United Nations Capital Development Fund

Project Evaluation Summaries
Prepared by the Policy, Planning and Evaluation Unit (PPEU)

Botswana

I. Basic Project Data

Project Number:	BOT/87/C02
Project Title:	Construction of Secondary Roads
UN Cooperating Agency:	OPS
Govt. Executing Agency:	Roads Dept of the Ministry of Public Works, Transport and Communication
Sector:	Transport (060)
Sub-Sector:	Land Transport (0630)
UNCDF Budget:	US$ 5,100,000
BADEA Budget:	6,100,000
Total Budget:	18,740,000
Actual Total Expenditures at Evaluation:	20,700,000
Date Project Approved:	July 1988
Date Project Began:	Dec 1989
Date Project Evaluated:	Jan 1993
Type of Evaluation:	Final

II. Background

Botswana is a landlocked country whose international road and rail access is dominated by South Africa, making transportation and trade costly and vulnerable to external factors. The country is increasingly looking towards improving links with its northern neighbors, particularly Zambia and Zimbabwe, for whom Botswana already provides an important transit function for goods which flow along the north-south supply route. Communication infrastructure and transport services have been concentrated in the populated eastern corridor from Gaborone to Francistown. Primary attention was directed towards upgrading the north-south road, improving access to nearby major villages and providing links to mining towns.

During the 1970s Botswana emphasized the need for an improved communications network with its northern neighbors. Support was given also to regional and rural development through an extended secondary roads network. This has meant that investment in roads has occurred also in areas where quantifiable economic benefits do not necessarily justify costs of construction, but where significant social benefits accrue to rural dwellers. A series of detailed feeder roads studies led to the selection of five schemes recommended for immediate implementation, among which was the current project. After the preparation of designs and tender documents, the Government presented three of the schemes to international financing institutions as a package; BADEA and UNCDF expressed interest in co-financing the project.

III. The Project

The project aimed to construct 103.6 km of secondary roads distributed as follows: 26.6 km from Pitsane to Metlojwane 40.3 from Mochudi to Sikwane and 36.7 km from Maun to Shorobe, with a projected completion date of December 1990. Direct and indirect benefits ware to accrue generally to the Botswana economy through improved transport services and promotion of tourism, and particularly to the 31,700 inhabitants of the target area through reduced vehicle operating costs, increased agricultural output, and improved access to health care and education. The roads ware expected to generate an economic rate of return greater than 10 percent per annum. The total project cost as estimated in 1988 was $18.74 million of which UNCDF agreed to contribute $5.10 million, divided between an interest-free loan of $5 million and a grant of $100,000 to cover the costs of UNCDF project support.

IV. Purpose of the Evaluation

The Mission was to assess project performance, results achieved and impact, to drew lessons learned, and to make recommendations on follow-up actions to improve the project's effectiveness.

V. Findings of the Evaluation Mission

A. Assessment of results achieved

The Mission found that the project had met its objectives of constructing 103.6 km of roads as planned. All roads appeared to have been well constructed; however, all three sites experienced delays of 4-12 months. Construction on the Maun-Shorobe road was delayed by 5 months, initially bemuse of Mow contractor mobilization, and later because of postponement and eventual cancellation by the Water Affairs Department of the joint barrage and crossing over the Thamalakane River. A new crossing was eventually constructed by the road contractor under a major variation order. The most serious delays, totalling 12 months, occurred on the Mochudi-Sikwane road. These were due to both design problem and poor contractor mobilization and performance.

The most satisfactory contractor and consultant performance was recorded on the Pitsene-Motiojwana road, where a four-month delay was caused largely by the need to direct and redesign a waterlogged section near Medojwang. In part because of these delays, actual costs of supervision and construction were about 30% over the budgeted costs. Total project costs ware US$ 20.7 million, or 11 % over the amount estimated at project formulation.

Contractor performance on the three roads varied from good to barely satisfactory. The Roads Department questioned the quality of the consulting engineers of this project. The Mission noted that their variable performance may be attributable to selection of insufficiently experienced engineers as a cost-saving measure. In particular, serious reservations ware expressed about the consultant and contractor on the Mochudi-Sikwane road. The Mission found it noteworthy that the two contractors having mobilization difficulties were foreign-based.

At the time of the evaluation, the roads had ban well maintained by the contractors for one year. The Roads Department appeared to have the technical and financial capacity to maintain roads in good condition, including regular resealing. A major road maintenance study had just been completed and implementation modalities were being considered.

Project impact in term of agricultural output was difficult to measure at this early stage, especially in view of drought conditions in 1992 and early 1993. However, traffic levels appear to have risen to levels near those predicted by the feasibility studies. Commercial activity in Maun appeared to have increased substantially, with direct marketing of horticultural products from the Sikwane area to Gaborone. On the Maun-Shorobe road, tourist access to the Moremi Game Reserve in the Okavango Delta had been improved. The Game Department welcomed surface-road access to the edge of their parks and reserves but were concerned that improved through-routes should not penetrate within then wildlife areas.

Improvements to the Mochudi-Sikwane road had facilitated access to the minor border post at Sikwane. Planned road improvements on the South African side could allow substantially increased flows of international traffic.

B. Assessment of project design

The Mission found the project was well designed except for significant problems in detailed design of the Mochudi-Sikwane road. Problems caused by the delay and eventual cancellation of the barrage project on the Maun-Shorobe road could not reasonably have been foreseen since they were the concern of another ministry.

VI. Recommendations

Since the same contractor and consultant that had delivered such a questionable performance on the Mochudi-Sikwane road had also been engaged to construct the Sikwane-Malolwane extension with government financing, the Mission suggested that the Roads Department carefully monitor the progress of this new project.

Moreover, in light of the highly competitive environment among consultants and engineers, the Mission advised review of procedures to ensure that minimal technical requirements are met in the pre-qualification of contractors and in the evaluation of consultants' technical proposals.

VII. Policy Implications and Lessons Learned

A number of the projects shortcomings were due to problem with contractor mobilization and performance. Therefore, key lessons learned concern criteria for contractor selection. First, the fact that the two contractors having mobilization difficulties were both foreign based suggests that local contractors should be chosen whenever possible. Second, while cost was and should continue to be an important consideration in contractor selection, it should not supersede concerns about quality and level of performance.

VIII. Evaluation Team

The evaluation team consisted of two consultants provided through Burrow Binnie Ltd. of Mbabane, Swaziland: Mr. A. MacDonald, Mission Leader and Transport Economist and Mr. D. Wood, Engineer.