Acknowledgements: This report was prepared by a team comprising Maurice Mubila, Chief Statistician, (Statistics Department), Altus

Transcription

1 of Road Infrastructure s in Africa Market Study Series Statistics Department (ESTA) May Table of Contents SUMMARY Summary 1 1. Introduction Building a Database for the Analysis of Road Costs Establishing the Baseline for a New Database on Road Costs Consolidation of Databases from Previous Studies Addition of Cost Data from Recent s Master Database for Analysis of Unit Rates and Cost Overruns 3. Analytical Approach for Road Infrastructure Costs 3.1 Standardizing the Unit Rate 3.2 Analytical Approach Results 4.1 Establishing the Unit Cost Curve on the Basis of Size Construction/Upgrading of Paved Roads of Paved Roads Periodic Maintenance of Paved Roads Regraveling of Unpaved Roads Summary Results 4.2 Other Major Potential Drivers of Unit Rates Location of Road s Origin of Contractors Landlocked vs. Seaboard Countries 4.3 Determining Unit Cost Trends Unit Rates over Time Cost Overruns/Underruns Median Rates Conclusions 5.1 Typical Road Unit Costs 5.2 Unit Cost Overruns/Underruns 5.3 Trend in Unit Costs 5.4 General Conclusions Appendix A: Detailed Description of Database Parts for AICD Initiative 27 Appendix B: Statistical Terms 29 Appendix C: Consolidated Data 3 Mthuli Ncube Chief Economist and Vice President Office of the Chief Economist Charles Leyeka Lufumpa Director Statistics Department Steve Kayizzi Mugerwa Director Development Research Department Victor Murinde Director Africa Development Institute The African Development Bank () commissioned a study during 21/11 to analyze road unit costs and the extent of cost overruns in road infrastructure projects in Africa. The study focused on three main objectives, namely: (i) to determine unit costs for road infrastructure projects in Africa; (ii) to determine the prevalence and extent of cost overruns; and (iii) to determine the evolution of unit costs and cost overruns since the completion of previous studies specifically the Africa Infrastructure Country Diagnostics (AICD) study and a related study for the on Road Maintenance and Construction Costs in Africa. This represents the Final Report for the study and presents the findings of the analysis on unit costs and cost overruns of road infrastructure projects in Africa. Research was undertaken during 27 and 28, under the auspices of the joint World Bank Africa Infrastructure Country Diagnostic (AICD), into baseline unit cost data and the causes of cost overruns, specifically on road Acknowledgements: This report was prepared by a team comprising Maurice Mubila, Chief Statistician, (Statistics Department), Altus Moolman, Consultant, (Statistics Department) and Willem Van Zyl, Consultant (Statistics Department) under the supervision of Beejaye Kokil, Manager, Economic and Social Statistics Division, and the direction of Charles Leyeke Lufumpa, Director Statistics Department. A f r i c a n projects. The research resulted in the compilation of databases on road projects in Africa, which were used as the point of departure for the current study. The databases were consolidated into a new structure, and a total of 26 new projects (with Completion Reports (PCRs) dated 24 or later) were added to the database. The final database consisted of a total of 172 projects. The consolidated structure divided projects into four categories, based on the type of work that was undertaken, as follows: 1. Regraveling or periodic maintenance of unpaved roads: This involves reinstating the surface layer of gravel roads; 2. Periodic maintenance of paved roads: This involves the repair of minor surface defects and a seal or thin overlay, but without structural improvements or geometric upgrades; 3. of paved roads: This typically entails the of roads to This report was prepared by the Statistics Department in the Chief Economist Vice Presidency of the African Development Bank. Its findings reflect the opinions of the authors and not necessarily those of the African Development Bank, its Board of Directors, or the countries that they represent. Designations employed in this article do not imply the expression of any opinion on the part of the D e v e l o p m e n t B a n k African Development Bank Group concerning the legal status of any country or territory, or the delimitation of its frontiers. While every effort has been made to present reliable information, the African Development Bank accepts no responsibility whatsoever for any consequences of its use. Layout and production by Phoenix Design Aid A/S, Denmark

2 African Development Bank Group / Chief Economist Complex. May 214 of Road Infrastructure s in Africa the original design standard, including structural repairs; and 4. Construction and upgrading of paved roads: This typically entails the upgrading of gravel roads to paved standard, or the addition of lanes to existing paved roads. Analysis was performed on the projects in the database. The sequence of enquiry followed three steps, namely (i) establishing the position of the unit cost curve, (ii) verifying whether rates that lie off the curve can be explained, and (iii) determining whether the position of the curve is as expected (overruns) and whether it is shifting over time (unit cost trends). What this review has brought to the fore is that there is no such thing as a typical unit cost. This is because (i) unit costs are calculated by standardizing projects that are broadly similar but which differ in their design details and specific circumstances; and (ii) the size of the project invariably has an overriding effect on the unit rate (economy of scale). The first issue is largely overcome by excluding major project and location-specific factors (e.g. bridges, taxes). The second issue is something that anyone estimating or evaluating roads costs should be vigilant about. The table below provides a summary of the unit cost findings. It should be noted that the unit rates are all expressed per lane kilometer, i.e. a 5 km two-lane (single carriageway) road would have 1. The analysis of unit cost overruns shows that (i) there appears to be a correlation between the over/underrun and the size of the project and (ii) the estimation error (i.e. PCR value minus Appraisal Report (or PAR) value) is likely to be an underestimate (48 percent) rather than an overestimate (-15 percent). A typical observation is that the smaller the project, the larger the difference between the expected unit rate (PAR value) and the PCR value. The implication is that unit rates for small projects should be treated with some caution, although care should be taken not to spend more resources on refining designs, feasibility studies, and other work underlying PARs than the benefit that could be expected. In the case of the rehabilitation of paved roads, the difference occurs both above (overrun) and below (underrun) the PAR value. In the case of construction or upgrading of paved roads, it appears that the pattern is for small projects to overrun, rather than underrun. This may point to PARs being overly optimistic. The finding with respect to an increase in unit cost over time is inconclusive. This may be purely because of data constraints, i.e. a limited sample size for a specific year and standardization issues across projects in the same class. The effect is that statistically extrapolated unit cost curves (rather than rates) are compared. Given these shortcomings, comparing the cost curves of those years for which such curves can indeed be constructed, shows that unit costs for large projects (>1 lane km) have not increased during the last decade. It might even be inferred that they have reduced, although this is counterintuitive, given the field experience of task managers, which points to increasing unit rates. The main conclusion from this study is that while lenders and national road agencies will clearly benefit from having a better understanding of unit costs and related issues, a more permanent road unit cost database should be established (possibly under the AICD initiative), which can then be analyzed on a systematic basis. Summary of Unit Rate Statistics for Different Types of Road Infrastructure Investment (USD/, rounded to ) Type of Road Infrastructure Investment < 1 Regraveling/ Periodic Maintenance of Unpaved Roads Periodic Maintenance of Paved Roads of Paved Roads Construction and Upgrading of Paved Roads Quartile 3 1,5 N/A 29, 425,4 Median 9,6 N/A 18,3 227,8 Quartile 1 8,1 N/A 19,8 166,3 1 Quartile 3 12,8 72,2 13,5 162, Median 11,3 64,6 84,4 147,1 Quartile 1 9,6 56,9 47,4 115,9 Note: All values are given in 26 USD. 2

3 of Road Infrastructure s in Africa African Development Bank Group / Chief Economist Complex 1. Introduction The African Development Bank () and other development agencies are concerned about significant cost escalations of road projects under implementation. This is particularly important, given the s firm commitment to scale up its support to infrastructure development, as an operational priority of its Ten Year Strategy Investing in infrastructure is a prime way to boost economic growth, improve the social wellbeing of populations, and promote regional integration. However, excessive cost overrruns result in increased funding needs and act as a constraint to development; therefore a mechanism is needed to address this issue. The imperative to scale up infrastructure and improve the competitiveness of African economies is being constrained by limited data availability. Indeed, there is a scarcity of information regarding the costs of implementing road infrastructure projects in Africa, although significant data on the unit cost of projects exist, both in government records and those of development agencies in the region. There is therefore a need to systematically review and analyze these sources, to improve the generation of statistical data on the unit costs of various types of road infrastructure investments. Studies conducted about four years ago observed that cost overruns in road infrastructure projects had become increasingly common. The average cost overrun was 35 percent, but in a third of the cases it could be as high as 5 to 1 percent. The assumption has been that the increases are due to a variety of factors, including lack of competition in the bidding process, increases in fuel and bituminous product prices locally and internationally, technology used in road works, contract management practices, and the availability and quality of road construction materials. The African Development Bank commissioned a study during 21/11 to analyze road unit costs and the extent of cost overruns in road infrastructure projects in Africa. The study focused on three main objectives, namely: (i) to determine road unit costs for road infrastructure projects in Africa; (ii) to determine the occurrence and extent of cost overruns; and (iii) to determine the evolution of unit costs and cost overruns since the time of completion of previous studies (specifically the Africa Infrastructure Country Diagnostics (AICD) study and a related study for the on Roads Maintenance and Construction Costs in Africa). The current study represents the Final Report and presents the findings of the analysis on unit costs and cost overruns of road infrastructure projects in Africa. A four-step methodology was followed for the study: (i) first, the project databases from the previous studies were consolidated; (ii) new projects were then selected from the database, for comparison with the previous studies; (iii) data were extracted for each of the selected projects and added to the consolidated database; and (iv) analysis was performed to determine unit rates and cost overruns. This report contains four sections, including this introduction. Section 2 describes the development of a consolidated database of old (i.e. from previous studies) and newly selected projects, which were used for the analysis of unit rates. Section 3 provides an analysis of unit rates and cost overruns for all projects captured in the consolidated database. Section 4 summarizes the main findings of the report. 3

