Document of 'f I CO Y The World Bank FOR OFFICIAL USE ONLY

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1 Document of 'f I CO Y The World Bank Public Disclosure Authorized FOR OFFICIAL USE ONLY Report No. 3236a-IVC Public Disclosure Authorized IVORY COAST SECOND URBAN PROJECT STAFF APPRAISAI REPORT July 7, 1981 Public Disclosure Authorized Public Disclosure Authorized Urban Projects Department This document has a restricted distribution and may be used by recipients only ln the performance of their official duties. Its contents may not otherwise be disclosed without World Bank authorization.

2 CURRENCY EQUIVALENTS Currency Unit - CFA Franc (CFAF) US$ CFAF 250 CFAF l million - US$4,000 Fiscal Year: GOIC - January 1 - December 31 Fiscal Year: SOTRA - October 1 - September 30 WEIGHTS AND MEASURES 1 meter (m) feet (ft) 1 Kilometer (km) miles (mi) 1 square kilometer (km ) square mile (sq. mi.) 1 metric ton (m ton) - 2,204 pounds (lbs) 1 hectare (ha) acres l square meter (m ) square feet 1 liter (1) US gallons l cubic meter (m ) US gallons ABBREVIATIONS AND ACRONYMS BCET - Bureau Central d'etudes Techniques CAA - Caisse Autonome d'amortissement CIDA - Canadian International Development Agency DCM - Direction Centrale des Marchés DCTP - Direction Centrale des Travaux Publics DCTT - Direction Centrale des Transports Terrestres DCU - Direction Centrale de l'urbanisme DDR - Direction du Développement Régional DGAT - Direction Générale de l'administration du Territoire DGTX - Direction des Grands Travaux DRCU - Direction Régionale de la Construction et de l'urbanisme DRTP - Direction Régionale des Travaux Publics EECI - Energie et Electricité de la Côte d'ivoire ENSTP - Ecole Nationale des Travaux Publics MCU - Ministère de la Construction et de l'urbanisme MPWT - Ministère des Travaux Publics et des Transports OSÈR - Office pour la Sécurité Routière RAN - Régie Abidjan-Niger SODECI - Société des Eaux de la Côte d'ivoire SOTRA - Société des Transports Abidjanais URS - Service Urbain Ferroviaire

3 FOR OFFICIAL USE ONLY IVORY COAST SECOND URBAN PROJECT STAFF APPRAISAL REPORT Table of Contents I. SECTORAL CONTEXT... l Page No. A. Urban Setting. 1 B. Abidjan. 2 C. The Secondary Cities. 4 D. Managing Urban Growth. 4 E. The First Urban Project and Bank Group Assistance. 7 F. Project Rationale. 8 II. THE PROJECT... 9 A. Objectives.. 9 B. Main Features... il C. Detailed Features: Urban Transport D. Detailed Features: Secondary Cities Program III. COST ESTIMATES AND FINANCIAL ARRANGEMENTS A. Cost Estimates B. Financial Arrangements C. Procurement D. Disbursements IV. IMANAGEMENT AND IMPLEMENTATION A. Status of Project Preparation B3. Execution... 7 C. Implementation ). Supervision and Monitoring E. Financial Management and Audits This report is based on the findings and recommendations of an appraisal mission of June 1980 composed of Messrs. C. Delapierre (Chief of Mission), F. Jakob, D. Jones and P. Midgley, assisted by consultants J-F. Allouche, D. Colston and G. Harter. Ms. Tager participated in the report writing. This document has a restricted distribution and may be used by recipients only in the performance of their official duties. Its contents may not otherwise be disclosed without World Bank authorization.

4 - ii - Page No. V. THE BUS COMPANY: SOTRA A. Organization B. Financial Position.» C. The Immediate Action Plan D. Medium Term Strategy VI. PROJECT JUSTIFICATION A. General... o B. Transport C. Secondary Cities Program VII* RECOMMENDATIONS. * ANNEXES CHARTS MAPS 1. Technical Assistance 2. SOTRA: Financial Forecasts 3. Selected Documents and Data 4. Detailed Cost Estimates 1. Ministry of Public Works and Transportation 2. Ministry of Construction and Urbanism 3. Ministry of Interior 4. Project Implementation Ivory Coast: Population Distribution Abidjan: Location of Project Components Abidjan: Traffic Improvement Measures: Adjame Abidjan: Traffie Improvement Measures: Treichville, Marcory, Koumassi Daloa: Location of Project Components Korhogo: Location of Project Components

5 IVORY COAST SECOND URBAN PROJECT I. SECTORAL CONTEXT A. THE URBAN SETTING Urban Sector Growth 1.01 The Ivory Coast has the third largest urban population in West Africa, with an estimated 3.1 million urban residents out of a total 1980 population of 8.1 million. It is also one of the region's most urbanized countries (38%). The country's urban sector has been marked by rapid growth, about 8.4% p.a., more than double that of the population as a whole and over three times as fast as the rural population. This figure masks a broad spectrum of growth rates and regional disparities in incomes. From , Abidjan sustained an average growth rate of about 10% p.a., totalling 990,000 inhabitants at the end of the period. By 1980, the population had nearly doubled, reaching an estimated 1.7 million. Should Abidjan continue to grow at 7% per annum, which is a conservative estimate, it would reach 3.4 million inhabitants by 1990, or 54% of the total urban population Growth in the secondary cities is both rapid and highly skewed. These cities are expanding at an overall rate of 6.5% annually. San Pedro, the country's second port, is growing at 11.6%; Bouake, the country's second largest city is growing at 8% and has an estimated 1980 population of 280,000. Growth in other secondary cities such as Daloa (83,000) and Korhogo (70,000), though somewhat slower (6% and 10% respectively) is still more than double the national growth rate Migration, which accounts for over half of the overall urban growth rate has come to play a major rolc in the evolution of the urban sector. This migration, coming from both within the country and the neighboring West African countries, is primarily a consequence of a robust record of economic growth. Abidjan's growth in particular is heavily influenced by considerable in-flows of population, accounting for 6.4% per year and reflecting its historic role as a colonial administrative center and subsequently the country's political and economic capital. More critically, growth of and migration to Abidjan is significantly influenced by government policies, especially those related to the regional allocation of investment and its sources of finance. For example Abidjan accounted for 25% of the total 1975 investment of $310 million, the central region (Bouake/Yamoussoukro) 40%, and the remaining poorer regions, 35%. With Abidjan and Bouake/Yamoussoukro accounting for 40% of total population, per capita government investment in Abidjan and Bouake/Yamoussoukro was four times as high as in the remaining regions. This pattern of investment has heavily reinforced the gap between the resource rich south and the impoverished northern region of the country.

6 There are no signs that growth in the urban sector will slow significantly over the coming decades. Indeed, current forecasts based on a gradual braking of growth rates place the Ivory Coast's total population at 20 million by the year Under this scenario and without a major turn around in Government regional investment policies, over 90% of the total population would be concentrated in the southern half of the country by the year The urban share would be at least 60% of the total population and about 60% of the urban population, or 7 million inhabitants, would be concentrated in Abidjan. Employment, Income and Poverty 1.05 Recent employment data are scarce and generally unreliable. Nevertheless we are able to sketch a broad employment picture and one which is not encouraging over the longer term. According to a Bank/ILO study on employment in the Ivory Coast, unemployment in Abidjan was 20% in Since the population growth rate has held steady at 10% during the 1970s, there is good reason to believe that the level of unemployment is much higher at the present time. Again, while data is sparse in the secondary cities, unemployment is likely to be much greater than in Abidjan The share of formal employment in Abidjan is about 50%, and is substantially smaller in the secondary cities where agriculture and petty trade and commerce are the predominant activities. The legal minimum monthly wage (SMIG) for activities other than agriculture is currently fixed at $118 per month ($1,410 per year). A large number of informal sector workers however have earnings below the SMIG. A 1978 survey estimated that the average monthly income of an African household was about $265 in Abidjan and about $235 in the secondary cities The relative urban poverty threshold in 1979 was defined at $410 per capita per year in Abidjan. An estimated 350,000 (or 23%) of a population of 1.5 million in 1979 was estimated to be below this threshold in Abidjan. Again, because of the dearth of data on the secondary cities, we can only surmise that the share is considerably larger. B. ABIDJAN 1.08 Against a background of heavy investment and economic prosperity, Abidj2n-s growth has been especially rapi. The urbanized area measured 2 36 km in By 1975 it reached 80 km and by 1980 it had topped 120 km The average net residential density rose from 210 persons/ha in 1965 to 235 persons/ha in 1975 and is now estimated to reach 260 persons/ha in the older and low/middle income areas and 1,000 persons/ha in some squatter areas. During the last decade two important growth areas have emerged: (i) Abobo, a poorly planned and largely unserviced low-income area located in the north, housing over 300,000 inhabitants; (ii) the Banco Plateau, a planned extension area in the west with a current population of about 350,000 and an expected long-term population of about one million persons.

7 Abidjan's explosive and steady growth has largely outgrown it-s network of infrastructure and services and has overwhelmed the city's capacity to keep up with the sprawl. The added problem of serrated coastal topography has made the delivery of public services and especially urban transport, particularly difficult. Of more serious concern, however, is a legacy of Governtaent policies for urban development which have favored high technical standards in both Abidjan and the secondary cities have tended to exclude the poorer segment of the population, since services are either provided at costs far be,ond their means or simply not provided at all. In Abidjan, the absence of street maintenance and the poor stormwater drainage have seriously eroded the road network in several areas. Vehicular access is now often impossible into many of these roads, further reducing effectiveness and adequacy of the service delivery. Moreover, the deterioration of environmental conditions is causing serious public health concerns, triggered by the absence of garbage collection and an inadequate supply of potable water Public transport, whose major clients are among the city's urban poor, has lagged far behind demand. Provision of adequate transport infrastructure has been sorely constrained by topographical features. The main transport routes cross into the Central Business District (Plateau). Key movements such as those linking the residential areas of Abobo, the Banco Plateau and Adjame with the Petit Bassam Island (the main employment center) and the port, are only possible through the Plateau area and the two bridges crossing the Ebrie laguna, thus producing heavy traffic congestion in the downtown area. With the population and motorization rates growing steadily during recent years, traffic congestion, however, is now common to all parts of the city and is beginning to have a negative effect on the Ivorian economy. Transport Characteristics 1.11 Walking is an important mode of transport in Abidjan. About half of the residents trips are made on foot. Motorized transport is provided by buses, taxis, water coaches and cars. In 1977, there were about 48,700 cars in Abidjan. There are about 720 buses and 320 mini-buses in Abidjan, operated by SOTRA, the monopolistic, state-owned bus company. City taxis in running condition amount to about 2,500 units. Trips made by SOTRA buses represent about 46-48% of total motorized trips which were estimated at 1.24 per day per inhabitant in More than half the motorized trips are used for commuting. A detailed study on a gravitating model made in 1978 demonstrated that between one third and one fourth of car or bus trips are generated by the Petit Bassam Island. The average length of a one way trip is about 7 km. Transportation by water coach represents 1% of the trips undertaken daily The transportation situation in the neighborhoods that the proposed project will address is chaotic. Around the Treichville, Adjame and Koumassi central markets, buses, cars, taxis and parked cars compete against each other and with the overflow of pedestrians, customers and merchants who have set up shlop in the extremely narrow footpath areas. Lack of road markings and traffic lights cause severe traffic congestion often lasting 12 hours per day. Apart: from the 10 km of reserved bus lanes created under the first urban project, mass transit vehicles have no priority. Bus routes have been established by SOTRA without taking road congestion into consideration, bus stops are on the street, increasing traffic congestion and causing safety hazards.

8 - 4 - C. THE SECONDARY CITIES 1.13 For years the Ivory Coast has advocated a policy of deconcentration of resources away from the capital city, but the bias towards investment in Abidjan has prevailed. The secondary cities themselves are weak instruments for the implementation of broad programs, lacking human and financial resources as well as the institutional structures needed to plan and guide economie growth. Development programs in the urban sector come exclusively under the control of Central Government's urban planning services. Local political authorities have little influence in the design and implementation of urban policy, and in any case, qualified staff are in short supply. Local budget resources are also limited, if any exist at all. Investment capacity is negligible as demonstrated by the Five Year Investment Program in which local participation was only 0.4%. Over 50% of local income is derived from market taxes, the remaining 50% coming from various taxes and service charges such as the garbage collection taxes, street cleaning taxes, etc. Without adequate resources, local service activities are in many cases deficient or limited to maintenance of the secondary street network, parks and gardens and garbage collection. Most other vital services are simply not provided The weakness of local authorities is of growing concern as most of these secondary centers begin to experience rapid growth. The absorptive capacity of these cities is limited: employment is dominated by agricultural and service activities and industrial employment is often very small. Immediate growth prospects in employment are therefore not encouraging. Without an adequate planning framework to guide growth, population densities have tended to remain low and incipient sprawl is evident. In some towns, squatting is beginning to emerge as a serious problem. Limited planning and implementation capacity at the local level will prove the most difficult hurdle to overcome in defining appropriate solutions for these cities. D. MANAGING URBAN GROWTH 1.15 As the Government enters a new decade and plans for growth to the year 2000, it intends to remedy the investment disparities between the secondary cities and Abidjan. A well-balanced regional development policy is being formulated with a clearly defined strategy of assistance to the secondary cities. Nevertheless, the fundamental importance of Abidjan to the country's economy and, indeed to the West Africa region will not diminish, and investments in the capital will therefore continue Following upon these themes, the Government's investment program for the urban sector amounted to US$250 million in 1979, about half of which was to be spent in Abidjan. Estimated outlays for and the coming years will be about the same (see Table 1.1 below). The urban sector-s share has represented between 12-15% of total Goverument expenditures during recent years. The total national investment ceiling proposed by the IMF and the Bank for is about $1.7 billion per year of which $1.1 billion for external borrowings. Based on this ceiling, the optimal amount

9 - 5 - IVORY COAST Second Urban Project Table 1.1 Forecast of Investments in the Urban Sector for the Period (CFAF millions) Annual Commitments Authorized 1984 Source Soref of Programs Financing I. URBAN ROAD INFRASTRUCTURE Banco Bridge 15,300 SFEDTP Western By-pass (URB 2) 300 1,000 1,200 1,500 IBRD Banco Primary Road Network (URB 2) 1,000 1,000 1,500 IBRD Bingerville Road 1,500 EJL Reboul Pass 1,500 Dcubling of Houphouet Boigny Bridge 1,000 3,000 3,000 Agban-Indenie Link 1,000 2,000 2,000 SPIE Riviera Road Network 2,000 2,000 1,700 SOFRATP de Gaulle-VGE-Marseille Blvd. 2,500 2,000 EJL Blvd. Latrille 1,200 2,500 2,800 EJL Chardy Junction 2,000 Abobo Sud - Djibi Road Link 1,700 NLarcory - Koumassi Road Link 5,000 Secondary Cities Road Network Bouake, Gagnoa, Daloa, Bonoua 4,100 5,000 5,000 5,000 Colas-SOFRATP Sub-total,1 8,100 18,500 21,000 35,700 II. PUBLIC TRANSPORTATION Traffic Improvements (URB 2) 200 3,000 3,000 3,000 IBRD URS'Scudies (URB 2) IBRD-CIDA SOTRA Bus Depot (URB 2) IBRD SOTRA Investment 20,000 BNP-CCCE-Customa SOTRA Deficit (with fare increase) 8,500 9,900 11,000 12,200 Bouake 3,300 Sub-total II, 8, ,600 14,700 38,800 III. URBANISM A:idjan (URB 1) 3,500 3,500 IBRD - USAID - FSH Abidjan 3,500 3,500 Secondary Cities (URB 2) lco 1,700 1, IBRD Secondary Cities 2,000 3,000 3,000 USAID Secondary Cities 3,500 3,500 Community Facilities (URB 1) 1,200 IBRD Community Facilities 2,000 2,000 2,000 IV. CONSTRUCTION Sub-total III 4,800 9,200 13,700 12,600 Abidjan Government office buildings 10,500 Thinet Abidjan Housing 10,000 10,000 5,000 Sehnaoui-Charbine- Najjar Interior 5,000 5,000 5,000 5,000 FSH V. SEWERAGE AND DRAINAGE Sub-total IV 25,500 15,000 10,000 5,000 Abidjan 2,500 8,000 11,000 14,000 IBRD Interior 1,000 1,500 2,000 IBRD VI. WATER SUPPLY Sub-total V 2,500 9,000 12,500 16,000 Villages 2,400 7,300 2,700 4,7)0 CCCE-Entente-CEAO Cities 8,300 4,200 11,600 7,000 IBRD - KFW Sub-total VI 10,700 11,500 14,300 11,700 GRAND TOTAL 60,300 76,800 85, ,800

10 - 6 - for investment in the urban sector should vary between $200 and $250 million per year, which appears to be a reasonable measure of the present absorptive capacity of MPWT and MCU, the main implementing agencies for these programs. Sectorally, 25% of the funds would go into urban transport, 55% to shelter, water and sewerage, and the remainder to other urban services Investment in Abidjan has been shaped by the Ten Year Development Study for the Abidjan Region, financed under the 1976 First Urban Project. The principal objective of the Ten Year Development Study was to prepare a medium term financing plan which would adequately reflect the country's economic prospects and a conviction that investment in Abidjan could not continue as it had in the past. Based on the recommendations of this study, Government endorsed the following strategy for Abidjan's development: (a) a shift away from a purely sectoral investment approach towards one which considers sectoral interrelationships and improves interministerial coordination and planning; (b) greater attention to the phasing of projects to closely match demand and avoid over-investment; (c) planned fiscal management of the city. In the near future, recurrent costs of the present/planned investments will require a considerable maintenance budget, necessitating effective taxation and cost recovery systems As for investment in infrastructure and services in Abidjan, Government would focus on the provision of urban transport, water supply, sewerage and shelter for the older underserviced areas and the newer expansion zones. Shelter needs of households earning less than the median income in Abidjan (about $315 per month in 1980) would be addressed through upgrading of selected squatter and low-income areas and the development of some rental housing. It is expected that standards will be affordable to the beneficiaries without significant subsidies In the field of urban transport, Government plans to make more efficient use of existing infrastructure and transport systems, with special emphasis on bus systems. A recent study with a 1990 horizon shows that it will be impossible to maintain the present level of services, even with a comprehensive urban road program. It is therefore proposed to limit the demand for private transportation by developing and/or improving the bus system, enforcing parking regulations in the Plateau. It is also proposed to improve the use of the existing capacity of the street network through traffic management programs to improve junctions, traffic lights, road signals and busways. These policy issues are being addressed in the First Urban Project with a commendable degree of success.

