The World Bank BAHIA ROAD REHABILITATION AND MAINTENANCE PROJECT - 2ND PHASE (P147272) REPORT NO.: RES47061 RESTRUCTURING PAPER ON A PROPOSED PROJECT RESTRUCTURING OF BAHIA ROAD REHABILITATION AND MAINTENANCE PROJECT - 2ND PHASE APPROVED ON JANUARY 29, 2016 TO STATE OF BAHIA TRANSPORT LATIN AMERICA AND CARIBBEAN Regional Vice President: Carlos Felipe Jaramillo Country Director: Paloma Anos Casero Regional Director: Franz R. Drees-Gross Practice Manager/Manager: Nicolas Peltier-Thiberge Task Team Leader(s): Carlos Bellas Lamas The World Bank BAHIA ROAD REHABILITATION AND MAINTENANCE PROJECT - 2ND PHASE (P147272) ABBREVIATIONS AND ACRONYMS CREMA contratos de reabilitação e manutenção (rehabilitation and maintenance contracts) DBM design-build-maintain EIB European Investment Bank IBRD International Bank for Reconstruction and Development GRS grievance redress system PAD Project Appraisal Document PDO Project Development Objective SEINFRA Secretaria de Infraestrutura da Bahia (Bahia State Secretariat of Infrastructure) SIT Superintendência de Infraestrutura de Transportes (Superintendency of Transport Infrastructure) The World Bank BAHIA ROAD REHABILITATION AND MAINTENANCE PROJECT - 2ND PHASE (P147272) BASIC DATA Product Information Project ID Financing Instrument P147272 Investment Project Financing Original EA Category Current EA Category Partial Assessment (B) Partial Assessment (B) Approval Date Current Closing Date 29-Jan-2016 30-Jun-2022 Organizations Borrower Responsible Agency State of Bahia Infrastructure Secretariat of State of Bahia Project Development Objective (PDO) Original PDO The Project Development Objective is to enhance, in a sustainable fashion, road accessibility and safety in selected regions of the State of Bahia territory. OPS_TABLE_PDO_CURRENTPDO Summary Status of Financing (US$, Millions) Net Ln/Cr/Tf Approval Signing Effectiveness Closing Commitment Disbursed Undisbursed IBRD-85800 29-Jan-2016 31-May-2016 15-Jul-2016 30-Jun-2022 200.00 149.53 50.47 Policy Waiver(s) Does this restructuring trigger the need for any policy waiver(s)? No The World Bank BAHIA ROAD REHABILITATION AND MAINTENANCE PROJECT - 2ND PHASE (P147272) I. PROJECT STATUS AND RATIONALE FOR RESTRUCTURING A. Project Status 1. Project background. The Project is financed by a US$200 million loan from the International Bank for Reconstruction and Development (IBRD) and US$100 million in counterpart funding. a. The Project Development Objective is to enhance, in a sustainable fashion, road accessibility and safety in selected regions of the State of Bahia territory. The Project has five components: (a) Component 1: Institutional Strengthening (total estimated costs US$18 million), which is focused on supporting the institutional capacity of the Bahia State Secretariat of Infrastructure (Secretaria de Infraestrutura da Bahia, SEINFRA), with a particular focus on the Superintendency of Transport Infrastructure (Superintendência de Infraestrutura de Transportes, SIT); (b) Component 2: Performance-based State Highway Rehabilitation and Maintenance (total estimated costs, US$132.5 million IBRD loan plus US$100 million in counterpart funding) to perform works of road rehabilitation and maintenance; (c) Component 3: Feeder Road Improvement (total estimated costs US$30 million) to support the accessibility and all-season transitability of rural areas in the State of Bahia; (d) Component 4: Road Safety (total estimated costs US$15 million) to improve selected corridors and reduce the number of fatalities and serious injuries; and (e) Component 5: Project Management (total estimated costs US$4 million). b. The Project was restructured once, on January 9, 2020 (a) to extend the loan closing date from June 30, 2020, to June 30, 2022 (24 months);1 and (b) to reallocate loan proceeds between the following categories: (i) US$20 million from Component 3 (Feeder Road Improvement) with a cost underrun to Component 2 (Performance- based State Highway Rehabilitation and Maintenance) with a cost overrun; and (ii) US$13 million from the unallocated amount to Component 2. 