4 African Development Bank Group / Chief Economist Complex. May 214 of Road Infrastructure s in Africa 2. Building a Database for the Analysis of Road Costs Significant data on the unit cost of projects exist in the records of governments and donor agencies in the region. Under the auspices of the joint World Bank initiative of the Africa Infrastructure Country Diagnostic (AICD), research was undertaken during 27 and 28 into unit cost data. This then served as a baseline against which future improvements in infrastructure services could be measured. The research also analyzed the causes of cost overruns, specifically on road projects. The research resulted in the compilation of databases on road projects in Africa, containing cost data and allowing categorization of the type of work conducted. These databases were used as the point of departure for the current study. 2.1 Establishing the Baseline for a New Database on Road Costs Africon Limited completed a study on unit costs during 28 as part of the joint World Bank African Development Bank AICD Initiative. The main aim of the study, which focused on 24 countries in Sub-Saharan Africa, was to provide a set of baseline unit cost data against which future infrastructure improvements could be measured. This was expected to provide a more solid and empirical foundation for prioritizing investments and designing policy reforms in the infrastructure sectors in Africa. As part of this study, a database of infrastructure projects in Africa was compiled, covering roads, water, sanitation, and electricity. The database was populated from Completion Reports (PCRs), contractual documents from donor agencies participating in the study, and publicly available data from governments. For roads, the database covered 115 projects. The database consisted of two parts, namely: (i) a general section common to all projects, which captured the major exogenous variables; and (ii) an infrastructure-specific section, adapted for each sector (e.g. roads, water, and electricity) and for different infrastructures and technologies within each sector. A detailed description of these parts is presented in Appendix A. In 27, Africon Limited was appointed to carry out an addendum to the AICD assignment which was then underway. The topic of the addendum generally related to the main unit cost study, i.e. an investigation into the causes of recent cost overruns, specifically on road projects. Whereas the main AICD study sought to determine the final cost of projects that had already been completed, the Addendum examined the reasons for cost changes in ongoing projects, relative to the original engineer s estimates. The purpose of the Addendum was not to analyze and improve the project appraisal and procurement cycle per se, but rather to identify and mitigate the causes of the recent wave of cost overruns (i.e. during the time of the AICD study). A total of 24 projects were selected for the purposes of the study. details were obtained on the following: brief project description; timeframe (listing milestones such as Specific Procurement Notices (SPNs) issued, pre-qualification, tender issued, tender received, tender evaluation approved, contract signed); key project events; procurement; project component increases; changes in explanatory variables; summary impacts on tender price; and classification. Since the purpose of the 27 study was to investigate cost overruns and not unit costs, it was not a requirement to enter these project details into a general database. Rather, the focus was on analyzing these projects on an individual basis. 2.2 Consolidation of Databases from Previous Studies The databases developed for the AICD study (28) and the Addendum to AICD (27), differed slightly in terms of their structure and the data captured. This was owing to the divergent objectives of each study. There was a need to consolidate these databases into one structure, taking due account of the specific objectives of this report. The consolidated structure consisted of nine major data fields, as listed below: 1. information (general information describing the project and its location); 2. Procurement information (e.g. International Competitive Bidding (ICB) or National Competitive Bidding (NCB)); 3. Number of bidders, plus the name and nationality of the winning bidder 4. dates (dates for approval and signing of loan, signing of contract, expected and actual contract completion dates); 5. Type of project (road type and surface type); 4

5 of Road Infrastructure s in Africa African Development Bank Group / Chief Economist Complex 6. Activity (category describing the type of work performed, as discussed below); 7. Inputs & Costs: a) as per Appraisal Report (PAR) and b) as per Completion Report (PCR); 8. Size descriptors (number of lanes and road length); and 9. Currency (currency of costs, conversion factor to USD and USD CPI factor, for conversion to 26 USD). All projects from the 28 AICD study, as well as from the 27 study, were captured in the new database structure for the purposes of this report. It should however be noted that some projects did not have data for all the fields in the database. s listed in the database were further grouped into four categories, based on the type of work that was performed. These four categories, as well as a definition of each, are as follows: 1. Regraveling or periodic maintenance of unpaved roads. This is the activity of reinstating the surface layer of gravel roads. This term was also applied when there were substantial gravel road rehabilitation activities; 2. Periodic maintenance of paved roads. This involves the repair of minor surface defects and a seal or thin overlay, but without structural improvements or geometric upgrades. These contracts come in a range of light to heavy upgrades. Since the term periodic maintenance is used by road agencies for several different types of activity, some contracts with this activity in their title were reclassified (mostly to rehabilitation/reconstruction ); 3. of paved roads. This typically entails the of roads to the original design standard, including structural repairs; and 4. Construction and upgrading of paved roads. This covers the upgrading of gravel roads to paved standard, or the addition of lanes to existing paved roads. It should be noted that the above four categories are fairly broad, and may contain a wide variance with regard to technical standards. For example, new road construction (category 4) can include standards such as gravel base and asphalt layer, gravel base and seal layer, bitumen-treated base and asphalt layer, and concrete base. However, in order to conduct a statistical analysis, a sufficiently large sample is required (i.e. data points), and a compromise was therefore reached between the number of categories and level of detail per category. Furthermore, the data available in PCRs often did not provide a detailed technical description of the type of design and work conducted. For these reasons, the four categories indicated above were used for the purpose of this study. 2.3 Addition of Cost Data from Recent s The previous studies (discussed above) contained projects up to about 27. Therefore, in the identification of new projects for addition to the database, the focus was generally on post-27 projects. During 21, the availed a list of 44 projects (approved since 27) for consideration in the study. The list was then evaluated based on the availability of their project documents. For most of the projects, PARs were available but not PCRs. As the PARs did not contain all the data required for the database information that was also needed for the analysis of unit rates and cost overruns it was decided to investigate a wider range of projects. Subsequently, it was decided to list all projects for which PCRs dated 24 or later (although the actual projects could have been completed much earlier) were available from DARMS (Documents and Records Management System). A further criterion was that such projects should not have been included in the previous studies. The list contained 26 projects and was approved by for addition to the database, and for use in analysis of road infrastructure costs and cost overruns. The list of 26 new projects is indicated in Table

6 African Development Bank Group / Chief Economist Complex. May 214 of Road Infrastructure s in Africa Table 2-1: List of New s Selected for Addition to the Database Number Country Name 1 Benin Cotonou Porto Novo Road 2 Botswana Trans-Kgalagadi Road 3 Burkina Faso Second Road Program 4 Cameroon Road Improvement in the West, Littoral and South Provinces 5 Chad Djermaya Massaguet Road Construction 6 Chad Road and Maintenance 7 Ethiopia Alemgena Butajira Road 8 Ethiopia Road Maintenance and 9 Ghana Achimota Anyinam Road 1 Morocco Road III 11 Lesotho Likalaneng Thaba Tseka Road Upgrading - Lot1 (Likalaneng Cheche s Pass) 12 Lesotho Mpharane Bela Bela Road Upgrading 13 Madagascar Road and Maintenance 14 Malawi Msulira Nkhotakota Road 15 Malawi Road Maintenance and Construction (ROMAC II) 16 Mauritius South-Eastern Highway 17 Mozambique Pemba Montepuez Road 18 São Tomé and Principe Second Road Maintenance 19 Swaziland Transportation Sector 2 Swaziland Two International Roads 21 Tanzania Himo Arusha Road 22 Tunisia Classified Road Network Development II 23 Tunisia Classified State Road Network Development - Phase I 24 Tunisia Classified State Road Network 25 Uganda Kyotera Mutukula Road Upgrading 26 Uganda Rural Feeder Roads Maintenance Program PCRs and PARs for the 26 projects indicated above were extracted from DARMS. All relevant data were obtained from these documents and recorded in the database. Some of the projects comprised two or more types of road infrastructure investments (e.g. rehabilitation of paved roads, as well as the upgrading of paved roads). In such cases, each road infrastructure investment was captured separately in the database, resulting in more than one entry for the specific project. 2.4 Master Database for Analysis of Unit Rates and Cost Overruns The final database of projects used for the analysis of unit rates consisted of projects from the 28 AICD study, the 27 study, as well as the new projects identified during 21. A total of 172 projects were included in the final database, as indicated in Table

7 of Road Infrastructure s in Africa African Development Bank Group / Chief Economist Complex Table 2-2: s Included in Final Database Data Source Regraveling/ Periodic Maintenance of Unpaved Roads Periodic Maintenance of Paved Roads Number of s of Paved Roads Construction and Upgrading of Paved Roads 28 AICD Study Study New projects from identified during Total Total Note: As described above, some of the new projects entailed more than one type of road infrastructure investment. In such cases, each investment was captured separately, resulting in more than one entry for the specific project. Therefore a total of 35 new projects are reflected in Table 2-2, and not 26 as indicated in Table

