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					                         AFRICAN DEVELOPMENT FUND




PROJECT :            PHASE II DAR ES SALAAM-ISAKA-KIGALI/KEZA-
                     MUSONGATI RAILWAY PROJECT STUDY


COUNTRY:             TANZANIA - RWANDA and BURUNDI



Date: September 2009


               Team Leader:          A. MOHAMED, Transport Economist,        OINF.2
               Members               E. MASENGO, Transport Engineer,         OINF.2
                                     N. SENOU,       Transport Economist ,   OINF.2
Project Team
               Division Manager:     J. RWAMABUGA,                  OINF.2
               Sector Director :     G. MBESHERUBUSA,               OINF
               Regional Director     D. GAYE,                       OREA/OREB

               A. OUMAROU,          Transport Engineer,           OINF.2
               B. TRAORE,           Transport Engineer,           OINF.1
               P. RUGUMIRE.,        Transport Engineer,           OINF.1
               N. KULEMEKA,         Socio-economist,              OINF.2
Peer Review    M. FARAOUN,          Financial Analyst,            OPSM
               A. BABALOLA,         Transport Engineer,           OPSM
               H. IMAN,             Financial Analyst,            OPSM
               M. SALAWOU,          Financial Analyst,            ONRI
               M. AJIJO,            Transport Economist,          ONRI
                                AFRICAN DEVELOPMENT FUND
                                            TRA-TUNIS
                                B.P. 323 TUNIS-BELVEDERE 1002
                                        Tel.: (216) 71 333 511
                                        Fax: (216) 71 352 933

                                PROJECT INFORMATION SHEET

                                            Date: 31 July 2009
The information given hereunder is intended to provide guidance to prospective suppliers, contractors,
consultants and all persons interested in the procurement of goods and services for projects approved by the
Boards of Directors of the Bank Group. More detailed information can be obtained from the executing
agencies of the Borrower and the Donees.


1.   COUNTRY AND PROJECT TITLE              :   Multinational: Tanzania-Rwanda-Burundi
                                                Phase II Dar es Salaam-Isaka-Kigali/Keza-Musongati
                                                Railway Project Study
2.   PROJECT LOCATION                       :   Tanzania, Rwanda and Burundi
3.   - BORROWER                             :   United Republic of Tanzania
     - DONEES                               :   Republic of Rwanda and Republic of Burundi
4. EXECUTING AGENCY                         :   Ministry of Infrastructure of Rwanda
                                                Boulevard de l’Umuganda
                                                B.P. 24 Kigali, Rwanda
5.   STUDY DESCRIPTION                      :   The study comprises: (A) Study Services; (B) Technical
                                                Assistance Services; (C) Financial Audit Services; and (D) Study
                                                Coordination and Management.
6.   SOURCES OF FINANCING
               •   ADF                                                    :       95.24%
               •   Government of Tanzania                                 :       1.58%
               •   Government of Rwanda                                   :       1.60%
               •   Government of Burundi                                  :       1.58%
7.   LOAN AND GRANT APPROVAL DATE                                         :       November 2009
8.   PROBABLE DATE OF STUDY START-UP/DURATION:
     - START-UP                                                           :       September 2010
     - DURATION                                                           :       15 months
9.   PROCUREMENT OF WORKS AND SERVICES:
     Services will be procured in accordance with ADF rules and procedures as follows:
     - Study                            :                Consultation on the basis of a short list
     - Technical Assistance             :                Consultation on the basis of a short list
     - Financial Audit                  :                Consultation on the basis of a short list




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      CURRENCY EQUIVALENTS, ACRONYMS AND ABBREVIATIONS

                           Currency Equivalents (July 2009)

           UA 1                 =       USD 1.55223
           UA 1                 =       RWF 881.954 (Rwanda Franc)
           UA 1                 =       TZS 2 047.20 (Tanzanian Shillings)
           UA 1                 =       BIF 1 865.40 (Burundi Franc)
                                      Fiscal Year
                         Tanzania:             1 July– 30 June
                         Rwanda:               1 July – 30 June
                         Burundi:              1 January – 31 December

                                Weights and Measures
                                    Metric System

                             Acronyms and Abbreviations

ADF        :      African Development Fund
AREMA      :      American Railway Engineering and Maintenance-of-Way Association
ASTM       :      American Society for Testing and Material
BIF        :      Burundi Franc
BNSF       :      Burlington Northern Santa Fe Railway
BS         :      British Standards
DBI        :      DB-International
DRC        :      Democratic Republic of Congo
DSM        :      Dar es Salaam
EAC        :      East African Community
ESIS       :      Environmental and Social Impact Study
ICD        :      Inland Clearing Depot
JTMC       :      Joint Technical Monitoring Committee
MID        :      Ministry of Infrastructure Development (Tanzania)
MININFRA   :      Ministry of Infrastructure (Rwanda)
MTPE       :      Ministry of Public Works and Infrastructure (Burundi)
MTPT       :      Ministry of Transport, Post and Telecommunications (Burundi)
NPV :             Net Present Value
PCU        :      Project Coordination Unit
PPP        :      Public Private Partnership
PRSP       :      Poverty Reduction Strategy Paper
RAHACO     :      Reli Assets Holding Company
RWF        :      Rwanda Franc
SUMATRA           Surface and Marine Transportation Regulatory Agency
TANROADS   :      Tanzanian Roads Agency
TAZARA     :      Tanzania and Zambia Railways
TPA        :      Tanzania Ports Authority
TRL        :      Tanzania Railways Limited
TRC        :      Tanzania Railway Corporation
TZS        :      Tanzanian Shillings
UIC        :      International Union of Railways
UA         :      Unit of Account
USD        :      United States Dollar


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                                                                 MULTINATIONAL: TANZANIA-BURUNDI-RWANDA
                                               PHASE II DAR ES SALAAM-ISAKA-KIGALI/KEZA-MUSONGATI RAILWAY PROJECT STUDY

                                                                                         RESULTS-BASED LOGICAL FRAMEWORK
Inception Date: August 2009
Completion Date: March 2012
Design Team: A. Mohamed, N. Senou, E. Masengo, OINF.2
                                                                                              SCOPE (TARGET                        PERFORMANCE                    INDICATIVE TARGETS AND
  HIERARCHY OF OBJECTIVES                            EXPECTED OUTPUTS                                                                                                                                                  ASSUMPTIONS/RISKS
                                                                                               POPULATION)                          INDICATORS                         TIME FRAMES
 Study goal                                     Impacts                                                                        Impact indicators                 Progress anticipated in the long term            Risk statement
 1. Contribute to strengthening railway        1. Existing railway line rehabilitated     - Tanzania, Rwanda and               Railway investment                1.  970 km of existing Dar es Salaam-            Failure to pursue regional integration
    infrastructure of Transport Corridors         and connections towards Rwanda          Burundi (about 59.4 million          programme between the three           Isaka railway line studied by 2012           policy and deterioration of stability in
    of East Africa with a view to ensuring        and Burundi constructed:                inhabitants), and                    countries implemented                 and rehabilitated in 2018                    the EAC Region
    regional integration and developing        2. Diversified trade channels and           - EAC                                                                 2. 700 km of new Isaka-Kigali/Keza-
    areas with mining , industrial and            increased inter-regional trade                                               Source: statistics from the           Musongati railway lines studied by           Mitigative measure
    agricultural potential                                                                                                     three countries                       2012 and constructed in 2018                 Commitment of Governments of the
                                                                                                                               Method: statistics prepared by        Source: statistics from the three            EAC Region
                                                                                                                               the three countries and the           countries
                                                                                                                               EAC                               Method: statistics prepared by the three
                                                                                                                                                                 countries and the EAC
 Study objective                                Effects                                    Beneficiaries                       Impact indicators                 Progress anticipated in the medium               Risk statement
                                                                                                                                                                 term
 1. Provide an optimal engineering design      1. Dar es Salaam-Isaka-Kigali/Keza-         - Shinyanga and Kagera              Mobilization of financing for                                                      1.   Non-adherence to deadlines for the
    of the Dar es Salaam-Isaka-                   Musongati rail link study carried out    Regions of Tanzania, Burundi         works on the railway line       1. In 2012: Round table of development                 conduct of study and validation of
    Kigali/Keza-Musongati railway line            and decision-making tools put at the     and Rwanda (about 22.7               based on the study                 partners and private sector held                    reports
    on the Central Transport Corridor             disposal of governments for              million inhabitants)                                                 2. Interest shown by potential project co-        2.   Lack of interest by the private
 2. Recommend Public Private                      financing the project and managing                                           Source: study reports and           financiers                                          sector and donors in financing the
    Partnership (PPP) models for                  railway infrastructure                                                        Bank supervision reports                                                               project
    financing the project and managing         2. Interest shown by private operators                                                                            Sources: Ministry of Infrastructure
                                                                                                                               Method: statistics prepared by    Development of Tanzania, MININFRA                Mitigative measures
    railway infrastructure                                                                                                     the three countries               of Rwanda and Ministry of Transport,
                                                                                                                                                                 Posts and Telecommunications of                  1.   Adequate and qualified team of
                                                                                                                                                                 Burundi                                               consultants
                                                                                                                                                                                                                  2.   Regular consultation of potential
                                                                                                                                                                 Method: statistics prepared by the three              investors during the study
                                                                                                                                                                 countries
 Activities                                     Outputs                                    Beneficiaries                       Output indicators                 Target value of indicator                        Risk statement
 1     Preparation of requests for             1.     RFPs prepared and approved           MID (Tanzania), MININFRA            1. Contracts for study,           1.   Contracts signed                            1.   Delays in the procurement of
       proposals (RFPs) and procurement               within the set deadline, and         (Rwanda) and MTPT                       technical assistance and      2.   Reports produced on time and                     consultancy services
       of consultancy services (study,                contracts awarded and signed         (Burundi), EAC, donors and              financial audit                    validated by the three countries and        2.   Lack of coordination and
       technical assistance and financial      2.     Study, technical assistance and      private sector                      2. Study reports and results           the Bank, seminars, workshop and                 inefficient monitoring of study by
       audit)                                         financial audit reports produced                                             of seminars, workshop and          round table held                                 the countries
 2     Provision and monitoring of                    on time and validated by the                                                 round table
       services (study, technical assistance          three countries                                                          Sources: reports of the                                                            Mitigative measures
       and financial audit)                    3.     Seminars, workshop and round                                             consulting firm, technical                                                    1.       Realistic contract award plan
 3     Organization of seminars, a                    table of development partners                                            assistance reports and Bank                                                   2.       Efficient study coordination and
       workshop and a round table, and                and private sector held                                                  supervision reports                                                                    monitoring team
       validation of study reports
               RESOURCES                            SOURCE        AMOUNT
                   (UAM)                                           (UAM)
                                                                                   %
 Studies                             4.26          ADF              5.00          95.24
 Technical Assistance                0.46       TANZANIA            0.083         1.58
 Financial audit                     0.04        RWANDA             0.084         1.60
 Study coordination and              0.49       BURUNDI             0.083         1.58
 monitoring
            TOTAL                      5.25         TOTAL            5.25          100



                                                                                                                          vi
                                                        TABLE OF CONTENTS ......................................... PAGE

1.     INTRODUCTION ........................................................................................................................ 1
2.     PROPOSED STUDY.................................................................................................................... 2
     2.1      Study Design and Formulation .............................................................................................. 2
     2.2      Study Objective ...................................................................................................................... 4
     2.3      Study Description .................................................................................................................. 5
     2.4      Estimated Study Cost ............................................................................................................ 6
     2.5      Sources of Financing ............................................................................................................. 6
     2.6      Expenditure Schedule and Disbursement Arrangements ...................................................... 7
3.     STUDY ORGANIZATION AND MANAGEMENT ................................................................ 8
     3.1      Executing Agency .................................................................................................................. 8
     3.2      Study Management ................................................................................................................ 8
     3.3      Implementation Schedule....................................................................................................... 9
     3.4      Reporting ............................................................................................................................. 10
4.     PROCUREMENT OF SERVICES ........................................................................................... 11
5.     STUDY JUSTIFICATION ....................................................................................................... 11
6.     OBLIGATIONS OF THE CONSULTANTS AND THE GOVERNMENTS ....................... 12
     6.1      Obligations of the Consultants ............................................................................................ 12
     6.2      Obligations of the Governments .......................................................................................... 13
7.     CONCLUSIONS AND RECOMMENDATIONS ................................................................... 13
     7.1      Conclusions ......................................................................................................................... 13
     7.2      Recommendations ................................................................................................................ 14
1.         INTRODUCTION

1.1        Tanzania, Rwanda and Burundi maintain fruitful ties, especially in transport.
Being landlocked countries, Rwanda and Burundi use the Central Transport Corridor to
access the sea through the Dar es Salaam Port in Tanzania. The Central Transport Corridor
(about 1 400 km long from Rwanda and about 1 500 km from Burundi) offers the possibility
of reaching the Dar es Salaam Port by road through a road-rail or lake-rail multimodal
combination. Rwanda and Burundi also use the North Transport Corridor (about 1 800 km
long from Rwanda and about 2 100 km from Burundi) which links them to the Mombasa Port
in Kenya via Uganda.

