Conclusions of the Field Research
Annex 1 Summary of Case Studies
Case 01
Date visited 2010.08.28
Interview Manager with Interpreter, by S. van der Lugt & H. Petersen.
Country Democratic Republic of Congo
Project Name Projet Travaux de Rehabilitation de la Route Nsele-Lufimi, Lot 1 Project Type Transport Infrastructure – Road Rehabilitation Project Funding Agencies World Bank, AfDB, EU
Project Details Lot 1: 94 km of 2-lane paved road with asphaltic concrete, in rolling to mountainous terrain. Traversing sparsely populated area between Kinshasa and a few major towns. The road is part of the road between Kinshasa and Bandundu and is important for food supply to Kinshasa. The project will constitute part of the road which will eventually link Kinshasa and Lubumbashi.
Project History The road was initially studied by World Bank prior to the 1999-2003 civil war. After the war the project was continued by a co-financing arrangement between WB, AfDB and EU.
Observations • Advance payment of 20% was paid but no Interim Pay Certificates have been paid by the Congolese Government although they are approved by the supervising consultant.
• This is the Sinohydro’s first AfDB contract.
• Environmental Impact Assessment and Social Impact Assessment were undertaken by Sinohydro but implementation of social measures: compensation and resettlement is undertaken by the Congolese Government.
• Labour: Locally employed and Chinese workers (core of administrative, managerial and technical staff). Technical staff from PRC undertakes training of local labour, drivers and operators. Typical work force is 81 Chinese and 1500 Congolese workers. Employment and training is a prerequisite of the construction contract. Labour conditions are in accordance with Congolese law. Employment of women is not considered for construction work which is considered too dangerous for women. Daily salaries for basic labour are about USD 3 which is considered higher than the salaries generally paid along the road.
• Materials: Locally if possible, supplemented by supplies from South Africa, Kenya, Germany and China when specifications cannot be met locally (e.g. cement, bitumen)
• Machines: PRC
Case 02
Date visited 2010.08.29
Interview Manager with Interpreter, by S. van der Lugt & H. Petersen.
Country Democratic Republic of Congo Project Name Boulevard du 30 Juin
Project Type Transport Infrastructure – Urban Road Reconstruction Project
Funding Agencies !st stage: Congolese Government funds 4 km, PRC funds 1.3 km as Development Aid. 2nd stage, 2.58 km, WB and AfDB.
Client Ministry of Reconstruction Implementing
Agency
Agence Congolaise des Grands Travaux (Sino-Congolese Programme)
Contractor Chinese Railway Engineering Company, CREC7. CREC is itself one of the 3 partners in the Sicomines agreement.
Supervising Consultant
Office de Voivie et Drainage?
Funding by PRC Export-Import Bank, Sicomines agreement
Contract Amount 1st stage: USD 27.8 million. 2nd stage: USD23 million.
Commencement January 2009
Completion 1st stage December 2010. 2nd Stage: 31st December 2010.
Project Details Road length, 1st stage: 5.3 km. 2nd stage: 2.58 km Project History
Observations • Government controls everything regarding Social and Environmental Impact Assessment.
Compensation under SIA is also in the loan.
• Labour: 30 Chinese and 400 Congolese. 3 Congolese managers to solve communication problems. Training was provided in work skills and safety aspects. For labour protection uniform, gloves, shoes were issued. Adherence to Congolese labour laws. Salary for basic labour USD 3-4 per day.
• Maintenance provided for 2 years. Money appears available but no skilled Congolese staff and lack of equipment.
• Materials provided locally and from South Africa and Zambia
• Plant and equipment are imported from China, Germany and Europe.Project exempt from tax.
Case 03
Date visited 2010.08.29
Interview Manager with Interpreter, by S. van der Lugt & H. Petersen.
Country Democratic Republic of Congo Project Name Boulevard Triomphal
Project Type Transport Infrastructure – Urban Road Reconstruction Project Funding Agencies Export-Import Bank
Client Agence Congolaise des Grands Travaux Implementing
Agency
Agence Congolaise des Grands Travaux (Sino-Congolese Programme)
Contractor Chinese Railway Engineering Company, CREC8. CREC is itself one of the 3 partners in the Sicomines agreement.
Supervising Consultant
Office de Voivie et Drainage?
