the implementation of

the action plan for improving the 2014 portfolio including stakeholder involvement structures and

implementation by the Bank fiduciary clinics in the project area. But efforts are needed to reduce long

delays in preparation and approval of national contracts, timely mobilization of national counterpart

funds for projects and transmission of audit reports. In addition, Phase 1 of the project which focuses on

road works on the Benin side of the Lome-Cotonou highway (2x2 lanes of Pahou-Ouidah section of

18.75 km and rehabilitation of Ouidah-Hillacondji section of 58.75 km) and the construction of a One

Stop Border Post (Sanvee Condji-Togo and Hillacondji-Benin) has experienced implementation delays

and has just been the subject of extension of the deadline for disbursement. Among the key lessons

learned from Phase 1 of the project and operations in the two countries, past and current operations,

which were included in this project can be mentioned: (i) developing comprehensive technical studies

conducted and/or updated in 2016 to avoid major resizing of projects during implementation; (ii) the

early introduction into the 2017 financial law of the counterpart to overcome the difficulty of mobilizing

the national counterpart for financing the projects; (iii) accurate assessment of works influence in order

to ensure timely release so as to avoid delays and corporate claims; iv) the existence of management

committees by beneficiaries to ensure the maintenance of related infrastructure.

9

2.8 Key Performance Indicators

2.8.1 In relation to the components and activities, the main achievements of this project are the

following: (i) 400 unemployed young people (35% girls) transformed into skilled laborers in BT and

100 EIG trained, (ii) 400 women beneficiaries from AGR support (post-catch of fish and market

gardening), (iii) 10 unemployed engineers placed on the site accommodation of businesses and control

offices responsible for road works, (iv) 5000 people (50% women) sensitized on HIV/AIDS, road safety

and environmental protection, (v) 28 groynes built on the Togolese coast and refilling 920 000 m3 with

sand in compartments defined by the groynes, (iv) 30 km of Aného-Avépozo road built into 2x2 lanes,

(vii) equipment provided and studies conducted to operationalize the One Stop Border Post (OSBP) of

Sanvee Condji-Hillacondji; and (vii) various support provided to the MIT and implementing agencies

of the two countries.

2.8.2 These various achievements will result in changes and significant impact in the Project Impact

Area (PIA). These include: (i) the creation of 75 000 direct jobs man/month (20% for women, (ii) 30%

increase in monetary income, (iii) slow-down of the coastal erosion phenomenon on more than 13 km

of the Togolese coast and reducing coastline erosion rate, (iv) improving mobility and the level of traffic

on the Avépozo-Aného highway, (v) improving the level of knowledge of the population on HIV/AIDS,

road safety and environmental protection, and (vi) reduction in waiting time and travel to the Togo and

Benin border. In order to assess the level of achievement of the main development objectives of the

project, the results and impact indicators will be monitored. Furthermore, the implementation

performance indicators will be established and collected, mainly for: (i) deadlines for meeting the

conditions precedent to first disbursement, (ii) procurement deadlines; (iii) project implementation

deadlines; and (iv) trend in disbursement rates depending on the expenditure schedule.

III. PROJECT FEASIBILITY

3.1 Economic and Financial Performance

3.1.1 The economic analysis was conducted on the basis of cost-benefit analysis between the

"without" and "with" project situations over 20 years. It includes road and coastal protection aspects of

the project. The project benefits are broadly estimated from savings on vehicle operating costs (VOC)

and time savings from traffic on the road section, for the road component, and for the coastal component,

from economic losses saved by the works of coastal protection and savings on relocation costs of

socioeconomic infrastructure and vulnerable populations likely to be affected by coastal erosion, and the

costs of a bypass road that would be built if the current road is cut.

3.1.2 The traffic projection during the road life (estimated at 20 years), based on the annual GDP

average growth rate (Gross Domestic Product), population and income, the updated traffic study in 2016,

was 6.1% for passenger traffic, and 3.0% for freight traffic. These data enables to estimate the overall

traffic at 14,625 vehicles per day in 2020 and 44,243 vehicles per day in 2039 and the attendant benefits

(savings on VOC and travel time gains).

3.1.3 The economic analysis indicates that the project is profitable with an Internal Rate of Return

(IRR) of 20.3% and a Net Present Value (NPV) of CFAF 54.278 billion, since the IRR is higher than

the discount rate equal to 12% and the NPV is positive. The sensitivity analysis shows that the overall

profitability of the project is not affected either by changes in investment costs (10% increase), or by

changes in benefits (10% decrease), nor the combined effect of these two changes. The summary of the

economic analysis is presented in Table 3.1 below and details are given in Annex (B7).

10

Table 3.1- Economic Analysis Summary

Economic Rate of Return (EIRR) of the project in % 20.3%

Net Present Value (NPV) in CFAF Billion 54.278

Sensitivity of EIRR (combination of 10% cost increase and 10% reduction in

benefits) 17.3%

Net Present Value (NPV) in Billion FCFA 35.732

Discount Rate 12%

3.2 Environmental and Social Impacts

Environment

In Togo

3.2.1 The project is classified as environmental and social category 1 in accordance with the

environmental procedures of the Bank. The ESIA and the Comprehensive Resettlement Plan (CRP) were

developed in 2012 for the road, and in 2013 for coastal protection works. The ESIA of coastal protection

works was updated in April 2016 with funding from the Bank. The CRP for the road component of the

project was updated in August 2016. It considers the optimization of the transverse profile of the road

and the extension of its linear 1.5km to Aneho entry. The road component of the project holds a

certificate of environmental acceptability of November 2014 and in addition to the said CRP, it has been

reintroduced to ANGEL/MERF for renewal of the road component acceptability certificate. Regarding

coastal protection component, the updated ESIA has been disseminated in the country and a certificate

of environmental acceptability by MERF was obtained in September 2016. The CRP has been

disseminated and was published in the Official Journal of July 2012. The summaries of the ESIA/ESMP

and CRP were published in August 2016 on the Bank’s website.

3.2.2 The main negative impacts related to road sub-project works, implemented within its present

influence and extended transversely, shall be strictly limited to the road sector which shelters no

archaeological or flora and fauna enjoying special protection status or ranking. The work on coastal

protection works are carried out strictly along coastline with the public maritime domain. They consist

mainly in building groynes, reloading sand and aiming at counteracting coastal erosion and stabilizing

the Togolese coastline. The coastal protection sub-project is considered as major climate change

adaptation measure and constitutes the most significant positive environmental impact in the area.

Negative impacts caused by the project components are manageable. Recommended measures to reduce

or eliminate negative impacts are appropriate and positive impacts envisaged both in terms of economic,

social and security are considerable, especially as regards the resilience to coastal erosion.