1.2         In 2008, Tanzania had a population of nearly 41.5 million, about 19.9% of which
live below the poverty line. Poverty affects almost 56.8% of Rwanda’s population and
approximately 70% of Burundi’s estimated in 2008 at 8.9 million and 10 million,
respectively. To combat poverty, each of the three countries has adopted a poverty reduction
strategy paper focused on the implementation of balanced macro-economic policies and
sectoral reforms, in consultation with the donor community and civil society. The set
objectives include ensuring the security of the population, strengthening economic growth by
boosting socio-economic activities and improving access both within the countries and to the
outside world by developing transport infrastructure.

1.3         To achieve such internal and external access, the three countries have developed
transport sector policies aimed at improving the efficiency of the transport system by
diversifying modes of transport. To implement these policies, they have prepared
programmes to improve transport infrastructure, particularly railway infrastructure, in order
to provide transport services to industrial and agricultural production areas as well as areas
with high mining potential. The authorities of all three countries therefore expressed in 1998
and reaffirmed in 2003 the need for a new Isaka-Kigali/Keza-Musongati railway line, which
is an extension of the current Dar es Salaam-Isaka line. The study of the project to
rehabilitate the current Dar es Salaam-Isaka railway line and build a new line between Isaka
in Tanzania, Kigali in Rwanda and Musongati in Burundi is among the priorities of these
programmes.

1.4        It is worth noting that the rehabilitation of the current railway line and
construction of the new one are also in accordance with the priority objectives of regional
organizations such as the East African Community (EAC), Economic Community of Great
Lakes Countries (CEPGL) and Common Market for Eastern and Southern Africa (COMESA)
which prioritize the development of inter-state transportation infrastructure, notably railways.
At the regional level, EAC countries have recognized the need to streamline the development
of railway transport and harmonize transport operations along the main transport corridors.
To that end, a Railway Master Plan for EAC countries is on the verge of adoption. The plan
defines the railway sector development strategy that can meet the demand for infrastructure
and services needed to stimulate trade and growth, and promote regional integration.
1.5        The three countries planned to seek financing to implement the railway project
study, based on such common desire to strengthen their socio-economic cooperation and
regional integration. This involves exploring the possibility of financing the rehabilitation of
the existing Dar es Salaam - Isaka railway line and building the new Isaka–Kigali/Keza-
Musongati railway line, on the one hand, and managing the railway infrastructure, on the
other hand. The infrastructure is expected to link Rwanda and Burundi to Dar es Salaam Port
and provide transport services to the Eastern Region of the Democratic Republic of Congo
(DRC) and Uganda’s South-West Region.


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1.6         As part of implementing the regional integration policy and in a bid to support
economic development, in particular mining, industrial and agricultural development, Phase I
of the Isaka-Kigali/Keza-Musongati railway project study was financed with an ADF grant,
an IPPF-NEPAD grant and a Development Bank of South Africa (DBSA) grant. In particular,
Phase I study analyzed the different rail alignments with the associated physical and technical
constraints, project environmental and social impact, the economic and financial feasibility
and the existing institutional framework. The Phase I study results were presented to the
round table of development partners and the private sector held in Tunis in March 2009.
Participants in that international forum, notably mining companies, railway operators,
investment and development banks, showed interest in the project and encouraged the three
countries to pursue the study. Following the conclusions of the round table, and to ensure the
implementation of the investment programme and capitalize on the interest shown in the
project, the three countries requested the Bank to finance Phase II of the study.

1.7        The project objectives are in keeping with NEPAD’s in the transport sector. They
are also in line with: (i) the Country Strategy Papers (CSPs) of Tanzania, Rwanda and
Burundi and (ii) ADF-XI operational priorities which place a high premium on infrastructure,
governance and regional integration.

1.8        This loan and grant proposal is a follow-up to a joint request by the three countries
to the Bank to finance Phase II of the project study. This Phase provides for: (i) an
engineering, economic, financial, institutional, environmental and social study; and (ii)
recommendation of models for financing the project and managing railway infrastructure. It
is based on the results of the preparation mission (see the Terms of Reference attached)
conducted in June-July 2009 and on data collected in the three countries.

2.         PROPOSED STUDY

2.1        Study Design and Formulation

2.1.1       Phase II of the project study will cover the existing Dar es Salaam-Isaka railway
link and its Isaka-Kigali/Keza-Musongati extension. Phase II is part of the implementation by
the three countries of the EAC priority investment programme which attaches special
importance to multinational poverty reduction projects, through regional infrastructure
development, and to cooperation among member countries. The preparation of the Terms of
Reference (TORs) under Phase II of the study drew lessons from Phase I (findings of the
study and conclusions of the round table) in terms of design, cost and approach. In that
regard, Phase II will focus more on deepening the institutional framework and structuring the
project in the form of Public Private Partnership (PPP). The preparation of the TORs also
made use of data collected during the preparation mission and discussions in the three
countries, notably with representatives of the three governments, rail transport specialists in
Tanzania, rail transport users (traders, industrialists, etc.) and private sector operators,
including mining companies active in the three countries.

2.1.2       Phase II of the study will also deepen: (i) the analysis of the project’s socio-
economic benefits, notably for the most vulnerable population segments (women, children,
rural dwellers, etc.), in terms of business development and enhancement of economic
potential (particularly in mining, industry and agriculture) as well as facilitating the low-cost
marketing of goods and movement of people; (ii) the comparative analysis of modes of
transport (road, rail and rail-road and lake-rail combination) on the corridors to Rwanda and
Burundi; (iii) the environmental and social impact of the future railway project (impact of



                                                2
climate change on the project, spread of sexually-transmitted infections, including HIV/AIDS
and the impact of rail transport on public security) and appropriate measures for mitigating
the negative impacts during and after project implementation; and (iv) private sector
participation in financing the project and managing railway infrastructure.

2.1.3       Phase II of the study will provide the Governments of Tanzania, Rwanda and
Burundi with data and decision-making tools to facilitate the mobilization of financing,
project implementation and railway infrastructure management. It will cover: (A) the existing
Dar es Salaam-Isaka railway line (970 km); and (B) a new railway line broken down as
follows: (i) 494 km-long Isaka-Kigali Section (of which 355 km in Tanzania and 139 km in
Rwanda); and (ii) 197 km-long Keza-Musongati Section (including 139 km in Burundi and
58 km in Tanzania). It is worth noting that four mining sites will be connected to the Keza-
Musongati Section by 50 km-long branch lines. The Project Impact Area (PIA) covers
Rwanda, Burundi and the North-West of Tanzania (Shinyanga and Kagera Regions). Its
population is estimated at about 22.7 million, 53% of which live below the poverty line. Its
economy is driven by agriculture which employs about 90% of the population. The PIA is
also rich in mineral ore. The subsequent implementation of the project will help to develop
such mineral resources (the tapping of which is hampered by the bad state and/or absence of
appropriate transport infrastructure) and contribute to boosting agricultural activities.

2.1.4       In designing the Dar es Salaam-Isaka-Kigali/Keza-Musongati railway line, the
proposed study will take into consideration internationally recognized engineering standards.
In particular, it will conduct a cost-benefit analysis of engineering standards for the following
three types of track gauge: (i) the current meter gauge of 1 000 mm with a gross allowable
load of 25 tons/axle; (ii) the Cape Gauge of 1 067 mm with a gross allowable load of 25
tons/axle; (iii) the standard gauge of 1 435 mm, i.e. UIC standard (European standards) with a
gross allowable load of 25 tons/axle, or the AREMA gauge (North American standards) with
a gross allowable load of 32 tons/axle. The Cape Gauge is the one used on the railway line
linking Tanzania to Zambia and equally used by southern African countries.

           Aid Coordination

2.1.5      The three Governments have undertaken to improve the performance of the
transport sector within the framework of their transport sector policies. Aid provided by
donors is coordinated in the context of these policies by the ministries in charge of finance. In
addition, consultation meetings held with donors, notably the World Bank and the European
Union, during the study terms of reference preparation mission helped to exchange views on
the constraints, reforms and ongoing/future operations in the transport sector, as well as
ensure their consistency. Discussions were also held with donors, notably the World Bank
and the European Union, on the design of Phase II of the study which is the subject of this
memorandum. Although these donors will not finance the study, they will support its
implementation. Furthermore, they will participate in project financing. The discussions
confirmed the Bank’s approach which is to focus Phase II of the study on PPP structuring in
order to enhance the project’s appeal to potential investors.

2.1.6       At the end of the study, a round table of development partners and potential private
investors will be organized to arouse interest in financing the project. The cost of the round table
is included in the cost of the study. Dialogue and exchange of views with donors represented in
the three countries will also be held during Bank supervision missions.




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           Participatory Approach

2.1.7       In line with the participatory approach, the scope and methodology of the study
were discussed during the terms of reference preparation mission. Discussions were held with
transport specialists (especially rail transport specialists), governments of the three countries,
private sector operators (particularly mining companies operating in the three countries) and
the population in the PIA. The proposed study will also follow the participatory approach
(public consultation) in accordance with the relevant Bank guidelines. To that end, nine
seminars and/or workshops (three per country) will be organized for various socio-
professional groups (population, private operators, NGOs, donors, community organizations,
etc.) and ministerial departments of the three countries. Public consultations in all areas
covered by the study will be held with various stakeholders and beneficiaries, including
public and private sector vocational associations, local authorities and development
committees, to obtain points of view with regard to the construction of the proposed railway
line. The observations and recommendations made at the end of the seminars and workshops
will be reflected in the final study report.

           Private Sector Participation

2.1.8       The three Governments have liberalized transport sector activities by involving
the private sector. However, they continue to assume responsibility for mobilizing investment
resources. Hence, the Tanzanian Government leased the technical and commercial operation
of the railway network of the former Tanzania Railways Cooperation (TRC) to a private
operator, Tanzania Railway Limited (TRL). However, the rail assets remain the property of
the Tanzanian State through Reli Assets Holding Company (RAHCO) which replaced
Tanzania Railways Cooperation. RAHCO manages the leased rail assets and retains
responsibility for implementing heavy infrastructure renewal projects. The Government of
Tanzania also established a regulator, Surface and Marine Transport Agency (SUMATRA),
responsible for issuing railway operating licenses, ensuring railway safety and approving
engineering and maintenance standards. The consultant will examine the operation of the
railway concession agreement in force between TRL and the Government of Tanzania as well
as other concession agreements in the region, and draw lessons for the proposed study.
Furthermore, as part of the national transport policy which prioritizes private sector
involvement in transport activities, the three Governments intend to involve the private sector
in financing the project and managing future railway infrastructure in the form of Public
Private Partnership (PPP).

