AFRICAN DEVELOPMENT FUND

PROJECT: MODJO – HAWASSA HIGHWAY PROJECT (PHASE I)

COUNTRY: ETHIOPIA

PROJECT APPRAISAL REPORT

OITC DEPARTMENT

October 2013
 TABLE OF CONTENTS

I – STRATEGIC THRUST & RATIONALE ............................................................................ 1

1.1 Project linkages with country strategy and objectives ..................................................... 1
1.2 Rationale for Bank’s involvement ................................................................................... 2
1.3 Donor coordination .......................................................................................................... 3

II – PROJECT DESCRIPTION ................................................................................................. 3

2.1 Sector Goal and Project Objective ................................................................................... 3
2.2 Project components .......................................................................................................... 3
2.3 Technical solution retained and other alternatives explored............................................ 5
2.4 Project type ...................................................................................................................... 5
2.5 Project cost and financing arrangements ......................................................................... 5
2.6 Project's target area and population………………… ..................................................... 7
2.7 Participatory process for project identification, design, implementation ........................ 7
2.8 Bank Group experience, lessons reflected in project design ........................................... 8
2.9 Key performance indicators ........................................................................................... 8

III – PROJECT FEASIBILITY ................................................................................................. 8

3.1 Economic and Financial Performance ............................................................................. 8
3.2 Environmental and Social impacts................................................................................... 9

IV – IMPLEMENTATION...................................................................................................... 11
4.1 Implementation arrangements ........................................................................................ 11
4.2 Monitoring ..................................................................................................................... 13
4.3 Governance .................................................................................................................... 13
4.4 Sustainability................................................................................................................ 14
4.5 Risk management ........................................................................................................... 14
4.6 Knowledge building ....................................................................................................... 15

V – LEGAL INSTRUMENTS AND AUTHORITY............................................................... 15

5.1 Legal instrument ............................................................................................................ 15
5.2 Conditions associated with Bank’s intervention ............................................................ 15
5.3 Compliance with Bank Policies ..................................................................................... 16

VI – RECOMMENDATION ................................................................................................... 16

Appendix I: Ethiopia’s comparative socio-economic indicators

Appendix II: Ethiopia’s Portfolio 2013
Appendix III: Key related projects funded by Bank and other DPs
Appendix IV: Map of Project
 Currency Equivalents
As of 7 June 2013
1 Unit of Account = ETB 27.91022
1 Unit of Account = USD 1.49877
1 USD = ETB 18.62209

Fiscal Year
8 July- 7 July

Weights and Measures

1metric tonne = 2204 pounds (lbs)
1 kilogramme (kg) = 2.200 lbs
1 metre (m) = 3.28 feet (ft)
1 millimetre (mm) = 0.03937 inch (“)
1 kilometre (km) = 0.62 mile
1 hectare (ha) = 2.471 acres

Acronyms and Abbreviations

AC Asphalt Concrete HIV Human Immunodeficiency Virus
AdC Advanced Contracting IDA International Development Association
AfDB African Development Bank ICB International Competitive Bidding
ADF African Development Fund IP/DO Implementation Progress /
AADT Average Annual Daily Traffic Development Outcome
ADT Average Daily Traffic JICA Japan International Cooperation
AIDS Acquired Immune Deficiency Syndrome Agency
BADEA Arab Bank for Economic Development KfW Germany Development Bank
for Africa LTS Long Term Strategy
BPR Business Process Re-Engineering LC Local Cost
CSP Country Strategy Paper LCS Least Costs Selection
DBST Double Bitumen Surface Treatment MTP Medium Term Plan
DfID Dept.for International Development MDG Millennium Development Goals
DP Development Partners NEPAD New Partnership for Africa
ESW Economic Sector Work Development
EIRR Economic Internal Rate of Return NGO Non-governmental Organization
EDCF Economic Development Cooperation NPV Net Present Value
Fund
ESIA Environmental and Social Impact OPEC Organization of Petroleum Exporting
Assessment Countries
ESMP Envi. and social Management Plan OFAG Office of Federal Auditor General
EA Executing Agency PAP Project Affected Persons
ERA Ethiopian Roads Authority Ethiopian PIDA Program for Infrastructure
ETB Birr (Currency) Development for Africa
ERF Ethiopian Roads Fund PCR Project Completion Report
EU European Union PFM Public Financial Management
FC Foreign Currency QCBS Quality and Cost Bases Selection
GNP Gross National Product RFP Request for Proposals
GOE Government of Ethiopia RSDP Road Sector Development Program
GPN General Procurement Notice SPN Specific Procurement Notice
GTP Growth and Transformation Plan STI Sexually Transmitted Infection
GTZ German Company for International TSWG Transport Sector Working Group
Cooperation VOC Vehicle Operating Costs
HDM Highway Design and Maintenance
Standard Model
 Loan and Grant Information
Client’s information
BORROWER: THE FEDERAL DEMOCRATIC REPUBLIC OF ETHIOPIA

EXECUTING AGENCY: ETHIOPIAN ROADS AUTHORITY

Financing plan
Source Amount (UA) Instrument
AFRICAN DEVELOPMENT FUND 84,080,000 LOAN

AFRICAN DEVELOPMENT FUND 1,630,000 GRANT

GOVERNMENT OF ETHIOPIA 66,120,000 OWN CONTRIBUTION
TOTAL COST OF LOT 1 151,830,000
KOREA EXIM BANK (PARALLEL
66,720,000 LOAN
FINANCING)
GOVERNMENT OF ETHIOPIA 14,650,000 OWN CONTRIBUTION
TOTAL COST OF LOT 2 81,370,000

GRAND TOTAL COST 233,200,000

ADB’s key financing information

Loan currency Units of account

Interest type* Not Applicable
Interest rate spread* Not Applicable
Commitment fee* 0.5% per annum on the un-disbursed loan balance
Service Charge 0.75% on the amount disbursed and outstanding
Other fees* Not Applicable
Tenor 50 years
Grace period 10 years
EIRR, NPV (base case) 14.5%, USD 17.1 m
EIRR (base case) Not applicable
*if applicable
Timeframe - Main Milestones (expected)

Identification mission January 2013

Preparation mission February 2013
Project Concept Note (PCN) approval May 16, 2013
Appraisal mission June 2013
Country Team meeting September 12, 2013
Project approval November 6, 2013
Effectiveness March 2014
Last Disbursement December 2020
Completion December, 2019
Last repayment March, 2080

ii
 Project Summary
Project Overview
The Modjo – Hawassa Highway Project (209km) will be implemented in two phases. Phase I
consists of the construction of 93 km of a new asphalt surfaced 4-lane dual carriageway road
between Modjo and Zeway towns. The Modjo – Hawassa Highway Project (Phase I), costing
UA 233.20 m, will be divided into two lots and will be funded by the African Development
Fund (ADF), the Korea Exim Bank (Economic Development Cooperation Fund, EDCF) and
the Government of Ethiopia. The Modjo – Meki section (56km) will cost UA 151.83 and an
ADF loan of UA 84.08 m will fund part of the construction costs and an ADF grant of UA
1.63 m will fund capacity building for Ethiopia Roads Authority. An EDCF loan of UA 66.72
m will, in parallel, fund the construction of the Meki – Zeway section (37km), with
government contribution of UA 14.65m. The project will be implemented in 5 years.
The Modjo- Hawassa highway lies mostly in Oromia Region and is part of the major
Mombasa- Nairobi-Addis Ababa highway. Oromia (pop 31.2 m, 2011) covers 290,000 sq.
km of land and agriculture is the backbone of its economy. The road will therefore serve the
local agri-business and international trade. The direct beneficiaries will include transporters,
travelers, traders, agro-businesses, and others who will benefit from an improved road
connection to Addis Ababa. Local communities (especially youth and women), will for the
short-term, benefit from supplying labor, food and accommodation for immigrant workers,
including improved environmental and economic conditions, and access to health and
education facilities.
Needs Assessment
The current Modjo – Hawassa road is a dilapidated single 2-lane carriageway that has already
served its design life and requires upgrading. The road section forms a link within the Cape
Town to Cairo road corridor connecting southern, eastern and northern Africa. The current
capacity is insufficient to cater for the growing traffic demands, including international heavy
traffic. Furthermore, Ethiopia currently depends on the Djibouti port, and Mombasa port is
the best alternative. In this respect, the Bank has already invested in the construction of
1,000km sections of the Mombasa–Nairobi-Addis Ababa Road Corridor in both Kenya and
Ethiopia. The Modjo – Hawassa highway project is therefore a logical continuation of this
transport expansion program and when completed in 2019, it will provide a wide range of
socio-economic benefits, supporting national and regional trade.
Bank’s Added Value
The Road Sector Development Program (RSDP) IV is an ambitious program intended to
enhance road transport service throughout the country. While the government has mobilized
its own resources (estimated to cover about 75% of the total cost), it is depending on the
financial assistance from Development Partners (DP) to close the 25% funding gap. In this
respect, the Bank, being the fourth largest DP in the sector and a leading financier of regional
infrastructures, is well positioned to continue making strategic contributions as well as
leveraging considerable amount of resources from EDCF to augment its own funds.
Knowledge Management
The knowledge generated during project preparation and implementation will be analyzed to
improve future project design particularly in the use of Design-and-Build concept.
Furthermore, as envisaged in the current CSP, the Bank is conducting a transport sector
economic study to analyze sector policy and institutional issues, including the performance of
Bank funded projects, and focusing on the future transport needs.

