NATIONAL EMERGENCY TRANSPORT REHABILITATION PROJECT FINAL PROJECT PROPOSAL Presentation to the MDTF Oversight Committee Khartoum August 28, 2006

Outline of Presentation JAM Recommendations JAM Recommendations Proposed Project Proposed Project Why the Project? Why the Project? Project Components Project Components Project Costs and Financing Project Costs and Financing Implementation Plan and Schedule Implementation Plan and Schedule Implementation Arrangements Implementation Arrangements Matters Arising Matters Arising

JAM Recommendations - 1 Railways Thrust: Focus on activities and initiatives to enable it continue to carry present commercial traffic and gradually carry a substantial part of the additional traffic required by peace keeping operations and traffic related to rehabilitation efforts. Thrust: Focus on activities and initiatives to enable it continue to carry present commercial traffic and gradually carry a substantial part of the additional traffic required by peace keeping operations and traffic related to rehabilitation efforts. Action Plan: Deepen private sector involvement; expand use of multi-modal operations; upgrade skills and make modest investment to rehabilitate and upgrade critical rail links. Action Plan: Deepen private sector involvement; expand use of multi-modal operations; upgrade skills and make modest investment to rehabilitate and upgrade critical rail links. Proposed Investment Plan: US$129 million plus US$140 million private sector. Proposed Investment Plan: US$129 million plus US$140 million private sector.

JAM Recommendations - 2 Inland Water Transport Thrust: In addition to incremental investment, restructure so that private sector can play greater role Thrust: In addition to incremental investment, restructure so that private sector can play greater role Action Plan: Promote development of policies and undertake emergency rehabilitation works. Make comprehensive investments in the Juba to Kosti river transport system. Action Plan: Promote development of policies and undertake emergency rehabilitation works. Make comprehensive investments in the Juba to Kosti river transport system. Proposed Investment Plan: US$140 million Proposed Investment Plan: US$140 million

JAM Recommendations - 3 Roads and Bridges Thrust: Improving North – South connections; developing South – South road network, reducing isolation in the Three Area and linking regional markets and countries. Thrust: Improving North – South connections; developing South – South road network, reducing isolation in the Three Area and linking regional markets and countries. Action Plan: Build up institutional capacity, develop road network in the South and other war-affected areas and develop rural roads in the entire country, support private sector involvement. Action Plan: Build up institutional capacity, develop road network in the South and other war-affected areas and develop rural roads in the entire country, support private sector involvement. Proposed Investment Plan: US$871 million Proposed Investment Plan: US$871 million

Implementing the JAM Recommendations SETIDP: Addressing recommendations focused on the South. Under implementation. SETIDP: Addressing recommendations focused on the South. Under implementation. Transport Master Plan: Addressing the policy institutional and regulatory issues and long term investment needs. Recruitment of consultants launched. Transport Master Plan: Addressing the policy institutional and regulatory issues and long term investment needs. Recruitment of consultants launched. NETREP: Proposed National Project focused on rail, river transport and road improvements, especially in Three Areas. NETREP: Proposed National Project focused on rail, river transport and road improvements, especially in Three Areas. Joint Coordinating Committee being convened to provide regular dialogue between GNU and GoSS. Joint Coordinating Committee being convened to provide regular dialogue between GNU and GoSS.

Proposed Project Thrust: Implement short term (Phase 1) recommendations of JAM for railways, inland water transport and roads (especially in the Three Areas). Thrust: Implement short term (Phase 1) recommendations of JAM for railways, inland water transport and roads (especially in the Three Areas). Development Objective: Facilitate the countrys economic and social recovery through improved physical access to goods, markets, and administrative and social services. Development Objective: Facilitate the countrys economic and social recovery through improved physical access to goods, markets, and administrative and social services. Focus: (i) Two key trade routes linking the North and the South with Port Sudan (a) the Wau-Khartoum-Port Sudan corridor and (b) Port Sudan – Kosti –Malakal – Juba corridor. (ii) Addressing the isolation of communities in marginalized areas, a key impediment to recovery and development. Focus: (i) Two key trade routes linking the North and the South with Port Sudan (a) the Wau-Khartoum-Port Sudan corridor and (b) Port Sudan – Kosti –Malakal – Juba corridor. (ii) Addressing the isolation of communities in marginalized areas, a key impediment to recovery and development. Programmatic approach broken into three phases. This presentation relates to Phase 1 for which funding is requested. Programmatic approach broken into three phases. This presentation relates to Phase 1 for which funding is requested.

Why the Project? Peace has (i) increased economic activities which is generating increased traffic especially for import and export. (ii) created the opportunity to improve connectivity between North and South and to thus facilitate return of IDPs. Peace has (i) increased economic activities which is generating increased traffic especially for import and export. (ii) 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. 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. Without increasing available capacity, significant increase in transport costs inevitable which would erode benefits of peace to the poor. Proposed activities provide immediate needed increase in transport capacity and will benefit the economy as a whole and the poor in particular. Proposed activities provide immediate needed increase in transport capacity and will benefit the economy as a whole and the poor in particular.