3.2.3 ESIA/ESMP will enable to obtain all the relevant information for action and activity while

defining the responsibilities of all stakeholders in the project’s implementation process. The DGTP

works in partnership with the Environment Directorate (ED), through the Unit entrusted with the project

implementation (USEP), and that acts as the Project Owner. The USEP has been strengthened with 02

environmentalists from DE/MERF, thereby making it possible to deal with environmental issues.

Environmental measures are included in the specifications and the DQE, both for the road and coastal

protection components. This will directly or indirectly mitigate the negative impacts on all the

environmental and social components of project-related activities. Environmental and social mitigation

measures concerning works, supervision, monitoring and resettlement, are included in the ESMP. The

ESMP cost including compensation amounted to CFAF 2.980 billion. The ESMP Matrix including

stakeholders’ roles and responsibilities, as well as indicators and costs are reflected in Annex B8.

11

In Benin

3.2.4 The selected components are (i) comprehensive studies of road sections (Adjaha-Athiémé road

study and some ramps, study on development of service roads between Godomey and Ouidah/Ouidah-

Hillacondji dual carriageway study, and access roads to Ouidah tourist attractions), and (ii) the technical

and economic feasibility study of Benin coastal area protection, including the coastline bordering the

Community territory housing the OSBP. These studies include Environmental and Social Impact studies

matching their Environmental and Social Management Plan (ESIA/ESMP), as well as resettlement plans

as needed. A strategic environmental assessment is recommended prior to the ESIA on specific coastal

protection studies, coherent whole. The TORs are in compliance with the prescribed Beninese National

Operational procedures, and the Bank’s Operational Safeguards and procedures.

Climate Change

3.2.5 The project is situated at the Togolese lake and sea coastal area, at distances between 100 and

200 m. It takes into account and includes adaptation measures mainly related to coastal protection works

and resilience to these climate changes. It is therefore classified as category 1 in conformity with the

Bank’s SSI.

3.2.6 The "no project" option whereby the protections should not be implemented for any reason,

would surely lead to the alterations to coastlines by 50 to 100 meters in 10 years, with the following

consequences: (i) third breakdown of the Lomé-Cotonou road (rehabilitated or not) as several segments

are within less than 500 meters from the coastline. The risks without coastal protection are divided into:

(ii) the disappearance of several villages, infrastructure and lands leading to an economic disaster for the

country. Further postponing the implementation of coastal protection would certainly result in higher

costs of intervention due to the rising prices of materials and their implementation.

3.2.7 The technical design of coastal protection works includes: (i) construction of 28 groynes

intended to slow down alterations to coastlines, (ii) refilling with sand compartments thus formed, and

restoring coastal beaches. These structural works may help stabilize the coastline. For the road

component, technical design includes: (i) the extension of the discharge structures and their replacement

and the longitudinal gutters, (ii) in compensation for the felling of trees (185 eucalyptus and 600 teaks),

there would be planting of nearly 14,700 trees (alignment, shading and maintenance of land contributing

to slowing down soil erosions).

3.2.8 The project will as such, contribute to the mitigation of climate change by; (i) carbon

sequestration, (ii) reduction of greenhouse gas (GHG) emissions in the atmosphere, due to the flow of

traffic. The main measures contributing to adapting the project to climate change are (iii) setting it out

of water and adapting it to the increased flooding phenomenon, and (iv) slowing coastal erosion and

stabilization of its shore.

Gender and Activities for Women

3.2.9 In the direct PIA, women account for almost over 51% of the total population. In 2015, the

incidence of poverty was lower in the category of households headed by men than in those headed by

women. It was actually 54.6% in the first group and 57.5% in the second group. Moreover, the poverty

of households headed by a man fell between 2011 and 2015 (from 59.6% to 54.6%), while that headed

by women increased over the same period from 54.3% to 57.5%. In the area, fishing and market

gardening activities particularly occupy women who represent about 60% of stakeholders in the fisheries

sector (especially in post-catch fish activity) and 53% of market gardeners. These fishing and market

gardening sectors severely suffer the adverse effects of climate change, with the consequences of floods

and especially erosion. Indeed, socio-economic and environmental consequences of coastline decline

reaching about 15m per year in the PIA will be disastrous for women including the disappearance of

12

community infrastructure, considerable loss of land and plantations and halting their economic activities.

Building coastal protection structures will enable women in the PIA to increase their resilience to climate

change.

3.2.10 Natural erosion is exacerbated by the persistent sea sand and gravel activity despite its

prohibition in 2011, in the PIA and all the Togolese coast. Mainly carried out by women and young

people, the activity relies on a gendered division of labor in general, often young men extract the water

aggregate and resell them in the form of bunch to women organized for sifting and commercialization.

To support farmers retraining, a conversion programme will be implemented by FAO in the framework

of this project.

3.2.11 The project includes other components to enhance the welfare and economic empowerment of

women, youth and other vulnerable people. These include: (i) developing feeder roads to facilitate the

supply of inputs and marketing of products; (ii) rehabilitation of social infrastructure (schools, health

centers) and their access roads; (iii) the construction of commercial infrastructure to allow for better

development and marketing of products; and (iv) the construction of a socio-educational complex for

promoting the social integration of vulnerable groups (disabled, young school dropouts, etc.).

Social

3.2.12 According to Togo's poverty profile (INSEED, April 2016), the incidence of poverty in Togo

moved from 61.7% in 2006 to 58.7% in 2011 and 55.1% in 2015 (INSEED, 2016). Analysis by area

shows that over the three years, poverty has been higher in rural areas than in other areas. It is observed

that in 2015, the incidence of poverty was 68.7% in rural areas while it was 37.9% in other urban areas

and 34.8% in Lome. Unlike the rest of the country, the Greater Lome recorded a significant increase in

poverty with an incidence rising from 28.5% in 2011 to 34.8% in 2015. This trend has been much the

same regarding the direct PIA of this project.

3.2.13 In order to enhance the socio-economic impact of this project, in addition to road infrastructure

works and coastal protection, work-related facilities and specific activities for women have been

planned. Following the needs expressed by the populations of the PIA, the following activities were

considered: (i) IGA retraining programme for women and youth involved in the extraction of sea sand

and gravel; (ii) basic socio-economic infrastructure (schools, health centers), (iii) Multifunctional Centre

for Youth in Aneho, (iv) parking fence for heavy trucks in Aného including 2 latrine blocks, and 1

equipped borehole; (v) Construction/Rehabilitation of commercial facilities and shops for women in

Baguida and Agbodrafo; and (vi) Support for youth employability with the involvement of CERFER

through 45 days modular training.

3.2.14 In fact, the realization of various actions planned for this project will have a significant impact

in the PIA. These include: (i) creation of 75 000 m/month direct jobs, including 35% for young people

and 20% for women, (ii) reduction of travel time, (iii) greater mobility and improved access to basic

social infrastructure, (iv) slowing the phenomenon of coastal erosion over 13 km from the Togolese

coast, and reduction rate of coastline decline, and (v) improving the knowledge level of the population

on HIV/AIDS, road safety and environmental protection.

