The World Bank Efficient & Sustainable City Bus Services (P132418) REPORT NO.: RES38264 RESTRUCTURING PAPER ON A PROPOSED PROJECT RESTRUCTURING OF EFFICIENT & SUSTAINABLE CITY BUS SERVICES APPROVED ON DECEMBER 9, 2014 TO DEPARTMENT OF ECONOMIC AFFAIRS TRANSPORT SOUTH ASIA Regional Vice President: Hartwig Schafer Country Director: Junaid Kamal Ahmad Regional Director: Guangzhe Chen Practice Manager/Manager: Shomik Raj Mehndiratta Task Team Leader: Nupur Gupta The World Bank Efficient & Sustainable City Bus Services (P132418) ABBREVIATIONS AND ACRONYMS PDO Project Development Objective GEO Global Environment Objective MoHUA Ministry of Housing & Urban Affairs ITS Intelligent Transport System MIS Management Information System PMU Project Management Unit ESCBS Efficient and Sustainable City Bus Services SUTP Sustainable Urban Transport Project GEF Global Environment Facility NURM National Urban Renewal Mission GHG Green House Gases EA Environmental Assessment The World Bank Efficient & Sustainable City Bus Services (P132418) Note to Task Teams: The following sections are system generated and can only be edited online in the Portal. BASIC DATA Product Information Project ID Financing Instrument P132418 Investment Project Financing Original EA Category Current EA Category Partial Assessment (B) Partial Assessment (B) Approval Date Current Closing Date 09-Dec-2014 31-Dec-2019 Organizations Borrower Responsible Agency Department of Economic Affairs Ministry of Urban Development Project Development Objective (PDO) Original PDO The project's Global Environment Objective (GEO) is to improve the efficiency and attractiveness of city bus transport and reduce greenhouse gas emissions in the demonstration cities. OPS_TABLE_PDO_CURRENTPDO Summary Status of Financing Net Ln/Cr/Tf Approval Signing Effectiveness Closing Commitment Disbursed Undisbursed TF-18577 31-May-2016 31-May-2016 29-Aug-2016 31-Dec-2019 9.20 2.80 6.40 Policy Waiver(s) Does this restructuring trigger the need for any policy waiver(s)? No The World Bank Efficient & Sustainable City Bus Services (P132418) Note to Task Teams: End of system generated content, document is editable from here. I. PROJECT STATUS AND RATIONALE FOR RESTRUCTURING PROJECT STATUS A. Project Components 1. The project comprises two major components:  Component 1 - National Capacity Building for Urban Bus Sector: This component is implemented by the Ministry of Housing & Urban Affairs (MoHUA, erstwhile Ministry of Urban Development) and covers: (i) a review of the legal, regulatory, institutional and fiscal constraints to operation of sustainable city bus services; and (ii) capacity building initiatives involving development of knowledge materials, training activities, knowledge sharing and cross learning events.  Component 2 - City Demonstration Projects: This component involves targeted city level modernization interventions to showcase low cost high impact investments in bus operation efficiency and user responsiveness: (i) modern depot equipment; (ii) intelligent transport systems (ITS) including management information systems (MIS); and (iii) technical assistance and capacity building to support the modernization initiatives i.e. technical assistance with ITS-MIS, bus fuel efficiency, business planning etc. in four demonstration cities, Bhopal, Chandigarh, Jaipur and Mira Bhayandar. B. Project Status 2. The Project was approved by the Board in December 2014 and became effective in August 2016. Following initial delays in effectiveness and starting procurements supported by the GEF grant, progress has improved in the past year with major procurements now substantially complete. 3. Under Component 1, the capacity building component managed by MoHUA has made progress in all modules and activities are expected to be substantially complete within the project timeline. 4. Under Component 2A, the depot modernization subcomponent has progressed well and now substantially complete. The new Todi depot in Jaipur is operational and the Ghodbunder Depot in Mira Bhayander is now substantially complete. The installation and commissioning of depot equipment has been completed in three cities and is substantially complete in Mira Bhayandar. The World Bank Efficient & Sustainable City Bus Services (P132418) 5. Procurement of the Intelligent Transport Systems (ITS) and Management Information Systems (MIS) was delayed but now completed in 2 cities, Bhopal and Mira Bhayander, where pilot of ITS is currently underway and will soon be expanded to the entire fleet. The procurement in Jaipur and Chandigarh had to be cancelled. Jaipur will no longer advance the implementation of ITS as Jaipur Smart City in collaboration with Rajasthan State Road Transport Corporation (RSRTC) would be implementing the project. Chandigarh has started the rebidding and targets to award by November 2019. The project is not expected to complete within Project closing date. As a result of Jaipur not utilizing the grant funds towards ITS, there are expected to be savings under this subcomponent. 6. Owing to grant savings, cities plan to procure additional depot equipment (Bhopal, Chandigarh, Jaipur) and implement additional MIS features (Mira-Bhayander) which are programmed for completion by project closing. Procurement actions for these activities have been initiated. Due to the developments in the project, a saving of USD 1.0 million under the component has been reported. 7. Under Component 2B, which consists of Technical Assistance (TA) activities to support the Project Cities in the implementation of projects, technical support for ITS implementation and capacity building are in various stages of implementation. None of the cities, other than Bhopal, have undertaken the service and business planning activities. As such there are savings to the tune of $1.1 mn available under the subcomponent. 