ge 'w; * . ' '# 's .

'!' x . Y

A/RICAN DEVELOPMENT FUND

B E N I N

COM PLETION REPORT

PROJECT: NATIONAL TELECOM M UNICATIONS NETW ORKM AINTENANCE IM PROVEM ENT PLAN

COUNTRY O PERATIONS DEPARTM ENTW EST REGION NOVEM BER 1996

TABLE OF CONTENTSjàge

PROJECT MATRIX

BASIC DATA

1 INTRODUCTION

1 .1 Bank Group Operatidns in the Sector1 .2 Project Location1 .3 Sources of Information

2 SECTORAL OBJECTIVES AND PURPOSE OF PROJECT

k2.1 Sectoral Oblective

2.2 Purqose of the Project2.3 Prq ect Description

3 PROJECT FORMULATION

3.1 Origin .3.2 Preparation, Appraisal, Negotiation and Approval

4 PROJECT IMPLEM ENTATION

4.1 Effectiveness and Start-up4.2 M odifications4.3 Im plementation Schedule4.4 Reports4.5 Procurement of Goods and Services4.6' Costs, Sources of Finance and Disbursements

5 OPERATIONAL PERFORMANCE ANDOPERATING INCOME

5. 1 Overall Evaluation5.2 Operating Income

à INSTITUTIONAL PERFORMANCE

6.1 Organization and M anagement of the Executing Agency6.2 Training and Skills Upgràding '6.3 Accounting and Auditing of Accounts6.4 Billing and Debt Recovery6.5 Tariffs6.6 Performance Contract6.7 Borrower's Perform ance6.8 Executing Agency's Performance6.9 Performance of Consultlants/suppliers

1- 1 X

111

112

23

344555

88

991 01 01 11 1111112

'-W = T 'C.N = . vv r=r T r 'rr/ 'P.*r> 7

:.

7 FINANCIAL PERFORMANCE

7.1 Com fparative Operational Trend 12' 2' Anàlyùis of the Financial Strûèturé 1 47. ). vi .

;.7.3 Pfqèct Financial Returns 1 5I . .7

-4 Financial Conditibns and Clauses' 1 5

I8 ECONOM IC PERFORMANCE 15

9 SOCIAL REPERCUSSIONS

9. 1 Sp.cialj Impacts 1 6:9.2 Impiaots on W omen 1 6

'

. . j '10 ENVIROMMENTAL IM PACTS 16' . e

1 1 SUSTAINABILITY OF ACHIEVEMENTZS 16

12 BA' NK PERFORMANCE 17

: ' =Z .

>=# œ1 3 CO NOLUSIONS, LESSONS AND REC?OM M' S'N. DATIONS. ,. j . ), . .: ' .!7,......f

13.1 .

'Conclusions 17- - l ;. l1 3

.2 Leàsons 1 81 ' . : j . .13

.3 Recortlmendations 18

. . 1 ' ' . 1 . . ' , . . '. ;- ' .. . . k .'This ieport ha 's been prepared by Messrs.'. 'D. N1.

'$KI' 'lkmy'z A' '.:; T4Ièto.m' 'munïieyhtip. EnysdEt.. '. 'g..inberedn. d. . . 1. . . .kJ:. . J:!:' . . ?'Jk t:... ..a. . .

R. K POM ALEGNI, C onsultanl, Fina'hcxi'al Aii' 'aI'#,t' f ', 'zfiblfbrw,inçl 'thdir. 1. i.stàion. $to'.1B- 'éhin from.

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27 Ottober t 'o 09 November 1996.' !'>L ':

oï e',.u..':1iJ.u...J:- è-.z, -;.= ...x& .u -..1 ---- J5 r-xa.J-.-. sx--.x.-u'' '. .. .u.n..iL...-... -x-.. . . ..-

LIST OF ANNEXES

Number Title o'N mber'ùf Paoesu

2.

3.

4.

5.

Telecommunications Network Map

Sources of Information '

OPT'S Organization Chart

Comparative Im plementation Schedule

Indicatörs of Quality Service Objectives andMâin Project Achievements '

Comparative Operating Accounts (1988-1995)

Balance Sheet (1988-1995)

Calculation of the IFRR

Calculation of the IERR

6.

1

1

1 . '

1

2

-1 ,, . : , .

8 .

. 9 .

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N m.'rxynwv! .

è ::g. .g.lyvlhyjoxs .EQUIVALENTS AND .A,B z . . ,z .g

At ' . . . 1-): : - . - -currenlv .

.E..q..,p1v##.izsëBenin's currency uniti CFA Franc

i'n Julv 1 989 in Novem' b.:.r .1' 499.6r p 'y. v ';' '( ZY Y / / F Q i S Z 1 ) J Jtdt # Y2' 1)

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'

U X 1 V C F A F 4 1 3 . 3 1 1 5 C' - F A F ' ' 1 '3' F. 6' 1 zt .' C F A '' F '. :. '

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--.àyàrtkiatlèzwï'- . i'' . . .

, Ao.:. : African. Develoqa-qnt Bank .à. l cais' se Autonùi-ie. ar-xemod. 'rttiî'kà-ré'è. 'zi'trCA .. . .t

CC ': Cross-connéction Cabin:ts1 . ' - -.7 :. '. ' .t.'.LCP concentration Pointt

F.E. : Foreign Exchange- j oeoeratorG

trGvt : Government'

à . . j..jj- jc' ' 'k ( -s :I#U International Telecommunicàtions n ont ,

.

L.C. : Local Currency1 Main T:lephone LinesM

.L. . y'M M C : M ain M aintenance C'entre

.1 National Maintenance 'Imprévemént PlanNM IP'

. 1 .. ionsOPT : Office des post. es et téléoo&muo. ipM

. , . t . . . . j,j y j ogs yPANAFTEL Réseau panafricain des télécormmu cat1PCR : Pruject Completion Reportt

Radio LinkRL tS/W : Staff W eeks

1 United Nations Development Progrpm meUNDP ;

t FISCAL YEARk '''

!j .At appraisal : 1st Januafy - 3,1 DiqemberAt ci mpletion 1st January - 31 D ecember

i

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, 6 *!-. a.. py?<t .;œ

> W : @. *1*1*-'-.0* .:

N.rr.tive nescriptlon (NDI Objettivelv Verifiabfe Indicatoes (OV1) Mean. of Veeiflrlti* lMvj Impoet.fit A:euppllns .

S*ctorRl Obiective: (Sect-obi. to Supreme ob).):

1 Provide the counta with * 1 .1 The tele-densitv will be about 1 . 1 Telecornmtmications statisticl. 1 The tountey': ecoreecreliabl@ tvl*communication: 1 .26 ML/IX inhabilants bv the ' xilu@tion i: inçeeulnglyn@l- rk offerinp possibilillel of yeae 2* 5. improvlg.telephone .nd telex connections. .

Noject Rlrp@$:: . (Go. Obi. . Seet. Obj.):

1 Ie ove th. qualiw of service 1. 1 In 1 995. the main quality service . 1 .1 OPT*S mldy Matus repoet. . 1 Pr@cG@ '- - 4* fe O kItqn.nc@ tolfered 1* telecemmunications indicators will be: ifv ou- n, wer@ m.d. onu$@T:. schedtl?.

- rapidity of fault detection in 7days: 9O% 2 St.fl je@ining .nd Rqui:ilion ol- numbee of line f@ults a year per nelwlfk eqvipment wef* @nsubseriber: 0.76 scheduh.- call efficiency fate: kaal: *99.50% and ipter-urban * ..79.37*:- dial tene waiting time: below 3seçonds for 99.96% ofsubscribers;-peoductivity ol personnel: 49workees lof 1 (XX) Mt.

2.1 Telepe ne connection capacitv k' 2.1 opr: yeao ltatta eep- .2 ***@, the ending dem@nd. 1 996: 37 1 20 Mt. .

3. *nk* net- ek opeeltion 2.2 Abomey .nd Vhicln netwoeksprolitable .nd cfepte tonditions renovated and modernized witb af@r itl deve p- nt. lrans- cappcity ef 1 4* pairl. .

AçN@ve- ntl: 1Aftu@1 . > . œ /.1;. >

1 Cable netwœkl eenovpted 1.1 Exlension of the Abome: and 1.1 R din: dtiru- nt:; etmteletF A*e- -'-- - f/ > e @n*<@. GhitO Ioeal networkN. . <tb Kupl- : parte - e t ie- @u- nt ''--@ G d@ *

statul :*pM :; stlpervislon :c*.- -*'œ- '- mlssion*. ' ' '

. z st.tf t-ke' ' , ---* aeq.x=-' of2 Gwer emeinmenl lnsl.lled 2.1 8 RL stations solarized and 6 2. l idem **-'- - w@r@ e- e @ut @n

. . '-'

. - -a. ageneTators instaqed. : *.

2.2 13 b*eterieg epd 10 receifierl 2.J .tœ-' -kutalled; mepsueiY equipment.sundw lo* . :p*fe part: of ' .genee*tors @nd rectlfiee. *cqt*e .

3 Swit ' eqtlip- t ifut*œ . 3.1 N*w 512-l1n* telex cerqee ' 3.1 Id@minlt.- *nd extefuion lf th@ .OCB 283 avlo- tk switcb

. yeajjru .

4 Tr*nlmis:le equipment. 4.1 Meastl'k,g equipment peecured 4. 1 idem .fef Rk stations *nd mainten*neefelmg. '

4.2 Ferming of 12 RL statioru @nd 4.2 idemeartbiog of 10 Rt stations.

4.3 Multiplex equipmenl and Npme . 4.3 ider '. yjayys aco yaa.

5 ' + * *nd eqe f-nt @f th@ 5.l 24 vehicju of dlffefenl twe. 1 5. 1 idemColoO u lfl a flkx m*k' reel-earrWng tr*itee and 5m intenplxe œ tfel .cqtlifed. feel-carrying teaitees (small modelp

acquifed. '

5.2 Nainkw abroad of 6 teçhnkiang 5.2 idemfoe the M6 mevded. ' .

6. ! qecrtlitnv t ol * measuring 6. 1 idem .6 Tf/ifling @f e - pe0'-''*-œ equip- t tecM ical expen for 2

s/months of tfaining effected.

> O TELEO MSY - N @a4*: Ott@er 1*96

. . ,u ...x. ' x.s..ratusBENIN : NATIONAL-MA. IG ENANC-E IYMOVEMO M N ( AM- l-eoG - t - é'' pege 1 ok 2 '

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t!t. Q.*, ()t).1! :k: ' ::-v1.ïtw! , . $ , t

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1!1 iI!:. 1$1. .1. I$j !Ik:. s ISI âI1(1:1: 1 1:14 l$l d4tIz....l.u....I$lI. j4lj 1 Iid1;1I:.1!: Ijlljllllql 333Lw-. 1E: .;. .1$111. ..1!1 111 1:1). z j 1!: 1$19 ;1' 111 1k..91; jlll 4! ,; ' 1,k11)' 1j.yj;,jz. 'gjyyyjrt

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'. !' . . .- . . , .: . . . . ... ::. .. . .. ii1I!k. .'.. 11111. ,.1,/,,4,--.-..'-----. .'.,-. . -. . ' -'' - 11111 . . ,.. . . . - z. . , - ., -.- . . ; - .,.:.:h.. ïsq. /----. . . -. . . , :.b-..t,-;..:à,; - . . - . . . . . . . .. . . . : K ?z ... yeszhpv..ztr wjh e4 w. ow. . . ,. ..' * : @. **'<'*--- oO W * ' ' ' .. * :

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,; ' .. . ' ' $ y' , . , !, djà ,,!):i ;Ijryy. , J,!k. ... z..t, J. ;j:, jjjsy, . .%;Jr j;. zp.jrejjr'y.j. , , : k ï..,. ....,j rj ... ,; . ..1 . r . . . . ), . , . . y , . . . :j ; u . . . k y . . 1 t t . . .' iilii i;-I iitl'.l ? ;t'. ' '' ' :,. 11 ' i (j 4,$ ç7 Proiect e gxequiemelt pfe ured. .:.1 rFprnituee.. ptfice stlpp . : I . . . m. .equiplnent ol the proiect unit . ï'f Ctlf ed. :': 7; P

e

7.2 1 cross.country vebicle, 2 light 7.2 idpmv#bicles and 1 micro-computeeprocured for tbe unit.

8 l Tecbnical assjstance recrpited iui; ' . '.. ' '' '8 Tecbnirll .:siltlnçe.pfovided. . . . .tqe drafling of xhe bi4tjhi, . ''.tï. . ' .i à.1 .1%i<i '' :.doçument: .nd cazryinq ouy 'of .' . 'tlle varipus delivea tests.' F

a :eièice é' iuipment procured. 9. ! office eqvipment and ftlrniture .J . 1. . $ . .. ' ' ' ' f i ses procured. ' .9c1 idem ' 'of sefv ce purpo

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Attlvitiel: At Appr- *'-*1 (Açtz . Ie 4e- m.te ):. ' .. .

1 . l Drlft the specification! of the l . Fkp-çe l*n . '' 1 . l Bids/séfurided. eont.f4çis skned. lloll- lyte. of th@ v. . .bidding docupents and select 4in tbousands of UA/'. ' di:bursém4o'' :tltui'. Nlivew wojéktTco' o one o on sA'eùI.

.1 b ' '2- j'jc y:k ' 'thé succeuful biddees. . cerli a .'