2.2        Study Objectives

2.2.1      The overall study objective is to contribute to strengthening railway infrastructure
of East Africa Transport Corridors to meet the needs of regional integration and development
of areas with mining, industrial and agricultural potential.

2.2.2      The specific objective of Phase II of the study is to: (i) provide an optimal
engineering design of Dar es Salaam-Isaka/Keza-Musongati railway line on the Central
Transport Corridor; and (ii) recommend Public Private Partnership (PPP) models for
financing the project and managing railway infrastructure.




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2.3        Study Description

2.3.1      Phase II of the study concerns the rehabilitation of the existing Dar es Salaam-
Isaka railway line and construction of the new Isaka-Kigali/Keza-Musongati railway line.
Technically, three gauge options will be analyzed, namely: (a) construction of the new
railway line and rehabilitation of the current railway line keeping the current meter gauge
standard; (b) construction of the new railway line and rehabilitation of the existing railway
line keeping the current meter gauge standard, with the possibility of subsequently converting
it into Cape Gauge for harmonization with the railway networks of southern Africa; and (c)
construction of the new railway line and rehabilitation of the existing railway line with UIC
(European standards) or AREMA (North American standards) standard gauge.

           Study Components

2.3.2       Study services: these will cover engineering, economic, financial, institutional,
environmental and social impact aspects of the project, and will involve: (i) reviewing and
deepening Phase I Study reports, the BNSF report on the feasibility study to rehabilitate the
existing railway line, the Master Plan of Dar es Salaam Port as well as any other document
deemed relevant for Phase II of the study; (ii) estimating/fine-tuning the cost of rehabilitating
the existing railway line and building the new railway line using different track gauge
standards; and (iii) conducting a cost-benefit analysis of the options proposed and submitting
to the three Governments detailed recommendations on the optimal option.

           This component includes the design of a Public Private Partnership (PPP) model
and will entail identification/diagnosis of existing and potential problems relating to the legal,
regulatory, institutional and financial framework which the three Governments would face.
The Governments must first find appropriate solutions to such issues in order to facilitate and
promote the implementation of the future railway project. The solutions will include: (i)
renegotiating the existing concession agreement between the Government of Tanzania and
Tanzania Railway Limited; (ii) streamlining and harmonizing customs operations through the
new Customs Union to shorten timelines/eliminate delays and ensure traffic fluidity; (iii)
preparing a draft agreement for future railway concession; (iv) preparing a
schedule/timeframe for all activities needed for project implementation and sustainability;
and (v) preparing a transport and trade facilitation programme.

2.3.3       Technical assistance services: plans have been made to mount Technical
Assistance (TA) for the study at the Study Coordination Unit (SCU). This will comprise
technical support to the SCU in monitoring study activities and reviewing various reports
prepared as part of the study (draft/final inception and progress reports). In that regard, TA
will participate in meetings of the Study Technical Monitoring Committee (STMC) to assess
and reach a decision on the technical quality of reports and their acceptability, or decide on
any other technical issues concerning the study.

2.3.4      Financial audit services: the study accounts will be audited annually. The audit
firm must ascertain that the study accounts are kept in accordance with good accounting
practices.




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2.3.5      Study coordination and monitoring: the Study Coordination Unit and the Study
Technical Monitoring Committee set up since 2004 under Phase I will coordinate and
monitor the study. This task includes administration, management and routine monitoring of
the technical, administrative and financial implementation of study activities.

2.4         Study Estimated Cost

            The estimated cost of Phase II of the study, net of taxes and customs duty, will
amount to USD 8.15 million or UA 5.25 million, of which UA 4.36 million (83.06% of the
study cost) payable in foreign exchange and UA 0.89 million (16.94% of the study cost)
payable in local currency. This cost includes 5% and 4.06% provision for physical
contingencies and price escalation, respectively. It was estimated on the basis of the unit
prices of recent studies carried out in the three countries and others approved lately by the
ADF. The estimated study cost, details of which are given as Annex 3, is summarized in

                                      Table 2.1 below.
                    Study Estimated Cost (in USD Million and UA Million)
 Component                               USD (Million)               UA (Million)
                                         Foreign    Local    Total   Foreign    Local    Total
                                         Exchange Currency           Exchange Currency
 A – Study and technical assistance      5.87       0.85     6.72    3.78       0.54     4.32
 services
 A.1 Study                               5.31       0.76     6.07    3.42     0.48       3.90
 A.2 Technical assistance to SCU         0.56       0.09     0.65    0.36     0.06       0.42
 B – Financial audit services            0.05       -        0.05    0.03     -          0.03
 C – Study coordination and monitoring   0.28       0.41     0.69    0.18     0,27       0.45
 Base cost                               6.20       1.26     7.46    3.99     0.81       4.80
 Physical contingencies (5%)             0.31       0.06     0.37    0.20     0.04       0.24
 Price escalation (4.06%)                0.26       0.05     0.32    0.17     0.04       0.21
 Total cost (net of taxes and customs    6.77       1.37     8.15    4.36     0.89       5.25
 duty)

2.5         Sources of Financing

2.5.1        The study will be financed by the ADF and the Governments of Tanzania,
Rwanda and Burundi. ADF financing will not exceed UA 5 million (including UA 3.3
million from multinational resources and UA 1.7 million from country allocations). The UA
3.3 million multinational allocation will be shared equitably between the three countries. This
financing represents 95.24% of the total cost and will cover 100% of the foreign exchange
cost (UA 4.36 million) and 72% (UA 0.64 million) of the local currency cost. ADF financing
will cover: (i) the entire expenditure on the study, technical assistance to the SCU and
financial audit services; and (ii) part of the expenditure on study coordination and monitoring
activities. It is worth noting that Tanzania is only eligible for the ADF loan, and Rwanda and
Burundi for the ADF grant.

2.5.2       The three Governments will contribute UA 0.25 million to study financing,
representing 4.76% of the total cost or 28% of the local currency cost. The contribution of the
Governments will cover part of the expenditure on study coordination and monitoring. It will
be shared as follows: (a) UA 0.083 million for Tanzania; (b) UA 0.084 million for Rwanda;
and (c) UA 0.083 million for Burundi. This distribution is in keeping with ADF-XI
provisions for multinational operations. Table 2.2 below shows the financing plan. The
detailed financing plan is given as Annex 4.




                                                6
                                               Table 2.2
                                     Financing Plan (in UA Million)
          Source                      Foreign       Local Currency   Total    % of Total Cost
                                      Exchange
          ADF                         4.36          0.64             5.00     95.24%
          Government of Tanzania      -             0.083            0.083    1.58%
          Government of Rwanda        -             0.084            0.084    1.60%
          Government of Burundi       -             0.083            0.083    1.58%
          Total cost (net of taxes
          and customs duty)           4.36          0.89             5.25     100%

2.5.3       The breakdown of ADF financing between regional allocation and country
allocations is shown in Table 2.3 below.

                                        Table 2.3
                         Breakdown of ADF Financing (in UA Million)
                Source                                Total             % of Total Cost
                ADF (Regional)                        3.30              66.0%
                ADF-Country/Tanzania                  0.56              11.2%
                ADF-Country/Rwanda                    0.57              11.4%
                ADF-Country/Burundi                   0.57              11.4%
                Total ADF                             5.00              100%

2.6        Expenditure Schedule and Disbursement Arrangements

           Expenditure Schedule

2.6.1      The expenditure schedule is shown in Table 2.4 below.

                                        Table 2.4
               Expenditure Schedule by Expenditure Category (in UA Million)
          Expenditure Category               2010      2011      2012          Total
          Studies                            1.28      2.13      0.85          4.26
          Technical assistance to SCU        0.09      0.28      0.09          0.46
          SCU and STMC operating cost        -         0.02      0.02          0.04
          Financial audit                    0.15      0.25      0.09          0.49
          Total (net of taxes and
          customs duty)                      1.52      2.68      1.05          5.25

           Disbursement Arrangements

2.6.2       ADF disbursement: the direct payment method will be used to fund study,
technical assistance and financial audit services, in accordance with the expenditure schedule.
Disbursement requests will be prepared by Rwanda, lead country and study coordinator, and
signed by the appropriate authority in that country. A special foreign exchange account bearing
the study name will be opened in the National Bank of Rwanda, into which ADF resources
intended for study coordination and monitoring expenses will be deposited. Evidence of opening
the special foreign exchange account will be a loan and grant condition (Condition 7.2.3 Bi).




                                                      7
2.6.3       Counterpart contribution: each of the three countries will open a special local
currency account bearing the study name in a commercial bank acceptable to the ADF, into
which the counterpart contribution will be deposited. Evidence of opening these three special
local currency accounts will be a loan and grant condition (Condition 7.2.2 Bi, 7.2.3 Bii and
7.2.4 Bi). These accounts will be replenished in accordance with the expenditure schedule.

3.         STUDY ORGANIZATION AND MANAGEMENT

3.1        Executing Agency

3.1.1       The study will be implemented under the oversight of ministries in charge of
transport in the three countries, namely Rwanda’s Ministry of Infrastructure (MININFRA),
Tanzania’s Ministry of Infrastructure Development (MID) and Burundi’s Ministry of
Transport, Post and Telecommunications (MTPT). However, for reasons of efficiency in
steering the study, the three Governments have agreed that Rwanda will coordinate the study
and that MININFRA will be the study executing agency.

3.1.2       For routine management and monitoring of study activities, the Study
Coordination Unit (SCU) set up in Rwanda since 2004 under Phase I will manage and
monitor the implementation of Phase II. The SCU will be placed under the supervision of the
Planning, Policy and Capacity Building Unit (PPCBU) of MININFRA. The SCU will
comprise a Coordinator assisted by a Deputy and an Accounts Manager, as well as support
staff. It will ensure the technical, administrative, accounting, financial and organizational
management of the study. In addition, the SCU will regularly inform the EAC and the Central
Transport Corridor Coordination Authority on progress of the study. The study organizational
chart is shown as Annex 2.

3.1.3       Since 2004, the SCU has satisfactorily coordinated, managed and monitored Phase
I of the study financed by the Bank. To strengthen its technical and operational capacity, the
SCU will, under Phase II, receive technical assistance support which will collaborate with the
Unit to provide technical monitoring for the study. The technical assistance summary Terms
of Reference are given as Annex 7. Provision to ADF of proof of appointing the Coordinator,
his Deputy and the Accounts Manager whose qualifications would have been deemed
acceptable to the ADF beforehand, will be a loan and grant condition (Condition 7.2.3 Biii).

3.2        Management of the Study

3.2.1      The Study Coordination Unit based in Rwanda will be responsible for
administering and managing the study, in particular preparing procurement and contract
documents, planning meetings of the Study Technical Monitoring Committee, seminars and
workshops, and round table of development partners and potential private investors. It will
also plan and prepare disbursement requests, assuming responsibility for the administrative
and accounting management of the study. Concerning technical monitoring, the Study
Technical Monitoring Committee (STMC), set up in 2004 under Phase I and chaired by
Tanzania, will be charged with the technical monitoring of Phase II. The STMC will operate
under the supervision of the Transport Department of Tanzania’s Ministry of Infrastructure
Development (MID), while maintaining a functional relationship with Burundi’s MTPT and
Rwanda’s MININFRA. It will work in close collaboration with the SCU.