8 African Development Bank Group / Chief Economist Complex. May 214 of Road Infrastructure s in Africa 3. Analytical Approach to Road Infrastructure Costs 3.1 Standardizing the Unit Rate The Terms of Reference for the study identified three topics that should be investigated, namely (i) what typical road unit costs are; (ii) whether the actual unit rates overran what was initially anticipated and if so, to what extent; and (iii) whether there is a trend in unit cost rates. The unit rate applied in this study is the cost per lane-kilometer. The lane-kilometer is the product of the number of lanes and the road length. Road design standards differ between jurisdictions, and road works do not necessarily fall neatly into the four types of project classifications identified above. s were classified based on the description of the works in the PCR and the project contract. The main adjustment made to compensate for physical differences was to exclude all major bridges and structures. Physical characteristics that were not standardized included the use of specific materials and differing geometric standards. Data on lane widths were not always available. The 3.5 m appears to dominate the data, but there are lane width outliers from 3.25 m to 3.8 m. The unit rate does not compensate for width variations. For regraveling and periodic maintenance of paved roads, all roads were single carriageway (two lanes). For the construction of paved roads, about 4 percent of projects were dual carriageway (four lanes), while for the rehabilitation of paved roads, dual carriageways comprised about 1 percent. Financial adjustments made to standardize projects entailed excluding all (i) feasibility, environmental, design and other studies; (ii) social mitigation costs (e.g. relocation costs); (iii) supervision and audit services; and (iv) taxes. The value considered is the latest available contract cost, either obtained from the PCR or the project contract. The 28 AICD data and 21 data (i.e. the current study) are typically based on PCR values. The 27 data mostly entailed projects that were on-going and that had experienced unexpected increases from the point of project appraisal or loan approval, prior to the contract being completed. For the purposes of this report, contract values were standardized in the same manner as for the 27 and 28 AICD studies. Unit rates are expressed as United States Dollar (USD) per lane kilometer. All contracts were standardized to 26 USD value. This was the convention used in the previous two studies (which supply the bulk of the material considered in this study). The most common currency in the combined database is the UA ( Unit of Account), followed by the FCFA and the USD, but the USD is favored as the currency to which most readers can readily relate. 3.2 Analytical Approach In analyzing the four types of road project, a similar sequence of enquiry is followed. It entails three steps: (i) establishing the position of the unit cost curve; (ii) verifying whether rates that lie off the curve can be explained; and (iii) determining whether the position of the curve is as expected (overruns) and whether it is shifting over time (unit cost trends). These steps are further elaborated below. Step 1: The projects in the particular category are reviewed, highlighting the contribution of each of the three studies to the universum and indicating any major differences between the three data subsets. The convention applied is to plot unit rates by showing the relationship between the rate and the project size (lane length). This is a crucial understanding: in most cases, the main explanatory variable for the unit rate is economies of scale. The smaller the project, the more disproportionate is the relative contribution of project overheads such as Preliminaries & General (site establishment). Step 2: After project size, the other major potential drivers of the unit rate are considered. It is expected that these variables could help to explain any deviation from the economies-of-scale curve already established. (a) Regional characteristics such as geography, climate, business practice and state of the contracting industry are captured by grouping projects into Northern (Maghreb), Western (largely ECOWAS), Central (largely ECCAS), Eastern (EAC and surrounds), and Southern Africa (mostly SADC). (b) The origin (home country) of the main contractor is considered, to determine whether outlier unit rates can be traced back to the prevalence of home country vs regional or contractors from further away. (c) It is often argued that a country s accessibility to the sea affects its cost of construction. This proposition is tested by comparing unit costs between landlocked countries and those with seaboards. Step 3: Movement of the unit cost curve could be short-term, i.e. the unit rate achieved exceeding the rate expected by the roads agency; or longer-term, i.e. that rates are drifting upward over time. In the short-term, overrun refers to a project completion amount exceeding the sum originally foreseen. Completion amounts can be the actual completion, as recorded in the PCR, or the contracted amount. The original amounts can be either as stated in the PAR or the loan agreement. This 8

9 of Road Infrastructure s in Africa African Development Bank Group / Chief Economist Complex study applied the PCR values for completion and the PAR values for the expected amount. In other words, overrun defines the extent to which the contracted amount was exceeded. The short-term overrun issue relies heavily on relevant project documentation being available. Of the three studies, only the 27 investigation attempted to unpack the reasons for overruns and the current report therefore largely reflects overrun findings of that study. Here, cost overruns were assessed against the reference project amount as per the loan approval, or where this was unavailable, the PAR. Road projects considered were contracted through For the unit rate trend investigation, for most of the project types, there are insufficient data points to explain possible long-term upward trends in unit rates. In no cases are there directly comparable projects (in terms of size, country/ location, etc.) which would enable a firm conclusion to be drawn on changes in unit rates. Unit rate trends are therefore calculated by comparing best-fit statistical simulations of different time periods. The unit rate data are subject to large variances. This may be the result of projects being incongruously categorized together, even though they may have some unique characteristics. Or it may be due to variances in contracting conditions; or a number of other considerations. This report therefore presents the unit rates not as a firm value, but as ranges of values that indicate the confidence interval around the calculated rate. The unit rates are presented as median (not average) rates, bounded by first and third quartile intervals. One set of statistics is provided for projects smaller than 1 (typically subject to a large variance) and those larger than 1 (typically demonstrating fairly small variance). 9

10 African Development Bank Group / Chief Economist Complex. May 214 of Road Infrastructure s in Africa 4. Results 4.1 Establishing the Unit Cost Curve on the Basis of the Size Construction/Upgrading of Paved Roads The database includes 52 construction or upgrading of paved roads projects, about a quarter each from the 27 and studies, and about half from the 28 AICD study. Of these, 47 have usable data (i.e. contracted values). As shown in Figure 4-1, for large projects ( 1 ), the unit cost rates of the three studies distribute similarly. For smaller projects (< 1 ), there are some outlier projects, especially in the 21 and 27 studies that result in very spiky curves compared with the study curve, which shows a less prominent diseconomy of scale of Paved Roads A total of 72 projects were classified under the rehabilitation of paved roads intervention. The majority (two-thirds) were from the 28 AICD study, with 14 added in this study. Unit rates could not be calculated for one project, leaving a universum of 71 projects, as indicated in Table 4-2. Table 4-1: Construction/Upgrade of Paved Road s Sample Study/Region North West Central East South Total AICD Total Figure 4-1: Construction/Upgrading of Paved Road s per Study 2,, 1,8, 1,6, 1,4, 1,2, 1,, 8, 6, 4, 2, USD/ Swaziland MR3 Bypass Mauritius South-Eastern Highway Table 4-2: of Paved Road s Sample Study/Region North West Central East South Total AICD Total

11 of Road Infrastructure s in Africa African Development Bank Group / Chief Economist Complex Figure 4-2: Distribution of Paved s per Study USD/ 1,4, 1,2, 1,, 8, 6, 4, 2, 5 1, 1,5 2, The projects that were added to the overall database by the 21 study distribute very similarly to those of the 28 AICD study (Figure 4-2). The projects from the 27 study tended to be more expensive if smaller than 5. It should be recalled that the 27 projects were specifically selected because they had resulted in overruns Periodic Maintenance of Paved Roads The combined data set includes six projects for the periodic maintenance of paved roads (Table 4-3). Four of these are from the 28 AICD study and two were introduced in the 21 review. Table 4-3: Periodic Maintenance of Paved Road s Sample Study/Region North West Central East Southern Total AICD From Figure 4-3, it can be seen that the unit rates of the two 21 projects are substantially lower than the rates from the 28 AICD study. The lower of the two 21 unit rates is a resurfacing project in Morocco and the other a resealing project in Malawi Total Figure 4-3: Periodic Maintenance of Paved Road s per Study 8, USD/ 7, 6, 5, 4, 3, 2, 1,

12 African Development Bank Group / Chief Economist Complex. May 214 of Road Infrastructure s in Africa Regraveling of Unpaved Roads For unpaved roads, the major intervention identified in the three studies is regraveling. There are 42 projects in the database, of which 37 yield useful unit rates (Table 4-4). The bulk of projects are from the 28 AICD study, while two were added in the review. Reliable unit rates could not be calculated for the two regraveling projects from the 27 study. Table 4-4: Regraveling of Unpaved Roads s Sample Study/Region North West Central East South Total AICD Total The addition of the two projects enhances an understanding of the cluster of unit rates below 1 (Figure 4-4). Even with the addition of these projects, the same economy-of-scale curve that appears for other project types still does not appear here. Even if the outlier projects are ignored, the curve remains flat Summary Result The unit cost curve confirms the economies of scale proposition, that the smaller the project, the more disproportionate is the relative contribution of project. In other words, smaller contracts with road size < 1 lane Km have higher unit costs compared to larger projects. Figure 4-4: Regraveling s per Study USD/ 45, 4, 35, 3, 25, 2, 15, 1, 5, DRC projects Other Major Potential Drivers of Unit Rates Location of Road s Construction/Upgrading of Paved Roads For construction/upgrading of paved roads, half of the projects are in East Africa and a fourth in Southern Africa (Figure 4-5). The unit rate variance is large (i.e. there is a high degree of scatter in the data) for small projects in both these regions. The most outlying small project is the Mbabane bypass (Swaziland) a project that overspent notoriously. The outlier small project from the 27 study is an 11 km project in East Africa (Mauritius). That country has a sizable contracting industry, which means that the unit rate cannot be explained simply by it being an island state. Figure 4-5: Regional Distribution of Construction/Upgrading of Paved Road s 2,, 1,8, 1,6, 1,4, 1,2, 1,, 8, 6, 4, 2, USD/ North West Central East South 12

