Public Sector Lending in 2001*

Africa

**There is a service charge on all Fund loans of 1% per annum on amounts withdrawn and outstanding.

More classroom space is needed in Angola, where an influx of displaced persons to some areas has led to severely overcrowded schools.

Angola

Sector: Education
Project: Education II
Amount: $9.39 million
Terms**: Interest rate of 1% per annum; 20-year maturity, including a 5-year grace period
Approved: November 6, 2001
Executing agency: Ministry of Education and Culture
Co-financiers: AfDF, Technical Assistance Fund of the AfDF, Government of Angola
Loan administrator: AfDB
Total cost: $24.43 million

After years of civil unrest, Angola has placed a high priority on meeting its educational needs, particularly along the country's western coast where some four million displaced people have sought refuge. Schools in this region are overcrowded and in poor condition, instruction materials and textbooks virtually non-existent and many teachers lack proper training. In addition, older children often drop out of school to work and help support their families, adding to the rising number of unskilled workers. In order to address these problems, the project will target four of the most seriously affected provinces, namely, Luanda, Kwanza Sul, Benguela and Namibe. Works will include the construction of 244 primary school classrooms and the rehabilitation of 122 existing ones. The Skills Training Centre in Luanda, which provides technical and vocational training in the higher grades, in addition to adult literacy programs, will be refurbished and equipped accordingly. All schools will be fitted out with new furniture, computer and audio-visual equipment and other supplies, and some 30,000 students will be provided with learning materials. Over 7,000 teachers, school directors and other personnel will attend in-service training workshops and programs in new course curriculum. Once underway, the initiative will give thousands of youngsters the chance to complete their education and obtain the necessary skills to help them find well-paid jobs.

Benin

Sector: Transportation
Project: Akpro-Kpedekpo Road
Amount: $5.8 million
Terms: Interest rate of 1% per annum; 20-year maturity, including a 5-year grace period
Approved: November 6, 2001
Executing agency: Ministry of Public Works and Transport
Co-financiers: IsDB, Government of Benin
Loan administrator: IsDB
Total cost: $19.74 million

Benin's road network represents the dominant mode of transport, providing agricultural communities with links to marketplaces and shipping ports, as well as to outlying food-deficit regions. However, most rural roads consist of poorly-maintained earth tracks that make travel slow and expensive, and are often rendered impassable during the rainy seasons. The 89-km long Akpro-Kpedekpo road, which is situated in the south-east corner of the country, provides access to the two fertile provinces Oueme and Zou, as well as to bordering Nigeria. This earth road is in sub-standard condition and frequently becomes flooded, hindering income generation and perpetuating poverty for the region's 320,000 inhabitants. Under this project, plans are to upgrade the entire stretch to bitumous standard with a 7-m wide carriageway. Shoulders will be added; those in rural areas will be 1.5-m wide, and portions passing through the more heavily traveled urban regions will be 2.5 m in width. Drainage systems will be installed to curb flooding, and two 45-m bridges constructed. Once completed, the movement of people and goods will be greatly improved, and those living in remote regions will benefit from improved access to jobs and social services, thereby raising the living standards of thousands of families.

In southeast Benin, where roads are often flooded, a project will upgrade the Akpro-Kpedekpo Road and build bridges and drainage structures.

Burkina Faso

Sector: Health
Project: National Public Health Laboratory, Phase II
Amount: $2.5 million
Terms: Interest rate of 1% per annum; 20-year maturity, including a 5-year grace period
Approved: June 14, 2001
Executing agency: PIU under the aegis of the Ministry of Health
Co-financier: Government of Burkina Faso
Loan administrator: OPEC Fund
Total cost: $2.84 million

The National Public Health Laboratory (NPHL) is the only referral laboratory of its kind in Burkina Faso. It offers control tests on foodstuffs, drugs and other products likely to affect community health, supports health programs and investigates hygienic conditions in public places. It also helps control agriculture and veterinary-related diseases. This loan will expand existing facilities at NPHL in order to encompass a wider range of testing services, thus eliminating the need to utilize laboratories located abroad. The first phase of this project, also co-financed by the Fund, comprised the construction of the main laboratory building and its annexes. Under the second stage, additional facilities will be built to house a toxicology unit, quality control and testing areas, and special storage facilities for chemicals, samples and pharmaceuticals. In addition, measuring and analysis equipment will be procured, and a maintenance and repair workshop for laboratory apparatus constructed. Sensitization campaigns will be provided to all age groups, especially school children, on the importance of a proper diet, hygiene, and the risks associated with food and water contamination. Prevention classes for infectious diseases such as HIV/AIDS will also be established. Once the new facilities are operational, health indicators are expected to improve considerably, allowing the revenue saved by providing services locally to be invested in other medical programs.

