The World Bank Eastern Dedicated Freight Corridor - II (P131765) REPORT NO.: RES36911 RESTRUCTURING PAPER ON A PROPOSED PROJECT RESTRUCTURING OF EASTERN DEDICATED FREIGHT CORRIDOR - II APPROVED ON APRIL 22, 2014 TO REPUBLIC OF INDIA 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(s): Saroj Ayush, Atul Agarwal, Martha B. Lawrence The World Bank Eastern Dedicated Freight Corridor - II (P131765) ABBREVIATIONS AND ACRONYMS DFC Dedicated Freight Corridor DFCCIL Dedicated Freight Corridor Corporation of India Limited EDFC Eastern Dedicated Freight Corridor IR Indian Railways JICA Japan International Cooperation Agency MOR Ministry of Railways PAPs Project Affected Peoples PDO Project Development Objective WDFC Western Dedicated Freight Corridor The World Bank Eastern Dedicated Freight Corridor - II (P131765) 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 P131765 Investment Project Financing Original EA Category Current EA Category Full Assessment (A) Full Assessment (A) Approval Date Current Closing Date 22-Apr-2014 31-Dec-2019 Organizations Borrower Responsible Agency Department of Economic Affairs, Ministry of Finance, Dedicated Freight Corridor Corporation of India Ltd. Republic of India Project Development Objective (PDO) Original PDO The development objectives of EDFC2 are to: (a) provide additional rail transport capacity, improved service quality and higher freight throughout on the 393 km Kanpur- Mughal Sarai section of the Eastern Dedicated Freight Corridor; and (b) develop institutional capacity of DFCCIL to build, maintain and operate the entire DFC network. OPS_TABLE_PDO_CURRENTPDO Summary Status of Financing Net Ln/Cr/Tf Approval Signing Effectiveness Closing Commitment Disbursed Undisbursed IBRD-83180 22-Apr-2014 11-Dec-2014 16-Jan-2015 31-Dec-2019 910.00 351.17 558.83 Policy Waiver(s) Does this restructuring trigger the need for any policy waiver(s)? No The World Bank Eastern Dedicated Freight Corridor - II (P131765) Note to Task Teams: End of system generated content, document is editable from here. I. PROJECT STATUS AND RATIONALE FOR RESTRUCTURING Current status of EDFC2 1. EDFC2 was approved on April 22, 2014. The Project is being implemented by DFCCIL. The project was restructured in June 2017 to reduce the IBRD Loan amount from USD 1100 million to USD 910 million to reflect the savings in project costs. 2. The EDFC2 consists of two components: (a) Design and construction of Kanpur-Mughalsarai rail corridor: Design, construction and commissioning of 393 km of double track electrified railway on the Kanpur- Mughalsarai section of EDFC, including related consultancy services; and (b) Institutional Development: Institutional development to assist DFCCIL and MOR to develop their capabilities to best utilize heavy haul freight system. 3. All major procurements have been completed and contractors appointed. Civil, structures, track and systems contracts for the Kanpur-Mughalsarai section are under implementation. On civil contracts the physical progress is about 62%, on the Signalling contract 18%, and on the electrical contract 38%. 4. The Implementation Progress rating of EDFC 2 is Moderately Unsatisfactory due to slow progress of work and low disbursements. 5. Social safeguard implementation of EDFC2 is rated as Moderately Satisfactory. Land acquisition is almost complete, with only about 4.6 km unavailable due to land related issues or hinderances. 6. Environment and Safety implementation of EDFC2 is rated as Moderately Satisfactory. Key issues relate to site management—managing storage and handling, safe passage for workers and other site users in open areas, and facilities for workers especially for the civil works contract. Rationale for Restructuring 7. This restructuring is for (a) cancellation of the Loan amount of United States Dollars 250 million; and (b) to extend the Loan closing date from 31 December 2019 to January 31, 2020 for the EDFC 2 project. This is based on the request dated December 24, 2019, from the Department of Economic Affairs, Ministry of Finance. The World Bank Eastern Dedicated Freight Corridor - II (P131765) II. DESCRIPTION OF PROPOSED CHANGES 8. Cancellation Proposed: There would be a cancellation of USD 250 million from the existing USD 910 million bringing the loan amount to USD 660 million. 9. Extension of Loan Closing date: Extend the closing date of the above captioned Loan by one month from 31 December 2019 to January 31, 2020. 10. Reallocation between Disbursement Categories: The loan allocation in Category 1 has reduced. 11. There are no changes proposed in all other sections as listed. 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 Loan Closing Date(s) ✔ Cancellations Proposed ✔ Reallocation between Disbursement Categories ✔ Implementing Agency ✔ DDO Status ✔ Project's Development Objectives ✔ Results Framework ✔ Components and Cost ✔ Disbursements Arrangements ✔ Disbursement Estimates ✔ Overall Risk Rating ✔ Safeguard Policies Triggered ✔ EA category ✔ Legal Covenants ✔ Institutional Arrangements ✔ Financial Management ✔ The World Bank Eastern Dedicated Freight Corridor - II (P131765) Procurement ✔ Implementation Schedule ✔ Other Change(s) ✔ Economic and Financial Analysis ✔ Technical Analysis ✔ Social Analysis ✔ Environmental Analysis ✔ IV. DETAILED CHANGE(S) OPS_DETAILEDCHANGES_LOANCLOSING_TABLE LOAN CLOSING DATE(S) Original Revised Proposed Proposed Deadline Ln/Cr/Tf Status Closing Closing(s) Closing for Withdrawal Applications IBRD-83180 Effective 31-Dec-2019 31-Jan-2020 31-May-2020 OPS_DETAILEDCHANGES_CANCELLATIONS_TABLE CANCELLATIONS Value Reason Current Cancellation New Ln/Cr/Tf Status Currency Date of for Amount Amount Amount Cancellation Cancellation BORROWER' S REQUEST IBRD- Disburs 910,000,000.0 250,000,000.0 660,000,000.0 USD 24-Dec-2019 FOR 83180-001 ing 0 0 0 COUNTRY REASONS OPS_DETAILEDCHANGES_REALLOCATION _TABLE REALLOCATION BETWEEN DISBURSEMENT CATEGORIES Financing % Current Allocation Actuals + Committed Proposed Allocation (Type Total) Current Proposed IBRD-83180-001 | Currency: USD iLap Category Sequence No: 1 Current Expenditure Category: Gds, Wk, CS, NCS, Trng Part 1 Proj The World Bank Eastern Dedicated Freight Corridor - II (P131765) 903,750,000.00 349,723,110.40 653,750,000.00 80.00 80 iLap Category Sequence No: 2 Current Expenditure Category: Gds, CS, NCS, Trng Part 2 of Proj 6,000,000.00 1,197,228.64 6,000,000.00 100.00 100.00 Total 909,750,000.00 350,920,339.04 659,750,000.00 .