11 1.20 To achieve the objective of more balanced regional investment, Government intends to provide the necessary infrastructure and an adequate level of amenities which would attract industries and skilled and semi-skilled labor to the secondary cities. Wherever possible, improvements in urban infrastructure would be linked to the modernization of agriculture, especially around smaller towns. Because of Government's financial and implementation capac:ity, the approach to the secondary cities program is intended to be selective, concentrating on those cities with the strongest growth potential and tlne capacity to absorb and utilize funds effectively. E. THE FIRST URBAN PROJECT AND BANK GROUP ASSISTANCE 1.21 The Bank Group has supported the Government's development policy objectives through its lending program and continuing policy dialogue in the urban sector and related fields. Other projects besides the First Urban Project include the First and Second Sewerage and Drainage Projects, the Secondary Centers Water Supply Project, the First and Second Artisans Small- and Medium-Scale Enterprise Projects, the First and Second Tourism Projects, and the Second Water Supply Project which is under preparation The First Urban Project (Loans 1347/1348T) - a joint undertaking of the Bank, USAID and the Ivory Coast -- was approved in December Its main objectives were: (a) to finance transport and shelter infrastructure programs in Abidjan in support of Government policies to improve access to urban services for low-income groups; (b) to introduce new policies and provide technical assistance to strengthen the institutions charged with implementing these programs; (c) to provide on-going planning and programming capabilities to permit evaluation of investment plans and priorities The urban transport component which is the major project element, is virtually completed and has had a positive impact on transport policy investment in Abidjan. In contrast to over investment in roads in previous years, the project period was marked by a reduction in road construction and a shift towards traffic management programs including traffic lights and parking regulations, to alleviate congestion. Greater attention has also been paid to public transport. Under the project, the first reserve bus lanes in sub-saharan Africa were installed in 1979 and initial indications are that they are significantly improving bus operations in the area concerned. On the institution building side, a Traffic Bureau was created in 1977 to develop new policies for public transportation by bus and to restrain the use of private cars, in particular, to regulate parking. The Bureau has met with considerable success and its work has provided the basis for the proposed second project.

12 Progress on the shelter side has been slow and is a major reason for the limited investment in shelter under the second project. Execution of upgrading work has been delayed for almost two years. Implementing decrees required to execute the upgrading operations have been approved by the Council of Ministers in October 1980, and work started early On the positive side, the shelter component has had some beneficial impacts in policy terms. First, as a result of the on-going dialogue with the Bank, the Government appears to be more sensitized to the need to improve access to services to the poorest segment of the urban population without substantial increases in subsidies. Second, criteria for plot allocation were modified to allow foreigners and the Ivorian poor to acquire security of tenure through long leaseholds (Arrêté dated July 1976). Third, legislation allowing cost recovery in upgrading and low-income housing areas was passed in 1977 and ratified in In short, a policy framework now exists in which a more foeussed dialogue with Government on shelter policy and programs should be intensified Tax recording in Ivory Coast is traditionally very weak, mainly because of an inappropriately designed, over-complicated tax system. Moreover, the tax administration is not well managed and lacks adequate means of support. A study was financed under the Second Abidjan Sewerage and Drainage Project (Loan 1577 IVC) on ways of improving tax collection, on which cost recovery for most of the shelter project is based. Lack of effective coordination between involved authorities, however, has hindered the study from being carried out expediently. In order to assist Government speed up study preparation, a preliminary study was carried out by a Bank consultant in September 1980, who recommended various actions which would simplify and improve tax collection, such as computerization. His conclusions and recommendations have been discussed with Government in March 1981 and actions to constitute a first step are expected shortly. F. PROJECT RATIONALE 1.27 The second urban development project will address public transport problems in Abidjan (building on the urban transport component of the first project) and urban management problems of the secondary cities in line with Government policy of regional growth and development of rural areas. The focus on urban transport and the exclusion of a shelter component in Abidjan under this project is a direct result of lessons learned from the first project: on the one hand, despite continued efforts to introduce new concepts, the Government has not yet progressed very far with the first project and the establishment of a definitive housing policy for the coming decade lies in the future. Therefore, financing of a further shelter component in either Abidjan or the secondary cities would at present be highly risky. However, the dialogue with Government officials should be pursued, and the proposed project, through studies and pilot programs, would establish permanent contacts and prepare the way for a third project focussing on secondary cities. On the other hand, the urban transport component has moved rapidly and significant advances in policy are evident. The time is therefore ripe to proceed with a second operation to consolidate and expand on progress made in the Abidjan transport sector during the first project.

13 The scope, scale, and pilot nature of the secondary cities component is dictated by the absence of sound pre-investment studies and implementation capacity in these towns. The criteria used in selecting the three secondary cities included in the project were size, economic potential, financial base, and diversity of problems. The cities include: Bouake, the second largest urban area in the Ivory Coast; Daloa, the third largest; and Korhogo, the fourth largest. However, so that the proposed project may conform with Government policy for a more balanced regional growth, it focuses on the two latter cities, whereas for Bouake, which is located in the area which most benefitted from public investment in recent years (para 1.03), the project would be limited to a study on public transportation. The secondary cities component would stress institution building and pre-investment studies together with pilot schemes to test new shelter solutions, as well as the capacity and capabilities of the local authorities to respond to the needs of their constituents. Il. THE PROJECT A. OBJECTIVES 2.D1 The project to be implemented during , has two main objectives: (a) to develop the public transport system throughout Abidjan and to improve circulation within low income areas outside the Central Business District (Plateau); and (b) to support the Government's policy of regional development through initiating investment studies for the development of secondary cities and f-nancing pilot programs in two of these cities: Daloa and Korhogo. Urban Transport in Abidjan 2.02 The basic principles adopted in project design have been derived from the lessons learned under the first project and include the following: (a) investment in urban transport infrastructure should be limited exclusively to traffic management measures designed to make more effective use of the existing road network; (b) priority should be given to measures which will improve bus operations within, or extend service to low income areas; (c) road construction should be considered only when specific links in the road network, especially the bus network, are missing or when special facilities for buses are required;

14 (d) special attention should be given to the needs of pedestrians, especially within low income areas; and (e) priority should be given to training in traffic management Emphasis on traffic management measures in project design has not only deferred major investments in urban transport but has also resulted in a reduction in design standards. Overall reductions in investments for the period were in the order of US$135 million, of which US$120 million are due to deferred infrastructure projects, and US$12 million as a result of reduced design standards of project components. Secondary Cities Program 2.04 Preparation of an extensive secondary cities component has been difficult primarily because of lack of experience on the part of the Ivorian authorities in determining appropriate investment programs for these areas and the complicated implementing arrangements required for such a component. Effective local authorities are almost non-existent in the Ivory Coast. In November 1980 municipal elections took place and local authorities have been progressively operational from early In order for both Government and the Bank to develop an appropriate secondary cities investment strategy, it was agreed that the scope of the secondary cities component be limited to the financing of a pre-investment programming study coupled with the development of municipal services and pilot programs in Daloa and Korhogo. To maintain risks at an acceptable level, the volume of works to be executed in Korhogo ($3.8 million) 1/ is significantly smaller than in Daloa ($7.0 million) 1/ where the project will take advantage of already existing services. Technical assistance will also be provided to (a) monitor these pilot programs, (b) assist in defining appropriate investment strategies and packages, and (c) develop management capabilities within local agencies. The results of the investment program under (d) above will form the basis for a possible third urban project focussing on secondary cities and smaller towns. _/ Total costs including contingencies.

15 - il - B. MAIN FEATURES 2.05 Main project items and their costs are summarized below (see detailed cost estimates in Annex 4). Base Cost US$ million % of Base Cost I. Urban Transport in Abidjan (a) Public Transport Improvement Measures (39.3) (53) (b) Traffic Management Measures (14.2) (19) (c) Technical Assistance (8.1) (11) ti. Secondary Cities TOTAL BASE COST CONTINGENCIES 29.8 TOTAL PROJECT COST The urban transport component comprises the following: (a) Introduction of a high speed express bus network through the construction of a new road link (Parc-a-Bois Road) and the reconstruction and improvement of the Western Bypass incorporating bus priority facilities and a main sewer (US$18.4 million); (b) Improvement of bus operations throughout Abidjan through upgrading of bus terminals and bus stops (US$5.4 million) and the construction of a bus depot (US$3.3 million); (c) Improvement of public transport access to the Banco low income development areas through the construction of primary roads complementing the existing network and linking with the boat lines operated by SOTRA (US$12.2 million); (d) Introduction of traffic management measures to improve circulation for pedestrians and buses in four high density low income communities--treichville, Marcory, Koumassi and Adjame (US$7.1 million); (e) Improvement of facilities for pedestrians including the construction of footbridges and the surfacing of footpaths (US$1.5 million);

16 (f) Continuation of traffic management programs within the CBD and the extension of these programs throughout the city to alleviate congestion and reduce accidents and introduction of road maintenance programs throughout the city, including provision of small equipment (US$5.6 million); and (g) Provision of technical assistance in traffic training management, road safety and public transport management (US$5.6 million) and in undertaking additional studies including detailed engineering for the proposed urban rail service (URS) (US$2.5 million). Main Features: Secondary Cities Program 2.07 The secondary cities program comprises the following: (a) Pilot improvement programs in Daloa and Korhogo including street improvements, the construction of access roads to various neighborhoods, the paving of market areas and the construction of small open markets, small community facilities and repairs to some primary schools (US$7.4 million); (b) Provision of equipment necessary to improve the delivery of municipal services in both cities (US$2.4 million); (c) Provision of technical assistance to monitor the pilot programs and to improve municipal management (US$0.8 million); (d) Provision of technical assistance to carry out (i) a preinvestment study for other secondary cities based upon the experiences of the pilot programs in Daloa and Korhogo and (ii) to update the land title register in Daloa (US$1.5 million); and (e) Provision of technical assistance to the Central Government for project monitoring (US$0.5 million). C. DETAILED FEATURES: URBAN TRANSPORT 2.08 Express Bus Network. A network of high speed non-stop bus routes will be developed in Abidjan, linking the peripheral high density low income communities of Abobo, to the north, and the Banco, to the west, with the major employment zones in Petit Bassam island. The express bus network will make use of existing freeways to reach Adjame north of the CBD--the East West Highway (financed under the first project) linking the Banco to Adjame; and the Abobo Expressway linking Abobo to Adjame--and the Western Bypass from Adjame to the Houphouet Boigny bridge will be improved and reconstructed to enable express buses to avoid the CBD and congestion within it. The reconstruction of the Western Bypass will be carried out within existing rights of way and will include widening to accommodate six lanes (of which two would be reserved for exclusive bus use) over a total length of 2.9 km, as well as construction of an incorporated main sewer section. A further 2.6 km of

17 new road (Parc-a-Bois Road) will be constructed to link the improved Western Bypass to the East West Highway. Work will include signalization and road marking. Access control facilities will be provided at the approaches to the Houphouet Boigny Bridge to provide priority for buses Improvement of Bus Operations. A variety of measures are proposed to improve conditions for buses and bus riders at stops, terminals and stations. About 20 bus laybys will be constructed along trunk bus routes to proviide adequate access for buses to bus stops. Passenger waiting areas at these stops and at a further 80 other sites will be improved by surfacing footways and by providing bus shelters and pedestrian barriers. Similar facilities will be provided at 25 bus terminals. The carriageway will be strengthened at bus stops not provided with laybys and bus only access roads will be constructed at the most important bus terminals. Pedestrian underpasses will be constructed at the Agban interchange station to link the bus station with the adjacent railway station, the inter city bus station and the Adjame market complex. A new bus depot will be constructed to accommodate 180 buses. This depot is needed to cater for the bus fleet increase under the already committed 1980/81 program. It will be located to substantially improve the Abobo-Petit Bassam express bus system Banco Primary Road Network. Some 8.8 km of roads will be constructed within the Banco development area to provide access for buses to low income communities living within the area and to cater to the expansion of the development area from 300,000 people to 600,000 people over the next five years. Although primarily designed and located for bus access, these roads wil:l serve general traffic needs but will be constructed under the project to half the ultimate, general traffic, design standard (dual two lanes with hard shoulders). Each penetration road serves a specific area and together they form a comprehensive network. The principal link in this network will be the 3.2 km section of road linking Yopougon-Attie East to the East West Highway which will provide access to the Banco for express buses, the 5.1 km section linking the new SOTRA boat terminal at Abobo-Doume with Yopougon-Attie East, and the 0.5 km section linking tuc Anyama to the Dabou Road Traffic Management Measures. Traffic management measures will be introduced in four high density low income areas--treichville, Marcory, Koumassi and Adjame. These measures are designed to improve circulation for pedestrians, buses and municipal service vehicles and to improve access to and conditions around the major market complexes in these areas and will include: (a) The surfacing of footpaths and the construction of footways; (b) The paving to simple design standards of roads to allow bus access; (c) Traffic control measures (traffic signs, lane markings, pedestrian crossings, etc.); and (d) junction improvements and setting of traffic signals.

18 Treichville is a high density residential community of around 115,000 people and contains one of Abidjan's major market complexes and commercial areas. Traffic congestion along the commercial axis (12th street) and around the market complex causes delays to buses throughout all working day. The market has expanded on to the surrounding footpaths forcing pedestrians on to the carriageway. The traffic management measures proposed for Treichville will restrict access to the 12th Street for cars and delivery vehicles, thereby reducing congestion and providing sufficient capacity for buses and pedestrians. Delivery will be permitted at off peak hours and vehicular access to the area would be improved by channeling traffic flow to streets parallel to 12th street Marcory and Koumassi are low income residential communities of around 240,000 people. Koumassi contains a major market and is subject to flooding during heavy rains. A basic network of asphalt roads will be provided in both areas for buses and refuse collection vehicles. In Koumassi some 2.8 km of raised pedestrian footways will be constructed to provide minimum all weather access roads to the market and the road network around the market will be equipped with traffic control measures and traffic signals to reduce congestion, avoid accidents, and improve bus flows Adjame is a high density low income residential area containing a major market complex, workshops, a bus interchange station (country buses and city buses) and important gbaka (informal minibus) station. The area is crossed by the main road, Nangui Abrogoua, linking the Plateau with Abobo. Traffic conditions along this axis are generally chaotic throughout the day, in part due to the activity around the market complex which flanks this road, and pedestrians are forced to use the carriageway by the extension of market activities into the footpaths. A one way traffic system will be introduced to the area making Nangui Abrogoua one way southbound with northbound flows using Avenue 13, which runs parallel to it. A two way two lane exclusive busway will be constructed within the right-of-way of Nangui Abrogoua to provide priority for buses and 16 junctions will be channelized and equipped with traffic lights to provide priority for buses, provide safe crossing points for pedestrians and improve traffie flow. Footpaths and footways will be widened and surfaced Pedestrian Improvements will be implemented in and around low income areas not included within the traffic management schemes. The measures include the surfacing of footpaths, the construction of steps where pedestrians cross steep sided valleys, the provision of pedestrian footbridges across heavily trafficked roads and also across streams and small river courses, the construction of footpaths on raised embankments in areas prone to flooding and the provision of street lighting along heavily used footpaths and at pedestrian crossing points Annual Traffic Management Programs, small in size, but complementary to those measures undertaken in para above, will be continued within the CBD and extended throughout the city in areas not covered by the project. These programs were initiated under the first project and include traffie control measures, junction improvements and traffic signals at localized or

19 isolated congestion points. They also concern the continuous monitoring of such measures and the modification or redesign of mesasures in the light of resultant traffic behavior. These programs will cover the period and actual schemes will be selected according to an agreed set of criteria such as time savings to public transport passengers, frequency and severity of accidents and costs Annual Road Maintenance Programs will be introduced throughout the city and will include patching of carriageways, the maintenance of traffic signals, traffic signs and carriageway markings. To date, maintenance of such facilities has been undertaken on an ad hoc basis and has been limited to the primary road network. The introduction of annual programs of preventive maintenance will ensure the correct functioning of traffic control and other traffic management measures throughout the city Technical Assistance will be provided in traffic management, road safety and public transport management and in undertaking additional studies including detailed engineering design for the surface urban rail service (URS). (a) Traffic Management Unit Technical assistance totalling 140 person-months to the Traffic Management Unit, which was set up under the first urban project within the National Bureau of Technical Studies (BCET) will carry out traffic planning feasibility studies, surveys and traffic counts (see Annex 1). Automatic equipment for traffic counting and survey vehicles are also included. The project will also study the institutional and financial framework which will enable the municipality of Bouake and, possibly, other major secondary cities, to develop and run an appropriate public transport system. Studies would more precisely define existing transport problems, forecast future demands, and study feasible alternatives. Technical assistance, totalling 100 person-months, to the Central Directorate of Public Works (DCTP) in Abidjan would be provided to supervise the construction of the Western Bypass, the construction of the primary road network in the Banco area, and to supervise works to be carried out in relation to the traffie management measures and annual improvement program. DCTP will also supervise annual maintenance programs. Each technical assistant will have an Ivorian counterpart and the Ivorianization program will be strengthened with the objective of phasing out technical posts by the end of The technical assistance component would include 42 person-months to develop training programs for Ivorian engineers and urban planners in the National School for Public Works (ENSTP) at Yamoussoukro. Tentative curricula were submitted to the Bank.