                                              8
3.2.2       The STMC will comprise (A) For Tanzania: apart from the Chairperson of the
Committee, three civil engineers, two from Reli Assets Holding Company (RAHCO) and one
from Tanzania Ports Authority (TPA), one transport economist from the Ministry of
Infrastructure Development (MID), and one environmentalist from the Office of the Vice-
President in charge of Environment; (B) For Rwanda: three civil engineers from the
Ministry of Infrastructure (MININFRA), including the Study Coordinator and his/her Deputy,
one economist from the Ministry of Finance and Economic Planning and one
environmentalist from the Ministry in charge of Environment; and (C) For Burundi: two
civil engineers from the Ministry in charge of Public Works and Infrastructure (MTPE), one
economist from the Ministry of Transport, one economist from the Vice-Presidency and one
environmentalist from the Ministry in charge of Environment. Provision to the ADF of proof
of appointing STMC members, whose qualifications and experience would have been
deemed acceptable to the ADF beforehand, will be a loan and grant condition (Conditions
7.2.2 Bii, 7.2.3 Biv and 7.2.4 Bii).

3.2.3      STMC members will reside in their respective countries. The STMC will meet
once every quarter and as necessary throughout the study duration, alternating from country
to country. The Committee will be responsible for: (i) reviewing various reports prepared
under the study (draft and final inception and progress reports); (ii) deciding on the technical
quality of reports and their acceptability; and (iii) deciding on any other technical issues
concerning the study. In addition, the STMC will take part in the nine seminars proposed
(three per country), the study findings validation workshop by the three countries and the
round table of development partners and potential private investors.

3.2.4       Apart from the STMC, the Tanzanian, Rwandan and Burundian Governments will
assign six national counterparts, two per country, to the study. The counterparts will be either
civil engineers, and/or transport economists, and/or environmentalists, and will show proof of
two to five years’ experience. They will work with a consulting firm with the aim of
acquiring training. Costs relating to the supervision of the six counterparts (travel, per diem
and travel allowance) will be part of the study cost and included in the contract of the
consultant in charge of the study.

3.3        Study Implementation Schedule

           The duration of all study activities, starting from the loan and grant approval, will
be twenty-nine months, including fifteen months for study implementation. The provisional
study implementation schedule is summarized in Table 3.1 below and detailed in Annex 5.




                                               9
                                                           Table 3.1
                                       Summary Provisional Study Implementation Schedule
ACTIVITY                             ACTION/AGENCY                                                     END
A – PRELIMINARY ACTIVITIES
Grant/ Loan Approval                  ADF                             Nov - 2009                       Nov - 2009
Signature of Grant Protocol of
Agreement/Loan Agreement              Gov. (RW, TZ & BUR)/ADF         Dec - 2009                       May- 2010
Publication of General Procurement
Notice                                ADF/Gov. (RW, TZ & BUR)         Dec - 2009                       Dec - 2009
Fulfilment of Conditions Precedent to
Grant/Loan Effectiveness              Gov. (RW, TZ & BUR)             Dec - 2009                       Aug - 2010
Fulfilment of Conditions Precedent to
First Disbursement of Grant/Loan      Gov. (RW, TZ & BUR)             Dec - 2009                       Aug - 2010
Procurement of Consultancy Services ADF/Gov. (RW, TZ & BUR)           Jan - 2010                       July - 2010
Procurement of Technical Assistance
Services                            ADF/Gov (RW, TZ & BUR)            April - 2010                     Aug - 2010
Procurement of Financial Audit
Services                            ADF/Gov. (RW, TZ & BUR)           June - 2010                      Dec - 2010

B- STUDY, TECHNICAL ASSISTANCE AND FINANCIAL AUDIT SERVICES
B.1 STUDY SERVICES
Study Start-up                       Consultant                       Sept - 2010                      Sept - 2010
Study Inception Report               Consultant                       Oct - 2010                       Oct - 2010
Study Information Seminar            Consultant/Gov. (RW, TZ & BUR)   Nov - 2010                       Nov - 2010
Quarterly Study Progress Reports     Consultant                       Dec -2010 March June Sept 2011
First Results Presentation Seminar   Consultant/Gov. (RW, TZ & BUR)   May - 2011                       May - 2011
Draft Study Reports                  Consultant                       Aug - 2011                       Aug - 2011
Study Restitution Seminar        Consultant/Gov. (RW, TZ & BUR)       Sept - 2011                      Sept - 2011
Study Validation Workshop by the
Three Countries                  Consultant/Gov. (RW, TZ & BUR)       Oct - 2011                       Oct - 2011
No-Objection of Draft Study Reports ADF/Gov. (RW, TZ & BUR)           Oct - 2011                       Oct - 2011
 Final Study Reports               Consultant                         Nov - 2011                       Nov - 2011
 Round Table of Donors and Private
Investors                          Gov. (RW, TZ & BUR)/ADF            Nov - 2011                       Nov - 2011
B.2 Technical Assistance Services
Start-up of Technical Assistance     Consultant                       Nov - 2010                       Nov - 2010
Technical Assistance Inception Report Consultant                      Nov - 2010                       Nov - 2010
Quarterly    Technical     Assistance
Progress Reports                      Consultant                      Feb, May, Aug Nov - 2011
Draft Technical Assistance Report Consultant                          Nov - 2011                       Nov - 2011
No-Objection of Draft Technical
Assistance Report                 ADF/Gov. (RW, TZ & BUR)             Dec – 2011                       Dec – 2011
Final Technical Assistance Report    Consultant                       Dec - 2011                       Dec - 2011
B.3 Financial Audit Services
First Financial Audit                Consultant                       March 2011                       March 2011
Final Financial Audit                Consultant                       March 2012                       March 2012
RW = Rwanda; TZ = Tanzania; BUR = Burundi; ADF = African Development Fund


          3.4               Reporting

                      The Consultant will produce an inception report, quarterly progress reports and
          draft and final reports in English and French. The reports will be forwarded simultaneously to
          the ADF and the executing agency as per the proposed schedule.




                                                                      10
4.           PROCUREMENT OF SERVICES

4.1         Services will be procured in accordance with Bank Rules of Procedure for the Use
of Consultants. Procurement will be carried out by consultation on the basis of two short lists
of consulting firms (one for the study and the other for technical assistance) and a short list of
audit firms (for the financial audit). The procedure for selecting consultants for the study and
technical assistance will be based on the “Quality and Cost Based Selection” (QCBS)
method. For the financial audit, the procedure for selecting an audit firm will be based on the
“Lowest Cost Selection” (LCS) method. The services procurement procedure will be
managed entirely by Rwanda, lead country and Study Coordinator, in conjunction with the
Study Technical Monitoring Committee. Rwanda’s national procurement laws and
regulations have been examined and deemed acceptable. Arrangements for procurement of
services are presented in Table 4.1 below. The contract award plan is shown in Annex 6.

                                              Table 4.1
                       Arrangements for Procurement of Services (in UA Million)
     Expenditure Category        ICB   LCB   Others               Short List    Total
     Study                       -     -     -                    4.26 [4.26]   4.26    [4.26]
     Technical Assistance        -     -     -                    0.46 [0.46]   0.46    [0.46]
     Financial Audit             -     -     -                    0.04 [0.04]   0.04    [0.04]
     Study Coordination and
                                 -     -     0.49        [0.24]   -             0.49    [0.24]
     Monitoring
     Grand Total                                                                5.25    5.00
[ ] ADF Contribution


4.2         A General Procurement Notice (GPN) will be issued and published in the United
Nations “Development Business Journal” immediately upon approval of the loan and grant
proposal by the Board of Directors. The lead country will submit the following documents for
review by the Bank before they are finalized and published: (i) Requests for proposals (RFP)
from consulting firms for the study, technical assistance and financial audit; (ii) short lists of
consulting firms; (iii) bid appraisal reports and reports on appraisal of consultants’ proposals,
including recommendations for contract award; and (iv) draft contracts where those in the
request for proposals (RFP) had been amended (RFP).

5.           STUDY JUSTIFICATION

5.1        The Dar es Salaam-Isaka-Kigali/Keza-Musongati railway project study addresses
the need to open up and develop a vast service area covering not only Rwanda, Burundi and
North-West of Tanzania, but also the East of Democratic Republic of Congo and South-West
Uganda. This area is a rich reservoir of diverse mineral ores. It is also an area for growing
food and cash crops, and for manufacturing industries.

5.2         Rwanda abounds in mineral deposits most of which are tapped on a small-scale.
Available statistical data on Rwanda’s development indicators show that mining production,
though still low, was about 3 835 tons of cassiterite, 188 tons of colombo-tantalite, and 1 436
tons of tungsten in 2006. Rwanda also has natural gas reserves in Lake Kivu, estimated at 55
billion m3, of which 39 billion m3 exploitable, and precious stones (ruby and sapphire). In
addition, the country has raw materials for various industries, such as travertine and pozzolan
for the cement industry; lime and kaolin for the ceramic industry, silica sand for the glass-
making industry; trachyte for making fertilizers, and building materials (marble, granite, clay
and laterite).




                                                    11
5.3         Shinyanga and Kagera Regions in Tanzania, with a population of about 5 185 000,
have vast reserves of nickel, gold and diamond which are not yet fully exploited. Mining
activity is dominated by gold extraction, mainly in the Kahama district. Tanzania has nickel
sulphide deposits estimated at about 36 million tons with 2.8% nickel content at the Kabanga
site. The feasibility study for the exploitation of these mines is being carried out by the
franchisee company (Kabanga Nickel).

5.4         Burundi has huge nickel deposits (sulphuric and lateritic), the most famous of
which is the Musongati deposit with reserves estimated to be more than 185 million tons with
a 1.6% nickel content, including 72 million tons of proven reserves. Multinational mining
companies are interested in exploiting the mineral deposits (nickel, copper and cobalt). In
addition, the Burundian sub-soil contains huge mineral reserves proven by various studies. In
the North, there are many gold, cassiterite and colombo-tantalite deposits, and all over the
country there are proven reserves of vanadium ore (about 10 million tons), and phosphates
(about 17 million tons). Burundi also has industrial mineral ores such as carbonate rocks
(about 2 million tons) used for making cement and raw materials (kaolin, quartzite and
feldspar) used for producing ceramic ware.

5.5         The main expected socio-economic benefits of the project are: (i) a sharp drop in
the cost of imported goods at national level. Transport costs account for about 40% of the
cost of imported products in Rwanda and Burundi. The drop in the cost of imported goods
will result in a reduction of the trade deficit, an increase in foreign exchange earnings and,
ultimately, increased economic growth; (ii) a fall in the cost of exporting mine and
agricultural products, and encouragement of private operators to promote and diversify
exports; and (iii) promotion of productive activities (primary and secondary sectors), thanks
to new means of transporting goods at the internal and international levels.

5.6        The interest shown in the railway line also stems from the comparative advantages
of this mode of transport compared to the road. This includes bulky commodity transport
capacity (mine, industrial, agricultural products), lower transport cost, greater security/safety
of transporting goods, a longer life span of railway infrastructure (at least 30 years), an
organized railway transport offer which facilitates programming of production in the area by
economic actors.

5.7         The proposed study will enable the Governments of Tanzania, Rwanda and
Burundi to have instruments for making decisions on rational investment in the proposed
railway infrastructure which will contribute to: (a) developing mining, industrial and
agricultural activities in the area; and (b) opening up the countries internally and to the
outside world and regional integration, by facilitating low-cost transportation of goods within
the area. The study will also enable them to have a PPP model that will draw the involvement
of the private sector and help mobilize financing for the project and managing railway
infrastructure.

6.         OBLIGATIONS OF THE CONSULTANTS AND THE GOVERNMENTS

6.1        Obligations of the Consultants

           The consultants will be solely responsible for delivering study, technical
assistance and financial audit services. They will take all the necessary steps to ensure the
delivery of services within the set time frames. They will draw up an accurate list of all the
documents put at their disposal by the three governments or produced during the delivery of



                                               12
their services. The documents, which they will keep, will be considered as confidential and
used as such. They will be returned to the governments at the end of the assignment. The
consultant responsible for the study will, within the framework of his/her contract, cover all
expenses relating to the organization of information seminars, restitution and validation of
study findings, training of counterparts as well as expenses for the round table of
development partners and private investors.