2. Current status. The overall implementation progress is currently rated as Moderately Satisfactory, and the likelihood of achieving the Project Development Objective (PDO) is rated Satisfactory. a. The main intermediate outcomes under Component 1 (rated Satisfactory) have already been achieved. They include the following: the State Infrastructure Road Fund has been established, SEINFRA/SIT’s Pavement Management System is under operational tests (target: operationalized), and a draft “internal regiment” has been approved for establishing a business model for SEINFRA/SIT. 1 The Project was negotiated and agreed with the closing date of June 30, 2022, but at loan signing the loan closing date was set to June 30, 2020, the reason being that the Senate resolution #26, dated April 27, 2016, authorizing the loan was issued with the erroneous implementation closing date of June 30, 2020. The restructuring corrected the closing date in the loan agreement and made it consistent with the Board-approved closing date in the Project Appraisal Document. The World Bank BAHIA ROAD REHABILITATION AND MAINTENANCE PROJECT - 2ND PHASE (P147272) b. The Project has rehabilitated 2,710 kilometers (km) of CREMA (contratos de reabilitação e manutenção, rehabilitation and maintenance contracts) roads against the targeted 2,370 km under Component 2 and is expected to rehabilitate 3,574 km by June 2022 in total, well above the original expected length. The Project has successfully completed Groups I, II, III, and V of civil works contracts under Component 2 and is implementing civil works for Groups VI and VII contracted in January 2021. An additional Group VIII and a design-build-maintain (DBM) pilot will be awarded as soon as this restructuring is approved. There are no issues with these contracts. On the other hand, the CREMA Group IV has been paralyzed since 2019, when the contractor initiated a litigation process against SEINFRA. SEINFRA is moving forward with the necessary steps to terminate the contract and to finish the stalled rehabilitation works under a new contract financed with counterpart funds as part of the Project. The table in annex 1 details the total length of the CREMA roads to be rehabilitated by the end of the Project by group and their status. c. Regarding Component 3, the works are advancing with 615 critical spots eliminated against the target of 900 (as of September 15), and a total of 1,300 spots are expected to be eliminated by the end of the Project. The Project activities have been slightly delayed for a few reasons. First, there was a delay of almost a year in the process of bidding the works. After the conclusion of the contracting procedures, the activities were affected by the COVID-19 pandemic in Brazil. Efforts such as sanitary barriers between municipalities and the closing of nonessential services caused many difficulties that led contracted companies to fall behind the schedule. In addition to the pandemic, the municipal elections at the end of 2020 also directly affected the progress of the civil works since the pace of the construction is not homogeneous on the targeted roads and is subject to local political influences. These factors caused delays and slowdowns in the works, resulting in low disbursements. However, implementation is catching up and it is expected that more than 1,300 critical works will be completed by the closing date under the Project, exceeding the targeted 900 works. d. Component 4 has established a State Committee for Road Safety and made significant progress in the definition and functionality of the integrated traffic accident database and carried out the executive pilot projects to eliminate 100 critical spots on selected corridors to improve road safety. Still, civil works under Component 4 are delayed, but expected to reach targets by June 2022 as the pilots are being contracted in October 2021. e. Regarding safeguards, there were claims filed in both the Project’s grievance redress mechanism (GRM) and the Bank’s grievance redress system (GRS) about a COVID-19 situation allegedly caused by the contractor’s negligence in one road works contract financed by the counterpart funds (in BA-290 road), which led to the downgrading of the safeguards rating. The Project Implementation Unit prepared a fully updated COVID-19 response and management plan in collaboration with the Bank Team, and the contractor’s compliance with Bank policies and safeguards instruments has since been restored. Additional COVID-19 prevention and response efforts were included in contractors’ Environmental and Social Management Plans. The situation is now considered resolved and the GRM and GRS claims have been closed. Lessons from this situation were also widely disseminated. The World Bank BAHIA ROAD REHABILITATION AND MAINTENANCE PROJECT - 2ND PHASE (P147272) 3. Disbursement: The Project has delivered almost 80 percent of the targeted outputs but disbursed only 74.8 percent (US$149.53 million of the total US$200 million) because the Brazilian real has depreciated 35 percent against the