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 Result-based Logical Framework

Country and project name: ETHIOPIA: MODJO – HAWASSA HIGHWAY PROJECT (PHASE I)
Purpose of the project : To improve the road transport connectivity between Modjo and Hawassa by increasing traffic carrying capacity of the road
PERFORMANCE INDICATORS
MEANS OF
RESULTS CHAIN Indicator Baseline : Target : RISKS/MITIGATION MEASURES
VERIFICATION
(including CSI) 2012 2020
1: Increased welfare  Total pop. below poverty  29.6%  22% * Central Statistics Risk: Increased general economic growth assumes strict
IMPACT

2: Increased agricultural Agency implementation of the Government’s 5 year plan (GTP).

productivity
 Cereal Productivity  1.700 T per  2.200 T per ha* Mitigation: The GoE has demonstrated political commitment
3: Increased trade  Trade volume between ha  USD 60 million to implement the GTP.
Ethiopia and Kenya  USD 45.5
mln
1. improved connectivity  Traffic  3,610 vpd  47,500 vpd ** Ethiopian Roads Risk: The road will have negative social impact on the local
OUTCOMES

2. Reduced travel costs Authority population (road accidents, HIV/AIDS, deforestation).

3. Reduced travel times (increased
 Composite VOC per veh-km  USD 0.52  USD 0.34 (EA)Statistics Mitigation: Awareness program and tree planting provided.
travel speeds)  Average vehicle journey time  1.30 hrs  0.8 hrs (110 km/h) Department, Risk: Climate change- excessive flooding occurring on flat
(Average vehicle speeds) (70km/h)  No delay / project Monitoring & plains
4. Improved supervision of projects  Timely contract  Min. 2 year completion on time Evaluation Mitigation: Adequate drainages have been provided for and
by ERA implementation delay project will use climate- proofed materials. Afforestation
component will increase CO2 intake
1: Constructed of dual carriageway  Specification and condition  No road  .New 93 km 4 lane Quarterly Progress Risk: Delays in compensation of PAP in design/build project
road of road dual c/way road*** reports by EA and regime, leading to cost increases.
2: Implement ESMP
2.1: Workers / PAP socially
 No. sensitization programs  No action on  All men & women in the Project
Completion Report
Mitigation: Preparation of resettlement already underway.
Price contingencies are built into Project cost
(participants: men & sensitization affected areas
sensitized Risk: ERA’s limited experience on design & build projects
OUTPUTS

2.2: Afforestation
women)  Nil trees  1 mln trees planted (D&B)
2.3: PAP compensated /r resettled  No. of trees planted  All PAPS resettled Mitigation: D&B directorate established in 2010 to implement
 Execution of the ESMP and  No ESMP /compensated D&B. Also, capacity building component provided in the
RAP implemented  Regular monthly project
3. Improved ERA capacity  Monthly Site Progress  No regular meetings plus 200 Risk: Govt unable to make counterpart contributions.
meetings plus number of meetings (80% of ERA) Mitigation: Govt to show budget line every financial year
ERA Engineers trained. and no Engineers trained.
training.

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 COMPONENTS INPUTS
KEY ACTIVITIES
1. Construction of dual carriageway Costs - UA million : Costs - UA million (Cont.): Sources of financing (UA million)
1.1: Civil works Civil Works**** 159.85 Project cost 197.49 ADF Loan 84.08
1.2: Supervision services Supervision Services 5.58 Taxes 27.74 ADF Grant 1.63
1.3: Capacity building Audit consultancy service 0.27 Compensation of PAP 7.97 EDCF loan 66.72
1.4: Audit services Base Cost 165.70 Grand Total Cost 233.20 GOE 80.76
2. Implementation of ESMP Physical Contingencies 20.80 Total 233.20
2.1: Sensitization on social issues (gender/HIV, road safety)*** Price contingencies 9.02
2.2: Plant/care for 1 million trees Capacity building 1.63
2.3: Compensation and resettlement of PAPs Afforestation
0.33
NOTES: 1. *National economic projections up to 2015 based on the Growth & Transformation Plan of the Government of Ethiopia (2011-2015),
2. ** 47,500 vpd projected in 2038.
3. ***40% local jobs created, 30% for women; Nine communities, sensitized on road safety, gender, HIV/AIDS.
4. ****100,000 UA cost of sensitization included in the costs of works

v
 Project Timeframe: Modjo-Hawassa Highway Project (Phase I)

MODJO - HAWASSA HIGHWAY PROJECT YEAR 2013 2014

2015 2016 2017 2018 2019 2020 2021 2022
MONTH 7 8 9 10 11 12 1 2 3 4 5 6 7 8 9 10 11 12
PHASE I
Task Name Start Finish
Civil works and services procurement 1-Jul-13 15-Dec-14
Construction period (4 years) 1-Jan-15 31-Dec-18
Defects Liability/Warranty Period (1+3 yrs) 1-Jan-19 31-Dec-22
Bank Board approval of Project funding 6-Nov-13

DETAILS OF PROCUREMENT
Bank no-objection of Procurement document 1-Jul-13 31-Oct-13
Publication of Specific Procurement Notice 30-Nov-13

Prequalification 1-Nov-13 31-Jan-14

No-objection to Prequalification and Report 1-Feb-14 28-Feb-14

Bidding 15-Mar-14 15-Jul-14

Evaluation of Bids Report 1-Aug-14 30-Aug-14
No-objection of the Bank 1-Sep-14 30-Sep-14
Negotiation and award of Contracts 15-Oct-14 30-Oct-14
Preparation to start work

vi
 REPORT AND RECOMMENDATION OF THE MANAGEMENT
ON A PROPOSED LOAN TO ETHIOPIA FOR THE MODJO – HAWASSA HIGHWAY
PROJECT (PHASE I)
Management submits the following Report and Recommendation on a proposed ADF loan of
UA 84.08 million (UA 75.61 million from ADF-12 PBA and UA 8.74 million from loan
cancellations) to finance Ethiopia’s Modjo – Hawassa Highway Project (Phase I) consisting
of the section between Modjo and Zeway, and Grant amounting to UA 1.63 million (from
grant cancellations) to fund capacity building for Ethiopia Roads Authority.

I – STRATEGIC THRUST & RATIONALE

1.1. Project linkages with country strategy and objectives
1.1.1. The Road Sector Development Program (1997 - 2012)
The transport sector is critical to the economic and social development of Ethiopia and this
has been recognized in the current national development plan, namely the Growth and
Transformation Plan (GTP, 2011-15). Road transport is the dominant mode of transportation
in the country and accounts for more than 95% of freight and passenger movements.
By the end of 2012, Ethiopia had 63,000 km road network of roads. Although it has expanded
tremendously from 26,550km in 1997, this network is still limited and is hampering the
country’s development. It is for this reason that, since 1997, the government has been
implementing the Road Sector Development Program (RSDP) that has directed the sub sector
development since then, with considerable support from the development partners. The
objective of the RSDP is to expand the road transport infrastructure and improve the existing
network through upgrading and road maintenance as well as build domestic contracting
capacity.
The RSDP phases I, II and III from 1997 to 2010 were focused on expansion of the trunk
road network and is estimated to have cost USD 5.5 billion (2009, USD 1.0 = ETB 10.995).
The funds were used to construct over 23,450km of roads including 2,450 km of new and
upgraded asphalt roads. The Government was the highest contributor at 71%. The RSDP I-
III achieved most of its objectives.
The new RSDP IV (2011-15), which includes a major contribution to universal rural access,
is a 5 year USD 7 billion program, and the government plans to construct, amongst others,
over 15,000 km of trunk roads plus 70,000km of rural access / feeder roads which will
increase road density of classified road network from 44.4km/1000 sq.km to 124. Already,
13,000km of trunk and rural access roads have been constructed within 2011 and 2012. All
interventions in the road sub sector within the current GTP will be contribution to this
program and the Modjo – Meki -Zeway- Hawassa road project is the continuation of Bank’s
intervention in the RSDP program. An expanded review of the sector is included in Technical
Annex A.
1.1.2. Strategic link between the project and Ethiopia’s development objectives
The Modjo – Hawassa Highway Project is in line with Ethiopia’s 5 year development plan
(GTP, 2011-15) and the Bank’s Country Strategy Paper (CSP, 2011-2015), as well as the
Bank’s Long Term Strategy (LTS, 2013-2022). The GTP has seven pillars and key among
these are: (i) infrastructure development, (ii) agricultural development and (iii) creation of
favorable conditions for industrial development. The first pillar of the current CSP (2011-
2015) is enhancing access to infrastructure, including regional infrastructure. The
implementation of the project will contribute to the country’s development objectives by
1
improving the quality and quantity of infrastructure which will service the agricultural, trade
and industrial sectors.
1.1.3. Sector Challenges
The road subsector is experiencing challenges in terms of capacity of human capital and
financial resources. To implement the RSDP requires a lot of human capital and with
increased workload in the road subsector in the recent past, coupled with internal inability to
retain experienced engineers, there are indications that the road sector capacity to plan and
implement projects is strained. Experienced engineers have in the last 7 or so years been
leaving the public service to join the private sector organizations which offer better
employment terms, within and outside the country. The impact has been inadequate project
supervision and contract management at the level of executing agency, leading to delays in
completion of projects.
In response the government has provided for a massive training programme for transport
engineers and technicians in local universities and other tertiary institutions. However, it
takes about 3-5 years to produce a graduate and the intervening period is critical for the
delivery of the road sector program. In order to address the issue, the World Bank is
providing Ethiopia Roads Authority (ERA) with a USD 10 million capacity building
program. Furthermore, the government has recently acknowledged the need to ramp up the
employment terms of the institution. To augment these efforts and to ensure its successful
implement, this project provides a 4-year capacity building component in supervision of road
works and management of contracts and on-job and short-term training for ERA engineers.
The GTP, within which the road sector plans are embedded, is ambitious, requiring huge
financial resources. The Road sector Development Program (RSDP) started in 1997 is one of
the key program receiving the highest government funding. In the overall, out of ETB 108
billion expended in the last 15 years of the RSDP, the government has contributed 75%.
There are concerns about the sustainability of this levels of expenditure in the medium-to-
long term. However, and specifically, as far as the current project is concerned, the
government has shown capacity to fund major project and has demonstrated commitment to
implement the first phase of the project and the subsequent second phase.
In order to have a long term perspective on the transport sector and its challenges, the Bank,
working within the framework of Transport Sector Working Group (TSWG), the grouping of
all government and development partners working in the sector, is funding a transport sector
analytical work whose objective is to evaluate the sector performance, analyze the challenges
and design strategic response to the future sector needs.
1.2. Rationale for Bank’s involvement
The objective of the Bank’s Long Term Strategy (2013-22) is to support Africa’s efforts in
building integrated economy through investment in, amongst others, selected key regional
integration infrastructure that have impact on agricultural production and trade. Modjo-
Zeway-Hawassa project, being part of the Cape-to-Cairo road corridor, is aligned with above
strategy. The Bank is funding projects in Ethiopia, Kenya and Tanzania to close the missing-
links on this PIDA/NEPAD key route corridor. Furthermore, the project includes an
afforestation program which will promote good climate and, by its implementation using a
work-for-pay platform of grass-root organizations, the project will enhance inclusive growth
agenda at local level.
The RSDP IV is an ambitious program intended to enhance road transport service throughout
the country. While the government has mobilized its own resources (projected to cover about
75% of the cost), it is depending on the financial assistance from development partners to

