1. Implementing the JAM Infrastructure Recommendations Progress and Way Forward Presentation to the Infrastructure Break out Session of the Paris Meeting of the Sudan Consortium, 9 – 10 March 2006

2. The JAM Recommendations

3. Overall Strategic Objectives by 2011 Develop a network of well maintained roads and transportation services (road, rail, air and river) that allows for better connectivity, improved access to markets and social services, and enhances economic growth and job creation. Increased domestic allocations consistent with vision for broad based growth. Streamline funding mechanisms and increase aid management capacity. Develop sound institutional and enabling environment for infrastructure development, including: local capacity to supervise and manage donor-financed projects; appropriate policy and institutional framework for the infrastructure sector capable of supporting increased economic activity; and well-functioning national planning and regulatory authorities. Significant increase in urban and rural electrification.

4. Phase I (2005-07): Preparation of projects required for rehabilitation and development of infrastructure Major capacity building, including skills development and training Develop implementation structures Promote greater private sector participation through regulatory reforms and Institutional development Implement “quick-win” projects Further development of Phase II Phase II (2008-11): Major rebuilding and construction of new infrastructure in the South and other war-affected areas to improve connectivity and rural accessibility Implement key policy and management reforms in transport and electricity to enhance efficiency Continue implementation of capacity building projects Donor coordination and assistance will be key in both capacity building and project implementation A Two-Phased Strategy:

5. Priorities – Northern Sudan Basic infrastructure network exists, but reforms are required. The development agenda is conventional, focusing on maintenance, capacity building, and reform. Priorities include: Develop implementation structures Facilitate for greater private sector participation Rehabilitation and upgrade of existing roads, railways, ports and river transport systems Reconstruct urban infrastructure and municipal services Broad-based electrification Reform to improve safety, security and performance Needs are larger in the Three Areas and Less developed areas of the North

6. Infrastructure network and policy and regulatory framework are non- existing or embryonic, and operators are largely foreign-based. Priorities include: –Increase access and connectivity through construction of basic transport infrastructure network involving roads, river transport and aviation –Develop rural roads –Build sufficient implementation, management and institutional capacity –Expand rural electrification Higher assessed road infrastructure needs for 2007 will be presented to donors for support as soon as specific benchmarks are met over the next 12-18 months, thereby showing readiness and implementation capacity As per the CPA, a substantial share of the infrastructure needs for the South are the financing responsibility of the NG – in particular national roads, civil aviation and river transport Priorities – Southern Sudan

7. Costing Estimates - Infrastructure * Major infrastructure (including interstate highways, river transport and civil aviation) which in the CPA are under the jurisdiction of the National Government but located in the Three Areas. National Government (million US$) Three Areas (million US$)

8. Substantial phasing up as soon as the technical and feasibility studies have been prepared Government of Southern Sudan (million US$) * Major infrastructure (including interstate highways, river transport and civil aviation) which in the CPA are under the jurisdiction of the National Government but located in Southern Sudan, so that their costs are presented in this table, without prejudice to the CPA. Costing, cont’d

9. Progress in Implementation BASIC APPROACH BASIC APPROACH Emergency infrastructure improvements Creating enabling policy, institutional and regulatory framework and sustainable capacity building.

10. Activities Underway Under Implementation South Sudan Emergency Transport and Infrastructure Project (SETIDP) - Under Preparation National Emergency Transport Rehabilitation Project (NETREP) Water sector projects in both North and South, including completing sector strategy. Extensive capacity building initiatives included in SETIDP and NETREP. National Transport Master Plan – appointment of consultant being launched. Defining overall framework for promoting private sector participation in infrastructure.

11. Activities Still to be Initiated Rural roads development in Darfur and the war affected areas. Formulation of urban development strategies and plans. Electricity – feasibility studies on hydro-power development and study of tariff structure. Reform of road sector management, including creation of Road Authority for Southern Sudan

12. Costing Budget and Actuals – GNU & Northern States - Infrastructure (bill SD). Nearly all expenditures are classified as central development expenditures. GOSS – USD 100 million towards Transport and Infrastructure Project.

13. Sudan Emergency Transport and Infrastructure Development Project Component 1: Roads and Transport Development Emergency Accessibility Improvements – WFP Phase 3 – 353Km plus Emergency Accessibility Improvements – WFP Phase 3 – 353Km plus 820Km under maintenance 820Km under maintenance Road Improvement to Paved Standard (624Km) Road Improvement to Paved Standard (624Km) Road Upgrading to all weather Gravel Roads (1,122Km) Road Upgrading to all weather Gravel Roads (1,122Km) Feeder Roads Program (1,000Km) Feeder Roads Program (1,000Km) Component 2: Basic Urban Infrastructure Rehabilitation works in Juba – Government houses/buildings; hospital; Rehabilitation works in Juba – Government houses/buildings; hospital; water supply and sanitation; roads and drainage. water supply and sanitation; roads and drainage. Immediate infrastructure rehabilitation/ provision in all state capitals. Establishment of town planning and land administration institute.

