11 ANNEXURE 1: NAMIBE PORT TRANSPORT SYSTEM

11.1 INSTRUCTION TO TENDERERS

(Not provided here, but is available)

11.2 TERMS OF REFERENCE

The Committee of Ministers of the SATCC decided at their meeting in Lusaka on 24th January 1990, that the Technical Unit of SATCC together with the People's Republic of Angola look into the Namibe Port and its Transport System in order to define the requirements to activate its status as a regional port and subsequently to prepare respective development programmes. On 14 June 1990 the SATCC Committee of Ministers Meeting at Mangochi considered the document on the Terms of Reference presented by the Technical Unit (Terms of Reference for the Preparation of a Development Plan for Namibe Port Transport System: Project 0.0.10). It also considered a new document submitted by the People's Republic of Angola on the proposed Draft Terms of Reference. The Ministers meeting decided that Angola, Namibia and SATCC/TU should harmonise the two documents. Agreement for such a single document was reached between the two governments of Angola and Namibia on 19 July 1990 in Luanda. After having it discussed with the SATCC/TU the single document will be presented to the Chairman of the SATCC Committee of Ministers who should be authorised to consider it for approval on behalf of the entire Committee of Ministers.

From the regional point of view the Namibe Port Transport System can potentially serve both, the southern parts of Angola and the northern parts of Namibia, even the whole of Namibia if the South Africa occupied port of Walvis Bay would not be at the Republic of Namibia's disposal and thus provide Namibia with an additional SADCC route for its foreign trade. As other SADCC corridors the Namibe Port Transport System consists of a combination of infrastructures which involve various areas, such as ports, railways, roads and telecommunications.

A "Special Assistance Program for Angola" was prepared in 1988 by the Southern Africa Transport and Communications Commission SATCC. This program includes basic programmes for the Namibe Port Transport System. A report on "Transport and Communications in Namibia" financed by the Swedish International Development Authority SIDA was completed in March 1990 for the Ministry of Works, Transport and Communication of the Republic of Namibia to serve as a basis for initial policy and development planning for the transport and communications sectors. The services of a consultant are now required to combine the data from both Angola and Namibia in order to prepare a development plan for the Namibe Port Transport System.

11.2.2 BACKGROUND INFORMATION

The Namibe Port Transport System, comprising the ports of Namibe and Sacomar, the Moçamedes Railway and the road from Lubango to the Angola/Namibia border at St. Clara/Oshikango, is fundamental to the development of Southern Angola or the Namibe hinterland including the provinces of Namibe, Huila, Cunene and Cuando-Cubango. This area is about one-third of the area of Angola and, apart from iron ore, mined in large quantities until 1975, has deposits of many other minerals (copper, lead, zinc, marble, granite, kaolin etc.). The area also offers great potential for development of agriculture and agro-industries. Coordenacao Recursos Externos (CRE), a unit specially set up for the coordination of external resources for the reconstruction of Southern Angola, has already prepared a 4-year programme for the development of all sectors of the economy of Southern Angola, including transportation, and identified various projects requiring an investment of US $ 580 million, mainly for rehabilitation of existing capacities. The success of these projects will very much depend on the capacity of the transport system to efficiently carry the traffic expected to be generated as a result of these projects.

The Namibe Port Transport System also offers a shorter and more economical rail cum road route for exports/imports for Northern Namibia; between Namibe and Lubango by rail and between Lubango and the Angola/Namibia border via an existing road. The Namibe Corridor creates a development impetus for Northern Namibia with the highest population densities in Namibia. Especially Ovamboland, so far a highly neglected area in Namibia, offers great potential for the development of agriculture and agro-industries. The Government of the Republic of Namibia regards the development of Ovamboland and other areas in Northern Namibia as one of their highest priorities. Agricultural developments will lessen the dependence Namibia's on South Africa as far as food production is concerned. The Namibe Corridor creates a very important alternative route to the access route to the port of Walvis Bay which still is under South African Administration and which is not at the Republic of Namibia's free disposal.

The design capacity of the Namibe Port, based on past performance is 0,23 million tons and that of the rail system is 6,5 millions tons per year. Due to their deteriorated condition and the current economic depression of the region, the Namibe port current handles an annual traffic of 0,15 million tons and the Moçamedes Railway (CFM) 0,26 million tons (1989). The infrastructure, locomotives, rolling stock and other equipment of the system are in a run down condition, partly due to infrequent use and partly due to deferred maintenance as a result of inadequate availability of skilled staff and foreign exchange for spares. The rehabilitation of the infrastructure and other physical assets is of utmost importance to enable the transport system to discharge its role in the development of Southern Angola. While the rehabilitation of the Namibe Port Transport System has not been planned as a regional project in the Special Assistance Program for Angola, originally prepared jointly by the Government of Angola (GOA) and the Southern Africa Transport and Communications Commission (SATCC), it is proposed to include the Namibe Corridor into the SATCC Corridor System, jointly to be effected by GOA and the Government of Namibia (GRN). A number of projects for the port, the railway and the road to the Namibia border have already been identified, amounting to a proposed investment of US $ 13,7 million for the Namibe port, US $ 76,75 million for CFM and US $ 15,0 million for the rehabilitation for the Lubango-St. Clara/Oshikango road excluding the bridge over the Kunene River at Xangongo [39]. The projects are proposed to be carried out in two phases, an emergency phase and a short-term phase, the aim of the emergency phase being to concentrate on the most urgent rehabilitation works and of the short-term phase to take up the most essential rehabilitation works with a view to build up the required operational capacity.

Following Angola's membership of the World Bank in September 1989, it requested the World Bank to take the lead in coordinating donor support to facilitate rehabilitation of the system. This study, which is expected to be financed with assistance from the World Bank, would facilitate a full scale, coordinated and well-planned programme of rehabilitation and upgrading of the port and the inland transport system. The study should be designed in two inter-related stages. The first should present a coherent plan for rehabilitating the system to retain its operating integrity with the emphasis on the sequence of investments that will make maximum use of existing assets, creation of a commercially viable entity free from reliance on Government support and establishment of operating systems and manpower development that will induce professional excellence in the system's operations. The second stage should focus on the feasibility and optimum timing of investments in further upgrading and expansion of the system needed to handle the expected increase in traffic both in the short and long-term and make the system more efficient, profitable and self-sustaining in terms of generating adequate cash for future investments.

11.2.3 HISTORICAL BACKGROUND

Construction of the 756 km long Moçamedes (present-day Namibe)-Menongue railway line commenced in 1905 and was finally completed, along with the branch line from Lubango to Chiange, in 1961. The line was first constructed to 600 mm gauge, but was later changed to 1.067 mm (3'6") except for the Lubango-Chiange branch line, which was finally abandoned. To exploit the iron ore mines at Jamba and Cassinga, a branch line was constructed in 1967/69. The branch line connected Entrocamento, a main line station 525 km east of Namibe, to Jamba (17 km from Entrocamento) and then extended to Tchamutete (96 km), a station close to the Cassinga iron ore mines. The dedicated port of Sacomar was constructed around the same time, in 1968, as an iron loading terminal. The port of Sacomar is located about 10 km north of Namibe and has a loading capacity of 5.000 t of iron ore per hour.