Cameroon

Sector: Transportation
Project: Abong Mbang-Bonis Road
Amount: $9 million
Terms: Interest rate of 1.25% per annum; 20-year maturity, including a 5-year grace period
Approved: November 6, 2001
Executing agency: Ministry of Public Works
Co-financiers: IsDB, Saudi Fund, Government of Cameroon
Loan administrator: Saudi Fund
Total cost: $31.05 million

Cameroon's climate provides an ideal growing environment for a number of cash and subsistence crops, a situation that contributes substantially to the country's economy, and provides over two-thirds of the population with jobs. Efficient road transport is crucial for the movement of goods to marketplaces, as well as to Cameroon's major shipping port in Douala. However, only around 4,000 km of the 50,000-km road network is paved, with the rest consisting of gravel or earth tracks. The Abong Mbang-Bonis Road lies in the country's Eastern province and passes through areas with enormous agricultural potential. However, this gravel stretch has deteriorated considerably over the years, with some sections becoming virtually impassable during the rainy months, hampering the transport of produce and leaving many communities isolated. The objectives of the project are to upgrade this 103-km road to a 7-m wide, all-weather asphalt surface with 1.5-m shoulders on either side. Two new bridges, 50 m and 30 m in length, will be built to replace existing ones that are no longer able to support current traffic loads. This scheme is expected to reduce vehicle-operating costs and make travel safer and more efficient, as well as enable rural communities to access social services. In addition, a number of employment opportunities will be created during the implementation of the project.

A heavily used road in Cameroon. The stretch from Abong to Mbang-Bonis will be widened and paved with co-financing from the Fund.

Chad
1.

Sector: Transportation
Project: Am Timan-Haraze Mangueigne Road
Amount: $4.8 million
Terms: Interest rate of 1% per annum; 20-year maturity, including a 5-year grace period
Approved: March 27, 2001
Executing agency: PIU under aegis of the Rural Civil Works Directorate and Agricultural Water Works at the Ministry of Agriculture
Co-financier: Government of Chad
Loan administrator: OPEC Fund
Total cost: $5.4 million

Agriculture plays a key role in Chad's economy, providing livelihoods for over three-quarters of the country's 7.5 million inhabitants. Since no railroad exists, this landlocked country relies on its 32,000-km road network for transporting agricultural goods and linking its widely scattered population to schools, health clinics and jobs. Most of the roads, however, are poorly maintained dirt tracks, which become severely flooded in the rainy season and make travel impossible, halting income generation and jeopardizing food security for rural communities. These problems are particularly worrisome in the isolated prefecture of Salamat, where development is constrained due to the deterioration of the Am Timan-Haraze Mangueigne road, a corridor that connects Salamat to markets and commercial centers in the capital city N'Djamena. Transportation has become difficult and expensive, and heavy rains leave the area cut off for months at a time, compelling farmers to sell their crops locally at very low prices. Under the project, a 162-km section of this road will be reinforced with a concrete base/sub-base and given a clay/laterite surface, including a 6-meter wide carriageway and 1.15-meter shoulders on either side. In addition, rain gates and drainage works will be constructed to curb flooding. Once completed, over 187,000 people in Salamat, as well as thousands from outlying regions, will benefit from safer, cheaper transport of agricultural goods and year-round access to social services.

2.

Sector: Health
Project: Second Health
Amount: $8 million
Terms: Interest rate of 1% per annum; 20-year maturity, including a 5-year grace period
Approved: November 6, 2001
Executing agency: PIU under aegis of the Ministry of Public Health
Co-financiers: AfDF, Technical Assistance Fund of the AfDF, Government of Chad
Loan administrator: AfDB
Total cost: $16.23 million

Despite Government's focus on meeting the basic health needs of the population, health indicators in Chad remain poor; maternal/infant mortality rates are high, children under the age of five frequently perish from preventable causes, and the incidence of infectious diseases such as HIV/AIDS is on the rise. Reasons for this are multifold: health facilities are scarce; only one physician is available per 40,000 people, and access to safe water and sanitation is limited. This project aims to increase the number of hospitals, health centers and blood transfusion units in the prefectures of Batha, Biltine and Salamat, areas with low levels of health care coverage. Three 12,500 m² district hospitals and 31 health centers will be constructed, including housing units for a doctor and one midwife at each facility. A full-range of medication and other supplies will also be provided, as will necessary equipment and furnishings. Schemes to combat HIV/AIDS and other contagious diseases will comprise the construction of a blood bank and virology laboratory at the National Referral Hospital in the capital city N'Djamena, in addition to 16 blood transfusion units across the three prefectures. Another virology laboratory will be built at the district hospital in Kelo. An extensive training component for health care personnel across all levels will cover the diagnosis, treatment and prevention of HIV/AIDS and other related diseases, management of epidemics and blood banks, and safety procedures. Other measures include the implementation of health and hygiene campaigns.

