ANNEX 5

Page 1 of 5
SUMMARY FINANCIAL AND ECONOMIC ANALYSIS
A) RSDP II BY COMPONENTS AND SOURCES OF FUNDING (ETB Million)*

No Component GOE Road Community Private Donors Unidentified Total

User Sector
A. Federal Roads
1 Rehab of Trunk Roads 260.2 1,584.7 1,844.9
2 Upgrading of Trunk Roads 1,150.3 2,317.6 3,467.9
3 Construction of Trunk Roads 33.1 107.0 140.1
4 Upgrading of Link Roads 387.8 758.1 1,145.9
5 Construction of Link Roads 689.7 1,151.9 1,841.6
6 Roads Heavy Maintenance 25.1 684.6 709.7
7 Roads Routine Maintenance 640.4 640.4
8 Feasibility Study of New Roads 4.2 18.6
9 Procurement of Equipment 142.3 142.3
10 Bridge, Structure and Equipment 73.3 15.0 88.3
11 Policy and Capacity Building 25.7 45.0 250.1 320.8
12 Recurrent Budget 133.9 133.9
B. Regional Roads
13 Construction 600.0 600.0
14 Emergency Maintenance 3.0 20.2 23.2
15 Routine Maintenance 298.7 298.7
16 Recurrent Budget 298.3 298.3
C. Community Roads/ERTTP
17 Preparation and Physical Program 153.6 181.8 726.4 1,061.8
D. Municipality
18 Routine Maintenance of Municipality 122.6 122.6
Roads
Total 3,684.6 1,106.7 153.6 - 7,213.3 726.4 12,899.0
* 1.0 USD = ETB 8.55

B) RSDP BY FINANCIERS (Low case) - (ETB Million)


RSDP I RSDP II RASP I & II
Cost in Million Birr Cost in Million Birr Cost
Financer
Length Secured Pipeline Expected Total Length Secured Pipeline Expected Total Length (in Mill.
(Km) (Km) (Km) Br.)
IDA 789.0 1,523.7 - - 1,523.7 2,158.0 2,290.0 1,100.3 - 3,390.3 2,947.0 4,914.0
EU 316.0 657.3 - - 657.3 676.0 1,031.9 231.2 - 1,263.1 992.0 1,920.4
ADB 291.0 527.9 - - 527.9 239.0 655.1 - - 655.1 530.0 1,183.0
Japan 64.0 158.1 - - 158.1 214.0 298.0 20.0 - 318.0 278.0 476.1
Germany - 22.8 - - 22.8 125.0 174.8 - - 174.8 125.0 197.6
UK (DFID) - 23.2 - - 23.2 - 74.0 - - 74.0 - 97.2
Italy - - - - - 170.0 271.7 - - 271.7 170.0 271.7
OPEC - 0.3 - - 0.3 179.0 281.5 - 29.0 310.5 179.0 310.8
BADEA - - - - - 111.0 164.7 - 29.0 193.7 111.0 193.7
NDF - 14.8 - - 14.8 - 35.0 5.2 85.5 125.7 - 140.5
Ireland Aid - 2.6 - - 2.6 - 47.8 - - 47.8 - 50.4
Sweden - - - - - - 54.4 - - 54.4 - 54.4
GoE 7,177.0 3,313.5 - - 3,313.5 1,907.0 2,793.7 375.9 514.9 3,684.5 9,084.0 6,998.0
Road Fund - 869.8 - - 869.8 1,517.0 1,353.8 101.5 - 1,455.3 1,517.0 2,325.1
Unidentified - - - - - - - - 726.4 726.4 - 726.4
Community - - - - - 3,840.0 - - 153.6 153.6 3,840.0 153.6
Total 8,637.0 7,114.0 - - 7,114.0 11,136.0 9,526.4 1,834.1 1,538.4 12,898.9 19,773.0 20,012.9
 * 1.0 USD = ETB 8.55

Source: Ethiopian Roads Authority

 ANNEX 5
Page 2 of 5
a) Methodology and Assumptions for Economic Evaluation

i) Methodology
The approach to the economic evaluation has been conditioned by the mix of the benefits accruing to
investments in what involves upgrading of 56km (Wacha – Bechuma section) of deteriorated motorized
gravel road section to a higher level of gravel road and what is essentially a new link in the road network
(120km section from Bechuma – Maji); and paving of 25% of the link in steep grades in mountainous
sections. The methodology used was therefore based on combining HDM IV and producer surplus approach
for the economic appraisal, which is found to be appropriate. Road condition data input into the HDM IV
have been in a “with” and “without” project scenarios. The road is broken into Wacha – Bechuma using
VOC and HDM-IV and Bechuma - Maji and using Producer Surplus Approach due to induced agricultural
production as a result of new road access. HDM IV allows for modelling over the analysis period of the link,
the interaction between traffic volume, composition, road condition, geometry and characteristics and the
vehicle operating costs for the “with” and “without” project scenarios.