F E L C Ttlta' ' 'l . . .1 .' Gup*lvil* wmu insl*llltson. and

ll*ke prùvisi@ny# and final ApF 10721 .O4 10721 .04.déliveie.. -. oPT l 374.. 1 8 1 3:4.' 1 8 '

m. l 072 1 .(h4 1.374. 1 8 1 2095.'222.1 ide n:

3.1 idem 2. Enl- ted ces.t(in thousands of UA)

*.1 idem ' .. .1Components Cost

6. 1 idem . . . . ;-tmcal oetworkl 299*.50

N:.!,1t . $ :* . j .6.l œqft the experf s te'm: o -powee 1482.50h é é d ii cfuit leo' m the -switchinp 624.79 r.ref4fë ç q. . ,

* N (@t. -'Teansnsission 14 . .. ' 1 mr : (4' ' ' . ''. ... . % .. , . .' J . .kog .& m.inten@nce 2614.4* f. ' ' 'x ) 'pk $4 ' . : . . . . t6.2 Selettr.inin: .cbàttea abfoed -'rraining 1 1 8.à1 't

. ' .1 ' I

..!1d l*nd tlçhefkilrp fof training. rFfoject Unit 229.50 'w. . . t. ;p . yk. '

.'

,4 .. . . a j -'Nch. assislance 478.œ ,7.1 Dr@fy th@ le içal lpecificatkml -seevic* eqtlipt. 847.0, j.t f ' .

. *nd p'ovide 'eqiji.pmerit thiùtëh Contingencie: . 1 280. 1 6 '; ' ' l*ç*1 shopping-ùl wppliees. Priee esc:lplion 603.53

. .

'

. l Totpl 1.2095.22 . ,. 8, , Deéft.tlw teehnic4l ps:istance . . ')

térml ol 'el@rence *nd recfult œ C@--- '-l@n. . jthe experte cpnçémed on th@' basi: of * shori list. ' 1. F1- -*- - RM

4in lheusands of UA) ': 9..1 Provid@ office equipm@nt thrpugh

toçal *1:0 ' ' . F.E. t.C. Tot*l .'

FAp 1o4z4.l8 104ze.18' '

o- 2596.18 25:4.18.Tl. 10430.18 2596. 18 13026.3:

(in 'housands of UAt '

'f Componenl Cos' .

-kocal netwozk 31 94.80 ..power I 602.85.swilchin: 1 103.91 1 ..rrapsmission I 863.46 '-tog.& maintenance 1981 .79-feaink:g 10.36 '-&oieçt Unit 342.%-rech. assiltance '506.35 .'-seevice eqtdpt. 1 635.49 .

' Continge-ies 7*3 84 'il'otal ! 3026.35 '

VNM CELECOMI SFCBIMA'TWP bétel X. t@3*' 1 31 Y

.z: . . .1.:5* ',xk : .

PROJECT BASIC DATA

F/BN/yL/88/1 8

Governmept' of Bbnihwt

Office des Poste: et TélécoMtnuhicatiôh: (OP#),

'

O PT

Loan number

2. Borrowét

3. ben:fièiary

4. Executing agency

A. ADF LOAN

Estimate ataDofaisal

10 721 045

Att

$ . tuah amount (UA) i b 43ö 1 t0

2 Servic: charge 0.75% on amount,disbursed andoutstanding.

0.75 % öh Idâpamouht dikbuiséd

. . a k ; y,aàiid butbtàhdlhg.

, ' '

4% ftoM yr $ iovr 4 , 6 % i hè-tèâftd?

1 % from 9t 1 t tdyf'20, 3% théidâfér

3. Onlending interest rate:

OPT

4. RepaymehtGovernment

d. qépéymen! periodGpvernmeni:opl' lonlending)

6. Giace period:GdverhmentOPT (onlending)

7. Date of negotiation. 8. bate of approval9. Date of signature10. Date of effectiveness

4% from kr 1 toyr 4, 6% thereaft:r

1 % from yr. 1 1 to .yr.20, 3% thèreàftet ' '

50 yrt20 yrs

6: yrs2: yrK

10 yrs4 yrs

08/198710/1:87

26/08/88

10 #fK4 yrb

1 3/08/7 98#26/10/198*26/02/198j2$/05/19:9

. , . c -r='

. . ' l ' ' , % '.. . . .

.

ii

:. l 8) .. a . ? .B. PROJECT DATA ,'

. . . . ,

JITotal cozt in UA:

Estim alze ' , ..Ac:tual GaD- i,n=%.- . . ..,.,

. k

'

; . . .Fb.retl O:- '')n 'è : c h ; n ç1 e 1 0 7 2. 1. ...04.5 f, ... . . ' , 1 0. 4 3.0. . 1 8 0 r 2 !k7 , , ,

.. '2**-. 1 x-- . - ' ' - ' ' . ' .' a , . rLocal turr 'ency 1 374 1 80 2. 5,.9'6 1. 80 + 88' .8Tblal 1 2 O95 22 5 .t 1 :3, . 026 360 . + 7. 7 .

2. Financing plan, in. thousands of UA' At'' imat'

e lt anorai sat. . s. , . . q etuq-t . cap@'j q

...!,& . . . ; .x ;'> à' t . . .

' .h . '

4 ... . . ' (%)Sourkces F .E . L .C . tota t 1 F .:E . L .C . tp-ta t' j ' .' à '

- 1 94,50 : ta . - a z 7ADk ' r2' :.,1 . J k .- è, 1e721 .045 . 10721 .û45. t . c :1k0430.. 1tvt', ''J ' ' --:' '-' ' 1'' - 1574 . 18 1374 . 1é ';' -. . ? i - . a5pu . la ' '' #'; z-s-kz,:ita ) ; .u,.14-41 ..:''tOTAL 1t721.045 1574.18 12095.225 10430.18 2596.18 1502:.36 +7.7

' - î ' ; .: .. Proiection Açtu.al( . t . û f t ,'. ' . .

, ' . (.

. . . ok r9 '

X

; 9 j t ; ' ) . j z ; . Y ' U *' Y.:' . . ;4 .. j : . ,7. . . ) . . .-.3s,,tF it.it. J,d lbsb. y.rlsement date : 31 / 1 2/89 22/0. 1 /90

k ' ., - ' '-: ': ''

'

e 'r '<' I ' ' . ' ' . -4. Lààt disbursemeht date: 31/1 2/92 31/12 /9 66: S't' âtt-up of projèct implementation activitles: 01 /88 07/88. *

. . . t .p .. t j . r - . . j ..y g'-* #,. 2 .w . ( : . ' '' ' : ! $. . J i < . Aat .6. Cömp. Ietlon of prolect implementation activities: 31/1 2/90 30/08/9.6

.'.- .

' t .1 k ê ,' t'i. z . g .)' ' , ..' kg . . j . x .

? Ck.i !B' EZBDRiMA' NCE I N D ICATORS

1..k : Balapqq , 3%'t 2. t. ij $ - 1:i:r) Ràq 're' i' o In . ti meta b Ib -' ' '

$ '' . '' .''' /...6':. . '' .. ;. '''#' - . 32%*.>' - ' - ' I ' ' . .u S 1'71. p,' 'p àg. e 'on ef f ective d ate + 2 50 %' .. 15 .

... . !. : .. l - . ..

- Slipppge on completion date + 200%. . . ; :. ;.y t s j . 4: . . j . Njj

jjgj q e ;- Slippqge on Iast disbursement . . t + 200

. . . . ''-' '' - ' l ' '' ' .. l . ' . ' ' e'e . ' l '* ' 1- Num b.é't..' 'of extensions of Iast disbursement ' '

: ' ' i ' ,% 5 ' ' ' ' * ' . ' ' . 'T'7 . . ' y .. ' 't ' l

deadline 5'

. ' . . ' .. . . ' .

' . r i ' ; . , -,' < n . '. : :3 . lmplempntation status C.o *% .p'l''et. A'd, , . . . .( :

./ . , ' . '

; . ' ' . ..

. . .. 1 . e ... ... .. . : ' . ' ' ) ' ' .' . . , .

, . , -y. .z #

*

4. List of verifiable indicators and status of completion

Indicators(teleDhones)

Rapidity of faultcleàrance in:- 7 days- 30 daysNum ber of faultsper annum per subscriberCall efficiencyrate

- Iocal- inter-urban- international

Dial tone w aitingtime / 3 s

Productivity of personnel(employees/looo TL)

5. Institutional perform ance6. Contractors' performance7. Consultant's performance

At apDraisal Completion %(Dec.95)

70%9O%

3

89.49%95.10%

0.76

128%106%

395%

55%43%

95%

139

9 9 . 50 %79.37%53.16%

99.96%

49

1 8 1 %1 85%

105%

284%

SatisfactorySatisfactorySatisfactory

At Apnraisalnot calculated27.47 %

8. Internal econom ic rate of return9. Internal financial rate of return

D. MISSIONS

At Com pletion38 %31 %

Number ofnersons

Number ofmissions

Composition

1 telecom . engineer1 f i nancial analyst . .1 economist

2 telecom . engineers1 econom ist

Appraisal

Staff/week

Supervision

Monitoring

Portfolio review

PCR

Total

' ' 62

0.50 5

1 Division Chief1 Ioans officer

1 engineer

1 telecom . engineer1 f ina nc i al analyst

22

21

.N ' R' '

ih/

E. DISBURSEM ENT OF ADF LOAN

Estimate Actual éercentaoe(in UA) (in UA) disbursed

Total disbursed 10 721 045.00 10 430 180 97.18 %

Unutilized balaùce 290 865! ''Yearly disburs 'ement

è Year Estim ate Actual

1 988 3 38O 3451989 6 276 60O1990 1 064 1O0 2 901 0461991 81 8 9O21992 462 9091993 1. 867 5361994 k 272 8741995 1 647 4171996 459 496

Total 10 721 045.00 10 43O 180

F. CONTkACTORS/SUPPLIERS

Name SERVAX BPNINResponsibility Supply of génètrators, rectifiers and accum ulator

J batteriesDate of c jntract signature 1 3/1 2/89Dâte con tract expired 29/1 0/90Duratiôn Jf contract 2 10 daysAmount (In millions of UA) 0.285

2. Nàt'ne CAMITEL SARLResponsibility Supply and irtslallation Jf equipment for earthing

t and protectièn against I'ightning.bate of cgntract signature 04/01/90

Date contract expired 1 7/1 2/90Dutàtion Jf çontract 270 daysAmount (in million: of UA) 0.409

Suppiqment to basic contract

j '.tlg/iatuçe date 29/05/91k'xkiry 'date 22/04/93i iion àf suppl. contract 16O daysura

!Amount (in millions of UA) O.1 24

3. NameResponsibilityDate of contract signatureDate contract expiredDuration of contractAmount (in millions of UA) : 0.030

4. NameResponsibility

Date of contract signatureDate contract expiredDuration of contractAmount (in millions of UA)

TRTSupply of spare modules for NFH and SRL radioIinks and training of two technicians.24/03/9203/03/9308 months0.495

ADVANCED' SEM ICONDUCTOR LtGenerator spare parts

5. Nam eResponsibilityDate of contract signatureDate contract expiredDuration of contractAmount (in m illions of UA)

6. Nam eResponsibilityDate of contract signatureDate contract expiredDuration of contractAmount (in rhillions of UA)

7. NameResponsibilityDate of contract signatureDate contract expiredDuration of contractAmount (in millions of UA)

8. NameResponsibilityDate of contract signatureDate contract expiredDuration of contractAmounl (in millions of UA)

0.106

SACECCAV DEPURAZIONSupplyand installation of transm ispionequipment19/09/8910/05/90108 days0.781

INTELCAN TECHNOSYSTEM SSupply and installation of transmissionequipm ent07/1 2/89

14 m onths1 .319

STE LES ARTS BOBOSupply of 2 electric connectorsM ay 1990

0.00326

9. NameResponsibility

Date of contract signatureDate contract expired' &. 1Duratio 'n of contractAmount (in millions of UA)

10. Nàm e

Responsibility

Date of contract qignatureIbate contràct expiredDuration of èontràctXmount (in millions of UA)

NameResponsibility

lDate of eontract signature

Ibâiè cöntract expiredD. utation ofxcontractXmouni (in miljions of UA)

i 2. Namehebponsibility

Dat: of contract signatureDate eontract expiredDuration of contractAmouhy (in millions of UA)

'1 3. katneResponqibility

l i natureDate ot cpntract s gDate contract pxpired

l f contractDurptioh pAmoùrii (in millions of UA)

STE D'ELECTRICITEe

'

.'BATIMQNT; (''.SEIB) .' i L : .: Stlp>fli#, installàtion ' ,e. nd. .. :commiyyienint- .pf thestifldb. #làirqztm. ditio'h. ingêi. nd Iighling, qaqo' lgmént of' ' ' . .7 v'' .the télè''k è'éntre20/1 1./9206/06./931 50' dà#s

: O . 0 5 '

SINDUS - EQUIPsupply ôf $p. arë parts fopr th4 CP4Q0 end CP100

. '

publrizç, s'wit:, . h ingè: equijpda ent.08/027/931 3./ 1 7/ 9 31.àb' q..a'#'k00.2.:2

' :

Vl

. ' (.

CLEMCESSYSupply' pf measuring equipment .'for, public

l ' 1 - ap'd the related training.telépholirê sWitch ng

20/1 1 19L .,) '

01/12/93)24O d'ay':

.

0.412 '

INDUSTRIELLE ET DE

S I N D U 'S - EQ U I P .Supl. Ik, installra4iop- ànd cominibsionihg. ofautèmatic fire detectiôn a'hà extinclionequlpment.28/.1 2/92i 4/08/9313O dàys .0.019

GEKAM easufing equipm ent24/01/9628/06/96165 days0.065

V l I

14. kameResponsibility

bate of contract signatureDate contract expiredDuration of contractAmount (in millions of UA)

TELEM ARKSupply and installation of the pow er equipm entof the new telex autom atic sw itch and therelated training; supply and installation ofsuspended floors and rehabilitation of the telexcentre and related pow er room s.