In Chad, nearly all roads are unpaved tracks, impassable in the desert north when the sands drift and in the tropical lowlands when it rains.

Côte d'Ivoire

Sector: Education
Project: Second Basic Education Improvement
Amount: $10 million
Terms: Interest rate of 1.5% per annum; 20-year maturity, including a 5-year grace period
Approved: June 14, 2001
Executing agency: Ministry of National Education
Co-financier: Government of Côte d'Ivoire
Loan administrator: OPEC Fund
Total cost: $11.12 million

Côte d'Ivoire's Government has long been committed to developing its education sector, and is striving to provide universal free education for children between the ages of three and 15. Over the years, economic difficulties have undermined these efforts, and as a result, schools are still too few in number (especially in remote rural villages), and textbooks and other learning materials are scarce and out of date. Enrolment rates are low, and the absence of boarding facilities for girls has acted as a disincentive to their attendance. This loan will help finance the construction of 201 classrooms distributed among 67 primary schools, 46 of which will be located in rural areas. Each classroom will be furnished and provided with didactic materials and equipment. In addition, two 12-classroom secondary colleges will be built; one located in the department of Bodokro, with the other serving as an all-girl's establishment with boarding facilities in Gagnoa. Some of the schools will be used in a pilot program for the teaching of mother tongues (native languages), and over 2,600 pedagogical kits will be distributed to schools completed under a previous project. By making education more accessible, and by providing students with a comfortable learning environment, enrolment levels are expected to rise, especially among girls, and children will be encouraged to move on to higher levels of education.

Djibouti

Sector: Health
Project: Health
Amount: $2.5 million
Terms: Interest rate of 1.5% per annum; 20-year maturity, including a 5-year grace period
Approved: November 6, 2001
Executing agency: PIU of the Ministry of Health
Co-financiers: AfDF, Technical Assistance Fund of the AfDB, Government of Djibouti
Loan administrator: AfDB
Total cost: $6.27 million


Djibouti's basic social indicators fall below those of many other sub-Saharan Africa countries: incidence of communicable diseases is high, especially among children, as are maternal/infant mortality rates, and the number of individuals diagnosed with HIV/AIDS is rising. Existing health care facilities are poorly equipped and understaffed, particularly in rural regions. This project will entail the implementation of support measures to control the spread of HIV/AIDS and other contagious diseases. Four blood transfusion centers in Djibouti City will be expanded by 900 m² each and four new 100 m² ones constructed. Specialists will be enlisted to study the prevalence of HIV/AIDS in the country and its impact on the population. In Dar el Hannan, a 1,940-m², two-story extension to the existing maternity hospital will be built and fitted out with laboratory and diagnostic equipment to provide comprehensive pre- and postnatal care. All facilities financed by the project will receive a one-year supply of low cost medications that patients will purchase under a cost recovery system, thereby enabling the various centers to maintain a revolving stock of pharmaceuticals. Around 100 midwives and nurses, as well as other clinical support staff, will receive additional training. Sensitization campaigns held throughout Djibouti will educate the population about good health practices, diet during and after pregnancy, and infant and child health care, as well as preventative measures relating to contagious diseases.

Egypt

Sector: Agriculture
Project: Buhiyyah Canal Irrigation Improvement
Amount: $10 million
Terms: Interest rate of 2% per annum; 20-year maturity, including a 5-year grace period
Approved: August 28, 2001
Executing agency: Ministry of Water Resources and Irrigation
Co-financiers: AfDB, Government of Egypt
Loan administrator: AfDB
Total cost: $39.15 million