All appraisal components have been inputted into the model in USD; output values are in Ethiopian Birr at
the current rate of exchange at appraisal. For Economic Analysis, financial construction and maintenance
costs have been converted into economic costs by applying a conversion factor of 0.78. The measures of
project worth used in the Cost Benefit Analysis are the EIRR, NPV, BCR and the FYRR at 10% discount
rate. The base year taken for economic evaluation is 2004, the year in which construction is expected to
commence with a construction period of 40 months and first year of service of the project road estimated as
2009 with a service year of 20 years ending in 2028. Details on the methodology is in the Project
Implementation Document (PID)

ii) Appraisal Assumptions

i) Maintenance Strategies
Maintenance of the existing road has been minimal and intermittent consisting mainly of spot repairs and
some grading. The maintenance strategies incorporated into the appraisal are as follows:

“Without project” do minimum: which is essentially the historic maintenance practice on the existing
section of the road. This involves a grading frequency of once a year and spot re-gravelling of 30m3 per km
per year. In practice routine maintenance is not annual through out the route (56kn section of Wacha -
Bechuma) and both grading and spot re-gravelling used in the analysis are overestimated above current
practice. The rest of the route (Bechuma – Waji) where the model is run to calculate modal shift benefits, the
current alignment is assumed to be an unmaintainable track.
“With project “high standard: which comprises annual routine maintenance, grading at a frequency of one
blade pass after each 260,000 vehicles, spot regravelling to a maximum 50m3 per km per year, and
resurfacing when gravel thickness reduces 100mm estimated at every 5 years, and resealing of paved sections
every eight years.

ii) Residual Value

Residual values have been calculated for a road operating life of 20 years based on various investment
components of the project made up of general, earthworks, drainage structures, ancillary & road works,
bridges, and design and supervision services. This has been estimated at 14.4% of original economic
investment cost of Ethiopian Birr 221.68 million and amounts to Ethiopian Birr 31.92 million.

iii) Costs and Benefits

Costs
The costs taken into account are the Road Agency costs in the “with” and without project situations
which include both the cost of routine and periodic maintenance, the investment cost of upgrading the
project road to a higher design gravel standard and intermittent bituminous surfacing in steep grades in
mountainous sections. The investment costs taken into account include the financial base cost for civil
works plus the physical contingencies, consulting services for supervision, design review, audit technical
assistance for capacity building. These are converted to economic cost using the conversion factor of
0.78. The financial contingencies are not taken into account, as they do not constitute consumption of
economic resources. The economic investment cost amounts to Ethiopian Birr 221.68 to be disbursed
over the period 2004 to 2008.
Benefits
 ANNEX 5
Page 3 of 5

The benefits include road user benefits in terms of VOC and time savings on the motorized sections and
on diverted truck traffic from alternative desert route, NMT savings, modal shift benefits from pedestrian
back and head loading to motorized transport, air diversion benefits, and producer surplus benefits due to
opening up and accessing the agricultural potentials in Project Area of Influence.

The motorized VOC and Time Savings benefits for existing normal vehicular traffic and diverted traffic
based on HDM-IV modeling increased from Ethiopian Birr 6.06 million in 2009 to Ethiopian Birr 20.45
million in 2028.

Benefits for the Non Motorized Transport (NMT) using the existing part of the road are benefits accruing
to pack animals and pedestrians. The volume of NMT over the existing motorized section input into
HDM-IV are inferred from previous study on Butajira – Hossaina – Sodo which indicate observations at
the rate of 55 NMT per km per day. On this basis it is estimated that approximately 3000 units of NMT
would pass over the project road per day (See PID). At an average trip length of 2.5km, the NMT ADT
equivalent is put at 125 of which 10.0% are pack animals and the rest are pedestrian head and back
loaders. NMT benefits are projected to increase at the rate of population growth increasing from
Ethiopian Birr 00.05 million in 2009 to Ethiopian Birr 0.12 million in 2028.

Producer surplus benefits have been estimated on the basis of Values of Producer Surplus by Area of
Influence Weredas disaggregated for each of the three weredas of Dizi, Meinit and Chena. The
producer surplus in volume terms is annual production less the portion of the crop lost by environmental
factors, poor husbandry and storage, seeds required for the next planting season and household
consumption of farmers. Current Producer Surplus tones are estimated at 10,161.7 for D131, 53,808.9
for Meinit and 195,671 for Chena. Farm gate prices are applied to the volume of producer surplus to
calculate the value. The net surplus increasing from Ethiopian Birr 8.05 million in 2009 to Ethiopian
Birr 49.81million in 2028. It is assumed that with the road project, constraints on agricultural technology
are removed or eased and access to markets improved thereby providing incentives to take additional
land into cultivation. In the “without project” case the area of land under cultivation is seen to increase by
some 30% over the next two decades, leaving the relationship between total output and producer surplus
little changed, though both would increase with population growth. In the “with project” case, the
increase in cultivated area in respond to improved opportunities for agricultural marketing is assumed to
increase by 70%. Though the cropping pattern is seen unchanged, there would be greater emphasis of
higher value added crops. The details of the estimation are available in the PID.