: 20/01/932 21/1 1/93: 1 80 days: 0. 1 62

Supplement to the Basic Contract

Date of SignatureA m ount

15. NameResponsibility

02/09/940.0093

SAGEM

Installation of the dijital, telex automatic switchand the related traihlng.

: 20/01/93: 05/03/941 1 montlls0. 667

W ANDEL ET GOLTERM ANNSupply of transmission measuring equipment andrelated training08/02/9327/01/9408 m onths0.461

Date of contract signatureDate contract expiredDuration of contractAmount (in millions of UA)

1 6. Nam eResponsibility

Date of contract signatùreDate contract expiredDuration of contractAmount (in m illions of UA)

17. Nam eResponsibilityDate of contract signatureDate contract expiredDuration of contractAmount (in millions of UA)

18. Nam eResponsibility

STE TEKTRONIXSransmission m easuring equipment25/05/931 3/01/9404 m onths0.055

SHELL INTERNATIONAL TRADING CO LTDPurchase of 6 photocopying m achines, 10typew riters and 5 office calculatorsM ay 1 99ODate of contract signature

Date contract expiredDuration of contractAmount (in m illions of UA) 0. 1 19

1 9. Name .'k' ëtponéibility .' bàtè of co! ntract signatureDate contlract expiredb. uration J f contractAmöunt (in millions of UA)

20. Nam eResèonsibilityIbâie uf contract signalure'

jbatë èontract expired) . lDurztlop of contractL. . lArrlöunt (in millions of UA)

21 . Name .R:sponsibilityDâte of contract signature

à .bàtë d4ntract expired'

; jburaiien of contractlAm ount (in millions of UA)

k22. ame'

; éë:p. bnsibility' I

Date öf c 'ontract s'ignature. lDatë contract expired

butàtion of contractAYount (in m illions of UA)

2b. N ameReiponsibilitybàt: of colntrac! signaturebate cont 'rlact expiredbukàtlon o'! contractAmouht (i ln millions of UA)

24. NatneResppnsibility

Dàtè of contract signature'

lDate cohtr'jct expiredDuration of contract

lAmount (in m illions of UA)

ï/iii

SO BI EX- l N FIU kMATI QU ESupply' pf mikto-com putèrs and softwér:M 1 .9 b.O' ' 'a9

0.041.

STE NOUVk'LLE D'AUTOMOBILE .Suppll? öf v/hleles1 3/1 2/*9 '20/07/9' 01 20 d.âys0.524

SAF'T P.OW 'CR SYSTEM SSupply df saqare parts of rectifiers.25/06/931 3/027944 m onths0.085

SE G ITE LSuppl'y of spare pârts of trahàmission ap'd powërequipm ent.1 7/01 /9405/1 2/94 .8 months0 1 27 '!

GEKASupply o.f power mepsuring equipment30/1 1 /9205/07/931 2 Aeeks0.334

SINDUS - IEQUIPSuppl'k of measuring and inrstrumehtàtionèquipment; rtiiisckllàneoue: repairs Iaboratory,ow er and' cbld w orkshop equipm ent,p22/ 1 2/.9 325/09/941 50 days0.520

'A rki

i)t

25. NameResponsibilityDate of contract signatureDate contract expiredDuration of contractAmount (in m illions of UA)

TELECOM S CONSULTANTS OF INDIA (TCIL)Abom ey and Bohicon local netw ork28/07/9302/09/95

: 12 months: 2.225

ALCATEL CITSupply and instpllatipn of the OCB 283 extensionequipment (Cotonou and Porto Novo).03/05/9527/04/9606 months0.497

26. NameResponsibility

Date of contract signatureDate contract expiredDuration of contractAmount fin millions of UA)

G CONSULTANT

1 . NameNature du contratDate of contract signatureDate contract expiredDuration of contract :Amount (in m illions.of UA)

DTI TELECOM INCORPORATIONTechnical Assistance25/1 2/8931/05/9230 m onths0.507

INTRODUCTION

Bank Groun Onerations ill $he Telecom m unications Sector*

1.1.1 To date, Bank Group operations in Benin in the telecommunications sector arethree in number for a total amount of UA 25.338 million : UA 18.338 million (72.37% )from ADF and UA 7.00 million (27.63% ) from NTF.

1.1.2 The National Maintenance Improvement Plan (PNAM) project, subject of thepresent project completion report, is the first Bank Group operation in the sector inBenin.

1.2 Proiect Location

The project is located throughout the country.

1.3 Sources of Inform ation

The ïnform ation used in preparing this report w as collected from theGovernment, the Office des Postes et Télécommunications -OPT- (executing agency) asw ell draw n from quarterly reports, the Borrow er's com pletion rqport, supervision m issionreports and discussions had during the project completion mission to Benin from 27October 1996 to 08 Novem ber 1996. The sources of inform ation are detailed in Annex2.

2 SECTORAL OBJECTIVE AND PURPOSE OF THE PROJECT

2.1 Sectoral Obiective

2.1.1 The sectoral objective of the project is to provide the majority of the populationwith telecommunications by increasing the teleàensity from 0.3 main lines (ML) for 100inhabitants in 1 987 to 1 .26 M L for 1OO inhabitants in 2005.

2.1.2 To achieve this objective, Benin has drawn up a telecommunications master plan(1985-2005) coupled with a short-term plan for the 1986-1990 period. PNAM fallsunder the em ergency actions of the short-term plan.

2.2 Purnose of the Proiect

The projqct which falls within the framewofk of telecommunications installationsmaintenance improvement has as its main objectives:

lay dow n efficient procedures for preventive and corrective m aintenance w ith aview to reducing breakdow ns to the m inim um ;

ii) enhance the quality of service to telephone and telex users;

iii) make the running of the network as profitable as possible;

create conditions for the m ost effective developm ent of the netw ork;

: v J '''' ' ' ' ' -' '.'x ' -. . q .; IR .ms . v.r - - = .-. . . .w .... .yw mmxam

2 >

v) m eet subscription demands which,have ''bpen outstanding for Iack of pairs in the' ' y

netw ork. .2

(.ql . :--ïi-2.3 Ptoiect Description -' .. v . r,

l ' ' ' '' '*77'1' 15:2.3.1 The project as defined in the appréisal report consisted in :

- ' t .- kuépl: 'and repair works, replacement ot Hxtension of the t/lk/hone ând tëlëx:xchan 'ge equipment, transmission system, tôcal network of cables and the p 6wer:upsply lystems;

(

'

.

- àupply of the necessary maintenanc: logistiçs: labofâtory equipmen:t, m easuri'hgI . finstçum ents

, tools, spare parts, vehillïes, oft.ice equipment and furniture;

training of the personnel in the variotls telecommunications techniques;!

putting in place w ith the assistance of a consblltant, m aintenance procedures fof! 'aIl ihe components of the network.

3' i The main project components were:2. .

1. ,(:-A - Local network ..,

l .' .. ...@B - Poper1 !.1C

- Sw itc h i n g . .j.I . .!r:(;b - Transmission '',,.1 ics and support to m aintenance :'1E - Logist

l !kF T r a i 'n i n g .',

'

j. . . lG - Ptoject Unit .:1L j '

. .

.jH - Technical assistancel .; il - Services equipment ),..k1A

: 'j'zg'i .r. ' . ' ' '

3 PROJECT FORM ULATION ç* 'L4. w jhf'i

. l ' -13 . 1 O r i q i 'n -

....

jl .

'- tt 'â.1 .j The t jird conference of African Telecommunicafions Administrati6n which took ?A

bvia in December 1 98O invited JIl /f$ xm em b'ers tö give absröl.ut'e priority to 7:1pjace in Monr1 ' ?- 'iworks

. This concern Was 'widely zl'thë maiùtenance of their telecommmunications ne zàh

. arèd by the) multilateral finance inslist. utions of'the PANAFTCL network Whici met in ,'. jAbidjan tn Se 'ptember 1 982 at ADB'S invitation. Yhereioie, Manangement o'f the Bank, .ï

l hat the funds granted to rrtembe'r countries wëfe efficiently utilized, in 1anxlous to ser t . .

Id be derived from the existing ..2tlne bope .tlnat considerable revenues w ot;l ;;I .telecommunications networks, undertb,ok tp j.ive top priority tô ptojects fo'r the ,?1. . . ' ' 'i X X 1!tehabilitatiön and maintenance of these networks.

l'

. I3- 1.2 ln the early 8Os, ITU, with the financial support of UNDP, Ipundhed a vast ?

! ' j kujaops f or ,

',1awiseness cajmpaign in these administrations by organizing seminaià an wor

hè tral'hing of telecommunications techniclphs in the prep.aration of projécts ihtended to <i,t..j;.1

i,' ''.-,tk:i2ip

'

--

'

.

'

-nbjfz;â;.- ' . ' .. . .. . . ., !. j-.- , . .k-t. .r.... ' ..:.;tt .

A'

;t

i intenance, projeçts co' mmoply çallqd ''National Maintenance Improveme'ntmprove ma) ) . . . .... . . . . 'Plan (PNAM I''

.

3.1.3 Benin was among the first countries to prepare its PNAM with ITU support.' Thereport of the feasibility study w as subm itted to the Bank fot financing by 1he NatiönalExecutive Council of Benin in August 1986.

3.2 Preoaration, ADpraisal, Neqotiation and Approval

3.2.1 On the basis of the 'feasibility ytudy conducted by OPT technicians w ith ITUassistance, and of the telecomm unications master plan prepared by ITU experts, theBank proceeded to directly appraise the project.in April/May 1987.

L

3.2.2 The negotiations held on 13 August 1 987 in Abidjan, did not affect thq findingsof the appraisal mission and the terms ;nd cönditions. At its sitting of 26 October

'

1 987, the Board of Directors approved the project.

4 PROJECT IM PLEM ENTATION

4.1 Effectiveness and Start-up

4.1.1 The Ioan agreoment was signed on 26 February 1988 and the conditionsprecedent to first disbursement were declared fulfilled on 26 May 1989, i.e. 1 5 monthsIater. The conditions precedent were 'the Borrower's undertaking,to :

i) have regular allocations made in OPT'S annual budget to meet its share of theproject cost as. indicated in the financing plan;

find additional funds in the event of cost overrun;

not to use the proceeds of the Ioan to pay duties and taxes on goods andservices required for the implementation of the project;

ensure that for a period of 5 years, starting from January 1 988, OPT m akesprovision, at the end of each financial year, for bad debts;

show evidence that it has on-lent the Ioan to OPT at a rate not exceeding 7.64%per annum for a pay-back period of lwenty (20) years including a grace periodof four (4) years. The draft on-lending agreement shall be subm itted to ADF forapproval;

iv)

v)

vi) show evidence that the project unit within 0PT has been se1 up and submi't thecurriculum vitae of the Officer-in-charge to ADF for approval. If the officer-in-charge is changed, ADF shotlld be dulk informed;

subm it to ADF for appro/al OPT'S s-year plan for the recovery of arrears fromal1 its subscribers;

vi i )

viii) submit to ADF the frame ajreement approked by the ''Conseil Exécutif National''(National Executive Councll).

rr4

4.1.2 The .other conditions w ere:

i) ensure that the new organizatipn chart 'come.s: into force and thal the tw o1 .

'

princlpal maintenance centres a're comm issioned no Iater than 31 Dec.einberl .1 9 8 8 ;

' . .

ii) submit to ADF semirarlnqpt' re-'p. brts on ;'0z );P'' 7:/?g:5 '.qi-rtjay's recoverv.àitpajibn.. . % . , . . : . '.. : t j :h . . . . li . ; i : . .'.'; . ' . . . , , ;. , , . .. .. ,.. . . , .. .. ,:.,..r .. . . ..t

, . . ' ,

't : , ' .; 7, , ... . . ' .: :t ::.4 .< ., . y j .?.t. ) h;t> .t : ;... j.. ;.,,,. . . . : .

. .. . ... . .. y.' ' ' ' :. .' : : J'. k j4E. i. Li JJ: '. . . , ' ,... ;':..:V ; ;; , q ',; j@) h . k y 4... . ; '; ' .. . . . . . . .. , .

, . . . t: ' . '.i : k . . . $r. ' );L . q k tt' ï.jh j;, r r . :z(L%jg. -' !.g qbjr. r'y ;. : (.. .. , , . . . '4

.1.3 The conditions precedëni . td. i,f. ,k..àt$t,Dd. l's:bjd$x.p,lqen, t wqre met ' 1, 5: ' moqt,hs aftf). r .. . y .L.,' /. : g. vvj. kr' n $, yJ' Jr..() ij j)j. jggjj;; . ij r( y;k ; ; z.(y: ....f . , .2 o ;; ; ' . k . j yjj, ,tytgjjyjjjy' yyr. yjg;y.; .s(j.,.j(g;jL . rjjrz. J. .J .jjjj' ' jj.yj jjgjgj , j jtjj; 'yjgjj jy.yj .signatucq

.pf 1he loan agreèmàntk lllj :14. ..,..yI jr1g,:.; , #.. tlj.4-,. 1:,.:- ; 14 .h. ë . en't. ry ''ntè . : , . .. k2, . ... ;whidh. gtreatly af f ected the project im plùtn, ,

''erijt'àll4 1n,. tje. Irio. d. , wa's ow ing to thk' dif. f' iùùlt' testhe Authorities had in m eeting the dohditiopsf .' '

. . j j , .j , , . ,.