US dollar in the past few years since Board approval. B. Rationale for Restructuring 4. Impact of the ongoing contract litigation and COVID-19. Some Project activities have been delayed under Components 2 and 3. They include mainly the civil works performed by one contractor in the CREMA Group IV under Component 2 that have been stalled since 2019 due to ongoing contract litigation. They also include the spots improvement of rural roads under Component 3 that suffered from implementation delays due to the impact of the COVID-19 pandemic. In contrast to other parts of the world, Brazil had struggled against the pandemic trend for longer, reaching the peak of COVID-19 cases as late as in March/April 2021. On September 8, Brazil has the world’s third-largest number of confirmed COVID-19 cases (20.93 million) and deaths (584,000, i.e., 279 per 100,000 people). Bahia suffered with more than 26,000 deaths and 1.2 million COVID-19 cases, and this has affected the State budget. COVID-19 hit the economy and depleted the State of Bahia Government’s budget resources due to the need to spend heavily on public health. Under these conditions and considering the devaluation of the Brazilian real against the US dollar, it became increasingly difficult for Bahia State to provide the original counterpart funding target under the Project. Thus, the Bahia government requested the Federal Brazilian Ministry of Economy be the Guarantor for approval to reduce the amount of counterpart finance from US$100 million to US$50 million through a restructuring of the Project. 5. Devaluation of the Brazilian real. On the other hand, the Project has more IBRD loan financing available as the devaluation of the Brazilian real has increased the IBRD loan amount in real terms. More available IBRD financing will allow to achieve all the intermediate indicators by the current closing date even though the total nominal Project financing (including the IBRD loan and counterpart funds) will go down due to the reduction of the counterpart funding. The strong devaluation in the Brazilian real by about 35 percent since the Board approval of the Project has allowed the Project to expand the scope of Component 2 without reducing the outputs under the other components. 6. At appraisal, this Project was supposed to be complemented by a US$100 million loan from the European Investment Bank to finance CREMA roads (Component 2), but the State and EIB did not reach an agreement to move forward with the financing. In recent years, the Bahia government has used the opportunity of the strong devaluation of the Brazilian real to rehabilitate the CREMA roads expected to be previously financed by the EIB under the Bahia Road Rehabilitation and Maintenance Project with both IBRD and counterpart financing.2 Due to the impact of the COVID-19, the Bahia government wants to reallocate more IBRD financing to Component 2 to compensate for the reduction of counterpart financing and the non-materialization of the EIB loan. As a result of the extension of the closing date to June 2022 during the previous restructuring and based on the real devaluation, some of the Project roads that were initially to be financed by the EIB have been incorporated already as new CREMA 2The annex 1 table shows the Core B roads that were to be financed by the EIB loan. All of them are now being financed by either the IBRD loan or the counterpart funds under the Project. The original scope of the Project related to the Core A roads. The World Bank BAHIA ROAD REHABILITATION AND MAINTENANCE PROJECT - 2ND PHASE (P147272) roads into the Project and are being rehabilitated since 2019. Still, there is a need to increase the Component 2 allocation to finalize all the CREMA roads by the end of the Project in June 2022. The Bahia government is not willing to cancel any IBRD funds or extend the Project’s closing date due to the budget constraints posed by the pandemic. 