Modal Shift Benefits is the shift from pedestrian headloading/backloading to lower cost motorized mode
when the project is completed and open to traffic on the 120km of track that is impassable to motorized
transport under the without project case. HDM.4 has been run to compare the cost of moving the
relevant tonnage of produce surplus over an unmaintained track of the geometric characteristics of the
project alignment with those of moving same volumes in a 10-ton truck over a gravel road of the
standard proposed for the project. The investment models was also run to determine the cost of moving
the tonnage by head loading over an unmaintained track and determine the cost of the equivalent
movements by a 10-ton truck over the new road. The model runs were then compared to calculate
benefits from modal shift, which increased from a level of Ethiopian Birr 16.72 million in 2009 to Birr
40.87 million in 2028.

The composition of benefits in the “base case” indicated VOC benefits for normal traffic as 1.9%,
Motorized time savings 0.3%, NMT savings 0.1%, Modal Shift benefits 44.0%, Truck diversion benefits
16.4%, Producer Surplus Benefits 36.3% and Air Diversion benefits of 1.0%. The forecast benefits are
dominated by the modal shift, producer surplus and truck diversion benefits.

Result of Cost – Benefit Analysis

The results of the economic evaluation using the measure of investment worth on the basis of most likely
traffic forecast scenario and in which exogenous benefits to both non-motorized transport and agricultural
surplus benefits were estimated resulted in an Economic Internal Rate of Return of 15.57% which is
higher than the current opportunity cost of capital in Ethiopia of 10.0%, agreed between Government and
Ethiopian Development Partners for admission of projects in the RSDP II. All measures of project
investment worth in the base case scenario of NPV at Birr 129.72 million, BCR of 1.68 and a FYRR of
13.6% confirm the viability of the intervention in the upgrading of the Wacha – Maji road project. (See
Page 5 of 5 of Annex 5 for the flow of benefits and costs and the base case results)
 ANNEX 5
Page 4 of 5

Sensitivity Analysis
Sensitivity testing has been made on the result of the base case scenario with respect to all measures of
investment worth for the project road and the results indicated in the Table below confirm the project
viability. When producer surplus benefits are reduced by 20%, and modal shift benefits are reduced by
20% respectively, the results indicated that the project is still viable. In a worst-case scenario of
simultaneous increase of project costs by 15% and benefits reduction by 15%, the project is still viable.

Scenarios EIRR % NPV B/C FYRR

Birr Million Ratio

1. 20% reduction in producer surplus 14.7 106.0 1.55 12.8

benefits

2. 20% reduction in freight diversion 15.2 119.2 1.62 13.1

benefits

3. 20 % reduction in modal shift benefits 14.5 101.8 1.53 12.0

4. 10 % reduction in all benefits 14.4 97.6 1.51 12.1

5. 10% increase in costs 14.5 112.0 1.53 12.3

4. 15% increase in costs and 15% reduction 12.3 54.9 1.25 10.0
in benefits

In addition to the sensitivity test on the base case scenario, switch values analysis to indicate percentage change
in benefits and costs that would bring the economic rate of return to 10 % threshold were undertaken. The
results as in table below indicated that a 73.1% increase in investment cost and a 40.3% decrease in benefits
respectively are required before feasibility is threatened. It would also require a combined change of investment
cost increase of 28.8% and benefit decrease of 28.8% to arrive at an EIRR of 10%.

Table 7.1: Switch values for EIRR of 10.0%

Case % Change
Increase in investment costs 73.1%
Decrease in benefits 40.3%
Combined change in both 28.8%
 ANNEX 5
Page 5 of 5
BASE CASE ECONOMIC ANALYSIS
Capital Costs (financial): 249.08 Million Birr Capital Costs (economic): 221.68 Million Birr

Benefits to Existing Traffic Modal Truck Air Producer Capital Without project With project Net 10% Disc. Net
Year MT VOC MT Time NMT Shift Diversion Diversion Surplus Costs Maintenance Maintenance Benefit and Disc factors Benefit and
Savings Savings Savings Benefits Benefits Benefits Benefits Costs Costs Cost stream Cost stream
2004 0.00 0.00 0.00 2.9948968 -2.99 1.0000 -2.99
2005 0.02 0.00 0.00 64.963324 -64.95 0.9091 -59.04
2006 0.02 0.00 0.00 64.963324 -64.95 0.8264 -53.68
2007 0.03 0.00 0.00 64.963324 -64.93 0.7513 -48.79
2008 0.03 0.00 0.00 23.795131 -23.76 0.6830 -16.23
2009 0.34 0.04 0.05 16.72 5.68 0.39 8.05 0.29 1.87 29.69 0.6209 18.43
2010 0.35 0.04 0.05 17.19 6.07 0.41 9.48 0.29 1.87 32.00 0.5645 18.06
2011 0.36 0.04 0.05 18.03 6.49 0.44 10.99 0.29 1.87 34.80 0.5132 17.86
2012 0.37 0.04 0.04 18.95 6.93 0.46 12.58 0.29 1.87 37.80 0.4665 17.64
2013 0.38 0.04 0.04 19.92 7.41 0.49 14.27 2.39 7.14 37.80 0.4241 16.03
2014 1.85 0.26 0.09 20.93 7.92 0.52 16.04 0.29 1.87 46.03 0.3855 17.75
2015 1.64 0.25 0.09 21.97 8.47 0.55 17.92 0.29 1.87 49.31 0.3505 17.28
2016 1.28 0.19 0.09 26.28 9.06 0.58 19.89 0.29 4.59 53.07 0.3186 16.91
2017 0.95 0.14 0.08 27.00 9.57 0.60 21.97 0.29 1.87 58.73 0.2897 17.01
2018 0.68 0.08 0.07 27.50 10.12 0.63 24.16 0.29 7.14 56.40 0.2633 14.85
2019 0.94 0.05 0.04 28.11 10.69 0.66 26.47 0.29 1.87 65.40 0.2394 15.66
2020 2.91 0.37 0.11 29.09 11.30 0.69 28.90 0.29 1.87 71.79 0.2176 15.62
2021 2.35 0.33 0.11 30.17 11.95 0.73 31.45 0.29 1.87 75.51 0.1978 14.94
2022 1.71 0.24 0.10 31.48 12.63 0.76 34.14 0.29 1.87 79.50 0.1799 14.30
2023 1.08 0.14 0.08 32.74 13.35 0.80 36.97 2.39 7.14 80.41 0.1635 13.15
2024 0.65 0.06 0.04 34.07 14.11 0.83 39.95 0.29 4.59 85.41 0.1486 12.70
2025 0.43 0.03 0.00 38.52 14.91 0.87 43.07 0.29 1.87 96.26 0.1351 13.01
2026 3.80 0.52 0.13 39.62 15.76 0.91 46.36 0.29 1.87 105.52 0.1228 12.96
2027 3.32 0.47 0.12 40.87 16.66 0.96 49.81 0.29 1.87 110.63 0.1117 12.36
2028 3.32 0.47 0.12 40.87 16.66 0.96 49.81 -31.92 0.29 7.14 137.29 0.1015 13.94

