The World Bank Upgrading and Greening the Rio de Janeiro Urban Rail System (P111996)

Transcription

1 Public Disclosure Authorized Public Disclosure Authorized RESTRUCTURING PAPER ON A PROPOSED PROJECT RESTRUCTURING OF UPGRADING AND GREENING THE RIO DE JANEIRO URBAN RAIL SYSTEM APPROVED ON JULY 9, 2009 TO STATE GOVERNMENT OF RIO DE JANEIRO REPORT NO.: RES25635 Public Disclosure Authorized Public Disclosure Authorized TRANSPORT & DIGITAL DEVELOPMENT LATIN AMERICA AND CARIBBEAN Regional Vice President: Jorge Familiar Calderon Country Director: Martin Raiser Senior Global Practice Director: Jose Luis Irigoyen Practice Manager/Manager: Shomik Raj Mehndiratta Task Team Leader: Bianca Bianchi Alves, Kavita Sethi

2 ABBREVIATIONS AND ACRONYMS CENTRAL COFIEX PDO PDTU PELC RJMR SEAI SETRANS SUPERVIA TOD State agency in charge of the suburban railway system; it is also the project implementation agency reporting to SETRANS; it succeeded Flumitrens (see below); Companhia Estadual de Engenharaia de Transportes e Logistica. Ministry of Planning, Development and Management (Ministério do Planejamento, Desenvolvimento e Gestão) Project Development Objectives Urban Transport Master Plan (Plano Diretor de Transporte Urbano) State Logistics Plan Rio de Janeiro Metropolitan Region Federal Secretariat for Foreign Affairs (Secretaria de Assuntos Internacionais) Rio de Janeiro State Secretariat for Transport (Secretaria de Estado de Transportes do Rio de Janeiro) Private concessionaire in charge of operations and maintenance of the Rio de Janeiro suburban rail since 1998 Transit Oriented Development

3 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 P Original EA Category Partial Assessment (B) Approval Date 09-Jul-2009 Financing Instrument Specific Investment Loan Current EA Category Partial Assessment (B) Current Closing Date 30-Jun-2017 Organizations Borrower State of Rio de Janeiro - Secretaria de Estado de Transportes do Rio de Janeiro SETRANS Responsible Agency CENTRAL - Companhia Estadual de Engenharia de Transportes e Logistica Project Development Objective (PDO) Original PDO a) Improve the level-of-service provided to the suburban rail transport users in the RJMR in a safe and cost-efficient manner and b) improve the transport management and policy framework in the RJMR. Current PDO (a) to improve the level of service provided to suburban rail transport users in the RJMR in a safe and cost-efficient manner; (b) to place the suburban rail transport system on a lower carbon growth path; and (c) to improve the transport management and policy framework in the Borrower s territory and in the RJMR. Summary Status of Financing Ln/Cr/Tf Approval Signing Effectiveness Closing Net Commitment Disbursed Undisbursed IBRD Jan Sep Oct Dec IBRD Jul Sep Dec Jun