2
close the 25% gap in funding. In this respect, the Bank, being the fourth largest development
partner in the sector and a leading financier of eastern Africa regional infrastructures, is well
positioned to continue making strategic contributions. This is particularly so in southern
Ethiopia where it has successfully funded other transport and energy projects.
1.3. Donor coordination
Aid coordination in the transport sector is carried out through the Transport Sector Working
Group (TSWG) of which the Bank is a member. The TSWG meets quarterly and is currently
co-chaired by the Ministry of Transport and the EU. The joint financing under the RSDP has
facilitated the complementarities of the development partners’ efforts and internal donor co-
ordination. The World Bank, EU, AfDB and China have contributed 86.5% of all donor
support over the last 15 years. A the end of 2012, the total donor support towards the road
sector stood at ETB 26.7 billion, making up 25% of all expenditure on the sector, which
amounts to ETB 108.5 billion. The World Bank is the largest donor, contributing 9.2% of the
total disbursements, followed by EU (6.2%), China (3.9%) and then the AfDB (2.0%)1. A
further analysis of donor interventions is given in Technical Annex A, para A4.
Table 1.1: Donor Coordination

Players - Public Annual Expenditure (15 year average) 1997-2012**

IDA 9.2%
Government Donors
EU 6.2%
ETB 5.453 billion ETB 1.780 billion China 3.9%
[75%] [25%] AfDB 2.0%
Japan 1.0%
(Total ETB 81.8 billion) (Total 26.7 billion)
Others 2.3%

Level of Donor Coordination

Existence of Thematic Working Groups [Yes]
Existence of SWAPs or Integrated Sector Approaches [Yes]
ADB's Involvement in donors coordination** [Member]

II – PROJECT DESCRIPTION

2.1. Sector Goal and Project Objective

The transport sector goal is to contribute to Ethiopia’s social and economic development and
poverty reduction efforts by providing an efficient and effective transport system whose
results include increased internal and regional trade and integration, improved agricultural
production and marketing, a better access to social and economic facilities, increased
economic exploitation of the natural resources, and an improved welfare of the people. The
project objective is to improve road transport connectivity between Modjo and Hawassa by
increasing the traffic-carrying capacity of the road. The outcomes include improved road
transport, reduced travel times and costs, afforestation, creation of inclusive green economy
at grass root, and improved road safety, gender and HIV/AIDS sensitization.

2.2. Project components

A. Construction of the road works

1
Source: Ethiopia: On-Going Efforts in Roads Development and Future Plans, Ethiopian Roads Authority (Feb,
2013)
3
 I. Modjo - Zeway section (93km)
The works component will include (i) detailed design and construction of 93 km of a new
asphalt paved 4-lane dual carriageway highway (2x2x3.65m wide carriageway with 2m wide
paved shoulders and 1.5 m median) between Modjo, Meki and Zeway, including link roads to
three main towns, and (ii) Implementation of ESMP (road safety, gender sanitization and
HIV/AIDS awareness).
II. Supervision Consultancy Services
Consultancy services for the supervision of roads work will include reviewing and approving
detailed engineering design, administering the works contract, quality and quantity control of
all works, including the control and monitoring of the day to day activities of the contractor,
reporting to the EA on all matters of project progress, advising EA on payment, claims and
all matters pertaining to technical and financial aspects of the contract, amongst others. The
services will include the supervision of the full implementation of the ESMP and
compensation/resettlement of PAPs. The consultant will also collect designated baseline and
first year impact data.
III. Capacity building of the Executing Agency
This component will include consultancy services to enhance capacity of ERA in form of 2
individual consultant engineers who will support ERA by coordinating the implementation of
this and all other Bank funded transport projects. The consultants will ensure that the
contractual monthly progress meetings between the contractor, supervision consultant and
ERA are held regularly. In addition, 200 ERA engineers (making up about 80% of the
engineering staff) will receive further short-term and on-the-job training in project related
skills, including skills transfer from the 2 individual consultants.
IV. Project audit consultancy services
Consultancy services for audit will include annual independent audit of the financial and
technical aspects of the project implementation.
B. Implementation of the Environmental and Social Management Plan
I. Afforestation program will consist of production, planting and caring for one million
trees along the road reserve. The work will be implemented by specialist organizations.
II. Sensitization on social issues includes consultancy services for Road Safety campaign,
HIV/AIDS awareness and gender sensitization. The cost is included in the works.
III. Compensation and Resettlement of PAP includes the implementation of the
Resettlement Action Plan and compensation of project affected persons.

Table 2.1 : Project components for Modjo-Hawassa Highway Project (Phase I)

Sub- Est. cost Sub-Component description
Component UA
million
A.I Modjo- Zeway 188.61  Construct new 93 km of 4-lane dual carriageway road to
road works asphalt concrete surface standard.
 Implementation of the ESMP
A.II Supervision 6.59  Supervise the works contractors and execution of ESMP
Consultancy  Review and approve detailed design
Services  Advice the EA on quality, quantity and cost of works
 Collect baseline data and first year impact data
A.III Capacity 1.63  2 individual consultant engineers to coordinate project.
building  Provide further training to ERA counterpart engineers
A. IV Audit 0.32  Financial and technical audit during implementation
B.I Afforestation 0.33  Plant 1,000,000 trees on road corridor

4
B.II Sensitization (0.10)*  Awareness on road safety, gender, HIV/AIDS etc
B.III Compensation 7.97  Identify the PAPs in the ROW
of PAP  Assess assets, compensate and / or resettle the PAPs
* Sensitization costs included in A.1 (works)
NB: 1. Figures include contingencies. 2. Costs of taxes estimated at UA 27.73 million not included.

2.3 Technical solution retained and other alternatives explored

Alternative considered: Three alternatives were considered: (a) a new tolled 6-lane
expressway with split-level interchanges, (b) upgrading the existing 2-lane single
carriageway to 4-lane dual carriageway (c) constructing a new 4 lane dual carriageway
highway. Option (a) was expensive and uneconomic. Option (b) would disrupt too many
people settled along the road and it did not provide the desired unrestricted flow of traffic.
Solutions: On the basis of economic, environmental and social evaluation, option (c) was
found viable and affordable. The new alignment is through virgin land and this affords the
opportunity to plant 1 million trees on the road reserve, enhancing the aesthetics as well as
increasing forest cover. The afforestation program will initiate a socially inclusive grass-root
economy. The engineering design considered total life cycle costs and provides a pavement
which will require limited maintenance. The main structural elements include 50mm thick
asphalt concrete sitting on 100mm layer of dense bitumen macadam and 150 - 300 mm of
graded crushed stone base. This structural design is in conformity with the national and
international standards and is similar to the on-going Addis Ababa–Modjo-Adama
expressway project.
2.4. Project type
The Modjo – Hawassa Highway Project (Phase I) is designed as a standalone operation to be
parallel co-financed with Korea Exim Bank. The project is within multi-donor supported
activities whose objective is to connect Ethiopia with Kenya as well as improve the local road
network. In addition, this project is within the broad five-year RSDP-IV (2011-15) program
which the government anticipates scaled up support from DPs. All other DPs are using stand-
alone operations in the transport sector. The exception here is the European Union which is
using sector budget support mechanism. In order to move towards full sector budget support,
the Bank is planning to undertake a broad audit of the country’s experience and readiness for
efficient use of sector wide support.
2.5. Project cost and financing arrangements
2.5.1 Project Costs
As shown on Table 2.2 below, the cost of the Modjo - Hawassa Highway Project (Phase I) is
UA 233.20 million, including road works, consultancy services, capacity building,
afforestation, local taxes and implementation of ESMP. The project is divided into two lots.
Table 2.2: Project cost estimates by component [amounts in UA million]
Component FC costs LC costs Total Cost
Construction works for 93km 111.90 47.96 159.85
Supervision services 5.58 - 5.58
Audit consultancy services 0.27 - 0.27
Base Cost 117.75 47.96 165.70
Physical contingency 11.96 5.13 17.09
Financial contingency 8.91 3.82 12.73
Capacity building 1.63 - 1.63
Afforestation - 0.33 0.33
Project Cost 140.25 57.24 197.49

