The World Bank Southern Africa Trade and Transport Facilitation Project (P120370) REPORT NO.: RES32211 RESTRUCTURING PAPER ON A PROPOSED PROJECT RESTRUCTURING OF SOUTHERN AFRICA TRADE AND TRANSPORT FACILITATION PROJECT APPROVED ON MAY 21, 2013 TO DAR CORRIDOR COMMITTEE TRANSPORT GLOBAL PRACTICE AFRICA REGION Regional Vice President: Hafez M. H. Ghanem Country Director: Bella Bird Senior Global Practice Director: Guangzhe Chen Practice Manager/Manager: Benedict Eijbergen Task Team Leader: Gylfi Palsson The World Bank Southern Africa Trade and Transport Facilitation Project (P120370) ABBREVIATIONS AND ACRONYMS AIDS Acquired Immunodeficiency Syndrome CD Country Director CPMS Corridor Performance Monitoring Services DCC Dar Corridor Committee EMS Emergency Medical Service HIV Human Immunodeficiency Virus IDA International Development Association IRU International Road Union MoHSW Ministry of Health and Social Welfare MoWTC Ministry of Works, Transport and Communications NSC North-South Corridor OSBP One-Stop Border Post OSIS One-Stop Inspection Station PAD Project Appraisal Document PDO Project Development Objective SATTFP Southern Africa Trade and Transport Facilitation Project SDR Special Drawing Right SOP Series of Projects ToR Terms of Reference The World Bank Southern Africa Trade and Transport Facilitation Project (P120370) 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 P120370 Investment Project Financing Original EA Category Current EA Category Partial Assessment (B) Partial Assessment (B) Approval Date Current Closing Date 21-May-2013 31-Dec-2018 Organizations Borrower Responsible Agency Dar Corridor Committee TANROADS Project Development Objective (PDO) Original PDO The project development objective of the Southern Africa Trade and Transport Facilitation Program - Phase 1 (APL-1) is to facilitate the movement of goods and people along the Dar Corridor in Tanzania, whilst supporting improvements in the services for HIV/AIDS and road safety. The objective of the Southern Africa Trade and Transport Facilitation Program is to facilitate the movement of goods and people along the north-south corridor (NSC), whilst supporting improvement in the services for Human Immunodeficiency Virus/Acquired Immunodeficiency Syndrome (HIV/AIDS) and road safety. OPS_TABLE_PDO_CURRENTPDO Summary Status of Financing Net Ln/Cr/Tf Approval Signing Effectiveness Closing Commitment Disbursed Undisbursed IDA-52480 21-May-2013 30-Jul-2013 26-Nov-2013 31-Dec-2018 210.00 140.16 52.72 IDA-H8440 21-May-2013 30-Jul-2013 26-Nov-2013 31-Dec-2018 3.00 2.89 0 The World Bank Southern Africa Trade and Transport Facilitation Project (P120370) Policy Waiver(s) Does this restructuring trigger the need for any policy waiver(s)? No Note to Task Teams: End of system generated content, document is editable from here. I. PROJECT STATUS AND RATIONALE FOR RESTRUCTURING Note: Formatting instructions for this document. A. Header 1. [All sub-sections must have a continuous paragraph numbering for the entire main text or for each annex per institutional standard.] (a) This is the sub-para numbering for this level. This is the sub-para numbering for this level. This is the sub-para numbering for this level. (i) This is the sub-para numbering for this level. 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PROJECT STATUS The World Bank Southern Africa Trade and Transport Facilitation Project (P120370) The First Phase of the Southern Africa Trade and Transport Facilitation Project (SATTFP APL1, P120370) was approved by the Board of Executive Directors of the World Bank on May 21, 2013 and was declared effective on November 26, 2013. The current closing date is December 31, 2018. The financing amounts to Special Drawing Rights (SDR) 138.7 million (at current exchange rates1 equivalent to US$191.2 million) in the form of an International Development Association (IDA) credit to the United Republic of Tanzania (Credit IDA-52480). In parallel, a regional IDA grant of SDR 2.0 million (Credit IDA-H8440) was provided to build capacity and support necessary technical assistance for the Dar Corridor Committee (DCC). The project development objective is to facilitate the movement of goods and people along the Dar es Salaam Corridor in Tanzania, whilst supporting improvements in the services