6.2        Obligations of the Governments

6.2.1      The three Governments will put at the disposal of the consultants all existing
studies, documents and information that may help them in their mission. The cost of recent
railway works carried out in Tanzania and in the region as well as recent data on the costs of
railway fixtures and equipment maintenance will be communicated to the consultant
responsible for the study. The Governments will, during each financial audit operation,
provide the audit firm with all supporting documents related to the use of counterpart funds.
The Governments will provide, in each country, working premises for the Study Technical
Monitoring Committee.

           Facilities and Exemptions

6.2.2       The Governments will grant the consultants and staff duly recruited to work under
them (a list will be communicated beforehand through the executing agency): (i) exemption
from immigration restrictions for themselves and members of their family, the necessary
entry visas, permits and authorizations for their travel on the entire territories of Tanzania,
Rwanda and Burundi, and access to existing facilities; and (ii) authorization to import foreign
currencies into Tanzania, Rwanda and Burundi, in accordance with exchange regulations in
the three countries. The Governments will authorize, as appropriate, the re-exportation of the
remainder of such foreign currencies at the end of delivery of the consultants’ services.

7.         CONCLUSIONS AND RECOMMENDATIONS

7.1        Conclusions

            The Governments of Tanzania, Rwanda and Burundi intend to develop sufficient
rail transport infrastructure to support their economic and social development programmes
and promote regional economic cooperation. That is the purpose of this study and the subject
of this memorandum. The study will facilitate the technical design of the Dar es Salaam-
Isaka-Kigali/Keza-Musongati railway line on the Central Transport Corridor and the
development of appropriate Public Private Partnership (PPP) financing models for the project
and for the management of railway infrastructure. It will also facilitate rational decision-
making on financing the project and managing railway infrastructure. The estimated cost of
Phase II of the study is UA 5.25 million. The maximum contribution of the ADF stands at
UA 5 million and covers the entire foreign exchange cost and part of the local currency cost.
The Bank’s involvement is in line with the development priorities of the Governments of
Tanzania, Rwanda and Burundi and the Bank’s Strategy Papers for the three countries.




                                              13
7.2        Recommendations

           In light of the foregoing, it is recommended that: (i) the United Republic of Tanzania
be granted an ADF loan not exceeding UA 1.66 million; (ii) the Republic of Rwanda be
awarded an ADF grant not exceeding UA 1.67 million; and (iii) the Republic of Burundi be
awarded an ADF grant not exceeding UA 1.67 million to finance the foreign exchange and local
currency costs of the study, subject to the specific conditions hereunder.

           Legal Framework

7.2.1      Legal Instrument

           The legal framework for the project study will be a Loan Agreement between the
United Republic of Tanzania and the Fund, a Grant Protocol of Agreement between the
Republic of Rwanda and the Fund, and a Grant Protocol of Agreement between the Republic of
Burundi and the Fund.

7.2.2      Conditions Associated with the Fund’s Involvement (United Republic of
           Tanzania)

A.         Conditions Precedent to Entry into Force of the Loan Agreement

           Entry into force of this Agreement shall be subject to the signing of the Agreement
and fulfilment by the Borrower to the Fund’s satisfaction, of the conditions set forth in Section
12.01 of the General Conditions Applicable to African Development Bank Loan Agreements
and Guarantee Agreements.

B.         Conditions precedent to First Disbursement of the Loan to Tanzania

            The Fund shall make the first disbursement of the loan resources only if, in addition
to entry into force of the Loan Agreement, the Borrower fulfils the following conditions to the
satisfaction of the Fund:

           (i)     Provide to the ADF evidence of opening a special local currency account
                   in the name of the study in a commercial bank deemed acceptable to the
                   Fund, into which the counterpart contribution will be deposited (paragraph
                   2.6.3); and

           (ii)  Provide to the ADF evidence of appointing members of the Study
                 Technical Monitoring Committee comprising: one (1) Committee
                 Chairperson; three (3) civil engineers, two (2) from Reli Assets Holding
                 Company and one (1) from Tanzania Ports Authority; one (1) transport
                 economist from the Ministry of Infrastructure Development; and one (1)
                 environmentalist from the Vice-Presidency in charge of Environment.
7.2.3      Conditions Associated with the Fund’s Involvement (Republic of Rwanda)

A.         Condition Precedent to Entry into Force of the Grant Protocol of Agreement

           Entry into force of the Grant Protocol of Agreement shall be subject to its signature
by the Republic of Rwanda (“the Donee”) and the ADF.




                                               14
B.         Conditions Precedent to First Disbursement of the Grant to the Republic of
           Rwanda
            In addition to entry into force of the Grant Protocol of Agreement, first disbursement
of the grant resources shall be subject to fulfilment by the Donee of the following conditions to
the Fund’s satisfaction:
           (i)     Provide to the ADF evidence of opening a special foreign exchange
                   account in the name of the study in the National Bank of Rwanda (BNR)
                   into which ADF resources for study coordination and monitoring will be
                   deposited (paragraph 2.6.2);
           (ii)    Provide to the ADF evidence of opening a special local currency account
                   in the name of the study in BNR, into which the counterpart contribution
                   will be deposited (paragraph 2.6.3);
           (iii)   Provide to the ADF evidence of appointing a Coordinator, a Deputy
                   Coordinator, as well as an Accounts Manager for the study, whose
                   qualifications and experience will have been deemed acceptable to the
                   Fund beforehand (paragraph 3.1.3); and
         (iv)      Provide to the ADF evidence of designating members of the Study
                   Technical Monitoring Committee. The Committee will comprise three (3)
                   civil engineers from the Ministry of Infrastructure including the Study
                   Coordinator and his/her Deputy, one (1) economist from the Ministry of
                   Finance and Economic Planning; and one (1) environmentalist from the
                   Ministry in charge of Environment (paragraph 3.2.2).
7.2.4      Conditions Associated with the Fund’s Involvement (Republic of Burundi)
A.         Condition Precedent to Entry into force of the Grant Protocol of Agreement

           Entry into force of the Grant Protocol of Agreement shall be subject to its signature
by the Republic of Burundi (“the Donee”) and the ADF.

B.         Conditions Precedent to First Disbursement of the Grant to the Republic of
           Burundi
            In addition to entry into force of the Grant Protocol of Agreement, first disbursement
of the grant resources shall be subject to fulfilment by the Donee of the following conditions to
the Fund’s satisfaction:
            (i)     Provide to the ADF evidence of opening a special local currency account
                    in the name of the study in a commercial bank deemed acceptable to the
                    Fund, into which the counterpart contribution will be deposited (paragraph
                    2.6.3); and
           (ii)    Provide to the ADF evidence of designating members of the Study
                   Technical Monitoring Committee. The Committee will comprise two (2)
                   civil engineers from the Ministry of Public Works and Infrastructure, one
                   (1) economist from the Ministry in charge of Transport, one (1) economist
                   from the Vice-Presidency and one (1) environmentalist from the Ministry
                   in charge of Environment (Paragraph 3.2.2).




                                               15
            MULTINATIONAL/TANZANIA–RWANDA-BURUNDI
  PHASE II DAR ES SALAAM-ISAKA-KIGALI/KEZA-MUSONGATI RAILWAY
                          PROJECT STUDY
                   THE PRESIDENT’S MEMORANDUM
                             ANNEXES

LIST OF ANNEXES                                                         Number of pages

ANNEX 1: Map of Study Railway Alignment                                          2
ANNEX 2: Study Organization Chart                                                1
ANNEX 3: Detailed Estimated Study Cost                                           4
ANNEX 4: Financing Plan by Expenditure Category and by Country                   1
ANNEX 5: Detailed Provisional Study Implementation Schedule                      2
ANNEX 6: Contract Award Plan                                                     1

ANNEX 7: Summary Terms of Reference for Provision of Technical
        Assistance Services to the Study Coordination Unit                       1
ANNEX 8: Profiles of Experts of the Consultant in charge of the Study            1

ANNEX 9: Profiles of Key Staff of the Study Coordination Unit, the Study
         Technical Monitoring Committee and Counterparts                         1

ANNEX 10: Map of Existing and Proposed Railway Network                           2
ANNEX 11: List of Documents Consulted                                            1
                                                                                                     ANNEX 1
                                                                                                   Page 1 of 2
                                        MAP OF STUDY RAILWAY ALIGNMENT




    Kigali
                     Bugesera


                               Rusumo
      Ruvubu R.             Keza
Nyabikere


Gitega               Muremer

Wag               Mukanda
                                                   Isak
             Musongati




                                          Tabora




                                                              Dodoma

                                                                                   Dar es Salaam



                                                                         Morogor
                                                                           ANNEX 1
                                                                         Page 2 of 2
               MAP OF STUDY NEW RAILWAY ALIGNMENT



               Kigali




           Bugesera


                                                        Rusumo




                                                      Keza

                             Ruvubu




               Nyabikere                    Muremer




       Giteg
                           Mukanda
Waga
                                                                 Isaka
                                Musongati
                                                                                     ANNEX 2

                              STUDY ORGANIZATION CHART




 TANZANIA MINISTRY OF           RWANDA MINISTRY OF           BURUNDI MINISTRY OF
   INFRASTRUCTURE            INFRASTRUCTURE (MININFRA)       TRANSPORT, POST AND
    DEVELOPMENT                                             TELECOMMUNICATIONS
        (MID)                                                      (MTPT)




                             POLICY PLANNING AND CAPACITY
DEPARTMENT OF TRANSPORT              BUILDING UNIT          GENERAL DIRECTORATE OF
                                        (PPCBU)                   TRANSPORT




STUDY TECHNICAL MONITORING      STUDY COORDINATION UNIT
        COMMITTEE                        (SCU)
          (STMC)
                                                                                                                                                 ANNEX 3
                                                                                                                                               Page 1 of 2
                                                               DETAILED ESTIMATED STUDY COST IN USD MILLION


                                                                    FIELD       HEAD OFFICE        UNIT        TOTAL     % FOR.    SHARE IN       SHARE IN
                 DESIGNATION                          UNIT
                                                                  QUANTITY       QUANTITY          PRICE       PRICE     EXCH.    FOR. EXCH.     LOC. CURR.