20 (b) Road Safety Agency (OSER) The number of road accidents has considerably increased in Ivory Coast over the last few years, primarily in Abidjan, where the rate of increase is greater than elsewhere in the country. Government is anxious to promote road safety and is preparing programs concerning the education of road users, the enactment and enforcement of road safety legislation and the promotion of safety features on both roads and vehicles. To carry out such actions, OSER was set up in 1979 under the responsibility of the Land Transport Central Directorate (DCTT) of the MPWr. It presently comprises one full time officer plus the part time assistance of the Director of the DCTT and statistical support staff. Technical assistance (1 man-month) is provided to OSER under the 1980 Highway Sector Loan for a driver training program. The proposed project will provide more technical assistance (20 personrmonths) to assist OSER in defining cost effective programs to reduce the number of persons killed or injured in road accidents in Ivory Coast, starting with Abidjan, Bouake, Daloa and Korhogo (see details in Annex 1.12). (c) Public Transport Management The rapid growth of SOTRA and the diversification of the types of services it offers has created a need for a transport planning unit to assist the management of the company in making the best use of its available resources. The SOTRA established a team in July 1980 which will be responsible for carrying out a medium term operational and financial strategy study and for advising management of the most cost effective methods of deploying SOTRA's resources, fare revisions and the coordination of SOTRA's services with other formal (urban rail service) and informal (gbakas, intercity taxis, etc.) transport modes (see Chapter V). The project will finance abroad training sessions as well as approximately 65 person-months of support experts, assisted by Ivorian engineers, accountants and statistical staff. (d) The Urban Rail Service (URS) In 1977 Governnent engaged consultants SOFRETU (Société française d'etudes de transports urbains) to undertake feasibility studies for an above-ground urban rail service (URS) for Abidjan along the existing right-of-way of the Abidjan/Ouagadougou line. In 1978 the consultants proposed a metro system linking Abobo with Treichville via a section in tunnel under the Voie Triomphale in the Plateau. At Government's request, this proposal was modified in 1979 to exclude the underground section and a second proposal at grade, and avoiding the Plateau, was presented in May Government is currently reviewing the revised project which is estimated to cost about $150 million and would provide an above

21 ground mass rail transit system (17.3 km) along the major northsouth corridor of the city. The URS has been evaluated by consultants SOFRETU in comparison with the express bus system along the same axis and appeared to be more efficient. The Governnent and the Bank, however, believed that more detailed analyses of the URS operation were necessary before any decision be taken. Studies which included (a) review of existing data and documents (b) economic evaluation of the rail service versus bus service, analysis of alternatives and levels of service, were subsequently carried out by independent experts under CIDA-financing. Study conclusions clearly indicated feasibility of URS for the period after Financing of additional studies including detailed engineering design has therefore been included in the project. Moreover, it was agreed that the Government would consult with the Bank on the viability, financing plans and operation timing of the URS as well as of any other large transportation project that could have a noticeable impact on the project. D. DETAILED FEATURES: SECONDARY CITIES PROGRAM 2.19 Pilot programs in Daloa (a) Improvement and repair of the existing streets in the Dioulabougou neighborhood. Dioulabougou is located in the center of Daloa and shelters some 18,000 inhabitants. Because of the site's features, the streets of Dioulabougou face severe erosion. The project will provide the construction of a 600 m throughway to ensure better links with the rest of the urban road network. In order to reestablish acceptable conditions for access and building security and to avoid possible fvture erosion, all downhill streets, totalling 2,600 m, will be trar.-.formed into pedestrian lanes, designed to minimize the impact of water run-off. (b) Construction of an 800 m access road to the Huberson neighborhood. Despite its convenient location to the city center, Huberson is one of Daloa's poorest neighborhoods, mainly because of poor accessibility and lack of public utilities. An 800 m access road will be built. Construction of a water main will be provided under the Bank's Second Water Supply project currently being prepared, and which will be carried out at the same time as this project. (c) Construction of access roads to new housing areas. To alleviate pressure on existing housing areas, new areas, totalling 2,950 plots, are to be opened by the municipality within the next two years. The project will provide gravelled access roads of 3,100 m and 5,700 m respectively, for the Abattoir and the Northern Extension areas.

22 (d) Paving of market areas. Retail market taxes are one of Daloa's most important sources of municipal income; their improvement and enlargement is therefore of high economic importance and is likely to have a strong impact on the municipality's revenues. Paving of 3.1 ha of existing non-treated surfaces at the Orly and central markets will be included in the project. Also included will be construction of a new paved market place of 1.0 ha in the new Abattoir area Pilot programs in Korhogo (a) Improvement and repair of existing streets in the city center. The street network in Korhogo's central area is in extremely bad condition, particularly around the Central Market. Besides, the central area is poorly linked to the city's northern neighborhoods which are isolated by a major ravine currently being channelled under a project financed by the European Development Fund (FED). The proposed project will provide for reconstruction of 2,100 m of paved and gravelled roads. (b) Paving of Central Market and country bus station. The Central Market plays an important role as a regional economic center and generates heavy passenger traffic, but operates under unsatisfactory sanitary conditions. Funding is, therefore, provided for the paving of both the market parking and the country bus station, covering 2.0 ha. (c) Construction of five neighborhood market areas. Besides the Central Market, there are several neighborhood markets which are poorly accommodated and run under unsatisfactory sanitary conditions. The project will provide funds for paving of five of these market areas, totalling about 2.5 ha. (d) Rehabilitation of community facilities. The proposed project will include the rehabilitation of a small urban clinic to be accommodated in a reconverted building of the former Central Hospital, repairing and renovating existing primary schools, and construction of a building for a social center. Development of Municipal Services 2.21 Municipal services in both Daloa and Korhogo require major strengthening to enable them to meet their responsibilities. To achieve this objective, the project will provide both municipalities with: (a) Technical Assistance totalling 60 person-months: (i) To reorganize their technical departments, involving assignment of responsibilities to individual services within departments and appointment of middle-level supervisors for specific activities;

23 (ii) To train maintenance workers within the technical departments. Training will focus on vehicle repair and maintenance, use of tools, and programmed maintenance procedures for drainage canals, public buildings and other facilities; (iii) To supervise the pilot programs in liaison with the Regional Directorate of Public Works (DRTP) in Daloa and Korhogo; (iv) To improve collection of taxes and financial management, an expert will spend one year in each municipality reviewing revenue collection procedures including assessment and rates, financial practices and budgetary planning, and recommend possible changes in methods to be implemented within the existing overall policy framework; and (v) To strengthen the efficiency of the municipal finance offices through the establishment of revised procedures for land registry, plot allocation and developing a system of collections for project beneficiaries. (b) Purchase of equipment 1/ consisting of: (i) One grader, one loader, one vibrating roller, two dump trucks, a water tank truck, three garbage compactor or skip trucks and one bulldozer, will be purchased for Daloa; (ii) One grader, one loader, one vibrating roller, one tractable water tank, one truck and four vehicles, will be purchased for Korhogo; (iii) Tools for the technical departments of both cities. These will include tools for vehicle repair, carpentry, metal works and construction, and will be used by personnel in on-the-job training programs; (iv) Equipment for municipal finance offices, including furniture, filing cabinets, typewriters, calculating machines, etc. (c) Rehabilitation and expansion of the municipal garage for maintenance vehicles in Daloa and construction of a new small garage in Korhogo. (d) Purchase of materials. To allow the municipal services in both cities to be run efficiently from the beginning, the project will provide funds for purchases of cement, gravel, steel, fuel, spare 1/ Equipment would be purchased by the MPWT for the DRTP and given to the municipalities. MPWT would also ensure maintenance (see para 4.05).

24 parts, and other necessary materials during the first two years. Amounts allocated to the municipality of Korhogo will be proportionally higher than those given to the municipality of Daloa, as the latter already has a relatively well organized revenue system. Pre-investment programming study 2.22 The objectives of the pre-investment programming study for secondary cities will be to (a) establish a framework for a nationwide coherent urban development strategy, and (b) prepare the ground for specific investments within this framework. The study will also define investment criteria and institutional arrangements for effective implementation. The development of municipal services in Daloa and Korhogo and the monitoring of the pilot programs in these cities will provide a practical basis for the investment programming effort. The study will be carried out over a two-year period (see detailed description in Annex 1). Miscellaneous studies 2.23 To improve property tax collection and to strengthen municipal finances in Daloa the project will provide for updating of the existing land title register (cadastre). Technical assistance to Central Directorate of Urbanism (DCU) 2.24 To assist the DCU in pursuing the monitoring of the first project, to participate in the monitoring of the pilot programs and to supervise the preparation of the pre-investment study, the project will provide technical assistance totalling 35 person-months. III. COST ESTIMATES AND FINANCIAL ARRANGEMENTS A. COST ESTIMATES 3.01 Total project costs amount to $104.0 million (CFAF 26,000 million) of which $51.00 million (CFAF 12,800 million) or 48.8% are foreign exchange costs. All taxes and customs duties are included and amount to $31.2 million or 30% of costs. Provisions for physical contingencies and price escalation are included and amount to $29.8 million (CFAF 7,450 million) representing 28.6% of total project costs Base costs of all components were updated under conditions prevailing in Ivory Coast during March 1981 in CFA francs exchanged to US dollars equivalent at a rate of US$1 = CFAF 250. Costs of civil and traffic engineering works were estimated on the basis of detailed engineering (see para 4.01). Land acquisition and relocation of networks have already been carried out and are therefore not included in base costs as no financial outlays will be needed for them under the project. SOTRA will incur no financial outlays for

25 land acquisition for the bus depot. The land will be granted by Government as a norn-monetary counterpart contribution. Services, goods and equipment for project purposes will be subject to customs duties and internal taxes, therefore base costs include taxes. The average cost per person-year of consultants" services (including salary, social charges and taxes, fees, international travel and local allowance) is estimated according to the official Ivorian fee scale at about $140,000 (see details in Annex 1 on Technical Assistance). Serviices of direct key counterpart staff are not included in the base costs since civil servants are already appointed and paid according to the civil serv:lce salary scale by MPWT, MCU and/or other implementing agencies. Other incremental costs included within the project cover Project Unit running costs, audio/visual aids, traffic measurement and ancillary office equipment and fellowships Physical contingencies for works and equipment were estimated at 10% of base costs for both the transport and cities component. The project costs incl-ade price contingencies of 27.5% to cover anticipated price increases during the project implementation period ( ). Domestic inflation was estimated at 12% annually whereas foreign inflation was expected to develop at 9% in 1981, 8.5% in 1982, and 7.5% thereafter. Summary cost estimates are given in the table below. B. FINANCIAL ARRANGEMENTS 3.04 A Bank loan of $51.0 million (CFAF 12,800 million) will finance the foreign exchange requirements, or 48.8% of total project costs. The remainder of the financing would be assured by a national government contribution of $53.0 million (CFAF 14,800 million) from the Special Equipment and Investment Budget (BSIE). The Government of the Ivory Coast will be the Borrower. The Government, through the Ministry of Finance, will make the proceeds of the loan and its own contribution available to the Ministry of Public Works, Transportation, (MPWT) and the Mir'stry of Construction and Urbanism (MCU) in the form of grants since costs will not be directly recovered from the final beneficiaries Road user charges which consist of taxes on fixed operating cost items, gasoline and diesel oil (36% and 22% respectively of the consumer price) will balance the investment budget for the transport component. An asse!ssment of the current road user taxation policy will be carried out under the Bank Highway Sector Loan which has already been approved. In the secondary cities component pilot programs, technical assistance and equipment for development of municipal services will be passed on as a grant. All possible attempts will be made to recover the cost of the two pilot programs through existing legal means but actual recovery remains in doubt. Property tax records are traditionally weak and there is a high risk that cost recovery in both cities will be poor and difficult to implement even though both cities have an established land title register on which taxation could be based (see para. 2.23). Mechanisms will be set up and tested during implementation of the pilot operations.

26 IVORY COAST Second Urban Project TABLE III.1 Summary of Project Costs (-Base Cests as at March 31, 1981) CFAF millions US$ millions % of Local Foreign Total Local Foreign Total Foreign Cost Exchange (a) Transportation Public Transport Improvement Measures Express Bus Network (5.5.km) 2,460 2,140 4, Bus Operation Improvements ,340 3, Banco Primary Road Network (8.3 km) 1,670 1,370 3, Depot for the Bus Company (SOTRA) Traffic Management Measures Treichville, Koumassi, Marcory and Adjame districts , Pedestrian Improvements Traffic Management and Road Maintenance and small equipment , Technical Assistance Traffic Management Units ) (DRTP-BCET, ENSTP) ) , Safety Programs (OSER) Bus Company (SOTPA) ) Additional studies and detailed Engineering for the Urban Rail Service (17.3 km) (b) Secondary Cities Sub-total (a) 8,095 7,295 15, Pilot Program in Daloa , Pilot Program in Korhogo Equipment for Municipal Services in Daloa Equipment for Municipal services in Korhogo Technical Assistance to Municipalities Technical Assistance to DCU Pre-Investment Study Sub-total (b) 1,450 1,710 3, (c) Contingencies Physical ,850 3, Price escalation 2,705 2,895 5, Sub-total (c) 3,655 3,795 7, GRAND TOTAL 13,200 12,800 26,

27 Government will lend about US$4.4 million to the bus company (SOTRA) co build a depot for 180 buses (see para. 2.09). Relending terms will be ;he same as for the Bank loan. Exchange risks will be borne by S3TRA. Final agreement on relending conditions has been obtained at negotiations (see para. 7.02). Costs will be recovered through bus fares. The technical assistance to SOTRA would be passed on as a grant. The financial plan is shown in the table below. C. PROCUREMENT 3.07 Contracts for civil works and supply of equipment for (i) the E!xpress bus network (US$25.5 million); (ii) the Banco road network (US$18.4 million); (iii) the SOTRA bus depot (US$4.1 million); and (iv) traffic improvements in Treichville, Adjame, Koumassi/Marcory (US$9.6 million), would, as in the first project, be split into civil works and equipment and be awarded on the basis of international competitive bidding in accordance with the Bank Group-s guidelines for procurement. Contracts for operational improvements -in bus operations, pedestrian facilities, improvements and maintenance of streets and sidewalks, which will represent an aggregate value of $17.8 million, will be grouped to permit efficient bulk procurement and will also be awarded on the basis of international competitive bidding in accordance with Bank guidelines. For bid evaluation purposes under international competitive bidding, domestic manufacturers will be given a preference of 15%, or the level of applicable customs duties, whichever is lower. Contracts for pilot programs in Korhogo and Daloa will be divided into small components in order to encourage bids from Ivorian enterprises. Feasibility of such schemes has already been proven under the First Urban Project where large parts of the upgrading works in Abidjan, particularly in the Port Bouet II component, were procured in this way. Contracts will be awarded on the basis of competitive bidding under local procedures which were reviewe,l and are satisfactory to the Bank. These contracts, which will be too small to attract overseas bidders, are within the capacity of the local medium size contractors. Their aggregate value amounts to $3.6 million for Korhogo and $6.8 million for Daloa Small items costing less than $50,000 each and which would total no more than $2 million, will be purchased after solicitation of quotations from at least three suppliers. Works for relocation of water pipes, electric and telephone lines and lighting, which are not Bank financed, will be carried out by the respective utility companies, in the way which proved successful under the first urban project. D. DISBURSEMENTS 3.09 Disbursements would be made on the basis of: (a) 45% of total expenditures for civil works and equipment for the transport component;

28 Table III.2: FINANCING PLAN -/ I B R D B S IE Total IBR Cost Amount % Amount % Public Transportation Express bus network 6,550 3, , Operational improvements 1, , Banco road network 4,600 2, , Depot 1, Traffic Management Measures Four districts 2,410 1, , Pedestrians Maintenance 1, , echnical Assistance Traffic management units OSER 1,780 1, SOTRA URS Sub-total (a) 21,620 10,380 11,240 Secondary Cities Pilot Program in Daloa 1, Pilot Program in Korhogo Municipal services in Daloa Municipal services in Korhogo Technical Assistance Pre-Investment Study Sub-total (b) 4,380 2,420 1,960 TOTAL COST 26,000 12, , US$ million equivalents (Totals only) / Cost include physical and price contingencies and are given in CFAF millions.

29 (b) 50% of total expenditures for civil works and equipment for the pilot investment programs; and (c) 60% of total expenditures for consultant services and studies. The schedule of estimated disbursements is given in the table below. All disbursements should be fully documented Technical assistance contracts and s:udies up to US$1 million of foreign costs, or 2% of total projec: costs, for consultant services will be financed retroactively from July 1, 1980: (i) to prepare within the Traffic Management Unit of BCET in order to prepare the first year's program of traffic measurement measures; and (ii) to set up the Traffic Planning Unit within SOTRA. Table I11.3 Bank Quarter Bank disbursement Cumulative disbursements % Cumulative l'y ending each quarter end of quarter disbursements (US$ million) (US$ mtillion) 1982 March 31, June 30, Sept. 30, Dec. 31, March 31, June 30, Sept. 30, Dec. 31, March 31, June 30, Sept. 30, Dec. 31, March 31, June 30, Sept. 30, Dec. 31,

30 IV. MANAGEMENT AND IMPLEMENTATION A. STATUS OF PROJECT PREPARATION 4.01 Project studies were carried out by the Traffic Management Unit of the National Consulting Agency (BCET) assisted by consultants BCEOM and Halcrow Fox for the transportation component, and for the secondary city component by BCET assisted by consultant SCET for Korhogo. The Daloa subproject was prepared by consultant BCEOM. (a) Public Transport (i) The detailed engineering for the upgrading of the Western Bypass and construction of the Parc-a-Bois Road from the East-West Highway to the Western Bypass is totally completed. (ii) Minor improvements to bus operations will not require major capital works. Preliminary engineering and costing have been completed for footbridges and access roads. Detailed designs of works to be carried out during the first year of project implementation have been submitted at negotiations. It was agreed with MPWT that detailed designs for the following years would be submitted according to the year of implementation. (iii) Detailed designs and bidding documents for the primary road network of the Plateau du Banco have been submitted before negotiations. (iv) The 180 bus depot of the SOTRA bus company is a standard facility. Eight depots have already been built in Abidjan. Designs were reviewec by the Bank and are considered to be satisfactory. (b) Traffic Management The project would finance a four year program of such traffic measures and specific traffic management plans for four low income areas. It would not be appropriate to complete detailed designs for the improvement of bus operations too far in advance of scheduled implementation. Should actual costs prove to be more than appraisal estimates, quantities would be adjusted (e.g. roads to be patched) to fit within the budget. (c) Technical Assistance and Studies Terms of reference for technical assistants, including positions to be filled and duration of their assignments are finalized

31 (see Annex 1). Results of the CIDA feasibility study for the urban rail service in Abidjan have been discussed at negotiations. Terms of reference for the financial studies for SOTRA have been submitted at negotiations; (d) Secondary Cities A draft of the terms of reference for a pre-investment programming study has been prepared by the Central Directorate of Urbanism (DCU) of MCU and submitted at negotiations. Detailed engineering designs and bidding documents for Daloa and Korhogo have also been completed. B. EXECUTION 4.02 The Ministry of Public Works and Transportation (MPWT) and the Minïstry of Construction and Urbanism (MCU), will have primary responsibility for execution and coordination. The responsibility for execution of the project components will lie with agencies of MPWT and MCU as outlined below: Component Agency Responsible Pub:Lic transportation in Abidjan Upgrading of the Western Bypass Construction of Parc-a-Bois road Banco primary road network Imp-rovement of bus operations and construction of a bus depot. Central Directorate of Public Works (DCTP) assisted by BCET and DGTX for supervision of civil works. Bus Company (SOTRA) Traffic management in Abidjan Traffic improvement in the four districts, pedestrian network, street lighting and a three-year maintenance program for the entire city. Training in traffic engineering Assistance in technical studies Assistance to public transportation in Bouake Assistance in work supervision Assistance to SOTRA Assistance to the National Road Safety Agency (OSER) Urban rail service study Central Directorate of Public Works (DCTP) assisted by BCET and DRTP Abidjan for supervision of works. National School for Public Works (ENSTP) BCET BCET in liaison with the Municipality of Bouake DCTP SOTRA Central Directorate of Land Transportation (DCTT), through its agency OSER MPWT assisted by CIDA consultants

32 Component Agency Responsible Secondary Cities Pre-investment programming studies Development of municipal services Pilot programs Central Directorate of Urbanism (DCU) assisted by BCET and consulting firms (to be selected) Municipality of Daloa Municipality of Korhogo Regional Directorates of MPWT and MCU in Daloa and Korhogo (DRTP) in liaison with the Technical Services to be created under the project Upon project completion, the various project elements will be managed and maintained as follows: Agency Responsible Project Elements for Maintenance Origin of Funds Western Bypass MPWT through Directorate Current budget fed Banco primary and of Routine Road Maintenance by road user charges. main streets City streets, traffic Municipality of Abidjan with Municipal budget and signalization assistance from MPWT current budget. SOTRA SOTRA Bus fares Pilot program in Municipality of Daloa Municipal budget secondary cities Municipality of Korhogo Municipal budget These arrangements have been confirmed during negotiations and agreement obtained that Government will ensure adequate provision in the budget of MPWT, MCU and appropriate agencies to assume the maintenance of each facility upon its completion Project execution and coordination will not require the creation of new institutions but will aim to develop the existing ones. Routine project coordination will be carried out by the MPWT Cabinet composed of two advisers already in place, one for public transportation, and one for infrastructure works. The MPWT and MCU Cabinet's will operate as an ad hoc coordinating group which will actually assume the financial and technical management of the project and will report progress to Government and to the Bank. In particular, this group will maintain close contacts with local authorities for the secondary cities program through the General Directorate of Regional Administration (DGAT) of the Ministry of Interior. The DGAT organizes and supervises the functioning of municipalities in terms of staff, investment and operating expenditures, budget and other administrative tasks but does not have a tao rore to play in the day-to-da-y e cztion of specifi cz urbax deel opxeent programs. The DGAT and Municipalities participate in the deliberations concerning regional development but do not initiate policies and programs in the urban sector.