8. The status of procurement and commitments by components as of August 2019 is provided below. Commitment & Disbursement Status as of August 2019 Grant Committed Current Allocation Cost Disbursement Component 1 0.70 1.67 0.15 Project 0.40 0.25 0.13 Management Component 2 Component 2A 6.0 3.58 1.90 Component 2B 2.1 0.82 0.60 Total 9.2 6.07 2.80 9. The project has disbursed about 30 percent of the total grant amount of $9.2 million and is currently scheduled to close in December 31, 2019. The re-allocation of grant savings in component 2 from the cities to Component I on capacity building and technical assistance activities has been planned and disbursement of the remaining grant is planned by end of the project timeline. C. RATIONALE FOR RESTRUCTURING 10. The proposed project restructuring comprises of the following:  Re-allocation of GEF Grant savings  Changes to disbursement estimate. 11. Re-Allocation of GEF Grant saving: As outlined earlier, Jaipur will realise substantial savings of the GEF grant due to non-procurement of ITS/MIS. Similarly grant savings are available with cities from the technical The World Bank Efficient & Sustainable City Bus Services (P132418) assistance sub-component. There have also been savings realised owing to depreciation of the Rupee. As the cities are unlikely to utilize these grant savings within the project timeline, the cities have agreed to surrender the unutilized grant to the Ministry. The Ministry has proposed to re-allocate the grant savings towards ongoing and additional activities planned to be completed within the project timeline. It is estimated that there will be a grant saving of $2.225 mn ($1.0 mn from Component 2A; $1.1 mn from Component 2B; $0.125 mn from Component 3). 12. The Grant savings are proposed to be utilized for additional capacity building and technical assistance activities under the Component I being implemented by MoHUA. The following additional activities are proposed to be taken up through grant savings.  Service & Business Planning for Chandigarh and Mira-Bhayandar  Review of experience with Guidance document on contracting private bus operators  Extension of ESMAP Bus Fuel Efficiency Training Program  Documentation of SUTP demo project case studies  Capacity Building Program for City Bus Officials  LUTP Training Program (CEPT+IUT)  Knowledge Workshops on City Bus. 13. All activities are proposed to be completed within project timelines, and any spillover beyond this would be funded through state resources. The identified additional activities are in line with the project description of Component I. II. DESCRIPTION OF PROPOSED CHANGES The details of the proposed changes are as follows: D. Reallocation of GEF Grant: The reallocation of grant savings is presented below. S. Category Current Proposed Proposed Disbursement No Allocation Adjustments Allocations ratio 1 (1) Non-Consulting Services, consultants services and training 700,000 2,225,000 2,925,000 100% of Part 1 of the Project 2 (2) Goods and non -Consulting Services for Part 2(a) of the 6,000,000 1,000,000 5,000,000 100% project 3 (3) Non-Consulting Services, 2,100,000 1,100,000 1,000,000 100% consultants services and The World Bank Efficient & Sustainable City Bus Services (P132418) Incremental Costs for part2(b) of the Project 4 (4) Non-Consulting Services, consulting Services and incremental Cost for project 400,000 125,000 275,000 100% Management unit and Incremental Costs for part2 (b) of the Project Total 9,200,000 9,200,000 Note to Task Teams: The following sections are system generated and can only be edited online in the Portal. III. SUMMARY OF CHANGES Changed Not Changed Components and Cost ✔ Reallocation between Disbursement Categories ✔ Disbursement Estimates ✔ Implementation Schedule ✔ Implementing Agency ✔ DDO Status ✔ Project's Development Objectives ✔ Results Framework ✔ Loan Closing Date(s) ✔ Cancellations Proposed ✔ Disbursements Arrangements ✔ Overall Risk Rating ✔ Safeguard Policies Triggered ✔ EA category ✔ Legal Covenants ✔ Institutional Arrangements ✔ Financial Management ✔ The World Bank Efficient & Sustainable City Bus Services (P132418) Procurement ✔ 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) Component 1: National Component 1: National Capacity 3.30 Revised Capacity Building for Urban Bus 2.93 Building for Urban Bus Sector Sector Component 2A: City Component 2A: City Demonstration Projects: Physical 105.20 Revised Demonstration Projects: 76.76 Improvements Physical Improvements Component 2B: City Component 2B: City Demonstration Projects : Demonstration Projects : 2.90 Revised 1.59 Technical Assistance and Technical Assistance and Capacity Building Capacity Building Project Management Cost 1.70 Revised Project Management Cost 0.88 TOTAL 113.10 82.16 OPS_DETAILEDCHANGES_REALLOCATION _TABLE REALLOCATION BETWEEN DISBURSEMENT CATEGORIES Financing % Current Allocation Actuals + Committed Proposed Allocation (Type Total) Current Proposed TF-18577-001 | Currency: USD iLap Category Sequence No: 1 Current Expenditure Category: NonCS,CS, Trng - Part 1 The World Bank Efficient & Sustainable City Bus Services (P132418) 700,000.00 154,482.04 2,925,000.00 100.00 100.00 iLap Category Sequence No: 2 Current Expenditure Category: Gds, Non CS - Part 2(a) 6,000,000.00 1,904,082.30 5,000,000.00 100.00 100.00 iLap Category Sequence No: 3 Current Expenditure Category: Non CS, CS, Incre cost Part 2(b) 2,100,000.00 603,231.19 1,000,000.00 100.00 100.00 iLap Category Sequence No: 4 Current Expenditure Category: Non CS,CS,Inc cost, Proj Mgmnt unit 400,000.00 133,816.21 275,000.00 100.00 100.00 Total 9,200,000.00 2,795,611.74 9,200,000.00 OPS_DETAILEDCHANGES_DISBURSEMENT_TABLE DISBURSEMENT ESTIMATES Change in Disbursement Estimates Yes Year Current Proposed 0000 0.00 0.00 2015 0.00 0.00 2016 0.00 0.00 2017 0.00 0.00 2018 910,000.00 0.91 2019 5,000,000.00 2.13 2020 9,200,000.00 9.20 .