MINISTRY OF INFRASTRUCTURE DEVELOPMENT

1. MINISTRY OF INFRASTRUCTURE DEVELOPMENT CWG MEETING ON MKIUKUTA REEVIEW STUDIES 22 – 26 February 2010 REVIEW OF TRANSPORT SECTOR IN RELATION TO MKUKUTA Presentation by: SMAK Kaombwe, Consultant, SDL On behalf of: Task Team

2. INTRODUCTION Continued MKUKUTA(2005/6 – 2009/10): Growth strategy with focus on poverty reduction Cluster 1: Growth and Reduction of Income Poverty (with specific transport targets) Cluster 2: Improvement of Quality of Life and Social Well –Being (with specific transport targets) Cluster 3: Governance and Accountability

3. INTRODUCTION Continued Transport Programmes Inputting into MKUKUTA: • TSIP: Overall transport sector development (Phase 1: 2007/8 – 20011/12… $6.2 bill with 40% committed in 2008) • LGTP: Address isolation and lack of access to economic opportunities and social services for poor (2007/8 – 20011/12.. Shs 186 bill road dev works & capacity building ..70% financing; maintenance 26% shortfall in 2009/10) • VTTP: Provide access and mobility in rural communities 1994 .. Commenced in 7 pilot districts Roll out …2007/8 in 27 districts…55 in 2009/10 and long term all districts …. Also has limited funds

4. MKUKUTA REVIEW Overall objective: • Review performance of MKUKUTA 1 (2005/6 – 2009/10) and Identify inputs for next MKUKUTA Specific objectives for review of transport sector input: • Identify linkage - infrastructure & poverty reduction; • Assess adequacy of MKUKUTA 1 targets wrt role of transport infrastructure; • Assess achievement of the targets; and • Propose new transport infrastructure policies and targets for next MKUKUTA

5. MKUKUTA REVIEWTRANSPORT SECTOR Transport Sector Review Team from: • MoID – Leader; • MoFEA; • Planning Commission; • PMO - RALG; • BOT; • CTI; and • SDL Consultants - facilitator

6. MKUKUTA REVIEWTRANSPORT SECTOR • Linkage - infrastructure with other sectors & with poverty reduction • Assess adequacy of MKUKUTA 1 targets wrt role of transport infrastructure; • Assess achievement of the targets; and • Propose new transport infrastructure policies and targets for next MKUKUTA

7. For the poor transport provides:- Access to inputs, implements, know how & other services to boost production;- Access to local and international markets for trade;- Access to social services Transport Function

8. Pro-poor Transport Logistics Chain

9. Transport Links withOther Sectors and Poverty (1) • Unlock economic potential: access to areas with high agriculture, minerals, tourism potential, etc • Access to markets: local, national and international export/import markets. For the poor to improve conditions, they need to sell and earn income. • Industrial development:Reliable and economical transport key to attracting investment in value addition and other industries.

10. Transport Links with Other Sectors and Poverty (2) • Access to basic social services: education, health, extension services & information are necessities to eradicate poverty - ref MDG agenda. Also enables retention of public servants & maintain supplies. • Social interaction: For social harmony to ensure security, regional integration & expand markets. Helps build tolerance among people. • Jobs creation: In construction, maintenance & operation of transport infrastructure & services; also enables access to far away jobs. • Income inequality:Minimised by adequate & equitably distributed transport infrastructure

11. MKUKUTA REVIEWTRANSPORT SECTOR • Linkage - infrastructure with other sectors & with poverty reduction • Adequacy of MKUKUTA 1 targets wrt role of transport infrastructure; • Assess achievement of the targets; and • Propose new transport infrastructure policies and targets for next MKUKUTA

12. Adequacy of MKUKUTA 1 Summary based on specifics in the report: • Some strategies too general and inadequate to tackle key weak areas: Leads to general reporting on implementation. • No prioritisation to ensure maximum impact on poverty reduction (eg based on population & to address infrastructure & services in rural areas, identified weakest link; • Inadequate direction on how reporting should be organized, and the need to draw out measurable, in particular quantifiable, indicators.

13. Adequacy of MKUKUTA 1 General • Did not address intermodal and efficient modal interface and complementarities to optimise transport cost (eg rail vs road & port – rail/road interface) • Specialized transport for perishables (eg flowers, fresh meat, vegetables and fish are high paying agricultural products), as well as for tourism, not addressed adequately.

14. MKUKUTA REVIEWTRANSPORT SECTOR • Linkage - infrastructure with other sectors & with poverty reduction • Adequacy of MKUKUTA 1 targets wrt role of transport infrastructure; • Achievement of the targets • Propose new transport infrastructure policies and targets for next MKUKUTA

15. Achievement of Transport Targets (and strategies) • Undertaking infrastructure improvements:Paved roads increased by 1,213 km by 2008, from 5200 km in 2004. Maintenance improved. Target not quantified. Other modes reported also generally. • Repair 15,000 km of rural roads by the year 2010: 30,673 kms of district, feeder and collector roads maintained in 2008/9, beyond target.

16. Achievement of Transport Targets (and strategies) • Modernizing and expansion of trunk roads, ports, airports and by providing adequate levels of physical infrastructure needed to cope with poverty reduction: Performance report too general and limited in scope. Modernization achieved not clearly elaborated and quantified.

17. Achievement of Transport Targets (and strategies) • Invest in infrastructure to further improve accessibility to markets, to improve reliability of carrying units and competition among private carriers with a view to lowering costs and reliability/convenience. Various upgrading, rehabilitation, and maintenance programs under implementation in trunk road & regional roads. • Improve passable good/fair condition of rural roads to 75% in year 2010 up from 50% in year 2004. 58.5 % good/fair condition in 2008/9 – target not achieved. Major problem since this constitutes weakest link in logistics chain, on which majority poor depend.

18. MKUKUTA REVIEWTRANSPORT SECTOR • Linkage - infrastructure with other sectors & with poverty reduction • Assess adequacy of MKUKUTA 1 targets wrt role of transport infrastructure; • Assess achievement of the targets; and • Propose new transport infrastructure policies and targets for next MKUKUTA

19. Proposals for MKUKUTA 2Transport Details in Table 7.1 based on table 5.1. Priorities for purely public financing are: Priority 1: • Rural and community roads and transport & urban transport • Transit (removal of regulatory and process impediments) • Cross cutting issues (safety, capacity building, HIV/AIDS mitigation, Environment)

20. Proposals for MKUKUTA 2Transport Details in Table 7.1 based on table 5.1. Priorities for purely public financing are: Priority 2: • Trunk and regional roads Priority 3: • Railway (due to ability to attract PPP)

21. Proposals for MKUKUTA 2Transport Details in Table 7.1 based on table 5.1. Priorities for purely public financing are: Priority 4 • Ports and Aviation – mostly commercial or self-sustaining and ability to attract PPP) Proposed specific indicators and targets for the priorities are detailed in Table 7.1

22. Financing Possible sources (ref Table 6.1) • Public – Government (various methods) and Development Partners • Public – Private Partnership • Industry (access spurs and corporate responsibility) • Commercial (self-sustainability & commercial loans) • Savings from better practices and controls of leakages and weaknesses identified by auditors

23. ASANTE SANA