5
 RAP - 7.97 7.97
Local Taxes - 27.67 27.67
EDCF service charge 0.07 - 0.07

Table 2.3: Costs estimates by component and by section

Lot 1 : Modjo – Lot 2: Meki – Lt 1&2: Modjo-
Meki section Zeway section Zeway Highway
Component USD UA USD UA USD UA
Construction works 160.10 106.82 79.48 53.03 239.58 159.85
Supervision services 3.60 2.40 4.77 3.18 8.37 5.58
Audit consult services 0.40 0.27 - 0.40 0.27
Base Cost 164.10 109.49 84.25 56.21 248.35 165.70
Physical contingency 16.41 10.95 9.21 6.14 25.62 17.09
Financial contingency 12.64 8.43 6.44 4.30 19.08 12.73
Capacity building 2.44 1.63 - - 2.44 1.63
Afforestation 0.50 0.33 - - 0.50 0.33
Project Cost 196.09 130.83 99.90 66.65 295.99 197.49
RAP 6.85 4.57 5.10 3.40 11.95 7.97
Local Taxes 24.62 16.42 16.85 11.24 41.47 27.67
EDCF service charge - - 0.10 0.07 0.10 0.07
Grand Project Cost 227.56 151.83 121.95 81.37 349.51 233.20
Grand Project Cost 140.32 92.88 233.20
Foreign exchange (7/06/2013): UA 1 = ETB 27.9102, USD 1= ETB 18.6221, UA 1 = USD 1.49877

The cost of Lot 1: Modjo-Meki Section (56 km) is UA 151.83 million and the costs of Lot 2:
Meki – Zeway section (37km) is UA 81.37 million; See Table 2.3 below:

The project costs are based on engineering design done by a consulting firm using funds
provided by the government. At the time of appraisal, the cost estimates were found to
compare well with the current market rates of similar standard of road cost.

Table 2.4: Project cost by category of expenditure [amounts in million UA equivalents]

Lot 1 & Lot 2:Modjo - Zeway
Category FC LC Total % of FC
A. Works 111.90 47.96 159.85 70%
B. Services 5.85 - 5.85 100%
Base cost 117.75 47.96 165.70 71%
Financial contingencies 11.96 5.13 17.09 70%
Physical contingencies 8.91 3.82 12.73 70%
C. Capacity building 1.63 - 1.63 100%
D. Afforestation - 0.33 0.33 0%
Project cost 140.25 57.24 197.49 71%
E. RAP - 7.97 7.97 0%
F. Taxes / EDCF service charge 0.07 27.67 27.73 0%
Grand Project Cost 140.32 92.88 233.20 61.0%

Tables in Technical Annex B.4 provides further details on costs.

2.5.2 Sources of finance
It is proposed that the Bank provide an ADF loan amounting to UA 84.08 million (USD
126.02 million) to fund part of the construction costs of Lot 1: Modjo-Meki section (56 km)
6
and an ADF grant of UA 1.63 million (USD 2.44 million) to fund capacity building of ERA.
The government will contribute the balance of UA 66.12 million (USD 99.10 million) to fund
part of costs, local taxes and compensation / resettlement costs. See Table 2.5 below.
The proposed Korea Exim Bank (EDCF) loan of UA 66.72 million (USD 100 million) and
government contribution of UA 14.65 million will fund the construction of Lot 2: Meki –
Zeway section (37km).
Table 2.5: Sources of financing [amounts in UA million]
Source of Funding FC costs LC costs Total costs Percent
ADF Loan / Lot 1 84.08 - 84.08 36%
ADF Grant / Capacity Building 1.63 - 1.63 1%
EDCF Loan / Lot 2 47.68 19.04 66.72 29%
GOE / Lot 1 6.93 59.19 66.12 28%
GoE / Lot 2 - 14.65 14.65 6%
140.32 92.88 233.20 100%

Table 2.6: Expenditure schedule by component for Lot 1: Modjo – Meki section [amounts in
million UA equivalents]
Annual Disbursements in UA Millions
Year of implementation 2015 2016 2017 2018 2019 Total
Works 25.21 12.61 37.82 37.82 12.61 126.06

Services 0.95 0.48 1.43 1.43 0.48 4.77

Project Cost 26.17 13.08 39.25 39.25 13.08 130.83
NB: The figures exclude costs of compensation and taxes.

2.6. Project’s target area and population

The project highway is located in the Eastern Shewa Zone of Oromiya Region and traverses
2-5 km away from and parallel to the existing road. The population in affected woredas is
483,000 (49% women) out of which the majority (292,000 of which 48% are women) reside
in the rural areas. More than 60% of the population is made up of those below the age of 24.
The direct project beneficiaries will include international and regional traders, transporters,
farmers and those in the agro-business who will benefit from an improved road connection to
Addis Ababa and the resultant reduction in travel time and costs. The communities along the
existing road will benefit from increased forest cover, reduced noise, air pollution and road
accidents because major heavy traffic will use new road. Most of the micro businesses are
run by women and as such will benefit from increased trade due access to larger markets.

2.7. Participatory process for project identification, design, implementation

The project is part of the Mombasa-Nairobi-Addis Ababa road which was identified by the
two countries as a priority project for funding. In addition to consultation conducted at
national level, local stakeholders in the four woredas traversed by the road were consulted
during the preparation of the ESIA and RAP through PAP group discussions, town hall and
office meetings. Stakeholders included municipalities, federal and regional government
officials, women and youth associations, religious leaders, business people and the Project
Affected People (PAP). During Bank preparation missions in February 2013, further half day
public consultations were conducted in three towns within the project route. Key issues raised
during all the consultations included eligibility criteria for compensation; confirmation of
available land for the displaced persons; and roles of stakeholders in the implementation and
monitoring of the RAP. The concerns, experiences and recommendations of stakeholders
7
regarding the various environmental and social issues have been integrated into the project
design. A summary of issues and recommendations has been provided in Technical Annex B
paras B.2 and B.3. Environmental stakeholders will be involved in the monitoring of the
ESMP implementation and PAPs, will take part through Resettlement Committees. Local
youth groups through environmental clubs will be involved in the afforestation component.

2.8. Bank Group experience, lessons reflected in project design

2.8.1 Bank Activities: Since 2001, the Bank has approved six loans and two grant towards
the road transport sector amounting to UA 360 million (15% from the Regional Resources) to
fund the rehabilitation of 1,200 km of roads in Ethiopia. Out of this, 550km are complete
including 190 km Butajira-Hossana-Sodo road (PCR done) and 175 km Wacha-Maji road
(PCR ongoing). Brief description of the performance of these projects is given in Technical
Annex B para B.1. Some of these older projects have experienced delays at effectiveness,
commencement of works and during implementation. Based on recommendations of the
Country Portfolio Performance Review (CPPR), including intense dialogue with government,
measures were taken in the design Bedele-Metu road and Mombasa-Nairobi-Addis Ababa
phase III projects, both approved 2011 and no such delays occurred in these 2 projects -
works have commenced 14 months since approval of the loans.
2.8.2 Lessons learnt from ongoing / completed projects and from CPPR have been applied
in design of 93km Modjo – Zeway road project and include: (a) to avoid delays in project
start up, design-and-build concepts should be adopted which saves 2-3 years of project up
stream activities. Modjo – Zeway – Hawassa is a design-and build project. (b) Use of
advanced contracting procurement procedures that saves up to 1 year in procurement. The
Bank has approved government request to use this procedure. (c) Delays at project
effectiveness have been reduced by early engagement of the authorities in charge of ratifying
the loan and application of Readiness Filter which tracks project preparedness.
2.9. Key performance indicators
The key performance indicators are shown in the results-based logframe and for purposes of
measuring the outputs and outcomes, they include (i) number of motorized traffic (ii)
Composite Vehicle Operating Costs (iii) Travel time and average vehicle speeds and (iv)
capacity of ERA. Road accidents data will be developed and used. These indicators are part
of an elaborate system developed by the government to measure the performance of the road
sector, particularly the sub sectors contribution to achieving MDGs as captured in the GTP.
The performance evaluation mechanisms include Transport Poverty Observatory study which
is ongoing and which is evaluating the social, economic and environmental impact of road
transport investments on four corridors, to establish the relationship between transport
investment and poverty alleviation.

III – PROJECT FEASIBILITY

3.1 Economic and Financial Performance

3.1.1. The methodology for the economic analysis is based on cost benefit analysis which
compares the “with” and “without project” scenarios over a period of 20 years, using the
Highway Development and Management Model (HDM-4). The economic costs consist of the
capital investment and routine and periodic maintenance costs. The road has an estimated
annual average daily traffic (AADT) of 3,610 vehicles; the traffic projection is discussed in
Technical Annex B para B2. As a result of the new dual carriageway, the road user benefits
consist of savings in vehicle operating costs, travel time for passengers and cargo, reduced
accidents and road maintenance costs. The measures of project worth used are the EIRR and
8
NPV at 10.23% discount rate, which is the opportunity cost of capital in Ethiopia.

