The World Bank Tanzania - Intermodal & Rail Development Project (P127241) Document Of The World Bank FOR OFFICIAL USE ONLY Report No.: RES31575 RESTRUCTURING PAPER ON A PROPOSED PROJECT RESTRUCTURING OF TANZANIA - INTERMODAL & RAIL DEVELOPMENT PROJECT APPROVED ON APRIL 24, 2014 TO THE UNITED REPUBLIC OF TANZANIA TRANSPORT AFRICA 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. The World Bank Tanzania - Intermodal & Rail Development Project (P127241) ABBREVIATIONS AND ACRONYMS DDO Deferred Drawdown Option DLI Disbursement Linked Indicators E&S Environmental and Social FA Financial Agreement GRM Grievances Redress Mechanism ICD Inland Container Depot LATRA Land Transport Regulatory Authority MAIS Management Accounting Information System MGR Meter Gauge Railway MoT Ministry of Transport MoWTC Ministry of Works, Transport, and Communications PAD Project Appraisal Document PDO Project Development Objective PIT Project Implementation Team PPA Project Preparation Advance RAHCO Reli Assets Holdings Company RAP Resettlement Action Plan SGR Standard Gauge Railway SUMATRA Surface and Marine Transport Regulatory Authority TASAC Tanzania Shipping Agency Corporation TAZARA Tanzania Zambia Railway Authority TIRP Tanzania Intermodal and Rail Development Project TRA Tanzania Revenue Authority TRC Tanzania Railway Corporation TRL Tanzania Railway Limited VAT Value Added Tax Regional Vice President: Hafez M. H. Ghanem Country Director: Bella Bird Senior Global Practice Director: Guangzhe Chen Practice Manager/Manager: Benedictus Eijbergen Task Team Leader: Yonas Eliesikia Mchomvu The World Bank Tanzania - Intermodal & Rail Development Project (P127241) I. PROJECT STATUS AND RATIONALE FOR RESTRUCTURING ...........................................................................1 A. Background ..............................................................................................................................................1 B. Project Implementation Status ................................................................................................................2 II. DESCRIPTION OF PROPOSED CHANGES .......................................................................................................6 III. SUMMARY OF CHANGES ………………………………………………………………………………………………………………..……… 9 IV. DETAILED CHANGES ………………………………………………………………………………………………………………..…………… 10 The World Bank Tanzania - Intermodal & Rail Development Project (P127241) BASIC DATA Product Information Project ID Financing Instrument P127241 Investment Project Financing Original EA Category Current EA Category Partial Assessment (B) Partial Assessment (B) Approval Date Current Closing Date 24-Apr-2014 31-Jul-2019 Organizations Borrower Responsible Agency GOVERNMENT OF TANZANIA Tanzania Railways Corporation (TRC) Project Development Objective (PDO) Original PDO The project development objective is to deliver a reliable open access infrastructure on the Dar es Salaam-Isaka rail segment. OPS_TABLE_PDO_CURRENTPDO Summary Status of Financing Net Effectivene Commitme Disburs Undisburs Ln/Cr/Tf Approval Signing Closing ss nt ed ed 24-Apr- 30-Mar- IDA-54140 03-Jul-2014 31-Jul-2019 300.00 92.71 177.58 2014 2015 Policy Waiver(s) Does this restructuring trigger the need for any policy waiver(s)? No The World Bank Tanzania - Intermodal & Rail Development Project (P127241) I. PROJECT STATUS AND RATIONALE FOR RESTRUCTURING A. Background 1. The Tanzania Intermodal and Rail Development Project (TIRP) was approved by the Board of Executive Directors of the World Bank on April 24, 2014 with an IDA Credit of SDR 193.9 million (US$300 million equivalent). The Financing Agreement was signed on July 3, 2014 and the project became effective on March 31, 2015. The Project Development Objective (PDO) is to assist the recipient to deliver a reliable open access infrastructure on the Dar es Salaam-Isaka (970 km) rail segment. The project comprises four components: Component A - Improvement of Rail Infrastructure; Component B - Rolling Stock; Component C - Development of Isaka Terminal, Ilala Terminal, and Dar es Salaam Port Platform; and Component D - Institutional Strengthening and Capacity Building. Through the components, the project supports (a) relaying of 308 km of rails with 80 lbs rails, (b) establishment of three intermodal terminals, (c) repair or reconstruction of 144 weak bridges of below 15 ton axle load capacity, and (d) sector transformation. 2. Component A supports the improvement of railway infrastructure. It provides support for the following areas: (a) Track repair works includes (i) full depth rehabilitation of 308 km: Dar es Salaam-Kilosa (269 km) and Malongwe-Tabora (39 km), (ii) maintenance along the Kilosa-Gulwe flood plain section; and (iii) replenishment of ballast along the 115 km stretch and continuous welding for 435 km (b) Rehabilitation of 144 weak bridges (c) Establishment of train control and track warrant systems 3. Component B supports the rolling stock for container block train and track works equipment. Supported areas include the following: (a) Supply of three locomotives (b) Supply of 44 flatbed container wagons (c) Lease of two civil engineering (traction) locomotives 4. Component C supports the establishment of three intermodal terminals at the Dar es Salaam Port, Ilala Terminal, and Isaka Terminal. 