7. This devaluation has opened an opportunity to contract 1,200 km of additional roads as part of Groups VI, VII, and VIII, the private-public partnership (BA-052), and the DBM pilot, which are proposed to be funded by the IBRD and counterpart financing, increasing the rehabilitated CREMA roads to an estimated 3,574 km against the targeted 2,370 km. The additional CREMA roads connect regions of the State in need of economic development to market centers. The new group of CREMA roads under Component 2 are ready to be rehabilitated as soon as the proposed restructuring is approved. The two latter activities are innovations based on the CREMA roads model, one with the concession of the BA-052 road under the private-public partnership concession scheme (funded through the counterpart financing) and the Design-Build-Maintain (DBM) contract for a pilot CREMA road with integrated project preparation. Those two innovations would be key in preparing potential road-based projects as these output and performance-based road contracts are the way the World Bank is preparing the road rehabilitation and construction projects elsewhere, and Brazil needs to catch up with the new ideas after having been a key player in the CREMA contracts in the past.3 8. Changes in the Results Framework. Below are detailed explanations of the changes to the result framework. a. Component 1. Two intermediate indicators have been changed: i. Establishment of a business model for SEINFRA/SIT. SEINFRA was expected to prepare a simplified methodology to diagnose SEINFRA/SIT delivery of works, but this will be integrated into a larger business model analysis for the entire Government of Bahia outside the project, following the expected changes in labor the pandemic has brought (remote work, hybrid models, etc.). The project result framework will measure one of the interim targets (Hours of Capacity Building for improving the business model for SEINFRA/SIT) to establish the business model but lower the target. The original 3,000 staff-days training is too large for a project affected by two years of the pandemic, with its barriers to in-person training, so the target is proposed to be changed to 3,000 staff hours (375 staff-days). ii. Number of yearly meetings conducted by the State Logistics Committee. In 2019, as reported in the aide-memoires, it had become clear that most State logistics discussions occurred within the Bahia Industries’ Federation (Federação das Indústrias da Bahia), not in the State Logistic Committee. The federation, a private sector forum, serves the same purpose that the State Logistic Committee was expected to perform when designing the Project. The State government has a permanent representative of the SEINFRA in this private forum. The purpose of restructuring is to avoid duplicating the existing platform and measure the meetings of the federation. b. Component 4. While the Project’s road safety activities are being implemented and are expected to be completed on time, the scope of measuring road safety improvements requires correction because of a baseline mistake during preparation. Regarding “Reduction in fatalities and serious injuries on the selected 3 The estimated number of CREMA roads rehabilitated under the Project is listed in a table in annex 1. The World Bank BAHIA ROAD REHABILITATION AND MAINTENANCE PROJECT - 2ND PHASE (P147272) road safety corridors,” the baseline value confirmation is necessary. The target will remain the same in relation to the confirmed baseline, in line with the expected reduction in fatalities and serious injuries estimated by the International Road Assessment Programme, but the methodology is also revised to measure the outcomes attributed to the Project activities—the road safety corridor works. The issue is that the 2013 baseline that was included in the original Project Appraisal Document (PAD) was an estimate as no other value could be confirmed by SEINFRA at appraisal. The proposed changes will measure the variation in the number of fatalities and serious injuries against the revised baseline and in comparison, (difference in differences) with the overall rate across the road network in Bahia. 9. The Government of Bahia requested the restructuring in two ofícios (official letters), dated February 5, 2021, and June 6, 2021, to reallocate funds between the components and include the changes in the Result Framework. II. DESCRIPTION OF PROPOSED CHANGES A. Results Framework 10. The restructuring proposes the following changes (see the Results Framework section for details). i. PDO indicator “Reduction in fatalities and serious injuries on the selected road safety corridors (percentage).” The target will remain the same, but the original baseline value of 50 in the PAD from 2013 is changed to 110 from 2015. In addition, it is proposed to delete the target (“reduction”) from the indicator name based on the good practices and change the methodology to compare the pilot projects with the overall results in the State road network. ii. Intermediate outcome indicator “Establishment of a business model for SEINFRA/SIT.” The original indicator was to create a business model that would look at how to improve SEINFRA’s performance (“Establishment