for HIV/AIDS and road safety. This is being realized through the following components: Component 1: Improvement of Physical Infrastructure (original allocation US$ 185 million). The first component comprises three sub-components involving civil works on the corridor: (a) The rehabilitation and upgrading of the 138.7km2 Mafinga - Igawa road section. Significant progress has been achieved for this subcomponent that has been divided in two lots. The execution of the two major works contracts along the Mafinga – Igawa road section remain on schedule. Cumulative physical progress through October 2018 on Lot 1 (Mafinga – Nyigo section) has reached 98.84 percent, against planned progress of 98.02 percent. Cumulative progress through October 2018 on Lot 2 (Nyingo – Igawa section) has reached 98.60 percent, against planned progress of 100 percent. These contracts can be expected to be completed at or about at the end of 2018, following which a 12-month default liability period commences. (b) The improvement of infrastructure and operations at the Kasumulu/Songwe border crossing on the Tanzania/Malawi border. This component proposes to introduce enhancements at the Kasumulu/Songwe crossing to allow potential operation as a One-Stop Border Post (OSBP).3 The proposed intervention and provisional cost estimate exceeds the available budget allocation by an order of magnitude, and TANROADS reviewed the design and plan to phase implementation to reduce the scale of the proposed OSBP development to one commensurate with need and the allocated budget. The completion of the planned construction works is not possible now, with all other factors remaining unchanged, until late 2019 or early 2020. (c) The construction of a one-stop inspection station (OSIS) at Vigwaza and at up to three other locations in Tanzania. This sub-component involves the construction of a consolidated rest stop, weigh bridge, EMS station, and police checkpoint at Vigwaza to serve the transit and long-distance traffic on both the Central and Dar es Salaam Corridors. The tender for the works for revised design has started, but the construction period is projected to extend some 12 months beyond the current closing date. Component 2: Mitigation of social costs (original allocation US$16 million). The second component has two sub- components: (a) Road Safety Initiatives on the Corridor. There are three parts to this subcomponent: 1 SDR 1: US$ 1.382 as on November 15, 2018. 2 The length of section was extended by 0.6km from the 137.9km in the PAD, reflecting the request from TANROADS to include the 0.6km to extend lot 2 to Igawa town in the addendum. 3 This OSBP is being developed in conjunction with Malawi, with financial support in the latter case from the SATTFP-SOP2, and parallel support from TMEA to establish Integrated Border Management. The World Bank Southern Africa Trade and Transport Facilitation Project (P120370)  Accident Blackspots. A comprehensive Road Safety Audit identified over 30 key accidents ‘black spots’ along the Tanzanian portion of the Dar corridor, and prepared the preliminary design to address them. The works contracts were tendered in five packages but failed to attract any compliant bids. TANROADS feedback was that the packages, designed to encourage local contractors, were too small to attract interest. TANROADS has now repackaged the proposed works into two larger packages, and re-tendered. However, the failed procurement means these works are unlikely to be completed by the current closing date of the project and are likely to continue until second part of 2019.  Sensitization of Road Safety along highly populated centers from Dar es Salaam to Malawi and Zambia borders. The Terms of Reference (ToR) has been prepared by the MoWTC, with the objective of creating and promoting positive behavior changes with respect to traffic safety in the road users and local communities along the entire road corridor through awareness raising campaigns. Procurement of a consultant to undertake this assignment is ongoing, with completion expected by January 2019.  