Funding by PRC Export-Import Bank, Sicomines agreement
Contract Amount 1st stage: USD 27.8 million. 2nd stage: USD23 million.
Commencement November 2009
Completion 1st stage 30th June 2010. 2nd Stage: 31st December 2010.
Project Details Road width: 8 lanes.
Road length, 1st stage: 1.5 km, 8 lanes. 2nd stage: 2.15 km, 6 lane carriageway funded by PRC.
Unavoidable traffic capacity problems at junction between stage 1 and 2. The missing lanes might be provided as an elevated highway in future but no funding for this was identified.
Road cross section: for 8 lanes: 44m wide
Project History The project was undertaken at the request of the Congolese Government under the Sicomines agreement. It conforms with the policy of the Congolese Government Cinque Chantiers of which infrastructure is one chain-link and is given high priority.
Observations Social Impact: There has been need for removal of a few houses. This has been done by CREC8, apparently without compensation. According to CREC8 there was no reaction from the local population.
Sourcing of input:
• Labour: 90 Chinese and 500 Congolese. Training was provided for 3 months in work skills and safety aspects. Meetings are staged with labourers only if something goes wrong. One Congolese is working in management. Two Chinese and one Congolese women are working respectively in administration and the kitchen.
• Basic salary for labourers is USD 4-5 per day for an 8 hour working day. Drivers are paid USD 6 per day. Overtime is paid.
• Materials provided locally except when specifications for e.g. cement and steel cannot be met.
Sourcing is then done regionally.
• Plant and equipment, traffic light and traffic signals are imported from China.
Case 04
Date visited 2010.08.29
Interview Engineer with Interpreter, by S. van der Lugt & H. Petersen.
Country Democratic Republic of Congo Project Name Avenue des Touristes
Project Type Transport Infrastructure – Urban Road Construction Project Funding Agencies Export-Import Bank
Client Agence Congolaise des Grands Travaux Implementing
Agency
Agence Congolaise des Grands Travaux (Sino-Congolese Programme)
Contractor Chinese Railway Engineering Company, CREC8. CREC is itself one of the 3 partners in the Sicomines agreement.
Supervising Consultant
?
Funding by PRC ? Contract Amount ?
Commencement March 2009 Completion 30 September 2010 Project Details Road width: 6 lanes.
Road length: 6 km.
Project History The project was undertaken at the request of the Congolese Government under the Sicomines agreement. It conforms with the policy of the Congolese Government Cinque Chantiers of which infrastructure is one chain-link and is given high priority.
Observations Social Impact: Limited surveys of affected properties, not affected people were carried out by CREC8 on behalf of ACGT. The surveys were given to the ACGT who undertook any requirements considered necessary due to project affected properties.
• Labour: 26 Chinese and 130 Congolese men and 2 Chinese and 1 Congolese women.
Case 05
Date visited 2010.08.29
Interview Project Manager with Interpreter, by S. van der Lugt & H. Petersen.
Country Democratic Republic of Congo
Project Name L’Hopitale du Cinquantenaire, Hospital at Av. Moun Fleuhy No. 73 Project Type Transport Infrastructure – Urban Road Construction Project Funding Agencies Export-Import Bank
Client Agence Congolaise des Grands Travaux Implementing
Agency
?
Contractor Sinohydro
Supervising Consultant
?
Funding by PRC Development Aid by PRC. Grant.
Contract Amount
Commencement March 2009 Completion 30 September 2010
Project Details Hospital project for 2000 patients.
Project History The project was initially designed by Belgian consultants. The construction was abandoned during the civil war. After the war there were talks between the governments of DRC and PRC. The PRC agreed in 2008 to fund (grant) the project including major extensions to accommodate 2000 patients.
Observations Social Impact: Surveys of affected properties, not peoples, was carried out by CREC8 on behalf of ACGT.
The surveys were given to the ACGT who undertook any requirements considered necessary due to project affected properties.
• Labour: 280 Chinese and 300 Congolese labourers and 50 Chinese managerial staff 7 Chinese women in administration and 10 Chinese and 10 Congolese women in kitchen and cleaning services. Training in safety procedures. No fatal accidents.
• There was no training in maintenance and use of equipment and operation and maintenance programmes for the operation and maintenance of the hospital was known by the persons interviewed.
