The World Bank Andhra Pradesh & Telangana Road Sector Project (P096021) REPORT NO.: RES29036 RESTRUCTURING PAPER ON A PROPOSED PROJECT RESTRUCTURING OF ANDHRA PRADESH & TELANGANA ROAD SECTOR PROJECT APPROVED ON OCTOBER 15, 2009 TO THE REPUBLIC OF INDIA JULY 28, 2017 TRANSPORT & ICT SOUTH ASIA Regional Vice President: Annette Dixon Country Director: Junaid Kamal Ahmad Senior Global Practice Director: Jose Luis Irigoyen Practice Manager/Manager: Karla Gonzalez Carvajal Task Team Leader: Sri Kumar Tadimalla The World Bank Andhra Pradesh & Telangana Road Sector Project (P096021) ABBREVIATIONS AND ACRONYMS APRDC Andhra Pradesh Road Development Corporation APRSP Andhra Pradesh Road Sector Project APTRSP Andhra Pradesh and Telangana Road Sector Project CRN Core Road Network DEA Department of Economic Affairs DDO Drawing and Disbursing Officer EA Environmental Assessment EoP End of Project GAAP Governance and Accountability Action Plan GoAP Government of Andhra Pradesh GoI Government of India GoT Government of Telangana IBRD International Bank for Reconstruction and Development ICT Information and Communication Technology ISAP Institutional Strengthening Action Plan IT Information Technology LA Land Acquisition LA Loan Agreement MIS Management Information System PA Project Agreement PDO Project Development Objective PPP Public Private Partnership RDC Road Development Corporation RR Resettlement and Rehabilitation TRDC Telangana Road Development Corporation The World Bank Andhra Pradesh & Telangana Road Sector Project (P096021) The World Bank Andhra Pradesh & Telangana Road Sector Project (P096021) BASIC DATA Product Information Project ID Financing Instrument P096021 Specific Investment Loan Original EA Category Current EA Category Full Assessment (A) Full Assessment (A) Approval Date Current Closing Date 15-Oct-2009 31-Aug-2017 Organizations Borrower Responsible Agency Ministry of Finance, DEA APRDC Project Development Objective (PDO) Original PDO The development objective of the project is to provide better quality, capacity and safe roads to users in a sustainable manner through enhanced institutional capacity of the Andhra Pradesh government in the road sector. OPS_TABLE_PDO_CURRENTPDO Summary Status of Financing Net Ln/Cr/Tf Approval Signing Effectiveness Closing Commitment Disbursed Undisbursed IBRD-77920 15-Oct-2009 22-Jan-2010 23-Mar-2010 31-Aug-2017 239.00 163.58 75.42 Policy Waiver(s) Does this restructuring trigger the need for any policy waiver(s)? No The World Bank Andhra Pradesh & Telangana Road Sector Project (P096021) I. PROJECT STATUS AND RATIONALE FOR RESTRUCTURING PROJECT STATUS 1. The project consists of four components: (a) Road Improvement, that includes upgrading and maintaining nearly 6,400km of the state’s Core Road Network; upgrading of about 425 km and long-term performance-based maintenance contracts (LTPBMC) of about 6,020 km; (b) PPP Facilitation Support to strengthen the capacity of the government to develop selected high density traffic corridors under Public-Private Partnership arrangements; (c) Institutional Strengthening; and (d) Road Safety. 2. Thus far, the project has been restructured four times, as detailed below: (a) First, to cancel $56 million of savings due to variations in the exchange rate; (b) Second, following the bifurcation of the state, to give effect to inclusion of the new state as the additional implementation agency, corresponding changes to the results framework and legal covenants, and extension of the project closing date by 1 year 11 months to May 31, 2017; (c) Third, to cancel $25 million of savings due to variations in the exchange rate and delete one extremely slow- moving package (Kakinada-Rajahmundry, KR-07) from the scope of the project; and (d) Fourth, In May 2017, following upon the request of the client governments and recommendation of the Department of Economic Affairs (DEA) for extension of the loan closing date from May 31, 2017 to December 2018, the Bank decided to grant a short extension of three months, that is, up to August 31, 2017. 