33 The secondary cities component will permit the development of municipal services in Korhogo and Daloa. In each of these cities the Director of Municipal Technical Services will be assisted by a technical adviser who will be provided under the project. The Technical Service will be responsible for: (a) coordination of work performed by contractors and the public enterprises SODECI (water) and EECI (electricity);(b) management of municipal maintenance services; and (c) preparation of annual municipal investment programs and budgets for maintenance expenditures. The Accounting Service will also be adequately strengthened by a technical adviser in order to (a) record project expenaditures; (b) improve local tax collection; and (c) organize effective municipal budget management. The technical advisers and Ivorian technical staff for both the technical and financial services will be seconded from the MCU and placed at the disposal of the municipality, whereas unskilled workers would be directly recruited by the municipality. In a similar way, the technical equipment purchased under the project will be on-lent to the municipal technical services by the MPWT. In order to improve overall performance, a coordination committee will be created in Daloa and in Korhogo. It will be under the chairmanship of the Mayor and will consist of representatives from the MuniciDal Council, the ministries involved, and the related technical services. C. IMPLEMENTATION 4.06 Project implementation will take four years; the implementation schedules (attached) are based on the experience gained under the first project and on the status of preparation of the proposed project. Management Training 4.07 The Government has been aware for quite a while of the need to bring the administration closer to the population of secondary cities, to strengthen local decision power and to imprc. local urban management capacities. A municipal law was passed in October 1980; subsequently municipalities were constituted in, besides Abidjan, 27 secondary cities, among which Daloa and Korhogo. Municipal elections were held in November The project aim at the development of municipal services in Korhogo and Daloa able to progressively program, study, implement and manage financial and technical tasks in their respective cities. Municipal services will be staffed by technical assistants financed by the proposed project who will train Ivorian counterparts using the works to be carried out as vehicles for developing a municipal task force The dearth of skilled manpower in secondary cities is a handicap which prevents implementation of large and complex components. The pilot programs financed under the proposed project will consist of minor operations suc.h as garbage collection, drainage and road maintenance, rehabilitation of cornmunity facilities, etc., which are expected to provide excellent training for the Ivorians. In parallel, courses will be developed in the ENSTP of Yamoussoukro offering civil engineers an opportunity to acquire knowledge coupled with experience in traffic management through direct participation in the execution of the transport component of the project. Further possible formal training which might be needed by municipal staff will be identified uncler the proposed pre-investment study (see para and Annex 1.23).

34 IVORY COAST SECOND URBAN PROJECT URBAN TRANSPORTATION COMPONENT IMPLEMENTATION SCHEDULE Execution Commitments (total costs in CFAF million) Total PUBLIC TRANSPORTATION - Express Bus Network xxxxiiii 0oooooooo OOGOOOO ,500 1,650 1,820 1,410 6,550 - Bus operation improvements xxxxiiii oooooooo oooo ,890 - Banco primary road network xxxxiiii oooooooo _ 1,260 1,390 1, ,600 - Depot for Bus Company xxxxxloxxxxxxoooo 0000 _ ,100 TRAFFIC MANAGEMENT MEASURES - Treichville, Koumassi, XXXXoooo 1 oooooooo oooooooo _ 2,410 Marcory and Adjamé Districts - Pedestrian improvements xxxxiiii Improvement and maintenance xxxx o oooooooo ,960 TECHNICAL ASSISTANCE Traffic management units Safety Programs ) ,780 Bus Company ) DETAILED ENGINEERING URS ,590 6,810 5,940 2,950 21,620 Total costs include: Base costs as at March 31, 1981 Physical contingencies 10% Price escalation 1981 domestie 12% foreign 9.0% % 8.5% xxxx Preparation work % 7.57 IIII Tendering % 7.5% oo~o (Execution % 7.5% 000(Implementation1952%75

35 IVORY COAST SECOND URBAN PROJECT SECONDARY CITIES COMPONENT IMPLEMENTATION SCHEDULE Execution _ Co4 mitments (total costs CFAF million) Total Pilot Program in Daloa xxxxiiii oooooooo oooooooo Pilot Program in Korhogo xxxxiiii oooooooo oooooooo Municipal Services in Daloa xxxxxxxx Municipal Services in Korhogo xxxxxxxx oooooooo oooooooo oooooooo Technical Assistance Preinvestment Study ) Miscellaneous Studies) ,880 1, ,380 e xxxx Preparation work IIII Tendering (Execution 0000 (Implementation Base costs as at March 31, 1981 Physical contingencies 10% Price escalation: 1981 domestic 12% foreign 9.0% % 8.5% % 7.5% % 7.5% % 7.5%

36 D. SUPERVISION AND MONITORING 4.09 Supervision by Bank staff during the four year implementation period will require about 90 person-weeks, starting in July It will involve specialists in public transportation, traffic, civil works, urban affairs, financial analysis and municipal management. Besides, about 15 person weeks will also be required to supervise the pre-investment programming studies for secondary cities. Additional expertise of about 10 persons-weeks will be required to organize and participate in the training program for traffic management and urban planning in the ENSTP. About 40 persons-weeks will also be provided to evaluate the feasibility of the Abidjan urban rail service and the results of the medium term financial strategy study for SOTRA. Monitoring 4.10 A monitoring system will be designed to ensure that data essential for project execution are provided to project managers and that design and execution of future projects will benefit from the experience gained through this project. SOTRA's financial performance will be closely monitored by services of the Ministry of Finance. Transportation (a) The Traffic Management Unit created under the first project within the Central Bureau of Technical Studies (BCET) will monitor the traffic components of the proposed project. Indicators monitored will include: change in modal split, passenger and vehicle flow at several control stations, service levels and waiting lines, bus journey times, average waiting time during peak hours and diesel consumption along specified routes. (b) The Transport Planning Unit recently created within the bus company (SOTRA) will monitor the results of the immediate action plan and those of the medium term plan to consolidate SOTRA-s financial situation. The key operational indicators would include manning ratios, annual mileage per bus and passenger trips. The financial indicators would comprise working, operating and debt/equity ratios, operating surplus/deficit, operating expenses per passenger trip, total expenses per passenger trip and total surplus/deficit. Secondary Cities Program Due to the delay in implementing the upgrading component of the first project, the monitoring system created under the first project within the Central Directorate of Urbanism (DCU) has only partly fulfilled its terms of reference. The DCU has covered the technical preparatory tasks, but has not been able to monitor the impact of the upgrading programs on existing populations in Abidjan although the base line surveys have been completed satisfactorily for all upgrading areas. As agreed on at negotiations the DCU

37 will pursue its tasks up to completion of the first project and will participate in the monitoring of the pilot program for secondary cities. The consulting firm which will carry out the pre-investment programming study for seconidary cities will closely monitor the pilot programs. Moreover, DCU will assign a special team to address the following specific issues: (a) Appropriateness of structure of the urban services created under the project to carry out more effective technical and financial city management, including adequacy of maintenance standards. (b) The project's impact on urban development as a whole in project cities, particularly on land tenure arrangements, property transfers and promotion of small contracting businesses. (c) Effectiveness of the existing taxation system to recover infrastructure costs, more especially the performance of tax collection for betterment and property taxes. (d) Adequacy of new management systems in the general administrative framework of the Ivory Coast, particularly as regards relationships between local authorities and Central Government. E. FINANCIAL MANAGEMENT AND AUDITS 4.11 The overall financial management and accounting of the Bank loan will be the responsibility oe the Government s debt management agency, la Caisse autonome d'amortissement (CAA). Created in 1959, the CAA serves as a fiscal agent for all external loans either to Government or guaranteed by it, as well as for domestic public borrowings; the former includes Bank, other multilateral, bilateral aid and e"iort credits, and the latter includes many official and private loans to parastatal and private borrowers. CAA is also acting as a depository for housing corporations and for specific funds such as those earmarked for hydraulics, sewerage and housing All contracts financed under the project will be prepared by the Central Directorate of Contracts (DCM) within the Ministry of Finance, after bids have been evaluated by the respective agencies and after formal approval of the evaluations by the National Committee for Bids, for contracts amounting to more than $5 million. Contracts then receive technical approval from MPWT, MCU respectively and financial appraisal from CAA for Bank loans and BSIE for local funds Separate project accounts will be maintained by each implementing unit and MCU advisers. Quarterly progress reports will be prepared by the Ministries Cabinets and furnished to the Bank, foeussing on, among other things, policy, physical, contractual and financial progress of the project including project performance related to key performance indicators.

38 Assurances have been obtained at negotiations that no later than three months after the close of each Government fiscal year, suitable financial statements including cash flows of project sub-accounts and year-end balance sheets reflecting the financial operations and position of the project entities will be made available to the Bank. These financial statements will be audited by an independent auditor acceptable to the Bank and its report will be made available to the Bank no later than eight months after the close of each Government financial year Upon project completion Government will provide all the information requested for preparation of a Project Completion Report. V. THE BUS COMPANY: LA SOCIETE DES TRANSPORTS ABIDJANAIS (SOTRA) A. ORGANIZATION 5.01 SOTRA was established in 1960 with capital provided by Renault (65%) and the Ivorian Governnent (35%) with the objective of making a monopoly of provision of passenger transport in Abidjan. It was one of the earliest public transport undertakings set up in West Africa. SOTRAs monopoly to provide such public transport services began to take effect in 1964 when it was sufficiently equipped with buses to replace the collective taxis which had previously fulfilled part of this role. In 1974 it had a total capitalization of CFAF 1.67 billion ($6.7 million) of which CFAF 0.44 billion ($1.8 million) was equity capital and CFAF 1.23 billion ($4.9 million) was loan capital, giving a debt/equity ratio of 2.8:1. Since that time, SOTRA has grown markedly and currently operates 44 routes and 616 km of network on its urban services, together with certain express services and services for 'taxi-baggage" and university students. Beginning early December 1980, SOTRA will also run a boat service operating two routes between Banco, Plateau and Treichville. SOTRA's fleet is structured to meet these differing services. The fare structure is very simple, consisting of one basic charge for normal services with a further charge for long trips. There are separate charges for express and "taxi-baggage" services whilst students and uniformed government workers travel free in accordance with government policy. Other public sector workers also travel at reduced rates. Although the Government makes a contribution towards this travel, this contribution covers neither the costs nor the "fare value" of the journeys taken. By 1979, SOTRA was capitalized at a total of CFAF 8.5 billion ($34 million) with a somewhat unsatisfactory debt/equity ratio of 8.5: equity capital amounts to CFAF 1.8 billion (US$7.2 million) SOTRA is an undertaking which operates to very high standards. Its urban fleet of over 700 buses in 1980 is standardized on a Renault single-deck bus with a two-man operation. It has good depot facilities which have grown rapidly with the fleet. It operates a further 340 vehicles on its special zeseic.es relating to express, "taxi-baggage" and servic.es tor university students. The new boat service will start by operating 16 small 96 person capacity boats.

39 SOTRA is controlled by a Board ("Conseil d'administration") which includes various shareholder representation. 1/ The chief officer is the Director General, who has a deputy Director General and six other directors responsible for various aspects of SOTRA's activities. This management structure appears sound for SOTRA's purposes. SOTRA has a staff of about 6,465 consisting of 3,693 employees for traffic operations, 440 employees for scheduling and administration of traffic operations, 1,839 employees for mechanical and engineering services, and 493 employees for general and financial administration. The overall employee/bus ratio in stands at 6.2 and has fluctuated only slightly around this mark in recent years. For a two-person crew operation, this manning ratio must be regarded as reasonably satisfactory, particularly in traffic operations, but the engineering activity appears to be rather high at 1.76 engineering employees per bus, anc. the administration employees might also be regarded as being on the high side. B. FINANCIAL POSITION 5.04 Until 1974, SOTRA's operations thrived and produced satisfactory trading figures, but since that time, there has been a steady decline in performance which is now accelerating rapidly (see Table V.1 below). SOTRA's troubles began in 1975 when that year's results produced an overall trading loss. This was basically because inflationary cost increases were not covered by corresponding increases in revenues. It is likely that swift action on faire levels could have recovered the position, but in the absence of such aclion the scene was set for the deterioration that was to follow, for a variety of reasons Between 1976 and 1977, SOTRA's fleet increased by 80% and had a dramatic effect on unit operating and financial performance indicators as illustrated in Table V.1. Average daily passenger trips per bus, which had stood on average at 1,036 in 1969, had fallen to 866 in 1976, with a sudden further drop to 544 in Thus, in 1977 each bus was carrying only 63% of the passengers it carried the previous year. This was because the surge in the supply of physical resources was not matched by the proportionate provision of additional service kilometrage nor by passenger demand. This was probably due to the inability of SOTRA's management to plan such a rapid increase as efficiently and effectively as its existing much smaller fleet. The fleet expansion was too rapid for the SOTRA absorptive capacity. Thus each marginal bus was significantly less efficient than the average bus in the existing fleet. At the same time it probably indicates an increase in standards of service resulting in greater frequencies and reduced loading factors which could have been used by SOTRA as a justification for further tarciff increases. However, SOTRA's ability to increase fares depends on Government approval and, for political reasons, fares have been restrained. The most recent increase from CFAF 40 ($0.16) to CFAF 50 ($0.20) in September 1976, and to CFAF 60 ($0.24) in January 1979 have proved to be inadequate. 1/ Renault Group 39.75%, Government of Ivory Coast 60.2%, various 0.5%.

40 The deterioration is further illustrated by the fact that between 1976 and 1980 the total bus fleet increased by 149% while during the same period total live kilometrage run by SOTRA only increased by 87%. Put another way, 623 buses were added to the fleet in this period for a total additional kilometrage for all services of 21,800,000, an average of 35,000 kms per bus. The overall average kilometrage per bus in 1976 was 60,000. Although these figures are slightly distorted because they include special services, they are indicative of the problems arising through the rapid expansion of SOTRA's fleet. This expansion must be seen against a background of Abidjan's peculiar geography, where long journeys are made necessary by the lagoons and the two bridges from the 'Plateau' to the major employment centers are crucial bottlenecks which cause heavy traffic congestion Thus, SOTRA's deteriorating operating position can be attributed to: (a) A steady inflationary increase in operating expenditure which has not been matched by adequate tariff increase because of Government policy; (b) A rapid expansion of the fleet which, because of the speed of expansion, management was unable to translate into the operating performance previously experienced; (c) A drop in productivity resulting from (b) above giving rise to increased unit costs The financial effect of the decline is manifested in the total deficit position as summarized in Table V.1 and set out in more detail in Annex 2, Tables 4 and 5. A surplus of CFAF 74 million ($0.30 million) in 1974 had become a deficit of CFAF 4,792 million ($19.2 million) in 1978/79. The total cost per passenger trip rose by 133% from CFAF 36 ($0.14) to CFAF 84 ($0.34) in this period and the working ratio deteriorated from 0.85 to 1.14 at the same time Since practically the whole of the capital investment program up to the present time has been financed by loans (see Annex 2 para. 7 for details), the debt/equity ratio has changed from 2.8:1 in 1974 to 8.5:1 in 1978/79. Whilst this situation is conventionally unsound in accounting terms, it is perhaps more acceptable in a public sector situation where loans are guaranteed by government, provided that sufficient earnings are generated to service the debt, which was not the case for SOTRA This increasing gap between income and expenditure was made good by Central Government subventions almost on a default basis rather than as a planned system of subsidization. However, these shortfalls tended to be made good retrospectively, leaving SOTRA with a cash flow problem which forced the company to have recourse to short term borrowing, the servicing of which exacerbated the financial position. Interest payments on short term borrowing rose from a negligible amount in 1976 to CFAF 454 million ($1.8 million) in 1978/79, equal to 2.5% of total expenditure (see Annex 2). The Ministry of Finance is currently reviewing the administration of subsidy payments with a view to improving the timing of such payments in order to improve SOTRA's cash flow.

41 Table V.1 SOTRA KEY OPERATIONAL AND FINANCIAL INDICATORS (Selected Years) / / /7S A. Operating Indicators Manning ratios Average annual km per bus 57,935 72,900 63,418 60,088 42,000 44,554 45,156 Total passenger trips a/ (in millions) Daily passenger trips per bus 879 1, / / /79 B. Financial Indicators Working ratio b/ Operating ratioc/ Debt/equity ratio 2.8:1 1.5:1 8.1:1 9.2:1 8.5:1 Operating Surplus/(Deficit)dl (CFAF millions) 628 (294) (259) (1,348) (1,790) Total Surplus/(Deficit) (CFAF millions) 74 (840) (1,377) (3,776) (4,792) Ope!rating expenses per passenger trip (CFAF) Total expenses per passenger trip (CFAF) a/ 9 raonths only because of a change in SOTRA's accounting period. b/ The relationship of working expenses (i.e. excluding interest and depreciation) to total revenue. c/ The relationship of total expenses (i.e. including interest and depreciation) to total revenue. d/ Excluding interest and depreciation.

