Document of The World Bank FOR OFFICIAL USE ONLY Report No: 76717-WS RESTRUCTURING PAPER ON A PROPOSED PROJECT RESTRUCTURING OF THE SAMOA: SECOND INFRASTRUCTURE ASSET MANAGEMENT PROJECT PACIFIC REGION INFRASTRUCTURE FACILITY [BOARD APPROVED DECEMBER 29, 2003] TO THE INDEPENDENT STATE OF SAMOA November 12, 2013 Timor-Leste, Papua New Guinea & the Pacific Islands Sustainable Development Department East Asia and Pacific Region This document has a restricted distribution and may be used by recipients only in the performance of their official duties. Its contents may not otherwise be disclosed without World Bank authorization. ABBREVIATIONS AND ACRONYMS GoS Government of Samoa LTA Land Transport Authority MNRE Ministry of Natural Resources and Environment PDO Project Development Objective PMU Project Management Unit PRIF Pacific Region Infrastructure Facility RP Restructuring Paper SIAM-2 Second Infrastructure Asset Management Project Regional Vice President: Axel van Trotsenburg Country Director: Franz Drees-Gross Sector Manager: Michel Kerf Task Team Leader: Jim Reichert 2 SAMOA: SECOND ASSET INFRASTRUCTURE MANAGEMENT PROJECT CONTENTS Page A. SUMMARY ........................................................................................................................................ 4 B. PROJECT STATUS .......................................................................................................................... 4 C. PROPOSED CHANGES .................................................................................................................. 6 D. APPRAISAL SUMMARY................................................................................................................ 7 ANNEX 1: RESULTS FRAMEWORK AND MONITORING........................................................... 8 3 SAMOA: SECOND INFRASTRUCTURE ASSET MANAGEMENT PROJECT RESTRUCTING PAPER A. SUMMARY 1. This Restructuring Paper (RP) seeks the approval of the Country Director to update the performance indicators to SIAM-2 (P075523), associated with the Pacific Region Infrastructure Facility (PRIF) TF10785, and to carry out any necessary accompanying amendments to the project’s legal documents. This RP reflects changes discussed with the Ministry of Finance and the Land Transport Authority (LTA) during the January 28 to February 7, 2013 mission to supervise the Second Infrastructure Asset Management Project (SIAM-2) and recorded in the Aide Mémoire dated February 11, 2013. B. PROJECT STATUS 2. Background: The project development objectives (PDO) of the Second Infrastructure Asset Management Project (SIAM-2) are to: (i) enhance the economic, environmental and social sustainability of transport and coastal infrastructure assets; and (ii) manage those assets and natural resources and respond to national emergencies, through an effective partnership with private sector stakeholders. 3. Under the Project Code for SIAM-2 (P075523), there have been four sources of financing:  IDA 38480-WSO (IDA Credit of $12.80 mil.), approved on December 29, 2003 and closed on June 30, 2010;  IDA 38481-WSO (Additional Financing IDA Credit of $4.135 mil.), approved on June 19, 2007 and closed on June 30, 2013;  IDA H3110-WSO (Additional Financing IDA Grant of $4.135 mil.), approved on June 19, 2007 and closed on June 30, 2013; and  TF10785 (PRIF Grant of $3.83 mil.), approved on February 1, 2012 with effectiveness on August 23, 2012, and a current closing date of December 31, 2014. 4. The original project was approved by the Board on December 29, 2003 and became effective on June 18, 2004. Both a Credit and Grant were provided to the GoS under the Credit Agreement (IDA 38480-WSO) dated January 20, 2004, as well as under the Financing Agreement for the additional financing (Credit Number 38481-WSO and Grant Number H3110- WSO), dated August 13, 2007. 5. The closing date of the original project (P075523) was June 30, 2010. When the Additional Financing was approved in 2007, the closing date matched that of the original project (see page 10 of the Financing Agreement). Shortly after the additional financing was approved, the closing date was extended by 18 months to December 31, 2011. When the PRIF trust fund was added to the project, the project was restructured and the closing date of SIAM-2 (P075523) was extended once more to June 30, 2013. Most recently, the closing date of the PRIF trust fund has been extended by 18 months to December 31, 2014. 