14. Sudan Emergency Transport and Infrastructure Development Project Component 3: Institutional Development & Capacity Building Capacity building and program implementation - Supervision of works - Supervision of works - TA support to Project Management Team (PMT) - TA support to Project Management Team (PMT) - TA & policy studies; - TA & policy studies; - Monitoring & evaluation; Information, - Monitoring & evaluation; Information, - Education and Communication Strategy - Education and Communication Strategy Preparation of next phase projects – Roads, Urban infrastructure and Power and Electricity and Power and Electricity

15. Sudan Emergency Transport and Infrastructure Development Project Financing Financing 2005 2006 2007 Total 2005 2006 2007 Total MDTF 50 80 120 250 MDTF 50 80 120 250 GOSS 100 240 187 527 GOSS 100 240 187 527 Total 150 320 304 777 Total 150 320 304 777 USAID has committed some funds for Juba rehabilitation and is funding Capacity Building Program for Ministry of Roads and Transport.

16. National Emergency Transport Rehabilitation Project RATIONALE RATIONALE Peace has increased economic activities which is generating increased traffic especially for import and export. Peace has also created the opportunity to improve connectivity between North and South and to thus facilitate return of IDPs. Meeting increased traffic demand requires a multi-modal approach: safeguard highways, secure and reinstate critical rail and port assets, improve travel and transport by river transport, adoption of modern operating practices, facilitate private sector investment. Without increasing available capacity, significant increase in transport costs inevitable which would erode benefits of peace to the poor. Proposed activities situated in policy reforms whilst providing immediate needed increase in transport capacity. Will benefit the economy as a whole and the poor in particular.

17. National Emergency Transport Rehabilitation Project COMPONENTS COMPONENTS Component 1: Re-instates Babanusa –Wau rail line, critical link between North and South that will result in lower freight cost leading to reduced cost of food and other essential commodities and lowest cost option for return of IDPs. Strengthen critical bridge on Port-Sudan to Khartoum rail line to safeguard Sudan’s main export/ import traffic route; establish rail connection to Green Port Area of Port Sudan to improve container productivity. Component 2: Improve operational capacity of Sudan Railway Corp including new locos Component 3: Trade facilitation initiatives to improve transport supply chain. Component 4: Improve river transport between Kosti & Juba Component 5: Technical Assistance, studies and capacity building

18. Emerging Challenges and Way Forward

19. Emerging Challenges Managing expectations: Meeting increasing demand for infrastructure and improved services due to economic growth (in North) and basic needs and aspirations (South). Slowness in implementation, both government budget execution (GNU/GOSS during 2005) and conversion of donor pledges Establishing and applying due financial and procurement management systems. Designing programs that directly touch the rural poor. Ensuring adequate financing in the face of more detailed assessment of needs. Clarifying roles of GNU and GOSS in the context of the provisions of the CPA.

20. Addressing the Challenges Sustain JAM framework: put in place Infrastructure specific consultation processes for decision making on strategic investment, information sharing, and financing of national projects between GNU/GOSS and development partners. Adopt multi-sector approach to identifying and implementing pro- poor infrastructure initiatives: engage with sectors such as agriculture and rural development, DDR, etc. to adopt common approaches and establish linkages on activities to promote local level employment creation and income generation.

21. Addressing the Challenges Promote private sector participation in financing and implementation: Develop sector specific strategies (in relation to large to small scale enterprises) based on overall strategy being developed. Enable sustainable technical approaches and implementation arrangements: reforms of institutions and creation of new ones to reflect accepted good practice, legislations, standards, budgeting processes, prioritization of projects, etc. – harmonize where necessary.

22. Way Forward: Six Month Action Plan (1) Projects Projects SETIDP implementation continues – contract for first section of Nadapal to Juba road awarded. Start implementation of NETREP, and water projects. Projects in Darfur and war affected areas under preparation. Agreements reached with agriculture, rural development, and others on multi-sector approach to rural infrastructure.

23. Way Forward: Six Month Action Plan (2) Policy, Institutional and Legal GNU/GOSS establish Joint Coordinating Committee. - GNU/GOSS to create one Sub-Committee each (or mandate existing ones) at ‘expert level’ to detail specific proposals for implementation. - GNU/GOSS to create one Sub-Committee each (or mandate existing ones) at ‘expert level’ to detail specific proposals for implementation. - Joint Committee to adopt proposals where in specific area of jurisdiction of GNU or GOSS or consider for approval where in area of jurisdiction of GNU which fit into the 2007 budget of GNU and GOSS. - Joint Committee to adopt proposals where in specific area of jurisdiction of GNU or GOSS or consider for approval where in area of jurisdiction of GNU which fit into the 2007 budget of GNU and GOSS.

24. Way Forward: Six Month Action Plan (3) Policy, Institutional and Legal Firm agreements reached on roles of GNU/GOSS in sector management and financing. Decision made on application of traffic laws and legislation and interim legislation enacted in South as necessary. Road Authority established in South and preparation of plan for reform of National Highway Authority initiated. Consideration by GNU/GOSS of recommendations of private sector studies underway.