42 The deterioration of the financial position of SOTRA came as no surprise to that organization. Indeed, SOTRA has a soundly based management and financial information system. Budgets are set up for various cost centers (e.g. individual depots) and are monitored on a monthly basis. Variances are identified and reported. The year-end accounts are available in good time and it is, therefore, relatively easy to trace the evolution of SOTRA's performance. As mentioned above, present problems stem from the Government policy of injecting more and more SOTRA buses into the system in order to meet the growing demand for transport services, without too much regard for the overall financial consequences of this policy. However justified the Government may feel its policy to be on social and other grounds, the facts suggest a somewhat unstructured approach and that the present network may not optimize fleet utilization. Immediate action is required to reverse the present adverse trends stemming from this position (see para.5.14) The facts of the present situation have been readily agreed by SOTRA and the relevant Government Ministries. According to Bank recommendations discussed at appraisal mission, the Government has begun to implement an immediate action plan. As a key element a first fare increase from CFAF 60 (US$24) to CFAF 75 (US$.30) was undertaken on April 1, Subsequent periodical increases should allow to match future inflation. As a matter of fact, however, these measures will only prevent a larger future deterioration of the deficit situation as shown in the Table V.2 below (See Annex 2, paras. 1 to 6 for more detailed comments). Table V.2 Revenue Account Forecasts 1979/ / / / /84 Total Operating Income 1/ 14,800 18,200 19,263 21,189 23,308 Total Operating Expenses 2/ 18,695 20, ,312 26,118 29,030 Operating (Deficit) 3,895 2,619 4,049 4,929 5,722 Depreciation 3/ 2,505 3,679 3,942 4,069 4,472 Interest 3/ 1,343 2,221 1,963 2,003 2,060 Total (Deficit) 7,743 8,519 9,954 11,001 12,254 Working Ratio Operating Ratio / Assumes varied fare increases in 1980/81 and subsequent annual increases to match rates of inflation. 2/ Assumes labor and general cost inflation of 10% and fuel and spare parts at 15%. 3/ Assumes no further investment beyond the 1979/80 investment program, except for replacement of fleet.

43 SOTRA is aware that even under the most constrained assumptions, there is likely to be a deficit of between CFAF 7.5 and CFAF 8.0 billion ($32.0 million) in 1979/80. The Ministry of Finance is also aware of this situation and plans to make provision in its budget to provide a subsidy for SOTIA to cover this. As Table V.2 shows, SOTRA is heading for deficits in the region of CFAF 12 billion ($48.0 million) by 1983/84 even if the company is to be kept on a sound financial footing, accepting the social need for subsidies, some increases in fares to maintain a reasonable balance between expenditure and income. Experience suggests that once large gaps between expenditure and income are allowed to develop, the future scope for reducing the disequilibrium becomes increasingly restricted. Future Action by SOTRA 5.14 The Bank has proposed to the Minister of Finance by letter dated September 11, 1980 that remedial action should be done in two phases. First an immediate plan in 1980/81 involving: (a) a moratorium on further capital investments pending completion of the report on a technical study into its operations recently commissioned by SOTRA; (b) immediate fare increases to secure a working ratio of 1.00 in FY 1980/81 so that revenue will cover at least working expenses (i.e. excluding interest and depreciation); (c) preparation of a statement setting out how the Ivorian Government plans to finance SOTRA subsidies in 1980/81 and subsequent years. Thiis plan as well as specific program of action, inc:luding financial targets to be achieved under this immediate plan has been proposed by the Ministry of Finance in February, Second, a medium-term strategy which will emerge as part of the commissioned technical study to be financed by the Bank as part of this project. A five year operating and development plan will include a forecast of expenditure and income for each year together with a strategy to relate earnings to planned government subsidies. C. THE IMMEDIATE ACTION PLAN 5.16 Officials of SOTRA and the Government indicated that no further capital investment was planned pending the report on the technical study. There was a clear understanding with officials that no further investment should take place if not consonant with the conclusions of the Bank/IMF review of public investments of January It was also agreed that investment plans would henceforth be reviewed periodically with the Bank.

44 There is sound justification for such increases. In 1974 the basic SOTRA fare was equivalent to 27 minutes of the minimum hourly wage (SMIG) in Abidjan. At present SMIG stands at CFAF 174 and the basic SOTRA fare is, therefore, equivalent to only about 20 minutes of SMIG. An increase from CFAF 60 to, for instance, CFAF 90 in October 1981, would restore its real term value in relation to SMIG to about that existing in Government officials are well aware of these facts and, it is hoped, will make use of them in developing a fares strategy. Fare increases beyond 1980/81 will depend on the strategy adopted by SOTRA/Government in terms of its commitment to subsidies, operating levels, manning and productivity levels and the interation of these factors Consistent with discussions held with the Government at appraisal, moderate increases in fares have already been undertaken in SOTRAKs operations during the present 1980/81 fiscal year. The fare for the urban services has been increased by some 25% from CFAF 60 (US$0.24) to CFAF 75 (US$0.30). Additionally, increases amounting to 60%, 56%, 35% and 30% of existing fares have also been planned for implementation in this fiscal year 1980/81, respectively for the taxi, express, university and tourist services. Given that most of these fare increases would at best only be operational for half of the fiscal year 1980/81, the effective fare increase for the year would be just under 25%, consideration being taken of the relative distribution of the servicés provided by SOTRA. This average effective fare increase falls a long way below the estimated increase of about 45-50% that would be required to attain a working ratio of 1:0, after allowing for some demand elasticity responses. Apart from the fare increases, SOTRA has also indicated a positive intention to reduce its total operating expenditures by CFAF 1.4 billion (US$5.6 million) or just under 7% of its 1979/80 total operating costs. This reduction of costs, coupled with the increase in fares should go a far way towards reducing the company-s projected deficit. The deficit is projected to amount to about CFAF 8.5 billion (US$34.0 million) in 1980/81 and to rise to about CFAF 12.3 billion (US$49.2 million) by 1983/ It can be seen from Table V-3 that even with the projected fare increases of about 25% effectively in 1980/81 and subsequent increases to match inflation together with the 7% approximately annual expenditure cut, an average additional increase of 14% will be required in 1980/81 and one of 17% in 1983/84 for the attainment of a working ratio of 1:0 by SOTRA in those years. In terms of actual fare levels this will mean basic fares need to be raised even further from the adjusted year-end 1980/81 level of about CFAF.75 (US$0.30) to about CFAF 85 (US$0.34) and in 1983/84 from CFAF 100 (US$0.40) to CFAF 120 (US$0.48) to attain this required ratio.

45 Table V.3 Required Fare Increases to Maintain Working Ratio at 1.00 (CFAF million) 1979/ / / / /84 Tota.l anticipated operating deficit without fare - increases 3,895 6,470 9,145 12,250 15,530 Total anticipated revenues - from proposed fare increases and expenditure reduction 1/ - 3,851 5,096 7,221 9,808 Remaining operational deficit 2,619 4,049 4,929 5,722 Additional yearly increase in fares required for attainment of working ratio of 1: % +18% +13% +17% Actual fare level after adjustments made above in fares and expenditure reduction (il CFAF) Actual fare level required for basic service (in CFAF) to attain 1:0 working ratio / See Annex 2. D. MEDIUM-TERM STRATEGY 5.20 As mentioned in paragraph 5.14 above, the second phase of the program of remedial action will relate to a technical study, commissioned by SOTRA to be financed as part of the second urban project, in accordance with terms of reference agreed by the Bank. A longer-term action plan will emerge from this study. It is scheduled that the study would start early in 1981 and preliminary results would be available in the second half of 1981 befo:re completion of the immediate action plan set out in paragraphs 5.16 to 5.19 (see Annex 1.10). The objectives of the study will be:

46 (i) To develop a fares strategy to arrest the financial decline of SOTRA; (ii) To provide a sound financial framework to set the context for the payment of Government subsidies as part of a well justified and planned system for financing SOTRA's operations. In addition, to determine the most appropriate form of subsidy; (iii) To study SOTRA's operations and network in order to rationalize service provision and optimize fleet resources; (iv) To study SOTRA's peripheral services including "taxi-baggage", boat, university and express services to determine their relevance in the passenger transport system and to develop a strategy to make them financially self-sufficient; (v) To determine a system of reimbursement for services provided to Government in respect of concessionary travel for their workers and students; (vi) To determine the most appropriate form of fleet provision to meet the needs of the population in Abidjan, including bus type, standards and maintenance implications; (vii) To develop a system of long term planning and the preparation of a five year operational and financial plan commencing FY 1980/81. Study results will be reviewed and discussed with the Bank upon completion. VI. PROJECT JUSTIFICATION A. GENERAL 6.01 The objective of the project is to improve public transportation in Abidjan including the SOTRA bus company's finances and operations, to study a public transport system in Bouake and to use pilot operations in Daloa and Korhogo as vehicles to build local institutions capable of managing urban growth in the secondary and smaller towns. The urban transport component is conceived on the basis of maximizing the use of existing infrastructure through traffic management measures which should significantly reduce investment in roads without reducing the efficient movement of people, especially the poor. The infilling strategy to increase densities within Abidjan's urban fabric, particularly the Banco area, and the policy to develop and favor public transportation by bus, would enable Government to postpone large scale transport investments. Major investments postponed beyond 1984 include the urban rail service, the Banco bridge, doubling of the Houphouet Boigny bridge, and the second half of the East-West Highway. The secondary cities component

47 43 - is ccnceived to support Government's efforts to deconcentrate Abidjan. The main thrust of the regional development policy is the gradual reduction of migration towards Abidjan through more equitable distribution of public investment. However, the risk of misallocation of funds for secondary cities is ernormous in the absence of efficient local authorities and of a sound strategy for development of cities other than Abidjan. The pre-investment programming study financed under the proposed project will enable Government to examine alternative development strategies and to prepare an investment program for the coming decade taking into account the results of this project's pilot operations in Daloa and Korhogo. B. TRANSPORT 6.02 The transport portion of the proposed project consists of two main items: (i) public transportation; and (ii) traffic management measures; the economic evaluation will therefore be conducted separately for these two packages. The components evaluated constitute about 84% of the transport project costs. Benefits 6.03 The overall internal rate of return of the transport component is slightly higher than 32% under the least favorable assumptions of costs (+20%) and benefits: time value equals zero and reduction by half of traffic congestion. This confirms experience gained during the first project tnat traff'ic improvement measures can give substantial rate of return. Energy savings have been estimated on the basis of vehicle running and idling costs using a model calibrated in the Ivory Coast transport plan and SOTRA data for buses. Bus priority schemes and traffic management financed under the project would resuit in energy savings amounting to about 20% of total benefits compared to the existing situation The evaluation approach adopted in this project reflects the two key objectives of the project: (a) to bring about urban transport improvements as economically as possible, and (b) to channel as many of the benefits as poss-ible to public transport users. The first objectilve resulted in all alternatives being scrutinized to ensure that the benefits could not be obta:îned at a lower cost. The second led to the evaluation effort being concentrated on identifying benefits to public transport users. To ensure the channeling of benefits to public transport, calculations have been made to show that the projects are justified on the basis of benefits to public transport alone. However, estimates of benefits to car users are introduced where appropriate and have been estimated as carefully as the public transport bene:fits The economic evaluation is based on quantified savings in vehicle operating costs, maintenance costs, and travel times. Given the objective of creating benefits for public transport users, equal emphasis has been piaced on measuring and quantifying savings in travel times, since it is believed that these savings constitute an important indicator of the extent to which

48 benefits are actually realized by bus riders and, thus, should be included along with vehicle operating cost savings in the economic evaluation. All time savings have been valued in the calculation of the economic indicators at 30% of the average wage rate of the economically active population ($0.67). In the sensitivity analysis travel time was valued according to distribution of household income in Abidjan allocating a different travel time value to car passengers from that of bus riders. A test was also conducted making time value equal to zero The proposed project includes traffic improvement programs and bus operating facilities in Treichville, Adjame, Koumassi/Marcory that have been designed to produce jointly benefits to public transport users. In each case, these Programs were evaluated as packages to see whether the benefits from the package justified its cost. In principle, it would have been desirable to identify the specific benefits from each component of the package. In practice, this would have involved an inordinate amount of analysis since each package included many distinct elements. To ensure that unreasonable elements had not been included in a package, each component was carefully examined from a transport planning and traffic engineering viewpoint. Having ascertained the reasonableness of including each element in the package, the scale of infrastructure provision was examined. This resulted in numerous reductions in standards and size. In this way, it was possible to use the "package" approach to evaluation within the context of the Bank's standards of technical and economic feasibility. Deneficiaries 6.07 The relative urban poverty threshold in Abidjan was defined at $410 per capita in 1979 and the absolute poverty estimated at $230 per capita. Calculations made during the Ten Year Development Study showed that 23% of the urban population of greater Abidjan was below the relative poverty threshold. 343,000 households will live in Abidjan in 1985 and about 98,100, or 27.9%, would be below the relative poverty threshold, corresponding to 617,000 people. A survey made on the users of public transport showed that 80% of them earn less than the arithmetic mean of Abidjan, 60% less than the median income, and 22% less than the relative poverty threshold. The impact of the project on the low income group is very important. The percentage of project investments in Abidjan that generate benefits directly to the low income group is 62%, the group being defined as earning less than the median income. The urban poor, who represent 22% of the public transport clientele would receive 17% of benefits. The overall population that will benefit from the public transport program financed under the project could be estimated to be about 1,275,000 in 1981, reaching about 1,650,000 in 1985, or 76.9% of the total population of greater Abidjan The traffic management package is even more directed towards the poor, since it is being developed in the most populous areas of Adjame, Treichville and Koumassi/Marcory. The package includes not only measures for vehicular traffic, but also covers a series of minor improvements for pedestrians. A survey made in 1977 on the population of Adjame during the first urban project showed that the median per capita income was $380, and that 40% of the 131,000 inhabitants surveyed were below the relative poverty

49 threshold. No survey was conducted on the inhabitants of Koumassi/Marcory and Treichville. However, in the squatter slum of Koumassi, which has about 60,000 of the 162,000 inhabitants of Koumassi surveyed in 1977, incomes are probably lower than anywhere else in Abidjan. It is virtually inaccessible. There are no streets just muddy paths, no drainage, many large puddles and piles of garbage. The project will provide for access to buses, pedestrians, and garbage trucks. No further improvements can be implemented in the Poto- Poto area since drainage and extensive landfills would be required and the present Poto-Poto population would not benefit from the high cost improvements since schemes of this sort result in land values becoming too high for the existing occupants. Economic Analysis 6.09 Detailed analysis of the economic justification is available in the project file; the results are summarized in Tables VI.l, VI.2 and VI.3. Between 1965 and 1979 the demand for public transportation varied from 0.15 to 0.39 daily trips per inhabitant corresponding to million trips in 1979 for the 1.7 million inhabitants of greater Abidjan. Assumptions made in the Ten Year Development Study on a population of 2.2 million in 1985, show that the total number of annual trips by SOTRA could approximate 250 to 265 million in To accommodate such a demand, the proposed project would finance (i) an express bus network along the Abobo Gare-Treichville route and its connection with the Banco Plateau. Most of both these routes have already been constructed and offer sufficient capacity. The missing links to be built under the proposed project consist of: the Western Bypass and Parc-a-Bois Road (5.5 km) and primary roads in the Banco area (8.8 km); and (ii) traffic management which would give inter alia priority to buses through bus lanes and improved junctions. Methodology 6.10 The economic evaluation is based on a comparison of discounted values of cost and benefit streams gene-^ted by the project, all without tax. Costs consist of (i) investment costs including: construction, detailed engineering, supervision of works and maintenance, physical contingencies, and (ii) maintenance costs. Benefits accrue from savings in vehicle operating costs and user time savings subdivided into: (i) savings generated during actual journey of the vehicles, including regular stops at non-saturated signalized intersections; (ii) savings generated through reduction or elimination of waiting lines at saturated junctions or on congested links. Cost savings in wailting lines arise primarily from reduction in fuel consumed by idling engines. All time and cost savings have been broken down into: (i) public transit user benefits, and (ii) private car or truck user benefits. As in most urban transport projects, this project addresses itself primarily to congestion problems. Therefore benefits have been first estimated in reference to the average week-day peak hour and then generalized to the full year through usfe of an appropriate expansion factor Two vehicle types have been distinguished throughout the computations:

50 Private vehicles (PV) - Public transit vehicles (PT). Private transport vehicles have been lumped together and flows expressed in passenger-car equivalent units (pcus), based on appropriate conversion factors. Two-wheel vehicles have been disregarded for they operate only in small numbers in Abidjan's streets and therefore would contribute only small economic benefits; this does not detract from the necessity of properly catering to their needs, especially safety-wise. Running times with and without project have been calculated on the basis of a simplified link performance model. Waiting lines (traffic congestion) have been computed on the basis of a simplified model developed for the Abidjan case. Corresponding fuel consumption is assumed to be strîctly proportional to idling time. All abovementioned model equations have been calibrated to fit the Ivorian context The benefit computation is a four step procedure: (i) Traffic forecasts by vehicle types on each project-related link; (ii) Speed calculation on each link, by vehicle type, using the performance model; (iii) Cost calculation on each link, by vehicle type, using the cost model; (iv) Waiting line calculation on each link, if demand overrides capacity, using the waiting line model. For any given year, the sequence is run successively for the "with" and "without" project situations. Benefits are the difference in the results in costs and times. In the case of infrastructure investment with a long life time (15 years) the procedure is used to calculate benefits on opening year (1983) and target year (1987). Beyond 1987 benefits are deemed to increase at a constant slow rate, taking into account the progressive increase in car ownership among the population. In the case of short term operational improvements, benefits are assumed to remain constant over time. Finally, in both cases, benefits and costs enter into the economic indicators (benefit cost ratio, net present value, economic rate of return (ERR)) Western Bypass. For the bypass, internal rates of return are above 65%. Benefits for the public transport users are in all cases about two-thirds of total benefits and three-quarters for the main links. Under the assumption that buses only would benefit from the proposed project, the rates of return for the various links are between 45 and 55%, the overall rate of the Western Bypass operation being 52%. The sensitivity analysis which was conducted using different hypotheses on design standards, costs and time value, has shown that the rates of return remain high under the least favorable hypothesis. For instance, with a time value equal to zero, the ERR is above 35% except for one short link where it reached 17%. The variation of the ERR was also studied using several hypotheses concerning the reduction of traffic congestion (waiting lines). Under the unrealistic assumption that the

51 Table VI.1 Fuel savings only Ail costs savings All benefits (time incl.) B/C NPV ERR B/C NPV ERR B/C NPV ERR Western By-pass Parc à Bois , , , Connection , , , (Sebroko , , , Western-(Carena 4-4A , By-pass ( 4A-4B , (26m width 4B , Package , , , Banco Primary Roads Access to industrial area , Access to ferry Medium road Central North bound , Northern road , , , Connection East West H5ghway dropped from project Package 1/ , , , Traffic Improvement Measures Koumassi , , Adjame , Marcory , , ,800 1,230 Treichville , / 8.7 excluded Discount rate for B/C and NPV calculations = 12% Units NPV in MCFA ERR in %