of a business model for SEINFRA/SIT” with the target “New business model implemented”). The Project included intermediate targets, preparing a modernization plan, and a minimum of 3,000 staff days of training for the SEINFRA/SIT staff. The restructuring proposes to revise the name of the indicator to “Hours of capacity building for improving the business model for SEINFRA/SIT (number)” and to revise the target to 3,000 hours (375 staff-days) of training to SEINFRA/SIT staff. The Government of Bahia will still deliver the output with their own financing. iii. Intermediate outcome indicator “Number of yearly meetings conducted by the State Logistic Committee.” As agreed between the Bank and Borrower in 2019, the original indicator “Number of yearly meetings conducted by the State Logistic Committee” is proposed to be replaced with “Number of yearly meetings conducted by the Infrastructure Committee of the Federation of Industries of the State of Bahia”. The remain remains the same (two per year). iv. Added corporate result indicator. A new corporate result indicator to measure the number of direct and indirect beneficiaries of the rehabilitated CREMA roads, the rural works, and the road safety corridors has been integrated into the Results Framework. This indicator will measure the total number of citizens who see their access to jobs, education, and health services improved as a result of the activities supported by the Project. The World Bank BAHIA ROAD REHABILITATION AND MAINTENANCE PROJECT - 2ND PHASE (P147272) B. Components and Cost, as well as Reallocation between Disbursement Categories 11. Changes in components and costs. Based on the rationale discussed above, the total allocation to Component 2 will increase from the original US$199.5 million to US$206.5 million because of the reduction of US$50 million of the counterpart financing and increased allocation of IBRD financing to Component 2 allocation. The allocation of IBRD financing to other components will decrease, and the unallocated amount will be reduced from $US13 million to US$0 million (see pages 13 and 14 for details). 12. The proposed changes in Component costs are described below: i. Reallocation of US$11 million from Component 1 to Component 2. Based on an agreement with the World Bank team in the April 2021 mission, it was decided that some activities that are part of the Component 1 (Institutional Strengthening) will no longer be developed under the Project. They will be removed from the Procurement Plan of the Project and some of them developed with the government’s own funds outside of the SEINFRA/SIT scope as they will affect the whole public administration of Bahia rather than the SEINFRA. It should be noted that dropping these activities does not impact negatively the expected outcomes of the Project nor any target for the Project indicators. ii. Reallocation of US$5 million from Component 3 to Component 2. As the current activities won’t need the full amount allocated to this component, there are savings of undisbursed funds and there is little time to implement other activities on the feeder roads (longer time for implementation), SEINFRA has requested the reallocation of IBRD loan resources from Component 3 to 2. iii. Reallocation of US$6 million from Component 4 to Component 2. Road safety actions have a projected disbursement of approximately US$9 million for both ongoing and future contracts, leaving US$6 million of undisbursed funds. The savings are solely due to the appreciation of the dollar against the real, causing advantageous financial leeway for the Project since the Project activities have not been reduced. iv. Reallocation of US$2 million from Component 5 to Component 2. The Project management component finances the Project Coordination Unit’s operating and consulting costs for Project monitoring, supervision, and evaluation. It also funds the necessary operating expenses such as training, daily payments, and transportation, in addition to other items related to the Project. As a result of the strong dollar appreciation, it is estimated that the projected costs for this component (US$2 million) amount to only about 50 percent of the original allocation to this component (US$4 million). v. US$50 million reduction of the counterpart funding under Component 2. The counterpart funding is reduced from US$100 million to US$50 million under Component 2. There is no counterpart funding in other components. 