In order to carry the predicted high volume of iron ore traffic and operate special purpose wagons with an axle load of about 16,50 t, the track was relaid from the mines to the Sacomar port with 45 kg/m rails. The line was also regraded, curve alignments were carried out and the Chela variant, connecting Chela to Chanja by by-passing Lubango, was constructed resulting in a saving of a distance of 33 km. As a result of these changes, 595 km of the track were fitted with 45 kg/m rails, and the rest (312 km) with 60 lb/yd rails.

The general cargo is handled by the commercial port of Namibe, located in the south-east corner of Baia de Namibe. Both the ports of Namibe and Sacomar are under the same port management. The iron-ore traffic continued until 1975 with the peak level being reached during 1973 when 6 million tons of iron ore were exported. The facilities at Sacomar are currently being used as an oil terminal with a separate berth for tankers. The railway line and the port of Namibe continued to be operational but the railway line is operative only between Namibe and Matala (434 km), carrying both passenger and freight traffic.

The road from Lubango to St. Clara/Oshikango at the Angolan/Namibian border is 424 km long and was constructed to bitumen surfaced standard in various phases between the 1950s and the late 1960s. The first 16 km from Lubango towards Chibia were constructed in the late 1950s and the remainder of the road to the Angola/Namibia border during the period 1960-69. Since 1974 no maintenance has been applied.

11.2.4 PRESENT SITUATION

11.2.4.1 NAMIBE PORT

The port of Namibe has a total quay length of 875 m with varying draft from 3,0 m to 10,3 m (480 m with 10,3 m; 130 m with 6,0 m and 265 m with 3,0 m). The port is in a well sheltered bay and no siltation problems are encountered and consequently the water depth needs very little maintenance. Quay apron provides rail track and rails for electric quay cranes for a length of 610 m. The available back-up area is limited due to a 40 m high sand stone cliff. Covered storage of 7.200 m2 made up by two sheds and open storage backing up to the cliff are available. Adjacent to the port, a cold storage of 3.200 t capacity exists. There are 9 quay cranes, 3 of which need to be scrapped and replaced, 2 mobile cranes which are out of use but which can be repaired and 2 busses, cars and 2 tug boats. There is only one container handling platform which is in a poor operating condition and this affects container handling operations.

There exists settlement of a portion of the quay apron surface between the inner rails of the shore cranes. Almost all fenders are out of their fixtures and need replacement. Pavements of port roads and storage areas are badly worn. Workshop facilities are inadequate. Auxiliary facilities like the workshop, garage buildings, power and lighting and water supply systems require refurbishing and revamping. Hardly any fire fighting equipment is available. The 15 km of railway track, constituting the port railway, are in a bad condition.

The port has not developed a specific investment program, although:

- There is settlement along the 175 m length of the wharf, seriously hampering movement and causing a portion of the dock to be inoperative;

- Wharf cranes are in a state of disrepair, needing to be scrapped/replaced or refurbished;

- Of the two tug boats, one is totally unserviceable and the other is only partially workable, resulting in long detention of ships;

- The maintenance system is very poorly operated due to the non-availability of spares and skilled staff;

- At least 40-50 mobile equipment of fork-lift class are to be scrapped due to a lack of spare parts because they are unsuitable for port use. This will greatly diminish the cargo handling capability. There is only one container handling fork-lift in the port, which is grossly inadequate. At least 2 front lifters need to be purchased for meeting the minimum fundamental requirements.

The Namibe Port has a total working force of approximately 900, deployed in the operations and support services. There is no training program in effect and lack of trained manpower and absenteeism are adversely affecting the port operations. The staff deployment for operations and services is not balanced.

The port of Sacomar was constructed in 1968 for the export of iron ore. The facility comprises of a jetty (325 m x 18 m and a water depth of 19,0 m plus a bridge of 200 m x 12 m used as an oil berth), a loading system with a capacity of 5.000 t per hour and a stock yard with storage capacity of 1,8 million tons. Although the iron ore mines have been closed since 1975, the iron ore handling facilities are still in good condition. A total oil storage capacity of 30.150 t, in seven tanks, is available.

11.2.4.2 CAMINHO DE FERRO DE MOÇAMEDES

The Caminho de Ferro de Moçamedes (CFM) has a total length of 907 km of which 756 km is the main line between Namibe and Menongue. The main line gauge is 1067 mm (3'6"), changed from 600 mm in 1967. BS 90A (45 kg/m) rails have been provided for 595 km (iron ore mines to Sacomar port) and the balance of 312 km of the railway line are fitted with BS 60A rails. Originally steel sleepers were provided, but during relaying of the main line these have been changed to wooden sleepers. The wooden sleepers have deteriorated with age and, in critical sections, have again been replaced with used steel sleepers. The line is ballasted to varying depths with local granite. All bridges are designed for 20 t axle loads. Bridges on the Namibe- Jamba route are in good condition. Four bridges on the Jamba-Menongue section and one on the Cassinga branch line have been sabotaged.

The CFM has 35 main line and 8 shunting locomotives. Sixteen of the main line locomotives are diesel-electric of the U-20-C type, supplied by General Electric (the same type used mainly by the Namibian Railways TransNamib Limited) and 19 are diesel-hydraulic of the H 1500 type, supplied by Krupp. Out of the GE locomotives, 6 are in service, 6 can be repaired and 4 may have to be scrapped. Seventeen of the Krupp locomotives need to be overhauled. All shunting locomotives are diesel-electric. CFM has a total of 1.416 wagons out of which 949 are special purpose wagons for transporting iron ore. 1.044 wagons, out of 1.416 are in service and others need repair. Out of a total of 33 passenger coaches 29 are in service although the condition of 17 of the coaches is very poor. With the passenger traffic growing, the inadequate availability of coaches is posing serious problems.

The main workshop at Lubango is well equipped. The workshop has good facilities for machining, casting and forging. The workshop can be geared to manufacture for other enterprises. There is an acute shortage of trained staff. The large variety of designs of locomotives used on CFM has added to the problems of maintenance. Exchange of Krupp locomotives with GE locomotives of Caminho de Ferro de Luanda (CFL) may be to the advantage of both the railways. The diesel shed at Namibe is well equipped. CFM has a total working force strength of 1.600.

Overhead open line wire circuit is used for communications. Train control is centralised at the control office at the Lubango station. The posts and line wire on the Sacomar-Lubango-Jamba and Cassinga routes were completely reconstructed in 1966 with a three-pair circuit which is used for block working, train control, inter-station and line-side communications. The circuits are working effectively except in the Carvalhais-Cassinga Mine section, where the line has been sabotaged. The old open wire circuit on the section from Entrocamento to Menongue is not operational.

11.2.4.3 THE ROAD: LUBANGO-NAMIBIA BORDER

The basis of the Namibe Port Transport System will be the port system of Namibe/Sacomar, the CFM from Namibe/Sacomar to Lubango and the road from Lubango to the Namibian/Angola border at St. Clara/ Oshikango and not the road link between Namibe to Lubango (187 km) and further to the east via Matala, Kuvango and Menongue to Cuito Cuanvale, 738 km to the east of Lubango. The coastal road between the fishing ports of Lucira and Tombwa which passes through Namibe also doesn't form part of the Namibe Port Transport System.