Support to youth employment

3.2.15 In accordance with the Bank strategy for job creation in regional member countries (adopted

this year), two activities were selected for this project: (i) support for the employability of young

unemployed graduates and (ii) support for the employability of unemployed young people without

qualifications. In the first case, a provision will be included in the tender documents for works and

supervision for recruitment, on call for applications, of 10 unemployed graduates (civil engineering,

geotechnical and environmental professionals). These young people will be included in staff recruited

by companies and control offices. They will be residing in the site accommodations. They will produce

13

a quarterly activity report to be validated by the company or control office, before onward transmission

to the project executing agency. This report will indicate the activities they have actually participated in

during the quarter. These young graduates will be mobilized over the construction period and will be

funded by the project.

3.2.16 Regarding the unemployed youth, it is proposed to continue the experiment started with the

CERFER through the Togo/Burkina Project. It involves putting on the labor market, skilled workers

from the 45 days modular training. Learning from the experience gained from the Togo/Burkina Project

(see details in the technical annex), it is planned to organize the youth trained in CERFER, into Economic

Interest Groups (EIG) so that they can individually settle within public works. The training ends with a

school yard for paving of 700 linear meters of track laid between the market developed at Baguida, and

that leading to the Baguida Monument. To make these EIG fully operational, the involvement of the

Delegation for the Organization of the Informal Sector (DOSI) is planned to carry out three activities:

(i) training of the young for the organization and management of an EIG, (ii) supporting the setting up

of these EIGs, and (iii) support for the formalization of the EIG.

Resettlement of Displaced Populations

3.2.17 The project road component provides for a lateral extension of its influence up to a-25m

platform. It generates, according to the census updated in August 2016: (i) the destruction of more than

57 buildings, (ii) economic loss of 543 managers of commercial activities; (iii) the movement of 21

fetishes, (iv) the displacement of 204 tombs and 01 sanctuary consisting of a convent and 16 fetishes;

(v) the destruction of 21market gardening plots and 20 horticultural plots. It is noteworthy that 10 people

affected by the project (PAP) will be moved and relocated in the same locality, within Aneho urban area.

The coastal protection component is located entirely in the public domain of the coast and involves no

resettlement.

3.2.18 The number of PAP being 453, a Full Resettlement Plan has been prepared by the Togolese

Government. The level of compensation amounted to CFAF 1,485,627,000 for which funds are drawn

from the Togolese counterpart and will be budgeted in the Finance Act for the year 2017. The effective

payment of these damages and compensation constitutes a conditionality for commencement of work on

the relevant sections.

IV. PROJECT IMPLEMENTATION AND MONITORING AND EVALUATION

4.1 Project Implementation Arrangements

Executing Agency

4.1.1 The transport facilitation component being an activity that transcends individual states, Togo

and Benin agreed to delegate, as was done in Phase I, the monitoring and management of the transport

facilitation component to the WAEMU Commission. This Delegation of Project Management has

already been endorsed through an MOU signed between the two states and the WAEMU Commission

as part of Phase 1 of the project. To ensure proper coordination of project activities, WAEMU plans to

continue to fund the operation of the Joint Technical Committee (JTC) comprising stakeholders from

both countries and WAEMU.

4.1.2 Regarding the other project activities, monitoring of the project will build on the institutional

mechanisms already in place in each country. For Benin, within the DGTP, monitoring of road studies

will be provided by the management unit that already ensures the implementation of 3 ongoing road

projects. The follow-up study on technical and economic feasibility of the Resilience of Infrastructure

Building Project in Coastal Area faced with climate change in Benin, will be conducted by the Ministry

of Quality of Life and Climate Change through the Project Unit for the Protection of the Coast between

Hillacondji and Grand-Popo.

14

4.1.3 For Togo, the project executing agency will be the Ministry for Infrastructure, Transport, the

Environment and Forest Resources through the General Directorate of Public Works (DGTP) and the

Directorate of Environment (DE). Monitoring will be ensured by the Project Implementation Monitoring

Unit (USEP) to be set up within the General Directorate of Public Works (DGTP) with staff capacity

building from the Directorate of Environment (DE). It will be under the technical supervision of the

DGTP and DE. The composition of the USEP has already been endorsed through a ministerial decree.

Procurement Arrangements

4.1.4 Procurement of goods (including services other than consulting), works and consulting services

procurement financed by the Bank as part of the project, will be conducted in accordance with the

procurement framework for operations financed by the Bank Group, October 2015 edition and pursuant

to the provisions set out in the financing Agreement. Specifically, procurement will be done as follows:

In Togo: Using Togo’s procurement system (SPM): Methods and procurement procedures (MPA) as

part of Togo's procurement system including its laws and implementing decrees (Law No. 2009-013 of

30 June 2009 and the implementing decree No. 2009-277 / PR of 11 November 2009 on the procurement

code and its subsequent decrees and texts) using national bidding standard documents (DNSAO) or other

tender documents as approved during project negotiations for certain uncomplicated works and goods

contracts of low amounts provided for the project and generally available in Togo. Using procurement

methods and procedures of the Bank (BPM): The Bank’s BPM standards based on the relevant

standard bidding documents (SBD) for certain goods and works contracts of significant amount and

consultant services contracts for which the BPM are judged to be most appropriate. In Benin: Using

the Benin procurement system (SPM): Methods and procurement procedures (MPA) as part of

Benin's procurement system including its laws and implementing decrees (Law No. 2009 -02 of

07/08/2009 concerning public procurement code and various implementing regulations), using national

standard bidding documents (DNSAO) or other tender documents such as those approved during the

project negotiations for uncomplicated goods contract of low amounts provided for the project and

generally available in Benin. Using procurement methods and procedures of the Bank (BPM): The

Bank’s BPM standards based on the relevant standard bidding documents (SBD) for consultancy

services contracts judged to be the most appropriate. Risks assessment and procurement capacity

(ERCA): Risks assessment regarding the country, sector and project, as well as the capacity of the

executing agency (EA) for procurement was carried out for the project in each country and the results

were used to guide the decision on choice of procurement system (Borrower, Bank or Third party), used

for specific activities or set of similar activities in the project. Appropriate risk mitigation measures were

included in the PERCA plan of actions indicated in Para. B.5.9. of Annex B5.

Disbursement

4.1.5 The direct payment methods for contracts will be used for withdrawals in accordance with

rules and procedures of the Bank Disbursement Handbook.

Financial Management

4.1.6 Regarding Togo, assessing financial management capacity of the Ministry of Infrastructure and

Transportation (MIT), the project’s executing agency, recommended the establishment of a Monitoring

Unit for the Project Implementation (USEP) within the General Directorate of Public Works (DGTP).