' .. * . . ' . : ' a : '. , . . ; , . .'j..'. . (j 2. .. 2 . 4y.y .....t..! ..g;. ; .

4.1 .4 U, .nd.. er other cond itions, t. he q,.,à'tà. '$.fi#h':l7jë( *q,t't4. 1 ' :t. 13, e Parakou Princirp, l M'àintenance. . . . . ; (;.r .. ,. .. . :j: ,; ,. y; . .) ,. ).jy. , ( , , .. ;tq . ., . , . y

. ' '

(() ja Jj '(jj6: .. ' #. j é':jnjkyjj jy t .jj .:'f.?'e y;1 a b l i q h 'm/ r) t : W q j qo M,s id pçedC. entrp . t.tC,'. P,M ) wàs not eff ective ,.. tu.p.,... .?, u , . . ...,s . ;tyy.y...,.y.,:,:a., ,

..... , . .; , . ,y, . .

. . . t,. .. . ..

. , .

inexpedient as the Cotonou CPM ' 1: ' big,.',:..f!# ù.' glj.:,jo..,,è...à. rr? thq c'urrent work loàd. . ef .theI ' . ' J j '. ' . - '

Whole couhtry. : ,. ' ,.

' )J. .'. . ','.. . . . ' .' ' .. ' ): '' . . #' . . . . .' . .. . ' . . ' . ''' . y. . ' . 'xq.f â . . . . ' 4. '' / 7 ! t' . . ,1 i kr: ' '. ' ' ..f 1) :' y .

' ' ' . . ' : '

4. 1 .5 The f irst bidding dociamenets ,fb.t.'.::p'.f'g.qu.'.g;quM. eht.g . f in,anped' by txhe Bank wé. re. . . . . . . ,. 2g. j ., . t . y .d in June 1 988 and

, the , fit<t: .:'Jd.'ô'.::tfC:'â'é:tà:''àigndd ''in S'eptember 1 989, i-e. 1 9aPPrOVO . . , . , ... , .,. . .. . . ....

.. .. y.- . .; . ..: ,. -.. ,, . . . .,

m onths after signature of the Igan .à. Mib. 'kril uei'rdtyg: .. . .

, . ..q. : . . ... y . . ...

. . , ; . w . ? .. , .

. 2 ' ' ' .

4.2 M odifications , . : .. $

'

: . . : v ,j , ;, ., . ., , .. ,

,

yy yy syya ,ysajjojyyo. g yy4.2.1 The m ain modificationd were .m. pde or! the local networkscom ponents.

. .. . j . '

. '' ; . . , 2 . .4.2.2 As the operation of the other.dorlèr; (lD,- A4 EIB, NTF, ADF) helped finqnce th e

. .g , , . : ' . e - .rehabilitation of the cotonou and Pprtp. N.,'.p.*'o -1:6q. 1aI.., nelw ork, s, the borrower, in Octob er

. 4 k ' . J ; '. n . ' ' e ,1 990 rèquested that 1he outstanding crè.d' ?1t o.f thlqslcoirio (p. oitent b.e u'sed to ren .o. vate 4nd. . ' a . j . . . , ., . . .extend the Abom ey and Bohicon Iocal netWbrkài'the Bàhk gave' itd consenl in NoveMber

. ' y ) .

1990. :: ' '

4.2.3 'Following a com parative studpi ittzprwoved more economical lo a, . cquqire, a new telmx

l ' ' ' . he Ban'k gave its conéetfît i o lhis.automatlc sw ilch than to rehabilitate the eld orle, 11 . . . . . .

'

modificaptin i.n Novem ber 1 991 . Likew iàe. r a fqvlsion of t'he lîàt. (t4: f goods and swbrvices'of. . l ' . ' ' ' - ' 'the project having perm itted to mike s@v

giogg, 'ibe. Bd@'k. g. ave its cons.*nt in 1 994. that' . j . . . . I . . . , .the credits of the ''switcbing'' compolleilt

. be' uséd to f'inance the extensipn of thej . 1 . . .

Cotonou eIe 'ctronic telephone automatic switch.. :.

4.3 Imnlementatiœq-schedule ..

' ' . . ' . ' ' '

. j . . yjè .. . 2 j y s, 'j :' .,,$m.'.

jo r

'

j , g. , sas compjexed oniy in4.3.1 The prolecl billed for complq on .

j . . , , jjjjjyyg tjje.August 1 996. The project look off .lpte qlipg .t.4, lhe,Government s dplà. y in fuI .I

. : : , . -conditipn's p 'rjeced. qnt to loan effectiveowéùs'aindz' tth e,, 4a anctions impose'd, 'Qn the cbu' ëtry.' 1x k ' ' . . 'During im. plemj entatifan, tbe delay was 'Aorspneud. > snain'ly ''by the bureaqc racy w ithin OPTin applying t 'he rules of pfocedure for the. e+c4' . téslftion, of go6d, 's and servticq.s, the deN y' in'

. l ' ' v . v ' ' . ' k'approvin g, the mod ifi c ati o n s ma d e , tl-te t-I.l.lttw, 4, Ittl iq jïqxu! lllil,'e, . ?pq rq/ect unit ' qon-qp. p, l'it.*a4.,ie'n by' j . . .. .. .--;. . . :

OPT of th' e sanction clatlses/annolihta-e'd. vf t.w Sglqt'll, ': :i:- onAfaèts. Thq i'n4pje'r-//f'tktalion. .

' , . ' % .. ;: (îj . -. 7r : .!, L . . . : .' l 12 ' ,, ''

s k, ' -'. i y y , y , ' ' .

... , . : . , , . f - .. . y. . î , '.

' '' '

t ..2 . : .. 2 .;.. ?,.: '. . .. : e . . . - . ... . .. . . . .... ... .

5

schedule in relation to projections is given in annex 4.

4.3.2 lt should be stressed that the Bank's delay in approving 'the modifications anàcontracts contributed to the project implementation delay. '

4.4 Reports

4.4.1 Only seven (7) reports were irregularly prepared from October 1991 to Decem ber1994. In spite of m any reminders from the Bank, OPT did not furnish any otherqùarterly progress report on the project. This was as a result of the dissolution of theproject unit because of the promotion of alI its members in December 1994. The projectwas later on entrusted to the Studies, Programmes and Statistics Unit (EPS) of theTelecom m unications Directorate.

4.4.2 ln terms of quality, the results produced were clear and well detailed and madeit possible to monitor effectively the technical progress of the works and disbursement,and to be informed of the problems which arose and the measures taken.

4.4.3 OPT provided the audit report of its accounts but did not, despite m any requestsfrom the Bank, produce any audit report of the project accounts. The Bank will have totake dissuasive measures (suspension of disbursements) to get project executingagencies to respect this provision of the general conditions applicable to loan andguarantee agreem ents.

4.5 Procurem ent of Goods and Services

4.5.1 Goods and services w ere procured in accordance w ith the Bank's procedures andthe provisions set forth in the appraisal report and the Ioan agreem ent. Disbursem enterrors having been noted, it w as necessary to reconcile the figures in order to bring theOPT data into line w ith those of the disbursement service.

4.5.2 ADF did not raise any major objection , to bids evaluation and 1herecommendations for award. One of the com panies consulted complained about theprocurem ent of the telex autom atic sw itch. After consideration by the authorities of theBank, the com plaint w as declared null and void.

4.6 Costs, Sources of Finance and Disbursem ents

Proiect Costs

4.6.1 At appraisal, the project cost net of taxes was èstimated at UA 10.721 millionin foreign exchange and UA 1 .374 m illion in Iocal currency. The com parative situation

between projections and actuals is as follows:

I

6

Table 3.. 1

Proiect Cos;tj i(in thousàn s of UA)

Estimate at Apnraisal !1 .eaîl Cost

I.E. u.c Total R.E. L.c. Total ., .s.ap. .Comp'. onents . FNetworks 2740.68 327.88 3068.56 2735.77 459.03 31 94480 1 26.24Power 1 450.25 1 29.74 1 579.99 142 1 .2 1 1 81 .64 1 602.85 22.86switiliiri; 1 327.'1 5 33.87 1 361 .02 .1.063.27 40.64 1 1 0/.Q1 .-217.1 1

istion 1 586.22 232.34 1'8 1 7*.56 1 584.66 278.8 1 1 86:.1.: 45*.96Transm

Logistics à support 'maintënance 1 297.96 1 57.43 1 455.39 1 266.79 71 5.00 1 981 .79 526.40Trilfîln: 7.97 7.97 1 0.36 1 0.36 2.39U ite/pfbject 1 ? 1 .99 1 05.86 237.85 1 05.05 2 10.i0 347.90 -1'05.05nAssiàtance 5?6.95 24.97 531 .92 -24.j7 0 509.94 24.97éerv. Equip. 1 479.96 83.60 1 563.56 7'1 .93 1.1i .04 1 6'35.4,9 7 1 .93Sub-Total 1 j0'520.1 6 1 103.66 1 1 623.82 1 0229.29 201 3.22 1 2242..51 61 8.69Ccnilrii ènéi'és I .' and hfi'ce e'<càl. 200.88 270.34 47 1 .22 20,0.8.8 682 .9.6 783.84 31 2.62

éTotal 1 72 1 .04 1 374.00 1 2095.04 10430.1 8 2596.1 8 1 3026.36 931 .31

4.6.2 the total proiect cost which amounts to U. A 13.Q26 million is highei thari theI ' - o .estimate of U IA 1 .514 m illion, or 1 2.5 A. This overrun is ih respect of cost: financed

by OPT. It is jlustified in part by the Iong dëlay, in implementing. the ptqijkct andespecially by the change in thé parity of C/AF ffànc durihj t'he Iife of the project.

l . . .4 6 3 Total Bank comm itments amount t: UA 10 43O milliori as agaihst an estimatë

,. . . . . ?

öf UA 1 0.721 million, hence a balance bf UA '290 865. This bplance should becancelled. .

yu4.6. Yhe mpst significant cost overruns relate essentially to the followingcompönènts: Local Nètwqrks, Logistics and Sùp. lp. èrt qhd, the Project Uplt. They are .'1

. ,r. ..

' 5,. -'ë' r . . . . .

owlné. tà.-the reasons already stated in pàfagiaplh. 3.6.2, and tp the cbst overruinu cuntrs jcpvjihcutsed in the construction of the Principal aihtërsahce .

Dlsbursem ents

l' J )U we '4.6.5 The disbursement schedule at appraiàal compared to that of actual

I . .

expenditutes is as follows in millions of UA.

Q

7

Table 3.2 ': Yearlv Disbursem ent(in millions of UA)

a) Total

'1988 1989 1990 1991 1992 1993 1994 1945

EstimateActual

1'9éb i-oùi

a.4a9 7.a6o 1 .290 1 1.:46- - a.a7! 0.989 0.674 2.os7 a.o99 2.177 b.6s9 ià.àid

b) A DF Financing

1988 1989 1990 1991 1992 1993 1994 ldds 19:: tbtàl

a.a88 6.277 1 .056 jo.iii- -

2.901 0.81 9 o.46a . .1 .868 2.273 1 .647 ö.4si 1è.4àùEstimateActual

' '

j.4.6.6 The Bank's disbursement started wittn à slippage èf éi Iéàgi tWö #ëàtd 6h '

. t i . ; . ;estimates. This slippage is Iinked to thq delày ih toan èfiéctivëhesé (19 in' öhih'sinàieàd bf 6) occassioned by the long delays ih apprbving the ràodifidâilbh: ùl tèkijlii' J , ,cèmponents (6 to 8 months), at Ieast ihree years' sahctiön irtipù:ëd' öii déhiis iiidcettaitj suppliers' non-dompliance with the iMpiymeniàtion .dèâàliheé.

Sources of Finance

4.6.7 The actual financing plan ih reààtibti to estimàies ài âhptàléài ié àifollows (in thousands of UA):

At Appraisal . i . .Adtùàl

F.E. - O-.L C Total

1 072 1 .045

1::: . I!EE . ..-...:k-..-.--:L.I...Source

ADFGvt

Total 1 O72 1 .045

'' ( .k- 1 o72 1 .o4s 1 0436.t à - i :4:96.1 à1 37 4 . 1 8 1 à 74 . 1 8 - ' 1 d à d . 11 é 2 d à'di 1!8D'

ï u .)..i .;i ..t '1 374.1 8 1 2095.225 1 :430. 1 8 25é/.1 8 1 zuztj.tsd

' 6 é' ln compatision with UA 10.721 million âi appraisàj th: ààhk' 'b f'ihâhèidj âi4 . .

. . I . . . ; -

ptoject cbmpletion was UA 10.430 mlilion (èxcluding thë bàlancë to bë t. âheëllè'd' ).àifications made at the borrower's rëquest did risi Ieàli i6 ârh èvèriùhThe various mo

' $ ; v ,#

of thë pröjèct ainount; they are containèd in the ihitial coàt. 'fh: éétik fihâiièèd. . ' .i' :: w ' ' . ) . . .. : .