13 of Road Infrastructure s in Africa African Development Bank Group / Chief Economist Complex Figure 4-6: Regional Distribution of Paved s USD/ 1,4, 1,2, 1,, North West 8, Central 6, 4, East South 2, 5 1, 1,5 2, of Paved Roads For rehabilitation of paved roads, half of the projects are in Southern Africa, 22 percent in West Africa, and 15 percent in East Africa (Figure 4-6). The distribution of unit rates reflects the typical economies-of-scale curve, with higher unit rates for small projects and lower rates for larger ones. As was previously noted in the 27 and 28 AICD reports, the variance is particularly high for projects of fewer than 1 lane-km. For paved rehabilitation projects, the initial peakiness (unit rates from about USD 5,/) is ascribed to projects in the West Africa subregion, specifically four in Benin and two in Ghana. Figure 4-7: Regional Distribution of Periodic Maintenance of Paved Road s 8, 7, 6, 5, 4, 3, 2, USD/ North West Central East South Periodic Maintenance of Paved Roads For periodic maintenance, as shown in Figure 4-7, the difference between the rates of the 21 and 28 studies may be attributable to the fact that the projects are widely distributed over the continent. A further explanatory factor could be that the two projects predate 2 (i.e. it is expected that unit rates have increased, even in real terms). Nevertheless, the data sample (six projects) is so small that it cannot be concluded with certainty that these projects unit rates are in fact outlying. 1,

14 African Development Bank Group / Chief Economist Complex. May 214 of Road Infrastructure s in Africa Regraveling of Unpaved Roads For regraveling roads, the three apparent outlier projects are all in Central Africa, specifically the Democratic Republic of the Congo (DRC). These were all emergency projects in Katanga Province. The cluster of small (less than 25 km road length) West African projects relates to the rural access program in Burkina Faso. For purposes of calculating the summary statistics below, this program is excluded because it has a dominating effect in the overall calculation. Figure 4-8: Regional Distribution of Periodic Maintenance of Paved Road s 45, 4, 35, 3, 25, 2, 15, USD/ Summary Result In all four test scenarios, the location of the project does not seem to significantly influence the distribution of unit rates. 1, 5, Origin of Contractors Construction/Upgrading of Paved Roads For construction/upgrading of paved roads (Figure 4-9), Chinese contractors account for a significant share of projects. However, except for one possible project (the 11.1 Mauritius South-Eastern Highway ), they are not obviously responsible for outlier contracting values. The widest variance in contract values may rather be ascribed to local contractors. Figure 4-9: Paved Road Construction/Upgrading s by Origin of Contractor 2,, 1,8, 1,6, 1,4, 1,2, 1,, 8, 6, 4, USD/ Home Country Regional Country Europe China Other East Other 2, N/A

15 of Road Infrastructure s in Africa African Development Bank Group / Chief Economist Complex Figure 4 1: Paved s by Origin of Contractor 1,4, 1,2, 1,, USD/ Home Country Regional Country of Paved Roads Although there is no discernible pattern in contractor origin versus unit rate (Figure 4 1), three of the outlier contracts identified above were carried out by European contractors and one by a Chinese contractor. 8, 6, 4, 2, - 5 1, 1,5 2, Europe China Other East Other N/A Periodic Maintenance of Paved Roads Similarly for periodic maintenance of paved roads (Figure 4-11), it is unlikely that the origin of the contractor played a significant role in the unit rate variance. Figure 4-11: Paved Road Periodic Maintenance s by Origin of Contractor 8, USD/ 7, 6, 5, 4, 3, 2, 1, Home Country Regional Country Europe China Other East Other N/A

16 African Development Bank Group / Chief Economist Complex. May 214 of Road Infrastructure s in Africa Regraveling of Unpaved Roads As might be expected for a type of intervention that does not require a high degree of sophistication or major capital investment, regraveling contracts are dominated by domestic contractors (Figure 4-12). When the three outlier projects (DRC) are excluded, projects in landlocked countries have very similar unit rates to those in seaboard countries (Figure 4-13). There is however still no clear pattern to make a conclusion Summary Result In all four test scenarios, the origin of the contractor does not seem to significantly influence the distribution of unit rates. Figure 4-12: Regraveling s by Origin of Contractor USD/ 45, 4, 35, 3, 25, 2, 15, 1, 5, Home Country Regional Country Europe China Other East Other N/A Landlocked vs. Seaboard Countries Construction/Upgrading of Paved Roads For construction/upgrading of paved roads, there is no apparent difference in the distribution of unit costs for landlocked countries versus those with sea coasts. Figure 4-13: Construction/Upgrading of Paved Road s Landlocked vs. Seaboard Countries 2,, 1,8, 1,6, 1,4, 1,2, USD/ Landlocked Seaboard Power (Landlocked) Power (Seaboard) 1,, 8, 6, 4, 2,

17 of Road Infrastructure s in Africa African Development Bank Group / Chief Economist Complex Figure 4-14: Paved s Landlocked vs. Seaboard Countries 1,4, 1,2, 1,, 8, 6, 4, USD/ Landlocked Seaboard Power (Landlocked) Power (Seaboard) of Paved Roads For rehabilitation of paved road projects, the unit rate patterns are very closely correlated between landlocked and seaboard countries (Figure 4-14), with no difference in the distribution of unit costs Periodic Maintenance of Paved Roads The project sample is too small to draw a conclusion about the unit cost comparison between landlocked and seaboard countries (Figure 4-15). 2, 5 1, 1,5 2, Figure 4-15: Paved s by Landlocked vs. Seaboard 8, USD/ 7, 6, 5, 4, 3, Landlocked Seaboard 2, 1,

18 African Development Bank Group / Chief Economist Complex. May 214 of Road Infrastructure s in Africa Regraveling of Unpaved Roads For regraveling roads, there is no clear pattern (Figure 4-16). Figure 4-16: Regraveling s Landlocked vs. Seaboard Countries Summary Result For at least two test cases, it appears unit rates between landlocked and seaboard countries strongly correlate without any major influence on unit cost distribution. 3, 25, 2, 15, USD/ 1, 4.3 Determining Unit Cost Trends Unit Rates over Time Construction/Upgrading of Paved Roads Figure 4-17 shows the trend in unit rates over time (i.e. the movement of the unit cost curves). Good-fit curves can be plotted for the period prior to 2 (grey), and for 23 (green), 24 (yellow), and 26 (orange). For projects larger than 4 lane km, the 26 curve exceeds the others, but the occurrence of projects of this length is limited, and firm statistical conclusions cannot be drawn. For projects of 2 lane km and less, the variance of unit rates is high, resulting in an apparent decrease in unit costs over time. 5, Landlocked Seaboard Power (Landlocked) Power (Seaboard) Figure 4-17: Construction/Upgrading of Paved Road s Unit Rates over Time 2,, 1,8, 1,6, 1,4, 1,2, 1,, 8, 6, 4, 2, USD/ pre

19 of Road Infrastructure s in Africa African Development Bank Group / Chief Economist Complex Figure 4-18: Paved s Unit Rates over Time USD/ pre-2 1,4, 2 1,2, 21 1,, 22 8, 23 6, 24 4, 25 2, , 1,5 2, of Paved Roads Figure 4-18 demonstrates the evolution of unit rates over time for rehabilitation of roads. Three trend lines are shown for years that had a relatively large number of projects: pre-2 (grey), 24 (dark yellow), and 26 (orange). The 24 and 26 curves virtually overlie. Unexpectedly, they are both slightly lower than the pre- 2 curve Periodic Maintenance of Paved Roads The project sample is too small to make a conclusion about the unit cost comparison over time (Figure 4-19). Figure 4-19: Paved Road Periodic Maintenance s Unit Rates over Time 8, 7, 6, 5, 4, 3, 2, 1, - USD/ pre

20 African Development Bank Group / Chief Economist Complex. May 214 of Road Infrastructure s in Africa Regraveling of Unpaved Roads The projects universum is dominated by projects from 25 and 26, with no subsequent projects recorded. There is no clear pattern of unit rate changes over time (Figure 4-2) Summary Result In cases with wide distribution of sample data, it appears that for smaller projects the unit cost rate reduces over time while for larger projects it increases. Figure 4-2: Regraveling s Unit Rates over Time USD/ 45, 4, 35, 3, 25, 2, 15, 1, pre Cost Overruns/Underruns The summary result above is borne out by comparing the expected unit rate (as per the PAR) with the actual contracted rate. 5, Construction/Upgrading of Paved Roads Cost over/underrun data are available for 24 of the projects (Figure 4-21). Significant overruns (>2%) occurred in seven projects and significant under-expenditure (< -2%) in five projects. The major overrunning projects were: the Cameroon Road Improvement ; Swaziland Two International Roads s; the Lesotho Mpharane Bela Bela Road Upgrading ; Swaziland M3 Bypass ; and the Ghana Akatsi-Dzodze (Akatsi-Akanu Section). The Tanzania Kigoma Lusahunga (38 ) is the only large project that overran significantly. Figure 4-21: Construction/Upgrading of Paved Road s Unit Rate Overruns/Underruns (PCR vs. PAR) 1% 8% 6% 4% 2% % -2% -4% -6% -8% -1% -12% % Over/Under (Contract vs PAR) It would therefore appear that small projects are more susceptible to cost overruns than are larger projects. 2

21 of Road Infrastructure s in Africa African Development Bank Group / Chief Economist Complex Figure 4-22: Paved s Unit Rate Overruns/ Underruns (PCR vs. PAR) 12% 1% 8% 6% 4% 2% % -2% -4% , Figure 4-23: Paved Road Periodic Maintenance s Unit Rate Overruns/Underruns (PCR vs. PAR) 2% 1% % -1% -2% % Over/Under (Contract vs PAR) % Over/Under (Contract vs PAR) ,2 25 1,4 3 1,6 1,8 35 2, of Paved Roads Over/underruns were generally not significant except for very small contracts, which in any case are subject to much wider price variances. In the case of rehabilitation of paved roads (Figure 4-22), there appears to be a clear correlation between the degree of over/underrun and the size of the project: the smaller the project, the larger the difference between the expected unit rate (PAR value) and the contracted value Periodic Maintenance of Paved Roads From Figure 4-23, it can be seen that contracts for the two 21 projects were concluded substantially below the rates originally estimated Regraveling of Unpaved Roads It was only possible to calculate cost overruns for the two 21 projects. In both cases, the projects had underruns of less than 1 percent compared with the PAR estimate. It was therefore not possible to draw any conclusions from the limited sample size Summary Results»» Small projects are more susceptible to cost overruns than larger projects. -3% -4% -5%»» Construction/Upgrading of roads is more susceptible to cost overruns than underruns.»» of roads exhibits both characteristics (overrun/underrun). 21

