The World Bank Clean Air and Sustainable Environment Project (P098151) REPORT NO.: RES36283 RESTRUCTURING PAPER ON A PROPOSED PROJECT RESTRUCTURING OF CLEAN AIR AND SUSTAINABLE ENVIRONMENT PROJECT APPROVED ON MAY 12, 2009 TO PEOPLE'S REPUBLIC OF BANGLADESH ENVIRONMENT & NATURAL RESOURCES SOUTH ASIA Regional Vice President: Hartwig Schafer Country Director: Robert J. Saum Senior Global Practice Director: Karin Erika Kemper Practice Manager/Manager: Magda Lovei Task Team Leader: Harinath Sesha Appalarajugari, Nupur Gupta The World Bank Clean Air and Sustainable Environment Project (P098151) ABBREVIATIONS AND ACRONYMS AF Additional Financing BDT Bangladesh Taka CAMS Continuous Air Quality Monitoring Station CASE Clean Air and Sustainable Environment Project DNCC Dhaka North City Corporation DoE Department of Environment DSCC Dhaka South City Corporation DTCA Dhaka Transportation Co-ordination Authority ERD Economic Relations Division GoB Government of Bangladesh IA Implementing Agency IDA International Development Association IP Implementation Progress ISR Implementation Status Report MoEF Ministry of Environment and Forests PDO Project Development Objective PIU Project Implementation Unit The World Bank Clean Air and Sustainable Environment Project (P098151) BASIC DATA Product Information Project ID Financing Instrument P098151 Investment Project Financing Original EA Category Current EA Category Partial Assessment (B) Partial Assessment (B) Approval Date Current Closing Date 12-May-2009 31-Mar-2019 Organizations Borrower Responsible Agency Department of Environment,Ministry of Environment People's Republic of Bangladesh and Forests,Dhaka South City Corporation Project Development Objective (PDO) Original PDO To improve air quality and safe mobility in Dhaka through the implementation of demonstration initiatives in urban transport and brick making OPS_TABLE_PDO_CURRENTPDO Summary Status of Financing Net Ln/Cr/Tf Approval Signing Effectiveness Closing Commitment Disbursed Undisbursed IDA-59240 13-Jan-2017 18-Apr-2017 29-May-2017 31-Mar-2019 30.17 21.78 9.03 IDA-45810 12-May-2009 27-May-2009 19-Aug-2009 31-Mar-2019 60.96 61.42 0 Policy Waiver(s) Does this restructuring trigger the need for any policy waiver(s)? No The World Bank Clean Air and Sustainable Environment Project (P098151) I. PROJECT STATUS AND RATIONALE FOR RESTRUCTURING A. Project Status 1. The project was approved in May 2009 with an IDA credit of US$62.19 million to improve air quality and safe mobility in Dhaka through the implementation of demonstration initiatives in urban transport and brick making. The project consists of two components; the Environment Component which is implemented by the Department of Environment (DoE) aims at (i) strengthening the capacity of the Ministry of Environment and Forests (MoEF) and DoE in air quality monitoring and (ii) demonstrating the effectiveness of new brick kiln technology to reduce air pollution emissions; and the Transport Component implemented by (1) the Dhaka South City Corporation (DSCC)/ Dhaka North City Corporation (DNCC) aimed to support demonstration initiatives to improve traffic flow and pedestrian mobility, and (2) the Dhaka Transport Coordination Board (DTCB), aimed to strengthen the institutional framework in urban transport in Dhaka and support preparation of detailed design of Bus Rapid Transit (BRT) project. The MoEF is the nodal ministry for the project. 2. A level 2 restructuring was approved in July 2013 which (i) revised the scope of some activities, (ii) refined and simplified the results framework to make it a more useful management tool, (iii) reallocated project funds, (iv) extended the closing date of the project to December 15, 2016, and (v) amended some terminologies and definitions to match Government institutional and economic framework. In January 2017, a second restructuring and an additional financing of US$35 million was approved. In addition to including / expanding the scope of certain activities through additional financing, this restructuring (i) revised the results framework to reflect the higher results expected due to AF; and (ii) extended the closing date of the project from December 15, 2016 to December 15, 2018. The third restructuring in December 2018 involved (i) cancellation of SDR4.375 million (SDR0.885 million under Parent Credit No.4581 and SDR3.49 million under Additional Financing Credit No.5924) and (ii) extension of project closing date from December 15, 2018 to Mach 31, 2019. The current restructuring will be the fourth restructuring in the life of the project that involves cancellation of US$3.5 million (SDR2.513 million). B. Project Performance 3. The overall progress towards achievement of the PDO is ‘satisfactory’ and the implementation progress is ‘moderately satisfactory’ as reported in the ISR of December 2018. The project has completed all activities under the original credit and all contracts under the additional financing are in the advanced stage