13. Tables 1 and 2 show the details of the proposed allocation of financing by component, including both IBRD and counterpart funding. Table 1 compares the proposed total costs with the original allocations in the PAD. Table 2 shows the changes proposed in this restructuring compared to the current allocation of financing by components after the 2020 restructuring. Table 1. Summary of Reallocation between Components from the Original PAD The World Bank BAHIA ROAD REHABILITATION AND MAINTENANCE PROJECT - 2ND PHASE (P147272) Current total costs Proposed total costs (US$ Current component name Action (US$ million) million) Component 1: Institutional 18.00 Revised 7.00 Strengthening Component 2: Performance-based State 199.50 Revised 206.50 Highway Rehabilitation and Maintenance Component 3: Feeder Road 50.00 Revised 25.00 Improvement Component 4: Road Safety 15.00 Revised 9.00 Component 5: Project 4.00 Revised 2.00 Management Marked for Unallocated 13.00 0.00 deletion Front End Fee 0.50 No change 0.50 Total 300.00 250.00 Table 2. Summary of Proposed Changes to IBRD Loan and Counterpart Funding Related to the Current Estimates after the Previous Restructuring Current costs (US$ million) Revised Proposed changes (US$ proposed Component IRBD Counterpart million) costs (US$ million) 1 18.00 - 11.00 Reduction 7.00 132.50 - 24.00 Increase 156.50 2 - 100.00 50.00 Cancellation 50.00 3 30.00 - 5.00 Reduction 25.00 4 15.00 - 6.00 Reduction 9.00 5 4.00 - 2.00 Reduction 2.00 Front-end fee 0.50 0.50 No Change 0.50 Subtotal 200.00 100.00 50.00 Reduction Total (US$ million) 300.00 250.00 14. The disbursement estimates of the IBRD loan do not require revision because they were updated during the December 2020 restructuring. SEINFRA intends to disburse the full amount of the lBRD loan by June 2022. The World Bank BAHIA ROAD REHABILITATION AND MAINTENANCE PROJECT - 2ND PHASE (P147272) III. SUMMARY OF CHANGES Changed Not Changed Results Framework ✔ Components and Cost ✔ Reallocation between Disbursement Categories ✔ Implementing Agency ✔ DDO Status ✔ Project's Development Objectives ✔ PBCs ✔ Loan Closing Date(s) ✔ Cancellations Proposed ✔ Disbursements Arrangements ✔ 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) The World Bank BAHIA ROAD REHABILITATION AND MAINTENANCE PROJECT - 2ND PHASE (P147272) OPS_DETAILEDCHANGES_COMPONENTS_TABLE COMPONENTS Current Current Proposed Proposed Cost Action Component Name Component Name Cost (US$M) (US$M) Component 1: : Institutional Component 1: : Institutional 18.00 Revised 7.00 Strengthening Strengthening Component 2: Performance- Component 2: Performance- based State Highway based State Highway 199.50 Revised 206.50 Rehabilitation and Rehabilitation and Maintenance Maintenance Component 3: Feeder Road Component 3: Feeder Road 50.00 Revised 25.00 Improvement Improvement Component 4: Road Safety 15.00 Revised Component 4: Road Safety 9.00 Component 5: Project Component 5: Project 4.00 Revised 2.00 Management Management Marked for Unallocated 13.00 Unallocated 0.00 Deletion Front End Fee 0.50 Front End Fee 0.50 TOTAL 300.00 250.00 OPS_DETAILEDCHANGES_REALLOCATION _TABLE REALLOCATION BETWEEN DISBURSEMENT CATEGORIES Financing % Current Allocation Actuals + Committed Proposed Allocation (Type Total) Current Proposed IBRD-85800-001 | Currency: USD iLap Category Sequence No: 1 Current Expenditure Category: CW,GO,CS,NCS&TR - Part 1 18,000,000.00 3,684,879.26 7,000,000.00 100.00 100.00 iLap Category Sequence No: 2 Current Expenditure Category: CW & CS - Part 2.1 132,500,000.00 115,769,003.80 156,500,000.00 100.00 100.00 iLap Category Sequence No: 3 Current Expenditure Category: CW,GO,CS&NCS - Part 3 The World Bank BAHIA ROAD REHABILITATION AND MAINTENANCE PROJECT - 2ND PHASE (P147272) 30,000,000.00 6,516,634.27 25,000,000.00 100.00 100.00 iLap Category Sequence No: 4 Current Expenditure Category: CW,GO,CS,NCS&TR - Part 4 15,000,000.00 1,392,143.57 9,000,000.00 100.00 100.00 iLap Category Sequence No: 5 Current Expenditure Category: CS, TR & OP - Part 5 4,000,000.00 1,669,544.01 2,000,000.00 100.00 100.00 iLap Category Sequence No: 6 Current Expenditure Category: UNALLOCATED 0.00 0.00 0.00 Total 199,500,000.00 129,032,204.91 199,500,000.00 . The World Bank BAHIA ROAD REHABILITATION AND MAINTENANCE PROJECT - 2ND PHASE (P147272) . Results framework COUNTRY: Brazil BAHIA ROAD REHABILITATION AND MAINTENANCE PROJECT - 2ND PHASE Project Development Objectives(s) The Project Development Objective is to enhance, in a sustainable fashion, road accessibility and safety in selected regions of the State of Bahia territory. Project Development Objective Indicators by Objectives/ Outcomes RESULT_FRAME_TBL_PDO Indicator Name PBC Baseline End