This Directorate will be responsible for the financial management of the project. It includes: (i) a

coordinator; (ii) an assistant coordinator; (iii) an accountant (iv) a bookkeeper; (v) engineers; (vi)

enrironmentalists, all already officially appointed.

4.1.7 An accounting system will be implemented, including at least the following modules: a

budgetary accounting, general accounting, cost accounting. The USEP will keep the books and accounts

of the project in accordance with the principles of double-entry accrual accounting, taking into account

the specificities of development projects. For their bookkeeping, USEP possesses the TOMPRO

15

accounting software which should be upgraded through the acquisition of Tom2Pro. USEP will also

update the accounting and financial administration procedures manual that will provide detailed

procedures within the expenses management cycles (procurement procedures) for goods and services,

property (fixed assets, inventories, etc.) cash (scheduling, disbursement..), resource mobilization,

accounting, financial and budgetary, audit and internal control. The project will recruit a financial

management expert within the framework of technical assistance.

4.1.8 Regarding Benin, the Project Management Unit (PMU) established within the DGI has

experience in the implementation of projects financed by donors. The PMU does not yet have an

accounting service. Furthermore the PMU has neither an accounting software nor a manual on

accounting and financial administration procedures. Given the number of three (3) transport project

studies financed by the Bank, the mission accordingly decided on allocation of a national budget for an

accountant perfectly mastering the basis of the West African Accounting System (SYSCOA) and private

accounting.

External Audit

4.1.9 The financial audit will be conducted annually in each country by an independent firm on the

list of audit firms approved by the Bank. The audit firm will be recruited for a period of one year

depending on the quality of their services and for a maximum period of three years, based on the terms

of reference approved by the Bank. The audit reports should be submitted annually to the Bank latest

six months following the end of the audited year.

Implementation and Supervision Schedule

4.1.10 The implementation schedule of the project components is summarized at the beginning of this

report. This reflects in particular the relevant experience of the implementing agencies in managing the

works implementation deadlines and that of the Bank in the processing of requests falling within

previous similar projects. According to established forecasts, the project activities will begin upon

approval of the loan planned during the 4th quarter of 2016 and will be ended in December 2020 with

all its components. The loan closing date is December 31, 2021. At the Bank, the planned activities upon

approval of the loan will be subject to close monitoring in compliance with the schedule in Table 4.1

below.

4.2 Monitoring and Evaluation

4.2.1 The project’s implementation agencies already present and operational in the 2 countries

(DGTP), will monitor the implementation of all actions planned by component for this project. Half-

yearly reports will be produced and submitted to donors (IDB, BOAD, EU, GEF and ADB). In these

monitoring reports, the DGTP will take stock of the level of physical and financial implementation of

each project component with particular emphasis on the difficulties encountered and the recommended

solutions. These reports will also be discussed at the meetings of the Joint Technical Committee (JTC)

chaired by WAEMU.

4.2.2 Given that arrangements have been made for monitoring and evaluation of the socio-economic

impact of road projects financed by the Bank and initiated on the corridor (roundabout of Port of Lome

and Avépozo section, facilitation measures with the establishment of the OSBP at the border between

Togo and Benin, and Pahou-Hillacondji section in Benin), there will not be another mechanism for

evaluating the specific socio-economic impact on the Avépozo-Aného section because the facilitation

indicators are being monitored as part of Phase 1 of the project. Regarding coastal protection, the

Ministries of Environment of Benin and Togo have already set up systems to monitor coastal erosion.

However, the systems will be enhanced for Togo through the GEF funding to ensure that indicators other

than the evolution of the coastline are followed, and that the behaviors and the economic activities of

local communities advance toward increased sustainable management of the coastline.

16

4.2.3 Table 4.1 – Project Monitoring and Evaluation Schedule

Duration Stage Monitoring Activities/Feedback

Q4 2016 to Q1 2017 Approval and

effectiveness

Loan approval

General Information Note

Signature of loan agreements and grants

Project Launching mission

Loan and grants agreements effectiveness

Q1 2017 to Q4 2017 Procurement process

Recruitment - companies for road construction/coastal protection,

related facilities

Recruitment - offices for monitoring and supervision work, studies,

sensitization, IEC campaigns, technical audit, monitoring and

evaluation of coastal erosion

Recruitment audit firm to audit accounts

Waiver of conditions precedent to first disbursement (Bank/GVT)

Q3 2017 to Q1 2020 Project physical and

financial implementation Monitoring / supervision of the execution of works (Bank/Executing

Agency)

Q2 2020 to Q4 2020 Project completion

Joint preparation of project completion report (Bank/Executing

Agency)

4.3 Governance

4.3.1 Togo has enjoyed a peaceful socio-political climate since 2006, but continues to face pressures

related to electoral issues. Thus the Mo Ibrahim Index 2015 of 48.4/100 for governance in Togo is below

the African average (50.1) and the West African countries average (52.4). The 2015 Transparency

International report indicated that Togo won 19 positions from 126th to 107th out of 168 countries with

corruption perception index of (CPI) 32 on a scale of 0 (high corruption) to 100 (very low corruption).

Benin's political context is marked by the recent holding of various elections which changed the political

configuration of the country, with the election of a new President. This peaceful alternation of power in

the country following an election deemed transparent by observers, reflects a consolidation of

democracy and stability in Benin, thereby creating an enabling environment for growth.

4.3.2 Meeting the challenges to good governance in the transport sector include compliance with

deadlines and transparency in procurement, proper investment planning, infrastructure maintenance and

the elimination of obstacles to flow of traffic along the road corridors. Benin and Togo have also adopted

a new procurement code and set up regulatory and control bodies: Public Procurement Regulatory

Authority, National Directorate for Public Procurement Control, and Procurement Committees within

each ministry. Recent Bank evaluations highlighted the substantial progress made and acknowledged

that, in a comprehensive manner, the system and the national procurement procedures have become

much closer to international standards. Road databases and autonomous maintenance funding bodies

have also been created. ECOWAS and WAEMU established in 2005, the Abnormal Practices

Observatory (OPA), along the road corridors.

4.3.3 The project design also incorporates specific measures regarding governance and transparency

in procurement risk mitigation. In this context, the project provides technical assistance to the executing

agency. At first glance, the revised Bank procurement documents and the establishment of technical,

accounting, financial and procurement audits are complementary measures to ensure that resources are

used efficiently and for the intended purposes.

4.4 Sustainability

4.4.1 Infrastructure sustainability depends primarily on the quality of work performed. To ensure

compliance with quality standards during the construction phase, work supervision and monitoring will

17

be provided by consulting engineering firms selected among the most qualified, and familiar with similar

projects. Moreover, the technical solutions adopted took into account the volume and composition of

current and future traffic and geotechnical characteristics of the materials to be used. Finally, project

supervision by the Bank, as well as technical audits missions to be carried out by consultants will

contribute to a better technical monitoring of works implementation.

