The World Bank Transport Sector Modernization and Corridor Trade Facilitation Project (P156900) REPORT NO.: RES49044 RESTRUCTURING PAPER ON A PROPOSED PROJECT RESTRUCTURING OF TRANSPORT SECTOR MODERNIZATION AND CORRIDOR TRADE FACILITATION PROJECT APPROVED ON JULY 5, 2016 TO REPUBLIC OF CÔTE D’IVOIRE TRANSPORT AFRICA WEST Regional Vice President: Ousmane Diagana Country Director: Coralie Gevers Regional Director: Ashish Khanna Practice Manager/Manager: Ibou Diouf Task Team Leader(s): Monica Augustina Cristina Moldovan, Alphonse Soh The World Bank Transport Sector Modernization and Corridor Trade Facilitation Project (P156900) ABBREVIATIONS AND ACRONYMS DPO Development Policy Operation GoCI Government of Cote d’Ivoire IDA International Development Association IFC International Finance Corporation IP Implementation Progress OSER Office de la Sécurité Routière (Road Safety Agency) PAMOSET Transport Sector Modernization and Corridor Trade Facilitation Project in Ivory Coast PDO Project Development Objective RTFCC Regional Trade Facilitation and Competitiveness Credit UNCTAD United Nations Conference on Trade and Development The World Bank Transport Sector Modernization and Corridor Trade Facilitation Project (P156900) BASIC DATA Product Information Project ID Financing Instrument P156900 Investment Project Financing Original EA Category Current EA Category Partial Assessment (B) Partial Assessment (B) Approval Date Current Closing Date 05-Jul-2016 31-Dec-2021 Organizations Borrower Responsible Agency Ministry of Finance PRICI- PIU Project Development Objective (PDO) Original PDO The objective of the proposed project is to improve the efficiency and safety of transport services on the Ivoirian section of the Abidjan (Ivory Coast)   Ouagadougou (Burkina Faso) road transport corridor. OPS_TABLE_PDO_CURRENTPDO Summary Status of Financing (US$, Millions) Net Ln/Cr/Tf Approval Signing Effectiveness Closing Commitment Disbursed Undisbursed IDA-58700 05-Jul-2016 14-Sep-2016 14-Dec-2016 31-Dec-2021 30.00 10.48 20.16 Policy Waiver(s) Does this restructuring trigger the need for any policy waiver(s)? No The World Bank Transport Sector Modernization and Corridor Trade Facilitation Project (P156900) I. PROJECT STATUS AND RATIONALE FOR RESTRUCTURING 1. The Transport Sector Modernization and Corridor Trade Facilitation Project in Ivory Coast (PAMOSET) along the Abidjan - Ouagadougou Corridor supports the objectives of the Regional Trade Facilitation and Competitiveness Credit (RTFCC) Development Policy Operation (DPO), together with a similar project in Burkina Faso. The project’s development objective is to improve the efficiency and safety of transport services on the Ivoirian section of the Abidjan (Ivory Coast) - Ouagadougou (Burkina Faso) road transport corridor. The US$45 million PAMOSET project is financed through an IDA Credit 58700 of US$30 million and counterpart funding of US$15 million. As of mid-November 2021, the project registered a disbursement rate of 34.22 percent of the IDA funds. 2. Two months to project closing, the progress towards achievement of the Project Development Objective (PDO) is considered Moderately Unsatisfactory, while the Overall Implementation Progress (IP) is considered Moderately Satisfactory. The delays in the setup of the truck fleet renewal guarantee mechanism with International Finance Corporation (IFC) through a complex Level 2 project restructuring led to a downgrade in the rating of the progress towards achieving the PDO. Regarding the IP progress, despite the non-implementation of the truck fleet renewal mechanism, many tangible results were achieved as described in the paragraphs below. 3. Key activities under Component 1 - Institutional strengthening and capacity building support for public and private sector participants in the transport were finalized. The pilot for the training program of the transport sector actors (drivers and managers) which started in September 2018, with a target to train 3500 drivers and 1500 transport operators in the sector during the project lifetime, was successful and at project closing reached its objectives (with 3,602 drivers and 1,541 managers trained with the support of the project). Other key achievements included support for the reform of the driving license exam (software package and equipment), as well as preparation of the regulatory text on the freight exchange (currently awaiting adoption by the authorities). 4. The Component 2 - Development of a Heavy Cargo Truck renewal scheme, which held two tiers of the project's budget (including all the counterpart funds) was on track from a conceptual/design perspective. The studies to identify optimum fleet renewal scheme were completed in 2019 and a manual of operational procedures was developed and validated by the Ministry of Transport. Also, a site was selected for vehicle dismantling and scrapping for which a declaration of public utility was approved by Decree in the Council of Ministers on September 26, 2018. The Environmental and Social Impact Assessment of the site incurred delays but are expected to be finalized by December 2021. The completion of the required environmental and social studies is a prerequisite for the start of the construction and operation of the vehicle dismantling process. The recruitment of an international operator for the vehicle dismantling is ongoing and expected to be finalized by December 2021. This restructuring to set up of the truck fleet renewal guarantee mechanism with IFC, which had been planned following a request from the Government in March 2019, incurred delays of almost two years and was eventually dropped in June 2021 and led to approximately US$ 15 million in uncommitted IDA funds. Considering that the truck fleet renewal could not be operationalized by project closing date and the importance of this agenda for the transport sector, the Government of Cote d’Ivoire (GoCI) is exploring options to transfer these activities under other World Bank projects in the transport portfolio in the country. 