The Piloting of an Emergency Medical Service (EMS) and Trauma Care Pilot on the Dar-Morogoro road section. It has been agreed that the EMS pilot will involve 7 sites, including 3 hospitals and 4 health centers between Dar es Salaam and Morogoro. The provisional estimate of the cost of the pilot is US$5.6 million, of which only the capital and set-up costs (US$4.3 million) was to be covered from the IDA credit, while the operating costs are being covered by the respective ministries and agencies. Procurement of the ambulances, rescue trucks, and necessary equipment is ongoing, with training of all essential personnel expected in the next few months. (b) HIV/AIDS and GBV/SEA Initiatives on the Corridor. The objective of the HIV/AIDS GBV/SEA subcomponent is to promote activities conducive to the reduction of infection and transmission risks of HIV/AIDS and other sexually transmitted diseases and infections and mitigate the risk of GBV/SEA along the North-South Corridor (NSC). This sub-component refurbishing and extending 30 priority lower level health centers along the Dar es Salaam Corridor and provide essential equipment – such as CD 4 count machines to monitor the strength of a patient’s immune system, small incinerators for clinical waste, and provide technical assistance to develop the capacity of the staff in the local health centers. The works are not expected to end before the end of the calendar year 2018 earliest. Component 3: Implementation assistance and additional institutional support (US$9 million). This component will provide necessary project management and implementation assistance to the implementation unit(s), together with capacity building and requested training, and other priority studies as stated below: (a) Piloting a Transit Guarantee System between the corridor countries. A detailed diagnosis and option identification to strengthen the transit procedures between the corridor countries, and potentially define and pilot a regional customs transit guarantee scheme with the objective of facilitating trade. The DCC has approached the International Road Union (IRU) regional office in Nairobi to partner with them on this activity. The DCC will prepare the TOR for procurement of the consultant who will undertake the study. (b) Comparative Cost Analysis on the Dar and Central Corridor. TANROADS have engaged a consultant and the study is underway. (c) Consultancy Services to Establish Corridor Performance Monitoring Services (CPMS). This activity is intended to support the operational establishment of the CPMS in the DCC for the benefit of member countries. The final CPMS report was submitted on August 15, 2016 and the assignment is deemed completed. Under the same component, a contract for a Business Analyst was signed and the final CPMS Business Model was submitted on July 8, 2016 and the assignment was deemed completed. The work of the Business Analyst was The World Bank Southern Africa Trade and Transport Facilitation Project (P120370) extended to include the preparation of a TOR for procurement of hardware for establishment of Corridor Performance and Monitoring System. The contract has been signed, and the assignment is advancing. (d) Capacity building, training and operating costs for Tanzania National Roads Agency (TANROADS), and training for Ministry of Works Transport and Communication (Works and Transport sectors), Tanzania Commission for AIDS (TACAIDS), and Ministry of Health and Social Welfare (MoHSW). A total of 125 staff have already received training. (e) Dar Port Access Roads. The feasibility study and engineering designs for the 3 Dar Port Access Roads is being financed from the Credit. The contract was signed on September 4. 2017 for a contract price of US$1,367,384, and a duration of twelve months. Negotiations have concluded to change the original scope from the detailed design of Port Access Corridors to the detailed engineering design of BRT Phase 5. The report is now due for submission to the Bank for formal review. (f) Independent technical audit of all civil works undertaken through the project. TANROADS has prepared Terms of Reference and the assignment will commence once the major civil works are completed. (g) Independent Stage 3 Road Safety Audit of the Mafinga -Igawa Road Project to address any road safety issues that may have been overlooked during the implementation of works. Component 4: Improved corridor management and monitoring (US$3 million). DCC has the agreement of all member states to introduce a