80.44% of the total project cost as against 88.64% at âpptàlsàl. UPT': èâtilèi/àiiö. iiis ih thë region of 1 9 . 56 O/o in relation to an estimâte ot l 1 .à6O/o . C blfîp' àtèd tö i'h' 'é'

: r . ' '' e : l ' :total project cost, the implementation ratio sinows àn ovettun 6f 6.94% flhàhtëà 6-#..the Govèrnment.

r r.N . 'k ' ' --'M m

8

6 PROJECT OPERATIONAL P:RrOA,1' ANCE AND OPERATINQ'' INCOME *. . ' '

. .k

'

' .1I

5.1 Overall Evaluation

6.1.1 As menlioned in paragraph 4. 1 .3, the conditions precqdent t.o Ioaneffèctiveness were fulfilled by the borroWèr 1:9 months after the Ièan aqreement j'

u '. Jq iui f 1 ! ' :'i' . ' ' ' -K*-J ' -?j.fdtàlg. nâtùrè, Nèvertheless, the physical coltlpsnenfl .Werë irin,plemelntèd ,Within the normsi . . .,. I ; .. :

ahdswijh, bqit.. 'a cost overrun in foreign exchânge btut rathér i'n. Iôcal durrérldy, Under other. . j l ; . ' l .

z. E & ' ' . . .. : : .. ' :dohdltltih&i-ft 'he eàtablishment of the Parakou CIIM,' turned out to be uhné.céàtài#.'

i.' '; .6.1.2 The Deriodic maintenance Droarammes are well tnonitored in aII the netwèrk

. l * * %''

'

. .

tom potibp, ts (sswitching, transm ission and cables), ànd the O P' T staff n'ow has a very high

. 1' . ) . .: ;m àlh.ièhàhçe culture.. . 2

s.z o oeratinq Income'

'

yhle psk M project 'aa.

s ueen ,succu u.ful,ly completed; t'ne quality network5 . 2 . 1 '

: i-tz rt 'tz-gkjj',j-kj tyju jaàk: jopryked signifièàtjtlFy, qkLèiëzd. ing ib'# f ar' thé . II:#ël estim àkte'd' ;at'@é#kl ce

-w : ( : I .

''dAlr ' :-f?' li' é ïi tia-lity. bf th: techh ical anà cf ,à rfi vM- Lè'f ciàl s'ëkvizà i's excéllté- h.t. At tahpftp, rfaits'al,à p 'p, r. ..à 1 # . ,

, ï - . (k z:t . , , i k . tj tijrkbor .,su,u;k tjjjyu (,a. ) wjjèretàs, .ktt,. irsthé hùybqr ,èf bféakdowné a ydàr and p ér :ki z

# rï' i I 5 U' ' 76% - ''the 'rapidity of f ault ddtectjtifn 'ith. 7' df'f 'é: ' wâ%! 70 .04. . wlhehz,à-v; fi't. ' Eikscutré # . j , .

; 1 89'. 49% k ihe' r 'local càll ëf tièiendy tàité' Aàl: 56'% W'hètèa: it ità eurrbntl# 9- 9!.6 % ;currént # . , . , .a , I , j (jjkerru' f:r 1,t)ô. o main Iihes at apprt isàlth: pibd

.kleti jvity of personnel w hich w as 1 3 w6 *h rëdbced to 49. Details of the principal servike' q.'tttilit'y indita-tùis are giv:h. inhaà e ,ê.r ' . .

Anhex 6 .;t j-.

;1 : .

$-:k.2 The number of telephone subscribérs iinoreased. fiom' 1 1$t4'6' in : 19:8.82'tio26'

.

4,,6--67 :in 11995 while that of telex suiiybcribers d rop' ped' from 236 to 1.99. The'; ' i like the teleeopy anddisàffèètlon fjor telex is explained by the emergenee of new serv ces

' i rizmzi 'zbClt)h which provide better an' <wefs tè 'th'e èuslb. m'ers' curr:nt need s. B:ni'hdâtà ,rà .t ';k 1 . '1: litlk-è-ddltc the Intèrnet network

.

. X 2. % . . .. j * ' 'h . ' '

6.2.3 F jor the Abomey and Bohicon hetwbrks, a total, of 140 O pqirs h ave b'ien' 00 airs have b:èn takën out for distribu'tlon, 3*2.19 m ofçeppp,c, ted in tranzport, 47 p

.::k s.. . I j . . . jt . . . .. ,,s'fi:'lqdqdbwp 'pjpes and 10286 metres o.f ihàùlated,,dondoils hàvë deeh tonstfucted. Then':L''n%1 b'e'r' bf .àu1 bscribers in Abomey an d Höhicoh locreà.àed frlm 44. 5 and 5..2, 8 az of' 3,:1

, s $

'

. ?' . o . ...7 . .. 1 z . . . . , - . . .

'-kJu'I# '1àb5'' fo 668 and 784 respectivrdly a, s öf 3 * October. 1 996, represen. ting 47;9%increaue for Abomey and 48.5% for Böhicon in 1 5 months..

'

'$ ''' Tle ' pt'c-.n- mission observed. iri? yoeftain' 'tentres visitèd thart ,th'e .power..ln

. o'u,sèn ,zf 4T -

r't s )# , : . . , . .j, soeqguip. m'qnjt; and(::nefaidti, ieétifièrs ahd batteries) àrè tlàtteirétd up xwit-h rrlitùellâneo .z ...: ' A. . , ' .t ; ' . ' . :k . ' - 'aihel libt-nlit 'b:caùsé'the bulbs are blow'n. ': Thià éiqtgàtion tis: d'etrirnb' ental to. t he skc,urit.yzof

. * . , j: j; . ;. .;. . jj ' ' . . .. . . .' , .. y ' . . *ihe p t-à. V/fflivs irhtb .could handièap thè m'àiwtédaitise of th- e installationsi' ln' sp, ,iie: ofz th- ê .

' ; lifàllâllifh 5's lf' pr' p'rpteè' tiöri against the' e'f''fetl't's o:f tltmösp 'heric 'discarg q,:svz certaih. c'entwtqsjrit. , l .11$1. 's'qfi'f'elt-''d' #' li/a' i èà cauke' d by Iightning; Tbè Iih'b 'b'fihe 'électricity etyrbp, é'l4#., is 're'porftqdlyst% . i ;! ! ',- r*j.i'/ l ' ' ' . ! .rgspörl'élblé 'for i'his situatioh. '

6.2' .6 ThI e m ission also noted that out of thè' fourteen ( 1 4) cross-country vehiclesacquired un 'der the project, two (2) were assiùnèd to the postal services; this situation

f li ' . .. . , ' $ '

,x-xw:tè zâ . . rq. .4kx.. .alz.o . . . a. . n'4aS ,.u. ..... . . :.

9' .

. t

. .t . ... . y . ;f th e m a i nte n a n ce ve h i c Ies , f o I Io wi n g an ac'c' lé èpt i nis deplorable especially as one o

Setptem ber 1 996, has bçcom e irreparable.

6 INSTITUTIONAL PERFORM ANCE

6.1

6.1.1 At appraisal, OPT, the project executing agency, was a public industrial and,com m ercial institution w ith Iegal status and financial autonom y.

O rganization and M anaqem ent of the Executinn Agencv

6.1.2 This institutional framework was modified by decrees NO 89-156 and NO 89-1 57 of 25 April 1989 approving the new status of OPT and fixing its new capital stockat CFAF 7,650 million ( 1991) as against CFAF 5,200 miflion in 1990, and approving aperform ance conttac! w hich should Iead to the financial and organizational restructuringof OPT with the donors' support. The transformations thus undertaken and the newIegal fram ew ork w ithin w hich the executing agency w ill henceforth operate, m ake it apublic çommercial enterprise to be m anaged as a private company.

6.1.3 The OPT Board of Directors comprises henceforth seven (7) members in.accordance w ith the first decree mentioned above, instead of ten (10) mem bers at .appraisal. The Executive Directors are appointed by decree, on the proposal of them inistries they represent.

6.1.4 OPT'S organization chart has been deeply modified to take account of thetrend of activities and the new legal fram ework. Three (3) new departments have beenestablished: Common Services, General Inspection, Mpnagement and Internal Audit; theAccounts Unit which had the rank of a Department becomes the Finance and Account;Departm ent. The Units are transform ed into divisions. ln general, the neworganizational structure (see Annex 3) should be reviewed as at the division Ievel, thereis Iikely lo be an overlapping of duties between the Internal Audit Division and theManagement Control Division; Marketing and Com mercial Promotion ahd Operating andCom mercial Development...

6.2 Training and Staff Skills Upqrading

6.2.1 Staff regulations have also been modified in the new legal framework of UPT.ln effect, the staff, initially governed hy the by-lawj of the permanent State workers(civil servants), henceforth have a collective Iabour agreement signed on 17 August1995 between the Head Office and the Labour Union (SYNAPOSTEL) representing 1heOPT staff .

6.2.2 At appraisal on 31 July 1 986, the OPT staff numbered 3062 workers. EndOctober 1996, the staff strength was 21 1 1 : 1 55 women'and 1966 men. It is brokendown as follows:

- Telecom m unications M anagem ent Stàff-M anagerial Staff of the Postal and Financial Services-com m on Services StaffTotal

11177192752111

)'= * ' ' '7 ' * ''' ' ' ' '' t)( -

1 0

6.2..:3 ' This staff' strength compared' to' 1.l$al èf 1..9.- *6, shaws. a shacp cfecraasp of 9,55. 1 . . .

wotkèts (ot -31 %) . Considering the trend of. %. t1-kl. Slftjitpil npmbq,'f .of telepjhpnes a'nd , with. 1 , . ;. ,;j jjja jysgyjjer o,j w.tsk

.

w

ers per 1 ôoothià downsizing, productivity improved marked. l?y. .' i d i rom 1 39 in 1 986 to 49 i n 1 .99,5. .?. 'C): iT''% target. by the y'eplr 2000 is 2,0.linëà à è.. jpe . .. .. , . ,

6.2.4 This staff ié ageing. Under the rêstr.u' ctd ting méasures decided uppn in 1 990,fècruitmqnts were frozen ; the Iast date btaek to .1)9-.t*. t . , 'e j rpdual tenqwa, I o t(' '

.. 11 ;; ' ' : ' (. '' ' .'C' . '' ' '' '' ' ' . '

is à mbui às bv the vear 2004, the antièipàted 'rm,aàas'ltve dep,artures of the wcikets on'* ! e . e y.),reiiteYént ià Iikel: to distabilize the g ood f uhctti'à. ti ipg of the structur

tes.

6.2.5 . Th q opT staff enjoys technical, administrétive and financial training Iocally1i' .à'*/. Jft%bfdaitj' l 'Thi t/âining progrqmme preppmed.jjin, ,.1,.9' 9. .4 . is bteing. im pjlqm ented. .T. his.)à .; . o, . . û ; jjw y a jj rj u s tj s y ; s o t j; e j p

. ,r o j e c t. . , y jj e r . jstfàlhihg, jrouramme was fihanced by OPT ànd' c ,. , 1 ' fields of activities

, whefe controllers,a kö:àtlèflâl jtrâining centre for OPT s two . .'

Q à i èrh ts and technical agents are traitnêd.o/ètatliig. :1 ' ' ' '

. ; . .

6.2 .6 Training in the operating and maintenànce pf equip. ment acquired nnder the' t hàs belen included in the various contracts.

prolec ! . '

6.3 Aè 'countinq and Auditinq of Account's. .

j . .: , . ..3 .1 . . OPT has made its accounting yeér coi:httide Aikth ths calëndar ypar. lt applies

he Natihal Acjcounting Plan of Benin , insp. ifed by t'ha't of OCA M, âri'd a'dâpted to spqckl'f ietapp. Ilcailèns of the sector. The Finance and Akcpunts'oqpartment ,IDFC) balançees 0/ $'sflnéùljiàliaktou! nt which comprises'. th'e g enera'l ,op.':d' ratioig à, coount, capila,l aocount, the'J .

' ' . j . ' . ' . ' * ybàj'âfjc.. 4heëtr ëquipm ent account and gen.èral t7taid. h. . 1.t is sttbm itted to the Cpuncil of

k i fè'r aipproval after the observation: of. thp' Bpard' ef Directors have be:n takenM'Itiiàt. té. . 1* I .

. . . .

ihtù' ' cnflgldè#altion. There is no separa'te a'ceùunslajiifor Rps'ts and Teleckommupitations;.t . .7,,4: ' I . lc )e ' .àbd6'. Mftlrgkâre'ihdividualized by f ield of activit yf th àkri'k'

.s, to the different accounts ahd. sub--w. .

''

:, .. j ' ' k l ' .é'Udéùli t 'é ë'hkilta/ed in the accounting plan z. .

. -.

. j . . . . ,6.3.2 ' U' p' .42 (Finpnce and Accounts Departm qnt) prqpase: a mpnag em ent açcount'

ltihj fruptthe'financial account which it subrm. . i.tt to â'n :xtërnal audritpr in service fo'rfeduk *' r l .t's't :V> , 2 ' ' ' . . . . . . ' . 'b . . . ' . ' . ' 'at Iéii'i 1ô yearé. Fuither tb thë retlöt'iltshêrjdt4itjh's èf thq Bànk, the manàgeemëni:

j ' . ;u-. . ! . .àcèdtl/lts df the 1 987 to 1 994 fiscal years haià bèen aud. iitesd. The weaknê:Fëà and.

,2 I jdoncldâlohs emanating from these audits a?e being teg. ularizè .

