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determine the priority issues facing urbanareas. The results o f this study will enable a sound design o f a follow-on operation (preparation inFY06) which would focus on secondary cities, including the capitals o f each region and on strengtheningthe capacities o f the municipalities and other decentralized entities to manage resources and development programs.


A Household Energy and Universal Access Project (FY04) will bejointly financed

by GEF, IDA and UNDP. Inaddition to helping G o M focus on strategy, policy, and monitoring and evaluation, the household energy component will helptransfer the management o f forest resources to local communities by promoting community-based forest management initiatives, including the introduction and the promotion o f efficient charcoal production technologies. It will also empower local communities, NGOs and the private sector to operate demand-side inter-fuel substitution initiatives such as the manufacturing, commercialization and dissemination o f improved (wood, charcoal) stoves as well as kerosene and L P G stoves. Due to the vast expanse o f Mali, and the l o w density o f population inmany regions, it will not be viable to connect the entire country to the grid; thus many areas will depend on appropriate rural electrification schemes. The project takes into account transversal aspects such as solar power for rural health clinics and schools, as well as for agro-industrial transformation. The Netherlands are currently financing an interimHousehold Energyproject. This project will be implemented inparallel to the Western Africa Power Project (WAPP, currently under preparation) which aims to build and reinforce regional electricity transmission lines (see Box 6 for further details o f regional

activities). M a l i will be the beneficiary for about US$70 million o f this US$250 million credit, for its 541 kilometer share o f the transmission line linking Segou inM a l i to Ferkkssedougou in C6te d’Ivoire.


Ina landlocked country as large as Mali, the transport sector i s critical to improve

access both to and withinthe country. While the European Commission i s the lead donor in financial terms for road investments (about EUR140 million over the next four years), there i s still a need for Bank involvement, inparticular regarding the policy framework and to help ensure a coherent sector-wide approach. Inthis respect, the Bank i s working very closely with the EUon the preparation o f an Interim Transport Project which i s near completion (early FY04), focusing on: (iredundancies for R C F M (railway) staff to increase the efficiency o f the firm as it i s concessioned; (iithe rehabilitation o f two major roads; and (iiimitigating the adverse effects on road quality as a result o f the C6te d’Ivoire crisis. This

project will be an integral part o f the Bank’s regional efforts to develop and improve the transport corridors inwestern Africa. A planned Transport Sector and Growth E S W (FY04) will focus on the linkages betweentransport and other sectors and will provide support to the agenda o f growth with equity which will be pursuedunder the Second Transport Sector Program (FY06). This program will be designedin close collaboration with several other donors - EU, France, AfDB, IsDB, Kuwaiti Fundand the Saudi Fund. The Bank financing will be complementary to that provided by these partners.


Three Global Environment Facility (GEF) operations will be launched inM a l i over

the next three years. The Biodiversity Project (FY04) aims to halt and, in some cases, reverse biodiversity degradation trends inkey conservation areas and project sites; this project i s beingprepared and implementedinpartnership with France (French GEF). Two

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