22 African Development Bank Group / Chief Economist Complex. May 214 of Road Infrastructure s in Africa Median Rates Construction/Upgrading of Paved Roads Small construction/upgrade of paved road projects have a median unit rate (i.e. the unit rate in the middle of the dataset) of about USD 228,/, but ranging from USD 61, below to USD 198, above. For large projects, the expected rate is USD 147, but ranging from USD 31, lower to USD 15, higher, as indicated in Figure For both small and large projects, the inclusion of the 21 dataset exerts an augmenting effect on unit rates. For small projects, the 28 AICD median unit rate was USD 21,/. The 28 AICD median unit rate for large projects was USD 145,/ of Paved Roads Figure 4-25 shows the dataset for paved rehabilitation projects after correcting for the major outliers. Outliers includes two 27 projects that exceeded the PAR significantly, as well as the other very peaky West African projects. Figure 4-24: Representative Dataset for Construction/Upgrading of Paved Road s 3,5, 3,, 2,5, 2,, 1,5, 1,, 5, USD/ Table 4-5: Unit Rate Statistics for Construction/Upgrading of Paved Road s (USD/, rounded to ) Metric < 1 1 Quartile 3 425,4 162, Median 227,8 147,1 Quartile 1 166,3 115,9 Data Median<1km Q1<1km Q3<1km Median>1km Q1>1km Q3>1km Figure 4-25: Representative Dataset for Paved Road s 6, USD/ 5, 4, 3, 2, 1, Data Median<1km Q1<1km Q3<1km Median>1km Q1>1km Q3>1km 5 1, 1,5 2, 22

23 of Road Infrastructure s in Africa African Development Bank Group / Chief Economist Complex Table 4-6: Unit Rate Statistics for Paved Road s (USD/, rounded to ) Metric < 1 1 Quartile 3 29, 13,5 Median 18,3 84,4 Quartile 1 19,8 47,4 Accommodating the wide variance in unit rates for projects below 1, the summary statistics for paved road rehabilitation projects are shown in Table 4-6. For small rehabilitation of paved road projects, the unit rate is expected to be about USD 18,/, but it can range from USD 7, lower to USD 11, higher. For large projects, the expected rate is USD 84,, but ranging from USD 37, lower to USD 46, higher. Figure 4-26: Representative Dataset for Periodic Maintenance of Paved Road s 8, 7, 6, 5, 4, 3, 2, 1, USD/ Table 4-7: Unit Rate Statistics for Periodic Maintenance of Paved Road s (USD/, rounded to ) Data Median<1km Q1<1km Q3<1km Median>1km Q1>1km Q3>1km The median unit rates in the 28 AICD study were USD 15,/ for small projects and USD 79,/ for large projects. (The unit rate was not calculated in the 27 study.) Periodic Maintenance of Paved Roads Two 21 outlier projects (Figure 4-26) are excluded, leaving three fairly tightly spaced unit rate data points for periodic maintenance of paved roads. The median unit rate for projects larger than 1 is USD 65,. The first quartile is about USD 8,/ lower, while the upper quartile is about USD 8,/ higher than the median. Since only the 28 AICD projects are used to calculate the summary statistics, the median rate is the same as calculated in that in the study. Metric < 1 1 Quartile 3 N/A 72,2 Median N/A 64,6 Quartile 1 N/A 56,9 23

24 African Development Bank Group / Chief Economist Complex. May 214 of Road Infrastructure s in Africa Regraveling of Unpaved Roads With the exclusion of two outlier projects, the DRC and Burkinabé program, the regraveling dataset is graphically presented in Figure Figure 4-27: Representative Dataset for Regraveling s USD/ 3,5, 3,, Data This is the only type of road project reviewed that does not demonstrate a clear pattern of economy of scale. The median unit rate for small projects (less than 1 ) is about USD 1,, ranging downward by USD 2, and upward by USD 1,/. The median rate for large regraveling projects ( 1 ) is USD 11,, minus or plus USD 2,/. 2,5, 2,, 1,5, 1,, 5, Median<1km Q1<1km Q3<1km Median>1km Q1>1km Q3>1km In the 28 AICD study, the median rate was calculated for all (i.e. small and large projects) at USD 7,8/ Summary Result The median unit rates clearly demonstrate a pattern of economy of scale, i.e. smaller contracts have higher unit costs compared to larger projects. Table 4-8: Unit Rate Statistics for Regraveling s (USD/, rounded to ) Metric < 1 1 Quartile 3 1,5 12,8 Median 9,6 11, 3 Quartile 1 8,1 9,6 24

25 of Road Infrastructure s in Africa African Development Bank Group / Chief Economist Complex Conclusions The analysis for this report was performed on a total of 172 projects (sourced from the 28 AICD study, the 27 study, and newly selected projects obtained from during 21), to determine unit rates for different types of road infrastructure investments. Of these 172 projects, unit rates could be calculated for 161 projects in this study. In response to the study s Terms of Reference, the following conclusions are drawn: 5.1 Typical Road Unit Costs One very important conclusion from this review is that there is no such thing as a typical unit cost. This is because (i) unit costs are calculated through a process of standardizing projects that are broadly similar but which differ in their design details and specific circumstances, and (ii) the size of the project invariably has an overriding effect on the unit rate (economy of scale). The first issue is largely overcome by excluding major project and location-specific factors (e.g. bridges, taxes). The second issue is something that anyone estimating or evaluating roads costs should be vigilant about. Although it may be advantageous, from a statistical analysis perspective, to recommend that road project costs should be cast into a standard format (e.g. standard bills of quantities) that will facilitate ex post comparison, this could add to the administrative burden of national road agencies. Rather, it is recommended that lenders through programs such as AICD classify relevant data into standardized databases, as extracted by task team leaders at PAR and subsequent stages. Table 5-1 provides a summary of the unit cost findings. 5.2 Unit Cost Overruns/Underruns Nearly a third of the projects are from the 28 AICD Study, where cost overrun was not an area investigated. This implies that the conclusions on overruns are based on a smaller dataset than the rest of the analysis. Analysis of cost overruns indicates that for all the projects where data on over/underruns are available, the overruns amount to 48 percent and the underruns to -15 percent of the PAR values. The main conclusions are that: (i) there appears to be a correlation between the over/underrun and the size of the project and (ii) the estimation error (i.e. PCR value minus PAR value) is likely to be an underestimate (48 percent) rather than an overestimate (-15 percent). These two conclusions are further elaborated upon in the next paragraphs. Table 5-1: Summary of Unit Rate Statistics for Different Types of Road Infrastructure Investment (USD/, rounded to ) Type of Road Infrastructure Investment < 1 Regraveling/ Periodic Maintenance of Unpaved Roads Periodic Maintenance of Paved Roads of Paved Roads Construction and Upgrading of Paved Roads Quartile 3 1,5 N/A 29, 425,4 Median 9,6 N/A 18,3 227,8 Quartile 1 8,1 N/A 19,8 166,3 1 Quartile 3 12,8 72,2 13,5 162, Median 11,3 64,6 84,4 147,1 Quartile 1 9,6 56,9 47,4 115,9 Note: All values are given in 26 USD. 25

26 African Development Bank Group / Chief Economist Complex. May 214 of Road Infrastructure s in Africa In terms of conclusion (i), the analysis shows that the smaller the project, the larger the difference between the expected unit rate (PAR value) and the contracted value. This may be because larger contractors are more sophisticated in their costing, and/or that funding agencies expend more effort on the price estimates of larger projects. The implication is that unit rates for small projects should be treated with some caution. However, care should be taken not to spend more resources on refining designs, feasibility studies, and other work underlying PARs than might be expected to accrue in terms of the project benefits. In terms of (ii), the estimation error varies according to the type of project undertaken. For the rehabilitation of paved roads, the difference occurs both above (overrun) and below (underrun) the PAR value. In the case of the construction or upgrading of paved roads, it appears that the pattern is for small projects to overrun, rather than underrun. This suggests that PARs may have a tendency to be overly optimistic. 5.3 Trend in Unit Costs The finding on an increase in unit cost over time is inconclusive. This may be purely because of data constraints, i.e. the limited sample size for a specific year and standardization issues across projects in the same class. The effect is that statistically extrapolated unit cost curves (rather than rates ) are compared. Given these shortcomings, where comparisons can be made, these indicate that unit costs for large projects (>1 ) have not increased during the last decade. It could even be inferred that they have reduced, although this is counterintuitive, given the field experience of task managers, which points to an upward trend in unit rates. 5.4 General Conclusions It is important for lending agencies and national road agencies to track road unit cost trends and issues so that these can be reflected in their planning. Their ability to influence the rates is probably fairly limited, other than in the case of contractor market distortions (e.g. collusion). However, a greater understanding of issues and trends will allow planners and lending agencies to make more accurate projections. Two general conclusions can be drawn, the first related to the implications of the study findings and the second regarding the analysis process: 1. The study findings point out that many of the traditional causes of high road costs (e.g. geographic location, origin of contractor) are not very useful to explain unit cost rates. The principal explanatory factor appears to be project size and related issues, e.g. that small contracts get less attention from lenders. Teasing out deeper statistical relationships will require a more thorough and larger database. 2. In terms of the analysis of road unit costs, much greater effort is required in two areas, namely: (i) the management of documentation (enabling ex post analysis) and (ii) proactively extracting relevant data, while issues are still recent and well-understood. Although the data may only be analyzed periodically, the database itself should be kept up to date. The AICD initiative, based on collaboration among the World Bank,, and other lenders, is a useful platform to establish a permanent database. REFERENCES Africon Limited. 28. Africa Infrastructure Country Diagnostic Study: Consulting Services for the Evidence on Unit Costs of Infrastructure s in Sub-Saharan Africa. Washington, DC: World Bank Group. Africon Limited. 27. Africa Infrastructure Country Diagnostic Study: Study on Unit Costs of Infrastructure s in Sub- Saharan Africa, Addendum 2: African Development Bank Study on Roads Maintenance and Construction Costs in Africa. Washington, DC: World Bank Group. 26