5. Component D supports institutional strengthening and capacity building to Tanzania Railway Limited (TRL), Reli Assets Holdings Company (RAHCO), Surface and Marine Transport Regulatory Authority (SUMATRA), and the Ministry of Transport (MoT). 1 The World Bank Tanzania - Intermodal & Rail Development Project (P127241) B. Project Implementation Status 6. The overall status of progress of the project toward both achievement of the Development Objectives and implementation progress are currently rated as Moderately Satisfactory. Four tracks and bridge works contracts with a total of about US$220 million covering the entire 970 km from Dar es Salaam to Isaka are currently ongoing. The works along the Dar es Salaam to Kilosa and Kilosa to Isaka sections are due to be completed in June 2020 and January 2020 respectively. The intermodal terminals of Dar Port and Isaka are still under engineering design that includes intensive coordination with other designs, especially for layout of standard gauge and Tanzania Zambia Railway Authority (TAZARA) railways at Dar Port, port improvements, and for facilities for operations with Tanzania Revenue Authority (TRA). The contracts for supply of 44 flat container wagons and supply of three 18.5 ton axle load locomotives were signed on December 7, 2018 and March 4, 2019 respectively and these are due for delivery in July 2019 and March 2020 respectively. Component A: Improvement of Rail Infrastructure 7. The data of the four track and bridge works contracts with two supervision contracts covering the Dar es Salaam to Isaka section (970 km) are summarized in table 1. Table 1: Summary of Committed Railway Track and Bridge Rehabilitation Works and Supervision Contracts Contract Price Contract Planned Contract (US$, millions, ex Signature Date Completion Date VAT) Package A works: Lot 1: Dar es Salaam- 66.42 April 9, 2018 June 17, 2020 Ngerengere (145 km) Package A works: Lot 2: Ngerengere-Kilosa 75.38 April 9, 2018 June 17, 2020 Package B works: Lot 1: Kilosa-Itigi (343 km) 44.35 May 10, 2018 January 17, 2020 Package B works: Lot 2: Itigi-Isaka (344 km) 32.91 May 10, 2018 January 17, 2020 Supervision of Package A: Lot 1 and 2 - Dar es 6.698 June 11, 2018 June 13, 2021 Salaam to Kilosa Supervision of Package B: Lot 1 and 2: Kilosa to 6.832 June 11, 2018 June 13, 2021 Isaka Note: VAT = Value Added tax Component B: Rolling Stock 8. Locomotives and wagons. The procurement process for 44 flat container wagons (US$2.73 million) has been concluded and contract signed on December 7, 2018 with a delivery date of July 2019. The contract for three diesel electric locomotives (US$9.1 million) that shall be used to operate container block trains was signed on March 4, 2019 with a delivery date of March 2020. 9. Trains control system. A contract for supply and installation of a GSM-based train control system (with contract sum of US$2.03 million) was signed on June 2, 2018 and is under implementation. This system is planned to be installed and commissioned by November 2019 (with training supplied). This will enable control of all trains along the Dar es Salaam to Isaka section and enabling drivers to receive warrants for entering a block section by digital means. There shall be no interlocking at stations and the station master will control the setting of switches. 2 The World Bank Tanzania - Intermodal & Rail Development Project (P127241) Component C: Development of Isaka Terminal, Ilala Terminal, and Dar Es Salaam Port Platform 10. The preparation of designs of the Dar es Salaam Port and Ilala intermodal terminals is ongoing. The initially prepared conceptual design of rail realignment at the Dar es Salaam Port had to be revised due to changes in port configuration after implementation of a fixed rail scanner. The design changes are being coordinated with all stakeholders including Tanzania Ports Authority, Tanzania Railways Corporation (TRC), and TRA under the overall guidance of the Ministry of Works, Transport, and Communications (MoWTC). The preferred option entails (a) not moving/relocating the recently built fixed scanner but relocating the central workshop and the back port shed and (b) building a dual gauge (meter gauge railway [MGR]+ standard gauge railway [SGR]) system between the Malindi Yard and the Port of Dar es Salaam and (d) building all new infrastructure to SGR design principles. 11. Isaka Terminal. The consultant has evaluated three possible options for setting up an inland container depot (ICD) served by the MGR. The most suitable option is a track of 650 m length that will be able to handle three trains per day. Component D. Institutional Strengthening and Capacity Building 12. Strengthening of the Project Implementation Team (PIT). The TRC signed a contract on May 9, 2018 of US$1.856 million and TZS 1,359 million for provision of experts to strengthen the PIT. The firm has committed to supplying 12 specialists: (a) project manager/team leader, (b) procurement and contract management specialist, (c) financial management (FM) specialist, (d) business/change specialist, (e) institutional specialist, (f) rail economic regulatory specialist, (g) rail safety regulatory specialist, (h) rail infrastructure and track specialist, (i) rail operations specialist, (j) rail safety and technical assurance specialist, (k) environmental specialist, and (l) social specialist. The firm is fully mobilized to strengthen the PIT. 13. Central corridor strategy for creation of rail business (MGR, SGR, and ports). The implementation of the SGR is currently ongoing between Dar es Salaam and Makutupora (535 km). The SGR shall provide high-quality passenger and freight service over the length of its operation. The pricing of services, particularly that of passenger services, shall be decided based on cost of service provision and affordability factors leading to maximization of revenue. In many cases, a lower pricing leads to higher revenue due to relative increase in load factor. In the medium term, the MGR shall continue to provide commuter services around Dar es Salaam. 