52 Table VI,2 Distribution of benefits (%) Western By-pass Public transport Private transport Total Grand Fuel Other cost Time Fuel Other cost Time Fuel Other cost Time Total savings savings savings savings savings savings savings savings savings Parc à Bois Connection (Sebroko Western (Carena 4-4A By-pass ( 4A-4B (26m width 4B Package Banco Primary Roads Access to industrial area Access to ferry i oo / œ Medium road Central North bound Northern road Connection East West Highway dropped from project Package 1/ Traffic Improvement Measures Koumassi li U z.i 100 Adjame Marcory Trtc1-ichvtle / 8-7 excluded 2/ On this link private transport includes trucks

53 Western By-pass and Parc-a-Bois road Table VI.3 Sensitivity analysis on Economic Rates of Return Time Value Time Operating No. Of according Value Construction Costs Costs Waiting Lines Private to income equals Cars distribution zero +20% -20% +20% 0% 50% Parc-a-Bois Junction By-pass Sebroko Carena M width Total > Package II Banco primary road Access to industrial area Access to Ferry Boats Medium road Central Northbound road Northern road Connection with East-West Highway Package III Traffic improvement measures Koumassi Adjame Marcory 1, ,200 1,500 1, , Treichville Notes: Time Value $0.67 Discount rate 12%

54 proposed project would have no impact on reduction of waiting lines, the ERR is still higher than 25% except on a link where the ERR is 11.5%. In conclusion, the proposed Western Bypass is highly justified on economic grounds and would primarily benefit public transportation. It should be noted that provision of a separate right-of-way on the Attiecoube-Houphouet Boigny Bridge section would enable buses to run at 60 km per hour. Without these separated lanes this section would be saturated before 1987 with 400 buses and 4,100 private cars per hour and the average traffic speed would be about 12 km per hour. Provision of busways would generate limited losses to private cars, but since cars would transport only 8,200 persons and buses carry about 40,000 passengers, separate busways are clearly justified Banco primary road. Results of the economic analysis are shown in Table VI.2 below. All internal rates of return are above 35%. Benefits for bus riders amount to two-thirds of total benefits and are 80% on some links. Taking into account only those benefits generated for buses, the internal rates of return are 25%, and amount to 44% of the package. The sensitivity analysis led to the elimination of one link which showed a low rate of return when taking into account benefits to bus riders only. Variations in construction costs (+20%) reduce the rates of return to 30%. Under the assumption that time value equals zero, the overall rate of return is still 26%; two sections having an ERR between 8 and 9%. However, these sections link the land bus network to the terminal for water coaches which is under construction. It is likely that the assumptions on traffic allocations for these two sections have been overly pessimistic since the ferries will connect the Banco area, by crossing the laguna, to the existing Port area and the projected Port extension will be close to the terminal for water coaches. The two links would be integrated into the access road network of the new port Traffic improvement measures. Traffic improvement measures have been combined with four schemes in four different places: Koumassi, Adjame, Marcory and Treichville. Each one has been analyzed separately. Results are shown in Table VI.3 below. The internal rate of return of the package is about 33% under the hypothesis that all time savings are valued at 30% of the average rate of the economically active population. The rates of return for the first year are all above 100%. Using the assumption that time value equals zero, the sensitivity analysis has shown that the ERR is still high except for Adjame, because the proposed improvements in this area mostly concern the creation of bus lanes by widening the existing pavement and benefits would derive from time savings. The ERR of the Adjame program is 100% if benefits are allocated to buses only with time savings valued at 30%, as mentioned above. For the three other areas and using the latter hypothesis, the ERR is above 65%. Benefits for bus riders amount to 60% in Koumassi/ Marcory and 87% in Treichville. C. SECONDARY CITIES PROGRAM 6.16 The main objective of this component is to assist Government in building up and/or strengthening urban management systems in secondary cities where up to now few, if any, local institutions existed. New municipalities

55 have been established February 1980 in most of the major secondary cities. The proposed project will give strong support to Government's attempt to effectivelny decentralize the administration and to work in favor of a more balanced regional development. The local government'sh institutional framework is extremely weak but will be progressively strengthened over the next few years through new administrative mechanisms which are likely to be developed on a trial and error basis. The project endeavors to deal with this peculiar situation and it is therefore largely based on experimental features which will allow Government to test, through the pilot programs, new administrative mechanisms and, if necessary, elaborate alternatives. Implementation of the secondary cities component will, for this very reason, include numerous unquantifiable risks and ex-ante economic analyses would be of no avail Evaluation of the project's economic impact, to be made on completion of the project, will be principally based on monitoring results and on assessment of increased land and property values, due to infrastructure works, even though this method might not fully reflect the entire measure of benefits from improvred management and the healthier environment achieved by the pilot programs. The pilot programs will improve the living conditions of all residents, particularly the poorest in Daloa and Korhogo. Increased effectiveness of urban maintenance services will reduce the steady decline of the physical environment in both cities. More importantly, it will also contribute to increasing the attractiveness of the secondary cities and encourage economic investment and employment creation, which would otherwise be diverted to Abidjan The secondary cities program has a number of new features which are subject to risk although the Ivory Coast has expressed its commitment to these initiatives. Two main areas of risks can be identified: the institutional arrangement for implementation of pilot programs, and its replicability. Regarding the institutional arrangement, execution of the pilot programs will require efficient management. The transfer of staff from the Central Government. services to municipalities and regional services is gradually taking place. However, there is a risk of considerable delays in implementation if proper coordination is not ensured between Abidjan and the Daloa/ Korhogo authorities. The replicability of the pilot programs depends upon the effective introduction of the cost recovery mechanisms. Beneficiaries are prepared to pay for security of tenure and provision of essential services. Failure to collect taxes will result in lower standards of service and a need for subsidies from Central Government. It is therefore extremely important that Government devote continued attention to the development of an efficient property tax system. VII. RECOMMENDATIONS 7.01 At negotiations, agreements were reached on the following points: (a) annual traffic management programs (para. 2.16) and annual road maintenance programs (para. 2.17) set up according to criteria discussed ana agreed with the Bank;

56 (b) curricula for the training programs for Ivory Coast engineers at the National School for Public Works in Yamoussoukro (para. 2.18), and terms of reference for the pre-investment programming study (para. 4.01); (c) agreement to consult with the Bank on the viability, financing plans and operation timing of the URS as well as of any other large transportation project that could have an impact on the project (para 2.18); (d) arrangements for maintenance of the various project components (para. 4.03); monitoring of the project (para. 4.10); and project audit (para. 4.13); (e) the timetable for review and implementation of the results of the medium term financial strategy study for SOTRA (para. 5.15); (f) financial targets to be achieved by SOTRA (para. 5.17); (g) the execution of a subsidiary between the Government and SOTRA loan agreement on terms satisfactory to the Bank as a condition of effectiveness of the Bank loan (para. 3.06); (h) preparation of quarterly progress reports relying on key performance indicators (para. 4.13); (i) preparation of financial statements and audit reports prepared by auditors acceptable to the Bank and submitted to the Bank no later than eight months after the close of each Government fiscal year (para. 4.14); and (j) Government's commitment to provide, upon project completion, all information requested for preparation of the Project Completion Report (para. 4.15) On the basis of the above agreements, the proposed project is suitable for a Bank loan of US$51.0 million equivalent, to the Government of Ivory Coast, at the prevailing interest rate and repayable over seventeen years including four years of grace.

57 ANNEX 1 IVORY COAST SECOND URBAN PROJECT TECHNICAL ASSISTANCE 1. The technical assistance required to ensure the satisfactory preparation, implementation and monitoring of the project being undertaken by the Ministry of Public Works and Transportation (MPWT) and the Ministry of Construction and Urbanism, Construction and Urbanism (MCU) through its Directorates, agencies and technical assistance seconded to local authorities, will be: (a) Transportation Central Bureau of Technical Studies 140 person-months Public Works National School 42 Central Directorate of Public Works (Abidjan) 100 Bus Company (SOTRA) 65 Road safety agency (OSER) 35 Detailed engineering for urban rail service 125 (b) Secondary Cities Municipality of Daloa (seconded from Public Works) 30 " Municipality of Korhogo (I Il *) 30 Central Directorate of Urbanism (Abidjan) 35 Preinvestment prog7.amming study 70 ' 2. Costs have been based on Arrete 2056 dated December 26, 1979 from the then Ministry of Economy, Finance and Planning, which gives the level of fees and allowances for technical assistance in Ivory Coast. For appraisal purposes cost of a person-year was averaged at $140,000, broken down as follows: US$ Taxes (30%) 42,000 Salary with social benefits (71%) 44,400 Expatriation allowance and cost of living 17,200 Housing 10,800 Representation 2,200 International travel 5,000 Local travel (car) 4,800 Overhead (10%) 13, ,000

58 ANNEX 1 I. TRANSPORTATION A. CENTRAL BUREAU OF TECHNICAL STUDIES (BCET) 3. The Traffic Management Unit (TMU) financed under the first project will be maintained under the second project. The Unit was set up within the BCET of the Ministry of Public Works to study and execute programs designed to improve the operation of existing transport infrastructure. Its Terms of Reference were adjusted so that its responsibilities would be shared by BCET, which would be in charge of studies and monitoring, and the Regional Directorate of Public Works in Abidjan, which would be in charge of supervision of works. The Terms of Reference specifically call for the TIU of the BCET to be responsible for: (a) planning and programming the traffic improvement measures to be financed under the proposed project; (b) preparing detailed design and bidding documents for such operations; (c) monitoring of the systems developed; (d) coordinating actions with the SOTRA bus company, the Municipality of Abidjan, the Regional Directorate of Public Works and the Road safety agency (OSER). 4. During the project implementation period 4.0 experts would be assigned to the BCET/TIMU: a transport planner responsible for the transport studies, an engineer responsible for traffic improvement measures, a traffic signals specialist, and a team leader responsible for overall coordination. The Terms of Reference of the permanent experts are summarized below; the Terms of Reference of the counterparts are the same. Two Traffic Management Advisers 5. They shall have an engineering degree with additional qualifications in transportation/traffic engineering and with a minimum of five years experience in highway planning and traffic management and have had experience in the application of computers to urban road network analysis. They shall be fluent in French. They shall advise and assist the Traffic Management Unit for four years on all aspects of transportation/traffic engineering including: (a) the analysis and evaluation of transport networks with the help of computers; (b) the execution of urban transport studies;

59 ANNEX 1 (c) measures to encourage public transport; (d) area road pricing, and other measures to encourage economy in the use of road space; (e) policies and control measures relating to the operation and enforcement of on- and off-street car parking; (f) the monitoring of traffic volumes, composition and speeds, the occupancy of vehicles, and other key indicators of effective traffic management. Adviser on Traffic Signals Implementation 6. He shall be professionally qualified as a traffic engineer with at least: five years practical experience of the implementation of traffic engineering nieasures in cities. He shall be fluent in French. The assignment shall be for three years. He shall advise and assist the Traffic Management Unit of BCET in the design and implementation of junction improvements, priority schemaes for high occupancy vehicies, and other traffic engineering measures. He shall have experience in computerized medium size traffic signaling schemes. He will be called upon to train BCET staff by practical example and by implementing measures himself. B. CENTRAL DIRECTORATE OF PUBLIC WORKS IN ABIDJAN (DCTP) 7. A team of five experts will be required to supervise the civil works to be executed during the period of the project. The team will supervise the construction of the Western Bypass, the primary road network in the Banco area, the traffic improvements in Treichville, Marcory/Koumassi, and Adjame, including the minor works and urban road maintenance. The team will comprise: - a senior civil engineer (team leader) - a senior highway engineer - a soils engineer - a structural/drainage engineer - a traffic engineer. 8. They shall all have engineering degrees. Part of their professional careers shall have been spent in developing countries. They shall be fluent in French. The assignment shall be for three years. They shall assist and advise the Central Directorate of Public Works in the execution of civil works included in the project, in particular:

60 ANNEX 1 (a) preparation of the project implementation schedule and the coordination of the implementation aspects of the construction and equipping of the project components; (b) preparation of briefing documents, ensuring that norms, standards, and specifications reflect economy and functional design; (c) review of drawings to ensure that space provisions and specifications are interpreted correctly so as to minimize changes during construction and after acceptance and approval of bids; (d) preparation of bidding documents and review of specifications; (e) monitoring and evaluating progress including site visits; (f) inspection of completed works with the Public Works authorities and supervision of preparation of final certificates for payment due on completion; and (g) preparation of periodic progress reports for the Government and the Bank. The team should progressively evolve towards an urban work unit within the DCTP as soon as counterparts have been well trained. C. THE SOTRA BUS COMPANY 9. A team consisting of one full time expert assisted by short-term experts, will be required to improve the SOTRA's operations, implement the immediate plan of action and prepare a medium term financial strategy to consolidate the SOTRA's financial situation. They will form the core of the newly created Transport Planning Unit within the SOTRA. The general objectives of the Unit would comprise: (a) planning the various networks of the SOTRA in conjunction with Abidjan's growth, paying particular attention to new services, transport systems and appropriate vehicles; (b) investment programming for the next four years; and (c) design and coordination of development plans and reorganization of internal structure in order to reach agreed targets.

61 ANNEX 1 Medium term financial strategy study 10. The Transport Planning Unit has commissioned a study which will cover operational, planning and financial aspects of the company's future development. The rapid increase in SOTRA's fleet since 1976 has meant that there has been additional pressure on SOTRA's basically sound management resu:lting in some loss of efficiency and effectiveness. The result has been lowe,r productivity, higher unit operating costs, etc. 11. The Unit will be staffed by experts financed under the proposed project, who would have the following experience. They shall have professional experience in public transport operations specifically dealing with scheduling, routing, fares, finance, and management. Part of their professional careers shall have been spent in developing countries. They shall be fluent in French. The assignment shall be for three years. They shall advise SOTRA on: (a) investigation, review and analysis of the operation of public transport services, including scheduling, routing and fare structures; (b) compiling of records, reports, and information on public transport operations, including the adoption of standardized accounting and reporting procedures by SOTRA; (c) provision of advisory services to public transport operators on management, fleet maintenance, training, accounting, and such other matters for which advice may be requested; and (d) conduct of short courses on public transport operations in ENSTP. They shall also assist SOTRA on: (a) economic analyses of public transport operations; (b) development of plans, policies, criteria and programs to provide a satisfactory level of public transport services; (c) administration of transport planning, and coordination of transport planning and other planning in the urban sector, and administration of the Bureau; (d) regulation of transport operations, the development of licensing procedures and criteria, the enforcement of policies and regulations; and (e) monitoring of the progress of project implementation, and preparation of progress reports for Government and the Bank.

62 ANNEX 1 D. THE ROAD SAFETY AGENCY (OSER) 12. The road safety agency (OSER) created within the Central Directorate of Land Transportation (DCTT) has requested that a study on traffic accidents be undertaken by consultants. The project will provide funds for about 20 person-months to: (a) carry out the study; and (b) assist OSER to develop plans, policies and programs to reduce traffic accidents. The study will (i) analyze the behavior of drivers and its incidence on safety in urban areas; (ii) define appropriate measures to increase road safety. The consultants will take into account all types of accidents: body injuries as well as material damage. The cities to be covered are Greater Abidjan, Bouake and Korhogo. Consultants will study existing documentation and will identify the main characteristics of accidents. They will establish relationships between the human factor and accidents and between the phenomenon of the automobile and the Ivorian socio-economic factor. Consultants would prepare a synthesis of their findings and make recommendations for a set of measures able to reduce casualties, covering adjustments to existing traffic regulations, and advertising and enforcing of penalties. Consultants will be assisted by two Ivorian counterparts to be trained under the study. E. OUTLINE OF TERMS OF REFERENCE FOR PUBLIC TRANSPORTATION IN BOUAKE 13. The following outline terns of reference should be sufficient to allow MPWT to make a decision as to the appropriateness of a public transport component for Bouake. (a) Analyze existing public transportation problems. (b) Carry out forecasts of the likely demand up to (c) Examine each of the following systems: (i) A regular para-statal bus company; (ii) A municipally organized system of private operators; (iii) Any other relevant system with a view to determining the most cost effective and appropriate system based on a broad analysis of the following: (a) institutional and administrative requirements; (b) financial requirements;

63 ANNEX 1 (c) technical assistance requirements; (d) the costs of the system; and (e) the benefits provided. F. TRAINING PROGRAM AT THE PUBLIC WORKS NATIONAL SCHOOL (ENSTP) 14. There are no facilities for training traffic engineers and urban plarlners in Ivory Coast at present, but there is a need for courses in traffie management and urban planning at the national level and possibly at the regional level, as the same problems also exist in neighboring countries. The National School for Public Works (ENSTP) at Yamoussoukro, which was opened two years ago, has sufficient capacity and facilities to organize such a course. 15. Courses would last about 18 months and would cover the basics of trai'fic management: (a) geometric design; (b) regulation and traffic control; (c) parking; (d) public transportation; (e) pedestrian traffie; (f) road safety; (g) coordination policies and management; (h) monitoring, evaluation and financial aspects; and of urban planning; (i) infrastructure planning; (j) management systems and administrative legislation; (k) economics; (1) sociology and demography; (m) physical planning; (n) project management; and (o) facility programming.

64 ANNEX Discussions are under way in the Ivory Coast to determine appropriate foreign institutions to assist in staffing and organizing courses and final proposals are expected by negotiations. II. SECONDARY CITIES A. MUNICIPAL TECHNICAL SERVICE DEPARTMENTS IN DALOA AND KORHOGO Technical Advisers to Directors of the Municipal Technical Service 17. In each of the project cities an expert will be established to assume the function of Technical Adviser to the Director of the Municipal Technical Services Department. These experts shall have an engineering degree with additional qualifications in sanitary and/or infrastructure engineering. They shall have a minimum of five years experience in the management of such services and should demonstrate good skills in the training of staff. They shall advise and assist the Directors of the municipal technical services on all aspects of management and should particularly give advice on: (a) organization of routine maintenance of secondary road networks, drainage networks, markets and public open spaces, as well as maintenance of public administrative buildings and primary schools; (b) organization of garbage collection services, collection routes and solid waste disposal; (c) reviewing project drawings, bidding documents and specifications; (d) coordination, supervision and monitoring of works to be executed by the MPWT and MCU and/or public enterprises; (e) preparation of annual operating and investment budgets; (f) training of counterparts and local technical staff; (g) preparing periodic activity reports; and (h) monitoring and assessing effectiveness of service performance. Technical Adviser for Administrative and Financial Affairs 18. Technical Advisers for administrative and financial affairs will be seconded to the municipalities of Daloa and Korhogo. They shall have a degree in public administration management with additional qualifications in financial affairs. They should have a minimum of five years experience in similar jobs, of which at least two years in developing countries. They shall:

65 ANNEX 1 (a) assist the existing accounting service to improve local tax collection; (b) participate in the organization of municipal accounting service in order to set up effective budgeting systems; (c) provide adequate training for local counterparts and subordinate staff; (d) cooperate with Central Government experts in assessment of urban property tax revenues; (e) prepare periodic activity reports; (f) monitor and assess project implementation; and (g) participate in the establishment of annual operating and investment budgets. B. MINISTRY OF CONSTRUCTION AND URBANISM Technical Adviser to the Director of the Central Directorate of Urbanism (DCU) 19. He shall have a degree in Architecture and Urban Planning and experience in cities in developing countries. He shall be fluent in French. His assignment shall be for two and a half years. HIe shall, inter alia: (a) be responsible for the monitoring of the secondary cities component of the projec-; (b) prepare the project implementation schedule and ensure that implementation aspects of the construction and equipping of the project institutions are properly coordinated; (c) ensure that contractors are meeting performance standards, as reflected in the specifications; (d) assist the Directorate of Construction in the preparation of model bidding documents for the calling of construction bids; (e) participate in monitoring of the preinvestment study; (f) train counterparts; (g) assist DCU staff in day-to-day operations; (h) participate in the preparation of periodic progress reports for the Government and the Bank.