In the short/medium term the Lubango to St. Clara road offers the greatest potential for upgrading for use as an emergency supply route from Namibia to Angola and vice versa. The basic characteristics of the road are:

- 6,0 m Carriageway with 1,0 m shoulders on each side;

- Normally stabilised base course, min. 150 mm;

- Carriageway: double bituminous surfacing;

- Shoulders: mainly gravel but on a few sections: stone
   pavement.

Due to the favourable terrain, soil and subsoil conditions there are no sharp curves, neither horizontal nor vertical. The road with the classification of a trunk road was upgraded to surfaced standard in various phases and was completed in the late 1960s. Since 1974 there has been virtually no maintenance work carried out. Only smaller structures over numerous smaller rivers and streams, which were destroyed during the war, have been replaced or filled up without re-installing new drainage structures. The various road sections are described in the following table:

TABLE 10 DETAILS: ROAD SECTIONS: LUBANGO - ANGOLA/NAMIBIA BORDER

|==================================================================|
|   ROAD SECTION   | DISTANCE |       SOILS/ROAD CONDITION         |
|                  | km       |                                    |
|------------------|----------|------------------------------------|
| Lubango-Chibia   |    44    | Thin layers of laterites on        |
|                  |          | granite or gneissic rock /         |
|                  |          | mostly fair but some potholes      |
|                  |          | and broken surface edges on        |
|                  |          | rim of bitumen surface             |
|------------------|----------|------------------------------------|
| Chibia-Chibemba  |    86    | Hard clays with sand and           |
|                  |          | gravel blocks / road bad with      |
|                  |          | very little surfacing intact       |
|------------------|----------|------------------------------------|
| Chibemba-Cahama  |    63    | Sand and gravel on tertiary        |
|                  |          | sedimentary rock / road fair       |
|                  |          | with some potholes                 |
|------------------|----------|------------------------------------|
| Cahama-Humbe     |    95    | Soil as above / middle 40 km       |
|                  |          | bad with broken or missing         |
|                  |          | bituminous surfacing and some      |
|                  |          | damage to the formation,           |
|                  |          | elsewhere fair but potholed        |
|------------------|----------|------------------------------------|
| Humbe-Xangongo   |    11    | Sand and silt / road in bad        |
|                  |          | condition due to heavy military    |
|                  |          | traffic, smaller structures        |
|                  |          | recently rebuilt or filled up      |
|                  |          | except Kunene Bridge at Xangongo   |
|------------------|----------|------------------------------------|
| Xangongo-Ondjiva |   101    | Arid sandy soil on sediment-rock / |
|                  |          | road in principle fair             |
|                  |          | with potholes and war damage       |
|------------------|----------|------------------------------------|
| Ondjiva-Namakunde|    30    | As above, but less potholes,       |
|                  |          | vegetation crowding in on surfacing|
|------------------|----------|------------------------------------|
| Namakunde-       |    10    | As above, but still more vegetation|
| St. Clara        |          | on surfacing                       |
| Namibia/Angola   |          |                                    |
| Border)          |          |                                    |
|==================================================================|

The original reinforced concrete bridge over the Kunene River at Xangongo was blown up and destroyed for the first time in December 1975 and for the second time on 30 August 1981. The main span (30 m) adjacent to the end span on the Xangongo side is totally destroyed and has been replaced by a Bailey bridge. The other three main spans (30 m) are broken in the middle and over the supports but it is still possible for trucks with large wheels and multiple traction to pass at low water over an emergency structure (constructed 1987/88) partly built over the central two destroyed main spans . The traffic has then to pass over the destroyed north-western main span which is broken in the middle. This is only possible at low water. All other 12 m spans at the north-western part of the bridge (total length: approximately 750 m) were completely destroyed in 1981. All traffic has to use a bypass with two Bailey bridges. Only one way traffic is possible and the maximum axle load on the Bailey bridges is 5 t. A ferry system is currently (July 1990) under construction.

The complete rehabilitation of the Lubango to St. Clara/Oshikango road can take some years. Meanwhile, there is an urgent need to partially rehabilitate the road, to ensure that it will be possible to make use of the Namibe Port within 2 to 3 years. For this reason, this road should be rehabilitated in phases. Emergency works should be put in hand to repair the road and replace the Bailey bridge sections over the Kunene River with more substantial structures/ ferry service, even if only of a temporary nature.

11.2.4.4 OTHER INFRASTRUCTURES: ANGOLA

There are airfields at Namibe (main runway 2.700 m long), Lubango and Menongue, with frequent commercial flights to and from Luanda in particular. The airports at Cahama, Xangongo (main runway 3.000 m long, built 1987/88) and Ondjiva in the Cunene Province does not handle civilian traffic at present.

Telecommunication links are currently functioning very poorly resp. are non-existing in Southern Angola. In addition, there are as yet no direct connections between Angola and Namibia. For this reason, it may be necessary to establish a separate emergency radio system in the case of an emergency, if it is foreseen that use can and should be made of the port of Namibe. Based on the assumption that two channels would suffice, the radio system would comprise two HF radios in the short wave band (0,5 - 30 Mhz) in Namibe, Lubango and Windhoek, respectively. The radios will have interface for telephone as well as telex. The terminating points would be attended by operators, who would manually interconnect the radio channels to the public telephone networks or transfer telex messages. The output of the transmitter would be 150 Watt, or if required, 500 Watt.

It is also envisaged to construct a power line from the Namibian power grid at Ruacana/Calueque to Xangongo.

11.2.4.5 PRESENT INFRASTRUCTURES: NAMIBIA

The network of the Namibian railways, run by the state-owned corporation TransNamib Limited TNL consists of 2.382 km. The main line runs in a south-north direction from the South African border at Nakop and continues to Swakopmund and Walvis Bay via Windhoek and Usakos. A branch line to Lüderitz connects with the main line in the south and a branch line connects Windhoek with Gobabis. Usakos is connected with Otjiwarongo, the latter with Outjo as well as Otavi which is connected with Tsumeb and Grootfontein. There are no rail links with neighbouring countries except with South Africa.

The road network consists of 4.324 km proclaimed trunk roads (4.168 km built: 3.363 km bitumen; 805 km gravel); 8.792 km proclaimed and built main roads (1.086 km bitumen; 7.496 km gravel; 69 km salt-gravel; 141 km earth); 28.684 km proclaimed district roads (25.800 km built: 57 km bitumen; 16.896 km gravel; 157 km salt-gravel; 8.690 km earth) and about 21.700 km proclaimed farm roads. In total Namibia has 41.800 km proclaimed roads of which 38.760 km are built (4.506 km bitumen surfaced roads; 25.197 km gravel roads; 226 km salt-gravel roads and 8.831 km earth roads). Namibia is connected with three bitumen surfaced roads to the Angolan border (trunk road 1/11 to Oshikango/St. Clara, trunk road 8/3 to Rundu and main road 92 to Ruacana). Zambia can be reached via partly surfaced and partly unpaved roads via Caprivi Strip and ferry services across the Zambezi. There are unpaved roads leading to Botswana and excellent surfaced roads leading to South Africa.

The port of Walvis Bay (under South African administration) can provide facilities required by Namibia's foreign trade. The water depth in the port restricts the size of the vessel that can use the port, but current demands do not justify larger vessels. The port of Lüderitz is operated by TransNamib Limited TNL. Facilities exist for handling of small coastal vessels. Safe anchorage exists for larger vessels, which can be handled by lighterage.