Although only 3.3% of Egypt's land is under cultivation, agriculture plays a vital role in the economy, providing over one-third of the population with jobs and producing crops for both export and domestic consumption. The country's 1,200-km irrigation network, however, is so outdated that substantial losses occur from seepage and evaporation, while the lack of proper maintenance has led to a proliferation of weeds that clog the network's drains. By the time water reaches the outlying farms, quality is very poor, resulting in soil salinity and low crop yields. These shortfalls are particularly severe among small farming communities in the governate of Daqualiyyah, which is situated in the eastern Nile Delta and served by the Buhiyyah canal. The combination of water shortages and the use of polluted drainage water has caused sharp drops in agricultural production, threatening both incomes and food security. Under the project, 19.2 km of main and 168.4 km of secondary canals in Al Buhiyyah will be rehabilitated and 28 wells constructed. Additionally, pumping stations will be installed at various intakes on a net area of approximately 20,000 ha. Extension workers will receive on-farm water management training through the use of 18 demonstration plots, and will then pass this knowledge on to other farmers. Some 24,000 families (around 100,000 people) will benefit from better crop yields, higher incomes, and increased food security.

Transporting irrigation equipment. In Egypt’s eastern Nile Delta, an inefficient irrigation network has caused falling agricultural yields.

Equatorial Guinea

Sector: Education
Project: Río Muni School Construction
Amount: $3.6 million
Terms: Interest rate of 1.25% per annum; 20-year maturity, including a 5-year grace period
Approved: March 27, 2001
Executing agency: Ministry of Education, Science and Francophone Affairs
Co-financier: Government of Equatorial Guinea
Loan administrator: OPEC Fund
Total cost: $4 million

Equatorial Guinea is composed of the archipelago, Insular Guinea, and Río Muni, or Mainland Guinea, where most of the population resides. In 1981, Government introduced an educational reform act that enabled all children to receive free basic education. As a result, both primary and secondary enrolment levels rose substantially and, over a ten-year period, the total number of students increased by almost 25,000. Despite these achievements, the quality of education remains an area of concern, particularly at primary level, which accounts for the majority of enrolments. Repetition and dropout rates are high, and learning conditions are substandard, with overcrowded classrooms, high pupil/teacher ratios, textbook shortages and lack of qualified teachers. In order to address these shortfalls, primary and secondary schools in different provinces in Río Muni will be expanded by constructing 30 extra classrooms designed to accommodate around 2,700 students in double shifts. New furniture and up-to-date teaching materials will also be provided, along with special housing for teaching staff. The new facilities will provide children with a far better learning environment in larger, more comfortable classrooms, and modern learning materials. Additionally, pupils will have more incentive to stay in school and move on to secondary education, which offers technical and vocational training that will help them gain the skills needed to obtain good jobs in the future.

Construction begins on a new school. In the past decade, enrolments have surged in Equatorial Guinea, making many schools over-crowded.

Ethiopia

1.

Sector: Transportation
Project: Addis Ababa Airport II
Amount: $4 million
Terms: Interest rate of 1% per annum; 20-year maturity, including a 5-year grace period
Approved: March 27, 2001
Executing agency: The Ethiopian Civil Aviation Authority under the Ministry of Transport and Communications
Co-financiers: BADEA, Kuwait Fund and Government of Ethiopia
Loan administrator: Kuwait Fund
Total cost: $22.07 million

Ethiopia's landlocked location and underdeveloped road infrastructure have made air travel a vital mode of transport, with the Addis Ababa International Airport serving as a major hub for East Africa. Originally built in 1962, the facility has been undergoing an upgrading program since 1997 to enable it to accommodate increased passenger and cargo traffic. To date, considerable headway has been made, with a new 3,800-m long runway and five taxiways almost completed, and other important infrastructure in the process of installation. This loan will help finance outstanding components, which include the completion of a 40,000 m² international passenger terminal and adjacent aircraft parking apron, as well as the installation of all services and facilities, car parks, lighting and roads. Also envisaged is an extensive baggage handling system, consisting of conveyors, X-ray screening and detection equipment, to provide a faster, more effective cargo service. The upgraded airport will be able to accommodate, safely and efficiently, both present and forecasted passenger traffic counts. This will strengthen the country's position as an important transportation center, and boost revenues from the expected increase in tourism, business and trade.

2.