FYRR EIRR 15.57% NPV

0.136 129.72

Disc Net Costs Disc Benefits Disc B/C

191.78 321.50 1.68
Source: ADF Appraisal Mission, Sept. 2002
 ANNEX 6
Page 1 of 2
ETHIOPIA
WACHA – MAJI ROAD UPGRADING PROJECT
ENVIRONMENTAL AND SOCIAL MANAGEMENT PLAN SUMMARY

a) Brief description of the project and key environmental and social components

The road from Wacha to Maji is located southeast of Addis Ababa in Southern Ethiopia. The project
road runs 173 km from Wacha to Maji. The project consists of upgrading the existing earth/track road to
high-class gravel road with DBST paving of about 20% of the road on steep gradients in mountainous
sections. The project construction involves improved horizontal and vertical alignments, and
construction of drainage structures.

b) Major environmental and social impacts

 Soil Erosion removal of vegetative covers for road construction and at material borrow pits will
generate erosion and affect the road itself, the shoulders, the road reserve, and the nearby land and
crop fields. Road erosion silt the watercourses and under the bridges. Erosion may also occur at
storm water drainage outfalls when water velocities are not controlled. Design is critical to
alleviate this problem.
 Disturbance of natural water flows occurs mainly when there are changes in drainage patterns
or when drainage facilities, culverts, and bridges are not adequately designed, implemented, or
maintained. This results in inundation, road overflow, erosion, and downstream water
abstraction, which affect fauna and flora.
 Water pollution by oil spillage: Results from road construction and operation and affect surface
and groundwater resources in specific areas as well as affect resources use by population and
animals.
 Traffic disruption: This is a minor temporary disruption during road rehabilitation works.
 Traffic Noise: in the rural areas, noise is a minor impact as residences are scattered and road
traffic is low.
 Waste materials from drain cleaning and pavement reconstruction: Impacts are minor if
disposed properly, i.e. in areas to be reclaimed, but not in rivers.
 Safety of road workers from careless commuters: risks of accidents are temporary during road
rehabilitation, especially when road signing is poor.
 New developments and settlements, induced by improved access usually in the form of
markets and other business premises, new clearing for cropping, and homestead implementation.
 Landscape disturbance, besides borrow pits, this is mainly limited to road reserve and results
from clearing for improved visibility. Un-rehabilitated borrow pits become hazards and/or
breading sites for disease vectors (e.g.: malaria, shistosomiasis).

c) Mitigating Measures

Design and construction measures: 1) Minimization of clearing, especially during rainy period;
quick reestablishment of vegetative cover; 2) To control sedimentation and sediment loading,
construction in and around perennial rivers should be conducted during dry season; on-site drainage
management using dikes, sediment traps, and silt fences will be implemented; 3) Regular watering of
road works in operational areas; 4) Install water diversions on the road alignment designed to
minimize erosion in the road reserve and fields; 5) Provide necessary and adequate drainage works; 6)
Provide stone riprap at inlets and outlets of culverts to minimize erosion due to high velocities of
storm water runoff; 7) Avoid materials extraction in or close to human settlement areas wherever
possible; and 8) Protect erosion susceptible surfaces by grassing and stone pitching and/or with mulch
or fabric.
 ANNEX 6
Page 2 of 2
Rehabilitation works: Rehabilitate quarries into water points or by replanting vegetation.
Maintenance works: Cure gullies abutting the road using gabion works.
Law enforcement: 1) Enforce air and noise pollution standards; 2) Schedule work in towns only
during daytime.

