Rural Economic Transformation Project Second Additional Financing

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The proposed AF will mainly finance the scaling-up of road rehabilitation under the parent project. This road corridor to be rehabilitated has been prioritized for its contribution to market access and overall food security. Key revisions to the parent project will include: (i) changes in project costs and modification of activities; and (ii) changes in the results framework. The AF will deploy additional credits in the amount of US$76 million from IDA, an additional grant in the amount of US$9.0 million from the Liberia Reconstruction Trust Fund, and a counterpart funding of US$8 million to finance a specific 10 km road rehabilitation.By upgrading from unpaved to paved road, this proposed AF is transformative in adapting Liberia’s road network to increased climate change risk which is a threat to connectivity and food security across the country. With the paved surface and other resilient designs, the proposed road is expected to remain passable throughout the year and withstand potential heavy rainfall and flooding.The 75 km road from Toe-Town to Zwedru and the 10 km road from Toe-Town to the Ivory Coast border under this proposed additional financing will complement the achievement and the on-going activities financed by the WB in Liberia: (i) 248 km road corridor improvement from Monrovia to Ganta and the Guinea border (LIBRAMP – P125574); (ii) 100 km Southeastern road corridor improvement from Ganta to Saglepie and Tappita (SECRAMP – P149279); and (iii) 40 km Southeastern road corridor improvement from Tappita to Toe-Town (parent project). This will also complement the African Development Bank funded 166 km road improvement between Kelipo, Fishtown, Harper, and Havala on the Southeastern corridor.Component 3 (Agri-Marketing and Road Infrastructure Investments) costs will increase by US$93 million (US$76 million from IDA, US$9 million from the LRTF, and US$8 million from the Government of Liberia) to scale-up investments in infrastructure. The AF scale-up activities will focus mainly on financing: (i) the construction of an additional 85 km road of which 75 km is on the Southeastern corridor; (ii) climate-resilient spot improvements to feeder roads leading to the corridor; (iii) the related monitoring, E&S, and climate adaptation consultancy services ; (iv) the associated Human Resources operating costs; (v) a cost overrun / funding gap of US$5.25 million on the 40 km road from Tappita to Toe-Town under the parent project; and (vi) a contingency for resettlement and physical / price adjustment.The 85 km road includes 75 km segment from Toetown to Zwedru on the Southeastern corridor and a 10 km spur connecting the Southeastern Corridor to the Ivory Coast border . This road section links the southeastern part of Liberia, where about a third of its population dwells, to the capital city of Monrovia as well as the Freeport of Monrovia. This investment is key to providing an economic lifeline for inaccessible rural areas that are strongly vulnerable to climate change impacts and with high incidence of poverty. It will also support the economic integration of the region with the rest of Liberia and neighboring countries and foster regional trade with Cote d’Ivoire and Guinea. In addition, the construction of this segment to an all-weather standard by closing a critical gap in road connectivity that constrains market access and agricultural production in Nimba County will contribute to improvement in market access, reduce logistical cost, reduce post-harvest losses, boost agricultural sector competitiveness, and improve rural livelihoods and food security.The road will be constructed under a design-build approach based on an existing conceptual design. Works will include full construction of a climate-resilient two-lane carriageway (3.75-meter-wide lanes and 1.5-meter paved shoulders) with bituminous surfacing along the existing right-of-way, with associated drainage structures, and road furniture. In the urbanized zones, the road section will have 1.5-meter-wide block paved pedestrian walkways on both sides with climate-resilient features, wide concrete side drains to accommodate heavy precipitation, and disability inclusive access as required. The works will also provide several cross-drainage structures, culverts, and bridges over streams and rivers. The pavement will have a 20-year design life. The designs and works will also incorporate road safety measures through pre-investment, design, and post-construction safety audits. Spot improvements on critical sections of feeder roads, severely affected by climate change impacts, that link targeted agricultural production zones and the primary road corridor will also be financed following design parameters that increase resiliency to climate change and extreme weather events.