4 6. Project Description: Principal activities under SIAM-2 include: (i) Airport Infrastructure - implementing a computerized asset management system for the Samoa Airport Authority; (ii) Road and Other Infrastructure - upgrading and widening of key road assets in Apia Town; (iii) Sustainable Management of Infrastructure, Natural Resources and Risks - furthering institutional and technological improvements to the Disaster Management and Land Registration Systems; (iv) Institutional Development in Transport and Infrastructure - sustaining institutional reforms in the road sector through the use of specialists; and (v) Project Management - supporting project implementation. 7. Summary of Implementation Progress: The following provides an overview of progress in implementing SIAM-2’s components.  Component 1: Airport Infrastructure. All activities under Component 1 have been completed.  Component 2: Road and Other Infrastructure. Under this component, improvements to key road sector assets in Apia Town were carried out, including widening of Vaitele Street, a key corridor, and replacement of the Togafuafua and Viamoso Bridges. The improvements to Viatele Street have been completed, while the works on the Togafuafua Bridge are nearing completion. The replacement of the Vaimoso Bridge is well advanced and is expected to be completed in early-2014. Although works are largely on track, progress was hindered by Tropical Cyclone Evan, which struck Samoa on December 13 and 14, 2012. At the time, all contractors, including those working on Vaitele Street and the two bridges, were diverted to respond to emergency efforts to clear roads and clean-up flooded areas.  Component 3: Sustainable Management of Infrastructure, Natural Resources and Risks. Activities under Component 3 have been satisfactorily completed.  Component 4: Institutional Development in Transport and Infrastructure. This component continues to progress satisfactorily. Rather than construct a permanent weigh bridge on LTA property, it was agreed that weigh pads would be more appropriate and that legislation to enable LTA to enforce axle load restrictions generally should be amended.  Component 5: Project Management. It was strongly recommended during the June 2013 mission that the consulting firm supporting LTA to implement the project (IPA) take a more proactive role in providing technical guidance to the LTA in gathering the required indicators, which is part of their duties. 8. Project Ratings: Both key project ratings, progress towards achieving the PDO and overall implementation progress, have been rated as satisfactory (PDO) or moderately satisfactory (implementation progress) for the past year. The current rating for progress toward achieving the PDO is satisfactory, while the rating for overall implementation progress continues to be moderately satisfactory, largely because the Vaimoso and Togafuafua Bridge replacements could not be completed by the project’s previous closing date of June 2013. The project team believes that the PDO remains relevant and that generally satisfactory progress towards the PDO will continue. There are no overdue audit reports, no key actions pending from prior-year audits, and no outstanding IFRs. C. PROPOSED CHANGES 9. The modifications proposed under this restructuring will not change the PDO, and the PDO will still be achieved with the activities being carried out under the remaining project 5 components. No new activities are being proposed. There is no escalation of the safeguard rating, and no additional safeguards triggered. As such, a Level 2 restructuring will be carried out. 10. Updated Performance Indicators. The finance agreement for the original project (IDA 38480-WSO, now closed) identifies 11 key performance indicators. During implementation, seven additional indicators were introduced in an effort to gather more meaningful data on project performance. In all, 18 indicators were being measured during implementation. However, the implementing agencies found many of these indicators difficult to measure in a consistent and meaningful manner and the Task Team has worked with counterparts to identify more meaningful ones. The Task Team believes that even at this late stage it makes sense to revise the indicators because: (i) it would relieve the Client from collecting difficult indicators, many of which are no longer appropriate; and (ii) some previous data likely exists for some of the proposed revised indicators, so changing them now would likely enable the Client and Task Team to better measure the project's impact. Therefore, the project team now proposes to rationalize the indicators by reducing the PDO indicators to four, which includes the revision of one indicator to be a core sector indicator, and the intermediate results indicators to three. Annex 1 summarizes the proposed modifications to the current indicators. D. APPRAISAL SUMMARY 11. Safeguards. Since there is no change in the scope of activities to be funded under the restructured project, there is no change in the project’s safeguards category, which is Category B (Partial Assessment). No new safeguards policies will be triggered and the safeguards instruments that were developed during project preparation remain appropriate. 