Target To enhance, in a sustainable fashion, road accessibility in selected regions of the State of Bahia State paved road network under performance-based 3.00 25.00 rehabilitation and maintenance contracts (Percentage) Share of rural population with access to an all-season road 45.00 60.00 (Percentage) Number of rural people with access to an all-season road 490,000.00 1,315,000.00 (Number) People with enhanced access to transportation services (CRI, 0.00 6,183,000.00 Number) Rationale: A new Corporate Indicator to measure the number of direct and indirect beneficiaries of the rehabilitated CREMA roads, the Action: This indicator is New feeder roads' works, and the road safety corridors has been integrated into the Result Framework. People with enhanced access to transportation services - 0.00 6,183,000.00 Roads/Highways (CRI, Number) Action: This indicator is New To enhance, in a sustainable fashion, safety in selected regions of the State of Bahia The World Bank BAHIA ROAD REHABILITATION AND MAINTENANCE PROJECT - 2ND PHASE (P147272) RESULT_FRAME_TBL_PDO Indicator Name PBC Baseline End Target Change in fatalities and serious injuries on the selected road 0.00 30.00 safety corridors (Percentage) Rationale: The target will remain the same, but there is a need to correct the baseline in the PAD. The absolute baseline value in the PAD from 2013 was 50, including fatalities and serious injuries. The issue is that the 2013 baseline was an estimate because Action: This indicator has been Revised no other baseline value could be obtained and confirmed at Appraisal. The proposed baseline value for the two targeted project corridors is 110 from 2015, a year before the Board Approval, and is confirmed. In addition, it is proposed to delete the target (“reduction”) from the indicator name based on the good practices. PDO Table SPACE Intermediate Results Indicators by Components RESULT_FRAME_TBL_IO Indicator Name PBC Baseline End Target Component 1: : Institutional Strengthening Establishment of the State Infrastructure Road Fund (Text) Fund created but not operational Road fund established and working Operationalization of SEINFRA/SIT’s Pavement Management System installed a pilot phase System operational System (Text) Hours of Capacity Building for improving the business model for 0.00 3,000.00 SEINFRA/SIT (Number) Rationale: The original indicator was to create a business model that would look at how to improve SEINFRA's performance (“Establishment of a business model for SEINFRA/SIT” with the target “New business model implemented”). The Project Action: This indicator has been Revised included intermediate targets, preparing a modernization plan and a minimum of 3000 staff days of training to staff in SEINFRA/SIT. The restructuring proposes to revise the name of the indicator to “Hours of Capacity Building for improving the business model for SEINFRA/SIT (Number)” and revise the target to 3000 hours (375 days) of training to staff in SEINFRA/SIT. The World Bank BAHIA ROAD REHABILITATION AND MAINTENANCE PROJECT - 2ND PHASE (P147272) RESULT_FRAME_TBL_IO Indicator Name PBC Baseline End Target Number of yearly meetings conducted by the Infrastructure 0.00 2.00 Committee on the Bahia Industries' Federation. (Number) Rationale: As agreed between the Bank and Borrower in 2019, the original indicator “Number of yearly meetings conducted by the State Logistic Committee” with the target of two is proposed to be replaced with “Number of yearly meetings conducted by the Infrastructure Committee of the Federation of Industries of the State of Bahia”(or Federacao das Industrias da Bahia) with the same target. In 2019, as reported in the aide memories, it had become clear that most States logistics discussions Action: This indicator has been Revised had actually happened within the "Federação das Industrias da Bahia". The Bahia Industries' Federation, a private sector forum, serves the same purpose that the State Logistics Committee was expected to serve at the time of designing the Project. The State Government has a permanent representative of the Secretariat of Infrastructure in this private forum. The purpose of the restructuring is to avoid duplicating the existing forum. Establishment of an appraisal tool to inform decision-making for Tool not available Tool available transport infrastructure investments (Text) Component 2: Performance-based State Highway Rehabilitation and Maintenance Roads rehabilitated, Rural (Kilometers) 0.00 2,370.00 Roads in good and fair condition as a share of total classified 70.00 80.00 roads (Percentage) Size