The Project – Component 1 - Rail Rehabilitation of Babanousa-Wau Railway Line; Rehabilitation of Babanousa-Wau Railway Line; Rehabilitation of Bridge Number 353 on the Khartoum to Port Sudan rail section; Rehabilitation of Bridge Number 353 on the Khartoum to Port Sudan rail section; Rail connections to the container depot in the Damadama area of Port Sudan; Rail connections to the container depot in the Damadama area of Port Sudan; Improving rail connections at existing and new Port at Kosti; Improving rail connections at existing and new Port at Kosti; Studies on enhancing private sector participation in railway operations; Studies on enhancing private sector participation in railway operations; Support for project management; Support for project management; Enhancement of sector management capacity; Enhancement of sector management capacity; Improving inter- modal operations at Port Sudan. Improving inter- modal operations at Port Sudan. Establish social safeguards Unit in MTRB. Establish social safeguards Unit in MTRB.

The Project – Component 2 - River Provision of Equipment in Support of Port Operation; Provision of Equipment in Support of Port Operation; Concession of the new port at Kosti; Concession of the new port at Kosti; Study to establish emergency dredging and navigational needs; Study to establish emergency dredging and navigational needs; Hydrographic survey of White Nile; and Hydrographic survey of White Nile; and Support for project implementation including targeted institutional development and capacity building. Support for project implementation including targeted institutional development and capacity building.

The Project – Component 3 - Roads Program of spot improvements on Kadougli to Kaouda road (135 km) and section 2 of the E Damazin to El Kurmuk road (55km) and Program of spot improvements on Kadougli to Kaouda road (135 km) and section 2 of the E Damazin to El Kurmuk road (55km) and Upgrading of Hamashkraid to El Gahwa road (90 km); Upgrading of Hamashkraid to El Gahwa road (90 km); Detailed design of Abu Jubayah to Talodi to Kadugli road (310 km), Damazin to Geissan road (160 km) and Toker to Garora road (215 km); Detailed design of Abu Jubayah to Talodi to Kadugli road (310 km), Damazin to Geissan road (160 km) and Toker to Garora road (215 km); Feasibility studies and detailed design of Geissan to Kurmuk road (160 km), Damazin to Renk road (200 km), Kadugli to Hegleig road (170 km), and Muglad to Abyei road (160 km); Feasibility studies and detailed design of Geissan to Kurmuk road (160 km), Damazin to Renk road (200 km), Kadugli to Hegleig road (170 km), and Muglad to Abyei road (160 km); Project management and institutional development and capacity building including (a) carrying out of various studies on sustainable road sector financing, road safety and axle load control, (b) establishment of pavement management system, (c) improvements to materials testing laboratory, and (d) training, workshops, study tours and targeted TA. Project management and institutional development and capacity building including (a) carrying out of various studies on sustainable road sector financing, road safety and axle load control, (b) establishment of pavement management system, (c) improvements to materials testing laboratory, and (d) training, workshops, study tours and targeted TA.

Project Costs and Financing Phase 1 Phase 2 Phase 3 TotalRemarks Component TBD81.95 Component Dredging via bilateral funds Component Total All figures in US$ million. 2. Financing: MDTF – US$48.50 million; GNU US$93.68 million

Implementation Plan and Schedule Implementation period Nov 2006 to Dec 2009 Implementation period Nov 2006 to Dec 2009 Grant Agreement signed mid-September, 2006 Grant Agreement signed mid-September, 2006 Project accounts opened and Implementation Project accounts opened and Implementation Manual ready mid-October, 2006 Manual ready mid-October, 2006 Project effectiveness October 31, 2006 Project effectiveness October 31, 2006 Rail de-mining work starts early January, 2007 Rail de-mining work starts early January, 2007 Tenders for cargo handling equipment for RTC launched mid- Oct 2006 and civil works early Nov 2006 Tenders for cargo handling equipment for RTC launched mid- Oct 2006 and civil works early Nov 2006 Tenders for first road contract launched mid-October with award early 2007 Tenders for first road contract launched mid-October with award early 2007 Commencement of Phase 2/3 depends on progress with Phase 1 and funding availability.

Implementation Arrangements Overall coordination and progress monitoring by MTRB through its Planning Unit which is being strengthened with TA. Overall coordination and progress monitoring by MTRB through its Planning Unit which is being strengthened with TA. Implementation by empowered Project Management Teams in each implementing agency (SRC, RTC and NHA) which are already functional. Implementation by empowered Project Management Teams in each implementing agency (SRC, RTC and NHA) which are already functional. Each PMT comprises of seconded technical staff of implementing agency plus recruited experts in financial and procurement management with TA input as required. Each PMT comprises of seconded technical staff of implementing agency plus recruited experts in financial and procurement management with TA input as required. Project Implementation Manual contains guidance on rules and procedures for use by PMT in implementing the Project. Project Implementation Manual contains guidance on rules and procedures for use by PMT in implementing the Project.

Matters Arising Financing envelope to be confirmed by MDTF/GNU Financing envelope to be confirmed by MDTF/GNU MoFNE needs to: MoFNE needs to: 1. Assist implementing agencies in timely opening of Project Accounts. 2. Make initial deposits into Project Accounts to cover initial project cost prior to disbursement of funds by MDTF. These deposits to be reimbursed through retroactive financing provision in the Grant Agreement. 3. Assist SRC in timely finalization of the MoA for engagement of UNOPS.