4 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 A. Project Status 1. The Project is on track to achieve its development objective and progress towards achieving the PDO is rated Satisfactory and overall Implementation Progress (IP) is rated Moderately Satisfactory. Disbursement performance is satisfactory with US$ 160 million disbursed in FY 2015 and US$152 million in FY The Original Loan is 97% disbursed and the Additional Financing is 65% disbursed. 2. The Project closed on June 30, 2017 and was reinstated on January 31, 2018 through the memo to Latin America Regional Vice President dated January 26, 2018 with an extension of 24 months of the original loan (Loans 7719-BR) and 30 months of the Additional Financing (Loan 8117-BR). The approved extension will provide the time necessary to cover the critical technical assistance and warranty period of the train acquisition contracts and the completion of critical studies. 3. The Project consists of the original US$ million Loan 7719-BR, signed on September 24, 2009 and declared effective on December 3, 2009, and a US$ 600 million Additional Financing Loan 8177-BR, signed on September 5, 2012 and declared effective on October 5, The Additional Financing introduced an expansion in Project scope and extension of closing date by 36 months (until June 30, 1017), revised the Project Development Objective (PDO) and included a change in the name of the Project, which up to that point was known as Rio Mass Transit II Project. The revised and current PDO is (a) to improve the level of service provided to suburban rail transport users in the RJMR in a safe and cost-efficient manner; (b) to place the suburban rail transport system on a lower carbon growth path; and (c) to improve the transport management and policy framework in the Borrower s territory and in the Rio de Janeiro Metropolitan Region (RJMR). The Project finances 106 trains of which 100 have already been delivered and are currently in operation, serving 700,000 passengers per day, a 40% increase since The Infrastructure and Equipment Component is performing very well. Loan 7719-BR financed a contract to acquire 30 trains and Loan 8177-BR financed a contract for 60 additional trains, which was increased to 70 trains given the large savings as a result of the competitive bidding process. In December 2015, a new contract was signed for an additional 6 trains. The 100 trains under the first two contracts have been delivered and are currently operating under the warranty period that will expire in the coming two years. The remaining 5% contract costs related to the warranty and technical assistance will conclude by The 70 trains were delivered ahead of schedule to support transport during the Olympic Games in August Technical assistance services by the train supplier has improved with more readily available spare parts, better responsiveness to client requests, and a new management approach implemented by CENTRAL. The remaining six trains are being manufactured, but production has decelerated after the loan closing in June 2017 and only two units have been delivered so far. 5. The Institutional and Policy Development Component suffered some delays, but progressed well since The Borrower finalized a number of key studies to define the transport policy and management framework for the RJMR, including the Urban Transport Master Plan (PDTU); the State Logistics Plan (PELC); and the Bicycle-Rail Integration Study. The Borrower also made good progress in the preparation and procurement of other key studies such as the Transit Oriented Development (TOD) Pilot in Queimados, the Climate Change Adaptation Study, and the Environmental and Social Project Evaluation.

5 6. Social and Environmental Safeguards. There are no significant safeguards issues and the Project is compliant with the Environmental Management Plans and other policies and regulations. Resettlement is completed and a post-review of resettlement and compensation programs is undertaken on every supervision mission. The overall safeguards rating is Moderately Satisfactory. 7. Fiduciary. There are no outstanding audit reports and all audit reports has been deemed satisfactory. As of July 2016, the Financial Management Rating is Satisfactory. B. Rationale for Restructuring 8. The proposed changes to the Project include the cancellation of US$80.65 million of Loan 8177-BR and the reallocation of US$ 10 million of loan proceeds from the renovation of the Secretariat of Transport building to railway safety works that will allow the system to reach its operational speeds and reduce risks of accidents. 9. The cancellation of US$ million due to considerable loan saving as a result of the competitive bidding process for trains will allow to reduce the debt burden of the State as well as to prioritize the investments such as the railway safety works that have direct impact to the PDO. The cancellation amount had been previously allocated to the following projects: Acquisition of 7 Light Rail Vehicles to be operated on peripheral rail branches; studies for the renovation of the SETRANS building; contingency for project management contract; and other technical consulting services related to rolling stock. The projects do not have terms of reference or have not been bid out and therefore, cannot be expected to be completed within the new term of the loan. Although important, the new Light Rail Vehicles have a lower impact on the performance of the system than the railway safety works. 10. The inclusion of a sub-set of the railway safety works that had originally been envisioned: US$ 10 million under the existing Civil Works Category (current allocation of US$ 10.5 million) will be reallocated within this same category from the renovation of the SETRANS building to the execution of a sub-set of railway safety works, including the construction of 30 Km of walls, of 6 pedestrian overpasses, and 3 automated gates at grade crossings in the Saracuruna Branch. The Civil Works Category already exists, so there is no need to create it as part of the restructuring. After extensive discussions with the State Government, it was agreed that railway safety interventions were critical to reduce the risk of injuries and deaths and to enhance the quality of service and ensure the sustainability of the ridership increase brought about by the introduction of the new fleet of modern trains financed by the Loans. Albeit more limited in scope than originally contemplated due to the fiscal restrictions, the proposed interventions (protection walls, pedestrian overpasses and automated gates at grade crossings) will contribute to the safety and quality of service goals that are included in the PDO. Specifically, improved railway segregations and crossings in the Saracuruna Branch will improve travel times and system reliability and reduce the probability of accidents and right-of-way invasions. 11. These changes will improve the impacts of the interventions and the long-term sustainability of the Project. The proposed investments are fully aligned with the current PDO and do not require any changes in the objectives and results framework. No new safeguard policies are triggered and all safety works will happen within the right-of-way of the railway line, not requiring any resettlement. The implementation arrangement will remain the same and the risks of further delays are low given that, after loan cancellation, only 7% of the total undisbursed amount (US$ 15million) of Loan 8177-BR will not have been committed against signed contracts. In addition, the Federal Bailout Agreement foresees budget to guarantee the required loan disbursements in the coming years, which will smooth implementation. The implementing agency CENTRAL is also fully committed to expedite procurement processes and ensure that remaining contracts are signed before the end of this year. II. DESCRIPTION OF PROPOSED CHANGES The proposed changes to the Project include:

6 a) The cancellation of US$80.65 million of Additional Financing Loan 8177-BR. Proceeds for the Additional Financing No BR will be as follows: Category of Expenditure Amount of the Loan Allocated in USD Percentage of Financing Current Revised (1) Goods and Non-Consulting Services (including warehousing of the trains) for Parts A.1, A.2, A.3 and A.5 of the Project 577,656, ,580, % (2) Consultants services for Parts B of the Project 11,832,852 3,895, % (3) Works for Part A.4 of the Project 10,511, ,869, Cancellation as of March 8, 2018 (80,655,034) 100% TOTAL 600,000, ,000,000 b) The reallocation of US$ 10 million of loan proceeds within the same category Works for Part A.4 from the renovation of the Secretariat of Transport building to the execution of a sub-set of railway safety works. c) The Result Framework has been revised to remove the intermediate indicator Component 1f - Cumulative completion of SETRANS building rehabilitation; correct the number of trains from 86 to 72 under the intermediate indicator Component 1d; the target end date to reflect the current Closing Date of the Loan 8177-BR. 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 Change in Results Framework Change in Components and Cost Cancellations Proposed

7 PDO_IND_TABLE Reallocation between Disbursement Categories Change in Disbursement Estimates Change in Implementation Schedule Change in Implementing Agency Change in DDO Status Change in Project's Development Objectives Change in Loan Closing Date(s) 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 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 1. Travel time plus waiting time between selected pairs of stations before and after the trains are delivered Unit of Measure: Minutes Value Revised Date 30-Sep Jun Dec-2019

8 1.a. Japeri Branch Unit of Measure: Minutes Breakdown Value Revised Date 30-Sep Dec Dec b. Santa Cruz Branch Unit of Measure: Minutes Breakdown Value Revised 1.c. Saracuruna Branch Unit of Measure: Minutes Breakdown Value Revised 1.d. Belford Roxo Branch Unit of Measure: Minutes Breakdown Value Revised 1.e. Deodoro Branch Unit of Measure: Minutes Breakdown

9 Value Revised 2. Average passengers per square meter on Supervia Lines at peak hour Value Revised 3. % of passengers per day from households earning less than 4 Minimum Salaries (MS) Unit of Measure: Percentage Value Revised 4. Number of Supervia stations with bicycle parking facilities Value Revised 5. SuperVia stations with bus-rail fare integration Value Revised Date 31-Dec Dec Dec a. Japeri Branch Breakdown

10 Value Revised Date 31-Dec Dec Dec b. Santa Cruz Branch Breakdown Value Revised 5.c. Saracuruna Branch Breakdown Value Revised 5.d. Belford Roxo Branch Breakdown Value Revised Date 31-Dec Dec Dec e. Deodoro Branch Breakdown Value Revised Date 31-Dec Dec Dec Reductions of transport-realted greenhouse gas emissiones in the SuperVia area of influence (Ton CO2)