of the total classified network (Kilometers) 10,900.00 10,900.00 Component 3: Feeder Road Improvement Cumulated number of critical spots eliminated (Number) 0.00 900.00 Cumulated number of municipalities where citizens engaged in 0.00 62.00 road investment definition and prioritization (Number) Component 4: Road Safety Establishment of a State Committee for road safety (Text) No Committee Committee established The World Bank BAHIA ROAD REHABILITATION AND MAINTENANCE PROJECT - 2ND PHASE (P147272) RESULT_FRAME_TBL_IO Indicator Name PBC Baseline End Target Elimination of physical critical spots for road safety on the 0.00 100.00 selected corridors (Percentage) Operationalization of integrated traffic accident database (Text) No integrated database Database in operation IO Table SPACE The World Bank BAHIA ROAD REHABILITATION AND MAINTENANCE PROJECT - 2ND PHASE (P147272) Annex 1. Bahia Road Rehabilitation and Maintenance Project—2nd Phase (P147272)—Division Into Lots and Road Groups of CREMA Roads— Component 2 SITUATION OF STEPS4 GROUP LOT HIGHWAY START-STRETCH END-STRETCH EXTENSIONS (km) THE GROUPS— CIVIL WORKS BA-052 BA-052 BR-116 83.43 BA-052 BA-052 IPIRÁ 53.02 CONTRACTED IN SINGLE BA-052 BA-052 BAIXA GRANDE 77.66 RESTORATION GROUP 0— LOT PORTO FELIZ (km PHASE 2nd BA-052 BA-052 244.96 PPP 5) BA-052(XXIQUE- TOTAL GRUPO BA-160 BA-160 87.53 0—PPP XIQUE) TOTAL GROUP 0 - PPP 546.60 BA-210 BA-210 BR-110 9.86 BA-210 BA-210 PAULO AFONSO 29.97 AC BARRAGEM BA-210 BA-210 84.78 ITAPARICA LOT 1 REHABILITATION BA-210 BA-210 RODELAS 26.4 COMPLETED; GROUP I BA-210 BA-210 BARRA TARRACHIL 22.8 ROUTINE BA-210 BA-210 ABARE 16.9 MAINTENANCE SUBTOTAL LOT 1 SUBTOTAL LOT 1 TOTAL GROUP I 1st - CORE A BA-210 BA-210 BR-116(Ac. Ibo) 92.84 LOT 2 BA-210 BA-210 CURAÇÁ 89.69 SUBTOTAL LOT 2 SUBTOTAL LOT 2 4 The Core A roads were the original scope of Component 2. The Core B roads are now being added to the Project Component 2 scope. The World Bank BAHIA ROAD REHABILITATION AND MAINTENANCE PROJECT - 2ND PHASE (P147272) TOTAL GROUP I 373.24 BA-161 BR-242 IGARITÉ 61.39 GROUP II LOT 1 BA-161 IGARITÉ BARRA 86.79 SUBTOTAL LOT 1 REHABILITATION SANTA MARIA DA BA-172 JABORANDI 43.02 COMPLETED; VITÓRIA ROUTINE LOT 2 SANTA MARIA DA MAINTENANCE BA-172 BR-242 (JAVI) 167.49 VITÓRIA SUBTOTAL LOT 2 210.51 TOTAL GROUP II 358.69 VITÓRIA DA BA-262 BRUMADO 126.77 CONQUISTA VITÓRIA DA LOT 1 BA-263 ITAMBÉ 51.78 CONQUISTA BA-148 BRUMADO LIVRAMENTO 65.3 REHABILITATION SUBTOTAL LOT 1 243.85 COMPLETED; GROUP III BA-152 LIVRAMENTO BA-156 93.95 ROUTINE MAINTENANCE BA-156 BA-152 (CATURAMA) BR-430 (IGAPORÃ) 82.88 LOT 2 BA-156 BA-152 BR-242 129.48 SUBTOTAL LOT 2 306.31 TOTAL GROUP III 550.16 BA- BA-459 BA-460(PLACAS) 454(p/FORMOSA 92.29 DO RIO PRETO) CREMA BA-454(p/FORMOSA BR-242 (ANEL DA CONTRACTED, IN BA-459 64.92 BAHIA II - LOT 1 DO RIO PRETO) SOJA) MOBILIZATION REST OF BR-242(LUIS PHASE; BA-459(PLACAS)- FORMER BA-460 EDUARDO 55.52 COUNTERPART DIVISA BA/TO GROUP IV MAGALHÃES) RESOURCES SUBTOTAL LOT 1 212.73 BR-020 (RODA LOT 2 BA-463 SÃO DESIDÉRIO 125.2 VELHA) The World Bank BAHIA ROAD REHABILITATION AND MAINTENANCE PROJECT - 2ND PHASE (P147272) SUBTOTAL LOT 2 125.2 TOTAL GROUP IV 337.93 TOTAL CORE A (INCLUSIVE OF THE PPP) 2166.62 BA-046 ITABERABA IAÇU 30.00 IAÇU-MARCIONÍLIO ENTR. BA-142 BA-046/245 SOUZA-ITAETÊ 145.00 LOT 1 ENTR.BR-242- ENTR.BR- REHABILITATION BA-142 MUCUGE-B. ESTIVA 407(SUSSUARANA) 237.85 BEING SUBTOTAL LOT 1 412.85 COMPLETED; GROUP V IBOTIRAMA- BOM JESUS DA ROUTINE BA-160 PARATINGA LAPA 137.30 MAINTENANCE LOT 2 BR-242-BONINAL- PHASE BA-148 RIO DE CONTAS 195.17 ABAÍRA SUBTOTAL LOT 2 332.47 TOTAL GROUP V 616.16 REHABILITATION ENT.BR- BEING CAEM-ENTR.BR- LOT BA-131 407(SR.BONFIM)- 97.90 COMPLETED; GROUP VI 324 (A) SAUDE ROUTINE MAINTENANCE PHASE TOTAL GROUP VI 97.90 LOT REHABILITATION GROUP VII BA-001 VALENÇA ITACARÉ 121.00 STARTED TOTAL GROUP VII 121.00 3rd - CORE B BA-233 IPIRÁ ITABERABA 76.79 CONTRACTED; IN LOT BA-052-MACAJUBA- GROUP VIII MOBILIZATION BA-130 RUI BARBOSA BR-242(ZUCA) 80.74 PHASE TOTAL GROUP VIII 157.52 The World Bank BAHIA ROAD REHABILITATION AND MAINTENANCE PROJECT - 2ND PHASE (P147272) NCB BIDDING BA-001 NAZARÉ VALENÇA 34.72 NOTICE TO BE LOT GROUP IX ENTR BA 656 LAUNCHED IN BA-001 ILHÉUS 80.09 (TREMENBÉ) SEPTEMBER 2021 TOTAL GROUP IX TOTAL GROUP IX 114.81 TEIXEIRA DE REHABILITATION CREMA LOT BA-290 ITANHEM 92.20 STARTED; FREITAS BAHIA I COUNTERPART RESOURCES TOTAL GROUP VIII 92.20 DBM PILOT Under discussion. Estimated length at least 200 km. 207.79 TOTAL GROUP B 1407.38 OVERALL TOTAL LENGTH TO BE REHABILITATED OF CREMA ROADS 3,574 km