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### Viewing cable 04KINSHASA1700, DRC LAND TRANSPORTATION SURVEY

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Reference ID | Created | Released | Classification | Origin
--- | --- | --- | --- | ---
04KINSHASA1700 | 2004-09-09 12:37 | 2011-08-25 00:00 | UNCLASSIFIED | Embassy Kinshasa

`

    This record is a partial extract of the original cable. The full text of the original cable is not available.

` `

    UNCLAS SECTION 01 OF 03 KINSHASA 001700

    SIPDIS

    E.O. 12958: N/A
    TAGS: ELTN ECON EAID CG
    SUBJECT: DRC LAND TRANSPORTATION SURVEY

    REF: A. KINSHASA 1547
         ¶B. KINSHASA 1384

    ¶1. Summary.  Infrastructural damage suffered over years of
    war and neglect have all but crippled the DRC's land
    transportation network.  Roads and railways are critical to
    the country's recovery, but have received little attention
    from the GDRC.  International financing for rehabilitation
    projects is helpful but shortsighted.  Without revenue
    generating mechanisms in place to fund long-term upkeep, aid
    money is squandered on repairs that will quickly deteriorate.
      End Summary.

    Road Assessment
    ---------------

    ¶2. Responsibility for construction, management, and
    maintenance of the DRC's roads falls primarily with the
    Ministry of Transportation's Office des Routes (OR - Roads
    Administration).  The country's road network is comprised of
    152,230 km of roads of which 7,400 km are urban roads, 58,305
    km are national roads, and 86,615 km are local roads.  OR is
    also responsible for the maintenance of the country's 1,965
    road bridges.

    ¶3. The DRC's most important road axes in terms of commerce
    and physical linkage between strategic locations are its four
    Routes Nationales (RN - National Routes).  National Route No.
    1 (RN1) is a heavily traveled commercial route stretching
    from the Atlantic coast of the DRC to the port of Matadi then
    to Kinshasa and onward to Katanga.  National Route No. 2
    (RN2) runs from Mbuji Mayi in Kasai Oriental province to
    Bukavu in South Kivu province and to Kasongo in Maniema
    province.  National Route No. 3 (RN3) links Kisangani in
    Orientale province with Bukavu in South Kivu province.
    National Route No. 4 (RN4) runs from the frontier with the
    Central African Republic to Kisangani and Bunia in Orientale
    province and to Beni in North Kivu province.

    ¶4. The DRC's road network has deteriorated steadily over the
    past decade.  According to Ministry of Transport and World
    Bank assessments, 75 percent of the country's roads are in
    poor condition, 15 percent are in fair condition, and only 10
    percent are in good condition.  Notable damage occurred
    during periods of conflict when roads and bridges were
    sabotaged by various combatant groups to prevent pursuit by,
    or resupply and reinforcement of, their opponents.  However,
    the primary factor has been a severe lack of maintenance and
    repair.  In addition to a general absence of upkeep, many
    roads were poorly or hastily constructed to begin with.  Bad
    grading, thinly paved driving surfaces, and an absence of
    ballast materials have resulted in rapid deterioration.

    ¶5. GDRC funding for OR has dried up in recent years.  Most of
    the taxes and "parafiscalities" that had traditionally
    financed OR operations were ended by the transitional
    government.  (Note: One such tax, a fuel surcharge, was
    halted because former President Laurent Kabila had organized
    a well-masked diversion of revenues away from OR to finance
    his war efforts.  Such politicized redirection of funds
    raises questions about the sustainability of maintenance
    operations.  End Note.)  A study conducted by the Ministry of
    Transportation estimates that complete rehabilitation of the
    DRC's main roads will cost USD 2.8 billion.  (Comment: This
    estimate is likely inflated, and points to GDRC attempts to
    obtain as much international financial support as possible.
    However, the high figure does reflect the severity of the
    state of disrepair.  End Comment.)

    ¶6. International donors have recognized the importance of a
    well-maintained road network to the DRC's economic and
    political recovery.  The World Bank made road rehabilitation
    a priority of its Programme Multisectoriel d'Urgence de
    Rehabilitation et de Reconstruction (PMURR), and committed
    USD 400 million for repairs of RN1.  RN1's state of disrepair
    had been estimated by the GDRC to add 40 percent to the price
    of goods on the Kinshasa market.  Repairs to the route were
    completed in early 2004.  (Note: Prices did decrease somewhat
    after RN1 was repaired, but not the 40 percent predicted by
    GDRC analysis.  End Note.)  Additionally, the World Bank and
    IMF recently committed USD 90 million for repairs of RN2 and
    RN4.  Work on these projects is scheduled to begin in late
    ¶2004.  (Comment: World Bank-funded repairs are contracted out
    to domestic and international firms of varying quality and
    expertise.  Repairs to RN1 were conducted by Chinese,
    European, and local firms, and are substandard in places (see
    ref A).  The road was only thinly paved with asphalt, and
    lacks sufficient ballast to protect against erosion
    associated with the DRC's rainy season.  Less than a year
    after the completion of repairs, the road surface is already
    beginning to deteriorate.  End Comment.)
    ¶7. When questioned by Econoffs regarding availability of
    funding for upkeep of newly repaired roads, both OR
    representative Kalembe Kiala and Minister of Transport Joseph
    Olenghankoy admitted that few revenue generating mechanisms
    are currently in place, and that little funding is expected
    from the GDRC.  Mr. Kiala suggested a renewal of various
    taxes and tolls, but questioned their political feasibility.
    Mr. Olenghankoy expressed his wish to see road construction
    and management privatized, but acknowledged that the system
    was not likely to attract a buyer.