14. The MGR shall strive to provide high-quality freight services in terms of reliability and relatively short transit time on the central corridor at competitive prices by operating block trains for containers and other commodities. The MGR shall provide reliable open access infrastructure on the Dar es Salaam- Isaka rail segment and make available several daily slots for third-party block trains. MGR services shall contract gradually with time as the length of the SGR extends westwards. 15. Management accounting information system (MAIS). The organization structure of the TRC was approved in late 2018 making it possible to initiate the development of terms of reference for MAIS implementation. The MAIS is a management tool for facilitating evaluation of costs and revenue for services offered. This system is an essential tool for the successful functioning of the business units being set up as also for setting up cost and profit centers. 3 The World Bank Tanzania - Intermodal & Rail Development Project (P127241) 16. Preparations for extra capacity utilization of the MGR. Preparations include open access procedures by the TRC, as well as licensing and regulation by SUMATRA. The World Bank missions have been sharing international practices on the development of regulations for open access of railway infrastructure as well as licensing of operators by SUMATRA. The rehabilitation of track between Dar es Salaam and Isaka will create significant surplus capacity for train operation that could potentially be used by private sector train operators. The proposed regulations and licensing procedures shall focus on ensuring capability of private train operators for running trains safely and efficiently. An important consideration shall be that the TRC seeks fair track access charges from private train operators. It was noted that the competitive environment thus created, shall encourage improvement in efficiency of train operation and quality of rail transportation services by all parties concerned. 17. Capacity strengthening measures for operations and management of MGR and SGR (track and train operations). It is noted that the TRC is required to play an active role in the implementation of the SGR project. The TRC needs to strengthen its managerial capacity so that it is able to manage the responsibilities of supervising construction activities for rehabilitation of the MGR track as well as the SGR project efficiently. The TRC also needs to strengthen its capabilities for marketing and customer services to rapidly grow its MGR freight business and operational efficiency to achieve shorter and reliable transit time for its freight trains. Railway Safety 18. The safety records of the Tanzania central corridor railways is not encouraging. About 83 deaths and 160 injuries were reported over the last five years. The major cause of high number death and injuries for year 2017/18 is the collisions between train and road vehicles. The number of major accidents has, however, slightly decreased from 143 major accidents in 2016/17 to 114 accidents in 2017/18. The main causes of the major accidents continue to be (a) rolling stock failures, (b) the condition of track, and (c) human errors. The railway safety consultant under the PIT is supporting the safety inspectors under SUMATRA to conduct a comprehensive safety assessment on the corridor and provide implementable infrastructural and operational measures for enhancing safety. The safety assessment report is planned to be delivered by December 2019. Figure 1. Five-Year Trend Causes Major Accidents Dar- Figure 2. Five-Year Trend of Deaths and Injuries Mwanza Environmental and Social Safeguards 19. The performance rating for compliance with the environmental and social (E&S) safeguards requirements was upgraded from Moderately Unsatisfactory to Moderately Satisfactory in March 2019. 4 The World Bank Tanzania - Intermodal & Rail Development Project (P127241) The E&S risks remain Substantial. The Resettlement Action Plan (RAP) to three affected groups— farmers, pastoralists, and petty traders—has been satisfactorily implemented as advance notices for harvesting crops were provided to farmers, communication campaigns were conducted along the corridor, and ID cards were issued to petty traders conducting business along the railway line. The grievance redress mechanism (GRM) is satisfactorily setup and working. The PIT, consultant, and contractor have qualified E&S specialists. All required safeguard instruments and relevant policy documents are prepared, cleared, and disclosed. Labor and labor-related gaps that have been identified are closely followed until their complete resolution. The task team monitors labor influx and gender-based violence (GBV) risks in the project area. Procurement 20. Procurement progress. The overall assessment of the procurement