• Référence: P-GM-AAF-005
• Date d’approbation: 22/06/2009
• Date de début: 10/12/2009
• Date d'évaluation: 31/03/2009
• Statut: En coursOnGo
• Agence d'implémentation: DEPARTMENT OF STATE FOR FISHERIES OFFICE OF THE PRESIDENT, BANJUL
• Emplacement: Countrywide

While the ongoing activities will continue under the existing 5 components, the supplementary loan will only provide funding for components: A) Improvement of fisheries facilities and Infrastructure and E) i.e. Support to Project Management. Specifically, the supplementary financing will be used for:

Component A) Improvement of fisheries facilities and infrastructure: The supplementary loan will be used to make up for the financing gap to build the Banjul fisheries jetty which will provide modern landing facilities for at least 20 industrial fishing vessels and 150 canoes and directly benefit up to 2,000 fishers, fish mongers and private operators. A fish market will be constructed at Bakoteh. It will be used by about 100 traders (80% of which will be women) to buy and sell fish and fish products in good hygienic conditions to an estimated 100,000 consumers. Inland fish landing sites will be rehabilitated at Bintang, Tendaba and Albreda as well as 11 km of access roads. These landing sites will be used by about 2,000 fishermen and fish mongers and it is estimated that they will contribute to a production increase of 1,500 tonnes of fish. The final detailed engineering designs for the various works and tender process are ready and the firm to carry out the construction activities has been selected. In order to ensure sustainability and rational use of project established infrastructure, agreements have been entered into with the Gambia Ports Authority (Jetty), Kanifing Municipal Council (Bakoteh Fish Market) and management committees of Community Fisheries Centres (inland landing sites) for the management of the infrastructure.

component E) Project Management: The existing PIU will continue to be utilized to provide continued effective planning, management, coordination, implementation and monitoring of project activities. The project will finance the operational and staff cost of the PIU in addition to some sector-specific studies/consultancies where necessary. The project management team will be adequately funded to ensure that effective supervision is carried out on all the construction works. Under this component some limited training activities, especially for women and youth, will also be conducted to ensure an efficient use of the facilities.

the proposed supplementary loan is in conformity with Bank Group Policy and Procedures relating to supplementary financing, Ref No. ADF/BD/WP97/90 of 11 August 1997 which states that "the Bank may consider supplementary financing for cost overruns; a) when it is believed that a Bank-assisted project cannot achieve its objectives without additional Bank intervention and; b) when the reasons for the cost overruns are clearly beyond the control of the borrower and the borrower, despite genuine efforts, is not in a position to provide additional financing."

The project is at an advanced stage of implementation; however the project will not be able to fully achieve its development objectives if the infrastructures planned are not put in place. The amount of UA 5.0 million requested for the supplementary loan is being sourced from the Nigeria Trust Fund (NTF) window which has an estimated grant element of 51.40%, making it favorably comparable to the 45% threshold set by the government to preserve the country's debt sustainability. In other words, the NTF option meets the Debt Sustainability Assessment (DSA) requirements for the Gambia. The availability of the requested amount from the NTF is confirmed. The interest and commitment charges for the Supplementary Loan will be those applicable to NTF.

The major pillars identified for Bank support in the AfDB/WB Joint Assistance Strategy for Gambia (2008-2011) are:

(i) Strengthening the institutional framework for economic management and public service delivery, and

(ii) Enhancing productive capacity and accelerating growth and competitiveness. The project is in line with pillar 2 of the PRSP II 2007- 2011 and pillar 2 of the JAS (2008-2011), both related to enhancing the capacity and output of productive sectors (agriculture, fisheries, industry, trade, tourism and infrastructure). The project aims to contribute to Government's goal of accelerated GDP growth and poverty reduction and sustainable livelihoods through efficient use of the water resources and provision of rural infrastructure. Furthermore, the project remains technically sound, socially attractive, economically viable and sustainable from the environmental perspective. Its implementation will enable the Bank and the Government of The Gambia to achieve the major development objective set at appraisal as well as the expected outcomes.

Justification in relation to specific conditions

The present Supplementary Loan financing is in conformity with the specific conditions for considering supplementary financing: - the project has an overall "satisfactory" supervision rating (2.75); -the cost overruns are caused by:

(i) costs underestimates at project appraisal, as there were no feasibility studies and limited available baseline data to determine the real cost of the construction of the jetty;

(ii) global inflation levels especially for building materials and crude oil;

(iii) delays in procurement procedures and

(iv) exchange rate fluctuations. These costs overrun are beyond the control of the Government of The Gambia; -BADEA had been approached to cover these extra costs, however their country budget allocation did not allow for an increase of funds allocated to AFDP; -it has not been possible to reduce total cost of the project through changes of specifications. A reallocation of funds, from services to works, for an amount of 0.83 million was approved by the Board on September 15, 2008 in order to undertake only one of the five lots (i.e. part financing of the contract for Lot 1 construction of the fisheries jetty); -the project is technically, economically, and financially viable even with the cost overruns as demonstrated by the revised EIRR; -the construction of the infrastructure to be financed by the supplementary loan is essential to achieve the project objectives; -there are no other exogenous constraints foreseen that could hinder the completion of the project.

MKANDAWIRE Timothy Blackwell Kausipa - OSAN4

Source	Montant
FSN	UAC 5.000.000
Governement	UAC 500.000
Total	UAC 5.500.000