Case 06
Date visited 2010.08.31
Interview Resident with Interpreter, by H. Petersen.
Country Democratic Republic of Congo Project Name Projet Boulevard Lumumba
Project Type Transport Infrastructure – Urban Road Rehabilitation Project Funding Agencies Congolese Government
Client Ministry of Reconstruction Implementing
Agency
?
Contractor Chinese Road and Bridge Company, CRBC Supervising
Consultant
Office de Voivie et Drainage?
Funding by PRC None Contract Amount USD 50 million Commencement September 2009 Completion December 2011
Project Details Road cross section: 8 lanes including 2 collector/distributor roads.
Observations The project was visited briefly in order to learn from residents along the road of their experiences with the project implementation.
• Resident was visited for interview regarding criticism of the project. The resident (Paulin Kapandongo, No. 1300, Petit Boulevard Lumumba) explained that the project was being implemented with limited impact to the residents along the road and that the project was considered very good improvement of pre-project conditions.
• Labour: 80 Chinese and 400 Congolese men and 5 Chinese and 10 Congolese women. Training provided in work skills and safety techniques.
• Salary for basic labour: USD 4 per day.
• The project is a business venture for the Chinese contractor.
Case 07
Date visited 2010.08.31, 18.00-19.00 & 2010.09.01 Interview Engineer with Interpreter, by H. Petersen.
Country Democratic Republic of Congo Project Name Projet Lubumbashi Biayi Street
Project Type Transport Infrastructure – Urban Road Pavement Reconstruction Project Funding Katanga Provincial Government
Contract Amount Construction costs USD 1,000,000 for the main road (5.6 km) and USD 500,000 for the access roads (7 km). Administrative costs and overheads were included in other urban road projects
Commencement ?
Completion June 2010
Project Details Length of main road, 5.6 km, and access roads, 7 km. Pavement 4cm AC, 25 cm lateritic gravel base course on recycled existing pavement as sub-base. Drainage works including several culverts, and 1 bridge. Contract did not include pavement marking, road signs and road furniture.
Project History
Observations • Sourcing of input:
o Labour: 25 Chinese and 40 (peak) Congolese labourers, 2 Chinese and 15-20 Congolese drivers and operators, 2-3 engineers and administrative staff mixed with other projects.
o Salary for labourers USD 200 per month.
o Training in vocational skill and safety was provided
• Pavement works appeared to be of a good quality.
• Road roughness was visually overall estimated to be 1.5 m/km (IRI).
• Drains cleaned.
• No markings or signs.
• The manager (Sylvie Mwanza) of a restaurant along the road was interviewed for her opinion of the project, she said it was a good project and that nobody criticises the project.
Case 08
Date visited 2010.09.01
Interview Site Manager with Interpreter, by H. Petersen.
Country Democratic Republic of Congo
Project Name Reconstruction of Lubumbashi (N1) – Kasenga (Zambian Border) Road Project Project Type Transport Infrastructure – Road Reconstruction Project
Funding Export-Import Bank, Part of the Sicomines agreement
Client Agence Congolaise des Grands Travaux (Programme Sino-Congolese) Implementing
Agency
Agence Congolaise des Grands Travaux (Programme Sino-Congolese)
Contractor Chinese Railway Engineering Company, CREC7 & 9 Supervising
Consultant
Congolese Reconstruction Institute?
Contract Amount Section 1 (137 km): USD 100 mil. Section 2: unknown contract amount (70 km) Commencement February 2009
Completion December 2010
Project Details Length of main road: Section 1: 137 km and section 2: 70 km. Width of carriageway: 7.0 m, 2 x 1.0 m hard shoulders, 5 cm asphaltic concrete, general rise of embankment by 0.5 m, drainage
rehabilitation/reconstruction. Design, EIA and SIA carried out by CREC design institute, EIA and SIA mitigation measures and compensation, 5 years defect liability period. Out of the 137 km of section 1 had 120 km been completed.
Project History
Observations • Maintenance condition: no grass cutting, damaged slopes of embankment.
• No life-cycle maintenance programme produced.
• Pavement works appeared to be of a good quality.
• Road roughness was visually estimated to be 1.5 – 2.0 m/km (IRI). A good result.
• Limited traffic (seen around 10-11 AM).