4.4.2 Regarding road maintenance, Togo has developed transport and road maintenance strategies,

and implemented the Autonomous Road Maintenance Financing Company (SAFER). SAFER have their

own resources accounting for 73% from royalties on petroleum products and 27% from toll revenues.

In 2016 the fund's resources are estimated at CFA 12 billion that fully cover maintenance requirements

estimated at about CFA 10 billion. For the year 2017, introduction of the road tax, a review of tolls and

the opening of two new toll booths are planned. This will bring SAFER resources to about CFA 25

billion and will enable it to cover over 60% of road network (routine and periodic) maintenance needs

estimated on average at CFA 38 billion per year. Great importance is attached to the maintenance of

regional corridors whose budget in 2016 represents approximately 40% of available resources. In

addition, multi-year maintenance contracts are underway for the two corridors to ensure a level of

acceptable and permanent services.

4.4.3 Concerning the application of WAEMU Regulation No. 14 on axle load control and gross

weight of vehicles to ensure road sustainability, the two countries conduct controls at ports and along

the road corridors to eliminate trucks overloading. Since June 2016, Togo has ranked ahead of the other

WAEMU countries with zero tolerance on overloading along its main highways which earned her the

official congratulations of WAEMU. Moreover, Togo has planned to carry out within the framework of

this project, a study to assess the impacts of overloaded heavy vehicles transporting goods on the road

infrastructure and on transport activities. This study will be a tool for decision-making within the context

of actions for the fight against overloading. It will also convince stakeholders including drivers and

transport operators on the harmful effects of overloading on their activities.

4.4.4 As for coastal protection infrastructure, maintenance is not expensive. It simply has to do with

biannual reloading with alveoli sand estimated at 100 million and periodic maintenance every 10 years.

The Togolese government has prepared, on the basis of the coastal vulnerability map developed in 2006,

a national programme for the fight against coastal erosion in 2008, and a National Action Plan for

Adaptation to Climate Change in 2009, which proposed urgent adaptation actions. As part of this project

it is also planned, a study for the establishment of a coastal management structure that will among other

functions, ensure the sustainability of coastal infrastructure.

4.5 Risk Management

4.5.1 The main risks related to the project implementation are: (i) delays in mobilizing counterpart

resources; (ii) increase in construction costs; (iii) Slow/delayed procurement, with the impact of a late

startup of works; and (iv) USEP human resource weaknesses, causing delays in the implementation and

coordination of implementation of the various project components. These risks will be mitigated by: (i)

minimization of the Government counterpart fund that has been reduced to minimum and should be

secured in a special account; (ii) cost estimates based on current markets unit prices, with inclusion of

physical contingencies and financial contingencies; (iii) good knowledge of Bank rules and procedures

for procurement by the DGTP and close monitoring by TGFO; and (iv) the strengthening of USEP in

human and material resources, as well as a technical assistance for the successful implementation of

this project.

4.6 Knowledge Management

4.6.1 Through its complexity, the project provides an excellent opportunity to improve knowledge

in the areas of transport facilitation and especially on coastal protection. The project includes

18

functionality studies on: i) the impact of Regulation No 14/2005/CM/WAEMU on the axle load of heavy

vehicles transporting goods; and the OSBP on the border between Benin and Togo. The important

knowledge management system within the framework of this project will identify the needs of coastal

protection infrastructure, awareness raising, information, education on erosion and climate change

especially in the monitoring process and business planning in coastal areas. The dissemination of this

knowledge will be done through the Bank's website, meetings, and other information-sharing

opportunities with different stakeholders in the sector.

V. LEGAL INSTRUMENT AND AUTHORITY

5.1 Legal Instrument

ADF/TSF/GEF financing agreements will be signed between the Borrowers: the Republic of Benin and

the Togolese Republic on the one hand, and the African Development Fund, on the other.

5.2 Conditions Associated with Bank Intervention

A. Conditions Precedent to Effectiveness

Effectiveness of the loan agreements will be subject to the fulfilment, by the Borrowers, of the conditions

specified in Section 12.01 of the General Conditions Applicable to Loan and Guarantee Agreements and

the African Development Fund.

B. Conditions Precedent to the First Disbursement of the ADF/TSF Loans Resources to Togo

In addition to the effectiveness of these agreements, the first disbursement of the loan resources shall be

subject to fulfilment, by the Borrowers and to the satisfaction of the Bank, of the following conditions:

(i) Provide evidence to the Bank of the opening of a special account in a bank acceptable to

the Fund replenished with an amount equivalent to the national counterpart funds for the

first period (semester).

C. Other Conditions

ADF/TSF Loans to Togo

The Borrower or the Recipient shall, to the satisfaction of the Fund:

(i) Provide , no later than the end of the first month of each semester, proof of replenishment

of the national counterpart account with the needs of the semester ;

(ii) Provide evidence, in form and substance acceptable to the Fund, that prior to

commencement of construction on any section of the civil works, all project affected

people (PAPs) with respect to such section would have been compensated in accordance

with the Full Resettlement Plan and the Bank’s rules on this matter, including the Bank’s

policy on involuntary resettlement.

D. Undertakings: The Borrowers undertake to:

(i) Implement the project and have it implemented by contractors in accordance with: (a)

the rules and procedures of the Fund; (b) national laws; (c) the recommendations,

requirements and procedures contained in the Environmental and Social Management

Plan (ESMP) of the project; et (d) submit semi-annual progress reports on the Project

ESMP and FRP, including if any failures and corrective actions taken or to be taken.

5.3 Compliance with Bank Policies

The project complies with all applicable Bank policies.

19

VI. RECOMMENDATIONS

Management recommends that the Boards of Directors approve the proposed ADF loan of UA 1 million

to the Republic of Benin and an ADF loan of UA 9million, a TSF loan of UA 18.35 million, an ADF

grant of UA 0.93 million, a TSF grant of UA0.03 million and a GEF grant of 8.93million US$ to the

Togolese Republic, as contributions towards the financing of the Lome-Cotonou road rehabilitation

(phase 2) and coastal protection project.

I

PPENDIX I: Benin: COMPARATIVE SOCIO-ECONOMIC INDICATORS

Year Benin Africa

Develo-

ping

Countries

Develo-

ped

Countries

Basic Indicators

Area ( '000 Km²) 2016 115 30,067 94,638 36,907Total Population (millions) 2016 11.2 1,214.4 3,010.9 1,407.8Urban Population (% of Total) 2016 44.4 40.1 41.6 80.6Population Density (per Km²) 2016 99.0 41.3 67.7 25.6GNI per Capita (US $) 2014 810 2 045 4 226 38 317Labor Force Participation *- Total (% ) 2016 71.7 65.6 63.9 60.3Labor Force Participation **- Female (% ) 2016 70.0 55.6 49.9 52.1Gender -Related Development Index Value 2007-2013 0.822 0.801 0.506 0.792Human Develop. Index (Rank among 187 countries) 2014 166 ... ... ...Popul. Living Below $ 1.90 a Day (% of Population) 2008-2013 53.1 42.7 14.9 ...