Sector: Transportation
Project: Gore-Gambella Road
Amount: $15 million
Terms: Interest rate of 1% per annum; 20-year maturity, including a 5-year grace period
Approved: November 6, 2001
Executing agency: Ethiopian Road Authority
Co-financiers: BADEA, Government of Ethiopia
Loan administrator: BADEA
Total cost: $33.83 million

Road density in Ethiopia is among the lowest in Africa, with only an estimated 27-km of road available per 1,000 km². Just a small percentage of the network is paved, with rural areas served primarily by earth tracks that are in poor condition and prone to flooding during the wet months. These shortfalls perpetuate poverty and threaten food security for thousands of agricultural communities, which depend on road transport for bringing produce to marketplaces and outlying food-deficit regions. Ethiopia's Gore-Gambella road represents one of the country's most important west-east links, passing through rich agricultural areas where important food and cash crops are grown. Some 145-km in length, this gravel road has deteriorated to a point where travel is dangerous and virtually impossible during heavy rains, halting income generation and leaving villages isolated from vital social services. Under the project, the entire stretch will be upgraded to double bitumen standard, including a 7-m wide carriageway (6.5-m wide in mountainous areas) and 1.5 m paved shoulders on either side. Drainage structures will be installed to insure year-round travel, and worn bridges will be repaired. Once completed, some 200,000 people living in the project area will enjoy safer, more efficient travel, and the entire country will benefit from the anticipated boost to the economy from increased agricultural activity.

Ethiopia’s rugged terrain and thinly spun road network isolate millions of people from markets, health care and other vital social services.

The Gambia

Sector: Multi-sectoral
Project: Coastal Protection
Amount: $5.78 million
Terms: Interest rate of 1% per annum; 20-year maturity, including a 5-year grace period
Approved: August 28, 2001
Executing agency: The Department of State for Works, Communications and Information
Co-financiers: AfDF, Government of the Gambia
Loan administrator: AfDB
Total cost: $19.6 million

The Gambia's 81-km long coastal zone represents a valuable natural resource, abundant with heavy minerals such as quartz sand, a material extensively mined for the burgeoning construction industry. In addition, the area provides the majority of the population with jobs, especially in the fisheries and tourism sectors. However, development in this region is accelerating rapidly, placing enormous pressure on the coastline, which has undergone such intense erosion that large sections of beach have been destroyed. Gambia's capital city, Banjul, home to a major port situated on the southern bank of the Gambian River, lies directly across from the Barra Ferry Terminal. Ferries operating between these two points are the primary form of transport; however, acute silting has restricted their movements to high tide conditions. To rectify this situation, five sections of the coastline will be re-shaped and restored through the construction of groynes (low, broad walls made of sea rock) and revetments (masonry retaining walls) to halt erosion. Land reclamation activities will be implemented in some areas, and deteriorated sections restored through the use of sand-fill. Silting will be alleviated with the dredging of around 200,000 m² of sediment from the beaches at the Barra Ferry Terminal. Once completed, this initiative will lead to enhanced tourism, thereby raising household incomes from additional employment opportunities, and enabling local people to develop their small enterprises.

Ghana

Sector: Transportation
Project: Anyinam-Kumasi Road Rehabilitation
Amount: $6.67 million
Terms: Interest rate of 1% per annum; 20-year maturity, including a 5-year grace period
Approved: November 6, 2001
Executing agency: Ghana Highway Authority
Co-financiers: AfDF, Government of Ghana
Loan administrator: AfDB
Total cost: $22.17 million

Representing the dominant mode of transport, and carrying the majority of all freight and passenger traffic, Ghana's roads play a crucial role in the country's socio-economic development. Although a number of repair programs are in place, many roads are still in very poor condition. The Anyinam-Kumasi route is particularly important due to its strategic path through major agricultural and commercial areas, and its function as an integral part of the corridor leading to the capital city Accra and neighboring Burkina Faso and Côte D'Ivoire. Some 85 km in length, this stretch has deteriorated considerably, making travel slow and expensive, and placing undue hardship on farming communities that rely on the road for the transport of agricultural inputs and produce. Under the project, damaged sections will be repaired, and the entire stretch paved with an asphalt surface. A two-lane bridge will be constructed in Anyinam, while flood protection measures will entail the installation of drainage works and culverts. After completion, the newly renovated road will bring many benefits to the surrounding population, providing better access to social services and commercial centers. Farmers will be able to move their goods more quickly and cheaply, and women, who comprise the main vendors of agricultural produce along the Anyinam-Kumasi road, will enjoy a substantial boost in household incomes.

Good roads help reduce wear and tear on vehicles (and tires).