FEES
Project Director                                          MM         0.3             1.7            27500      55000      100%       55000            0
Project Manager                                           MM         16               0             25000      400000     100%      400000            0
PPP Design Expert                                         MM          4               4             25000      200000     100%      200000            0
Railway Rolling Stock Specialist                          MM          1               2             25000      75000      100%       75000            0
Signal and Telecommunications Engineer                    MM          2               1             25000      75000      100%       75000            0
Bridge/Structural Engineer                                MM          6               3             25000      225000     100%      225000            0
Construction Engineer                                     MM          3               3             25000      150000     100%      150000            0
Financial Analyst                                         MM          1               1             20000      40000      100%       40000            0
Cross-cutting Issues Expert (gender, poverty,             MM
                                                                     3                1             20000       80000     100%      80000             0
STDs/AIDS, etc)
Railway Operation Specialist                              MM         1                 1            25000       50000     100%      50000             0
Hydrologist                                               MM         2                 2            25000       100000    100%     100000             0
Geological/Geotechnical Engineer                          MM         7                 4            25000       275000    100%     275000             0
Transport Economist                                       MM         3                 1            20000       80000     100%      80000             0
Socio-economist                                           MM         2                 2            20000       80000     100%      80000             0
Railway Alignment Specialist                              MM         3                 3            25000       150000    100%     150000             0
Environmentalist                                          MM         3                 1            20000       80000     100%      80000             0
Draftsmen                                                 MM         0                10            9000        90000     100%      90000             0
                                           Sub-total 1.1            57.3             40.7                      2205000             2205000            0
Support Staff
Secretaries                                               MM         15               0             1200        18000     0%          0             18000
Draftsmen                                                 MM         15               0             1500        22500     0%          0             22500
Clerks                                                    MM         15               0              750        11250     0%          0             11250
Driver/Messenger                                          MM         15               0              900        13500     0%          0             13500
                                           Sub-total 1.2             60                                         65250                 0             65250
Sub-total 1                                                         117.3                                      2270250             2205000          65250
FIELD SERVICES AND WORKS
Geotechnical works                                         FF        1                0            1725000     1725000    100%     1725000            0
Surveys                                                    FF        1                0             55000       55000      50%      27500           27500
Sub-total 2                                                                                                    1780000             1752500          27500
PER DIEM, LOGISTICS AND TRAVEL (connected with the study)
Per diem for experts/consultants in the three countries  M-Days     1719              0              300       515700     100%      515700            0
Per diem for six counterparts at the head office of the
                                                         M-Days     180               0              300        54000     100%      54000             0
consultant
Round trip air tickets for experts/consultants              Unit    23         0                10000          230000     100%      230000            0
Round trip air tickets for counterparts at the head office
                                                            Unit     6         0                 6000           36000     100%      36000             0
of the consultant
Land transport for consultants in the three countries      M- Days 1719        0                  200           343800     60%     206280          137520
Computer hardware and office automation equipment            FF      1         0                75000           75000     100%      75000             0
Reproduction and dispatch of documents                       FF      1         0                45000           45000     100%      45000             0
Office rental and operation                                Months   15         0                10000          150000     50%       75000           75000
Office furniture                                             FF      1         0                12000           12000      0%         0             12000
Communication                                                FF      1         0                10000           10000      50%      5000            5000
Sub-total 3                                                                                                    1471500             1241980         229520
SEMINARS, WORKSHOPS AND ROUNDTABLES
Information, restitution and validation seminars            Unit    10         0                45000          450000     20%        90000         360000
Round table of donors and private investors                 Unit     1         0                90000          90000      20%        18000          72000
Sub-total 4                                                                                                    540000               108000         432000
STUDY COORDINATION AND MONITORING (Study Coordination Unit + Study Technical Monitoring Committee)
Allowance for travel within the countries of origin        M-days  1000        0                  50           50000      0%          0             50000
SCU and STMC activities in the countries of origin           FF      1         0               340000          340000     0%          0            340000
Per diem for SCU and STMC outside the countries of
                                                           M-days   500        0                  300          150000     100%      150000            0
origin
Round trip air tickets for SCU, STMC, Technical
                                                       Unit          0               100            1000       100000     100%      100000            0
Assistant outside the countries of origin
Operation of SCU office                               Months         16               0             1000        16000     0%          0             16000
Land transport for SCU & STMC outside the countries
                                                      M-days        150               0              200        30000     100%      30000             0
of origin
SCU communication expenses                             FF            1                0             6000        6000      0%           0            6000
Sub-total 5                                                                                                    692000               280000         412000
FINANCIAL AUDIT OF STUDY
                                                       Unit          2                0             25000       50000     100%      50000             0
Sub-total 6                                                                                                     50000               50000             0



                                                        DETAILED ESTIMATED STUDY COST IN USD MILLION (cont’d and end)

TECHNICAL ASSISTANCE TO THE STUDY COORDINATION UNIT
Fees                                                    MM    14                      0             25000       350000    100%     350000             0
Per diem                                               M-Days 420                     0              300        126000    100%     126000             0
Land transport in Rwanda                               M-Days 420                     0              200        84000      0%         0             84000
Round trip air tickets (country of origin - Rwanda)     Unit   8                      0             10000       80000     100%      80000             0
Operation and communication                              FF    1                      0             13000       13000      50%      6500            6500
Sub-total 7                                                                                                     653000             562500           90500
BASE COST                                                                                                      7456750             6199980         1256770
        Physical contingencies (PC) (5% of Base Cost)                                                           372838             309999           62839
          Price escalation [(4.06%) * (Base Cost +PC)]                                                          317881             264305           53576
GRAND TOTAL                                                                                                    8147469             6774284         1373185
                                                                                                                                         ANNEX 3
                                                                                                                                        Page 2 of 2

                                                          DETAILED ESTIMATED STUDY COST IN UA MILLION

                                                                    FIELD  HEAD OFFICE         UNIT     TOTAL     % FOR.    SHARE IN          SHARE IN
                    DESIGNATION                            UNIT
                                                                  QUANTITY  QUANTITY          PRICE     PRICE     EXCH.    FOR. EXCH.        LOC. CURR.
FEES
Project Director                                            MM        0.3      1.7             17716    35433      100%       35433              0
Project Manager                                             MM        16        0              16106    257694     100%      257694              0
PPP Design Expert                                           MM         4        4              16106    128847     100%      128847              0
Railway Rolling Stock Specialist                            MM         1        2              16106    48318      100%       48318              0
Signal and Telecommunication Engineer                       MM         2        1              16106    48318      100%       48318              0
Bridge/Structural Engineer                                  MM         6        3              16106    144953     100%      144953              0
Construction Engineer                                       MM         3         3             16106    96635      100%       96635              0
Financial Analyst                                           MM         1         1             12885    25769      100%       25769              0
Cross-cutting Issues Expert (gender, poverty,               MM
                                                                       3         1             12885     51539     100%      51539               0
STDs/AIDS, etc)
Railway Operation Specialist                                MM         1         1             16106     32212     100%       32212              0
Hydrologist                                                 MM         2         2             16106     64423     100%       64423              0
Geological/Geotechnical Engineer                            MM         7         4             16106     177164    100%      177164              0
Transport Economist                                         MM         3         1             12885     51539     100%       51539              0
Socio-economist                                             MM         2         2             12885     51539     100%       51539              0
Railway Alignment Specialist                                MM         3         3             16106     96635     100%       96635              0
Environmentalist                                            MM         3         1             12885     51539     100%       51539              0
Draftsmen                                                   MM         0        10             5798      57981     100%       57981              0
                                             Sub-total 1.1           57.3      40.7                     1420537             1420536.9            0
Support Staff
Secretaries                                                 MM        15        0                773     11596     0%          0               11596
Draftsmen                                                   MM        15        0                966     14495     0%          0               14495
Clerks                                                      MM        15        0                483      7248     0%          0               7248
Driver/Messenger                                            MM        15        0                580      8697     0%          0               8697
                                             Sub-total 1.2            60                                 42036                 0               42036
Sub-total 1                                                          117.3                              1462573             1420537            42036
FIELD SERVICES AND WORKS
Geotechnical works                                           FF        1         0           1111304    1111304    100%     1111304              0
Surveys                                                      FF        1         0             35433     35433      50%      17716             17716
Sub-total 2                                                                                             1146737             1129021            17716
PER DIEM, LOGISTICS AND TRAVEL (connected with the study)
Per diem for experts/consultants in the three countries    M-Days    1719       0                193    332232     100%      332232              0
Per diem for six counterparts at the head office of the
                                                           M-Days     180        0               193     34789     100%      34789               0
consultant
Round trip air tickets for experts/ consultants             Unit      23         0              6442    148174     100%      148174              0
Round trip air tickets for counterparts at the head office
                                                            Unit       6         0              3865     23192     100%      23192               0
of the consultant
Land transport for consultants in the three countries      M-Days    1719        0               129    221488      60%      132893             88595
Computer hardware and office automation equipment            FF        1         0             48318    48318      100%       48318               0
Reproduction and dispatch of documents                       FF        1         0             28991    28991      100%       28991               0
Office rental and operation                                Months     15        0              6442     96635       50%       48318             48318
Office furniture                                             FF        1         0              7731     7731        0%         0               7731
Communication                                                FF        1         0              6442     6442       50%       3221              3221
Sub-total 3                                                                                             947991               800126            147865
SEMINARS, WORKSHOPS AND ROUNDTABLES
Information, restitution and validation seminars            Unit      10         0             28991    289905     20%       57981             231924
Round table of donors and private investors                 Unit       1         0             57981    57981      20%       11596              46385
Sub-total 4                                                                                             347887               69577             278309
STUDY COORDINATION AND MONITORING (Study Coordination Unit + Study Technical Monitoring Committee)
Allowance for travel within the countries of origin         MM       1000       0                32     32212      0%          0                32212
SCU and STMC activities in the countries of origin           FF        1         0            219040    219040     0%          0               219040
Per diem for SCU and STMC outside the countries of
                                                           M-Days     500        0               193     96635     100%      96635               0
origin
Round trip air tickets for SCU, STMC, Technical
                                                            Unit       0       100               644     64423     100%      64423               0
Assistant outside the countries of origin
Operation of SCU office                                    Months     16        0                644     10308     0%          0               10308
Land transport for SCU & STMC outside the countries
                                                           M-Days     150        0               129     19327     100%      19327               0
of origin
SCU communication expenses                                   FF        1         0              3865     3865      0%           0               3865
Sub-total 5                                                                                             445810               180386            265425
FINANCIAL AUDIT OF STUDY
                                                            Unit       2         0             16106     32212     100%      32212               0
Sub-total 6                                                                                              32212               32212               0


                                                  DETAILED ESTIMATED STUDY COST IN UA MILLION (cont’d and end)

TECHNICAL ASSISTANCE TO THE STUDY COORDINATION UNIT
Fees                                                    HM    14                0             16106      225482    100%     225482                0
Per diem                                               M-Days 420               0              193       81174     100%      81174                0
Land transport in Rwanda                               M-Days 420               0              129       54116      0%         0                54116
Round trip air tickets (country of origin - Rwanda)     Unit   8                0             6442       51539     100%      51539                0
Operation and communication                              FF    1                0             8375        8375      50%      4188               4188
Sub-total 7                                                                                              420685             362382              58303
BASE COST                                                                                               4803895             3994241            809654
        Physical contingencies (PC) (5% of Base Cost)                                                    240195             199712              40483
          Price escalation [(4.06%) * (Base Cost +PC)]                                                   204790             170274              34516
GRAND TOTAL                                                                                             5248880             4364227            884653
                                                                                                  ANNEX 4

                FINANCING PLAN BY EXPENDITURE CATEGORY AND BY COUNTRY

(1)     FINANCING PLAN BY EXPENDITURE CATEGORY IN TANZANIA

Expenditure Category        Total Study                            A D F                    BURUNDI
                           Foreign    Local                  Foreign   Local                Local
                           Exchange Currency         Total   Exchange Currency      Total   Currency
(A) SERVICES                    3.81        0.54      4.35        1.27     0.18      1.45         0.00
Study                           3.42        0.48      3.90        1.14     0.16      1.30         0.00
Technical Assistance            0.36        0.06      0.42        0.12     0.02      0.14         0.00
Financial Audit                 0.03                  0.03        0.01               0.01         0.00
(B) MISCELLANEOUS               0.18        0.27      0.45        0.06     0.00      0.06         0.00
Study Coordination and
Monitoring                      0.18          0.27   0.45        0.06        0.01   0.07         0.075
Base Cost                       3.99          0.81   4.80        1.33        0.18   1.51         0.075
Physical Contingencies          0.20          0.04   0.24        0.07        0.01   0.08         0.004
Price Escalation                0.17          0.04   0.21        0.06        0.01   0.07         0.003
Grand total net of taxes        4.36          0.89   5.25         1.46       0.21   1.66         0.083

(2)     FINANCING PLAN BY EXPENDITURE CATEGORY IN RWANDA

Expenditure Category       Total Study                       ADF                            BURUNDI
                           Foreign        Local              Foreign     Local              Local
                           Exchange       Currency   Total   Exchange    Currency   Total   Currency
(A) SERVICES                       3.81       0.54    4.35        1.27       0.18    1.45         0.00
Study                              3.42       0.48    3.90        1.14       0.16    1.30         0.00
Technical Assistance               0.36       0.06    0.42        0.12       0.02    0.14         0.00
Financial Audit                    0.03               0.03        0.01               0.01         0.00
(B) MISCELLANEOUS                  0.18       0.27    0.45        0.06       0.01    0.07         0.00
Study Coordination and
Monitoring                        0.18        0.27   0.45        0.06        0.01   0.07         0.076
Base Cost                         3.99        0.81   4.80        1.33        0.19   1.52         0.076
Physical Contingencies            0.20        0.04   0.24        0.07        0.01   0.08         0.005
Price Escalation                  0.17        0.04   0.21        0.06        0.01   0.07         0.003
Grand total net of taxes          4.36        0.89   5.25         1.46       0.21   1.67         0.084