3.1.2. Assumptions taken and the Economic Analysis Results: The project construction is
assumed to commence in January 2015. With a construction period of 48 months, the first
year of opening the road to traffic will be 2019 and the analysis period goes up to 2038. The
maintenance strategies that have been considered in the analysis are (a) the “without project”
do minimum, and (b) “with-project” improved road. Residual values are assumed as 20 % of
the initial capital investment and credited to the project in the final evaluation year of 2038.
The economic costs taken into account are the road agency costs in the “with” and “without”
project scenarios, which include both the maintenance and the investment cost of building the
new 4-lane 93km long dual carriage. The economic capital investment cost of the road is
ETB 5,602 million (ETB 60.2 million per 4-lane km). The wide socio-economic impacts
linked to free access of the new highway, while significant, have not been computed in order
to maintain conservative assumptions for the appraisal. The summary of the economic
analysis result is presented in Table 3.1. The detail economic analysis results are presented
Technical Annex B para B.2.
Table 3.1 : Summary of the Economic Analysis
Parameter Quantum
FIRR, NPV (base case) (Not Applicable)
Economic Internal Rate of Return(EIRR) 25.7 %
Net Present Value (NPV) in ETB ETB 5,269 million
Sensitivity of EIRR of concurrently 20% increase in cost and 20% decrease in 16.4%
traffic

3.2. Environmental and Social impacts

The project is classified as Category 1 in accordance with the Bank’s Environmental and Social
Assessment Procedures (ESAP) since it exceeds the threshold of 50km and will lead to
displacement of more than 200 persons. Accordingly a full ESIA was carried out in view of the
requirements of the Bank’s ESAP. In addition an ESMP and the RAP have been developed. The
ESIA and RAP summary were posted on the Bank website and distributed to the Board under
Ref. ADF/BD/IF/2013/118 according to the Bank’s disclosure requirements.
3.2.1 Environment: The major adverse environmental impacts anticipated stem from
opening and construction of a new road carriageway. The impacts include: (i) Permanent loss of
productive agricultural land; (ii) Soil compaction/ impairment due to use of access and detour
roads, operation of equipment in adjacent farmlands resulting in temporary reduction of
agricultural outputs; (iii) Soil erosion and land degradation especially in rugged terrain due to cut
and fill, quarry and construction material sourcing; (iv) Clearance of vegetation that include
woodland and scattered trees.
Other impacts include: dust, noise and emissions / oil pollution from construction equipment.
The social impacts include: (i) relocation of houses; (ii) relocation of utilities; (iii) demolition of
fences; and (iv) felling of community owned trees. Adequate measures for mitigating the
negative impacts have been identified and have been described in the ESMP.
The environmental mitigation measures proposed include: (i) rehabilitation and landscaping of
disturbed grounds; (ii) replacement of trees cut and by planting one million trees; (iii)
compensation packages for project affected persons; (iv) inclusion of the necessary
environmental and social clauses in the project tender & construction contract document so as to
ensure the implementation of the ESMP; (vii) ensure independent environmental supervision
during construction phase. The total ESMP implementation cost is ETB 29.49 m (USD 1.6m).

9
The positive impacts expected from this project include: (i) provision of a faster corridor of
travel leading to a reduction in travel time, reduced risks of accidents and reduced cost of
transport; (ii) Significant improvement to local, regional and national economy; (iii) Reduction
in air pollution from traffic congestion; (iii) Creation of employment opportunities, especially
during the project construction phase; (iv) improved environment due to increased forestation.
3.2.2 Climate Change: The climate change projection for Ethiopia reveals that the mean
annual temperature will increase in the range of 0.9 – 1.1oC by 2030; in the range of 1.7 – 2.1oC
by 2050 and in the range of 2.7oC – 3.4oC by 2080 compared to the 1961 – 1990 temperatures.
The projection indicates that an increase in annual precipitation will also be expected. In this
context, impacts and hazards related to climate change have manifested in Ethiopia through
flooding, heavy rains, strong winds, and high temperature. The engineering design has provided
for a climate resilient project. The road corridor passes through a rolling-to-flat terrain prone to
flash floods and its soil structure is loose loamy type which loses its load carrying capacity when
saturated with water. In this respect, the road pavement is to be built on a high embankment to
protect the expensive road structure from damage as well as to ensure passage of traffic all the
time. Furthermore, numerous culverts have been provided for drainage of surface runoff to
protect the embankment from damming effect. The embankment will be covered by indigenous
grass in order to prevent soil erosion. The road corridor immediately beyond the road prism will
be planted with approximately one million trees to provide stability to the road structure and
prevent soil erosion in the micro-catchment. The tree planting program is expected to contribute
to the regional and national effort of combating global warming and climate change as the
planted trees will serve as CO2 sink.
3.2.3 Gender: The project will benefit both men and women during implementation and
operation through direct employment and enhanced economic activities due to an improved
road transport system. The project will mainstream gender and ensure equal opportunities
between men and women in planning, implementation and the enjoyment of benefits. As a
mechanism of gender mainstreaming, ERA will ensure that more women are employed in the
works and services. ERA will monitor the effectiveness of this initiative through regular
quarterly reports to the Bank. As part of women’s economic empowerment, the project has a
quota of at least 30% of semi-skilled and non-skilled jobs to be filled by women. Effort will
also be made to have 30% women representation in the community and wereda RAP
Committees. It is expected that increased demand for services including accommodation,
food-stalls and cleaning at the site camp will economically benefit women. The project will
provide adequate accommodation including ablution facilities for female and male workers at
the camp. Female headed households among the project affected communities are identified
as vulnerable due to the disproportionate impact of involuntary resettlement on them and as
such will be provided with special support in the compensation and resettlement process. The
presence of construction workers earning above average incomes and often coming without
their families may contribute to the spread of HIV/AIDS/STI, whose impact is higher on
women than men. Thus, the project will provide HIV/AIDS/STI prevention and awareness
campaigns and activities targeted at women and girls.
3.2.4 Social: The road project will bring wealth and improve household incomes of local
communities during both implementation and operation. The project construction is estimated
to take about 4 years and approximately 1000 jobs will be created during implementation.
Equal opportunities for men and women from local communities and the extra income from
the job opportunities will decrease the vulnerability of the PAPs in particular female headed
households. Above all the project road once completed will facilitate faster movement of
agricultural produce especially cut-flowers and horticultural produce which are grown in the
area to markets. Reduced travel-time will in turn encourage farmers to grow more with better

10
quality. The project will improve access to health and education facilitates as well as increase
business opportunities to micro enterprises. The project road will also improve the wellbeing
of the populations living in the area through improved road safety measures that have been
incorporated in the project design; created parking bays; separated motorized and non-
motorized traffic by providing 2 m of sealed shoulders on either side and road safety
campaigns. The design has also included the construction of 16 underpasses which will
ensure safe passage for pedestrians and livestock.
Among the adverse social impacts of the project will be the land take and disruption to
livelihoods of affected persons and to utilities. The RAP will be implemented in accordance
with the Bank policy to offset these impacts. Another social concern is associated with the
potential increase in communicable diseases such as the increased exposure to HIV/AIDS
resulting from the influx of large number of mobile workers. The area has a relatively low
HIV/AIDS prevalence rate of 1% and hence must be protected and improved to even lower
rate. The project includes a comprehensive HIV/AIDS prevention program, coordinated with
local government and NGOs, targeting both workers and communities.
Specific baseline data (with gender disaggregation) will be collected at the commencement of
the project to enable ERA track the implementation and impact of the new road, and be able
to make certain midstream adjustments to the project, if necessary. Data will include
transport costs and travel time, accident data, agricultural activities, jobs created by project,
gender awareness levels and HIV/AIDS prevalence and access to social services.
3.2.5 Involuntary resettlement: The project road is on a new route and entails acquisition of
land for the right of way, and for access to and excavation of construction materials. These
activities will result in involuntary resettlement of people, destruction of assets and disruption
to utilities. Approximately 16,280 people will be affected in the process, out of which 51.3%
are male. In response, a full Resettlement Action Plan (RAP) has been prepared and a
provision has been made to cover the full cost of RAP estimated at USD 11.95 million. The
implementation of the RAP shall provide special attention to the vulnerable groups that
include the elderly, female and child headed households and the people with disability.

IV – IMPLEMENTATION

4.1. Implementation arrangements

4.1.1 Project oversight: The Executing Agency will be the Ethiopian Roads Authority
(ERA). ERA is an autonomous government agency responsible for the planning and
implementation of all trunk road projects in the country. ERA has a long history of successful
implementation of donor funded road project and is capable of managing the implementation
of all aspects of this project. Within the past 15 years, ERA has successfully planned,
executed and monitored USD 5.5 billion RSDP phases I, II and III that have provided the
institution with considerable wealth of experience, not to mention the various institutional
capacity building programs that were implemented. ERA recently in 2010 implemented a
Business Process Re-Engineering (BPR) and has decentralized its operations in order to
increase its efficiency of delivering the latest RSDP IV program. ERA has also separated the
operations department that undertakes actual road maintenance and construction which has
been reformed into a government –owned enterprise. Implementation of the ESMP will be
the responsibility of the Contractor while that of implementing the RAP will be ERA’s Right
of Way Branch. The rest of the organization will play management and oversight roles only.
The new ERA has a compliment of 250 engineers in charge of regulating, supervising and
directing the road sub sector, and additional support staff looking after human resources and
finance issues.
11
4.1.2 Capacity building of ERA: this project provides a capacity building component
through which 2 individual consultant engineers with experience in supervision of design &
build road works and management of contracts will be hired as Project Coordinators to
coordinate the implementation activities in the field, acting as liaison between the supervision
consultants and the ERA project engineers. Furthermore, the capacity building program will
include on-the-job and short-term training for ERA engineers.
4.1.3 Project Procurement: All procurement of works and acquisition of consulting services
financed by the Bank will be in accordance with the Bank's Rules and Procedures for
Procurement of Goods and Works, May 2008 revised July 2012 edition or, as appropriate,
Rules and Procedures for the Use of Consultants, May 2008 revised July 2012 edition and
the provisions stipulated in the Financing Agreement, using the relevant Bank Standard
Bidding or Request for Proposal Documents. ERA will be responsible for the procurement.
The capacity of procurement directorate at ERA was assessed and found adequate to carry
out procurement. Details of the procurement arrangements are summarized in Technical
Annex CI.
4.1.4 Project Disbursement: The loan and grant will be disbursed in line with the
Disbursement Rules and Procedures of the Bank and as stipulated in the Disbursement
Handbook. The project may use any of the four disbursement methods of the Bank.
However, the direct payment method will be used for disbursement covering civil works and
payment to the supervising consultant. Capacity building services will be paid through the
special account. The Bank will issue a disbursement letter to specify and highlight the
disbursement arrangements for the loan and the grant