27 of Road Infrastructure s in Africa African Development Bank Group / Chief Economist Complex APPENDIX A: Detailed Description of Database Parts for AICD Initiative Africa Infrastructure Country Diagnostic Database (28) Africon Limited carried out a study on unit costs during 28 under the auspices of the joint World Bank African Development Bank initiative on Africa Infrastructure Country Diagnostic (AICD). As part of this study, a database of infrastructure projects in Africa was compiled, including roads, water, sanitation, and electricity. The database was designed to consist of two parts, namely: a) a general section common to all projects, capturing the major exogenous variables; and b) an infrastructure-specific section, adapted for each sector (e.g. roads, water, and electricity) and for different infrastructures and technologies within each sector. A short description of these parts is given in the next sections. a) General Contract Information»» The following general information was obtained for all contracts:»» and contract information, including project/program title, project/program unique number, contract title, and contract unique number.»» Task Team Leader information, including name and contact details ( , telephone number).»» Geographic information (country/ies, district/s and location/s) and whether urban, rural, or deep rural. An attempt was made to standardize the use of urban for cities, towns, and large settlements, rural for small settlements, and deep rural for locations totally isolated from towns and villages. In the case of roads, the term inter-urban was used for roads through rural areas but connecting towns, and rural access for rural feeder roads.»» Implementing agency/ies, including the main funding Development Finance Institution (DFI), other DFIs and local funders and role players.»» Procurement, which may be National Competitive Bidding (NCB), International Competitive Bidding (ICB) or direct appointment.»» Bidders information, including the number of bidders (at Request for Proposal/tender stage), the name of the winning bidder, and nationality of the winning bidder.»» Key dates, including the date the contract was signed, the contracted completion date, and the actual completion date (in as far as these are available). b) Specific Contract Information»» The following information for each infrastructure (e.g. roads) was obtained:»» Infrastructure type, i.e. what technology. Road projects were differentiated according to whether they were urban, inter-urban and rural access, whether with or without a shoulder, and whether paved or unpaved.»» Activity, including preservation, rehabilitation, improvement, and/or new construction.»» Basis of costing, i.e. whether a pre-contract estimate, contracted value, or the contract value as modified in the course of the contract.»» Input costs. This subsection divided the infrastructures into their major components. This allowed some comparison to be made between technologies, but importantly, it provided the basis on which to isolate components of costs, which appeared to be out-ofthe-norm in the course of standardizing contract information. The major components considered were: Studies, design, land acquisition and environmental costs prior to construction (note that for roads, environment is isolated as a standalone item to facilitate the use of the study data in ROCKS); Contractor s establishment and mobilization (for roads, demolition, dismantling, site clearance and other site preparation are again isolated for use in ROCKS); Mass earthworks; Civils and structures. These were further subdivided into the following: Major bridges and structures; Minor bridges, culverts and drainage; Accesses and junctions; Pavement courses; Shoulder works; and Ancillary road works; 27

28 African Development Bank Group / Chief Economist Complex. May 214 of Road Infrastructure s in Africa In the calculation of unit costs, the cost of major structures and bridges was not included, as these were very contract-specific and did not cast light on average road costs. Mechanical, electrical, and control equipment; Installation and commissioning (including dayworks); Other (non-categorized costs); Taxes; Contingencies; and Supervision (owner s engineering costs).»» Output descriptors, i.e. the number of units purchased with the contract amount, on the basis of which output unit costs are calculated. For road projects, the key descriptors were the number of lanes and road length (km).»» Currency-related information, including the contract currency/ies, the conversion date, the conversion factor/s (to USD) and USD CPI factor (for conversion to 26 USD). 28

29 of Road Infrastructure s in Africa African Development Bank Group / Chief Economist Complex APPENDIX B: Statistical Terms Note on Statistical Terms This report employs a number of statistical terms to describe the methodology and findings. These all have to do with the distribution of unit costs, i.e. how unit rates distribute around a value that indicates the norm for the particular type of project (construction, rehabilitation, etc.). In the analysis, there are two major steps to interpret the data statistically:»» Best-fit curve. The first step is to determine a formula that eliminates the noise of the scattered unit cost data, so that the data can be shown as a curve. The best-fit curve is the mathematical formula that reduces most noise. The formula used in the analysis is a negative exponential curve (y = a.x -b ). The best-fit curve allows conclusions to be drawn about the typical unit rates across all project sizes.»» Statistics of distribution. The best-fit curve allows projects to be divided into large (> 1 ) and small projects. For each group, the central value is determined with reference to the median. The central value shows a point around which the data cluster. The median is the value in the middle of the data range, i.e. there are as many values smaller than the median as values larger than it. The median is generally accepted to be a truer reflection of the central value than the average, as it gives a lower importance to outlier values (very high or very low values in the data set). The data clustering or noise around the median is measured by the data variance. The more scattered the data, the higher the variance and the lower therefore the confidence that can be placed in the median. 29

30 African Development Bank Group / Chief Economist Complex. May 214 of Road Infrastructure s in Africa APPENDIX C: Consolidated Data Source Class Title Country/ies Contractor Nationality Dates Contract Price Dimensions PAR Contract Completion PCR PAR PCR Lanes Length Original Currency Exchange Rate USD CPI Factor USD/lkm Periodic Maintenance/Regravel (Unpaved roads) Burkina Faso NA 12/1/ FCFA Burkina Faso NA 12/1/ FCFA ,485.4 Burkina Faso NA 12/1/ FCFA ,988.8 Village Communities Support Program (Phase 1) Guinea Guinea 1/22/22 3/1/ FG ,4.86 Regravel Nakivubo Channel Uganda Uganda 2/2/24 1/13/ USH Burkina Faso NA 12/1/ FCFA , Burkina Faso NA 12/1/ FCFA , Burkina Faso Burkina Faso 3/21/25 6/7/ FCFA ,63.35 Burkina Faso NA 12/1/ FCFA , Burkina Faso NA 12/1/ FCFA , Village Communities Support Program (Phase 1) Guinea Guinea 11/5/22 3/24/ FG ,59.55 Burkina Faso NA 12/1/ FCFA ,56.85 Regravel Second Transport Sector Program Senegal Senegal 11/23/ FCFA ,985.6 Burkina Faso NA 12/1/ FCFA ,421.7 Village Communities Support Program (Phase 1) Guinea Guinea 11/5/22 3/26/ FG , Burkina Faso NA 12/1/ FCFA ,54.16 Burkina Faso Burkina Faso 4/11/25 9/21/ FCFA , Burkina Faso NA 12/1/ FCFA ,75.7 Village Communities Support Program (Phase 1) Guinea Guinea 1/22/22 3/24/ FG , Pobe-Ketou-Illara (regraveling) Benin Benin 9/1/24 8/1/ UA

31 of Road Infrastructure s in Africa African Development Bank Group / Chief Economist Complex Source Class Title Country/ies Contractor Nationality Dates Contract Price Dimensions PAR Contract Completion PCR PAR PCR Lanes Length Original Currency Exchange Rate USD CPI Factor USD/lkm Burkina Faso Burkina Faso 3/21/25 7/6/ FCFA , Regravel Second Transport Sector Program Regravel Second Transport Sector Program Senegal Senegal 11/23/ FCFA ,53.69 Senegal Senegal 11/23/ FCFA , Burkina Faso Burkina Faso 3/21/25 7/26/ FCFA ,369.3 Burkina Faso Burkina Faso 3/21/25 7/6/ FCFA , Burkina Faso Burkina Faso 4/11/25 9/22/ FCFA , Village Communities Support Program (Phase 1) Guinea Guinea 1/28/22 3/24/ FG ,52.62 Regravel Second Transport Sector Program Senegal Senegal 11/23/ FCFA ,798.4 Village Communities Support Program (Phase 1) Guinea China 1/24/22 2/12/ FG ,178.4 Burkina Faso NA 12/1/ FCFA ,583.9 Burkina Faso NA 12/1/ FCFA ,98.63 Regravel Second Transport Sector Program Senegal Senegal 11/23/ FCFA , Burkina Faso Burkina Faso 3/21/25 7/21/ FCFA , Regravel Burkina Faso Burkina Faso Burkina Faso 7/31/ FCFA ,9.68 Regravel Emergency Recovery and Regravel Emergency Living Conditions Improvement Support Ethiopia Ethiopia 9/11/23 11/29/ ETB , DRC DRC 1/18/26 2/27/ USD , Wacha-Maji Ethiopia China 8/11/23 5/1/ UA (upgrade to gravel) Regravel Emergency Living Conditions Improvement Support Regravel Emergency Living Conditions Improvement Support DRC DRC 12/2/25 2/27/ USD , DRC DRC 1/18/26 2/27/ USD , Second Road Program Second Road Program Periodic Maintenance on Earth Roads - Lot 1 Periodic Maintenance on Earth Roads - Lot 2 Burkina Faso Burkina Faso 11/14/21 4/28/24 6/1/28 9/1/ UA , Burkina Faso Burkina Faso 11/14/21 5/6/24 6/1/28 9/1/ UA ,