Namibia has 28 licensed aerodromes, under them two state airports (International Airport Windhoek and Airport Keetmanshoop), of which 16 aerodromes are surfaced as well as numerous other small airfields. Most of the aerospace falls in the Windhoek Flight Information Region.

The backbone of the telecoms network consists of a microwave link connecting Windhoek with South Africa, Tsumeb and Walvis Bay. The backbone is currently being extended to Oshakati by an optical fibre cable, scheduled for completion in 1990. All international telecom traffic is routed via South Africa.

11.2.5 CURRENT OPERATIONAL/FINANCIAL PERFORMANCE

11.2.5.1 NAMIBE PORT

The port traffic at Namibe has been stagnant at 0,15 millions tons for the past ten years, although it handled 0,22 millions tons in 1973. The traffic is mainly of imported commodities - food commodities, machinery and spare parts. The port normally works in one shift of 8 hours but, in case of need, an additional shift is operated. Only 12 gangs are available for working deep-sea vessels. About 55% of the cargo is directly discharged into railway wagons or trucks. There are frequent power failures and hence ship gears are also frequently used for loading/unloading. The productivity is around 200 tons per vessel day (tpvd) respectively for the bagged and mixed general cargo which is quite low. Container handling is of only 30 TEU per day due to only one old platform lift being available. Forty to fifty units of fork-lifts of 2-3 t capacity are out of order and cannot be repaired. The maintenance facilities can be considered to be totally inoperative.

11.2.5.2 CAMINHO DE FERRO DE MOÇAMEDES

The freight traffic on the CFM has been continuously falling. The ton-km have fallen from a peak of 3.359,0 million t-km in 1973 to 44,9 million t-km in 1987. However, passenger traffic on the railway has been increasing. It has increased from 46,2 million passenger-km in 1973 to 136,3 million passenger-km in 1987. The goods traffic has fallen mainly due to stoppage of iron ore. There has been a reduction in average travel distance for both the freight and passenger traffic, from 117 km in 1973 to 73 km in 1987 for passenger traffic and from 530 km in 1973 to 243 km in 1987 for freight traffic. The utilisation of passenger coaches has been 115% to 130% in the last three years. However, the actual demand for passenger traffic is double the capacity available. The goods traffic moves mainly from Namibe to Lubango. The return traffic is only 6% to 7% of total traffic handled.

During 1989, the CFM had an income, from freight traffic of 258.000 t and passenger traffic of 1,8 million passengers, of KZ 645 million with passenger traffic contributing KZ 300 million. With a total expenditure of KZ 319 million including KZ 64 million against depreciation, there was a net surplus of KZ 328 million. However, much of this revenue is in accounts receivable, with the debtors owing railways KZ 503 million.

11.2.5.3 THE ROAD: LUBANGO-NAMIBIA BORDER

For the current operational and financial performance of the road from Lubango to the Angola/Namibia border at St. Clara/Oshikango no data as for instance traffic loads and numbers are as yet available.

11.2.6 OBJECTIVES OF THE STUDY

The primary objective of the feasibility study is to provide a commercially viable rational plan, within the Angola environment, that will permit the Namibe Port Transport System to be rehabilitated and operated profitably on a sustained basis without reliance on Government resources in case of the port and the railway systems. For practical purposes, this objectives should be approached in a two-stage manner:

- Determining the minimum short-term measures - managerial, operational and rehabilitation investments - that have to be taken to enable the system to handle transit and national traffic for the coming five years with more or less the present facilities on the Namibe-Menongue and the Lubango-Angola/ Namibia border sections (further referred to as Rehabilitation Plan);

- Determining the feasibility and the optimum timing of investments in further upgrading and expansion of the system needed to efficiently cope with the projected traffic for the medium to long-term (further referred as Upgrading and Efficiency Improvement Program).

The study should take as points of reference the Special Assistance Program for Angola, 1988, prepared by the SATCC and the Study on Transport and Communications for Namibia, 1990, prepared by SIDA for the Ministry of Works, Transport and Communication of the Republic of Namibia.

The Rehabilitation Plan is expected to lead to a program of action that would be implementable in a short period and have an immediate effect on efficiency and capacity of the transport system. The action program should propose investments for repair, overhaul and repairing, rehabilitating and rebuilding of physical assets, purchase of new balancing equipment, organisational restructuring, review of existing and introduction of new systems and procedures, staff training and retraining, tariff restructuring, autonomy parameters, structure of operating organisation in support of the commercial autonomy, and any other measures that would improve productivity and ensure a demonstrable economic and financial viability of the plan.

The Upgrading and Efficiency Improvement Program is expected to indicate the techno-economically feasible projects. Optimised implementation of the projects would result in an increase in capacity and efficiency commensurate with the projected development of traffic in the medium to long-term.

11.2.7 SCOPE OF WORKS

The Consultant shall carry out all works necessary to reach the objectives listed above. The study is to be viewed in two inter-related stages - the first stage, the Rehabilitation Plan, has to concentrate on measures needed to rehabilitate the system and establish a commercially viable plan and the second stage, the Upgrading and Efficiency Improvement Program, has to focus on upgrading and efficiency improvements that would enable the system to carry the projected traffic, passengers and freight, including the proposed transit traffic from Namibia, as well as result in better utilisation of the road and railway infrastructure at a significantly higher level of productivity. The measures considered shall include specific actions and decision steps required by the Government of the People's Republic of Angola to ensure the normal commercial freedom to put the system on a profitability path without undue reliance on Government resources.

For every segment of the study, the consultants shall provide a coherent presentation of the analysis and the strategic fit into the sequence of action in the Rehabilitation Phase as well as in its sustainability and continuing value in the Upgrading and Efficiency Program. The overall feasibility study shall include:

- Technical feasibility analysis providing appreciation of technology being suggested, consideration of alternatives and impact of serious constraints/problems and all other connected issues with a view to identifying and establishing basic planning and designs of projects/cluster of projects necessary for rehabilitation for the different modes of traffic;

- Identification of the major components/sub assemblies, materials required for different projects;

- Cost estimates for different projects/cluster of projects both in terms of foreign exchange and local expenditure and in cost components of material, labour, overhead, transportation etc. and physical and price contingencies for various alternatives;

- Structure and legal status of the commercial entity that will be responsible for the assets and liability of the different modes of the system, its management and operation;

- Complete survey of the personnel involved in the areas under study with regard to their age, skill level and education and identification of the gap/surplus;

- Operations and management;

- Level of technical assistance required in project implementation and subsequent operations with a clear linkage to the manpower development program leading to eventual filling of all positions with Angolans without prejudice to professionalism and commercial efficiency;

- Phasing of investment plan and project plan preferably in the form of computerised network/bar chart;

- Tariff structure needed to ensure financial viability, the framework for adjustment and comparison with other modes of transport;

- Financial impact;

- Economic analysis.

In addition to the analysis of the individual projects, the consultants shall present a comprehensive assessment of the financial and economic impact together with the implementation plan, separately for the Rehabilitation Plan, the Upgrading and Efficiency Program and for both combined. The implementation plan for the Rehabilitation shall include preparation of all necessary tender documents.