(3)     FINANCING PLAN BY EXPENDITURE CATEGORY IN BURUNDI

Expenditure Category       Total Study                       ADF                            BURUNDI
                           Foreign        Local              Foreign     Local              Local
                           Exchange       Currency   Total   Exchange    Currency   Total   Currency
(A) SERVICES                       3.81       0.54    4.35        1.27       0.18    1.45         0.00
Study                              3.42       0.48    3.90        1.14       0.16    1.30         0.00
Technical Assistance               0.36       0.06    0.42        0.12       0.02    0.14         0.00
Financial Audit                    0.03               0.03        0.01               0.01         0.00
(B) MISCELLANEOUS                  0.18       0.27    0.45        0.06       0.01    0.07         0.00
Study Coordination and
Monitoring                        0.18        0.27   0.45        0.06        0.01   0.07         0.076
Base Cost                         3.99        0.81   4.80        1.33        0.19   1.52         0.076
Physical Contingencies            0.20        0.04   0.24        0.07        0.01   0.08         0.004
Price Escalation                  0.17        0.04   0.21        0.06        0.01   0.07         0.003
Grand total net of taxes          4.36        0.89   5.25        1.46        0.21   1.67         0.083
                                                                                                                            ANNEX 5
                                                                                                                           Page 1 of 2

                     DETAILED PROVISIONAL STUDY IMPLEMENTATION SCHEDULE

                             ACTIVITY                                    ACTION/AGENCY                       START                 END
A – PRELIMINARY ACTIVITIES
Loan/Grant Approval                                              ADF                                        Nov - 2009           Nov - 2009
Signature of Grant Protocol of Agreement/Loan Agreement          Gov. (RW, TZ & BUR)/ADF                    Dec - 2009           May - 2010
GPN Publication                                                  ADF/Gov. (RW, TZ &BUR)                     Dec - 2009           Dec - 2009
Fulfilment of Conditions Precedent to Entry into Force of Loan/Grant Gov. (RW, TZ & BUR)                    Dec - 2009          Aug - 2010
Fulfilment of Conditions Precedent to First Disbursement         Gov (RW, TZ & BUR)
                                                                                                            Dec - 2009          Aug - 2010
SL & RFP Document Preparation & Submission - Study               Gov. RW                                     Jan - 2010          Feb - 2010

No-objection RFP + SL – Study                                    ADF                                       March - 2010         March - 2010
Bid Invitation & Bid Submission – Study                          Gov. RW/Consultant                         Apr - 2010           Mai - 2010
 Bid Appraisal & No-Objection – Study                            ADF/Gov. (RW, TZ & BUR)                    June - 2010          July - 2010

No-objection Draft Contract & Contract Signature – Study         ADF/Gov RW                                 Aug - 2010           Aug - 2010

SL & RFP Document Preparation & Submission – TA                  Gov. RW                                    Apr - 2010           May - 2010
No-Objection RFP + SL – Technical Assistance                     ADF                                        June - 2010          June - 2010
Bid Invitation & Bid Submission – TA                             Gov. RW/Consultant                         July - 2010         Aug - 2010
Bid Appraisal & No-Objection -Technical Assistance               ADF/Gov. (RW, TZ & BUR)                    Sept - 2010          Oct - 2010
No-objection Draft Contract & Contract Signature – TA            ADF/Gov. RW,                               Nov - 2010           Nov - 2010
SL & RFP Document Preparation & Submission - Audit               Gov. RW                                    June - 2010          July - 2010
No- Objection RFP + SL – Audit                                   ADF                                        Aug - 2010          Aug - 2010
Bid Invitation & Bid Submission – Audit                          Gov. RW/Consultant                         Sept - 2010          Oct - 2010
Bid Appraisal & No-Objection for Audit firms                     ADF/Gov. (RW, TZ & BUR)                    Nov - 2010           Dec - 2010
No-objection Draft Contract & Contract Signature – Audit         ADF/Gov. RW                                Jan - 2011           Jan - 2011
B—STUDY, TECHNICAL ASSISTANCE, AND FINANCIAL AUDIT SERVICES
B.1 Study Services
Start of the Study                                               Consultant                                 Sept - 2010         Sept - 2010
Inception Report                                                 Consultant                                 Oct - 2010           Oct - 2010
Information Seminars                                             Consultant/Gov. (RW, TZ & BUR)             Nov - 2010          Nov - 2010
Quarterly Progress Reports                                       Consultant                                Dec -2010 & March, June, Sept-2011
First Results Presentation Seminar                               Consultant/Gov. (RW, TZ & BUR)             May - 2011          May - 2011
Draft Reports                                                    Consultant                                 Aug - 2011          Aug - 2011
Restitution Seminars                                             Consultant/Gov. (RW, TZ & BUR)             Sept - 2011         Sept - 2011
Validation Seminar by the Three Countries                        Consultant/Gov. (RW, TZ & BUR)             Oct - 2011           Oct - 2011
No-Objection of the Draft Reports                                ADF/Gov. (RW, TZ & BUR)                    Oct - 2011           Oct - 2011
Final Reports                                                    Consultant                                 Nov - 2011          Nov - 2011
Round Table of Development Partners and Private Sector           Gov/ (RW, TZ & BUR)/ADF                    Nov - 2011          Nov - 2011
B.2 Technical Assistance Services
Start of Technical Assistance                                    Consultant                                 Nov - 2010          Nov - 2010
Technical Assistance Inception Report                            Consultant                                 Nov - 2010         Nov - 2010
Quarterly Progress Reports                                       Consultant                                   Feb, May, Aug, Nov - 2011
Draft Report                                                     Consultant                                 Nov - 2011          Nov - 2011
No-Objection of the Draft Report                                 ADF/Gov. (RW, TZ & BUR)                    Dec – 2011          Dec – 2011
Final Report                                                     Consultant                                 Dec - 2011           Dec - 2011
B.3 Financial Audit Services
First Financial Audit                                            Consultant                                 March 2011          March 2011
Final Financial Audit                                            Consultant                                 March 2012          March 2012
RW:       Rwanda BR:                 Burundi                     GPN:         General Procurement Notice
TZ:       Tanzania ADF:              African Development Fund    RFP:=        Request for Proposal
TA:     Technical Assistance                                     SL:=         Short List
                                                                                                                                                                                                                                                                      ANNEX 5
                                                                                                                                                                                                                                                                     Page 2 of 2
                                                                                             PROVISIONAL STUDY IMPLEMENTATION SCHEDULE
ID   Tas k Nam e
                                                                                                                                                         2010                                                                     2011
                                                                                                 Oct   Nov     Dec      Jan   Feb   Mar   Apr   May   Jun    Jul   Aug   Sep   Oct   Nov   Dec   Jan   Feb   Mar   Apr   May   Jun    Jul   Aug   Sep   Oct   Nov   Dec   Jan   Feb   Mar   Apr
1    A - PRELIMINARY ACTIVITIES
2    Loan/Grant Approval                                                                                     11/17
3    Signature of Protocol Agreement / Loan Agreem ent
4    GPN Publication                                                                                                 12/15
5    Fulfilment of Conditions Precedent to the Entry in Force of Loan/Grant
6    Fulfilment of Conditions Precedent to Firs t Disburcem ent
7    SL & RFP Docum ent Preparation & Submis s ion - Study
8    No-objection RFP + SL - Study
9    Consultation Launching & Bid Docum ents - Study
10   Bid Evaluation & No-Objection - Study
11   No-objection of the Draft Contract and Signature of the Contract - Study
12   SL & RFP Docum ent Preparation & Submis s ion - Technical As s is tance
13   No-objection RFP + SL - Technical As sis tance
14   Consultation Launching & Bid Docum ents - Technical As sis tance
15   Bid Evaluation & No-Objection - Technical As sis tance
16   No-objection of the Draft Contract and Signature of the Contract - Technical as sis tance
17   SL & RFP Docum ent Preparation & Submis s ion - Financial Audit
18   No-objection RFP + SL - Financial Audit
19   Consultation Launching & Bid Docum ents - Financial Audit
20   Bid Evaluation & No-Objection - Financial Audit
21   No-objection of the Draft Contract and Signature of the Contract - Financial Audit
22   B - STUDY, TECHNICAL ASSISTANCE, AND FINANCIAL AUDIT SERVICES
23   B.1 Study Services
24   Starting of the Study
25   Study Inception Report
26   Information Seminars
27   Quarterly Study Progres s Report
28   Quarterly Study Progres s Report
29   Quarterly Study Progres s Report
30   Quarterly Study Progres s Report
31   Firs t Results Pres entation Seminar
32   Study Draft Reports
33   Res titution Seminars
34   Validation Seminar by the Three Countries
35   No-Objection of the Study Draft Reports
36   Final Study Reports
37   Round Table of Development Partners and Private Sector
38   B.2 Technical Assistance Services
39   Starting of Technical As s is tance
40   Technical Ass istance Inception Report
41   Quarterly Technical Ass istance Progres s Report
42   Quarterly Technical Ass istance Progres s Report
43   Quarterly Technical Ass istance Progres s Report
44   Quarterly Technical Ass istance Progres s Report
45   Technical Ass istance Draft Report
46   No-Objection of the Technical Ass istance Draft Report
47   Final Technical Ass is tance Report
48   B.3 Financial Audit Services
49   Firs t Financial Audit
50   Final Financial Audit
                                                                                                                              ANNEX 6

                                                     CONTRACT AWARD PLAN

                                                                                             Procurement
                 Activities                                          Action/Agency             Method         Start          End
A – Preliminary Activities
Grant/Loan Approval                                                        ADF                              Nov - 2009     Nov - 2009
Signature and Entry into Force of Protocol Grant/Loan
Agreement                                                         Gov. (RW, TZ & BUR)/ADF                   Dec - 2009     May - 2010
Publication of General Procurement Notice                         ADF/Gov. (RW, TZ &BUR)                    Dec - 2009     Dec - 2009
Fulfilment of Conditions Precedent to the Entry into Force of
Grant/Loan                                                          Gov. (RW, TZ & BUR)         N.A.        Dec - 2009    August - 2010
Fulfilment of Conditions Precedent to the First Disbursement of
Grant/Loan                                                          Gov. (RW, TZ & BUR)                     Dec - 2009    August - 2010
Procurement of Consultancy Services                               ADF/Gov. (RW, TZ &BUR)                    Jan - 2010     July - 2010
Procurement of Technical Assistance Services                      ADF/Gov. (RW, TZ &BUR)                    Apr - 2010    August - 2010
Procurement of Financial Audit Services                           ADF/Gov. (RW, TZ &BUR)                    June - 2010    Dec - 2010
B – Study Services                                                                               SL
RFP and SL Documents Preparation and submission - Study                   Gov. RW                           Jan - 2010     Feb - 2010
No-objection RFP + SL – Study                                              ADF                              Mar - 2010     Mar - 2010
Bid Invitation + Submission of Bids - Study                          Gov. RW/Consultant                     Apr - 2010     May - 2010
Bid Appraisal & No-Objection - Study                              ADF/Gov. (RW, TZ & BUR)                   June - 2010    July - 2010

No- objection Draft Contract and Contract Signature - Study            ADF/Gov. RW                         August - 2010 August - 2010
Start                                                                    Consultant                         Sept - 2010    Sept - 2010
Completion                                                               Consultant                         Nov - 2011     Nov - 2011
C – Technical Assistance Services                                                                SL
RFP and SL Documents Preparation and Submission - Study                   Gov. RW                           Apr - 2010     May - 2010
No-objection RFP + SL – Study                                              ADF                              June - 2010    June - 2010
Bid Invitation + Submission of Bids - Study                          Gov. RW/Consultant                     July - 2010   August - 2010
Bid Appraisal & No-Objection - Study                              ADF/Gov. (RW, TZ & BUR)                   Sept - 2010    Oct - 2010