• Sourcing of input:
o Materials: Locally or regionally o Equipment: PRC. Tax/duty excerpted.
o Labour: 100 Chinese and 600 Congolese labourers and engineers, 10 Chinese and 20 Congolese women in administration, etc.
o Salary for basic labourers for a 24 day work month: USD 120 plus USD 1 per day for lunch.
o Training is provided in vocational skill and safety.
• Investment project for contractor. No toll anticipated. Advance received subsequent payments from the barter trade.
Other information Relevance:
• To carry agricultural products to Lubumbashi and some onwards to Kinshasa
• Access to Zambia
• Link to Kasenga (big town)
Case 09
Date visited 2010.09.02
Interviews Sinohydro Site Manager and Staff, KNBEPC Director and Staff, by Li Ming and H. Petersen.
Country The Republic of Zambia
Project Name Kariba North Bank Extension Project, Project Type Transport Infrastructure – Energy/Hydropower
Funding Buyer’s Credit Loan from Export-Import Bank of China (85%), ZESCO (KNBEPC) (15%) Client Zambia Electricity Supply Corporation Limited (ZESCO)
Implementing
Contract Amount USD 279 million equivalent. (EPC Contract) Commencement 5 November 2008
Completion November 2012. A time-extension may be required due to a recent fire on the project.
Project Details Extension of existing power generating capacity of 720 MW (4 turbines) by 360 MW (2 Turbines).
Project History The existing hydropower plant was constructed in the late 1970’ies.
Consultation of WB for extension of the existing facility was ongoing from the 1990’ies. Government of Zambia undertook in 1995 and 1996 feasibility studies for power generation at Kafue Gorge Lower and Itezhi-tezhi.
The Government of Zambia approached in 1997 the WB for financing. WB would only finance a power rehabilitation project including power generation infrastructure, transmission, distribution and capacity building amounting to USD 200 million. An office: OPPPI was established to identify financing.
During 1997-2003 the OPPPI looked for financing without results.
ZESCO undertook in 2002 a feasibility study of the KNBE. The WB declined financing the KNBE, KGLE and Itezhi-tezhi and the Government of Zambia turned to the PRC for assistance. The PRC secured financing.
In 2006 the WB came in with IFC as funding agency and again delayed project implementation of the Kafue Gorge Lower Extension project by requesting time for new feasibility study and packaging investors.
The Kariba North Bank Extension Project was launched in November 2008 with Chinese financing.
The Kafue Gorge Lower Extension Project was launched in August 2010 with financing through Sinohydro, China Development Bank and China Africa Development Fund.
Observations • ZESCO has established the Kariba North Bank Extension Power Corporation Ltd. to implement and operate the extension.
• Sinohydro has been contracted for engineering, procurement and construction.
• The project has not yet reached financial closure but flexibility from Sinohydro has lead to good progress.
• Sourcing of input:
o Materials: Locally or when specifications are not met by Zambian products regionally, e.g. cement and steel
o Plant and Equipment: PRC
o Labour: 100 Chinese and 300 Zambian labourers and engineers, of which 2 and 3 respectively are Chinese and Congolese women in administration, etc. There is no
formal organisation for labour grievances. No conflicts have been experienced.
o Training in vocational skill and safety is provided. Safety is high on the agenda.
Training is required by the contract.
• There are extensive quality control systems for deliveries and works
• Sustainability is not considered a risk by KNBEPC since:
o Sinohydro is doing the job according to the applicable specifications, international norms and standards
o Problems are being discussed/solved in a mutually cooperative manner
o Experience is being built up in the ongoing activites and exists from operation and maintenance of other existing plants.
• Stakeholders were according to KNBEPC: KNBEPC, Government of Zambia, Sinohydro, Sivaonga District, Zambezi River Authority, financiers and customers.
• Impacts (KNBEPC):
o No adverse environmental nor social impact since the project is an extension o Construction noise may be experienced (blasting)
o No Health problems o More employment o Enhanced standards of living
o More reliable power to the Nation and to nearby.
Other information • Lessons learned (KNBEPC):
o Grateful that the Chinese Government has been fast in agreeing to the project, and has not introduced strenuous conditions for the credit.
o Finalisation of funding issues took a bit long
o Solution to the absence of financial closure was found (Sinohydro flexibility)