The Scope of Work should take into account ongoing studies and rehabilitation proposals, if any, but not be limited to the following components of the Feasibility Study which will follow in the next sections of these Terms of Reference.

11.2.8 TRAFFIC FORECAST

Both, for the Rehabilitation Plan and the Upgrading and Efficiency Program, the point of departure must be an estimate of the traffic demand, i.e. the projection of the traffic flows, broken down into a forecast of national and transit traffic, for different scenarios, with clear justification of the assumptions being made.

11.2.8.1 NATIONAL TRAFFIC IN ANGOLA

The original purpose of the CFM was adequately served and, after the construction of the railway line, agricultural production, complementary agro-industrial development and industrial as well as additional mining activity was induced in the Southern Angolan provinces in its command area. Once peace is established and the GOA has initiated its economic restructuring program, it can be expected that agricultural production and related industrial activity will rise again. Moreover, depending on the ensuing political situation (and favourable investment climate), many so far untapped natural resources may be exploited. A prime condition for these developments will be a rehabilitated transport system that functions well. On the other hand, transport can only be operated efficiently and profitably at a certain minimum level of traffic induced by economic activity. It is, therefore, imperative that a detailed analysis be made of the potential developments in the hinterland of the system. In fact, a product-by-product analysis has to be carried out for the main agricultural and industrial products. Existing plans and programs have to be determined and the expected time phasing of implementation must be projected, with a distinction be made between certain, probable and possible developments.

It is clear that the pre-independence levels of economic activity in the Angolan hinterland of the system, except for iron ore, cannot only be regained, but the same can be considerably exceeded with an appropriate macro-economic enabling environment. It is also evident that it is difficult to accurately estimate the time needed to arrive at the expected levels. It is therefore suggested to design two different scenarios, based on optimistic and realistic views in relation to:

- The availability of funds and technical assistance needed to upgrade existing and/or abandoned production facilities and to train people;

- The responsiveness of the economy in the system's terrain of influence to newly emerging political and economic conditions and incentives.

The traffic forecasts shall be broken down into major commodities or major types of commodities (bulk, liquid bulk, break bulk, general cargo, containerisable cargo). It also should indicate origin and destination of the goods.

Indications of expected passenger traffic shall be given, taking into account realistic plans for rehabilitating competing modes.

11.2.8.2 TRANSIT TRAFFIC TO/FROM NAMIBIA

The consultant shall make a detailed assessment of the traffic from and to Namibia with consideration of the most appropriate routes, the type of transshipment facilities required and other relevant issues pertaining to this traffic. Different traffic and emergency scenarios as a factor of the availability of the South Africa occupied port of Walvis Bay must be investigated. See in this regard the Study on Transport and Communications for Namibia, 1990, prepared by SIDA for the Ministry of Works, Transport and Communication of the Republic of Namibia.

The consultant shall refine the forecast of transit traffic on information to be gathered from existing data available with the authority for Coordination of External Resources (CRE) for Southern Angola, the Ministry of Works, Transport and Communication of Namibia as well as shippers in Namibia and SATCC. The consultant should indicate, commodity-wise, the advantages in shifting from the existing Namibian import and export routes.

11.2.8.3 SERVICE TRAFFIC

The consultant shall also assess the service traffic for the railway's own requirements for different years based on the fact that the whole route would be operated with diesel traction.

11.2.9 DETAILS OF THE REHABILITATION PLAN

The Scope of Work for the Rehabilitation Plan shall include, but not be limited to:

11.2.9.1 NAMIBE PORT

11.2.9.1.1 TRAFFIC STUDY

- Studying the cargo traffic forecast established for the Caminho de Ferro de Moçamedes for the horizon years 1995, 2000 and 2005;

- Assessing the cargo classification and group by the handling mode;

- Studying the hinterland developments for assessing the possible volume of traffic that would emerge in and out of Namibe Port via coastal shipping and roads and establishing traffic forecasts for the horizon years;

- Integrating the traffic forecasts for the Namibe Port taking into account the rail mode, coastal mode, road mode and establishing the critical combinations of these which will help assessment of cargo handling requirements.

11.2.9.1.2 PORT OPERATIONS

- Studying all existing operating methods and procedures and reviewing all available data on current port performance;

- Establishing present port capability in relation to the type and class of cargo handled taking into account the volume of traffic, ship arrival/berthing service time patterns, productivity equipment availability etc.;

- Studying the managerial operational aspects of the port and recommending improvements that would contribute to bringing the port operations to optimum levels;

- Recommending measures to improve cargo routing, handling at transit sheds and crane and gang deployment to ships for sustaining operations at optimum level;

- Examining the effects of shipping/chartering pattern, increased parcel size, changing trend to containerisation and other factors that would influence the port operations in future and recommending measures for improvement in these areas for future traffic in the short term and long term phases;

- Quantifying the benefits of improved port performance and projected traffic;

- Examining the requirements of tugs, launches and navigational aids and recommending refurbishment/additions as the case may be.

11.2.9.1.3 EQUIPMENT

- Assessing the condition of all cargo handling equipment and recommending measures for upgradation including repairs required, refurbishments, total replacement by new equipment with scrapping plan for unserviceable equipment;

- Examining the maintenance facilities at the port and establishing the required upgradation area-wise so as to guarantee increased availability of equipment for sustaining optimal cargo handling operations;

- Quantifying all requirement contributive to enhancing the port operational capacity such as spare parts and inventory requirements, types of maintenance organisation required and estimating the costs incident upon these.

11.2.9.1.4 CIVIL ENGINEERING

- Assessment of state of repair of all permanent structures and the docks as to their state of repair and any restoration works needed;

- Study of the settlement of docks occurring in certain regions along quays with reference to the design criteria based on which the docks were constructed and recommending engineering measures that would restore the dock to the original state;

- Examining the wharf cranes tracks all along the wharf as to their fixtures and levels and recommend measures for restoration to acceptable tolerance levels;

- Examination of the fendering system for the wharves in relation to the type of vessels being berthed and recommending the number and type of fenders to be used and the fixtures;

- Examining all buildings for the state of repair and the quantifying measures for restoration. The apron and other paved areas shall be examined in relation to the wheel pressures of the mobile equipment and the measures for restoration shall be quantified area-wise;

- Examining the storm water drainage system in the port area and recommending measures for guaranteeing proper drainage in the operating areas.

11.2.9.1.5 COMPUTERISATION

- Identifying hardware/software requirements for project planning and monitoring;

- Recommending an outline of a computerised plan for operations, management, accounting, inventory control, personnel management, planning and management information system.

11.2.9.2 CAMINHO DE FERRO DE MOÇAMEDES

11.2.9.2.1 CIVIL ENGINEERING

- Identification of bridges/culverts to be repaired and the type and extend of repairs required;

- Identification of locations and lengths of rail with unacceptable level of wear necessitating change of rail lengths;

- Identification of wooden sleepers in bad condition requiring change with a plan for their replacement in phases to enable expanded train operations at the earliest, even at restricted speeds to begin with;

- Identification of the need for ballast renewal and assessment of the capacity of identified quarries to meet the ballast requirement;

- Assessment of the capacity of sleeper manufacturing plant to meet the phases replacement of sleepers identified to be in bad condition;

- Identification of other repairs to embankments, sidings and structures;

- Inventory of the track maintenance equipment, identification of equipment for repair, overhaul or eventual scrapping and also the requirement of new equipment;

- Defining the time frame and assessment of the costs and the level of technical assistance required for each of the above components.