fuel levy of 30 cents per ton on all transit consignments to corridor countries by mid- 2017, with the objective of raising revenue of about US$320,000 per year to fund their operational activities. Agreement was approved by the Permanent Secretaries of each of the member countries in April 2016. However, as the Government to Government agreement is yet to be signed the implementation of the fuel levy is still pending. This is causing major difficulties for the operation of the DCC, and most staff have been temporarily laid off, pending the introduction of the levy. Disbursement performance. The financing credit for the project amounts to Special Drawing Rights (SDR) 138.7 million (at current exchange rates equivalent to US$191.2 million) International Development Association (IDA) credit to the United Republic of Tanzania. In parallel, a regional IDA grant of SDR 2.0 million was provided to build capacity and support necessary technical assistance for the Dar Corridor Committee (DCC). Total disbursements under the credit are now at 73 percent. Total disbursements under the IDA grant is 97 percent. Project performance ratings. The project is currently rated satisfactory with respect to the PDO, given that the activities do not diverge from those agreed in the Financing Agreement and Project Appraisal Document (PAD) but they are delayed and without the extension of the project closing date, the project will not achieve the PDO. With respect to implementation progress, the rating is moderately satisfactory due to persistent delays on some of the project activities, especially the One Stop Border Post (OSBP) at Kasumulu, the accident blackspots, the refurbishment of the health clinics, and the One Stop Inspection Station (OSIS) at Vigwaza. B. RATIONALE FOR RESTRUCTURING The primary reason for the restructuring is to extend the project closing date by 18 months from December 31, 2018 to June 30, 2020, to allow for full completion of the project activities, including works related to, inter alia, the One Stop Border Post (OSBP) at Kasumulu, the accident blackspots, the refurbishment of the health clinics and associated procurement of ambulances, rescue trucks and equipment, and the One Stop Inspection Station (OSIS) at Vigwaza that are critical to achieving the project development objective. The Government of the United Republic of Tanzania submitted a letter on July 5, 2018, requesting an extension of the project closing date to conclude the works. Following discussions and clarifications from the implementing agency, IDA The World Bank Southern Africa Trade and Transport Facilitation Project (P120370) responded on September 25, 2018 expressing its support in principle to both the request for the reallocation among categories and extension of the closing date of the project, subject to verification of stated clarifications. The Government responded in a letter received November 2, 2018, with verification of clarifications sought. This will be the first extension of closing date. The restructuring will also involve minor changes to the results framework as described in this restructuring paper. II. DESCRIPTION OF PROPOSED CHANGES Note: Formatting instructions for this document. C. Header 1. [All sub-sections must have a continuous paragraph numbering for the entire main text or for each annex per institutional standard.] (c) This is the sub-para numbering for this level. This is the sub-para numbering for this level. This is the sub-para numbering for this level. (vii) This is the sub-para numbering for this level. This is the sub-para numbering for this level. (viii)This is the sub-para numbering for this level. This is the sub-para numbering for this level. (ix) This is the sub-para numbering for this level. This is the sub-para numbering for this level. A Level II- CD Approval restructuring is proposed in response to a request from the Government of the United Republic of Tanzania, received on July 5, 2018 with verification of clarifications in a letter dated October 216, 2018 (and received November 2, 2018) This is in line with the findings of recent implementation support missions: The rating of progress towards achieving the PDO is still satisfactory and, despite some progress, the project implementation continued to be delayed. Restructuring