66 ANNEX 1 Technical Adviser to the Director of the Central Directorate of Construction (DCC) 20. He shall have a degree in civil engineering or buildings. Part of his professional career shall have been spent in developing countries. He shall be fluent in French. His assignment shall be for one and a half years. He shall coordinate his work with the Architect attached to the DCU in charge of monitoring the secondary cities component. He shall assist and advise the Director of the Directorate of Construction of MCU on the construction of the community facilities included in the project, in particular: (a) preparation of the project implementation schedule and construction of the project installations; (b) with the Architect at DCU review the architectural drawings to ensure that space provisions and specifications are interpreted correctly so as to minimize changes during construction and after acceptance and approval of bids; (c) preparation of bidding documents and review of specifications; (d) preparation of model bidding documents for the calling of construction bids; (e) drafting of bidding notices for bids, other standard documents for inviting bids and model bidding documents and determining the method to be used for obtaining bids in accordance with the "Guidelines for Procurement under World Bank Loans and IDA Credits"; (f) establishing procedures and criteria for the evaluation of bids and evaluating bids received for goods required for the project; (g) arranging for the safe custody and the proper delivery of goods to the project institutions and installation, in accordance with the target dates in the implementation schedule; (h) monitoring and evaluating progress including site visits; (i) inspection of completed buildings with the architects prior to their delivery to the authorities and supervising the preparation of final certificates for payment due on completion; (j) training of counterparts; (k) helping in preparation of a community facilities component for a third urban project; and (1) preparation of periodic progress reports for the Government and the Bank.

67 ANNEX 1 III. PREINVESTMENT PROGRAMMING STUDY FOR SECONDARY CITIES (Summary of Terms of Reference) 21. The objective of the study is as follows: (a) to assist Government in finding and implementing administrative mechanisms responding more adequately to secondary cities' needs in technical, administrative and financial management; (b) to contribute to the elaboration of an efficient programming system for public investments in secondary cities, which would enable Government on the one hand, to maximize economic output on a macro-economic level, and on the other hand, to satisfy as best as possible, needs of the local population; (c) to prepare the basis of a third urban development project which would mainly foeus on development of the secondary cities. 22. (a) The study will principally focus on: (i) analysis of existing administrative procedures and regulations dealing with management of secondary cities and regional investment allocation. It will pay particular attention to identification of administrative bottlenecks which might be the cause of regional disparities that show up in secondary cities' development patterns; (ii) effectiveness of liaisons currently used between local authorities representing the population and Central Government and its related agencies; and (iii) complexity of the fiscal system; (b) proposals for improved investment programming systems which would be based on increased participation of local population and authorities. Proposals will be elaborated on the outcome of close monitoring of the pilot programs in the two cities of the second urban development project. The study will also identify possible new institutional arrangements through continuous dialogue with Government officials during the whole of the period of implementation, both on the local and Central Government level in order to improve overall effectiveness of nationwide investment programming and execution. 23. Results of the study are likely to form the basis of a third urban development project directed to several secondary cities and smaller urban centers to be selected by Government.

68 ANNEX 2 IVORY COAST Second Urban Project SOTRA FINANCIAL FORECASTS TO 1983/84 A. INTRODUCTION 1. This note comments on the financial forecasts set out in Tables 1, 2 and 3 attached and discusses the assumptions made in these forecasts and the results shown. SOTRA is about to introduce ferry boat services as part of its integrated passenger transport operations. This will obviate many long land journeys around the lagoons in Abidjan and is an important aspect in the rationalization of passenger movements. No assessment has been made of the financial and operational implications of this, but it should be covered in the technical study referred thereafter. B. FORECAST REVENUE ACCOUNTS - Table 1 2. The attached statement at Table 1 sets out a basic financial forecast for SOTRA's Revenue Account to the year 1983/84 based on the following assumptions: (a) There is no increase in SOTRA's fleet beyond the 30 September Capital investment beyond that date relates to maintaining fleet levels obtaining in 1979/80; (b) That the recent decline in productivity will stabilize; (c) That in 1980/1981 urban service accounted for 70% of total operational revenues, with the express and taxi services accounting for 10% of each, and the university and tourist services 7% and 3% respectively. These basic ratios will subsist through 1983/1984. Fare increases are assumed to be effective for only half of 1980/1981. (d) That the following fare increases will take place in 1980/1981; Urban service - 25% Taxi services - 60% Express service - 56% University service - 35% Tourist service - 30%

69 ANNEX 2 SOTRA Table 1: FORECAST REVENUE ACCOUNTS (CFAF million) INCOME Traffic Receipts 14,650 17,027 19,070 20,896 23,074 Miscellaneous ,800 17, ,263 21,189 23,308 EXPENSES Employees 9,720 10,576 11,633 12,796 14,076 Fuel, Oil and Tyres 3,170 3,722 4,280 4,922 5,415 Spare Parts 3,855 4,520 5,928 5,928 6,895 Admin. etc. 1,950 2,001 7,201 2,422 2,664 18,695 20,819 23,312 26,118 29,030 OPERATING DEFICIT 3,895 3,619 4,049 4,929 5,722 DEPRECIATION - Fixed assets Rolling Stock 2,175 3,363 3,376 3,503 3,906 2,505 3,679 3,942 4,069 4,472 INTEREST - Short Term Long Term 999 2,021 1,963 1,978 2,060 1,343 2,221 1,963 2,003 2,060 TOTAL DEFICIT 7,743 9,519 9,954 11,001 12,254 Working Ratio Operating Ratio Note: Assumes no expansion investnment beyond

70 ANNEX 2 (e) That labor and general cost inflation will be at 10% except that fuel and spare parts will be at 15% per annum; (f) That capital costs for the replacement of buses will increase by 15% per annum and this is reflected in the depreciation calculations; (g) For the purposes of calculating interest it has been assumed that SOTRA's deficits will be made good by the Ivorian Government. Thereafter fare increases will match the anticipated rates of inflation as follows: 1981/82: +12%; 1982/83: +10%; 1983/84: +10%. Miscellaneous revenues increases are assumed to match annual rates of inflation as above, with 1980/81 being +15%. 3. The forecasts clearly show that SOTRA will be faced with a fairly rapidly increasing total deficit despite anticipated steep fare increases. in 1980/81 and smaller annual increases through 1983/84 to match projected annual rates of inflation. Assuming the fare increases in 1980/81 are operational for at least a half of the fiscal year, 1980/81 estimated deficit is still expected to be about CFAF 9-5 billion (US$38.0 million), and to use to about CFAF 12-3 billion (US$49.0 million) by 1983/84. The Ivorian Government is committed to the fairly high level of subsidies to cover anticipated deficits in the SOTRA's operations and these subsidies will no doubt have substantial repercussions on the Government's budget. If the deficit is, however, not covered by subsidy, SOTRA's problems will be exacerbated by the need to have resource to short term borrowing which will incur the penalty to interest payments which in turn will add to the total deficit. C. FORECAST BALANCE SHEET - Table 2 4. This has been prepared on the basis of the following assumptions: (a) Fixed assets are increasing for the purchase of replacement buses only including 15% inflation per annum; (b) Urban buses have depreciated on a seven year life, express buses on a five year life and other vehicles over four years; (c) Stocks are increasing at the rate of 15% inflation per annum with some growth beyond 1980/81 to allow for the full year effect of buses introduced in 1979/80; (d) Debtors reflect the unpaid Government subsidy in 1979/80 but this is assumed to be made good by Debtors thereafter assumed to be about 5% of operating receipts. (e) Cash reflects the movements in other balances and shows an improving situation on the basis that the Ivorian Government pays the subsidy

71 TABLE 2 SOTRA FORECAST BALANCE SHEETS TO 1984 YEAR ENDING SEPTEMBER 30 (CFAF million) FIXED ASSETS 27,205 28,278 30,721 34,185 38,485 Less Accumulated Depreciation (8,736) (12,415) (16,357) (20,426) (24,898) NET FIXED ASSETS 18,469 15,863 14,364 13,759 13,587 CURRENT ASSETS Stock ,054 1,212 Debtors 4, ,059 1,165 Cash _ 430 _ 85 1,588 5,249 2,137 1,880 2,198 3,965 LESS CURRENT LIABILITIES Creditors 3,590 4,100 1,998 2,222 2,535 Bank Overdraft 3, ,532 4,100 3,096 2,222 2,535 NET CURRENT ASSETS (2,283) (1,963) (1,216) X4) 1,430 TOTAL NET ASSETS 16,186 13,900 13_ ,0lJ7 REPRESENTED BY CAPITAL AND RESERVES 1,895 1,895 1,895 1,895 1,895 LOANS 14, ,253 11, ,186 13,900 13, Debt/Equity Ratio 7.5:1 6.3:1 5.9:1 6.2:1 6.9:1 Note: Assumes no expansion investment beyond

72 ANNEX 2 required to balance the revenue account each year; expenditures have been reduced by 6.6% for 1981/82 through 1983/84, on account of tighter budgeting management; (f) Creditors represent about 40% of appropriate expenditure in 1979/80 and this has been retained at the same level in 1980/81. From 1981/82 creditors have been assumed at the level of two months payments of appropriate expenditure; (g) Capital has been increased by CFAF 1 billion in 1980 and no further increases have been assumed; (h) It is assumed that all replacement capital investment will be financed from loan. 5. The forecast balance sheets show an improving cash situation simply because of the basic assumption that SOTRA's deficits will be made good by the Government. Although it is assumed that replacement capital investment will be financed from loan, it is likely in the event that with an improving cash situation, some investment could be financed from internal resources. On the assumptions stated the debt equity ratio falls from 7.5:1 to 6.9:1 which is still considered to be unsatisfactory. D. SOURCES AND APPLICATION OF FUND STATEMENT - Table 3 6. This statement starkly demonstrates the effect of the Government subsidy requirement if no action is taken on SOTRA's fare levels. Apart from this the statement is self-explanatory. E. MEANS OF CAPITAL FINANCING 7. SOTRA has derived its finance for capital investment at generally favorable terms from a variety of sources as follows: Rolling Stock and Equipment (a) 40% financing from deferral of customs duty for 10 years at 6% per annum; (b) 35% financing from French banks under an export guarantee for five years at 7.5% plus the guarantee fee, now about 1.3% per annum; (c) 25% financing from French Banks for 10 years, including five of grace, at the prevailing Paris rate plus 1.5%.

73 ANNEX 2 SOTRA Table 3: SOURCES AND APPLTCATIONS OF FUNDS CFAF millions SOURCE', Government Subsidies 5,873 9,519 9,954 11,001 12,254 Depreciation 2,287 3,679 3,942 4,069 4,472 Loans Raised 8,868 1,073 2,443 3,464 4,300 New Capital 1, Increase in Creditors APPLICATION 18,768 14,781 16,339 18,808 21,339 Fixed Assets 9,978 1,073 2,443 3,464 4,300 Repa,ment of Loans 2,177 3,359 3,195 2,877 3,018 Increase in Stocks Net Operating Deficit 7,743 9,519 9,954 11,001 12,254 Decrease in Creditors - - 2, Increase/(Decrease) in Debitors - (3,646) ,041 10,409 17,917 17,575 19,836 Increase (Decrease) in cash (1,273) 4,372 (1,518) 1,233 1,503 1L,768 14,781 16,339 18,808 21,339

74 TABLE 4 SOTRA REVENUE ACCOUNTS (CFAF million) / / /79 (9 mos) Total Income 4,240 4,887 4,036 4,363 9,828 12,879 Expenses Employees 2,007 2,395 2,272 3,659 5,792 7,643 Fuel, Oil, Tyres ,526 1,971 2,167 Spare Parts ,405 1,866 2,621 Administration, Etc ,032 1,547 2,238 Total 3,612 4,381 4,330 7,622 11,176 14,669 Operating Surplus/(Deficit) (294) (259) (1,348) (1,790) Depreciation:-Fixed Assets Rolling Stock ,288 1,674 Total ,487 1,934 Interest ,068 Total Surplus/(Deficit) 74 (211) (840) (1,377) (3,776) (4,792) Working Ratio Operating Ratio

75 TABLE 5 SOTRA CFAF MiIlion Balance Sheets To 1978/79 l l (9 months) FIXED ASSETS Less accubulated Depreciation (1 968) (2 346) (2 622) (3 123) (4 544) (6 449) NET FIXED ASSETS CURRENT ASS6TS Deferred Depreciation Stock Debtors Payuents in Advance Cash _028 6_ LESS CURRENT LIABILITIES7 Funds _ Creditors Bank Overdraft etc _ 1_475 2_246 3, NET CURENT ASSETS (234) (376) (756) (860) (1 405) (2 282) TOTAL NET ASSETS REPRESENTEDBY CAPITAL AND RESERVES LOANS - LONG & MEDIUM SHORT w - OTHER BALS DEBT/EQUIry RATIO 2.8:1 1.9:1 1.5:1 8.1:1 9.2:1 8.5:1 DC/CG 9 JUNE 1980

76 ANNEX 2 Construction (a) 65% financing from local banks in consortium for 10 years at 9.5% plus the indirect tax on interest resulting in an effective interest cost of almost per annum; (b) 35% financing from French Banks for 10 years, without any grace period, at the Paris rate plus 1.5%. F. TECHNICAL STUDY Draft Terms of Reference General The technical study of the Societe des Transports Abidjanais will be undertaken as a component of the Ivory Coast Second Urban Project. The objectives of the study will embrace the various factors affecting the financial and operational viability of SOTRA and the company's role in the Abidjan transportation network and will aim to produce a five year operational and financial plan. Fare levels and structure (a) To examine the past trends in fare levels in the context of the deteriorating financial position including the changes in real terms value in relation to the purchasing power of the CFAF; (b) To examine the present fare structure and its appropriateness in the light of the recent rapid expansion of SOTRA's services and network. To examine the scope of extending the fare structure from the present basic flat fare system; (c) To make recommendations on future fare levels and structures within the five year plan period as part of an overall financial strategy; (d) To examine the system for present concessions to Government workers, uniformed officials and students with a view to determining a method of proper reimbursement to SOTRA by responsible authorities; (e) To examine the charging levels and structure for SOTRA's peripheral services i.e. express, taxi-baggage and university services with a view to moving towards a break-even situation as quickly as possible.

77 ANNEX 2 Route Rationalizaton Subsidies (a) To undertake a study to determine the present and future areas and level of demand for SOTRA's services in the Abidjan area; (b) To generate options on service patterns and networks to meet the demands so identified, including frequency of service within peak hours and non-peak hours, appropriate layover times and other working practices; (c) To examine ways in which fleet resources can be optimized in operating proposed services in order to maximize usage and ensure that dead kilometrage is minimized; (d) To examine the viability and operational efficiency of peripheral services (express, taxi-baggage and university services) and in particular whether such services could be met by the urban fleet outside of peak hours thus reducing bus types and, therefore, unit costs; (e) To make recommendations on the rationalization of the Abidjan network together with a commentary on future resources. (a) To examine the need for and likely level of government subsidies within the five year plan period taking into account recommendee fare levels, improvements in operational efficiency and the size of SOTRA's fleet; (b) To examine options on the types of subsidy most appropriate for SOTRA's situation a--' in particular: (i) The need for a continuation of the present system of revenue deficit subsidies; (ii) The need to formalize this approach into a "contract subsidy" determined in advance of a financial year which will form the basis of SOTRA's financial strategy for that year; (iii) The consideration of some other form of subsidy such as an annual capital grant as a contribution to SOTRA's equity capital. (c) To examine the system for administering the payments of subsidy to SOTRA to ensure an equitable cash flow.

78 ANNEX 2 Fleet Structure and Type (a) To examine the fleet structure most appropriate to SOTRA's operations including the standard and capital cost of bus provision for the various activities. (b) To consider on the supply side how this provision should be met; (c) To determine the most appropriate life for each type of bus taking into account the capital cost of provision, annual maintenance costs and the cost of non-routine major repairs/ refurbishments; (d) To determine a rolling investment program to achieve optimum fleet size; Productivity (a) To examine trends in bus/employee productivity and determine the reasons for the recent decline. (b) To examine the relationship of the number of employees to total fleet for each classification of employees and since 1974 and indicate an appropriate ratio to incorporate in the five year plan; (c) To examine working practices, shift patterns crew scheduling procedures to determine the scope for improved efficiency; (d) To make recommendations to stabilize and improve future productivity. Infrastructure (a) To examine the depot and workshop provision required to efficiently service SOTRA's present and future fleets; (b) To indicate an investment program arising from the conclusions in 7(i). Five Year Operational and Financial Plan (a) To incorporate the findings of the study into a five year rolling plan which will include: (i) a statement on provision of services--expansion of existing services--introduction of new services; (ii) a five year capital investment program for fleet replacements, fleet expansion/reduction, and infrastructure provision;

79 ANNEX 2 Boat Operations (iii) a forecast of total operating expenditure arising from the above; and (iv) a fare and subsidy strategy to cover total operating expenditure over the period. To examine the relationship of the boat operations, and the bus network to optimize the passenger transport network. Economic Justification for Subventions To examine the wider issues of subsidies and their impact on the Ivorian economy together with the opportunity cost implications of such subsidies.