Prevention and waste disposal: 1) Provide adequately located and maintained latrines and roadside
litter disposal facilities; 2) Create awareness on HIV/AIDS and other related diseases and provide
limited health care services.

d) Monitoring program and complementary initiatives

Monitoring and supervision are conducted to ensure that potential environmental impacts are minimized
through adequate implementation of mitigation measures and also to provide early warning on unforeseen
impacts. Some of the key parameters for monitoring and supervision in the Wacha Maji road upgrading
project include: 1) Erosion of the road, control the limits of disturbance during construction; 2) Water
quality in critical water resources affected by road construction, by controlling proper implementation of
sediment control measures; 3) Vegetation, assess encroachment on forested areas by non planned
economic activities, especially new clearing for cropping, and homestead development; 4) Traffic
accidents in order to improve road signing; and 5) Diseases such as malaria, especially around borrow
sites.

e) Institutional arrangements

The supervision consultants and the Environmental Management Branch of the Ethiopian Roads
Authority will monitor the implementation of above outlined mitigation measures. Full consultations
with local authorities and close follow-up of specific clauses in contract documents will also be carried
out by ERA.

f) Public consultations and disclosure requirements

During project preparation and design phase, as well as during the EIA report studies, extensive
consultation with local authorities and stakeholders were carried out.

g) Estimated costs

There are two types of costs associated with the adverse environmental and social impacts of the road
upgrading: 1) the impacts that are in the road right of way, for which the cost is integrated in the
overall project design and costing; 2) and the potential impacts that are out of the right of way, for
which the local government will make the necessary arrangements for mitigation.

h) Implementation schedule and reporting

Implementation of the mitigation measures follows the civil works of upgrading the road. The two
activities are fully integrated
 ANNEX 7
Page 1 of 2
ETHIOPIA - SUMMARY OF BANK GROUP OPERATIONS AS OF 30 OCT. 2002
SOURCE NET LOAN DISB UNDISB LOAN STATUS BALANCES
YEAR OF DATE AMOUNT AMOUNT AMOUNT PERCENT CLOSING OF CANCELLED
No APPROVED PROJECT FUNDS SIGNED Million UA Million UA Million UA DISB DATE PROJECT Million UA
AGRICULTURE
1 1975 Southern Rangeland Livestock ADF 20-02-1976 4.59 4.59 0.00 100.00 30-Jun-94 Completed 0.01 0.16
2 1977 Amibara Irrigation ADF 18-08-1977 4.25 4.25 0.00 100.00 31-Dec-87 Completed 1/ 0.35
3 1979 Finchaa Sugar Study ADB 16-05-1979 4.85 4.85 0.00 100.00 31-Dec-85 Completed 0.15
4 1980 Wush Wush Tea ADF 12-12-1980 7.36 7.36 0.00 100.00 31-Dec-95 Completed 1/ 0.01
5 1981 Addis Ababa Fuekwood* ADF 25-06-1982 6.62 6.62 0.00 100.00 31-Dec-94 Completed 1/ 2.59
6 1982 Bebeka Coffee Plantation ADB 06-05-1982 10.00 10.00 0.00 100.00 31-Dec-94 Completed 1/ ***
7 1982 Agricultural Line of Credit ADF 02-08-1983 7.33 7.33 0.00 100.00 30-Jun-94 Completed 1/ 0.04
8 1984 Gelena Irrigation TAA 05-11-1984 1.10 1.10 0.00 100.00 30-Jun-90 Completed 0.32
9 1984 Dairy Rehabilitation & Dev.* ADF 28-01-1985 5.01 5.01 0.00 100.00 11-Jul-95 Terminated 1/ 15.4
10 1985 Small Scale Irrigation* ADF 09-05-1985 5.36 5.36 0.00 100.00 31-Dec-95 Terminated 1/ 10.3
11 1985 Awash Basin Water Study TAA 09-05-1985 1.19 1.19 0.00 100.00 30-Jun-94 Completed ***
12 1985 PADEP (Sidamo /Gamo/Gofa)* ADF 07-05-1986 5.44 5.44 0.00 100.00 31-Dec-95 Terminated 1/ 13.7
13 1986 Tepi Coffee Development ADB 24-04-1987 4.68 4.68 0.00 100.00 31-Dec-98 Completed 2.92
ADF 24-04-1987 16.05 16.05 0.00 100.00 31-Dec-98
14 1987 Amibara Drainage I ADF 27-08-1987 14.78 14.78 0.00 100.00 31-Dec-97 Completed 0.16
15 1988 Finchaa Sugar ADB 25-04-1989 78.25 78.00 0.25 99.68 31-Dec-99 Completed 1.75
ADF 14-02-1989 14.46 14.46 0.00 100.00 31-Dec-99
16 1989 South East Rangelands ADF 01-12-1989 18.28 18.28 0.00 100.00 31-Dec-00 Completed 3.83
17 1989 EVDSA Institutional Building TAF 01-12-1989 2.56 2.56 0.00 100.00 31-Dec-93 Completed 1/ 0.35
18 1989 Wush Wush II ADF 14-02-1990 6.42 6.42 0.00 100.00 30-Jun-99 Completed 3.71
19 1990 Meat Plant Feasibility Study TAF 21-02-1991 1.02 1.02 0.00 100.00 31-Dec-97 Completed 0.07
20 1991 Omo-Ghibe Master Plan Study TAF 31-12-1991 5.07 5.07 0.00 100.00 31-Dec-97 Completed
21 1991 Birr- Koga Irrigation Study TAF 24-12-1991 2.48 2.48 0.00 100.00 31-Dec-97 Completed 0.29
22 1992 Amibara Drainage II study TAF 22-01-1993 0.54 0.36 0.18 66.67 31-Dec-95 Completed
23 1997 National Fertilizer Project ADF 21-02-1998 36.43 36.43 0.00 100.00 30-Jun-02 Completed
24 1998 National Livestock Project ADF 21-11-1998 27.00 7.38 19.62 27.33 30-Jun-04 On Going
25 2000 Pastoral Area Development Study TAF 15-12-2000 0.71 0.00 0.71 0.00 31-Dec-02 On Going
26 2001 Koga Irrigation ADF 19-07-2001 32.59 0.11 32.48 0.34 31-Dec-06 On Going
TAF 19-07-2001 1.33 0.16 1.17 12.08 31-Dec-06 On Going
27 2001 Genale-Dawa Master Plan Study TAF 16-11-2001 3.93 0.00 3.09 0.00 31-Dec-06 On Going
TRANSPORT
28 1977 Jimma-Chida Road ADF 13-12-1977 6.45 6.45 0.00 100.00 16-Jul-85 Completed
29 1980 Rural Roads( Sidam, Bale) ADF 22-06-1980 7.11 7.11 0.00 100.00 30-Jun-85 Completed 0.25
30 1981 Rural Roads( Gondar and Shoa) ADF 30-12-1981 10.94 10.94 0.00 100.00 31-Dec-97 Completed 0.11
31 1984 Gore-Tepi Road* ADF 10-02-1984 15.69 15.69 0.00 100.00 31-Dec-94 Completed 1/ 0.74
32 1989 Assab Port Development ADF 29-05-1989 8.58 8.58 0.00 100.00 31-Dec-94 Terminated 32.44
33 1989 Road Maintenance & Rehab. ADF 01-12-1990 43.75 38.61 5.14 88.25 31-Dec-01 Completed
34 1990 Ethiopian Airlines Inf. Dev. ADB 14-03-1991 24.55 24.55 0.00 100.00 31-Dec-98 Completed 3.65
35 1992 Addis Ababa Airport Study TAF 22-06-1992 1.93 1.93 0.00 100.00 31-Dec-95 Completed
36 1992 Chida Sodo Road ADF 14-04-1993 20.76 20.76 0.00 100.00 31-Dec-98 Completed 3.18
37 1996 Addis Ababa Intl. Airport Dev. Proj. ADF 20-12-1996 19.50 14.96 4.54 76.72 31-Jun-01 On Going
38 1998 Alemgena-Butajira Road Upgrading ADF 21-07-1998 18.50 6.20 14.87 33.51 31-Dec-02 On Going
39 1998 Seven Roads Study TAF 17-12-1998 3.4 0.15 3.25 4.47 30-Jun-02 On Going
40 2001 Butajira-Hossaina-Sodo Road ADF 16-11-2001 41.31 0 41.31 0.00 31-12-08 On Going
 ANNEX 7
Page 2 of 2
SOURCE NET LOAN DISB UNDISB LOAN STATUS BALANCES
YEAR OF DATE AMOUNT AMOUNT AMOUNT PERCENT CLOSING OF CANCELLED
No APPROVED PROJECT FUNDS SIGNED Million UA Million UA Million UA DISB DATE PROJECT Million UA

