The World Bank Ethiopia-Transport Sector Project in Support of RSDP4 (P117731) REPORT NO.: RES34371 DOCUMENT OF THE WORLD BANK RESTRUCTURING PAPER ON A PROPOSED PROJECT RESTRUCTURING OF ETHIOPIA-TRANSPORT SECTOR PROJECT IN SUPPORT OF RSDP4 APPROVED ON SEPTEMBER 25, 2012 TO MINISTRY OF FINANCE,FEDERAL MINISTRY OF FINANCE, FEDERAL DEMOCRATIC REPUBLIC OF ETHIOPIA TRANSPORT & DIGITAL DEVELOPMENT AFRICA Regional Vice President: Hafez M. H. Ghanem Country Director: Carolyn Turk Senior Global Practice Director: Jose Luis Irigoyen Practice Manager/Manager: Aurelio Menendez Task Team Leader: James Markland The World Bank Ethiopia-Transport Sector Project in Support of RSDP4 (P117731) I. BASIC DATA Product Information Project ID Financing Instrument P117731 Investment Project Financing Original EA Category Current EA Category Full Assessment (A) Full Assessment (A) Approval Date Current Closing Date 25-Sep-2012 30-Apr-2019 Organizations Borrower Responsible Agency Ministry of Finance,Federal Ministry of Finance, Federal Ethiopian Roads Authority Democratic Republic of Ethiopia Project Development Objective (PDO) Original PDO The proposed Project Development Objective is to improve the condition of priority regional trade corridors and link roads being upgraded under this project. Summary Status of Financing Net Ln/Cr/Tf Approval Signing Effectiveness Closing Commitment Disbursed Undisbursed IDA-51550 25-Sep-2012 18-Oct-2012 25-Jan-2013 30-Apr-2019 415.00 271.61 115.53 Policy Waiver(s) Does this restructuring trigger the need for any policy waiver(s)? No II. SUMMARY OF PROJECT STATUS AND PROPOSED CHANGES The World Bank Ethiopia-Transport Sector Project in Support of RSDP4 (P117731) 1. The purpose of this restructuring paper is to (i) cancel the credit and (ii) bring forward the closing date of the project to October 26, 2018 following the request received from Ethiopia. 2. The Ministry of Finance and Economic Cooperation (Recipient), through their letter of October 5, 2018, requested the World Bank to cancel the remaining balance available under the Project's Financing Agreement and close the Project. The letter was received by the Bank on October 8, 2018. 3. As a result of subsequent discussions between representatives of the Recipient and the World Bank, the Recipient has requested that the value of SDR 75,000,000.00 should be cancelled from the Credit through their letter of October 22, 2018. The remaining balance available under the Credit following the requested cancellation is SDR 198,500,000. The World Bank team has reviewed this request for cancellation, considers that the resulting balance that remains under the Credit is a reasonable estimate of the total eligible expenditure for the Project, and recommends approval of the cancellation as requested by the Recipient. 4. The balance of SDR 75,000,000.00 having been cancelled, the outstanding designated account balance should be documented for eligible expenditure incurred prior to the closing date, or refunded prior to the disbursement deadline date which is four months after the Credit closing date. 5. Progress of construction works on the contract for the Ambo-Woliso Road Upgrading Project (62 km) financed under the Project has been seriously delayed (currently standing at 48 percent) and it is highly unlikely that the works will be completed before the original Project closure date of April 30, 2019. The Implementing Agency has estimated that it may take at least three years to complete the works. The Recipient has therefore decided to bring forward the closing date of the Project to reflect this change in implementation strategy and to finance the remaining activities from its own resources. III. DETAILED CHANGES LOAN CLOSING DATE(S) Original Revised Proposed Proposed Deadline Ln/Cr/Tf Status Closing Closing(s) Closing for Withdrawal Applications IDA-51550 Effective 30-Apr-2019 26-Oct-2018 26-Feb-2019