3. At the time of fourth restructuring, the shorter extension was approved in view of two long standing safeguards implementing issues on the part of the Government of Andhra Pradesh, namely, (i) the approval and disclosure by the Government of Andhra Pradesh of the revised Resettlement Policy Framework (RPF) and (ii) the delayed assistance of full payment to the remaining 371 Project-Affected-Families (PAFs) in respect of the Chittur-Puttur road. It was further communicated that a longer extension as requested shall be approved upon fully addressing these two issues. 4. The Government of Andhra Pradesh confirmed that both the pending safeguards requirements, namely, (i) approval and disclosure of the revised Resettlement Policy Framework (RPF) and (ii) full payment to the remaining Project- Affected-Families in respect of the Chittur-Puttur road, have now been fully complied. RATIONALE FOR RESTRUCTURING 5. Considering that the Government of Andhra Pradesh have addressed the non-compliance issues and thereby fulfilled the condition stipulated for approval of longer extension, it is now proposed to restructure the project by extending the closing date as originally recommended by the DEA, that is, to December 31, 2018. The World Bank Andhra Pradesh & Telangana Road Sector Project (P096021) II. DESCRIPTION OF PROPOSED CHANGES 6. This proposed restructuring seeks to extend the closing date of the project to December 31, 2018. 7. In keeping with the proposed new closing date, the end target dates for the relevant parameters in the results indicators framework are also being updated. 8. Disbursement Projections: The project is expected to disburse $40 mn and $36 mn in FY18 and FY 19, respectively. I. SUMMARY OF CHANGES Changed Not Changed Change in Results Framework ✔ Change in Loan Closing Date(s) ✔ Change in Disbursement Estimates ✔ Change in Implementation Schedule ✔ Change in Implementing Agency ✔ Change in DDO Status ✔ Change in Project's Development Objectives ✔ Change in Components and Cost ✔ Cancellations Proposed ✔ Reallocation between Disbursement Categories ✔ Change in Disbursements Arrangements ✔ Change in Overall Risk Rating ✔ Change in Safeguard Policies Triggered ✔ Change of EA category ✔ Change in Legal Covenants ✔ Change in Institutional Arrangements ✔ Change in Financial Management ✔ Change in Procurement ✔ The World Bank Andhra Pradesh & Telangana Road Sector Project (P096021) Other Change(s) ✔ Change in Economic and Financial Analysis ✔ Change in Technical Analysis ✔ Change in Social Analysis ✔ Change in Environmental Analysis ✔ IV. DETAILED CHANGE(S) OPS_DETAILEDCHANGES_RESULTS_TABLE RESULTS FRAMEWORK Project Development Objective Indicators PDO_IND_TABLE Full Operationalization of the RDC with adequate financial and human resources to manage the CRN Unit of Measure: Yes/No Indicator Type: Custom Baseline Actual (Current) End Target Action Value No No Yes No Change Date 14-Sep-2009 30-Nov-2016 31-May-2017 Vehicle Operating Costs decline relative to the without project scenario in upgrading roads Unit of Measure: Number Indicator Type: Custom Baseline Actual (Current) End Target Action Value 5.41 4.76 No Change Date 14-Sep-2009 30-Nov-2016 31-Dec-2018 Travel time for bus passengers declines relative to without project situation in upgraded roads Unit of Measure: Hours Indicator Type: Custom Baseline Actual (Current) End Target Action Value 10.60 7.80 No Change Date 14-Sep-2009 30-Nov-2016 31-Dec-2018 Number of road accident fatalities per vehicle km travelled reduced on demonstration corridors Unit of Measure: Number Indicator Type: Custom The World Bank Andhra Pradesh & Telangana Road Sector Project (P096021) Baseline Actual (Current) End Target Action Value 0.47 0.46 No Change Date 30-Jun-2010 30-Nov-2016 31-Dec-2018 Roads in good and fair condition as a share of total classified roads Unit of Measure: Percentage Indicator Type: Custom Baseline Actual (Current) End Target Action Value 40.00 73.70 80.00 No Change Date 14-Sep-2009 30-Nov-2016 31-Dec-2018 Size of the total classified network Unit of Measure: Kilometers Indicator Type: Custom Supplement Baseline Actual (Current) End Target Action Value 10820.00 10820.00 10820.00 No Change Share of total classified network - Andhra Pradesh Unit of Measure: Kilometers Indicator Type: Custom Breakdown Baseline Actual (Current) End Target Action Value 6800.00 6800.00 6800.00 No Change Date 14-Sep-2009 02-Jun-2016 31-May-2017 Share of total classified network - Telangana Unit of Measure: Kilometers Indicator Type: Custom Breakdown Baseline Actual (Current) End Target Action Value 4020.00 4020.00 4020.00 No Change Date 14-Sep-2009 02-Jun-2016 31-May-2017 Intermediate Indicators The World Bank Andhra Pradesh & Telangana Road Sector Project (P096021) IO_IND_TABLE 340 km upgraded efficiently and environmental and socially sustainable way Unit of Measure: Kilometers Indicator Type: Custom Baseline Actual (Current) End Target Action Value 0.00 248.00 340.00 No Change Date 14-Sep-2009 30-Nov-2016 31-Dec-2018 6018 km of roads under Long-term performance based maintenance contract Unit of Measure: Kilometers Indicator Type: Custom Baseline Actual (Current) End Target Action Value 0.00 6180.00 6018.00 No Change Date 14-Sep-2009 30-Nov-2016 31-May-2017 GoAP and GoT able to concession two of roads selected for PPP transactions Unit of Measure: Number Indicator Type: Custom Baseline Actual (Current) End Target Action Value 0.00 2.00 2.00 No Change Date 14-Sep-2009 30-Nov-2016 31-May-2017 ISAP milestones met Unit of Measure: Yes/No Indicator Type: Custom Baseline Actual (Current) End Target Action Value No No Yes Revised Date 14-Sep-2009 30-Nov-2016 29-Jun-2018 GAAP milestones met Unit of Measure: Yes/No Indicator Type: Custom Baseline Actual (Current) End Target Action Value No Yes Yes No Change Date 14-Sep-2009 30-Nov-2016 31-May-2017 Annual maintenance plans developed through RMS system in Andhra Pradesh The World Bank Andhra Pradesh & Telangana Road Sector Project (P096021) Unit of Measure: Yes/No Indicator Type: Custom Baseline Actual (Current) End Target Action Value No No Yes Revised Date 14-Sep-2009 30-Nov-2016 29-Jun-2018 Demonstration project carried out in at least two road corridors Unit of Measure: Yes/No Indicator Type: Custom Baseline Actual (Current) End Target Action Value No No Yes Revised Date 14-Sep-2009 30-Nov-2016 29-Jun-2018 Comprehensive road safety functions, capacity and action plan(s) put in place Unit of Measure: Yes/No Indicator Type: Custom Baseline Actual (Current) End Target Action Value No No Yes Revised Date 14-Sep-2009 30-Nov-2016 29-Jun-2018 Black spot improvement of CRN Unit of Measure: Yes/No Indicator Type: Custom Baseline Actual (Current) End Target Action Value No Yes Yes No Change Date 14-Sep-2009 30-Nov-2016 31-May-2017 Roads rehabilitated, Non-rural Unit of Measure: Kilometers Indicator Type: Custom Baseline Actual (Current) End Target Action Value 0.00 248.00 340.00 No Change Date 14-Sep-2009 30-Nov-2016 31-Dec-2018 Land Acquisition Unit of Measure: Percentage Indicator Type: Custom The World Bank Andhra Pradesh & Telangana Road Sector Project (P096021) Baseline Actual (Current) End Target Action Value 0.00 89.00 100.00 No Change Date 14-Sep-2009 30-Nov-2016 31-Dec-2018 R and R Unit of Measure: Percentage Indicator Type: Custom Baseline Actual (Current) End Target Action Value 1.00 97.00 100.00 No Change Date 14-Sep-2009 30-Nov-2016 31-Dec-2018 OPS_DETAILEDCHANGES_LOANCLOSING_TABLE LOAN CLOSING DATE(S) Original Revised Proposed Proposed Deadline Ln/Cr/Tf Status Closing Closing(s) Closing for Withdrawal Applications 31-May-2017, 31- IBRD-77920 Effective 30-Jun-2015 31-Dec-2018 30-Apr-2019 Aug-2017 OPS_DETAILEDCHANGES_DISBURSEMENT_TABLE DISBURSEMENT ESTIMATES Change in Disbursement Estimates Yes Year Current Proposed 2010 15,000,000.00 15,000,000.00 2011 8,203,591.26 8,203,591.26 2012 14,512,775.07 14,512,775.07 2013 39,589,000.00 39,589,000.00 2014 36,359,000.00 36,359,000.00 2015 20,000,000.00 20,000,000.00 2016 17,000,000.00 16,870,000.00 2017 20,000,000.00 12,370,000.00 The World Bank Andhra Pradesh & Telangana Road Sector Project (P096021)