The World Bank Enhanced Road Access Project (P145545) REPORT NO.: RES29944 DOCUMENT OF THE WORLD BANK RESTRUCTURING PAPER ON A PROPOSED PROJECT RESTRUCTURING OF ENHANCED ROAD ACCESS PROJECT APPROVED ON OCTOBER 17, 2013 TO SAMOA TRANSPORT & DIGITAL DEVELOPMENT EAST ASIA AND PACIFIC Regional Vice President: Victoria Kwakwa Country Director: Michel Kerf Senior Global Practice Director: Jose Luis Irigoyen Practice Manager/Manager: Almud Weitz Task Team Leader: Sean David Michaels, Keelye Rinchen Hanmer The World Bank Enhanced Road Access Project (P145545) I. BASIC DATA Product Information Project ID Financing Instrument P145545 Investment Project Financing Original EA Category Current EA Category Partial Assessment (B) Partial Assessment (B) Approval Date Current Closing Date 17-Oct-2013 30-Apr-2019 Organizations Borrower Responsible Agency Samoa Land Transport Authority Project Development Objective (PDO) Original PDO To restore key road sector assets damaged by extreme weather events and enhance the climate resilience of critical roads and bridges in Samoa. Summary Status of Financing Net Ln/Cr/Tf Approval Signing Effectiveness Closing Commitment Disbursed Undisbursed IDA-H8840 17-Oct-2013 01-Nov-2013 20-Feb-2014 30-Apr-2019 20.00 15.42 3.17 TF-A6371 31-May-2018 12-Jun-2018 31-Aug-2018 30-Apr-2019 5.88 0 5.88 TF-17563 08-Oct-2014 08-Oct-2014 08-Oct-2014 30-Apr-2019 3.83 2.41 1.42 Policy Waiver(s) Does this restructuring trigger the need for any policy waiver(s)? No The World Bank Enhanced Road Access Project (P145545) II. SUMMARY OF PROJECT STATUS AND PROPOSED CHANGES A. Rationale for Restructuring and Project Status. 1. The objective of the Level 2 Restructuring of the Enhanced Road Access Project (ERAP) (Grant No. H884-WS and TF0A6371) is to extend the Project’s closing date by 18 months from 30 April 2019 to 31 October 2020. The extension will allow sufficient time for the completion of the civil works for Mali’oli’o Bridge, which is required due to delays in project implementation. Without the extension, the works cannot be completed within the current project timeframe, which puts at risk the achievement of the Project Development Objective (PDO). 2. The PDO is to “restore key road sector assets damaged by extreme weather events and enhance the climate resilience of critical roads and bridges in Samoa”. Progress towards achievement of the PDO is currently rated as Moderately Satisfactory, and Implementation Progress is currently rated Moderately Satisfactory. Grant disbursements as of October 2018 amounted to US$15.42 million (83%) of IDA financing and US$2.41 million (25%) of DFAT financing. 3. ERAP was prepared in response to Tropical Cyclone Evan (TCE), and was approved in October 2013, becoming effective in February 2014. The Project provides funding to repair roads and bridges damaged by TCE and to upgrade, rehabilitate and/or reconstruct existing road sector assets to higher standards to strengthen their resilience to climate change and extreme weather events. 4. A Project Restructuring of ERAP was approved on May 31, 2018, to: (i) provide an additional financing (AF) in a net amount of US$3.36 million provided by the Australian Government’s Department of Foreign Affairs and Trade (DFAT), to support ERAP (Grant No. H884-WS and TF017563); and, (ii) restructure the project to: (a) change the current financing arrangements (part cancellation); and, (b) adjust the results framework and disbursement projections. 5. The project is in its fourth year of a five and a half-year implementation schedule. The project was slow to start; however, implementation progress continues to improve. The Project Restructuring is necessary due to a number of challenges that have affected key activities, primarily delays associated with Mali’oli’o Bridge, but also the slow implementation of the remaining activities including the axle-load limit reforms and construction standards, and the design and construction for the Upolu crossings. There has been considerable staff turnover within the Land Transport Authority (LTA), the Implementing Agency, and mixed performance by the Project Management Consultancy (PMC). The level of safeguards input required has also been substantial with the requirements for, and time taken to achieve, land acquisition resulting in project implementation delays. Additionally, there have been delays in conducting the required surveys to prepare the Abbreviated Resettlement Action Plan (ARAP) at Mali’oli’o. Combined, these issues have contributed to delays in critical project activities. 6. An Action Plan has been implemented that covers financial management, procurement, safeguards and contract management. Actions have been taken, including the hiring of a Technical Advisor to improve overall Project management, as well as a safeguards specialist. In addition, the contract variation to transfer the responsibilities of financial management support from the PMC to the Ministry of Finance (MoF) has been finalized, to strengthen Ministry of Finances' governance over financial management. 7. Though delayed, progress has now been made on Mali’oli’o Bridge, with the works contract awarded and signed September 19, 2018, and the kick-off meeting held October 24, 2018. In addition, the construction supervision contract for these works was signed April 5, 2018. In addition, procurement of the axle-load testing and traffic The World Bank Enhanced Road Access Project (P145545) counting equipment has commenced to enable the consultant to complete the activity, with initial outputs already delivered. Lastly, work has progressed on the Upolu crossings designs with the safeguard documents to be completed during October 2018. B. Proposed Changes. 8. The proposed change under this Level 2 Restructuring is an extension to the closing date by 18 months from April 2019 to 31 October 2020 (Grant No. H884-WS and TF0A6371). No changes are proposed for the closing date for TF017563. 9. There are no overdue audits or Interim Financial Statements, and the Project is in compliance with all legal covenants. No other changes are proposed as part of the restructuring. III. DETAILED CHANGES LOAN CLOSING DATE(S) Original Revised Proposed Proposed Deadline Ln/Cr/Tf Status Closing Closing(s) Closing for Withdrawal Applications IDA-H8840 Effective 30-Apr-2019 31-Oct-2020 28-Feb-2021 TF-17563 Effective 30-Apr-2019 30-Apr-2019 30-Aug-2019 TF-A6371 Effective 30-Apr-2019 31-Oct-2020 28-Feb-2021