PUBLIC UTILITIES
41 1975 Addis Ababa Sewerage I ADF 16-01-1976 4.60 4.60 0.00 100.00 31-Dec-79 Completed 1/ ***
42 1979 Rural Electricity ADB 16-05-1979 1.50 1.50 0.00 100.00 30-Jun-84 Completed 1/
NTF 16-05-1979 5.00 5.00 0.00 100.00 30-Jun-84
43 1979 Assab Water Supply ADF 27-02-1980 6.13 6.13 0.00 100.00 31-Dec-90 Completed 0.32
44 1986 Power Transmission Lines ADB 24-04-1987 9.37 9.37 0.00 100.00 30-Jun-98 Completed 0.63
(Electricity I) ADF 24-04-1987 24.90 24.90 0.00 100.00 30-Jun-98 0.12
45 1979 Addis Ababa Sewerage II ADF 16-05-1979 6.63 6.63 0.00 100.00 30-Jun-94 Completed 1/ ***
46 1982 Six Centers Water Supply ADF 02-03-1983 13.58 13.58 0.00 100.00 31-Dec-97 Completed 1/ 0.23
47 1983 Eight Centers Water Supply ADF 04-05-1984 11.60 11.60 0.00 100.00 31-Dec-97 Completed 1/ 2.17
48 1984 Telecommunications I ADB 05-11-1984 24.01 24.01 0.00 100.00 31-Dec-95 Completed 1/ 0.02
49 1985 Chemoga Yeda Hydro Study TAA 07-05-1986 0.55 0.55 0.00 100.00 30-Jun-94 Completed ***
50 1989 Five Towns Water Study TAF 29-05-1989 1.44 1.44 0.00 100.00 31-Dec-95 Completed 0.19
51 1989 Addis Ababa Master Plan TAF 01-12-1989 1.09 1.09 0.00 100.00 30-Apr-97 Completed 0.01
52 1990 Aleltu Hydro Feasib. Study TAF 21-02-1991 1.58 1.58 0.00 100.00 30-Jun-98 Completed 0.06
53 1991 12 Towns Water Supply Study TAF 19-03-1992 1.79 1.79 0.00 100.00 31-Dec-97 Completed 1/ 0.51
54 1992 Addis Ababa Water III Study TAF 12-05-1993 2.39 2.39 0.00 100.00 31-Dec-99 Terminated 0.08
ADF 12-05-1993 3.05 3.05 0.00 100.00 31-Dec-99 0.56
55 1992 Telecommunications II ADB 14-04-1993 23.79 23.79 0.00 100.00 30-Jun-02 On Going 8.61
ADF 14-04-1993 6.41 3.38 3.23 52.73 30-Jun-02 7.91
56 1992 Northern Ethiopian Power Trans. ADB 14-04-1993 20.11 20.11 0.00 100.00 31-Dec-98 Completed 0.73
ADF 19-04-1993 26.72 26.72 0.00 100.00 31-Dec-98 0.53
57 1993 Hydro-Power Feasibility Study TAF 06-09-1994 2.35 2.35 0.00 100.00 31-Jun-01 Completed 1.9
58 2001 Rural Electrification Project ADF 14-03-2002 37.67 0.00 37.67 0.00 31-Dec-05 On Going
59 2002 Harar Water Supply & Sanitation ADF 19.89 0.00 19.89 0.00 31-Dec-09 On Going
TAF 1.12 0.00 1.12 0.00 31-Dec-09
SOCIAL
60 1983 Primary Teachers & Sec. Education ADF 13-06-1983 14.98 14.98 0.00 100.00 31-Dec-95 Completed 1.15
61 1992 Basic Educ., Tech. & Voc. Training ADF 22-01-1993 4.53 4.53 0.00 100.00 31-Dec-99 Completed 10.21
62 1998 Education III Project ADF 21-11-1998 32.00 7.20 29.42 22.50 31-Dec-02 On Going
TAF 21-11-1998 0.30 0.00 0.30 0.00 31-Dec-02 On Going
63 1998 Primary Health Care ADF 17-12-1998 29.67 2.65 29.37 8.93 31-Dec-02 On Going
INDUSTRY & MINING
64 1987 Lega Dembi Gold ADB 19-11-1987 16.55 16.55 0.00 100.00 31-Dec-95 Completed 1/ 0.53
65 1989 Lega Dembi Gold Study TAF 30-01-1990 2.11 2.02 0.09 95.73 31-Dec-97 Completed 0.68
66 1993 Biklal Phosphate Study TAF 26-01-1994 2.60 1.17 1.43 45.00 31-Dec-01 On Going
67 2000 Privatisation T/A Project TAF 08 03 2001 3.00 0.11 2.89 3.77 31-Dec-03 On Going
68 1992 ERRP ADF 14-05-1992 86.62 86.62 0.00 100.00 30-Dec-97 Completed 1/
69 1993 SAL ADF 09-07-1993 63.54 63.54 0.00 100.00 30-Jun-96 Completed 0.01
70 1998 Suplementary Financing Mechanism ADF Not signed 0.00 0.00 0.00 0.00 31-Dec-99 Cancelled 7.79
71 2001 SAL II ADF 16-11-2001 60.00 40.00 20.00 66.67 31-Dec-03 On Going
72 2001 Capacity Building of MoFED TAF 15-01-2002 0.52 0.15 0.37 27.98 31-Dec-04 On Going
TOTAL 1125.84 862.35 272.39 76.60 85.76