7 .6.4 û' Illinq and Debt Recoverv

: 4 t Fully computerized billing is centrplized irl the OPT head office in Cotonokl.it ià btlll vbtmonj thly. AII the centres are requirëd to forward th'e bills of t'he customers t. p6 head' ùfti 'c: which, in turn, sends them the corresponding bil.ls. Outsid'e a centret e ,

'kiàd iI.'fi' t,Iitél department of Mono which rups apcount, s recèivabl: on à pa'rallel basis,lö. ùa . ,kw . : kw ; 7 , . , ù ; u rj u g jjy y q. rjo; .tiiét'é Ik a gi> ih the others. Billing and distribution drqadlines improve

j. .k j jjvjjegss as tjae pubiic Tfèasury in6.4.2 H:nceforth, OPT benefits from the same p:iëftjl: of 'd4bt iecovery ; Law N O 90-0,'2 6' o7f , 1 7/b' 9 /9 O conf ers on it thit . right which it

sl.z : ' . . . . ' '

êkercléë. 'à ajainst certain insolvent d,ebtl. of th'e 'ptiizvâle seètpr. Attach,ments of realqstàtq âwnd 4. qùipment (vehicles) are carried out.thdroklg- h, Ipgal. o'fficers fpr its ow n accountk' . . J2 f . ' j . 'ln act:ö

.fà,ahce with the accelerated procédure stiptj 'lûwted by this Iaw. W hich has ènabled

C. .' ra. . ..&.. . 7 '. 1./- ... .:.-. d;k . azlahr. .. )2.71.. . ..,.': :2 r' ?. . .. nu -. .'... - = cku . ,L . k52 u. . .. . . . . .7.. . ... '.g . . . . . . u . .... .

-= X N. .tt .

1 1

it to improve its recovery rate of the first four bimonths of 1 996 put at 83% , althoughthis is below the 93% rate. projected for the period.

6.5

6.5.1 The tariffs of the domestic service are determ ined by the Board of Directorsupon proposal by the General M anagement of OPT. W ith regard to the internationalcom m unity system s, tariffs are fixed in accordance w ith m easures taken by theExecutive Council or international conventions.

Tariffs

6.5.2 At appraisal, the basic charge (BC) Fas CFAF 50 net of VAT. It remainedstable until the parity of CFA franc w as changed. In July 1 994 and January 1 995, therewere upward variations of 20% and 10% , i.e. CFAF 60 and 66. On 01 M ay 1 996, a20% drop in international tariffs was decided upon by OPT, followed in July 1996 bfan hourly modulation of tariffs with reductions ranging from 20% tö 5O% depending onthe periods of the day and the days of the w eek.

6.6

The first performance contract signed between 0PT and the State expired on31/12/91 . This contract laid particular emphasis on the payment of the reciprocalcom m itm ents of both parties to the contract. This enabled O PT to im prove its targetsof debt recovery from the Government through compensations made in 1. 991; the netbalance as of 31/12/91 resulting from the exercise was in favot?r of the Government.OPT'S overall perform ance under the first contract Ied to a second perform ance cohtractadapted to the evolution of the office; it was approved by decree NO 93-9 of 21/01/93.

6.7 Borrower's Perform ance

Performqnce Contract

y 'The Borrower s involvement in this project concernedthe conditions precedentto loan effectivenes: w hich w ere fulfilled after a Iong period of 1 9 m onths from the datethe Ioan agreem ent w as signed. It is to be noted that under the perform ance contractbetw een the Governm ent and OPT, the former is up-to-date and som etim es even inadvance in the paym ent of its telecommunications bills. Tberefore, hotw ithstanding 1hedelay in the entry into force of the loan, it can be said that the Borrow er's perform ancew as rpther satisfactory.

6.8

6.8.1 The performance of the executing agency is mitigated. Initially, the projectunit managed the project well and produced seven (7) quarterly reports. For variousreasons (staff transfer, promotions), OPT dism antled the Unit before completion of theproject, contrary to the Ioan conditions. The Studies, Programmes and Statistics Unitw hich took over w as not prepared for this activity. Consequently, the production ofquarterly progress reports was suspended, documents and data on the project werescattered and there was no coordination of the various project activities.

The Executing Aqencv's Perform ance

N'r . ' 7 ' ''7 7N'

12

6.:k2 On the whole, OPT managed the 2) prèiect dontracts well but Iacked rigour:. . . '

2 ' !' '. ' ' . '

- in the management of conttaclt Wit, Ij. .' cyeftain suppliers. Thus, contracts faréxcèQded their implem entation deadlines' wlpthopt 0 PT applyin'g the éahctiön

. ' . I - l .. '

Ekrlyyjjij,-''' ' '. claut4g/giip. ulated cancellations, resultin'j in p Ymênts morq thàn 4 years aftèt th:. I . ' . . . .

. .

.contfaciùal deadline of certain coatracls. ' ' ' . ''

. . .

- in the allocation of vehicle's as twb (2è)' e'rcss-epuntry vehicles 'were àlllocated.. '

to .postal services. ' '

6.9 ' Perlormance of Consultants and S''un,akp.pl'i:rs'

-.. . : . ' ) . .j . '' *. ( ' . . . .. .. . . . . . . . . ..6.;é.1 Th 'e ennineerinq consultaht's n. qtforkjgnce is d.eêm ed satisfactorvu. His.. l --. -'-' ' ; t . ' .'cohfiibution to the preparation of >pecificalions anà.evaloatleh o'f bidz.wvs ap p reciablé.

' k l i e part in the im plem e'ntation of t>rê' 7mlaiiln'tè'hatnce procedurés and wâsHé too an act y' ) . .

abl: to create a good work environment wit' h th'é: OPT' expêrts. ''

6.9.2 ' ' The suppliers' performance was .on the Whole bâtisfactory. AII th'e suppli4r:'I . -involved ih 1hy project implementation perfosmed their coptr4dts on schedule, with the

exe:'.I4 tl'ln' 'of SINDUS Equip; this compan'y fir eicepded ih e deadlines, ' w hith grëétly' ' . : *. j - . g ,affbtted th e' perform ance of other coniractsm.Thià compàny. s petfotmance is conbid e'red

.Iunuitikfactor jy.. : ' j .7 F'INA NCIAL PERFORM ANCE

l7.1 ' CömDarative ODeratinq Trend

.

j , . . , . j;s g, yayooo jy sys yo y7. 1 . 1 Thq comparative status of projections/attuals of OPT s oper#.t.

thë period 1 990-95 is given below in fnilliizps of CFA fran'c (a breakdown of theE 'fâting acco! uhts for the 1 988-95 peqiod'' i's founà in .An'në.x 6) .ô;è

13

Table 5.1Com oarative 0D, erating Accounts

(in millions of CFAF)

1 99O 1 9 9 1 1 9 92 1 9: 3 1 994 1 9:9.59Proj. Actual Proj. Actual Proj'. Actual' Proj. Actual Proj. Actual' Proj. Ac.tual:

Foceeds 6657 8693 7083 8585 7499 8729 7935 1 2222 8 1 49 16080 1 7412 19324Pùfthâ'se ' -.c'ohgumed 1 1 57 1 807 1 1 72 1 839 1 230 1 434 1 29 1 2 1 1 9 1 356' 2644 39.7,4 22,79,Value âdded 5500 6886 59 1 1 6746 6269 7295 6644 1 01 03 6793 1 3436 1 3438 fê4/'dStàff expenses 1 132 2 1 94 1 1 89 2410 1 248 2499 1 31 1 2559 1 376 2971 321 1 01;79,Uther expenses 1 32 1 42 O 1 1 8 O 1 26 0 2 1 2 1 54 301Amortization 2059 2676 2242 2935 2452 2598 1 854 6928 21 32 2639 6059 ::9.2'Firt expènses 651 1 1 1 683 31 8 71 7 3O9 753 798 791 1020 21 98 1Q05gpéfét. income 1 658 1 773 1 797 941 1 852 1 77 1 2726 (308) 2494 6594 281 6 9U. 98$. bh op:ràt. income (55) - 1 91 1 3 - (1333) 0 (4348) (48) ' (6984) 'h cep. income 1 2 1 3 - - 6Nët/oper. inc. . 1 658 1 730 1 797 1 1 48 1 852 1 784 2726 (1 635) 2494 2246 2768 2084

7.1.2 A review of the operation as revealed by the table above permits to observethdt 1: genefal, açluals are higher than projectiotjs in aII the accounts. The specific càseof àmottlzation expenses and provisions in 1993, is explained by a high funding rate of.anticipat:d risk, in the w ake of the change in the paqity ùf CFA franc in 1994 (the 1993..balance sheet was presented in 1 994). W hich do.es not comply with the ptinciple öfteparating the fiscal year. Furthermore, reserves for bad debts were also built up to tàkeaccount of the recom mendations of the apdit carried out by Arthur Anderson in 1992. 'On the w hole, the share of reserves amounts to CFAF 4, 170 m illion and, that ofamottizations, to CFAF 2,758. million. The increase in proceeds is far more accentuaihdthan thât in expenses. After a slight drop in 1 989 (Annex 6) and 1990, proceedsrecorded from 1 992 to end 1 995 steady rises in relative value of 3% , 3804, 32% àhd1 3% . The 32% increase in 1 994 results m ainly from international balances due,irrèspective pf the activity, which is the direct consequende of the devaluation of tàeCFA ftanc tcf annex 6).

7.1.3 The trend of the value added follows th'at of proceeds in thas the increase ipiritermedlàte bills was negligible from one year to another. Staff expensbs w eretelativ:ly checked from 1990 to 1993 before they rose in 1994 and 1 b9$ followihg the.rele'ase of prom otion arears and the paym ent of the training buryaries of the m anagerialstaff amobnting to abou! CFAF 330 m iflion in 1994. Financial expenses have beepcheeked; lheir increase in 1 994 following the change in the parity of CFA franc referred

f 1he miscelianeous interests received 'and incomes frpmto earliet, was offset by that othe INYELSAT. Therefore, net incomes, corrected by exceptional factors, were positivethroùqhout the period, with the exception of 1 993 which showed. a deficit for teasons. '''*' .

- ' '

alteady stated and necessitating significant reserves for Iosses and expenpes..

7.2 Analvsis of the Financial Structukf:

1 .7.2. 1 The f inancial structure is an'aly, zéd L ith,t'.ilt,4'çg. l.h thp ba,lance #heets drawn up' byOPT during the 1 988- 1 99 5 p'eriod , and prèg'k'tjr.t-ë-yë)-a',à f o'llows i'n m'illions of CFAF.

l7a b I e. .5,. 2 .Balance She.e4.g- .41 ,9)Bi''-& -. 1 ..9 9 5).

. kt , . ,./y,;)c...(in milllioritl

1 988 1 989 1 990 1 9:9'1 1 992 1 99à 1 994 ' 1 9é5

Assdts ,

a- N. .et .f ixeà . , ... ,J .

assets 21337 23325 20707 21 13Q' 2OB1'é 22067 28b63 354::;:. )

'

'

b- Current .assetà 2008 1 1 6753 1 0242 i'1 540. 1 0669 24 1 98 43047 6306:7

Total 4141 8 40078 30949 32670 31 287 46265 7 1 1 1 0 98465 '

t.i é! klititi (, ë;

c- E4tiiti ' , .'

; 1 2488 1 3894 1 5 1 86 1 *357. 1 47 1 3 1 6,240 20661 25970dzpitaj. ? . . !: MLT dqkp 5240 6071 ss3e , 644: 9802 ' 1461 4 ' 334.2,6 ' à'j' j. zs-d , , .

e- gT dèbfjt' 2aebo 2o1 1 a 1 0227 7864 ' d772 1 std 'bb 1,4.44 ë.-1 :jlà. 6to' ' ' Total 41 41 8 40078 30949 32676 J31287 45264 7 1 1 14 s 985$5/. . . .

' . . . I . .. . . J

. : .. . . ' c'

Llquldltk ' ' .j, . 'r4ti: (,b/ë) . 0.8. 5 0.83 . 1 .58 1 .57 2 .5Z 1 .ài); . z j ; .bèht erptio ' i

tli' il Ydl ' ' 0.'30 0.30 0.27 0.2.6 0.40 0.47 0.$2 ; (jk.6Q.* . . ' j . '% ô'f àétùi-ds//. assets 1 7. 1 ' ' 1 1 .3 1 6.4 1 4,2 1 7.6 5 1 7c4 1 2,,3 .. . ' $

2* . .. . , .r . , y , ,.,.. . (

7.2.,.2 ' Arialysis of the balance sheet's .of sth': Qu' f f ic: ,@h. ows .t..h'j@t thp nqtrydalgq: of f ix 'f,d.. :. . !. . . 1 - . :. : .!, ' . . q . $ ib . . : . ' . - .âéset: h. âd. è. hequyred vaàiations f rcm' 1 98. 8. kt, è 1.?-J979t2. . ,, b. :fqre yb. (ev styà. tb, '.I'l,'lzçsd. iyf rpm 1,9.r 9X'. ,.

j . ( ; y y t.. . t x ) . y g. y jyylsyj . , .j j . jjàtjd bhöwed an upward trend of 7% , 27% and 26 A sëspèqlivkl: up,lq,l 99.. .. . . .q; . k . . . ' . .

' ' '

.

* ' ' ' tj t ' .i: .explalned by the new capital adsè.t: ,àcq, ktitêd. u'nde. r the t'èlecom munlca.tioq:E

r i '. . . ; . k f - . . .

' '

. ' '

d'è.9' èId- ô, Meht prôlect f inanced bv th: Bànk 'é.in-. ,: i.)- 'illilkpfyfinà,nid, iv:rss,- w hitb is réf lpeied bv thè., . ; *' y ' .

J . ' - ' e

, ' @' ' '

. ' k . ' f i ' ..;. ' ' ' 3 ' -'' ' * ' - @ . %'** ' ,

' '

jI'b. âh''#ééö'- b rdqs'of th e above period. Current. àlks.eet,s zhowêd ih: sarrle ttkpd, r each. ihq àn:! z ,? ) .':'i 1 . h . J ' ' ' . ' . ' . . ' '- -' '''*' : ' 2 '' '''- .àllutl'hiè. h lgrth of 1 27 0/o i n 1 9 93

. ,' '

. ,

4 .

