1. MINISTRY OF INFRASTRUCTURE DEVELOPMENT CWG MEETING ON MKIUKUTA REEVIEW STUDIES 22 – 26 February 2010 REVIEW OF TRANSPORT SECTOR IN RELATION TO MKUKUTA Presentation by:SMAK Kaombwe, Consultant, SDL On behalf of:Task Team

2. INTRODUCTION Continued MKUKUTA (2005/6 – 2009/10): Growth strategy with focus on poverty reduction Cluster 1: Growth and Reduction of Income Poverty (with specific transport targets) Cluster 2: Improvement of Quality of Life and Social Well –Being (with specific transport targets) Cluster 3:Governance and Accountability

3. INTRODUCTION Continued Transport Programmes Inputting into MKUKUTA: TSIP: Overall transport sector development (Phase 1: 2007/8 – 20011/12… $6.2 bill with 40% committed in 2008) LGTP: Address isolation and lack of access to economic opportunities and social services for poor (2007/8 – 20011/12.. Shs 186 bill road dev works & capacity building..70% financing; maintenance 26% shortfall in 2009/10) VTTP: Provide access and mobility in rural communities 1994.. Commenced in 7 pilot districts Roll out …2007/8 in 27 districts…55 in 2009/10 and long term all districts …. Also has limited funds

4. MKUKUTA REVIEW Overall objective: Review performance of MKUKUTA 1 (2005/6 – 2009/10) and Identify inputs for next MKUKUTA Specific objectives for review of transport sector input: Identify linkage - infrastructure & poverty reduction; Assess adequacy of MKUKUTA 1 targets wrt role of transport infrastructure; Assess achievement of the targets; and Propose new transport infrastructure policies and targets for next MKUKUTA

5. MKUKUTA REVIEW TRANSPORT SECTOR Transport Sector Review Team from: MoID – Leader; MoFEA; Planning Commission; PMO - RALG; BOT; CTI; and SDL Consultants - facilitator

6. MKUKUTA REVIEW TRANSPORT SECTOR 1.Linkage - infrastructure with other sectors & with poverty reduction 2.Assess adequacy of MKUKUTA 1 targets wrt role of transport infrastructure; 3.Assess achievement of the targets; and 4.Propose new transport infrastructure policies and targets for next MKUKUTA

7. For the poor transport provides: - Access to inputs, implements, know how & other services to boost production; - Access to local and international markets for trade; - Access to social services Transport Function

8. Pro-poor Transport Logistics Chain

9. Transport Links with Other Sectors and Poverty (1) Unlock economic potential: access to areas with high agriculture, minerals, tourism potential, etc Access to markets: local, national and international export/import markets. For the poor to improve conditions, they need to sell and earn income. Industrial development: Reliable and economical transport key to attracting investment in value addition and other industries.

10. Transport Links with Other Sectors and Poverty (2) Access to basic social services: education, health, extension services & information are necessities to eradicate poverty - ref MDG agenda. Also enables retention of public servants & maintain supplies. Social interaction: For social harmony to ensure security, regional integration & expand markets. Helps build tolerance among people. Jobs creation: In construction, maintenance & operation of transport infrastructure & services; also enables access to far away jobs. Income inequality: Minimised by adequate & equitably distributed transport infrastructure

11. MKUKUTA REVIEW TRANSPORT SECTOR 1.Linkage - infrastructure with other sectors & with poverty reduction 2.Adequacy of MKUKUTA 1 targets wrt role of transport infrastructure; 3.Assess achievement of the targets; and 4.Propose new transport infrastructure policies and targets for next MKUKUTA

12. Adequacy of MKUKUTA 1 Summary based on specifics in the report: Some strategies too general and inadequate to tackle key weak areas: Leads to general reporting on implementation. No prioritisation to ensure maximum impact on poverty reduction (eg based on population & to address infrastructure & services in rural areas, identified weakest link; Inadequate direction on how reporting should be organized, and the need to draw out measurable, in particular quantifiable, indicators.

13. Adequacy of MKUKUTA 1 General Did not address intermodal and efficient modal interface and complementarities to optimise transport cost (eg rail vs road & port – rail/road interface) Specialized transport for perishables (eg flowers, fresh meat, vegetables and fish are high paying agricultural products), as well as for tourism, not addressed adequately.

14. MKUKUTA REVIEW TRANSPORT SECTOR 1.Linkage - infrastructure with other sectors & with poverty reduction 2.Adequacy of MKUKUTA 1 targets wrt role of transport infrastructure; 3.Achievement of the targets 4.Propose new transport infrastructure policies and targets for next MKUKUTA

15. Achievement of Transport Targets (and strategies) Undertaking infrastructure improvements: Paved roads increased by 1,213 km by 2008, from 5200 km in 2004. Maintenance improved. Target not quantified. Other modes reported also generally. Repair 15,000 km of rural roads by the year 2010: 30,673 kms of district, feeder and collector roads maintained in 2008/9, beyond target.

16. Achievement of Transport Targets (and strategies) Modernizing and expansion of trunk roads, ports, airports and by providing adequate levels of physical infrastructure needed to cope with poverty reduction: Performance report too general and limited in scope. Modernization achieved not clearly elaborated and quantified.

17. Achievement of Transport Targets (and strategies) Invest in infrastructure to further improve accessibility to markets, to improve reliability of carrying units and competition among private carriers with a view to lowering costs and reliability/convenience. Various upgrading, rehabilitation, and maintenance programs under implementation in trunk road & regional roads. Improve passable good/fair condition of rural roads to 75% in year 2010 up from 50% in year 2004. 58.5 % good/fair condition in 2008/9 – target not achieved. Major problem since this constitutes weakest link in logistics chain, on which majority poor depend.

18. MKUKUTA REVIEW TRANSPORT SECTOR 1.Linkage - infrastructure with other sectors & with poverty reduction 2.Assess adequacy of MKUKUTA 1 targets wrt role of transport infrastructure; 3.Assess achievement of the targets; and 4.Propose new transport infrastructure policies and targets for next MKUKUTA

19. Proposals for MKUKUTA 2 Transport Details in Table 7.1 based on table 5.1. Priorities for purely public financing are: Priority 1: Rural and community roads and transport & urban transport Transit (removal of regulatory and process impediments) Cross cutting issues (safety, capacity building, HIV/AIDS mitigation, Environment)

20. Proposals for MKUKUTA 2 Transport Details in Table 7.1 based on table 5.1. Priorities for purely public financing are: Priority 2: Trunk and regional roads Priority 3: Railway (due to ability to attract PPP)

21. Proposals for MKUKUTA 2 Transport Details in Table 7.1 based on table 5.1. Priorities for purely public financing are: Priority 4 Ports and Aviation – mostly commercial or self- sustaining and ability to attract PPP) Proposed specific indicators and targets for the priorities are detailed in Table 7.1

22. Financing Possible sources (ref Table 6.1) Public – Government (various methods) and Development Partners Public – Private Partnership Industry (access spurs and corporate responsibility) Commercial (self-sustainability & commercial loans) Savings from better practices and controls of leakages and weaknesses identified by auditors

23. ASANTE SANA