5. Although the customs interconnectivity financed by the Component 3 - Support to customs modernization and trade facilitation on the Ivorian section of the Corridor had incurred delays in throughout the project lifetime, the activities were successfully implemented. The key activity under this component, namely the interconnection between Cote d'Ivoire and Burkina Faso has been operational since March 2019, allowing a time saving in transit The World Bank Transport Sector Modernization and Corridor Trade Facilitation Project (P156900) procedures. The training of CI-BF technical teams took place in Lomé, as part of the technical assistance contract with United Nations Conference on Trade and Development (UNCTAD). 6. Key activities financed under the Component 4 - Road safety on the Ivorian section of the Corridor were successfully implemented. The operational capacity of the OSER in terms of accident prevention and data collection have been strengthened through the modernization of the accident data collection and analysis system (for which Driver open-source software was developed in 2020 and is pending implementation). The road safety audit and inspection on the Abidjan-Ouagadougou corridor has been completed, the training on the techniques of road safety audit took place in September 2018, and the equipment for Office de la Sécurité Routière (OSER) capacity building has been acquired. 7. On November 8, 2021, the GoCI has requested the cancellation of EURO 15 010 556. These funds correspond to resources which will not be disbursed in relation to the activities undertaken and which could not reasonably be committed and implemented before the project closing date. Specifically, this refers to funds linked with the set-up of the guarantee mechanism with IFC as part of the truck fleet renewal mechanism under Component 2 (approximately US$ 15 million), as well as available funds not engaged linked to Component 3 (approximately US$ 1.02 million), and Component 4 (approximately US$ 1.04 million). II. DESCRIPTION OF PROPOSED CHANGES 8. This restructuring paper seeks approval to cancel undisbursed funds on the PAMOSET and reallocate them to the Cote d’Ivoire envelope to finance other activities. Considering the above, the only change proposed is the cancellation of EURO 15 010 556 from the IDA credit 58700. Specifically, they are linked with the Category 1 and Category 2 of the Financing agreement and are summarized in the tables below. The reallocation has been triggered to materialize the cancellation of funds. III. SUMMARY OF CHANGES Changed Not Changed Components and Cost ✔ Cancellations Proposed ✔ Reallocation between Disbursement Categories ✔ Implementing Agency ✔ DDO Status ✔ Project's Development Objectives ✔ Results Framework ✔ Loan Closing Date(s) ✔ Disbursements Arrangements ✔ The World Bank Transport Sector Modernization and Corridor Trade Facilitation Project (P156900) Disbursement Estimates ✔ Overall Risk Rating ✔ Safeguard Policies Triggered ✔ EA category ✔ Legal Covenants ✔ Institutional Arrangements ✔ Financial Management ✔ Procurement ✔ Implementation Schedule ✔ Other Change(s) ✔ Economic and Financial Analysis ✔ Technical Analysis ✔ Social Analysis ✔ Environmental Analysis ✔ IV. DETAILED CHANGE(S) OPS_DETAILEDCHANGES_COMPONENTS_TABLE COMPONENTS Current Current Proposed Proposed Cost Action Component Name Component Name Cost (US$M) (US$M) Institutional strengthening and Institutional strengthening and capacity building support for capacity building support for public and private sector 5.80 No Change public and private sector 5.80 participants in the transport participants in the transport sector sector Development of a heavy cargo Development of a heavy cargo 30.75 Revised 15.69 truck renewal scheme truck renewal scheme Support to customs Support to customs modernization and trade modernization and trade 3.45 Revised 2.42 facilitation on the Ivoirian section facilitation on the Ivoirian of the Corridor section of the Corridor Road safety on the Ivoirian Road safety on the Ivoirian 3.25 Revised 2.21 section of the Corridor section of the Corridor The World Bank Transport Sector Modernization and Corridor Trade Facilitation Project (P156900) Project management, monitoring Project management, 1.75 No Change 1.75 and evaluation monitoring and evaluation TOTAL 45.00 27.87 OPS_DETAILEDCHANGES_CANCELLATIONS_TABLE CANCELLATIONS Value Reason Current Cancellation New Ln/Cr/Tf Status Currency Date of for Amount Amount Amount Cancellation Cancellation BORROWER' Disburs S REQUEST IDA-58700- ing&Re EUR 26,400,000.00 15,010,556.00 08-Nov-2021 11,389,444.00 FOR 001 paying COUNTRY REASONS OPS_DETAILEDCHANGES_REALLOCATION _TABLE REALLOCATION BETWEEN DISBURSEMENT CATEGORIES Financing % Current Allocation Actuals + Committed Proposed Allocation (Type Total) Current Proposed IDA-58700-001 | Currency: EUR iLap Category Sequence No: 1 Current Expenditure Category: GD,NCS,CS,AUD,TR &OC Pt1,2b,c,3,4,5 13,200,000.00 7,187,233.20 11,389,444.00 100.00 100.00 iLap Category Sequence No: 2 Current Expenditure Category: GD,NCS,CS,AUD,TR &OC for 50% Pt 2a 13,200,000.00 0.00 0.00 100.00 0 Total 26,400,000.00 7,187,233.20 11,389,444.00 .