11.2.9.2.2 MOTIVE POWER

- Identification of locomotives for overhaul, rebuilding, minor repairs and scrapping based on age and condition of locomotives; the scope of work for each type of repair; major components and assemblies required to be changed, repaired or reconditioned and the prioritisation and time frame and a plan, preferably on a computerised network basis like, for instance, PERT for every locomotive;

- Techno-economic analysis of the alternative of extensive rebuilding of locomotives vis-a-vis purchase of new locomotives;

- Defining the level of technical assistance, along with the modality and scope of work;

- Defining requirement of space, machine tools and other physical assets, measuring instruments, jigs and fixtures etc. for undertaking overhaul/rebuilding of locomotives, if required, and preparing plans for meeting this requirement, including by repair/overhaul of existing equipment;

- Identifying plans/schedules for overhaul of major assemblies, exploring possibilities of creating facilities for meeting the requirements of all the three railways in Angola.

11.2.9.2.3 ROLLING STOCK: WAGONS

- Undertaking a survey of wagons owned by CFM and identifying wagons for light, medium and heavy repairs, for change of bogies or wagon body and scrapping;

- Preparing a time frame for introduction of 20-tons axle load wagons for non-iron ore traffic, also recommending alternative uses of the special purpose iron ore wagons;

- Preparing a plan for undertaking the repairs, including PERT network or bar chart as appropriate, and indicating prioritisation and rate of repairs;

- Identifying physical resources/facilities/space required for undertaking the planned repairs including overhaul of existing facilities;

- Defining the level of technical assistance required and its modality and scope of work;

- Identifying components, sub-assemblies and materials required for all type of repairs;

- Examining the suitability of converting iron ore wagons into ballast wagons and if suitable, planning for conversion of a limited number of wagons, identifying requirement of technical assistance and defining the time frame.

11.2.9.2.4 ROLLING STOCK: COACHES

- Estimating future suburban and long distance passenger traffic;

- Identifying requirement of passenger coaches for passenger traffic;

- Surveying the existing coaches and identifying coaches for light, medium or heavy repair and for scrapping;

- Identifying coaches for conversing for suburban traffic;

- Identifying gaps in the availability and requirement for all types of coaches;

- Financial projections of passenger traffic, identifying costs, revenues and surplus/deficit.

11.2.9.2.5 SIGNALLING AND COMMUNICATION

- Establishing present status of communication system between central control, stations and drivers;

- Recommending cost effective mode of communication during the rehabilitation phase;

- Identifying equipment required for train control and operations for the rehabilitation phase;

- Identifying the extent of technical assistance required.

11.2.9.2.6 OPERATIONS MANAGEMENT

- Preparing optimal wagon loadability charts of different wagon types and materials;

- Identifying appropriate wagon designs for different commodities;

- Establishing the requirement of wagons of different types for different traffic levels based on optimal wagon loadability;

- Preparing yard operating instructions, locomotive links, designing a crew management system, identifying crew rest points and crew reporting systems;

- Examining fuelling points plus recommending additions/ modifications;

- Examining loading/unloading facilities and identifying possibilities of block rake operation.

11.2.9.2.7 MAINTENANCE INFRASTRUCTURE

- Assessing the facilities required for routine maintenance at Namibe, Lubango and Matala;

- Taking an inventory of the existing facilities and identifying the gaps;

- Reviewing the existing maintenance information system, the records kept in different maintenance centres and inspection procedures and designing changes as appropriate.

11.2.9.2.8 ELECTRICAL SYSTEM

- Identifying the extent of upgrading required for the electrical distribution systems at three centres: Namibe, Lubango and Matala.

11.2.9.2.9 MANPOWER

- Conducting a thorough staff survey at all levels and categorising the same according to their ages, education, experience and skill;

- Identifying staff requirement for operations at the estimated level of traffic according to skill/education/experience and other attributes;

- Estimating gaps/surplus in requirement and availability of staff at different levels and gradations;

- Preparing an action plan for new recruitment/training and retraining of staff.

11.2.9.2.10 COMPUTERISATION

- Identifying hardware/software requirement for project planning and monitoring;

- Identifying the system for information flow and sharing of computer information by different units in the system;

- Recommending an outline of the computerisation plan for operations management, financial and management accounting, inventory control, personnel management, planning and management information system.

11.2.9.2.11 SYSTEMS

- Recommending an appropriate system along with outline for the following systems:

  * Inventory and material management;

  * Maintenance management;

  * Performance-related remuneration for drivers and workshop
    staff;

  * Traffic planning and marketing;

  * Costing, with clear identification of controllable and
     uncontrollable costs, variable and fixed costs and the basis
     of absorption of overheads by different cost units and cost
     centres.

11.2.9.2.12 SYSTEM EXTENSION

- Examining the techno-economic feasibility of extending the operations to Menongue and if feasible undertaking the necessary studies in civil engineering, motive power, rolling stock, signalling and communications, operations management, maintenance infrastructure, electrical systems, manpower and computerisation and extension of the systems of material management, maintenance management, costing, performance-related remuneration and traffic planning and marketing with modifications if necessary.

11.2.9.2.13 USE OF CONCRETE SLEEPERS

- Establishing the techno-economic feasibility of a change-over from wooden to concrete sleepers;

- In the event of the project being viable, identifying the optimal range of change-over, the capacity of the concrete sleeper plant and other changes and feasibilities required;

- Identifying the conditions for switch-over to concrete sleepers in future in case the project is not currently viable.

11.2.9.2.14 MOTIVE POWER AND ROLLING STOCK REQUIREMENT

- Establishing the performance norms likely to be achieved in the project period considering the investments, operations optimisation and management orientation towards commercial viability, particularly engine-km/engine-day in use, wagons-km/ wagon-day, locomotive availability, wagon availability and gross to net ratio;

- Establishing the requirement of locomotives and rolling stock for different years considering traffic levels and performance norms expected to be achieved;

- Establishing a plan for bridging the gap between requirement and availability considering improvement of performance norms as an alternative;

- For wagons: the requirements should be established separately for different types of wagons.

11.2.9.2.15 LONG DISTANCE PASSENGER TRAFFIC

- Establishing passenger traffic forecast;

- Establishing an optimal link of trains to meet the passenger traffic requirement;

- Establishing the techno-economic feasibility of introducing the passenger services;

- Recommending passenger tariffs for break-even levels.

11.2.9.2.16 MAINTENANCE WORKSHOP

- Establishing the techno-economic feasibility of setting facilities for overhauling of assemblies like wheels traction motors, generators etc.;

- Establishing the norms of output based on the assumption of full utilisation of capacity in the foundry, machine shop, forge shop and other production centres and in case of surplus capacity, identifying production jobs that can be accepted from the other railway systems and other enterprises in Angola.

11.2.9.2.17 TRAIN CONTROL PLAN

- Recommending the most appropriate and cost effective train control plan for the system keeping in view the traffic level, maintenance requirement, staff requirement and other relevant factors.