Kenya

Sector: Education
Project: Basic Education Improvement
Amount: $13.7 million
Terms: Interest rate of 1% per annum; 20-year maturity, including a 5-year grace period
Approved: November 6, 2001
Executing agency: Ministry of Education, Science and Technology
Co-financier: Government of Kenya
Loan administrator: OPEC Fund
Total cost: $15 million

Kenya's schools display marked regional disparities in enrolment rates, with the lowest occurring in the provinces located in the country's arid and semi-arid areas. Most schools in these regions lack textbooks and instructional materials and utilize teaching methods that focus on memorization with little emphasis on independent learning. Science subjects are at a particular disadvantage, since many schools lack items such as microscopes, glassware and other essential equipment. Additionally, infrastructure for accommodating children with special needs is inadequate. The objectives of this project are to strengthen access and equity in basic education and encourage the attendance of girls and children with special needs. Some 200 multi-purpose classrooms in 200 primary schools will be constructed, and an extensive range of learning materials provided. Four of the country's Special Needs Resource Centers will be fitted out with items such as Braille machines, ramps, rails and other appropriate furnishings. Additionally, 20 science laboratories in secondary schools will be constructed, and ten others refurbished, and all will be equipped accordingly. Training courses will be given for around 250 primary and secondary teachers on the use of the new scientific materials and related teaching methodologies. The project will benefit children living in some of the poorest regions in Kenya, and will also lead to greater social awareness of people with handicaps.

Lesotho

Sector: Health
Project: Health and Social Welfare
Amount: $2.6 million
Terms: Interest rate of 1.5% per annum; 20-year maturity, including a 5-year grace period
Approved: November 6, 2001
Executing agency: Ministry of Health and Social Welfare
Co-financiers: AfDF, Technical Assistance Fund of the AfDF, Government of Lesotho
Loan administrator: AfDB
Total cost: $13.48 million

Although Government has implemented a number of wide reaching health care reforms, the system is still unable to respond adequately to the country's needs. This fact is shown in health status indicators that reflect high maternal and infant mortality rates, rising incidence of infectious diseases such as respiratory illnesses, tuberculosis and HIV/AIDS, and malnutrition in children under five years of age. Access to medical care is especially limited for Lesotho's poor. Under-performance of the health care sector can be primarily attributed to a lack of qualified staff and the absence of integrated mental health and social welfare support systems. The objectives of this project are, therefore, to strengthen social welfare and mental health care delivery at the community, district and national levels, targeting the most vulnerable members of society. Activities will focus on upgrading the capital city's Mohlomi Hospital into a modern, fully equipped and operational 115-bed national referral hospital, housing geriatric, pediatric and occupational therapy units. Additionally, the country's National Health Training Hospital will be upgraded to a Faculty of Health Sciences under the National University of Lesotho, and stocked with reference books and journals. Complementary measures include a multi-faceted training component involving capacity building within Lesotho's Social Welfare Department, and targeting areas such as HIV/AIDS education, prevention, counseling and coping strategies, child protection and mental health care services.

In Lesotho’s rugged highlands, access to medical care and social services is extremely limited, primarily for lack of trained personnel.

Malawi

Sector: Transportation
Project: Liwonde-Naminga Road
Amount: $9.5 million
Terms: Interest rate of 1% per annum; 20-year maturity, including a 5-year grace period
Approved: November 6, 2001
Executing agency: National Road Authority
Co-financier: Government of Malawi
Loan administrator: OPEC Fund
Total cost: $10.51 million

Malawi's tropical climate and fertile soils provide an ideal growing environment for cash crops, as well as catering for the food needs of its 10.8 million-strong population. Being a landlocked country, road transportation plays a vital role in the movement of both domestic supplies and exports. The quality of the 14,594-km network, however, is poor, with only around 2,900 km being paved. As a result, transport efficiency has become severely limited, compromising the livelihoods of numerous agricultural communities and leaving many isolated. Malawi's Liwonde-Naminga corridor serves rich agricultural areas, but over the years it has become extremely worn, and associated bridges and drainage structures have fallen into disrepair. Under this project, 23 km of this stretch will be rehabilitated to bitumen standard and three km of new road will be built. A new bridge will be constructed over the Nubuzi River, and an existing one repaired. Road safety will be enhanced through the provision of new traffic signs, road markings and guardrails, and culverts installed to prevent flooding. Once these improvements have taken place, the project will bring benefits to both urban and rural populations by facilitating the international and interregional exchange of goods, as well as offering employment opportunities both during and after its implementation.

Waiting for a ride in Malawi. In most land-locked African countries, better road transport is essential for social and economic development.