4.1.5 Financial management and External Audit Arrangements

a-The Financial Management System of Ethiopian Roads Authority (ERA) is adequate and
capable of recording accurate and complete transactions and delivering financial reports
timely. The Authority uses an automated financial reporting system, ACCPAC, which is
specifically designed to meet the needs of its operations. ERA has adequate and qualified
staff to carry out the financial management responsibilities of the Project. In line with the
Paris Declaration on Aid Effectiveness and Accra Agenda for Action, the Project will make
use of the Country Financial Management Systems. The day-to-day management will be as
per the financial management policies and systems of the Authority, as has been the case for
previous projects implemented by ERA and financed by the Bank. The Authority will set up
new account codes to record and report the financial transactions of the Project within its
accounting system. Bank financed projects executed by ERA so far had demonstrated timely
preparation of financial statements with annual audit reports submitted to the Bank within the
expected period of time. The Authority has a well-functioning Internal Audit Directorate that
reports directly to the Director General of the Authority. This Directorate has been further
strengthened with employment of some 8 additional staff members since 2010. The Internal
audit Directorate will also cover the project in addition to the entity auditing the project.
b-ERA will designate an accountant specifically to handle project financial transactions of
the Project. The accountant will continue to work within ERA Finance Directorate and will
functionally report to the Finance Director. The project financial statements will be audited
by a competent firm of auditors appointed by the Federal Auditor General and agreed with
the Bank based on the Bank’s audit terms of reference. The audit report complete with a
management letter will be submitted to the Bank within six months of the end of the ERA
fiscal year. The FM assessment concludes that the Financial Management risk rating for the
project is moderate. Further, the proposed financial management arrangements put in place
12
meet the Bank’s minimum requirements as per its project financial management policies and
guidelines and therefore adequate to provide, with reasonable assurance, accurate and timely
information on the status of the project required by ADF. For the detailed FM assessment
refer to Technical Annex C2.
4.2. Monitoring
4.2.1. The supervision consultant will be responsible for the day-to-day monitoring and
evaluation of the project progress including the implementation of permanent and temporary
works. The contractor and supervisor will have qualified environmental and social experts to
ensure full implementation of ESMP. In addition, ERA and the Bank will provide oversight at
several layers. ERA’s project manager, an individual to be nominated by the ERA on the
basis of wealth of experience and backed by the project coordinators (part of the capacity
building component), will provide the second layer oversight, linking the project with the
government and the Bank. Monitoring of the ESMP and RAP implementation will be carried
out by an independent consulting firm hired by ERA; ERA’s Environmental and Social
Management Team and selectively, Environmental Protection Agency (EPA). The project
coordinator and project manager will make frequent visits to the site of works to consult with
the contractor and consultant and issue guidance wherever necessary.
4.2.2. To make monitoring and evaluation more effective and efficient, the individual
consultant engineers will spend most of the time in the field coordinating and ensuring
quality work is done. The t coordinators will perform bi-annual technical audit of the
performance of the contractor, supervisor and the EA with a view to identifying any
bottlenecks and providing necessary guidance. The Bank will monitor the project through
semi-annual supervision missions. In addition, ERA will provide the Bank with quarterly
project progress reports including the implementation of the environmental and social action
plan in accordance with Bank format. At about 85% completion of project, the Bank will
organize a joint Project Completion Reporting. This being a design-and build project, the
contractor will provide performance guarantee covering the period of construction plus one
year during the Defects Liability Period (DLP). Since this is a design and build project, as a
risk mitigation measure, an additional 3-year warranty will be required beyond the DLP,
during which period the engineering performance of the highway will be monitored

Table 4.1 : Implementation Monitoring Timeframe

Timeframe Milestone Monitoring process / feedback loop
Q1 - 2014 Project Launching Supervision and Progress Report
Q4 - 2014 Procurement of Civil Works Completed Procurement Plan/Progress Report
Q2 - 2017 50% of Civil Works completed mid-term review Midterm Review & Progress Report
Q4– 2018 Substantial completion of civil works Supervision and Progress Report
Bank’s Project Completion Report
Q4 – 2019 End of Defects Liability period (1 year) Supervision and Progress Report
Q4 – 2022 End of warranty period (3 years) ERA’s Project Completion Report

4.3. Governance
Ethiopia has greatly improved its governance structures and is a considered a low risk
environment. However, to ensure that the project funds are safe, the project has included in
its design specific governance risk mitigation measures such as (i) the appointment of
external and independent financial / technical audit firm to ensure that funds are used
efficiently and for the intended purposes; and (ii) Bank’s prior review and approval of all
project procurement activities.

13
4.4. Sustainability
4.4.1 Project sustainability will depend on the quality of works executed. It will also largely
depend on the Governments’ capacity to plan, finance and carry out routine and periodic
maintenances on a timely basis. Furthermore, it will also depend on the implementation of
effective axle-load-control programs to prevent overloaded trucks from using the road assets.
The road maintenance is done based on plans under the Road Sector Development Program
(RSDP), implemented by ERA. To strengthen the maintenance planning capacity, the on-
going Bank funded phase III of Mombasa–Nairobi-Addis Ababa road corridor project
includes consultancy services in asset management. The consultant will diagnose the current
maintenance programming of ERA and assistance in the preparation of annual and five year
maintenance plan, review road network stock and determine its value, propose improvement
to existing, and/or design new maintenance planning approach.
4.3.2 Detailed maintenance strategies have been devised for the project and have been
incorporated into the HDM model. For the options “with project”, two strategies have been
defined. The first one is applicable to the period before the project is completed (years 2014-
2018), whereas the second one is applied after completion of works. This strategy aims at
conserving the asset value of the project road after rehabilitation.
The recurrent costs after project completion include the routine maintenance expenditure of
the road undertaken annually and the periodic maintenance. Those are based on programmed
interventions as responsive to a set of technical criterions aimed at maintaining the wearing
course in acceptable condition. For the new Modjo – Hawassa road savings in road
maintenance expenditures are estimated at USD 59 million.
4.4.3 In Ethiopia, the resources for road maintenance are administered through the Ethiopian
Road Fund (ERF). Its revenues consist of fuel levies, transit fees and interest income. Those
resources at the starting year of the Road Fund, i.e. 1997-98, were ETB 0.33 billion and has
increased to ETB 1.29 billion in 2011-12, which is 94% of routine maintenance needs.
Considering the expected increase in the road network, ERF has identified annual vehicle
license fees, mass distance charges, heavy vehicle charges, overloading fines and road tolls as
potential sources. Ethiopia is also implementing policy measures with respect to axle- load-
control on their respective road networks with technical assistance funded by Development
Partners. These measures include the introduction of improved axle configurations, the
construction of additional weighbridge stations, and more efficient enforcement. ERA is
enforcing axle load control using twelve stationary and three mobile weighbridges.
4.5. Risk management
The major risks and mitigation measures are described below.
4.5.1. Negative social impact on the local population include road accidents, HIV/AIDS.
The concentration of male construction workers in the project area for up to 5 years during
the project construction may increase incidences of sexually transmitted diseases. In
mitigation, the project has provided for sensitization against these negative social behaviors
including HIV/AIDS awareness.
4.5.2. Project Design risks include possible negative impacts on the environment, delays in
implementation and costs increases due poor engineering and project design. In mitigation
the engineering design has taken due consideration of flat/rolling terrain with loose top soil
prone to erosion in case of flash floods. The design has provided sufficient drainage facilities
and raised the level of road embankment all throughout the alignment. Furthermore, the
afforestation component will improve climate and reduce soil degradation by increasing
forest cover. In order to avoid delays due to protracted procurement, ERA is using advanced

14
contracting procedures and has also applied the design-and-build concept in project delivery.
This will eventually save up to 2-3 years in between project conception and completion.
4.5.3. Implementation risks include risks due to RAP and management of the construction
works. The design & build concept requires that compensation be done after the contractor
has started preparatory work but before any construction works can start. Delays in RAP
could slow down progress of project implementation, risking cost increases. In mitigation the
government has already started preparations to compensate PAPs. Additionally, the
implementation of RAP is one of the Other Loan Conditions. ERA has limited experience in
design/build projects. In mitigation, ERA in March 2010 established the Design and Build
Directorate to learn and implement these kinds of projects. In addition, a capacity building
component is provided consisting of 2 experienced individual consultants who will assist in
project management and further short-term and on-the-job training of ERA engineers.
Furthermore, the supervision consultant will have specific skills in design & build projects.
The contractor will also be required to provide a warranty to cover for the project engineering
performance for 3 years beyond project defects liability period.
4.5.4. Government counterpart funds: Although the government is committed to
implement this project and the rest of RSDP, the counterpart funds are considerable (UA 80
m, about 34% of project cost) and the government could face delays in meeting their
obligations. In mitigation, the government has undertaken to report at start of every fiscal
year during project implementation that required counterpart funds have been set aside.
4.6. Knowledge building
This will be the first design & build project the Bank has implemented in Ethiopia and
therefore knowledge gained will be useful in improving design and implementation of similar
future projects. Project coordinator will perform technical audit functions that will form basis
for building a reliable source of knowledge to be applied in subsequent projects. The
supervision consultant will collect additional baseline and monitoring data during project
implementation which will be used to evaluate the performance of the project and analyzed to
improve future projects. The data will become part of the national M&E system that ERA has
developed over the years to track the impact of road development in alleviating poverty and
its contribution to the attainment of MDGs. Furthermore, as recommended in the CSP, the
Bank is undertaking a transport ESW to analyze all the issues pertaining to the sector,
focusing on the future transport needs in view of the RSDP IV and the GTP. The outputs of
the study, to be shared amongst all stakeholders, will contribute to knowledge and will be
used in the development of future projects.