32 African Development Bank Group / Chief Economist Complex. May 214 of Road Infrastructure s in Africa Source Class Title Country/ies Contractor Nationality Dates Contract Price Dimensions PAR Contract Completion PCR PAR PCR Lanes Length Original Currency Exchange Rate USD CPI Factor USD/lkm Rural Feeder Roads Maintenance Program Rural Feeder Roads Maintenance Program Uganda? 1/3/1991 2/1/1996 6/1/21 11/1/ ,3. UA Periodic Maintenance (Paved roads) Road Maintenance and Construction (ROMAC II) Resealing of two paved roads (Benga- Nkhotakota- Dwangwa) Malawi UK 2/15/199 11/1/1993 1/1/1998 1/1/ UA , Road III Resurfacing of main roads (132 km) Kingdom of Morocco Morocco 12/15/ /1/1995 8/31/21 9/1/ UA , Periodic Maintenance Second Transport Sector Program Senegal Senegal 7/29/24 11/16/ ,98.72 Light Emergency Multisector amd (EMRRP) DRC NA 9/27/ FCFA ,64.4 Periodic Maintenance Transport Corridors Improvement Mali France 1/4/25 3/29/ USD , Periodic Maintenance Burkina Faso Other 1/19/ FCFA , (Paved roads) Paved: Reconstruct Roads and Bridges Management and Maintenance Program Mozambique Italy 11/11/24 1/5/ MT ,98.28 Paved: Urban Reconstruct Road Maintenance and Malawi Malawi 4/28/ MKW , Paved: Urban Reconstruct Urban Development and Decentralization Mali Senegal 12/29/2 3/7/ FCFA , Paved: Urban Reconstruct Road Maintenance and Malawi Malawi; Zimbabwe 1/5/ MKW , Paved: Urban Reconstruct Road Maintenance and Malawi Malawi 4/11/ MKW , Paved: Improvement/ Upgrade Nakivubo Channel Uganda Uganda 3/2/24 1/13/ USH , Paved: Reconstruct Paved: Urban Reconstruct Paved: Urban Reconstruct Roads Sector Zambia South Africa 12/16/23 4/12/ ZMK , Invetment Program Road Maintenance and Road Maintenance and Malawi Malawi 4/28/ MKW ,318.2 Malawi Malawi 1/7/ MKW ,

33 of Road Infrastructure s in Africa African Development Bank Group / Chief Economist Complex Source Class Title Country/ies Contractor Nationality Dates Contract Price Dimensions PAR Contract Completion PCR PAR PCR Lanes Length Original Currency Exchange Rate USD CPI Factor USD/lkm Paved: Reconstruct Road Rehabiliation and Maintenance Zambia Zambia - (Consultancy: United Kingdom) 1/14/25 12/27/ ZMK ,63.23 Cotonou Porto Novo Road Cotonou Porto Novo Road Rehab - Lot A Benin France 9/4/1996 4/17/1998 3/1/22 1/1/ UA ,215,99.16 Paved: Urban / Paved: Reconstruct Paved: Urban RSA NA 12/1/ ZAR , Burundi China 1/28/25 4/14/ FCFA , RSA NA 1/1/ ZAR , Cotonou Porto Novo Road Cotonou Porto Novo Road Rehab - Lot C Benin France 9/4/1996 7/22/1998 7/1/23 1/1/ UA , Projet de réhabilitation de la route Poke Ketou Illara Benin France 1/18/ USD , Second Road Maintenance of: (I) RN2 between Ribeira Peixe and Porto Alegre; (II) Structures on the RN1 and RN2 Sao Tome and Principe Portugal 8/31/1993 5/29/1998 5/1/22 5/1/ UA ,17.78 Roads and Bridges Management and Maintenance Program Mozambique Italy 11/11/24 1/5/ MT ,36.64 Cotonou-Porto Novo Road Cotonou Porto Novo Road Rehab - Lot B Benin France 9/4/ /16/ /31/24 1/1/ UA , Paved: Urban Amenagement de la route Cotonou Porto Novo (Lot B) Benin NA 11/9/ FCFA , Paved: Urban Angola NA AKW , Road and Maintenance works on the N djamena bypass, and rehabilitation of Walia-N gueli bridge road Chad France 1/26/1987 7/25/199 1/1/1998 4/1/ UA ,226.2 Road Maintenance and Construction (ROMAC II) of Chikwawa Bangula Road Malawi South Africa 2/15/199 3/1/1997 1/1/1998 1/1/ UA , Road Sector Support Cape Verde Cape Verde 11/2/25 1/19/ CVE ,

34 African Development Bank Group / Chief Economist Complex. May 214 of Road Infrastructure s in Africa Source Class Title Country/ies Contractor Nationality Dates Contract Price Dimensions PAR Contract Completion PCR PAR PCR Lanes Length Original Currency Exchange Rate USD CPI Factor USD/lkm Paved: Urban Paved: Urban Paved: Urban Angola NA AKW ,786.5 Angola NA AKW ,34.2 South Africa RSA NA 9/1/ ZAR ,211.6 N /1 Tetteh Quarshie Circle Mamfe / Pantang- Mamfe Section Ghana China 3/22/ USD , Road Sector Development Burundi Rwanda 1/26/25 2/1/ BIF , Paved: Urban Reconstruct Angola NA AKW , Road Rehabiliation and Maintenance Zambia China - Consultancy : South Africa 1/7/25 12/28/ ZMK , Paved: Urban Angola NA AKW ,573.7 Northern Corridor Transport Improvement Kenya NA 8/29/ KSH , Paved: Improvement/ Upgrade Angola NA AKW , Road Sector Development Program Ghana Netherlands 12/15/23 2/13/ Cedi , Road Rehabiliation and Maintenance Zambia China - (Consultancy : Zambia) 2/18/25 6/1/ ZMK ,558.3 Nsawam-Apedwa (rehab and new construction) Ghana China 4/1/24 4/1/ UA ,85.37 Paved: Reconstruct Road Infrastructrure 23/ Nsawam Apedwa Road Ghana NA 11/14/ Cedi , Paved: Roads and Bridges Management and Maintenance Program Mozambique Mozambique 4/26/24 8/22/ Mt ,24.35 Heavy Roads Sector Zambia South Africa 9/3/23 12/23/ ZMK ,8.7 Invetment Program Paved: / Roads and Bridges Management and Maintenance Program Mozambique Portugal 4/26/24 1/5/ MT ,

35 of Road Infrastructure s in Africa African Development Bank Group / Chief Economist Complex Source Class Title Country/ies Contractor Nationality Dates Contract Price Dimensions PAR Contract Completion PCR PAR PCR Lanes Length Original Currency Exchange Rate USD CPI Factor USD/lkm Paved: Urban Paved: Urban RSA NA 8/1/ ZAR , Angola NA AKW ,69.5 Tema Aflao / Akatsi Aflao Road Ghana NA Cedi ,86.71 Tema-Aflao (Akatsi- Aflao Section) (rehabilitation and new construction) Ghana - 11/1/ UA , Techiman Kintampo (reinforcement) Ghana - 12/1/ UA , Namibia NA 7/6/ N$ ,828. Road Development Program Phase 1 Uganda Serbia 12/29/ USH , Roads and Bridges Management and Maintenance Program Mozambique Mozambique 3/15/26 2/12/ MT , Paved: Urban Angola NA AKW , Emergency Multisector amd (EMRRP) DRC China 9/3/24 9/16/ USD , Road Maintenance and Semera - Dobi Junction Ethiopia Ethiopia 11/22/1989 7/1/1993 8/1/21 8/1/ UA , Paved: Reseal Road Development Program Phase 1 Uganda NA 12/29/ USH , Himo-Arusha Road Himo-Arusha Road Tanzania Italy 6/11/199 5/7/1993 4/4/1997 6/1/ UA ,49.49 Roads and Bridges Management and Maintenance Program Mozambique China 4/26/24 8/22/ MT ,495.6 Kenya NA 5/26/ KSH , Heavy Roads and Bridges Management and Maintenance Program Mozambique South Africa 4/26/24 8/22/ Mt ,35.7 Namibia NA 2/19/ N$ ,