2. There will be no changes to the procurement and financial management arrangements. 6 ANNEX 1: Results Framework and Monitoring Project Development Objective (PDO): The PDO aims to (i) to enhance the economic, environmental and social sustainability of transport and coastal infrastructure assets; and (ii) to manage those assets and natural resources and respond to national emergencies, through an effective partnership with private sector stakeholders. Revised Project Development Objective: N/A D=Dropped Cumulative Target Values** C=Continue Responsibility Core PDO Level Results N= New Unit of Data Source/ Baseline Frequency for Data Indicators* R=Revised Measure 2010 2011 2012 2013 2014 Methodology Collection Indicator One: Roads in good and fair R Percent 75 78 80 83 85 90 Annual Annual LTA X condition as a share of total condition classified roads survey Indicator Two: Reformed management structures in place for Land C Yes/No No Yes Annual Legislation PMU Transport review Indicator Three: Samoa Airport Authority - % D n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a cost recovery for air transport infrastructure assets Indicator Four: Asset management system n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a operational for airport D infrastructure assets Indicator Five: Annual portion of national road R Percent 4.0 4.0 4.5 7.0 8.5 10.0 Annual LTA annual PMU network receiving periodic report maintenance Indicator Six: Service quality ratings by road D n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a users and affected groups Indicator Seven: Cost recovery of road D n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a maintenance Indicator Eight: Coastal communities covered C Percent 35 45 60 75 90 100 Annual MNRE MNRE by CIM Plans activities INTERMEDIATE RESULTS Intermediate Result (Component 1): Airport Infrastructure: Fagali’i airport closed. TA under procurement Revised Intermediate Result (Component 1): n/a Intermediate Result Indicator 1: Dropped n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a Intermediate Result (Component 2): Roads and Bridges: B.1, B.2, B.3 works advanced; B.4 land acquisition in progress, bid documents prepared; B.5 Works under bidding; B.6 3 packages completed Revised Intermediate Result (Component 2): n/a Intermediate Result Indicator 2: Dropped n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a Intermediate Result (Component 3): Management of Resources and Risks: C.4, C.5 consultancies began 2/05 Revised Intermediate Result (Component 3): n/a Intermediate Result Indicator 3: Dropped n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a Intermediate Result (Component 4): Institutional Development: D.5, D.6 contracts in progress Revised Intermediate Result (Component 4): n/a Intermediate Result Indicator 4: Dropped n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a Intermediate Result (Component 5): Project Management: All contracts in progress Revised Intermediate Result (Component 5): n/a Intermediate Result Indicator 5: Dropped n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a Intermediate Result (Component 4): Staffing and effective functional capacity of LTA Revised Intermediate Result (Component 4): Percentage of key technical and managerial positions filled at LTA Intermediate Result Indicator 6: Revised Percent 60 70 75 80 85 100 Annual LTA records PMU Intermediate Result (Component 1): Staffing and effective functional capacity of MNRE Revised Intermediate Result (Component 1): Staffing level of MNRE Intermediate Result Indicator 7: Dropped Number n/a n/a n/a n/a n/a n/a n/a n/a n/a Intermediate Result (Component 3): Competitive price savings for works and services 8 Revised Intermediate Result (Component 3): Competitive price savings for maintenance works Intermediate Result Indicator 8: Revised Percent 0 0 5 10 15 20 Annual LTA LTA Intermediate Result (Component 2): Available cadastral land plans digitized and validated Revised Intermediate Result (Component 2): n/a Intermediate Result Indicator 9: Dropped n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a Intermediate Result (Component 5): Compliance with EIA provisions Revised Intermediate Result (Component 5): n/a Intermediate Result Indicator 10: PUMA/MNRE Continue Percent 40 100 100 100 100 100 Annual records PMU 9