* Projects whose loan balances (totalling UA 44.11 million) were reallocated to the ERRP in 1992
1/ Completed Projects for which PCR have been Prepared
*** Cancelled loan balance less than UA 5,000.00
 ANNEX 8
Page 1 of 2
TECHNICAL ASSISTANCE SUPPORT
FOR DESIGN REVIEW

STAFF TRAINING
1. Onsite staff training in CADD and other design software: 10 staff trained for six months (60 staff-months)
2. Offsite staff training in a professional engineering design environment: six staff trained for six months (36
staff-months)
3. Academic Training: Post Graduate Training for 2 civil engineers at the Master’s Degree level (one in
Highway/Transport Engineering and one in Material Engineering)

RECRUITMENT OF EXPERTS
1. Senior Highway Road Design Engineer with demonstrated expertise in the planning and design of highways
using automated systems – 24 man-months
2. Senior Civil/Hydraulics Engineer with demonstrated expertise in the hydraulic design of drainage structure,
and storm water management facilities using standard drainage design software – 18 man-months
3. Senior Structural/Bridge Engineer with demonstrated expertise in the design of bridges and other highway
structures using automated systems – 12 man-months

CADD EQUIPMENT AND SOFTWARE

CADD Design Standards

Development of CADD standards Handbook for surveying and design including at a minimum:
Definition of a standard CADD platform
Standard layering systems
Pen Sizes, Lettering standards & Design scales
Format of electronic and hard copy deliverables
Standard drawings & Standard symbols

Drafting Software
AUTOCAD Drafting software (full 3D options) from AutoDesk: Network version for six seats
MICROSTATION Drafting software from Bentley: Network version for six seats

Highway Design Software

Highway design software (Network Version) compatible with AUTOCAD such as EaglePoint or similar
Highway design software (two seats) compatible with MICROSTATION such as GEOPAK, INROADS or similar

Structural Design Software

Packages from: SAND, Master Series, Prokon, Smart Engineer, Strand7, or Leap5.