11.2.9.2.18 ALTERNATIVE USE OF IRON ORE WAGONS

- Establishing the potential requirement of iron ore wagons for the expected resumption of traffic;

- Establishing the most appropriate policy for alternative use of these wagons such as conversion into ballast wagons for CFM, CFL or CFB.

11.2.9.2.19 ACCIDENT PREVENTION AND MANAGEMENT

- Recommending an appropriate system along with techno-economic feasibility for the following:

* Accident relief train operation;

* Automatic barriers at level crossings;

* Education program for accident prevention.

11.2.9.2.20 PERIPHERAL ACTIVITIES AND FACILITIES AND LINKAGES WITH
                     THE PORT

- Examining the peripheral activities and the related facilities of the railway such as catering for passengers, staff facilities as well as facilities and equipment for freight, storage and handling delivery and collection services;

- Determining the requirement for container handling (dry ports) if the traffic forecast indicates growing volumes of containerised cargo;

- Recommending improvements necessary to attract additional cargo;

- Reviewing the existing plans within the Ministry of Transport and Communications and the Ministry of Construction of the People's Republic of Angola for feeder roads and recommending supplements or changes in these plans if required.

11.2.9.3 THE ROAD: LUBANGO-NAMIBIA BORDER

11.2.9.3.1 CIVIL ENGINEERING

Four different types of rehabilitation levels for the road between Lubango and the Angola/Namibia border at St. Clara/Oshikango were identified during in-situ investigations consisting of both visual observations and D.C.P. tests which can be made available if required. Sections with no proper natural road building materials for selected layers (laterites and calcretes, for instance) were encountered on the section from the Namibian border to Xangongo and Cahama. Stabilisation of subbase and basecourse with portland cement could be required. Salt problems were encountered in the Mongwa region. The consultant is advised to make use of the vast experiences and researches of the Ministry of Works, Transport and Communication of the Republic of Namibia in these regards, especially the use of sub-standard road building materials, cement and lime stabilisations and the compaction of selected layers with sea water. The road sections have to be identified according to types of corrections such as for instance:

Type 1: Fill, Subbase, Basecourse: O.K.
              Problems: Potholing and broken edges of surfacing.
              Correcting Action: Premix-repair of potholes and road edging.

Type 2: Fill, Subbase: O.K.
              Problems: Premix cannot correct the problem anymore; Basecourse is
              affected.
              Correcting Action: New basecourse, chip seal and double slurryseal.

Type 3: Fill: O.K.
              Problems: Subbase, basecourse and shoulders need rehabilitation.
              Correcting Action: New subbase, basecourse, chip seal and double slurry
              seal.

Type 4: Gradeline of road is too low: stormwater problems and overtopping is
              occurring.
              Correcting Action: Lift gradeline.

These types are only suggestions and the Consultant will be requested to finalise the necessary actions in consultation with and using the experience of the Road Authorities of the two concerned Ministries of Angola and Namibia.

Further actions are the following:

- Investigation of all structural components of the destroyed Kunene Bridge at Xangongo and the types and extend of re-building measures for various alternative levels of permanency and design types;

- Identification of bridges/culverts to be repaired and the type and extend of repairs required;

- Identification of locations and lengths of road sections with an unacceptable level of wear necessitating different types of rehabilitation according to types 1 to 4: See above;

- Identification of other repairs to embankments, and other road-related structures;

- Investigate different alternatives for horizontal and vertical standards, especially with different levels of crossections;

- Defining the time frame and assessment of the costs and the level of technical assistance required for each of the above components.

11.2.10 TARIFFS FOR THE NAMIBE CORRIDOR SYSTEM

The consultant shall recommend an appropriate tariff structure, separately for the national, transit and service traffic which shall be in accordance with the basic objective of making the transport system an economically sound enterprise. In doing so, care should be taken not to exploit the monopoly position of the system and transfer the cost of inefficiency to the consumer.

To arrive at the appropriate tariff structure, the consultant shall establish the average total cost of system operation comprising fixed and short-run and long-run variable cost of movement of traffic. The short-run cost of movement will be based on the same period of analysis as for the assessment of current capacity. The direct cost of movement should be estimated based on the asset requirements under different stated assumptions as to operating efficiency and the traffic levels and taking into account investments under implementation or planned investments.

The average unit tariffs for all types of traffic - transit, national and service for freight and suburban and long-distance passenger traffic - and for different commodities, wagon types, road vehicles etc. must be established. All the different types of commodities and transport types should be compared with the average total cost of operation for these services arrived at by a rational procedure of fixed cost allocation. Based on this comparison, a tariff plan of all types of traffic should be indicated consistent with full cost recovery and reasonable return on equity capital. This means not only to establish tariff structures for the usage of the ports and the railway CFM but also the establishment of a road user taxation system based on above principles, especially for the transit traffic on the road from Lubango to the Namibian border. For the transit road user charges the consultant shall also consider the cost of operation and level of tariff payable on alternative routes.

While analysing the costs, the consultant shall compare the level of cash generated through depreciation, surplus from operations and contingency provisions with the amount required for repayment of debt obligations every year. In case of shortfall the consultant shall recommend alternative tariff policy or capital restructuring.

The consultant shall recommend the basis for tariff adjustment linked to average levels of inflation rates.

11.2.11 MEMORANDUM OF UNDERSTANDING: PORTS AND CFM

The consultant shall identify norms of operational and financial performance to be achieved by both ports (Namibe and Sacomar) and the CFM in future years, the norms reflecting progressive improvement through the impact of operations optimisation, rehabilitation of existing assets, acquisition of new assets, human resource development, organisation re-design and other improvement measures. The norms will form an integral part of the memorandum of understanding as reflecting the obligations of the management of the ports and the CFM.

The consultant shall also state all assumptions behind the norms and in particular shall identify:

- The tariff adjustments required to be undertaken for full cost recovery;

- The basis of tariff adjustment to neutralise the effect of inflation;

- The amount of foreign exchange required for routine maintenance;

- The staff strength, fixed as well as traffic specific, along with surplusses and shortages and measures to rectify the same;

- The traffic streams by commodities, passenger types, sections, wagon and road vehicle types etc. where tariffs have, for socio-economic and socio-political considerations been fixed lower than the total unit costs;

- Other mandatory expenses like health care, education, manpower development, housing, food etc. being incurred by the system but whose normal responsibility should lie with the Government or the employees;

- Investment needs for rehabilitation/new assets.

The consultant shall identify all areas in reference to above where government approval is mandatory along with the legal/ procedural/ policy hurdles to satisfactory and timely approval and in discussion with the Government. He shall recommend a framework, to be a part of the Memorandum of Understanding, for smooth operation of the system. Based on above, the consultant shall prepare a Draft Memorandum of Understanding laying down the separate obligations of the enterprise and the Government, the time frame of approval, the procedures, the remedies and all other related matters to enable the enterprise to achieve its objectives.

11.2.12 ENVIRONMENTAL IMPACT

The consultant shall identify the impact, if any, of the measures recommended for the rehabilitation/upgrading of the transport system on the environment. Specifically, the consultant must comment on:

- The way the scrap and waste material is disposed off;

- Adequacy of measures incorporated in the rehabilitation program for dealing with any contaminated run-off and disposal of liquid/solid waste, particularly oil wastes;

- Type of weed killers, water softening and other chemicals used in the system vis-a-vis the recommendation of safer alternative materials;

- Adequacy of the design of quayside aprons and storage areas to enable stormwater run-off to be collected and passed through a separator prior to discharge;

- Contingencies for handling fuel spills in the case of facilities handling bulk petroleum.