, .

.

.

.. . . jk . j . . . , . , , . . . ,. . j,i jy , . .' . .

7.2.3 ' OPIT resources registered a steady 'inerease. The. Iiqùi.dity r,4tip. impxrpvvd.. f r6.Y.

: , j . ' . R' : ' %. ' ' z . ' . -' r . J ; è '.'1 9:U and' exceëded 1 .5 from 1 993,. th'i: .is' rellrqc.ted. by th, 'q workilllgt céplià.l * h-ic. h: ,

h'èg' àtlké' ùp to 1 989, f irmed up Iater on; IikeW. isè the aim mèyd. iate cash .positloh.. . . . . . .

$.2.4 .O' h the other h and , the debt ratio. de1qf,.I'()f'@!#.u . r n: avqr@ge. 6.f 28,% fègjs. I:fpd,. . ) . . . . . . ; !. . 1 . ..

'

. . . ')y . . ,f rom 1 98.9: to 1 99 1 , rose to more than 52 04, tlb-lqttweq'h 1 9r 9, .2 and . 1 V.,' 9. )6-' ..: ; Th, I;' ratiy.) . y. . . . 7 q . j' J( v 1T j j h. : j r g : ..t:àch:d iti all-time hiqh of 62% in 1 994 ùo'ns:quelnt on the. effects o, f the devàluàtièn.a , ; j . '*'''' ' '-' ' ' . . '

Faèèd W lth a relatively high de. bt ratio, OPT shpotd take thë necessàry' stepl tö' bting it. . J . ., . .

'

bad. k to. ilôrmal. One notes an erratic variatiori irn the returh/fixe'd astéts rétiot, with ânJ . j uèjf.excepti6hal drop in 1 993 concomitant with the Coés of 1 993, therebyy fedùc ngflhanclng.

..t.e..w. .. ,. .... .. . L w .m,.Vxx..... ....'.uw . .1x. . .. a..*;e .w- .al h .-.

.. . m .r. ., . >,

15

7.3

The internal financial return of the PNAM project rose from 27.47% atappraisal to 29% on its com pletion. The assumptions used to determine this rate ofreturn are given in annex 8. The improvement of this perform ance parameter resultsm ainly from the im provem ent of the service quality w hich by the w ay helped reduce Iossof incom e, from the m arked increase in the num ber of connected subscribers and finallyfrom the control of the operating expenses.

7.4 Financial Conditions and Clauses

Proiect Financial Return

7.4.1 The six financial conditions precedent to Ioan effectiveness w ere:

- have regular allocations m ade to OPT'S annual budget to m eet its share ofthe project cost;

- find additional funds in the event of cost overruns;

- not to use the proceeds of the Ioan to pay duties on goods and servicesrequired for the implementation of the project;

- OPT has to m ake provision, at the end of each financial year, for bad debt,starting from January 1 988;

- show evidence that the Governm ent has on-lent the Ioan to OPT at a ratenot exceeding 7.64% a year f6r a pqy-back period of twenty (20) yearsincluding a grace period of fojlr (4) years. The draft on-lending agreementshall be subm itted to ADF for approval;

- subm it to ADF for approval OPT 's five-year plan for the recovery of arrearsfrom aII its subscribers.

7.4.2 AI1 these conditions have been m et. OPT allocations included in its annualbudget regular allocati6ns required to meet its share and finance the Iocal cost overrunsof the project. As aII the goods and services required to implement the projedt wereobtained net of duty, no Ioan proceed w as used to pay the various taxes and duties.The Ioan w as on-lent to OPT by the Borrow er on the term s stipulated in the loanagreem ent. '

8 ECO NOM IC PERFORM ANCE

8.1 The completion of 1he PNAM project enabled OPT to considerably incre4àe itsrevenues, m eet a Iarger num ber of pending applications, and im prove the quality ofservice. The resum ption of activities in aII sectors of the national econom y since 1 991certainly had a positive impact on the PNAM project.

' -7 == - .w -.... ..yr

1 6

8.2 The econpmic rate of return was not calculated .at ap praisal. This rate whiçhI .

stand: at 32% at completion (breakdown Of éaltjiiltàtion irl annex 8) , takes accouht of ,' .. . . I .

th 'e bènè'fits d'erived from the sakings made i'n tlstê project cost. . $. . t j ' ' . C'. '.gjjJ il, . .:tk9 SOCIAL REPERCUSSIONS

;' ,,r.

. - . .. ,l . . ' . .

9. 1, Socal Im pacts ,)

t1 ,iAmong the social benefits of the p roject are the strehg thening of ties and tf

. . . . 'con'tacts between members Of the f amily livittg outsidê thq villàge ; ihe f eëling .of ', . jj . .

.

. .securlty, time gain for . cèmmercial activities and quicker access to economic, ';'

. l ' . , - ::

idim. inistrative and political inform ation. In general, PNA M has m ade it poséible to fil'l the ,. ,;ïad sector. ' ,'.kgaps ln the ro

. ..j..,j. .; '

$9.2 Im pacts on W om en

. !t,/ . jApart from the above social benefits', w om en did. not desi.v: any spqcific . k,I , jaàvàntag. e from the project

. It can nevert.hel:ss .be stressed that the nsual motives ,,. - 0' , id' witf h ihe famlly are a source of sà'tiàfattion à7n

.d 'kecurit# fo'r lhem . Like the ' ' .?èuhiléct i jèèoijörtjlc. activity of the country, their commettlivàkl activitims have also developed. . 1

' . . '

1i

. -

. .. . . ..ji0 ENVIRONQENTALIMPACTS. -.

.

j1. ' . -;

--'.

. ' '-.

-'. ''''

10.1 The negative impact of the proj .èc't op tlgi: . environment is I'ittle. The àcqufted .

imlp Tôvetjieht p/oject wakt. i'nbtâltèd in the '..'-eqùipment of Ja rehabilitation and maihtenànce ; t..gitès and' existinn buildinqs. M ainiesnanceq.itmp.'ièvpme'nt' had .the imrriqdiptè' i'm pact of .''.

. '

. j j w.e v o . . . . .4lihiltih:g th e' m ovem ent of tbe workers, thcréby'f*ïd. 'uoihg the utiliz'ation of 'vehicles and '

.t' tàtö/s ',getné .

. ' *1

. ' : ' ' '#i; z -) .

' .

. . i : .q:.

'

10.2 Thej modernization of the Abomey énd B' bhicon Iozal n'êtworkt' nédëssitâ,tèd ' 1

thé éxécutio ( bf civil works . The pipe: 'iin4#lià4' tèd or Iiij. htened , weri b urièd ahd the j' i'ign the m ission did not observe an'y erosion jlgtèùnd wzà well filled. On project complé . , ,l

. .. . k:

cati:ëd b# ihe works. '$I1 SUSTAINABILITY OF ACHIEVEM ENT: t1

...-

. â. . . !'

! . , , J

1 1 . 1 OPT'S capacity to maintain the instzallratio. ns h4d .been effeqtively dëvelspo e'd '?. , 1 . .

-

( . . : d k,ih ordëf io ehsure the sustainability of thq 'invèttments. A1.1 the wo.fkè?ri.. h'avé akc'tuite . . :dl '

Iture; the periodic test pzc:ram mes were 'cömplied with in aI1 the 1a malntdnantce cul onents (switching

, transm. ission, powpr, I'ocal networks) . OPT dràw s up '.''network com

fp' ting slip on the quality of the

. oatipnal netwprk, which pûrmits t.o a'nàlyzë i ,1f7a monthl: rou

I intenance actions so neèessaresto .maint-a-io.. t', lvis'zq,uatity at a ,l'è,v,el that. .:)and antièipate ma ,l ' . - . jmeet: international standards.

''

'

klr .. -'...'

'

'---.111--

*

-

*

.

.1 1 2 IT h : C 0 t o h o u P r i n c i p a I M a i n te n â n c e C e n t. r e ( C-P M ) i s v e r y < e;I l e q;u i'p p. e d, w . i t h . j,1

' j , , ç . '

, , , g,. to O I s p rile atutri n g e q u i p m e nt a n d test bed > . ' lt ' c âlrri e s o tlt ef f ic i e nt rep': i rs of 'po we r .Qn,d. . ,k ' : lectroniè. subccm. ponents; it can offër its .' ''.1,cold equlpment

, as w ell as m odules and :., . . .

services to customers outside OPT and thus btiikl.d uù, an additional sburce of revenues ,'* .

JC 1 C Y Y * 5 '.; g '

yy , j, ;: ..1. x ,;6

. . : ' ...' a' '.1

. :?r -!..7.'.,-,.. . . ... .:z<, :... k . . -.s .. .....-,zr.e,-. r . . a.,., . . .. .u.. , xza.a.v. . .. .. . . .- .ak*.,:... .,... .., 'a.*

1 7

11.3 Under m aintenance, OPT includes in its annual budget credit allocationsnecessary for procuring the spares of the different installations; the technical know -hbwcapital acquired in the field of m ainténance w ill enable OPT to operate the equipm entduring its Iife.

12 BANK PEBFOBM ANCE

12.1 The Bank reacted to aIl the Borrower's demands. The executing agencymentioned in its completion qeport the Bank's Iong delay in approving the differentstages of contract award. lt also noted the lack of coordination of the services of theBank (operations and disbursements) leading to additionai delays in the processing ofdisbursement applications.

12.2 It should be noted that during the nine (9) years of project implementation, theBank carried out three (3) supervision misiions and one (1) portfolio review mission,which is inadequate. A greater Bank presence would have helped to Iim it the Iong delaysin solving the problems and especially to react after the dismantling of the project unit.

12.3 The Bank alone financed this project; and yet under the country'stelecom m unications developm ent program m e, a donors' m eeting m ade it possible tointervene a second tim e in th'e sector.

12.4 It should, however, be stressed that owing to the emergence of new services,the installed capacity of the autom atic telex sw itch becam e too m uch in relation to thedem and whose downward trend is a world-wide phenomenon. The Bank w as unable toanticipate this trend and recom m end capacity reduction.

1 3

13.1

13.1.1 The National Telecom m unications Netw ork Im provem ent Plan of Benin,thoughcom pleted six (6) years behind schedule made it possible to exceed the basic targets iet.ln reality, this delay should be qualified as m ost of actions w ere com pleted.four (4) yearsbehind schedule. The last activities are those relating to the utilization of the savingsmade in certain components or resulting from the mùdifcation of 1he projectcbmponents. This project was an important factor of telecommunications rqhabilitation.in Benin.

CONCLUSIONS, LESSONS AND RECOM MENDATIONS

Conclusions

13-1.2 The appraisal report had pointed out the risks of greater degradations thatcould Iead to higher rehabilitation costs in the event of a delay in project implementation.In spite of everything, the project was implemented behind schedule and theconsiderable degradation of certain instàllations Ied to outright replacem ents w ith newequipm ent.

13.1.3 Notwithstanding the implementation delay, the objectives of the project wereIargely exceeded in terms of quality of servicq and financial performance. The projecthelped inculcate in the O PT staff a m aintenance culture w hose effects are Iasting. Thecopfirmation of the high financial return' (27.47% at appraisal and 29% on completion)

18

f tb: prth'èct shows tbe complementary hatune; o'f'' tkhls type o.f project whose purpbseO , '

-.:fi: ' 1 ility of the exiàting ibstullatis' ns-rem ain: t e profitab

.

'

, j . ' . . . .13.1 .4 Th 'e technological trend in the telec:mtrnunications sector is too fasty To

'Iù iti èxpifts to follow this trend in ördé'f tp 'b. etter assigt the exëcutihg âg. ibhciës,enaà'

'' in l if s'kills klpgia'ding by màkinj them patlicip,ât: inthe Zank à ould give prioiity to thësemihars and refresher courses on. techni'cal ând rtznajemdnt s'kills.

1:.2 Lessèns

. j , .13.2.1 This project has several Iessons on méintenance p. rojects and alI prollects1

. . - - '

. financed by the Bank.

M aintenance Proiects'

. ,f13.2.: Projects with rehabilitation actiohs invtyl've a Iot of implementajipn deadtinq-.

rëlàtéd tI.:- k?.$, jetween the diagnosis of an installation an'd the rqhabilitatioo â'èiion, ibketéàte prqct. dur 'es that cannot be got round a'nd tfliât a're h'altdly comp rqsà'pk, Ie in time.''

i l ideration of the projedl byfhe .B'ank, ap h. raisal, :subiiilti:tàipin to' ihefihancinp iehueàt, cons . ..I (j jjks.. .,yjq. oatpre,Btpâtd föt approval, Ioan signature and effectivenr:ss, bidding prooq u

' l 'ri and finally rehabilitation actions. As thesepi#ioeht of the contract mobilization adva celne'to two years

, certain actioùk may'lapse.stagps tàkq o

Bank-financed Proiects

( '13.2.3 Delays in meeting the conditioljf: precedent yo 'Ioan effectiveness constitu4e

1 . . j :d prqjects. lt wou'ldone of t6e first causes of the delay ehcountered by Bank-f nancttn:t:tère be advisable tbat the Bank attacb, a greater impo'rtanc: t'4 èhls phase b.yàendxisg a ztart-up mission to tlae borrowers on projects experiencipg diffkoulties ink

'

. l . ,m eèiIug.. tla, con.ditions of entry intè furce.