Hydrology and Drainage Design Software

Packages as recommended in the ERA "Drainage Design Manual" as follows:
 TR55 - SCS Method for Runoff Estimation;
 HY8 - Hydraulic Performance of Culverts;
 WSPRO - Water surface profile model;
 HEC-1 - Flood Hydrograph package;

The design software must be the latest version, must be capable of being used simultaneously by six users and should
be compatible with AutoCAD.
All software shall be supplied with a three-year maintenance support option included in the purchase price. All
software shall be sealed, originals as supplied by the registered publisher, complete with appropriate manuals, licenses,
and guarantees.
The design software shall be compatible with the PC operating system (Windows 2000)

CADD Equipment

CADD equipment shall be as detailed below, as a minimum:

 ANNEX 8
Page 2 of 2

 6 CADD Workstation Computers, Pentium P4, 2 GHz, 256MB RAM upgradeable, 40GB HD, Monitor
21" (1800x1440 resolution @ 80 Hz), 10/100 MPS network card, re-write able CD drive, Windows 2000,
Office XP;
 6 No. UPS, 1200VA;
 6 No. Sets CADD Workstation furniture, fittings, and appropriate documentation storage;
 1 No. A3 Inkjet color network printer, 1200dpi, 15ppm color (A4);
 1 No. A3/A4 Laser mono network printer, 1200 dpi, 10/20ppm;
 1 No. A0 self standing Inkjet color network plotter, 1200 dpi, plotter stand, paper roll feeder, automatic
paper cutter;

Technical Assistance Support

Cost Estimate (UA)

DESIGNATION UNIT QUANTITY UNIT PRICE EXTENSION

STAFF TRAINING
Onsite staff training in CADD and other design software Lump sum 27,000
Offsite staff training in a professional engineering firm Lump sum 200,000
Academic Training: Post Graduate Training for 2 civil engineers Lump sum 70,000
Sub-Total 297,000
RECRUITMENT OF EXPERTS
Senior Highway Road Design Engineer Man-Month 24 10,000 240,000
Senior Civil/Hydraulics Engineer Man-Month 18 9,500 171,000
Structural/Bridge Engineer Man-Month 12 8,000 96,000
Sub-Total 507,000
CADD DESIGN STANDARD MANUAL
CADD Design Expert Man-Month 8 8,000 64,000
CADD Operator Man-Month 4 8,000 32,000
Sub-Total 96,000
CADD EQUIPMENT AND SOFTWARE
Drafting Software
AUTOCAD Drafting software (full 3D options) No. 6 4,000 24,000
MICROSTATION Drafting software No. 2 4,000 8,000
Highway Design Software
Highway design software (AUTOCAD) No. 3 8,000 24,000
Highway design software (MICROSTATION) No. 1 8,000 8,000
Structural Design Software No. 1 12,000 12,000
Hydrology and Drainage Design Software No. 1 12,000 12,000
CADD Equipment
CADD Workstation Computers, Pentium P4, 2 GHz, 256MB RAM
40GB HD, Monitor 21" (1800x1440 resolution @ 80 Hz), 10/100 No. 6 6,000 36,000
MPS network, CD drive, UPS, Windows 2000, Office XP;
CADD Workstation furniture, fittings No. 6 500 3,000
A3 Inkjet color network printer, 1200dpi, 15ppm color (A4); No. 1 5,000 5,000
A3/A4 Laser mono network printer, 1200 dpi, 10/20ppm; No. 1 3,000 3,000
A0 self standing Inkjet color network plotter, 1200 dpi, plotter stand,
No. 1 15,000 15,000
paper roll feeder, automatic paper cutter;
Sub-Total 150,000
Total  1,050,000
 ANNEX 9

ETHIOPIA
WACHA MAJI ROAD UPGRADING PROJECT
List of Annexes in the Project Implementation Document (PID)

1. SUMMARY OF PROJECT SCOPE AND OBJECTIVES

2. PROJECT MAPS
3. PROJECT DESIGN
4. DETAILED PROJECT COSTING
5. SUMMARY OF PROCUREMENT ARRANGEMENTS
6. PROJECT IMPLEMENTATION SCHEDULE
7. PROJECT SUPERVISION PLAN
8. TRAFFIC DEMAND AND ROAD USER PRICES
9. PARAMETERS FOR ECONOMIC ANALYSIS
10. HDM RESULTS FOR LINK ROADS AND PROJECT ROAD
11. SCHEDULE OF DISBURSEMENT
12. ENVIRONMENTAL AND SOCIAL IMPACTS ASSESSMENTS