    ¶8. Comment: International assistance to rehabilitate the DRC
    road network may be for naught.  Without proper funding to
    maintain repaired roads, they will rapidly return to an
    impassable state.  The World Bank and bilateral donors have
    pumped cash into the sector, but will see little benefit
    unless the GDRC takes the difficult but necessary steps to
    establish revenue generating mechanisms to fund proper
    upkeep.  End Comment.

    Rail Assessment
    ---------------

    ¶9. The DRC's 3,600 km of railways are managed by the
    parastatal Societe Nationale des Chemins de Fer du Congo
    (SNCC).  An additional 360 km line linking Kinshasa with the
    Port of Matadi is managed by ONATRA (port authority).  The
    DRC's rail network is aged, but generally in decent repair.
    However, a shortage of locomotives and rolling stock severely
    limits transportation capacity.  SNCC owns nearly 90
    locomotives of which only approximately 10 electric
    (catenary) and 20 diesel units (8 of which are rented from
    South African companies) are serviceable.  These locomotives
    are scattered throughout SNCC's rail network, and only a
    portion are in commercial use.  (Note: There is an additional
    railway, Chemins de Fer des Ueles, connecting Bumba to
    Mungbere with branches to Bondo and Andoma-Titule in
    Orientale province.  However, the railway is in severe
    disrepair and is not slated to receive any international
    funding to assist with rehabiliation.  End Note.)

    ¶10. SNCC currently operates three primary rail lines.  The
    first links Sakania, Lubumbashi, Likasi, and Kamina in
    Katanga province; the second, Lubumbashi, Tenke, and Dilolo
    in Katanga province; and the third, Kamina, Kindu, Kabalo,
    and Kalemie in Maniema and Katanga provinces.  (Note: There
    are no rail links between the DRC's eastern provinces and the
    interior or Kinshasa.  End Note.)

    ¶11. Most of SNCC's troubles can be attributed to a lack of
    funding for maintenance and repairs.  GDRC financing for rail
    transportation was curtailed over the last decade.
    Furthermore, SNCC was particularly hard hit by the collapse
    of Gecamines (mining parastatal), which had once provided 65
    percent of SNCC's revenues.  The remaining passenger,
    agricultural, and freight traffic have been insufficient to
    fund proper equipment upkeep.  Continuing tensions in the
    eastern provinces have also kept some lines out of operation,
    and have deterred donors from funding necessary repairs.

    ¶12. Ministry of Transportation estimates put the cost of
    total rehabilitation of the DRC's railways at USD 1.1
    billion.  (Comment: As with the Ministry's road repair
    estimates, this figure is probably inflated, but reflects the
    gravity of the situation.  End Comment.)  SNCC is slated to
    receive USD 60 million as part of the World Bank's PMURR
    project.  This will fund repairs to 50km of track and several
    bridges, the purchase of 75 new railcars, and the
    rehabilitation and purchase of spare parts for 10
    locomotives.  In addition, USAID recently funded USD 1.3
    million worth of track and bridge repairs to reopen the
    Kabalo-Kindu line (see ref B).  (Note: The USAID-funded
    project was significant in that it connected Kindu to
    Lubumbashi, bridging a major gap in SNCC's rail network.  The
    Zofu bridge on Kabalo-Kindu line had been sabotaged during
    the war, and because SNCC has sent all of its locomotives
    south into Katanga to prevent looting, the bridge's
    destruction kept otherwise usable track out of service.  End
    Note.)

    ¶13.  ONATRA's Matadi-Kinshasa line is in a decent state of
    repair, but also suffers from a lack of locomotives and
    rolling stock.  Because the line transports goods from the
    DRC's major international port, it enjoys a steadier revenue
    stream than most SNCC lines.  However, ONATRA has been forced
    to cannibalize its equipment to maintain semi-regular
    operations.

    ¶14. Comment: Although the DRC's rail network is less
    maintenance-intensive than its roads, it still requires
    regular upkeep.  More locomotives and railcars will have to
    be purchased to increase SNCC and ONATRA capacity if they
    hope to become self-sustaining.  This requires more capital
    than can currently be mustered by either enterprise.  End
    Comment.

    Final Comment
    -------------
    ¶15. The World Bank and bilateral donors face difficult
    decisions regarding the efficacy and sustainability of their
    road and rail rehabilitation strategies.  Deterioration of
    the DRC's transportation network has been slowed by external
    financial assistance, but this is a temporary solution at
    best.  The GDRC must take action to revive old revenue
    streams or create new ones in order to fund upkeep.  In
    addition, taxes and fees must contribute to the services for
    which they were intended.  Diversion of the funds defeats
    their purpose.  Selective privatization may be a workable
    long-term solution, but numerous political and economic
    hurdles must first be overcome (e.g. continuing insecurity,
    low formal sector activity, ineffective legal system, etc.).
    In the meantime, the DRC's road and rail infrastructure - the
    backbone of the country's economic recovery - will depend on
    the continued generosity of the donor community, where
    similar sustainability concerns have been raised.  The
    Belgian Embassy and Belgian Cooperation (Belgian aid
    organization) have planned a roundtable for mid-October
    focusing on infrastructure-related programs and concerns.
    All GDRC and donor country officials involved in
    infrastructure planning and development have been invited.
    MEECE

`