80 ANNEX 3 IVORY COAST SECOND URBAN PROJECT SELECTED DOCUMENTS AND DATA AVAILABLE IN THE PROJECT FILES A. BACKGROUND REPORTS 1. République de Côte d'ivoire - Plan quinquennal de développement économique, social et culturel Préparation du Plan Urbanisme: Villes de l'intérieur: synthese des 44 villes, Bilan diagnostique régional: Centre-ouest - Ministère de l'economie, des Finances et du Plan. Direction du Développement Régional, Bilan diagnostique régional: Nord - Ministère de l'economie, des Finances et du Plan. Direction du Développement Régional, Enquête Budget - Consommation, Ministère de l'economie, des Finances et du Plan. Direction de la Statistique, Ten-Year Development Study (March 1979). B. TRANSPORTATION 1. Priority Action Programs Junction improvements: Detailed engineering (1:200 scale) - Boulevard de Gaulle/Avenue 13 - Boulevard Lagunaire Ouest/Sortie du quartier Attiecoube - Route du Zoo/Sortie du quartier Ebrie - Boulevard de Gaulle/Avenue Jacob Williams - Boulevard d'antananarivo - Boulevard de Gaulle/Liberté - Boulevard du Gabon/Rue Pierre et Marie Curie Implementation Program

81 ANNEX 3 2. Traffic Management Plans Surveys, analyses and final design - Treichville - Marcory and Koumassi - Adjame 3. Pedestrian Improvements - Accident analysis and preliminary engineering drawings. 4. Public Transport 5b. SOTRA 6. Safety 7. Bouake - Western Bypass - Revised engineering drawings based on detailed engineering studies (available in Central Files, dated October 1975). - Banco Primary Road Network: Terms of reference for modifications to detailed engineering studies (available in Central Files, dated April 1978). - Proposed Depot: detailed engineering. - Report prepared by London Transport Services Ltd. - A Financial Analysis of the Company's Performance /79 by L. Clarke, Urbar Projects Department, March Report by J. Bloom, Consultant (April 1980). - Terms of Reference for Technical Assistance to the Transport Planning Unit. - Draft Terms of Reference for assistance to the National Road Safety Agency. - Securité routière - Review of road safety in the Ivory Coast. - Proposal for the establishment of a bus service for Bouake: BCET, March 1980.

82 ANNEX 3 8. General - Transport Component. Report by D. Barrett, Consultant. March Urban Rail Service: Feasibility Studies by SOFRETU, Paris. December 1978 and May Transport Component. Economic analysis. Working papers by J-F. Allouche, Consultant. - Révision des hypothèses de demande de trafic automobile (matrice O/D 1985) dated March Voirie primaire de Banco: Projet d'exécution (March 1981). - Méthodologie de l'évaluation économique des composantes transports (March 1980). - Besoins en recueil de donnees de transport (June 1980). - Difficulté théorique pour le calcul d'un taux de rentabilit interne particulière à chaque troncon (June 1980). - Evaluation préliminaire Bd. Lagunaire ouest/voie de dégagement ouest (July 1980). - Economic evaluation of the transport component (August 1980). C. SECONDARY CITIES 1. Daloa: Etude d'urbanisme. Rapport préliuinaire BCEOM, January Daloa: Programme de développement urbain. BCEOM, May Daloa: Programme de développement urbain: Projet d'exécution. BCEOM. 4. Korhogo: Plan d'urbanisme directeur. BNETD - SCET Ivoire, June Korhogo: Plans d'urbanisme de détail. BCET - SCET Ivoire, December Korhogo: Programme d'opérations d'aménagement. BCET, December Korhogo: Programme de développement urbain. BCET, May Korhogo: Projet de développement urbain: Avant-projet détaillé - W2XEX S,r te,e, X3qG. 9. Stratégie d'investissement public dans les villes de l'intérieur. Projet de termes de référence. Harter, IBRD consultant, June Loi relative aux charges et resources communales (1980).

83 IVORY COAST Ansea 4 SECOND EJB8AN PROJECT Transport Table 1 Comparant Detailed Cvas Essissates (Base Casas at Nalreh 31, 7.9S1_ (CFAF illiara) Praj eco Items ratai Base Cac-otnts par ear c-n ERRE A. EXPRESS BUS NETWORB Parc à Bais Road 1, WBatcra By-paa6-2tae.oanh-Careaa 2,040 5S0 6û Attiacasbh Liak Road 250 BO 170 Carena-Hloouphouer abigny BridRe Eqaipnent 49Q BE 190 B90 Truak S-eer Euh-totaS (A) 4,600 E5B 1,20E l'zeg 1,200 R50 B. BUS OPEPATION IMPREEFMENTS Pao Termials 4E0 lbs Aroa Rn.oads E 60 Nus Stops and Ehelorra 160 BE 89 SEhea Inrcrrhange EtarEoa Ilcrramenett 3BO Eub-roraE (B) 1, Ec 210 C. BANCO PRIMARY ROAD NETWORK Civil Works 2, E 140 LiRghtmg Equipment ad signalioatlos Euh-Cotai (C) 3,040 9PO D. DEPOT FOR TEE EUS CEPC -Y E. TRAFFIC MANGE:IENT MEASURES o. Adi me Clati dores CivilWorks anaco b. Xoorsassi Pao-rotai Civil carls Equip-nct ond nbgsuixoatroa t. Roral-ra Euh-toca 3E D Civil works E-aiptiec ond argnuleouteca Sub-totoî d. Troichville Paîblat Tranprt Iaprove=et Civil wakp O Equipment and ailealloa Sub-rotal 35n F. PEDESTRIAN IMNROVEhENTS Euh-CoraE (F) 1, Oaerpasses WEBk.a.s C. TRAFFIC PARI EPMENT MPROVEEMENTS a. TraRfio Management NeccxAeen Sab-rorul (F) Equipment Civil 400 BlN -orks BN b. Rùad Mtintenance Prograra Euh-total 620 BS TraROEo lights Signalization uad msarkine RN CieBl aafety.rhs,an cqipre-t Sab-ratai H. IECCLICAL ASSSTANCE SBb-cotai (C) 1, E TIraffB M.a.na8emnt Unît (BcEr) 040 san/eaths Public Works NatinaEl SchoEl (ENSTP) 42 mrn/sonrhs Supervision of oivil works (NCTP) 100 sas/masthc B_us ampany (STRA) scao/aaarha RosE -afey 65 gen-y (OSER) 20 ma/conros 70 6O3 35 Equipment and aepices usu-cotat (H) 1, I. DETAILED ENGINEERINE FOR RBAcN RAIL SERvIcE (058) E TOTAL BASE CNST 15a aa= ad2o 9_ 2az22.="===

84 IVORY COAST Anene 4 SECOND URbAN PRSOJECT Table 2 Secondary Cities Componeet Detailed CTat Estimates (Base cents et Maroh 31, 1981) (CFAF '000) Total eeconit-ents per year Prajeet Itees Base Cost A. PILOT PROGRAMS a. Dala 1. Roade in Dioulabougou neighbbrhoed 207, ,500 i Hebersoe neighborhosd 55,500 2d,000 27,500 i Extensioe Nord area 364, , ,000 il Abattoir ares 317, , , Public Lighting in Hubereso neighborheed 20,600-20,600 is Abattoir ares 34,900 34, Paving cf marknt areas - Central Market 81,200 81,200 Orly Market 58,500 58,500 Abattoir Market 50,000 5,000 Sob-totol (a) 1,190, , , ,000 b. Kerhogo 1. Street improvement - Street A 106, ,000 Street G 83,300 B3,300 Street K 13,900 13,900 Street L 43,200 21,600 21, Public lighting - Street A 11,700 11,700 Street C 7,800 7,800 Street L 2,100 2, Paving sf fie neighbbrhood markets 128,400 51,300 51,400 25, Parking ares for Centrol Market 41,000 20,500 20, Tountry Bus Station 83,400 33, Track Parking Areo 7,000 7, Co=unity FPcilities - Clinic 28,800 2S,800 Repoir ef Prinary Scobohs 54,500 21,800 21,800 10,900 Social Center 53,400 53,400 Sob-total (b) 664, , ,700 80,800 total (A) 1,852, , , ,800 S. MJUNICIPAL SERVICES a. Saoie 1. Monicipal Garage Bsilding 101, , Mainteeance Equip-ent 104,700 90,800 13, Corbage coleectioe Equipeent 114,100 21,300 92, Operating Cents 44,600 24,800 14,800 5,000 Sub-total (a) 365, , b. Yorhogo 1. Municipal Garage Building 70,300 70, Maintenance Equipnent 90,200 90, Operating Costn 76,900 34,200 25,600 17,100 Sub-total (b) 237, , ,800 17,100 Tetal (B) 602, , ,300 22,100 C. TECHNICAL ASSISTANCE 1. Central Covernmeet (35 eae-.n- th.) 122,500 35,000 52,500 35, MseieieaIitv sf Doles (30 ean--nthe MunicipaIity of Korhbgo (30 ran-.onths) 105,000 52,500 52,500 Total (C) 332,500 35, , ,000 D. STODIES 1. Pre-iovestment study 250,000 37, ,000 47, Miscellaneous etudies 120,000 50,000 50,000 20,000 Total (D) 370,000 37, ,000 97,500 20,000 TOTAL BASE COST 3, ,500 1,520,600 1,272, ,900

85 IVORY COAST SECOND URBAN DEVELOPMENT PROJECT Structure of the Ministry of Public Works and Transportation Mint ter t ~~~~~~~~~~~~~~~~~~~~~~Cabinet 1 Inspection of DirDctorates and Services Affair a. fprgram Technic nf nal Advisers sousgtnismes nd F inancis of ras DirectMerang Eiprent em tuics Organtion pteraate - SupervisedrPectraonel ~~~~~~~~~~~~~~~~~~~and T ransportation, Inetat B ORU evcshdalc S- etudel andendtral ft Cu-ientroal Agencies DCveintra Aobdminisrae Sb-ietrative SDirectorate r BCET Sub Mn,ctorate rub-directorate S Aeional tqipen HdictraulcDviino I _ Sub-Dirsctorate Division ers of lv ontr of of S Dat Loand Droctrieg Transpor I I - ~~~~~Affir and of Programs and II of Technical General Sewerage Regutations ; ] l 6 ^, ai~pesoannel nvestments ABENGOUROU Services Hydraulics Studiers an and Road Safety ~~~~~~~~~iviionofsub-directôrat ~~~~~~~~~~~~~~~~~~~~~~~~~~~~u-ietot Sub-Di,ectorate DCGTXoo Division of Sub-DirecIor t ate Sub-Directorate ABIDJAN of" Equb-ipmentote -lydraulic DiFvision of ; of Road Transport Finances of Roads - anid Management Studioss Water Manage- Organization ENSTP l l I. I E I n of AdminiMaitenaceativeD ~~~~~~~~~~~~~~~~~~~~~~~~~~~~and Pollution l j [ ' 1 ~~~~~Sub-Directo ~~~~~of I. j ~~~~~~~~~~~~Directorate L_ X I l l BOUAKE l l l ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~Control of _ Division of Sub-Directorate I SETU l t Routine Road Water Supolv of Data Proressi-ng SODECI l, I ~~~~~~~~Maintenance ; j ~~~~~~~~Directorate of.- Sub-Directorate _ Defferred Road. l of Road Transport, ~~~~~~~~~Maintr,nance KRHOGO Coordination RAN VVorks ~ ~ ~ ~ ~ WrdBek MAN OTU l s _ OSER LBTP ~~~~~~~~~~~~~~~~~~~~~~~~~~~~ Bank

86 -82 - IVORY COAST SECOND URBAN DEVELOPMENT PROJECT Structure of the Ministry of Construction and Urbanism Cabirnet Inspectioni of Directorates and Services Autonomous Agenicy for Civii Servarnt Housing Cntral Ceta Cettrl Central Dietrt DrcoaeCnrlCnrlDirectorate Directorate of Urbanr _ Directorate of _ Directorate of Adrministralive of Vocational Land Orbanism of Constructiori Builig Training Sub-Directorate of Urbanism Sub-Directorate of Architecture Sub-Directorate of and Laws Sub-Directorate Housing Policy o oituto Sub-DirctorateSub-Directorate of Hosn of Public Building of Housing Maintenance Sub-Directorate of Urban VWorks _and Topographical Surveys _Sub-Directorate of Regional Action Worid Bank

87 IVORY COAST SECOND URBAN DEVELOPMENT PROJECT Structure of the Ministry of Interior Minister Cabinet utonomous Autonomous Agency for Official 1 Agency for Travel and Independence Day Celebration Dîrectorate General of Directorate of Directorate of Directorate of Directorate of NaDirectorate of erritorial Administration Personnel Financial Affairs Civil Defense National Archives Price ôdirectorate of General j Sub-Directorate l _l Sub-Directorate Sub-Directorate 1_ and Political Affairs of Boudgetand l 1 of Historical of Printshop Sub-Directorate r Directorate of Local Sub-Directorate of Administrative Sub-Directorate L Authorities l 1 of Equipment Archives and of Official Gazette Documentation n;i recto rrate of Territorial L Divisions a WVorld Bank

88 84 -- E 1 E o - - -C - - r- C r.~~~~~ Ca X I i D IL - - ~ ~~~~~~~~~~~~~L odéx ci I f I A < 2E;cE 2E1 I

89 IBRD Qi<, j _01 ng u,t - xw_ e _t, 20,000 EqkEssEcou~ ~~~~~~~~~~~~~~~~cosruto~ ~ IENNE~ ~~ ~ ~ ~~~~~~~~~~~~~~~~~~~~~~Qd~ TG~~~~~~~~~~~~~~~~~~~~~~~~~~~~~IOEGS~. 4 - `~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~.i 0 `` 8 #% w4rt. ;`,I :~~~~~~~~~ ;h&,ndro4fj ~ ~ ~ ~~~~~ ~ ~~~~~~~~~~~~~~ à` 2 ow/t ~~~~~ f3~~~~~~~~~~~~~uaf~~~~~~j e ^ e ' IvoPY c ce iss S 4. Soubr N'do~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~0 MQ~~~~~~~r S ken '~ ~ ~ ~ ~~~~~u n e O lujlmeerk0:< 01 Nr obndé tafla20,

90

91 NOVEMBER IBRD ANYAMA IVORY COAST; SECOND URBAN PROJECT ABIDJAN LOCATION OF PROJECT COMPONENTS _siing Urban arens Mtinn ronds and streets R- lwaiys W Proposed urban rail service First Pro ect I! Community faciiities J ABOBO-NORD Y ] EL i ast-west ighwy -- Bo--; Si:"i Stes and services areas $'yj Upgroding area s Trunk sewers. \U: Az PA A' K Secorid Proiect Express bus network Irmffic management schemes (low income arecs).rocd construction F R O R S \ Bus station improvements PLATEAUX Bus depot Access control -- Ab,djon ~otticipa1 baanduty O I S KILOMETERS 1 -tjte AR ri/.ap ha- be-n patarpard by tho War/d BSok soa-ff r tclusivey for t/t coavneaca- //of toor.daro :f t/t,apart ta ai/t/ch it ta atoachad rho deoaataatno/ts Lsed oaan dortman shononattth/s m-p do not top/y on t/e patiotf /he Waf/d Bon/ atd /s af/t/tatas iany agtttantan tac (Spatta tua afa tn eratorv a,anyondorooraento a:5tx\2é {drtek R ><~ t/to C J( Yapaa9To- /ou/o \ --t4e`9(~~-'k MAL9ER4 Gd2UINEA i~tn I <") X (;\»OT-Loo S :, R'o) ' \N r a r I l c --- Y Y _-----A,, OC?Gl/ OFIBE R G V Zi 4 y fv f A - Ar A4NT/ C/CEA N G5LIeF OF GL//NFA a 5U1N A

92

93 IBRD IVCORY COAST SECOND URBAN PROJECT TRAFFIC IMPROVEMENT MEASURES: ADJAME EXISTING PLATEAU TRAFFIC MANAGEMENT ADJAME TRAFFIC MANAGEMENT PROPOSALS FIRST PROJECT; SECOND PROJECT - Mainl Streets Eost-West Hignwoy Ne. Rond Cons~truct,on- Suds-up Areos- Two-woy Buswuy Two - -uy BuSway ---- RAN Raoeiays --.- B,, L-nes Bus Stop lorprouements O Sigdnoed junci;on!sr. vret u ue Troffic lmprovements O Signnlhzed Junction Ipoeet On--oy Sirnees Pedestrion F-cifites -lupg,.ding A,eas O,,e-ausoStfeets O 25 M Th. h- b.."~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ T0nipnobn,nnJ,jyh -o,dnnks dio0h fhilf, È!naoton,ni,aind ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~~i în,,~~~~~~~~~~~oonnfînnnaun,mnf K,Fnnnios,eadh Oonae nng n f4 i B-k.npy i, i anc O Wnm/0 n~~~~~~~~~~~~~~~~~~~~~~flk CouiC,fni,»mCo, 00Y~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~C,mmdunnm,m inn uuoatati,s OS~~~~~~~~PlA TA DUBANC 80f inimimno' Ca mi nnunmcoinnni~~~~~~~~~~~~~~~~~~~~~~~~~~~~.....

94

95 ,C Gs = ~~~~~~~~~~~~~~~~~~~~~~~~i t, 1 i IVORY COAST l SECON:D~ U,,,IRBAN PROJECT C ` TRAFFIC IMPROVEMP MEASURES RT TREICHVILLE, MARCQRY, KOUMASSI IBRD o~~~~~~~~~~~~~~~- r - oe.,war i, Syst erm W *su New ltood Constrdo * u-<l - P- edestrioo Woys IFootpollrs On-woy syrir5 C uc,nipoeensd7 ': ;{!lsu S5... ";.je:1& :!! iff... i* S ;, li,; ;!jed;',i&d, -, F P- >-On-wy ysen i( '.i:5:, k ; s iii:':j :'An tu.p V, >,5t!;0&! \i/sa :,-, T 3.,,r`'!",p - :n:.. ",,",d 5ijd '' ja ;N«0j' SEODPOIC: ' ' o:g;'i r rrd ig't@b', Ir.,li P,"2E:m'i rnrr O. i-5;!s nsw5$ 'd'; L da" 1 ' r Ne Rad*. tuto ::,; ;,,;eja o Bus srdrou od Bse -nl Srets/ f À!. va jj j -.. " W -fi.li S KA -; I ;té -Ù ` 1~013< q!1!5 * i!r '';à : L, ; r: V 4 -~~~~~~* v-< ertiowy 15E>q S M- otoh -j7;t-ç;e j.ll;ii;0 Onr~ SytmST,:O.<I ~ ~ -wc ~ ~ ~~ < V li!< l'!2'! r mnii., v \ :B E,*- 4'.2 :v 2 X!.vi~ 'À k\\5. :.,r i:;.j;r _-.r' dog v '- B od. ~ I*p ' tv ii :, :: isl r s 3:ç' difddp d ie\'it L ;3;ls' t 09 t.;j s"i 15 e i L lui i l^ PI!-... ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ o- l: s p