Mauritania

Sector: Multi-sectoral
Project: Multisectoral Poverty Alleviation
Amount: $3.5 million
Terms: Interest rate of 1.25% per annum; 20-year maturity, including a 5-year grace period
Approved: November 6, 2001
Executing agencies: Project Implementation Unit, Commissariat for Human Rights to Combat Poverty
Co-financiers: IFAD, beneficiaries, Government of Mauritania
Loan administrator: UNOPS
Total cost: $22.94 million

Mauritania faces a number of challenges, including a fragile environment, a weak human resource base and widespread poverty, particularly in rural areas. In response to this situation, Government has adopted a strategy to combat poverty by providing under-served communities with access to potable water, safe sanitation and housing, as well as educational and health facilities. This multi-pronged scheme falls within the scope of these aims, and will focus on the provinces N'Bout, Kankossa and Ould Yenge, areas with poor social indicators, and whose inhabitants rely primarily on agriculture for income generation. Works will include institution strengthening and capacity building across all sectors, and the upgrading of basic infrastructure such as roads, schools and health and sanitation facilities. Agricultural production will be promoted through the rehabilitation of land, erosion control and soil conservation measures, as well as the provision of specialists who will introduce a wide range of modern farming and cultivation techniques. Literacy courses will be made available to some 14,000 people, half of them women. Sensitization campaigns will disseminate information about preventative health care, hygiene, and sanitation. Twelve micro-credit institutions will be set up to assist landless individuals and women in setting up their own small businesses. Throughout the project's implementation, participation of the rural population in the community development process will be encouraged. After completion, at least 150,000 people will be able to enjoy improved living conditions, better health and access to essential social services.

A project in Mauritania will combat poverty by providing clean water, housing, schools, health care centers, and literacy courses for women.

Mozambique

1.

Sector: Energy
Project: Rural Electrification
Amount: $6.9 million
Terms: Interest rate of 1% per annum; 20-year maturity, including a 5-year grace period
Approved: June 14, 2001
Executing agency: Mozambique Electricity Company
Co-financiers: AfDF, Government of Mozambique
Loan administrator: AfDB
Total cost: $24.1 million

Although Mozambique is endowed with a variety of primary energy sources, including coal, hydropower and gas, over 90% of its energy consumption is derived from fuel-wood and charcoal. Efforts made to connect more households to the national power grid have been hampered by a combination of high poverty levels, a widely scattered population, and limited public resources, problems aggravated by the floods that struck the country in March 2000. This loan will support an initiative to provide electrical power to rural communities within the scope of a government scheme to strengthen the country's entire energy sector and, ultimately, enhance economic growth. Electrification works will be conducted in the areas most severely affected by the flooding, namely the Gaza, Inhambane, Maputo and Nampula provinces. In all, some 816-km of medium and 68-km of low voltage lines will be installed, 72 transformer stations built, and 1,800 street lighting points constructed along main roads. Over 7,000 households will be newly connected to the network, and the reliability of service for existing customers will improve substantially. Modern energy sources will help the country's numerous small and medium-scale enterprises, many of which are run by women. The improved access to electricity is also expected to enhance tourism and boost agricultural output from improved irrigation, benefiting in all some 450,000 people.

2.

Sector: Education
Project: Education IV
Amount: $9.2 million
Terms: Interest rate of 1% per annum; 20-year maturity, including a 5-year grace period
Approved: November 6, 2001
Executing agency: Ministry of Education
Co-financiers: AfDF, Government of Mozambique
Loan administrator: AfDB
Total cost: $24.29 million

After experiencing years of civil strife that resulted in over 3,400 schools being either damaged or destroyed, Mozambique's educational system has fallen into disarray. Classrooms are overcrowded, textbooks and equipment scarce and outdated, and many schools lack appropriate sanitation and boarding facilities. This situation has a negative effect on attendance, especially among girls. Additionally, there is a shortage of qualified teaching staff and student-to-teacher ratios are high. The country's Technical and Vocational Education (TVE) centers are similarly under-served, hampering the development of Mozambique's human resource potential. Under the project, works will focus on four rural provinces with the least amount of coverage, namely Cabo Delgado, Nampula, Niassa and Zambesia, where six secondary schools will be upgraded and two new ones constructed. Each will be fully supplied with books and laboratory equipment, and dormitories will be built to house some 200 female students. Three TVEs will be rehabilitated, while another will be modified and converted into a teacher training college. Teachers and trainees across all levels will receive pre- and in-service training, and a number of capacity-building programs will be implemented to strengthen the entire educational system. Gender sensitive curricula will be introduced that will have a positive impact on societal attitudes towards women both within and outside the school system. The initiative will ultimately increase the country's skilled workforce and in turn, reduce poverty levels considerably.

In Mozambique, where 45% of all educational facilities were destroyed, a Fund loan will help build schools and provide dormitories for girls.