' ''

l jbr, unit is tlae b.st suars.htke' bf the. Jt3.2.4 . Th

. s presence of a project implementaz.l itoring of project activities, sustainability of 'the experience acqeired andke.rmanept mpn'

i) t iranlsfer of know-how .the es.

.

j . . .'

13 2. .s Ri 'gorous application of the contractclau.ses permitsto lim it delaysandshqreby* . '

1 ' 7, ' ' 'improve revenues: It also compels the suppliers to honour their commitments and not( .

to obtaip contracts by playing o'n this .factor.

13.3 Recommendations

llt is recom m ended to:

. '

. oa .: ..w, ooltl' . . >. t'.UJ, 2..w -. z.-tix ...KJ.2V. .. u<. ..

---ii?!. :

19

the Borrow er

to take the necessary steps to m eet w ithout delay the conditions precedentto entry into force of the Ioans granted to him .

to ensure a better coordinatin w ith the executing agency by organzing periodicmeetings between OPT and CAA for project-related disbursements.

the Executinq Aoencv

to avoid in the future, dismantling a project unit without prior aqreement ofthe Bank. '-

to include in its organization chart a Directoraté'of Studies and Planning w hichwill be responsible for the management of aII projects from their planning tothe com missioning of the equipment/installations; date on which the structurein charge of opertation and m aintenance w ill take over. This approachpermits to have a framework that ensures a better project management,

, '

sustains experience, conserves the project memory and harmonizes networkdevelopm ent.

10

20

30 to apply very strictly the clauses of the contracts signed w ith :uppliers andexclude from their future shopping those of them w ith proven incom petenceand inability to respect contractual deadlines.

the Bank

to envisage for maintenance projects tbe application of the procedure ofanticipated actions for procuring goods and services depending on theurgency of the actions to be taken; a consequéntial financial reserve to covera w orsening of the degradation of the installations at the tim e of the actualrehabilitation action. '

to organize project Iaunching missions to the country in order to help fulfil theconditions prècedent to Ioan effectivness; notably by assisting in 1hepreparation of draft docum ents and by appealing to the m inistries and servicesconcerned to expedite the fulfilm ent of the Ioan conditions.

10

20

30

40

to organize the training of the staff of project units on the Bank's rules ofprocedure for the acquisition of goods and w orks, use of consultants and fotdisbursem ents.

to have its experts participate in sem inars and refresher courses on newtelecom m unications technologies.

to assist in finding quick solutions to the problems encountered by projectsby improving the time for pddressing problems submitted to it and byorganizing more regularly the supervision missions of projects financed by it.

50

. . . ., .. > v. 4

20

60 . to systematically include in the project compo.nents the necessary provisionsfor auditing project accounts.

70 to cancel the Ioan balance.''

j80 to pursue its supportio 1he dbvelop. meat ôtthe tëlecommunicatipns sectqr in- l - - ' . , ' ' ' ' .Bbnin w ith a view to achievinro t

.h'è's,etttolrxs.develorpmetnt objecllves .e:peciallyI ''''''' . ' '

in the rural areas.

c:àcOET-ikg-BèNlNTEL

. ' ', '

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N9

JV-P U B L I C 0 F B E-S.J-NNATIOXAL TELECOMMUNICATIO/S Y;TWORK IMPRT#S#ANT PLAN

. ANNEX 1#'

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A N N E X 2Page 1 o-i 1.

BEN.I'k

oonxNATIONAL TELECQMIM.UtMI#CIA' ëI)O' NS NETMAINTENAQ' :U:t IV' ék''#bQt''QENT' PLAN

Sources of Informplion:' .

Appraisal report of the National T'elecom munications Network Maintetnancel :. o/w e/87/94 of 25 August 1987

.lmprovement Plan of Benin. Ref: ADF/j .

' '

Lo 'an Agreement F/BN/TL/88/18

I , ' ,Qu 'arterly status report of OPT w orks, N O 1 to 7.

J -UPT'S project completion report

Reports of the ADB supervision, m onitotring and pörtfölio reyiew m issions.

1 . . . ' 'Yearly OPT telecommunications statistiès

1! ' '' 'Bank-financed contractsDisbursem ent statem ents by the Bank. .

. j ,Performance contracts 1 & 2 arid. enl%rçement d'ecrees) .. .

OPT'S balancé sheets and oper.alil?g âèc'gynts 1 988. - 1 995

O PT' s aud ited acco u nts f rom 1 98 8. tù 1 9 94

M iscellaneous documents and informatio'n gathered during the completionlreport m ission

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B.

!

ANNEX 6Pa e k o'f a'9

Main Projpcl AchievementsI .

LOCA L NETW ORKS

l dernization and e'xtension of the Abpmey and Bo hicon, networks throug hMo

' im plem entation. of works ànJ i':stillatieh of the following equjpment:the

Abom ev Bohlièon Total

. civll W orks

1- Lightened conduct (m): 1'9 768 1 7 451 37 21 9

j . '- Insulated conduits (m) à 738 6 54.8 1'0 286leom à of type: A : 1 '1' 2-. R

1

B 1 5 13 28C : 38 40 7 8

- Oross-connection cabinets (;R) 2 2 4I

- C'oncentration points (PC) : 1 60 1 76 336

Cables

I- Jransport (pairs) : 7 0U 70Q 1 400- Distribption (pairs) .. . 2 3.' iOO 2 400 4 700

( - .: . ' ''' ' .- Junèlion betw een 2 automatiç sw it.ch. es (m) 6 390 .7j ..ENERGY

l .'- S olar qnergy supply to the Savè, 'Yptlui, G' uinirou, Tamoussia, Bembéréké,l

.;q *

Sori, Alfakwara and Guéné radib Iinùyj relray stations.. ' . '

i ition Of 6 generators för t6e 'Ouidàh Lokèssa, Bohicon, Palf3kpu,- Acqu s . ,ibom ey and Natitingou èentres.

- Acquisition of 1 0 rectifiers fbç the é' ohicop, Abomey, Parakou D. jougùlu pndM iitihgou centres. ' '' ' 'a .

. : è

'

.

' oo ,A.h) para-kou ( 1 06:' Ah)- Acquisition of 1 3 batteries fqr th. q Bo.%itop (2Q, , ,, : . :t) Ajj.) Ajjyr gon

,Ouidah (500 Ah), Djouoou, Daùsitcl!' *), A,bo'lréby; ovè (2 , ,. h''

d

' ' . . ? ' 1:

Adjohoun, sakété, comè, oogbo', àmrà, Grèane#popo cen.treà.

) 'Earthing and protection of the .Col'çm6u, Uuidàh, Porto Novo, AlltogQ

aù), Dah

k èti Birnij Natitinj. ou, Kai' di atid AblbMeyTota, Lokossa, Go .obanii, Djo.ug , ,Calavi centres against Iightning.

sw iTcHlNG

, v E jjex 'v q f 5 1 2 . u n its..- Aeqùisition of an aù, lom ptic tklek s.W itch, t'yp.o ,

'r r a # ;

ANNEX 5Page 3 of 3

- Extension of the E10 electronic switch (OCB 283) of a capacity of 33 280Iines to 37 120 Iines; the installed capacity increasing from 25 1 36 Iines to29 376 Iinep.

D. TRANSM ISSION

- Acquisilion and commissioning of multiplex equipment on the Cotonou-. #

Bohicon, Bohicon-parakou and Parakou-Natitingou Iinks.

LoolsTlcs AND MAIN#CNANCE suppony

- Acquisition of 24 vehicles: 2 trucks, 1 light vehiclep 1 station wagon, 6 pickup, 14 cross-qountry vehicles.

E.

- Equipment of Colonou CPM with measuring instruments and varioùs typesof tools. . - ' '

.. .a.- r. .!o

$ d 19 lOtS Of C 3rd S 3r1 d mo d U l e S f O r S W itC h i n g , tra n $ m i SSiO n a n d po We r 7.; 2 ''' ' l ' '* U R J ) ( ( uurl M. ( t .equipment. Measuring equipment, spare parts and electronlc comoohentt. .. .>Ft#h.y,à. . k ;' . .

. . ' .. .., I st. f:

. . î ..);jt. 1 . Ae :j rktj!j!!liTECHNICAL ASSISTANCE ,.g Tkov. . ,, , , ; , y: iw. w j

,.7$1

- Recruitment of a consultant to assist the project 'unit in monitoring andsupervising the various phases of 1he goods and services acquisition

.operations and in Iaying down maintenance procedures.

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r X œ .o (nœ - .: Y G* y c W t 3 = m a- = 1 * % t

-œ z o . w > r oœ- > =œ * D ; œ > >

< = O b O X œ

D

.A > <*.

ANNEX 8Page 1 bf 2

BENIN

NATIONA L M A INTENANCE IM PROVEM ENT PLAN

Calculation of the Internal Rate of Return

ASSUM PTION AT A PPRAISAL

At project appraisal, the revenue assgmptions were based on:

* 5 000 additional telephone Iines generated by PNAM* 1OO new telex subscribers* im provem ent of the calls efficiency rate* improvement of ihe faults detection rate

1 .2 The corresponding charges are based on a 5% increase in purchases, personnelexpenses and other operating expenses along with a 10% yearly increase.

2-

2.1

2.1.1

SITUATION -UPON I-M PLEM ENTATION OF THE PROJEC-T

Technical Performance

#he number of additional subscribers all projects put together:

Before Proiect After Proiect Addltional 'Lines

1 1 496236

TelephoneTelex

26 557199

1 6 1 74-37

2.1 .2 Impact of the improvement in 'quality service.

The quality service brought about by PNAMincrease in revenuqs.

has contributed a lo1 to the

The f ollow ing indicators conf irm it:

lndicators

* rapidity of fault detectlon

1 day7 days30 days

* Calls efficiency rateIocalinter-urban

Value in 1988 Value in 1995

6 O O/o7 0 %

63.58 %89.49 %95.10 %

55 %4 3 O/o

9 9 . 50 F/o7 9 . 37 %

l

ANNEX 8Page 2 of 2

i.2 Rèvenues and Exnenàes

1Based on these indicators :1 ' , hare accounts for .10% of the revenu

, res reuordëd by op-rRevenue: : PNAM s s

àt th'ê àejirthihg of operations ( 1 991-1 993.). lt iot. reaksêdût. o 1 6f$' g in' 1.,9,94, .tc.take acdbunt

èf thé ektëhslon of the electronic ' a'utorh aiid swiioh, revenuès i rcim tilex. fhe.. j ' , ' . . - .(joimimiàuiàthjhg of tl7: Abomey and Bohico'n Ioc'al riètworks and the pprrf4irmanoe bf â1I the

. jj . . . . ..Investmeht: m ade.

I. Ex'penses: Like the revenues, theveyp. epges are determinpd by the reâlizations

f the period: 2% goes to operating charg. :eà . âtjcj 1 % ' tp amortizattjon and j, rovisionot 0/ increa:ë 'is uséd for projectidns ptarling frofn 1 996.expenses rom 1 990 to 1 995. A 5 o

Thè table below gives a bfeakdown of' the calculatiops.

' lnvestm ents Exrzenses Beveoues Cash floW s

1990 3263.00 1 10.00 85*.00 . -251 $.00

19:1 1 181 .00 .1 17.00 8.73.00 -425.001::1 825.00 107.00 1 222.Q0 296.00.1993 2230.00 16.5.00 , 1849.00 -546.00j19 4 2635.90 142.00 2222.00 -555.00

1j' 95 2033.00 150.00 2555.00 372.00i 996 810.00 1 57.00 1938.0*0 ' 1971.001997 165.00 3379.00 3214.001998 174.00 3*86.00 3712.001 9é9 183.00 . 4468,.00 4284.00loôo 1 92.00 4468...00 4276.00kUU. J 2O1 :00 4460* .0O 4267.9Q

' k t2 2 2 1 J .O0 4458.010 42' 57.:bd 446:.00 ' 4246

.026köè3 222.t) .1, U04 233.00 4468.00 42.37.00

Internal Rate of Return: 29 %

ANNVX 9Page 1 of 1

BENIN

NATIONAL M AINTENANCE IM PROVEM ENT PLAN

Calculation of the Econom ic Rate of Return

ASSUM PTIONS

Investment and Oneratinq Costs1 . 1

i. The investment costs are converted into economic costs on the basis of the total project costnet of price escalations (excluding 1 5% inflation). ' ,

ii. . The operating expenses are determ ined on the basis of 1he conversion factor obtained frofnthe average rate of inflation over the period 1 988 to 1 995; this rate is 1 5% ; thus the conversion factorstands at 0.85. It is applied to expenses used to calcùlate the IRR.

The average Iife of the fixed assets is estim ated at 1 5 years.

1.2. Revenues

i. They are determined b: the same factors used to calculate the IRR, with an increase whichtakes account of the economic kenefits the project will yield in its maturity phase. These benefits haùe beenestimated at 20% of tbe revenues used as a basis for determining the internal rate of return.

Based on these factors, the ERR is as follow s :

Investments

3263.001 1 81 .0O825.002230.002635.0977..10810.00

Expenses

93.509 9 .4590.95140.251 20 . 701 2 7 . 601 33.451 40.251 47 . 901 55.551 63.201 7 1 .701 79.351 88.701 9 8 .0 5

Revenues

0.001 029.601047.601466.40221 8.002666.403066.003525.604663.20536 1 .6O6433.907 7 20 . 709264.841 7 1 1 7 .8 11 334 1 .37

Cash flows

-3357.00-261 .0Oi 32.00

-904.00-537.002462.002 123.003385.00451 5.005206.00627 1 .O07549.009085.0010929.001 3143.00

199019911992199319941995199619971998199920002001200220032904

Economic Rate of Return 32%