V – LEGAL INSTRUMENTS AND AUTHORITY

5.1. Legal instrument

The Bank instrument to finance this operation is an ADF loan amounting to UA 84.08 million
(UA 75.61 million from ADF XII PBA and UA 8.74 million from loan cancellations) and an
ADF grant amounting to UA 1.63 million from grant cancellations.

5.2. Conditions associated with Bank’s intervention

A: Conditions Precedent to the Entry into Force of the Loan and Grant Agreements:
i. The entry into force of the Loan Agreement shall be subject to the fulfillment by the
Borrower of the provisions of Section 12.01 of the General Conditions Applicable to
Loan Agreements and Guarantee Agreements of the Fund.

15
 ii. The entry into Force of the Protocol for Grant Agreement shall be subject to the
fulfillment by the Recipient of the provisions of Section 10.01 of the General
conditions Applicable to Protocol of Agreements for Grants of the African
Development Fund.
B: Conditions Precedent to First Disbursements of the Loan/ Grant: The obligation of
the Fund to make the first disbursements of the Loan/Grant shall be conditional upon the
entry into force of the Loan/Grant Agreement, and submission by the Borrower/ Recipient of
evidence, in form and substance satisfactory to the Fund, of the fulfillment of the following
conditions:

1. Loan Agreement: The Borrower shall have:

i. Procured and signed a contract with a works contractor, upon terms acceptable to the
Fund, to undertake the civil works. The procurement of the works contract will be
subject to prior review by the Fund; and
ii. Secured financing from Korea Exim Bank, for the parallel financing of the Project.

2. Grant Agreement: The Recipient shall have:

i. Opened a Special Account in a bank acceptable to the Fund for the deposit of part of
the proceeds of the Grant to finance eligible expenses for the capacity building for the
Ethiopian Roads Authority; and
ii. Secured financing from Korea Exim Bank, for the parallel financing of the Project.

C: Other Conditions for the Loan and Grant Agreements: The Borrower/ Recipient shall
have:
i. Developed and submitted to the Fund a Resettlement Action Plan (the, “RAP”)
together with a Works and Compensation Schedule detailing, inter alia, (i) the
sections into which each lot of the civil works will be divided; and (ii) a timeframe for
the compensation of the Project Affected Persons with respect to all such sections;
and
ii. Prior to commencement of construction on any section of civil works, all Project
Affected Persons have been compensated and/or resettled with respect to the relevant
section in accordance with the RAP and any updates to the RAP, as well as the Works
and Compensation Schedule.
D: Undertakings for the Loan and Grant Agreements: The Borrower/ Recipient
undertakes to:
i. Implement and report on the implementation of the Environmental and Social Impact
Assessment, the Environment and Social Management Plan and the RAP on a semi-
annual basis in form acceptable to the Fund;
ii. Report on a semi-annual basis, no later than 30 days, in a form acceptable to the Fund
on the measures adopted and progress on HIV/AIDS and STD prevention; and
iii. Report at the start of every fiscal year, for the duration of the Project that the
counterpart funds required have been set aside.

5.3. Compliance with Bank Policies

This project complies with all applicable Bank policies.

VI – RECOMMENDATION

16
Management recommends that the ADF Board of Directors approve the proposed ADF Loan
of UA 84.08 million and the proposed ADF grant of UA 1.63 million to the Federal
Democratic Republic of Ethiopia for the purpose of financing the Modjo – Hawassa Highway
Project (Phase I), subject to the conditions stipulated in this report.

17
 Ethiopia
I: Ethiopia’sSOCIO-ECONOMIC
AppendixCOMPARATIVE INDICATORS
comparative socio-economic indicators

Develo- Develo-
Year Ethiopia Africa ping ped
Countries Countries
Basic Indicators GNI Per Capita US $
Area ( '000 Km²) 2011 1,104 30,323 98,458 35,811 1800
Total Population (millions) 2012 86.5 1,070.1 5,807.6 1,244.6 1600
Urban Population (% of Total) 2012 17.0 40.8 46.0 75.7 1400
1200
Population Density (per Km²) 2012 76.7 34.5 70.0 23.4 1000
GNI per Capita (US $) 2011 400 1 609 3 304 38 657 800
600
Labor Force Participation - Total (%) 2012 48.4 37.8 68.7 71.7 400
Labor Force Participation - Female (%) 2012 47.7 42.5 39.1 43.9 200
Gender -Related Dev elopment Index Value 2007-2011 0.403 0.502 0.694 0.911 0

2003
2004
2005
2006
2007
2008
2009
2010
2011
Human Dev elop. Index (Rank among 186 countries) 2012 173 ... ... ...
Popul. Liv ing Below $ 1.25 a Day (% of Population) 2005-2011 39.0 40.0 22.4 ... Ethiopia Africa

Demographic Indicators
Population Grow th Rate - Total (%) 2012 2.1 2.3 1.3 0.3
Population Grow th Rate - Urban (%) 2012 3.3 3.4 2.3 0.7
Population < 15 y ears (%) 2012 40.2 40.0 28.5 16.6 Population Growth Rate (%)
Population >= 65 y ears (%) 2012 3.4 3.6 6.0 16.5
Dependency Ratio (%) 2012 77.3 77.3 52.5 49.3 2.5
Sex Ratio (per 100 female) 2012 99.1 100.0 103.4 94.7 2.4
Female Population 15-49 y ears (% of total population) 2012 24.7 49.8 53.2 45.5 2.3
Life Ex pectancy at Birth - Total (y ears) 2012 59.7 58.1 67.3 77.9 2.2
Life Ex pectancy at Birth - Female (y ears) 2012 61.4 59.1 69.2 81.2 2.1
Crude Birth Rate (per 1,000) 2012 30.2 33.3 20.9 11.4 2.0
Crude Death Rate (per 1,000) 2012 9.2 10.9 7.8 10.1 1.9

2004

2005
2006

2007
2008
2009
2010
2011
2012
Infant Mortality Rate (per 1,000) 2012 63.6 71.4 46.4 6.0
Child Mortality Rate (per 1,000) 2012 97.5 111.3 66.7 7.8
Total Fertility Rate (per w oman) 2012 3.9 4.2 2.6 1.7 Ethiopia Africa
Maternal Mortality Rate (per 100,000) 2010 350.0 417.8 230.0 13.7
Women Using Contraception (%) 2012 30.6 31.6 62.4 71.4

Health & Nutrition Indicators Life Expectancy at Birth

Phy sicians (per 100,000 people) 2004-2010 2.2 49.2 112.2 276.2 (years)
Nurses (per 100,000 people)* 2004-2009 23.6 134.7 187.6 730.7
Births attended by Trained Health Personnel (%) 2005-2010 5.7 53.7 65.4 ... 71
Access to Safe Water (% of Population) 2010 44.0 67.3 86.4 99.5 61
Access to Health Serv ices (% of Population) 2000 55.0 65.2 80.0 100.0 51

Access to Sanitation (% of Population) 2010 21.0 39.8 56.2 99.9 41

31
Percent. of Adults (aged 15-49) Liv ing w ith HIV/AIDS 2011 1.4 4.6 0.9 0.4 21
Incidence of Tuberculosis (per 100,000) 2011 258.0 234.6 146.0 14.0 11
Child Immunization Against Tuberculosis (%) 2011 69.0 81.6 83.9 95.4 1
2004
2005
2006
2007
2008
2009
2010
2011
2012
Child Immunization Against Measles (%) 2011 57.0 76.5 83.7 93.0
Underw eight Children (% of children under 5 y ears) 2011 29.2 19.8 17.4 1.7
Daily Calorie Supply per Capita 2009 2 097 2 481 2 675 3 285 Ethiopia Africa

Public Ex penditure on Health (as % of GDP) 2010 5.7 5.9 2.9 8.2

Education Indicators
Gross Enrolment Ratio (%)
Primary School - Total 2010-2012 105.6 101.9 103.1 106.6
Primary School - Female 2010-2012 100.5 98.4 105.1 102.8 Infant Mortality Rate
( Per 1000 )
Secondary School - Total 2010-2012 37.6 42.3 66.3 101.5
Secondary School - Female 2010-2012 34.9 38.5 65.0 101.4 90
Primary School Female Teaching Staff (% of Total) 2011 37.2 43.2 58.6 80.0 80
Adult literacy Rate - Total (%) 2007-2010 39.0 67.0 80.8 98.3 70
Adult literacy Rate - Male (%) 2007-2010 49.1 75.8 86.4 98.7 60
50
Adult literacy Rate - Female (%) 2007-2010 28.9 58.4 75.5 97.9 40
Percentage of GDP Spent on Education 2008-2010 4.7 5.3 3.9 5.2 30
20
10
Environmental Indicators 0
2004
2005
2006
2007
2008
2009
2010
2011
2012