36 African Development Bank Group / Chief Economist Complex. May 214 of Road Infrastructure s in Africa Source Class Title Country/ies Contractor Nationality Dates Contract Price Dimensions PAR Contract Completion PCR PAR PCR Lanes Length Original Currency Exchange Rate USD CPI Factor USD/lkm Emergency Multisector amd (EMRRP) DRC China 3/3/ USD ,932.4 Heavy Roads and Bridges Management and Maintenance Program Mozambique Italy 4/26/24 8/22/ Mt , Heavy Roads and Bridges Management and Maintenance Program Mozambique South Africa 4/26/24 1/5/ Mt ,276.1 Road and Maintenance RN1 & RN1, RN6: and Periodic Maintenance of Paved Roads Madagascar Madagascar 1/5/1991 Jan 99/ Dec 12/1/25 5/1/ UA , Namibia NA 5/1/ N$ , Pemba-Montepuez Pemba Montepuez Mozambique Italy 6/25/1997 3/1/2 7/1/22 1/1/ UA , Road Road Toliara (rehabilitation) Multinational UEMOA/Ghana- Program Routier 1 Mali Section (reinforcement) Multi- Waenu/ MaliSenegal- Dakar: Mali Section (road improvement) RN 34 only Madagascar China 7/1/24 8/1/ UA , Mali, Ghana - 1/1/26 9/1/ UA , Lot 1 & 2 Mali - 1/1/26 6/1/ UA ,6.46 Classified State Road Network Classified State Road Network Tunisia Mostly Tunisian 31/5/1995 1/1/1997 3/6/22 9/1/ UA ,73.46 Classified State Road Network Development - Phase I Classified State Road Network Development - Phase I Tunisia Tunisia 26/11/1997 various 3/6/22 12/1/ UA N/A N/A - Tunisia, Classified Road Network rehabilitation Phase IV Part 2 (23 lots) Tunisia Tunisian 11/1/24 5/1/ UA ,557.1 Road III Reinforcement of main roads (81km) Kingdom of Morocco Morocco 12/15/ /1/1995 8/31/21 9/1/ UA , Classified Road Network Development II Classified Road Network Development II Tunisia Tunisia 9/6/1999 8/1/ /12/23 8/1/ USD ,

37 of Road Infrastructure s in Africa African Development Bank Group / Chief Economist Complex Source Class Title Country/ies Contractor Nationality Dates Contract Price Dimensions PAR Contract Completion PCR PAR PCR Lanes Length Original Currency Exchange Rate USD CPI Factor USD/lkm Construction and upgrading of paved roads South-Eastern Highway Construction of a new Road linking Plaine Magnien to Ferney Community Centre (5.526 km) Mauritius China 6/13/21 2/1/24 6/3/28 5/1/29 #DIV/! UA ,419,59.65 : Construction (paved) Road Sector Support Cape Verde Cape Verde 1/31/25 11/7/ CVE ,37.48 Road Sector Development Support Program II Ethiopia NA ETB Tombo-Gbessia (improvement of paved road and other activities) Guinea - 7/1/ UA Road Sector Development Support Program II Ethiopia NA 7/4/ ETB , Mayange-Nemba Rwanda Germany 1/1/26 12/1/ UA ,535.4 (upgrade to paved) ADB Rwanda P-Z1-DB-37 Travaux routiers d aménagement de la section Mayange - Nemba Rwanda NA USD ,618.3 Achimota-Anyinam Construction of Road Apedwa Bunso Section of the Achimota Anyinam Road Ghana? 12/15/ /19/2 12/31/28 12/15/ USD , MR3 Bypass (upgrade) Swaziland South Africa 12/1/23 2/1/ UA ,946,864.8 ADB Ghana P-GH-D-2 REHABILITATION OF ACHIMOTA- ANYINAM ROAD - APEDWA-BUNSO SECTION Ghana NA USD , Road Improvement in the West, Littoral and South Provinces Mpharane Bela Bela Road Upgrading Road works, bridge Cameroon Brazil 3/29/21 1/6/23 7/1/27 9/1/ UA ,349.5 construction and related improvements between Melong and Dschang, and between Eseka and Lalodorf Construction works for upgrading of Mpharane Bela Bela, St Theresa and Kolojane in Leribe and Berea districts of Lesotho Lesotho South Africa 1/16/22 7/27/23 5/12/25 4/1/ UA ,36.12 Akatsi Noepe /Akatsi Akanu road Ghana NA USD ,

38 African Development Bank Group / Chief Economist Complex. May 214 of Road Infrastructure s in Africa Source Class Title Country/ies Contractor Nationality Dates Contract Price Dimensions PAR Contract Completion PCR PAR PCR Lanes Length Original Currency Exchange Rate USD CPI Factor USD/lkm Classified State Road Network Classified State Road Network Tunisia Mostly Tunisian 31/5/1995 various 3/6/22 9/1/ UA N/A N/A - Akatsi-Dzodze (Akatsi-Akanu Section) (upgrade to paved) Ghana - 1/1/ UA , Likalaneng- Thaba Tseka Road Upgrading - Lot1 (Likalaneng- Cheche s Pass) Likalaneng -Thaba Tseka Road Upgrading - Lot1 (Likalaneng - Cheche s Pass) Lesotho? 1/29/23 2/28/29 5/27/ UA N/A N/A Likalaneng- Lesotho South Africa 11/1/26 4/1/ UA ,47.71 Thaba Tseka (upgrade to paved) ADB Lesotho P-LS-DB-9 Likaleneng-Thaba Teseka Road Upgrading Central Transport Corridor Central Transport Corridor Lesotho NA 3/5/ USD ,76.11 Tanzania China 4/29/25 7/2/ TSH , Tanzania China 4/29/25 11/7/ TSH ,346.4 Gasenyi-Kirundo (asphalting) Lot 3 Burundi France 9/1/26 12/1/ UA ,29.6 Tronçon Kirundo - Gasenyi Construction de la RN 14 Kicukiro - Nyamata - Mayange - Nemba Burundi NA USD , Two International Roads Two International Swaziland Roads - Mbabane-Ngwenya Road Swaziland/ South Africa 11/18/1994 7/1/1999 4/26/24 12/1/ UA , Lot 1 (upgrade to paved) Lot 2 (upgrade to paved) Zanzibar Kenya 6/1/25 12/1/ UA ,494.8 Zanzibar Italy 6/9/24 6/1/ UA , Kyotera Mutukula Road Upgrading Kyotera Mutukula Road Upgrading Uganda Italy- Germany 17/9/1998 8/1/2 1/1/22 11/1/ UA , ADB Cameroun P-CM-D-5 Projet d aménagement routier dans les provinces de l ouest, du sud et du littoral Cameroun NA 11/14/ USD , Gitarama-Ngorero Rwanda China 2/1/25 12/1/ UA ,64.6 (rehab and paving) Djermaya Massaguet Road Construction Tarring of the two-lane road from Djermaya to Massaguet Chad France 1/23/ /14/1998 8/31/21 11/1/ UA ,

39 of Road Infrastructure s in Africa African Development Bank Group / Chief Economist Complex Source Class Title Country/ies Contractor Nationality Dates Contract Price Dimensions PAR Contract Completion PCR PAR PCR Lanes Length Original Currency Exchange Rate USD CPI Factor USD/lkm Two International Roads Two International Roads - Luyengo-Sicunusa Road Swaziland Swaziland/ South Africa 11/18/1994 1/1/1999 7/1/23 12/1/ UA ,49.23 Mbabane- Swaziland Ezulwini-Matsapha Upgrading Swaziland/ Denmark 8/24/1992 1/1/1994 1/1/ /1/ UA ,9, Uganda Road Development Program Phase 2 Uganda Road Development Program Phase 2 Uganda Road Development Program Phase 2 Uganda Netherlands 6/21/24 7/15/ USH , Kenya NA 9/3/ KSH , Uganda China 6/21/24 1/26/ USH ,491.2 Uganda China 3/25/24 6/7/ USH , Msulira-Nkhotakota Road Multinational Waemu/ Mali-Senegal (rehabilitation and construction) Msulira-Nkhotakota Road Malawi 11/25/1991 6/16/2 8/31/23 11/1/ UA ,43.59 Senegal Section Senegal Senegal 1/1/26 4/1/ UA , Road Sector Development Support Program II Ethiopia China 7/4/ ETB , ADB Uganda P-UG-DBO-17 Uganda: Upgrading of Kabale Kisoro Bunagana/Kyanika Road Uganda NA USD , Northern Main Road Construction Swaziland South Africa/ Lebanon 9/22/24 3/24/ SEM ,67.42 ADB Cameroun P-CM-DB-7 Projet d aémenagement route Ambam-Eking Cameroun France 1/18/ USD ,23.13 Road Sector Development Support Program II Road Sector Development Support Program II Ethiopia China 6/23/26 1/3/ ETB ,135.5 Ethiopia China 6/23/26 1/3/ ETB ,912.3 Alemgena - Butajira Road Alemgena-Butajira Road Upgrading Ethiopia China 6/17/1998 1/25/2 4/5/24 4/1/ UA , Djougou-Ndali (regravel/ asphalting) Benin Benin, France 1/1/24 12/1/ UA , Road Sector Development Support Program II Ethiopia China 1//19 6/23/26 1/3/ ETB ,148.4 Kigoma-Lusahunga Tanzania China 9/1/21 3/1/ UA , (upgrade to paved) 39

40 African Development Bank Group / Chief Economist Complex. May 214 of Road Infrastructure s in Africa Source Class Title Country/ies Contractor Nationality Dates Contract Price Dimensions PAR Contract Completion PCR PAR PCR Lanes Length Original Currency Exchange Rate USD CPI Factor USD/lkm 5. Butajira- Ethiopia China, South Hossaina-Sodo Korea (upgrade to paved) ADB Mauritanie P-MR-DB-6 Construction du tronçon Mbignik - Boghe 1/1/21 7/1/ UA , Lot II de la route Rosso Boghe Mauritania China 12/3/ USD ,86.83 Trans-Kgalagadi Road Construction of 589km road between Sekoma and Mamuno - Section II: Kang to Ghanzi Junction (221 km) Botswana Kuwait 11/25/ /16/1994 7/1/1998 3/1/ UA ,65.5 Road III Construction of secondary roads (257km) Morocco? 12/15/ /1/1995 8/31/21 9/1/ UA ,84.54 Classified State Road Network Development - Phase I Tunisia Classified Tunisia Tunisia 26/11/1997 various 3/6/22 12/1/ UA N/A N/A - State Road Network Development - Phase I 4