11.2.13 DEFINITION OF SUB-PROJECTS

After having carried out the techno-economic study, the consultant shall formulate sub-projects or clusters of sub-projects which can be carried out independently from each other, though the logical sequence of implementation obviously should be taken into account considering minimisation of investment costs required to rehabilitate the level to a level of reliable operating integrity in the rehabilitation phase, and efficiency or economy of operation. This shall be done in order to make it possible to not only appraise the sub-projects or clusters for their financial and economic viability, but also to determine the compatible timing of implementation by means of an incremental analysis.

11.2.14 FINANCIAL AND ECONOMIC APPRAISAL

Alternative financing arrangements shall be explored, including private and public sources, donor assistance and loans from development financing institutions.

The consultant shall appraise all the sub-projects both individually and in total.

Since prices in Angola are basically distorted, costs and benefits shall be expressed in economic terms. For the economic analysis border prices shall be used for all traded goods and a standard conversion factor shall be applied to national goods. Unskilled labour will be shadow-priced as well. Conversion factors and opportunity cost of capital will be determined in cooperation with the Angolan Ministry of Planning, the Namibian National Planning Commission, SATCC and the World Bank.

The appraisal methodology to be applied is that of comparing incremental costs and benefits in a situation with and without the investment project.

Based on cash-flow analysis the consultant shall present the usual evaluation criteria:

- Financial and economic internal rates of return;

- Net present values;

- Benefit/cost ratio.

Moreover the consultant shall carry out sensitivity analyses with regard to crucial variables.

11.2.15 TIME SCHEDULE AND REPORTING REQUIREMENTS

Based on the project criteria for the SATCC projects, approved by the Committee of Ministers of the SATCC, the Consultant shall make recommendations for transport and communications projects for the Namibe Port Transport System for inclusion into the SATCC programme.

11.2.15.1 PROJECT STAFFING

The Consultant will be expected to utilise local expertise, especially local consulting engineers in Angola and Namibia, where possible and appropriate. This is to ensure that regional perspectives and imperatives are embodied in the Feasibility Report and that any follow-on work directly related to the results of this Study can confidently be carried out by local personnel and local consultants.

11.2.15.2 TIMING AND REPORTING

11.2.15.2.1 INCEPTION REPORT

Six weeks after the award of the contract, the Study is to be started up. Two months after the start-up date the Consultant shall submit an Inception Report (12 copies) outlining his initial findings and proposed future work plan. The report shall identify all site investigations that are proposed and shall contain the results of the traffic forecasts.

11.2.15.2.2 MID-TERM REPORT

A mid-term report, containing the preliminary results of the technical assessment shall be submitted five months after starting date. Comments on the mid-term report will be given to the consultant within sixty days.

11.2.15.2.3 DRAFT FINAL REPORT

The Consultant shall submit the following Draft Final Report at the end of the seventh month of studies. Discussions on the DFR shall take 45 days later.

11.2.15.2.4 FINAL REPORT

The Consultant shall modify the Draft Report to take account of comments made by the Client. The Final Report shall be submitted in Portuguese and English, both in fifty (50) copies within one month of the receipt of the comments on the Draft Final Report.

11.3 DATA AND REPORTS TO BE PROVIDED TO CONSULTANTS

The following data and reports, if available, shall be made available to the consultant at the start of the study:

11.3.1 DATA: NAMIBE AND SACOMAR PORTS

(i) Operational - Departmental records on all operational aspects such as ship handling cargo transfer, storage and dispatch; Departmental records on maintenance of equipment, spare parts, inventory, stock on order, repairing time/equipment, workshop details; Designs/drawings of docks/permanent structures.

(ii) Financial - Income/expenditure statements; Tariff structure for each commodity; Salary levels of staff category-wise.

(iii) Organisational - Port organisation & structure and staff deployment; Administrative procedures and documentation.

11.3.2 DATA: CAMINHO DE FERRO DE MOÇAMEDES

(i) Track Profiles - Details of gradients, curves, rail sizes and ages, sleeper types and ages, distances;

(ii) Bridges - Number, types, drawings, repair history;

(iii) Track Maintenance Equipment - Types, numbers, years of purchase, maintenance history;

(iv) Locomotives - Numbers, types, ages, maintenance history, performance levels in recent past;

(v) Wagons - Idem;

(vi) Coaches - Idem;

(vii) Staff - Numbers and distribution according to age, skill, category, education and experience and department in which currently employed;

(viii) Traffic in Last Three Years - Commodities with tonnages, origins and destinations, revenue earned, users of rail facility;

(ix) Workshops - List of machines and equipment with ages, manufacturers' names, present condition; Layout (latest) showing covered space, rails and roads, offices, cranes; Last three years performance output and expenditure; Ancillary and support facilities;

(x) Financial Data - Balance sheets for last three years; Profit and loss statements; Cash flows; Unaudited accounts of balance sheets not ready; Book value of assets and depreciation policy; Pending loans; Interests due; Accumulated interest and loan repayment installments.

11.3.3 DATA: ROAD: LUBANGO - ANGOLA/NAMIBIA BORDER

(i) Road Profiles - Details of horizontal and vertical alignments and different cross-sections for all different road sections;

(ii) Bridges - Number, types, drawings, repair history;

(iii) Road Maintenance Equipment - Types, numbers, years of purchase, maintenance history;

(iv) Soils Data - Borrow pit data for different road layers as well as construction specifications and as-built-data;

(v) Traffic in Last Three Years - Traffic counts for last three years according to different axle load classes (estimates if no reliable data are available);

(vi) Workshops - List of road maintenance machines and equipment with ages, manufacturers' names, present condition; Layout (latest) showing covered space, offices, cranes; Last three years performance output and expenditure; Ancillary and support facilities.

11.3.4 REPORTS

- A Report on Special Assistance Program for Angola, SATCC, December 1988;

- Study on Transport and Communications for Namibia, SIDA, March 1990;

- Telecommunications Ten-Year Development Plan, SATCC, HN Engineering Inc., March 1987;

- Port Staff Training Programme Angola, SATCC Norconsult, Oslo, September 1986;

- Study of Railway Rolling Stock, Kampsax-Swederail, 1984;

- Angola: An Introductory Review, Vol I and II (ANG/87/001), UNDP/ World Bank, June 1989;

- Report on Economic Development of Angola, VEB Consult Berlin, 1987;

- Guidelines for the Formulation of Maritime Transport Policy in Namibia, Ministry of Works, Transport and Communication, Republic of Namibia, July 1990;

- Any ongoing or completed studies.

The relevant authorities shall assist the Consultant with the arrangement of visas, accommodation and transport for the purpose of this Study.

ENDNOTES

[39] See: Project ED-CE-1: "Roads in Angola" in earlier sections of this Memorandum where US $ 15,0 million were estimated for emergency repairs at the road and new Bailey bridges and/or ferry services for the Kunene crossing at Xangongo. The total rehabilitation costs for the Lubango-St. Clara/Oshikango road can be as high as US $ 60 million and more.

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