of completion. In terms of results, four of the five outcome indicators have been achieved. The fifth indicator, “vehicular traffic increased at selected intersections with operational traffic signals”, was added during the restructuring/additional financing in January 2017 and is expected to achieve its target by the proposed new closing date. 4. The Environment Component has, (i) established eleven Continuous Air Quality Monitoring Stations (CAMS) in eight cities and these stations are providing air quality data since 2015; (ii) been in the final stages of establishing additional five CAMS in five cities; (iii) piloted twelve low emission and energy efficient brick kiln technologies and the performance of these new kilns has exceeded efficiency targets (>30%) and pollution reduction (>70%); (iv) completed the new office building of DoE and the auditorium; and (v) received equipment and low cost monitors for air quality laboratory. 5. The activities under transport component, being implemented by Dhaka South and North City Corporations (DSCC and DNCC), (i) has completed 84 km of sidewalks; (ii) commissioned traffic signals with remote control systems at 32 intersections; (iii) has constructed 20 bus stops, and; (iv) is in the final stages of completing road markings, traffic signs, warehouse, and demonstration pilot for better access to disabled people. In addition, awareness campaigns on traffic safety and on accessibility of people with disability has also been carried out. The Dhaka Transport Coordination Authority (DTCA) completed all activities ‘satisfactorily’ in June 2017, including detailed design study of BRT Line 3 South. 6. Overall, the project has disbursed US$83.20 million so far at an overall disbursement ratio of 91.28 percent. 7. There are no overdue audit reports and pending fiduciary and safeguard issues and for the project. The World Bank Clean Air and Sustainable Environment Project (P098151) C. Rational for Restructuring 8. Through letter dated March 3, 2019, the Government of Bangladesh (GoB), requested the Bank for the cancellation of US$3.5 million (SDR2.513 million) savings in the additional financing credit (No.5924). These savings were accrued due to the currency fluctuation and the difference in estimated and actual value of contracts awarded by the implementing agencies. II. DESCRIPTION OF PROPOSED CHANGES 9. It is proposed to cancel US$3.5 million (SDR2.513 million) savings in the additional financing credit (No.5924), accrued due to the currency fluctuation and actual value of contracts awarded. 10.No other changes are proposed either in the Original Credit or Additional Financing Credit. The proposed cancellation will not impact the achievement of PDO and the outcomes. I. SUMMARY OF CHANGES Changed Not Changed Components and Cost ✔ Cancellations Proposed ✔ Reallocation between Disbursement Categories ✔ Implementing Agency ✔ DDO Status ✔ Project's Development Objectives ✔ Results Framework ✔ Loan Closing Date(s) ✔ Disbursements Arrangements ✔ Disbursement Estimates ✔ Overall Risk Rating ✔ Safeguard Policies Triggered ✔ EA category ✔ Legal Covenants ✔ Institutional Arrangements ✔ Financial Management ✔ Procurement ✔ Implementation Schedule ✔ The World Bank Clean Air and Sustainable Environment Project (P098151) Other Change(s) ✔ Economic and Financial Analysis ✔ Technical Analysis ✔ Social Analysis ✔ Environmental Analysis ✔ IV. DETAILED CHANGE(S) OPS_DETAILEDCHANGES_COMPONENTS_TABLE COMPONENTS Current Current Proposed Proposed Cost Action Component Name Component Name Cost (US$M) (US$M) Component 1: Environment Component 1: Environment 29.57 Revised 27.57 (DOE) (DOE) Component 2A Transport Component 2A Transport (DCC) 56.67 Revised 55.17 (DCC) Component 2B Transport Component 2B Transport (DTCB) 7.00 No Change 7.00 (DTCB) TOTAL 93.24 89.74 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 IDA-45810- Disburs XDR 41,306,370.00 0.00 03-Mar-2019 41,306,370.00 FOR 001 ing COUNTRY REASONS BORROWER' S REQUEST IDA-59240- Disburs XDR 22,006,000.00 2,513,900.00 03-Mar-2019 19,492,100.00 FOR 001 ing COUNTRY REASONS OPS_DETAILEDCHANGES_REALLOCATION _TABLE REALLOCATION BETWEEN DISBURSEMENT CATEGORIES The World Bank Clean Air and Sustainable Environment Project (P098151) Financing % Current Allocation Actuals + Committed Proposed Allocation (Type Total) Current Proposed IDA-59240-001 | Currency: XDR iLap Category Sequence No: 1 A Current Expenditure Category: Gds Wrks NCS CS Training 9,338,000.00 4,731,393.05 7,901,500.00 100.00 100.00 iLap Category Sequence No: 1 B Current Expenditure Category: IOC 750,000.00 290,869.99 750,000.00 100.00 100.00 iLap Category Sequence No: 2 A Current Expenditure Category: Gds Wrks NCS CS Training 11,748,000.00 7,085,790.15 10,670,600.00 100.00 100.00 iLap Category Sequence No: 2 B Current Expenditure Category: IOC 170,000.00 93,331.49 170,000.00 100.00 100.00 Total 22,006,000.00 12,201,384.68 19,492,100.00 . 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