will allow a streamlining of project components to better focus on the achievement of the project development (PDO) and will help to demonstrate more tangible project impact. A revised procurement plan has been developed and approved, and reflect the approach based on the agreed restructuring. Changes to project results indicators. The changes include (i) dropping one PDO indicator and one associated Intermediary indicator following non-compliance with a conditional agreement (police road-blocks); and (ii) refining the targets for four indicators (three PDO indicators and one intermediate indicator) based on actual implementation progress. Extension to project closing date. The closing date(s) of the credit and the grant will be extended by 18 months to June 30, 2020. The Task Team confirms that (i) TANROADS performance as an implementing agency remains satisfactory; (ii) TANROADS has prepared a plan acceptable to the World Bank to complete all activities by the revised closing date; and (iii) there are no outstanding or unsatisfactory project audits. The PDO is expected to be fully achieved during this extension. The World Bank Southern Africa Trade and Transport Facilitation Project (P120370) Reallocation among Disbursement Categories. Due to realized savings in category 2, and unfavorable exchange rate developments affecting execution of other categories, a reallocation as detailed in this paper was requested by the Government. Project Implementation Schedule. The project implementation schedule will be changed from the initial 67 months to 85 months, with all project activities expected to be completed by June 30, 2020. 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 Results Framework ✔ Loan Closing Date(s) ✔ Reallocation between Disbursement Categories ✔ Disbursement Estimates ✔ Implementation Schedule ✔ Implementing Agency ✔ DDO Status ✔ Project's Development Objectives ✔ Components and Cost ✔ Cancellations Proposed ✔ Disbursements Arrangements ✔ Overall Risk Rating ✔ Safeguard Policies Triggered ✔ EA category ✔ Legal Covenants ✔ Institutional Arrangements ✔ Financial Management ✔ Procurement ✔ Other Change(s) ✔ The World Bank Southern Africa Trade and Transport Facilitation Project (P120370) 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 IDA-52480 Effective 31-Dec-2018 30-Jun-2020 30-Oct-2020 IDA-H8440 Effective 31-Dec-2018 30-Jun-2020 30-Oct-2020 OPS_DETAILEDCHANGES_REALLOCATION _TABLE REALLOCATION BETWEEN DISBURSEMENT CATEGORIES Financing % Current Allocation Actuals + Committed Proposed Allocation (Type Total) Current Proposed IDA-52480-001 | Currency: XDR iLap Category Sequence No: 1 Current Expenditure Category: GDS,NCS 1,400,000.00 0.00 3,900,000.00 100.00 100.00 iLap Category Sequence No: 2 Current Expenditure Category: DISB - CIVIL WORKS 123,100,000.00 66,944,933.33 114,800,000.00 100.00 100.00 iLap Category Sequence No: 3 Current Expenditure Category: DISB - CONSULTING 11,500,000.00 5,729,873.97 14,600,000.00 100.00 100.00 iLap Category Sequence No: 4 Current Expenditure Category: DISB - TRAINING The World Bank Southern Africa Trade and Transport Facilitation Project (P120370) 1,700,000.00 712,071.55 1,900,000.00 100.00 100.00 iLap Category Sequence No: 5 Current Expenditure Category: DISB - OPERATING COSTS 1,000,000.00 999,416.30 3,500,000.00 100.00 100.00 Total 138,700,000.00 74,386,295.15 138,700,000.00 OPS_DETAILEDCHANGES_DISBURSEMENT_TABLE DISBURSEMENT ESTIMATES Change in Disbursement Estimates Yes Year Current Proposed 2013 0.00 0.00 2014 22,000,000.00 0.00 2015 40,000,000.00 0.00 2016 60,000,000.00 0.00 2017 40,000,000.00 0.00 2018 48,000,000.00 30,000,000.00 2019 3,000,000.00 18,000,000.00 2020 0.00 3,000,000.00 The World Bank Southern Africa Trade and Transport Facilitation Project (P120370) . Results framework COUNTRY: Africa Southern Africa Trade and Transport Facilitation Project Project Development Objectives(s) The project development objective of the Southern Africa Trade and Transport Facilitation Program - Phase 1 (APL-1) is to facilitate the movement of goods and people along the Dar Corridor in Tanzania, whilst supporting improvements in the services for HIV/AIDS and road safety. The objective of the Southern Africa Trade and Transport Facilitation Program is to facilitate the movement of