Demographic Indicators

Population Growth Rate - Total (% ) 2016 2.6 2.5 1.9 0.4Population Growth Rate - Urban (% ) 2016 3.7 3.6 2.9 0.8Population < 15 years (% ) 2016 41.9 40.9 28.0 17.2Population >= 65 years (% ) 2016 2.9 3.5 6.6 16.6Dependency Ratio (% ) 2016 81.2 79.9 52.9 51.2Sex Ratio (per 100 female) 2016 99.6 100.2 103.0 97.6Female Population 15-49 years (% of total population) 2016 24.1 24.0 25.7 22.8Life Expectancy at Birth - Total (years) 2016 60.0 61.5 66.2 79.4Life Expectancy at Birth - Female (years) 2016 61.4 63.0 68.0 82.4Crude Birth Rate (per 1,000) 2016 35.2 34.4 27.0 11.6Crude Death Rate (per 1,000) 2016 9.1 9.1 7.9 9.1Infant Mortality Rate (per 1,000) 2015 64.2 52.2 35.2 5.8Child Mortality Rate (per 1,000) 2015 99.5 75.5 47.3 6.8Total Fertility Rate (per woman) 2016 4.6 4.5 3.5 1.8Maternal Mortality Rate (per 100,000) 2015 405.0 495.0 238.0 10.0Women Using Contraception (% ) 2016 17.6 31.0 ... ...

Health & Nutrition Indicators

Physicians (per 100,000 people) 2004-2013 5.9 47.9 123.8 292.3Nurses and midwives (per 100,000 people) 2004-2013 77.1 135.4 220.0 859.8Births attended by Trained Health Personnel (% ) 2010-2015 77.2 53.2 68.5 ...Access to Safe Water (% of Population) 2015 77.9 71.6 89.3 99.5Healthy life expectancy at birth (years) 2013 52.5 54.0 57 68.0Access to Sanitation (% of Population) 2015 19.7 39.4 61.2 99.4Percent. of Adults (aged 15-49) Living with HIV/AIDS 2014 1.1 3.8 ... ...Incidence of Tuberculosis (per 100,000) 2014 61.0 245.9 160.0 21.0Child Immunization Against Tuberculosis (% ) 2014 88.0 84.1 90.0 ...Child Immunization Against Measles (% ) 2014 63.0 76.0 83.5 93.7Underweight Children (% of children under 5 years) 2010-2014 18.0 18.1 16.2 1.1Daily Calorie Supply per Capita 2011 2 594 2 621 2 335 3 503Public Expenditure on Health (as % of GDP) 2013 2.3 2.6 3.0 7.7

Education Indicators

Gross Enrolment Ratio (% )

Primary School - Total 2010-2015 125.6 100.5 104.7 102.4 Primary School - Female 2010-2015 119.9 97.1 102.9 102.2 Secondary School - Total 2010-2015 54.4 50.9 57.8 105.3 Secondary School - Female 2010-2015 43.9 48.5 55.7 105.3Primary School Female Teaching Staff (% of Total) 2010-2015 22.5 47.6 50.6 82.2Adult literacy Rate - Total (% ) 2010-2015 38.4 66.8 70.5 98.6Adult literacy Rate - Male (% ) 2010-2015 49.9 74.3 77.3 98.9Adult literacy Rate - Female (% ) 2010-2015 27.3 59.4 64.0 98.4Percentage of GDP Spent on Education 2010-2014 4.4 5.0 4.2 4.8

Environmental Indicators

Land Use (Arable Land as % of Total Land Area) 2013 23.9 8.6 11.9 9.4Agricultural Land (as % of land area) 2013 33.3 43.2 43.4 30.0Forest (As % of Land Area) 2013 39.1 23.3 28.0 34.5Per 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. * Labor force participation rate, total (% of total population ages 15+)

** Labor force participation rate, female (% of female population ages 15+)

August 2016

0102030405060708090

100

200

0

200

5

200

9

201

0

201

1

201

2

201

3

201

4

201

5

Infant Mortality Rate( Per 1000 )

Benin Afric a

0

500

1000

1500

2000

2500

200

0

200

5

200

8

200

9

201

0

201

1

201

2

201

3

201

4

GNI Per Capita US $

Benin Afric a

0.0

0.5

1.0

1.5

2.0

2.5

3.0

3.5

20

00

20

05

20

09

20

10

20

11

20

12

20

13

20

14

20

15

Population Growth Rate (%)

Benin Africa

01020304050607080

200

0

200

5

200

9

201

0

201

1

201

2

201

3

201

4

201

5

Life Expectancy at Birth (years)

Benin Afric a

II

APPENDIX Ibis: Togo: COMPARATIVE SOCIO-ECONOMIC INDICATORS

Year Togo Africa

Develo-

ping

Countries

Develo-

ped

Countries

Basic Indicators

Area ( '000 Km²) 2016 57 30,067 94,638 36,907Total Population (millions) 2016 7.5 1,214.4 3,010.9 1,407.8Urban Population (% of Total) 2016 39.7 40.1 41.6 80.6Population Density (per Km²) 2016 137.8 41.3 67.7 25.6GNI per Capita (US $) 2014 570 2 045 4 226 38 317Labor Force Participation *- Total (% ) 2016 80.9 65.6 63.9 60.3Labor Force Participation **- Female (% ) 2016 81.0 55.6 49.9 52.1Gender -Related Development Index Value 2007-2013 0.803 0.801 0.506 0.792Human Develop. Index (Rank among 187 countries) 2014 162 ... ... ...Popul. Living Below $ 1.90 a Day (% of Population) 2008-2013 54.2 42.7 14.9 ...

Demographic Indicators

Population Growth Rate - Total (% ) 2016 2.6 2.5 1.9 0.4Population Growth Rate - Urban (% ) 2016 3.8 3.6 2.9 0.8Population < 15 years (% ) 2016 42.1 40.9 28.0 17.2Population >= 65 years (% ) 2016 2.8 3.5 6.6 16.6Dependency Ratio (% ) 2016 81.3 79.9 52.9 51.2Sex Ratio (per 100 female) 2016 97.8 100.2 103.0 97.6Female Population 15-49 years (% of total population) 2016 24.5 24.0 25.7 22.8Life Expectancy at Birth - Total (years) 2016 60.6 61.5 66.2 79.4Life Expectancy at Birth - Female (years) 2016 61.3 63.0 68.0 82.4Crude Birth Rate (per 1,000) 2016 34.6 34.4 27.0 11.6Crude Death Rate (per 1,000) 2016 8.5 9.1 7.9 9.1Infant Mortality Rate (per 1,000) 2015 52.3 52.2 35.2 5.8Child Mortality Rate (per 1,000) 2015 78.4 75.5 47.3 6.8Total Fertility Rate (per woman) 2016 4.4 4.5 3.5 1.8Maternal Mortality Rate (per 100,000) 2015 368.0 495.0 238.0 10.0Women Using Contraception (% ) 2016 22.1 31.0 ... ...