Land Use (Arable Land as % of Total Land Area) 2011 14.6 7.6 10.7 10.8
Annual Rate of Deforestation (%) 2000-2009 0.8 0.6 0.4 -0.2
Forest (As % of Land Area) 2011 12.2 23.0 28.7 40.4 Ethiopia Africa
Per Capita CO2 Emissions (metric tons) 2009 0.1 1.2 3.1 11.4

Sources : AfDB Statistics Department Databases; World Bank: World Development Indicators; last update : May 2013
UNAIDS; UNSD; WHO, UNICEF, WRI, UNDP; Country Reports.
Note : n.a. : Not Applicable ; … : Data Not Available.
 Appendix II : Ethiopia’s Portfolio 2013
ETHIOPIA - ADB ON-GOING OPERATIONS IN 2012/2013( AS AT 31, August 2013)
CUMULATIVE DISBURSEMENTS AS AT 31 August 2013
Cum. Disb.
Initial Revised Revised
Ser. Approval Date Effective Net Loan/Grant Amount Cumulative Undisbursed
Project/Study Loan/Grant No. Source Closing Closing Closing
No. Date Signed Date Amount (31,Aug. Disb. Ratio balance (UA)
Date Date_1st Date_2nd
2013)
AGRICULTURE SECTOR
Agriculture Sector
1 2100150007227 LOAN 5-Nov-03 12-Feb-04 21-Mar-05 31-Dec-10 31-Dec,-13 30-Jun-13 21,240,000 15,340,879 72.23% 5,899,121
Support Project

>> " " 2100155002019 GRANT 5-Nov-03 12-Feb-04 21-Mar-05 31-Dec-10 31-Dec,-13 30-Jun-13 17,761,200 14,282,109 80.41% 3,479,091

Creation of
Sustainable Tse tse
2 2100150009198 LOAN 8-Dec-04 16-May-05 23-Jan-07 31-Dec-11 31-Dec-12 15-Dec-13 9,550,000 8,703,289 91.13% 846,711
and Trypanosomiasis-
free areas in Ethiopia
LOAN 30,790,000 24,044,168 78.09% 6,745,832
GRANT 17,761,200 14,282,109 80.41% 3,479,091
Sub-total 48,551,200 38,326,278 78.94% 10,224,922
TRANSPORT SECTOR
Jimma-Mizan Road
3 2100150013218 LOAN 13-Dec-06 12-Jan-07 3-Oct-07 31-Dec-12 31-Dec-12 31-Dec-14 65,000,000 44,077,626 67.81% 20,922,374
Upgrading
Bedele-Metu Road
4 2100150025495 LOAN 30-Nov-11 2-Feb-12 1-Apr-12 31-Dec-16 41,060,000 7,612,163.27 18.54% 33,447,837
Upgrading
LOAN 106,060,000 51,689,790 48.74% 54,370,210
GRANT - - 0.00% -
Sub-total 106,060,000 51,689,790 48.74% 54,370,210
PUBLIC UTILITY
Rural Electrification II
5 2100150013644 LOAN 20-Dec-06 12-Jan-07 2-Nov-08 31-Dec-13 87,200,000 60,574,941 69.47% 26,625,059
Project
Electric Transmission
6 Systems Improvement 2100150023451 LOAN 6-Dec-10 20-Dec-10 19-Aug-11 31-Dec-15 93,750,000 60,068,370 64.07% 33,681,630
Projet
Electricity Transmission
>> Systems Improvement 2100155019269 GRANT 6-Dec-10 20-Dec-10 19-Aug-11 31-Dec-15 58,000,000 38,814,049 66.92% 19,185,951
Projet
Rural Water Supply and
7 2100155006269 GRANT 21-Dec-05 25-Feb-06 1-Sep-06 31-Dec-10 30-Jun-12 31-Dec-13 43,610,000 43,592,478 99.96% 17,522
Sanitation Project
LOAN 180,950,000 120,643,312 66.67% 60,306,688
GRANT 101,610,000 82,406,527 81.10% 19,203,473
Sub-total 282,560,000 203,049,838 71.86% 79,510,162
MULT_SECTOR
PBS III 2100150027194 LOAN 18-Jul-12 24-Aug-12 18-Dec-12 31-Jul-15 166,000,000 111,000,000 66.87% 55,000,000
Sub total loan 166,000,000 111,000,000 66.87% 55,000,000

Total Country Allocations:-

LOAN 483,800,000 307,377,270 63.53% 176,422,730
GRANT 119,371,200 96,688,636 81.00% 22,682,564
TOTAL 603,171,200 404,065,906 66.99% 199,105,294
Multi-National Operations
Creation of Sustainable
Tse tse and
Trypanosomiasis-Free
8 2100155003922 GRANT 8-Dec-04 16-Mar-05 14-Oct-05 31-Dec-11 30-Jun-12 1,500,000 1,371,028 91.40% 128,972
Areas in East and West
Africa: PATTEC-AU
COMPONENT
Creation of
Sustainable Tse tse
and Trypanosomiasis-
>> Free Areas in East and 2100155003921 GRANT 8-Dec-04 16-May-05 23-Jan-07 31-Dec-11 31-Dec-13 15-Dec-13 240,000 218,084 90.87% 21,916
West Africa: -
ETHIOPIA
COMPONENT
Mombassa-Nairobi-Addis
Ababa Road Corridor -
9 2100150020743 LOAN 1-Jul-09 15-Jan-10 6-Apr-11 31-Dec-15 85,000,000 29,338,380 34.52% 55,661,620
Ageremariam -Yabelo-
Mega Road Project
Mombassa-Nairobi-
Addis Ababa Road
11 Corridor-Hawassa- 2100150025545 LOAN 30-Nov-11 2-Feb-12 1-Apr-12 31-Oct-17 105,000,000 17,096,477.38 16.28% 87,903,523
Ageremariam Road
Project ( Phase III)
TOTAL Multi National:
LOAN 190,000,000 46,434,857 24.44% 143,565,143
GRANT 1,740,000 1,589,112 91.33% 150,888
TOTAL 191,740,000 48,023,970 74.95% 143,716,030

GRAND TOTAL (National and Multinational) :-

LOAN 673,800,000 353,812,127 52.51% 319,987,873

GRANT 121,111,200 98,277,748 81.15% 22,833,452

TOTAL 794,911,200 452,089,875 56.87% 342,821,325

Appendix III: Key related projects funded by Bank and other DPs
On-going Donor Financed Projects
Road
Contract Name Donor Length Amount
African Development Bank projects AfDB 1019 UA 318.77 m
Wacha - Maji road AfDB 175 UA 22.71 m
Jima - Mizan road AfDB 232 UA 65.00 m
Mombasa-Nairobi -Addis Ababa Phase II AfDB 303 UA 85.00 m
Mombasa-Nairobi -Addis Ababa Phase III AfDB 197 UA 105.00 m
Bedele - Metu road AfDB 112 UA 41.06 m
APL II World Bank 887 USD 372.80 m
Assela - Dodola - Junction World Bank 100
Dodola Junction - Goba World Bank 130
Adiabun-Shire World Bank 92
Nekempte - Mekenajo World Bank 127
GobGob - Gashana World Bank 86
Gashana - Woldia World Bank 106
Magna - Mechara World Bank 120
Assosa - Blue Nile - Guba World Bank 126
APL III World Bank 579 235.80 million USD
Gondar-Debark World Bank 107
Gedo - Nekmepte World Bank 134
Aposto Irbamoda World Bank 94
Irbamoda - Wadera World Bank 109
Wadera - Negele World Bank 65
Yalo - Nehile World Bank 70
APL IV World Bank 395 263.30 million USD
Mekenajo - Dembi Dolo World Bank 181
Welkite - Hossaina World Bank 125
Ankober - Awash Arba World Bank 89
RSDP4 World Bank 435 415.0 million USD
Ambo - Weliso World Bank 64
Debre Birhan - Ankober World Bank 42
Kombolcha - Bati - Mille World Bank 130
Mizan - Dima World Bank 92
Konso - Yabelo World Bank 107
Dembi - Bedele BADEA 62 9.20 million USD
Metu - Gore OPEC Fund 26 4.80 million USD
Gore - Gambella BADEA 145 13.00 million USD
OPEC Fund 15.00 million USD
Azezo - Gint - Metema BADEA 184 13.00 millionUSD
OFID 15.00 million USD
SAUDI Fund 18.00 million USD
Assosa - Kurmuk BADEA 100 6.50 million USD
SAUDI Fund 6.50 million USD
Road Sector Development Support Program
Phase II-Project NDF FS / DD 10.00 million EURO
Nekempte - Bedele Kuwait Fund 96 7.00 million Kuwait Dinar
BADEA 10.00 million USD
OFID 15.00 million USD
Wukro - Zalambessa Kuwait Fund 100 7.00 million Kuwait Dinar
Dejen - Lumame Japan 29 4,158,000,000 Yen
Gedo - Menebegna Saudi 25.00 million USD
Abu Dhabi 80.5 10.00 million USD
BADEA 10.00 million USD
Dessie - Kutaber Kuwait Fund 67.5 8.00 million Kuwait Dinar
Appendix IV: Map of Project