goods and people along the north-south corridor (NSC), whilst supporting improvement in the services for Human Immunodeficiency Virus/Acquired Immunodeficiency Syndrome (HIV/AIDS) and road safety. Project Development Objective Indicators by Objectives/ Outcomes RESULT_FRAME_TBL_PDO Indicator Name DLI Baseline End Target Facilitate the Movement of Goods and People along the Dar Corridor (Action: This Objective is New) Average time from ship readiness to unload to final destination for an imported container, on the corridor targeted by the 7.00 5.00 project (Days) Action: This indicator has been Revised Freight volume measured in TEU in targeted corridor 35,000.00 70,000.00 (Number) Action: This indicator has been Revised Reduction in total time required at police road blocks along the 5.00 2.00 Dar corridor in Tanzania (Hours) Action: This indicator has been Revised The World Bank Southern Africa Trade and Transport Facilitation Project (P120370) RESULT_FRAME_TBL_PDO Indicator Name DLI Baseline End Target Reduction in total time required for trucks to cross the 24.00 12.00 Songwe/Kasumulu border crossing into Malawi (Hours) Action: This indicator has been Revised Roads in good and fair condition as a share of the Dar Corridor length in Tanzania (731km out of 928km to Tunduma) 77.00 92.00 (Percentage) Action: This indicator has been Revised Improved corridor management and performance monitoring No Yes (Yes/No) Action: This indicator has been Revised Support Improvements in the Services for HIV/AIDS. (Action: This Objective is New) People with access to a basic package of health, nutrition, or 0.00 3,000.00 reproductive health services (number) (Number) Action: This indicator has been Revised Of which female (Percentage) 0.00 50.00 Action: This indicator has been Revised Support Improvements in Road Safety. (Action: This Objective is New) Reduction in the number of accident black spots on Dar Corridor 0.00 8.00 in Tanzania (Number) Action: This indicator has been Revised PDO Table SPACE The World Bank Southern Africa Trade and Transport Facilitation Project (P120370) Intermediate Results Indicators by Components RESULT_FRAME_TBL_IO Indicator Name DLI Baseline End Target Rehabilitation and upgrading of the 137.9 Km Mafinga-Igawa road section. (Action: This Component is New) Roads constructed, non-rural (Kilometers) 0.00 138.00 Action: This indicator has been Revised Improvement of infra and operations at the Songwe/Kasamulu border crossing on Tanzania/Malawi border (Action: This Component is New) Establishment of One Stop Border Post (OSBP) at Songwe- No Yes Kasumulu border crossing (Yes/No) Action: This indicator has been Revised Establishment of One Stop Rest Stops along the Dar es Salaam No Yes Corridor in Tanzania (Yes/No) Action: This indicator has been Revised Road Safety Initiatives on the Corridor (Action: This Component is New) Length of lane-km subject to Road Safety Audit (Kilometers) 0.00 1,500.00 Action: This indicator has been Revised Number of improved health centers and HIV clinics on the NSC 0.00 20.00 Corridor (Number) Action: This indicator has been Revised HIV/AIDS Initiatives on the Corridor. (Action: This Component is New) Number of medical personnel trained in health centers and HIV 0.00 60.00 clinics on the NSC Corridor (Number) Action: This indicator has been Revised Implementation Assistance and additional institutional support. (Action: This Component is New) Number of Customs Brokers receiving training (Number) 0.00 20.00 The World Bank Southern Africa Trade and Transport Facilitation Project (P120370) RESULT_FRAME_TBL_IO Indicator Name DLI Baseline End Target Action: This indicator has been Revised Reduction in number of police road blocks along the Dar es 36.00 10.00 Salaam Corridor (Number) Action: This indicator has been Marked for Deletion Improve Corridor Management and Monitoring. (Action: This Component is New) Introduction of sustainable funding mechanism for DCC (Yes/No) No Yes Action: This indicator has been Revised Introduction of a Corridor Performance Monitoring System No Yes (Yes/No) Action: This indicator has been Revised IO Table SPACE . The World Bank Southern Africa Trade and Transport Facilitation Project (P120370) Note to Task Teams: End of system generated content, document is editable from here.