Health & Nutrition Indicators

Physicians (per 100,000 people) 2004-2013 5.3 47.9 123.8 292.3Nurses and midwives (per 100,000 people) 2004-2013 27.4 135.4 220.0 859.8Births attended by Trained Health Personnel (% ) 2010-2015 44.6 53.2 68.5 ...Access to Safe Water (% of Population) 2015 63.1 71.6 89.3 99.5Healthy life expectancy at birth (years) 2013 52.8 54.0 57 68.0Access to Sanitation (% of Population) 2015 11.6 39.4 61.2 99.4Percent. of Adults (aged 15-49) Living with HIV/AIDS 2014 2.4 3.8 ... ...Incidence of Tuberculosis (per 100,000) 2014 58.0 245.9 160.0 21.0Child Immunization Against Tuberculosis (% ) 2014 97.0 84.1 90.0 ...Child Immunization Against Measles (% ) 2014 82.0 76.0 83.5 93.7Underweight Children (% of children under 5 years) 2010-2014 16.2 18.1 16.2 1.1Daily Calorie Supply per Capita 2011 2 366 2 621 2 335 3 503Public Expenditure on Health (as % of GDP) 2013 2.0 2.6 3.0 7.7

Education Indicators

Gross Enrolment Ratio (% )

Primary School - Total 2010-2015 125.1 100.5 104.7 102.4 Primary School - Female 2010-2015 121.4 97.1 102.9 102.2 Secondary School - Total 2010-2015 54.7 50.9 57.8 105.3 Secondary School - Female 2010-2015 30.5 48.5 55.7 105.3Primary School Female Teaching Staff (% of Total) 2010-2015 16.0 47.6 50.6 82.2Adult literacy Rate - Total (% ) 2010-2015 66.5 66.8 70.5 98.6Adult literacy Rate - Male (% ) 2010-2015 78.3 74.3 77.3 98.9Adult literacy Rate - Female (% ) 2010-2015 55.3 59.4 64.0 98.4Percentage of GDP Spent on Education 2010-2014 4.8 5.0 4.2 4.8

Environmental Indicators

Land Use (Arable Land as % of Total Land Area) 2013 48.7 8.6 11.9 9.4Agricultural Land (as % of land area) 2013 70.2 43.2 43.4 30.0Forest (As % of Land Area) 2013 4.2 23.3 28.0 34.5Per Capita CO2 Emissions (metric tons) 2012 0.2 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. * Labor force participation rate, total (% of total population ages 15+)

** Labor force participation rate, female (% of female population ages 15+)

August 2016

0102030405060708090

100

200

0

200

5

200

9

201

0

201

1

201

2

201

3

201

4

201

5

Infant Mortality Rate( Per 1000 )

Togo Africa

0

500

1000

1500

2000

2500

200

0

200

5

200

8

200

9

201

0

201

1

201

2

201

3

201

4

GNI Per Capita US $

Togo Africa

0.0

0.5

1.0

1.5

2.0

2.5

3.0

20

00

20

05

20

09

20

10

20

11

20

12

20

13

20

14

20

15

Population Growth Rate (%)

Togo Afric a

01020304050607080

200

0

200

5

200

9

201

0

201

1

201

2

201

3

201

4

201

5

Life Expectancy at Birth (years)

Togo Africa

III

Appendix II.A Table of ADB’s portfolio in Benin

Sect Project Title

%

Commit

Windo

w

Approval

Date

Disburs

Deadline

Date

Amount

Disbursed

Amount

Approved

Disburs

Rate (%)

Wa

ter &

Sa

nit

ati

on

Project to Support

Decentralization of Potable

Water Services, Sanitation and Hygiene AWF 10/29/2012 12/31/2016 746,925 831,054 89.88

Improved management of

faecal sludge of Grand Nokoué AWF 1/4/2013 3/31/2017 186,256 885,527 21.03

SONEB water loss reduction

project FSN 10/12/2015 6/30/2020 0 6,000,000 0.00

Sub totoal Water &

sanitation 3%

933,181

7,716,580 12.09

Tra

nsp

ort

Ndali-Nikki-Chicandou

Road Alsphalting Project ADF 4/7/2010 6/30/2017 7,019,331 11,500,000 61.04

Ndali-Nikki-Chicandou Road Alsphalting Project ADF 4/7/2010 6/30/2017 18,297,496 22,180,000 82.50

Parakou Urban Transport

Project ADF 9/19/2014 12/31/2020 4,623,499 23,800,000 19.43

Parakou Urban Transport Project GEF 9/19/2014 12/31/2020 0 1,336,013 0.00

Parakou Urban Transport

Project – supplementary loan ADF 6/3/2015 12/31/2020 0 11,530,000 0.00

Sub total Transport 55%

29,940,326

70,346,013 42.56

Ag

ric

ult

ure

Ouémé Valley Rural

Infrastructure Support Project ADF 9/30/2013 6/30/2016 275,696 444,000 62.09

Ouémé Valley Rural

Infrastructure Support

Project ADF 10/23/2013 12/31/2020 1,510,858 39,500,000 3.82

Ouémé Valley Rural

Infrastructure Support

Project ADF 10/23/2013 12/31/2020 43,890 530,000 8.28

Ouémé Valley Rural Infrastructure Support

Project GEF 10/23/2013 12/31/2020 449,450 5,167,291 8.70

Dairy and Meat Sector Support Project (PAFILAV) ADF 11/27/2008 12/30/2017 14,741,919 25,000,000 58.97

Support for food production

and strengthening resilience GAFSP 10/7/2015 12/31/2021 1,266,762 17,224,303 7.35

Sub-total Agriculture 34%

18,288,574

87,865,595 20.81

Total National 63%

49,162,080

165,928,188 29.63

Mu

ltin

ati

on

al

Benin /Togo: Lome-Cotonou Road Rehabilitation Project

and Transport Facilitation on

the Abidjan-Lagos Corridor - Phase 1 ADF 10/5/2011 9/30/2018 26,115,317 38,870,000 67.19

Benin /Togo: Lome-Cotonou

Road Rehabilitation Project and Transport Facilitation on

the Abidjan-Lagos Corridor

- Phase 1 ADF 10/5/2011 9/30/2018 21,357,387 34,270,000 62.32

BENIN - TOGO - GHANA Electric Interconnection

Project 6.65% ADF 4/4/2007 12/31/2017 6,470,576 17,390,000 37.21

Agency for Trade Insurance in Africa Membership

Programme 2% ADF 9/23/2015 12/31/2017 0 4,970,000 0.00

Total Multinational 37% 53,943,280 95,500,000 56.49

TOTAL 100% 103,105,36

0 261,428,188 39.44

IV

Appendice II.bis Table of ADB’s portfolio in Togo

Sect Project title Commitment

Share (%) Window

Approval

Date

Disbursement

Deadline

Date

Amount

disbursed

Amount

approved

Disburs

Rate

(%)

