US embassy cable - 04KINSHASA1700

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