11 Value Revised Intermediate Indicators IO_IND_TABLE Component 1a. Trains in peak-hour/off peak hour Unit of Measure: Text Value 8/4 8.6/4 10/6 Revised a. Ramal Japeri linha CENTRAL / Nova Iguaçu Unit of Measure: Text Breakdown Value 8/4 8.6/4 10/6 Revised b. Ramal Santa Cruz linha CENTRAL / Bangu Unit of Measure: Text Breakdown Value 8/6 8.6/4 10/6 Revised c. Ramal Saracuruna linha CENTRAL / Gramacho Unit of Measure: Text Breakdown Value 6/2 6/4 10/6 Revised

12 d. Ramal Belford Roxo linha CENTRAL / B. Roxo Unit of Measure: Text Breakdown Value 3/1.5 4/2 10/6 Revised e. Ramal Deodoro linha CENTRAL / Deodoro Unit of Measure: Text Breakdown Value 8/0 12/6 15/10 Revised Component 1b. Additional demand generated from project on SuperVia -passengers per day Value Revised Component 1c. Working ratio supervia Value Revised Component 1d. Cumulative % of train manufacturing completion Unit of Measure: Percentage Value Revised

13 Additional trains (76 trains) Unit of Measure: Percentage Breakdown Value Revised Initial trains (30 trains) Unit of Measure: Percentage Breakdown Value Revised Date 30-Nov Dec Dec-2019 Component 1e. Cumulative % of completion of rehabilitation/modernization of metric gauge rolling stock Unit of Measure: Percentage Value Revised Date 30-Dec Jun Dec-2019 Component 1f. Cumulative completion of SETRANS building rehabilitation Unit of Measure: Percentage Value Marked for Deletion Date 30-Dec Jun Dec-2019 Component 2a. Update/completion of studies (Original Loan) Unit of Measure: Text Value PDTU 100% PDTU 100% PDTU Revised

14 OPS_DETAILEDCHANGES_COMPONENTS_TABLE OPS_DETAILEDCHANGES_CANCELLATIONS_TABLE OPS_DETAILEDCHANGES_REALLOCATION _TABLE Date 30-Dec Jun Dec-2019 Component 2.b. Studies (Additional Finance) (% of Completion) Unit of Measure: Percentage Value Revised COMPONENTS Current Component Name Current Cost (US$M) Action Proposed Component Name Proposed Cost (US$M) Infrastructure and Equipment Infrastructure and Equipment Institutional and Policy Development AF - Infrastructure and Equipment AF- Institutional and Policy Development Revised No Change Institutional and Policy Development AF - Infrastructure and Equipment AF- Institutional and Policy Development TOTAL CANCELLATIONS Ln/Cr/Tf Status Currency IBRD IBRD Disburs ing&re paying Disburs ing&re paying USD USD Current Amount 211,700, ,000, Cancellation Amount 0.00 Value Date of Cancellation 80,655, Mar-2018 New Amount 211,700, ,344, Reason for Cancellation BORROWER' S REQUEST FOR COUNTRY REASONS

15 REALLOCATION BETWEEN DISBURSEMENT CATEGORIES Current Allocation Actuals + Committed Proposed Allocation Financing % (Type Total) Current Proposed IBRD Currency: USD ilap Category Sequence No: 1 Current Expenditure Category: GO & NON-CS Parts A1 & A2 577,656, ,265, ,580, ilap Category Sequence No: 2 Current Expenditure Category: CS - PART B OF PROJECT 11,832, ,286, ,895, ilap Category Sequence No: 3 Current Expenditure Category: CW - Part A4 10,511, ,869, Total 600,000, ,552, ,344, OPS_DETAILEDCHANGES_DISBURSEMENT_TABLE DISBURSEMENT ESTIMATES Change in Disbursement Estimates Yes Year Current Proposed ,480, ,717, ,750, ,076, ,430, ,985, ,910, ,263, ,130, ,754, ,920, ,364, ,720, ,530, ,360, ,669, ,747,928.27

16 ,452, ,483, Note to Task Teams: End of system generated content, document is editable from here.