Wa

ter

an

d

Sa

nit

ati

on

Toilets for all

project in Sokode

and recovery of

faecal sludge AWF 4/19/2013 12/31/2017

261,041 950,929 27.45

Sub-total Water

and sanititation 0.82% 261,041 950,929 27.45

Ag

ric

PPF- agropoles

Development

Project in Togo ADF 2/29/2016 9/30/2017

0 995,000 0.00

Sub-total

Agriculture 0.86% 0 995,000 0.00

Go

v

Project to support

the mobilization of

resources and

institutional

capacity building

(PAMOCI) TSF 10/9/2014 6/30/2019

973,326 5,000,000 19.47

Project to support

tax governance

(PAGFI)

TSF 2/17/2016 12/31/2020 0 3,080,000 0.00

TSF 2/17/2016 12/31/2020 147,422 11,920,000 1.24

Sub-total

Governance 17.26% 1,120,747 20,000,000 5.60

So

cia

l

Project to support

the reconstruction

of markets and

traders in Kara and

Lome

TSF 1/22/2014 12/31/2018 383,771 1,930,000 19.88

ADF 1/22/2014 12/31/2018

470,011 1,650,000 28.49

FAPA-Project to

support the

reconstruction of

markets and

traders in Kara and

Lome FAPA 1/26/2015 12/31/2018

30,480 584,385 5.22

Project to support

employability and

the integration of

young people

TSF 10/28/2015 12/31/2020 94,865 6,670,000 1.42

FSN 10/28/2015 12/31/2020 654,655 6,500,000 10.07

TSF 10/28/2015 12/31/2020 0 1,330,000 0.00

Sub-total Social 16.11% 1,633,782 18,664,385 8.75

Total National 35.04% 3,015,570 40,610,314 7.43

V

Mu

ltin

ati

on

al

Tra

nsp

ort

Benin /Togo:

Lome-Cotonou

Road

Rehabilitation

Project - Phase 1 ADF 10/5/2011 9/30/2018

1,005,986 4,810,000 20.91

Togo / Burkina:

Community Road

Rehabilitation

Project CU9 and

transport

facilitation on the

Lomé-

Ouagadougou

Corridor

ADF 6/27/2012 12/31/2017 13,885,495 17,800,000 78.01

ADF 6/27/2012 12/31/2017 15,402,526 30,230,000 50.95

FAT 6/27/2012 12/31/2017 3,148,991 21,500,000 14.65

EU-AITF 2/23/2015 12/31/2017

567,340 938,891.79 60.43

Sub-total

Transport 64.96% 34,010,338 75,278,892 45.18

Total

multinational 64.96% 34,010,338 75,278,892 45.18

Total Public

Sector 100% 37,025,908 115,889,206 31.95

TOTAL

GENERAL 100% 37,025,908 115,889,206 31.95

VI

Appendix III Abidjan-Lagos Related Projects Financed by the Bank and other donors

Section Length

(km) Condition Proposed or on-going works

Funding

Agency

COTE D'IVOIRE

Abidjan - Grand Bassam 42.7 2 – lane, fair condition

Construction of a highway: widening from 2 to 6 lanes of the

existing road from Akwaba roundabout to Gonzaqueville/

horse riding center (11.2km) plus new alignment from the

horse riding center to Moossou- Comoe bridge: 17.45km.

China

Eximbank

and GoCI

Grand Bassam - Samo 30 2 – lane, fair condition Ongoing studies to turn this section into a highway. Studies

scheduled to be completed in June 2015. GoCI

Samo-Aboisso 36.4 2 – lane, fair condition

Aboisso-Noe 60.9 2 – lane, poor condition rehabilitation of the existing 2 lanes plus construction of a new

bridge at the border between Cote d'Ivoire and Ghana World Bank

GHANA

Elubo-Agona Junction 110 2-lane dual Under construction World Bank

Agona Junction -Takoradi 29.65 2-lane road, fair

condition Engineering studies have been completed for rehabilitation. DANIDA

Takoradi-Kasoa 193 2-lane road, fair

condition Prefeasibility studies for PPP completed. Feasibility studies to

be conducted. World Bank

Kasoa -Mallam 19 3-lane road, good

condition

Mallam -Tetteh Quarshie

(G.Bush highway) 14

3-lane dual, Recently

rehabilitated Completed MCC

Accra Motorway - Tema 19 2-lane dual carriageway,

fair condition

Discussions underway for possible PPP arrangement to

develop into 3-lane dual carriageway PPP

Tema roundabout Inadequate capacity

roundabout

Engineering Studies will begin in April 2015 for the

development of an interchange. Funding for construction of

the interchange is still being discussed

JICA

Tema-Akatsi 115 2 – lane, good condition Completed KfW

Akatsi-Aflao and Akatsi-

Akanu 58.8

2-lane road, good

condition Completed AfDB

TOGO

Aflao - Port roundabout 9.2 4 – lane, good condition Completed

IsDB,

BOAD,

EBID

Port roundabout- Avepozo 10.3 4 – lane, fair condition Ongoing studies to turn this section into a highway. Studies

scheduled to be completed in June 2015.

AfDB and

EIB

Avepozo- Aneho 28 2 – lane, fair condition widening into 4 lanes works being considered to be financed

by AfDB/EU and IsDB under this project

AfDB /EU

and IsDB

Aneho-Sanvee Condji 7.76 2 – lane, good condition Completed World Bank

BENIN

Hillacondji - Ouidah 58.75 2 – lane, fair condition Being rehabilitated AfDB

Ouidah-Pahou 17.75 4 – lane, fair condition Being reconstructed AfDB

Pahou-Godomey 10.3 4 – lane, fair condition Works Ongoing works to turn this section into a highway. World Bank

Godomey- Abomey/Calavi 16.5 Works completed EU

NIGERIA

Seme-Badagry 23 4 – lane, fair condition

Badagry roundabout-Eric

Moore (Lagos) 59 4 – lane, fair condition Ongoing works (in phases), includes BRT and metro rail.

Lagos State

Government

VII

APPENDIX IV-A: Location map for the Lome-Cotonou road

This map was provided by the staff of the African Development Bank exclusively for the use of the readers of the report this is attached to. The names used and the borders shown do not imply on the

part of the ADB Group and its members any judgment concerning the legal status of a territory nor any approval or acceptance of these borders.

.

APPENDIX IV-B: Location Map of the Coastal Protection Works (Between Baguida Plage and Kossi Agbavi)