No- objection Draft Contract and Contract Signature - TA               ADF/Gov. RW                          Nov - 2010     Nov - 2010
Starting of Technical Assistance                                         Consultant                         Nov - 2010     Nov - 2010
Completion                                                               Consultant                         Dec - 2011     Dec - 2011
D – Financial Audit Services                                                                     SL
RFP and SL Documents Preparation and Submission - Study                   Gov. RW                           June - 2010    July - 2010
No-objection RFP + SL - Study                                              ADF                             August - 2010 August - 2010
Bid Invitation + Submission of Bids - Study                          Gov. RW/Consultant                     Sept - 2010    Oct - 2010
Bid Appraisal & No-Objection - Study                              ADF/ Gov. (RW, TZ & BUR)                  Nov - 2010     Dec - 2010
No- objection Draft Contract and Contract Signature – Fin.
Audit                                                                  ADF/Gov. RW                          Jan - 2011     Jan - 2011
Starting of Financial Audit                                              Consultant                          Mar 2011       Mar 2011
Completion                                                               Consultant                          Mar 2012       Mar 2012
RW:        Rwanda
TZ:        Tanzania
BUR:       Burundi
ADF:       African Development Fund
SL:        Short List
                                                                                    ANNEX 7

      SUMMARY TERMS OF REFERENCE FOR PROVISION OF TECHNICAL
        ASSISTANCE SERVICES TO THE STUDY COORDINATION UNIT

           As part of technical and operational capacity building of the Study Coordination
Unit (SCU), plans have been made to recruit technical assistance to put at the disposal of the
SCU an expert (railway engineer) with at least five (5) years’ proven experience in Public
Private Partnership (PPP) approach. The tasks of the technical assistance are summarized as
follows:

A)         Support the SCU in the management, technical and organizational monitoring of
           the study. This will mainly entail:

           *      Reviewing study reports and, in consultation with the SCU and the Study
                  Technical Monitoring Committee (STMC), giving a detailed technical
                  opinion on the technical quality of the reports and their acceptability; and

           *      Assisting the SCU in carrying out a judicious scheduling of the
                  organization of seminars/workshops provided for under the study as well
                  as planning the preparation of requests for payment;

B)         Prepare and submit, in consultation with the SCU, quarterly progress reports of all
           study activities, including relevant recommendations for improving the study;

(C)        Provide to the Governments and the Bank, in consultation with the SCU and
           STMC, relevant data/information for assessing various study reports.
                                                                                           ANNEX 8

                           PROFILES OF EXPERTS OF THE
                       CONSULTANT IN CHARGE OF THE STUDY

             The Consultant in charge of the study will recruit a team of experts with solid
qualifications and experience in their respective domains. As a guide, the key experts will be:

           •      Project Director; at the head office of the Consultant – at least fifteen (15) years’
                  experience in project management;

           •      Project Manager (civil engineer with at least ten (10) years’ experience in the
                  design, planning and coordination of studies with skills in the railway domain. He
                  will be in charge of coordinating the team of experts and the proper conduct of
                  the study;

           •      Railway Engineer: with at least ten (10) years’ experience in railway design and
                  engineering;

           •      Signal and Telecommunications Engineer: with at least five (5) years’ experience
                  in the design of signal and telecommunications systems;

           •      Bridge/Structural Engineer: with at least ten (10) years’ experience in bridge and
                  structural design;

           •      Civil Construction Engineer: with at least 10 (ten) years’ experience in civil
                  construction design and engineering;

           •      Railway Operation Specialist: with at least five (5) years’ experience in railway
                  operation;

           •      Hydraulic Engineer: with at least five (5) years’ experience in the domain;

           •      Geological/Geotechnical Engineer: with at least ten (10) years’ experience in the
                  domain;

           •      Transport Economist: with at least five (5) years’ experience in transport project
                  evaluation and in the railway sub-sector;

           •      Socio-economist: with at least five (5) years’ experience in the conduct of socio-
                  economic surveys, community participation, socio-economic analysis of transport
                  infrastructure projects in general and in the railway sub-sector in particular;

           •      Railway Alignment Specialist: with at least ten (10) years’ experience in the
                  domain;

           •      Railway Equipment Specialist: with at least ten (10) years’ experience in the
                  domain;

           •      Environmental Expert: with at least five (5) years’ experience in infrastructure
                  project environmental impact assessment;




                                                 1
•   PPP Expert: with a least seven (7) years’ experience in (i) infrastructure projects,
    especially railway projects, (ii) institutional reforms (restructuring-privatization)
    and in the drafting of PPP contracts, and (iii) proven experience in transport
    facilitation;

•   Financial Analyst: with a least seven (7) years’ experience in financial analysis,
    particularly of infrastructure projects;

•   Gender Expert: with at least five (5) years’ experience in the design and
    assessment of social impacts of infrastructure projects on gender in general and
    on the most vulnerable population segments in particular (women, rural dwellers,
    children, etc.)




                                   2
                                                                                          ANNEX 9

         PROFILES OF KEY STAFF OF THE STUDY COORDINATION UNIT,
       STUDY TECHNICAL MONITORING COMMITTEE AND COUNTERPARTS

 (A)        Profiles of the Staff of the Study Coordination Unit (SCU)

 The key staff of the SCU will comprise two civil engineers including one Study Coordinator and
his Deputy and one Accounts Manager.

                     *      Coordinator of Phase II of the study: civil engineer with at least seven
                            design and engineering studies, especially railway infrastructure;

                     *      Deputy Coordinator: civil engineer with at least five years’ experience
                            in transport;

                     *      Accounts Manager: project manager and accountant with at least five
                            years’ experience in the domain.

 (B)        Profile of Members of the Study Technical Monitoring Committee (STMC)

 The STMC will comprise civil engineers, economists, transport economist and environmentalists.
The required profiles are summarized as follows:

            (i)     The civil engineers, economists and transport Economist will all be
                    years’ experience in transport infrastructure;

            (ii)    The environmentalists will be holders of a university degree in environmental
                    assessment of projects in general and development and infrastructure projects
                    in particular.

 (C)                Profile of Counterparts

 The counterparts will be civil Engineers and/or environmentalists and/or transport economists, and
will have two to five years’ experience in their respective domains. The consulting firm in charge of
the study will provide the assigned counterparts with training on railway design and engineering.
                                               ANNEX 10
                                               Page 1 of 2


MAP OF EXISTING AND PROPOSED RAILWAY NETWORK




                        Key
                        Existing network 
                        Proposed Network 
                        Ferry
                                                                   ANNEX 10
                                                                  Page 2 of 2

         EXISTING REGIONAL RAILWAY NETWORK
                       LINK                       DISTANCE (km)

    1        Kenya Railway Corporation (KRC)          1876
    2        Uganda Railway Corporation (URC)          260

    3         Tanzania Railway Limited (TRL)          3083

    4      Tanzania Zambia Railways (TAZARA)           976


                          TOTAL                       6195


         PROPOSED REGIONAL RAILWAY NETWORK

                       LINK                       DISTANCE (km)

    1               Kasese – Kisangani                 600
    2              Gulu – Nimule – Juba                300

    3          Pakwach – Bunia – Kisangani             900


    4            Bihanga – Kabale – Kigali             300


    5              Lamu – Garissa – Juba              1600


    6             Garissa – Addis Ababa               1300


    7         Liganga – Mchuchuma – Mtwara             800


    8           Mchuchuma – Mbamba Bay                 200

    9               Liganga – Mlimba                   250

    10            Dar es Salaam – Mtwara               600

    11           Kigali - Kabale - Bihanga             300

    12   Tunduma – Sumbawanga – Mpanda – Kigoma        700

    13             Uvinza – Bujumbura                  300
    14               Arusha – Musoma                   500
    15               Lamu – Kismayu                    300
    16               Garissa - Nairobi                 350
 
 
 
                                                                                  ANNEX 11

                    LIST OF DOCUMENTS CONSULTED

Reports of Feasibility Studies on the Isaka-Kigali/Keza-Musongati Railway Project (March
2009) DB International (Fr.)
Terms of Reference for the Dar es Salaam-Isaka-Kigali/Keza-Musongati Railway Project
prepared by the Governments of Tanzania, Rwanda and Burundi, 17 July 2009
Tanzania – Joint Assistance Strategy and Joint Program Document, 2007
The Economic Survey 2007 & 2008 – Ministry of Finance and Economic Affairs, Dar es Salaam,
Tanzania
National Transport Policy 2003 – Ministry of Infrastructure Development, Dar es Salaam,
Tanzania
10 year Transport Sector Investment Program (TSIP) Phase I 2007/08-2011/112 main report -
Ministry of Infrastructure Development, Dar-Es-Salaam, Tanzania
Annual Report & Accounts, 2007 Tanzania Ports Authority
Implementation Action Plan for the Construction Industry Policy 2006 - Ministry of
Infrastructure Development, Dar-Es-Salaam, Tanzania
Transport, Construction and Meteorology Sector Statistics, June 2009 Ministry of Infrastructure
Development, Dar es Salaam, Tanzania
Railways Regulations, 2002, Tanzania
Concession Agreement between RAHCO and Tanzania Railway Limited, 3 September 2007,
Tanzania
Tanzania Railway Limited, Statistics Jan-Dec. 2008
Tanzania Ports Master Plan Final report, February 2009, Royal Haskonning, Tanzania Port
Authority
The Mineral Policy of Tanzania, Ministry of Energy and Minerals, 1977
The National Energy Policy, Ministry of Energy and Minerals, Tanzania,2003
The Environmental Regulations, Tanzania, 2005
Agreement, Central Corridor Transit Transport Facilitation Agency, Dar es Salaam, Tanzania,
2006
Burundi: Country Strategy Paper, 2008-2011
2007 Annual Report, Bank of the Republic of Burundi
Monthly Bulletin, December 2008 and March 2009, Studies Department, Bank of the Republic
of Benin (Fr.)
Burundi Economic Report, World Bank 2009
Burundian Economy, 2007, General Directorate of Planning and Forecasts, Vice-Minister in
charge of Planning, Bujumbura, Burundi, October 2008 (Fr.)
Burundi’s Mineral Resources, Ministry of Energy and Mining, 1991 (Fr.)
Memorandum on the Musongati Nickel Project (Burundi), 1990 (Fr.)
Reappraisal Study on the Musongati Project, Andover Resources NL, Burundi, 2003 (Fr.)
Economic Development and Poverty Reduction Strategy EDPRS, 2008 - 2012 Rwanda
EICV Poverty Analysis for Rwanda's Economic Development and Poverty Reduction Strategy
Final Report, MINECOFIN, Rwanda, 2007
Rwanda Development Indicators, 2006, National Institute of Statistics (INSR), May 2008 (Fr.)
Rwanda: 2008-2011 Country Strategy Paper
Transport Sub-sector Strategic Plan 2008-2012, Ministry of Infrastructure Rwanda, September
2008
Quarterly Economic Review January – March 2008– National Institute of Statistics of Rwanda
Rwanda Utilities Regulatory Agency (RURA) Law and Decrees
Feasibility Study for the Rwanda-Burundi Oil Products Pipeline Capacity Market Analysis Phase
I Ministry of Infrastructure, Kigali, Rwanda
East African Community Railways Master Plan Study Final Report, CPCS, June 2009
Overview of EAC Railway Network, Development Scenarios and Cost Implications, CPCS, June
2009
Upgrade of the Dar es Salaam to Isaka Railway Project, Start-Up and Kick-off Report, BNSF
Railway, March 2009
The East African Road Network Project Implementation Matrix Status as at January, EAC, 2009.

				
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