Senegal

Sector: Transportation
Project: Rural Roads
Amount: $6.25 million
Terms: Interest rate of 1.25% per annum; 20-year maturity, including a 5-year grace period
Approved: November 6, 2001
Executing agency: National Implementation Unit, under the aegis of the Steering Committee
Co-financiers: AfDF, rural communities, Government of Senegal
Loan administrator: AfDB
Total cost: $26.13 million

Although Senegal has limited natural resources and relatively poor soil for cultivation, agriculture still provides over three-quarters of its ten million-strong population with jobs. The country's extreme climatic fluctuations, ranging from heavy rains and flooding to long periods of drought, have adversely affected output over the past few decades, and as a result, an estimated 80% of Senegal's inhabitants live in poverty. Government has recently launched a rural recovery program, under which the current Fund-co-financed rehabilitation scheme falls. The main objective of the project is to facilitate rural communities' access to main villages and towns, thereby linking key agricultural production regions to marketplaces. Some 90 rural communities in nine regions will be targeted, namely, Diourbel, Louga, Fatick, Kaolack, Kolda, Saint-Louis, Tambacounda, Thiès and Zinguichor, comprising around 1.4 million people. Some 1,800-km of roads will be upgraded, with the communities themselves defining the level of service required through the help of training programs. This information, along with an assessment that will be conducted to evaluate which roads are in most critical need of rehabilitation, will determine what type of works will be undertaken. The improved network will help boost economic activity through easier access to commercial centers, and allow many previously isolated villages to reach educational facilities, health services and jobs.

A road rehabilitation project will contribute to economic recovery in rural Senegal by reducing operating costs and improving links to markets.

Tanzania

Sector: Transportation
Project: Rural Roads
Amount: $8 million
Terms: Interest rate of 1% per annum; 20-year maturity, including a 5-year grace period
Approved: November 6, 2001
Executing agency: Tanzania National Roads Authority
Co-financier: Government of Tanzania
Loan administrator: OPEC Fund
Total cost: $8.8 million

With road transport accounting for more than 80% of Tanzania's total internal flow, it plays a vital role in the country's economic activity through the movement of agricultural produce, inputs and people. However, the lack of periodic maintenance has led to deterioration of the 85,000-km network, of which only a small percentage is paved. Although Government has recently made strides in carrying out upgrading and repair works, around 65% of the roads are still in poor condition, a situation made worse by the occurrence of severe flooding in 1999. The Fund loan will help finance an initiative to upgrade seven earth roads that are in urgent need of rehabilitation in two of the country's poorest regions: Limdi, situated in southeastern Tanzania, and Kigoma, located in the west. Under the project, a total of 350-km of earth track will be upgraded to a 150-m thick gravel surface and a total width of 5.5 m, including 0.5 meter shoulders on either side. Drainage structures will be installed to insure the network is protected from flooding. The project will have a substantial socio-economic impact on the areas' two million inhabitants by providing a cheaper, faster link to marketplaces and food deficit regions, as well as to important social services.

In Tanzania, a road project, co-financed by the Fund, will help rehabilitate 350 km of dusty tracks in two of the poorest regions.

Zambia

Sector: Health
Project: Cancer Diseases Hospital
Amount: $5.6 million
Terms: Interest rate of 1% per annum; 20-year maturity, including a 5-year grace period
Approved: August 28, 2001
Executing agency: Ministry of Health
Co-financier: Government of Zambia
Loan administrator: OPEC Fund
Total cost: $6 million

Although Zambia's government has established a number of measures to address the country's growing cancer rates, including nationwide awareness campaigns and early detection programs, cancer-related deaths are still on the rise. The main reasons for this are the high patient/physician ratio (one physician available per 10,000 people) and the absence of a national cancer treatment facility. At present, patients must travel abroad for radiotherapy treatment. While the government covers most of the costs, a financial contribution is also required from the patient, an option that is out of reach for most Zambians. In addition, qualified personnel are scarce. In response to this urgent need, a cancer treatment unit, with potential for expansion, will be constructed at the University of Zambia Teaching Hospital in the capital city Lusaka. The center will house radiation therapy equipment, and, for convenience, will be situated in close proximity to the pathology, nuclear medicine and radiology departments. The establishment of a national cancer center, which will be capable of treating some 1,200 patients per year, will substantially cut healthcare costs and promote early diagnosis and treatment of the disease. Professionals will be encouraged to undergo advanced oncology training programs, and it is hoped that many healthcare professionals who had previously left Zambia to practice elsewhere will return.