Document of The World Bank FOR OFFICIAL USE ONLY Report No: 111254-BO RESTRUCTURING PAPER ON A PROPOSED PROJECT RESTRUCTURING OF NATIONAL ROADS AND AIRPORT INFRASTRUCTURE PROJECT APPROVED ON MAY 5, 2011 TO THE PLURINATIONAL STATE OF BOLIVIA December 14, 2016 Transport and ICT Global Practice Latin America and the Caribbean Region This document has a restricted distribution and may be used by recipients only in the performance of their official duties. Its contents may not otherwise be disclosed without World Bank authorization. ABBREVIATIONS AND ACRONYMS AASANA Airport and Aviation Services Administration ABC Bolivian Highway Administrator ABT Forest and Land Authority GoB Government of the Plurinational State of Bolivia IP Implementation Progress PDO Project Development Objectives SERNAP National Service of Protected Areas SDR Special Drawing Rights Regional Vice President: Jorge Familiar Country Director: Alberto Rodriguez Senior Global Practice Director: Jose Luis Irigoyen, acting Practice Manager: Gylfi Palsson, acting Task Team Leader: Gylfi Palsson 2 BOLIVIA NATIONAL ROADS AND AIRPORT INFRASTRUCTURE PROJECT CONTENTS Page ANNEX 1: EXTENSION OF CLOSING DATE ......................................................................... 4 3 ANNEX 1: Extension of Closing Date BOLIVIA – NATIONAL ROADS AND AIRPORT INFRASTRUCUTRE PROJECT Restructuring Paper 1. The proposed Restructuring will extend the closing date of the BOLIVIA: NATIONAL ROADS AND AIRPORT INFRASTRUCTURE PROJECT (CREDIT 4923-BO), P122007, from December 31, 2016, until August 7, 2018, slightly more than 19 months to complete the implementation and achieve the project objectives. The Government of the Plurinational State of Bolivia (GoB) has formally requested this extension of the closing date of the Credit through a letter dated August 3, 2016. This is the first closing date extension of the Project. 2. The SDR XX million Credit (US$109.5 million equivalent at the time of approval) was approved on May 5, 2011 with an effectiveness date of April 10, 2012. The Project’s Development Objective (PDO) is to improve the year- round transitability of the San Buenventura –Ixiamas national road and improve the safety, security and operational reliability of the Rurrenabaque Airport. The PDO will be met through: (i) the improvement of the San Buenaventura-Ixiamas national road, (ii) the improvement of the operational reliability and safety at the Rurenabaque Airport through construction of a new taxiway, flight control tower, passenger terminal and related civil works, as well as purchase of firefighting and aviation control equipment, and lastly, (iii) the institutional strengthening of the national road agency, Administradora Boliviana de Carreteras (ABC), Administración de Aeropuertos y Servicios Auxiliares a la Navegación Aérea (AASANA), the Autoridad de Bosques y Tierra (ABT) and Servicio Nacional de Areas Protegidas (SERNAP), as well as support territorial development in the Project area through a forum of stakeholders. 3. Current Status. Due to significant implementation delays, overall progress towards the achievement of the PDO is rated Unsatisfactory while Implementation Progress (IP) is considered Moderately Satisfactory based on recent improvement in execution progress on the road and completion of relevant procurement processes for the airport. Given improved performance of the Project executing entities and achievement of actions agreed between the GoB and the Bank, the PDO remains achievable within the timeframe of the proposed closing date extension. 4. Under Component 1, lingering issues with equipment and staffing of the roads contracts have largely been resolved. As for Component 2, the three procurement packages for the airport have advanced and physical works are expected to start in February 2017. For the institutional aspects in Component 3 (Institutional Strengthening of ABC and AASANA, and other relevant entities), the GoB has provided some funding for strengthening capacities. Within Component 3, the intention was to maintain throughout project execution a participatory Working Group to support sustainable territorial development of the region. The client has 4 informed the Bank that, while they remain committed to territorial development focus in the region, they wish to incorporate that work into their existing mechanisms for engagement in the region and are requesting that the Bank be amenable to such change. Cumulative disbursements stand at US$42.56 million 5. The proposed extension of time matches contractual closing date of the civil works under Component 1 (Improving the San Buenaventura – Ixiamas National Road), and is also necessary to allow implementation of the works within Component 2 (Improving the Rurrenabaque Airport) to proceed. The extended closing date would allow a new design strategy for implementation of Component 3 to be considered. 5