is rated Satisfactory. As summarized in table 2, the processing of 52 procurement packages has been completed and enabled the project to commit about US$266.4 million. Table 2. Summary of Status of Procurement Procurement Not Procured Packages Under Procurement Initiated No. Category Total Total Amount Total Amount Amount( US$) Number Number (US$) Number (US$) 1 Goods 8 19,071,269.26 1 145,000 3 2,865,999.00 2 Non-Consultancy Services 1 10,000.00 1 10,000.00 - - 3 Works 5 219,636,356.95 - - 1 11,000,000.00 4 Consultancy Services 35 28,510,527.60 - - 2 23,100,000.00 Total 49 267,228,153.81 2 155,000 6 36,965,999.00 21. Procurement capacity. The Government has merged RAHCO and TRL to form the TRC therefore the project implementing agency is now the TRC. The merger has resulted in an increase in procurement staff for the newly established TRC though most of the staff are yet to be trained in procurement under World Bank procedures. Also, two out of the three procurement staff recruited to work with the project have resigned, affecting the capacity in carrying out project procurement activities. The project will continue to support training of the TRC procurement staff in its endeavors of strengthening the institutional capacity. Financial Management 22. The overall FM pperformance rate remains Satisfactory and the FM risk assessment assigned to the project is Moderate. Disbursement Performance 23. The financing for the project amounts to SDR 193.9 million (at current exchange rates equivalent to US$272.99 million) IDA credit to the United Republic of Tanzania. The project has commitments of US$266.7 million—about 98 percent of the available credit amount. The project has also so far disbursed US$89.63 million that is equivalent to 33 percent of the credit amount. Rationale for Restructuring 5 The World Bank Tanzania - Intermodal & Rail Development Project (P127241) 24. The primary reason for the restructuring is to extend the project closing date by 22 months from July 31, 2019 to May 31, 2021, to allow for full completion of project activities. The currently ongoing works contracts for railway track and bridges rehabilitation are expected to be completed by June 2020. The container block train will thereafter start operations and the project will support the ramp-up of operations for about 1 year. Completion of works and startup of block train operations are critical for enabling the project to achieve its development objectives. 25. The Government of the United Republic of Tanzania submitted a letter on March 2, 2018, requesting an extension of the project closing date to conclude the works. Due to follow-on discussions, the Government thereafter through a letter dated December 3, 2018 submitted to the World Bank, the updates to the Letter of Sector Development Policy for the Railway subsector. Also, the Government— through a letter dated February 22, 2019—proposed a VAT exemption language for the project. 26. The restructuring will also involve adjustments to the Results Framework as described in this Restructuring Paper. II. DESCRIPTION OF PROPOSED CHANGES 27. Level II – Country Director approval restructuring is proposed in response to a request from the Government of the United Republic of Tanzania, dated March 2, 2018; updates to the Letter of Sector Development Policy through a letter dated December 3, 2018; and VAT exemption proposal through a letter dated February 22, 2019. This is in line with the findings of recent implementation support missions: The rating of progress toward achieving the PDO is Moderately Satisfactory mainly due to recent progress after delayed effectiveness and commencement of implementation of project activities. Restructuring will allow streamlining of project components to better focus on the achievement of the PDO and will help to demonstrate more tangible project impact. All major procurement for works, goods, and consulting services are completed, therefore the focus during the remaining period is on quantity and quality of physical implementation. 28. Extension to the project closing date. The closing dates of the credit and the grant will be extended by 22 months to May 31, 2021. The task team confirms that (a) TRC performance as an implementing agency remains Satisfactory, (b) the TRC has prepared a plan acceptable to the World Bank to complete all activities by the revised closing date, and (c) there are no outstanding or unsatisfactory project audits. The PDO is expected to be fully achieved during this extension. 29. Changes to the project’s results indicators. The changes include (a) introduction of one additional intermediate indicator following the formation of the TRC through merger of TRL and RAHCO and (b) refining the targets for all indicators (two PDO indicators and eight intermediate indicators) based on actual implementation progress. 30. Change of the project implementing agency. The implementing agency, RAHCO, has been merged with the TRL to form the TRC. Therefore, the TRC is now the implementing agency of the project. The PIT that was formed under RAHCO is currently under the TRC under the Directorate of Civil Engineering Infrastructure. This is after the Railways Act of 2002 was replaced by a Railways Act of 2017 that was approved by the Government in September 2017 and became operational from February 2018. 6 The World Bank Tanzania - Intermodal & Rail Development Project (P127241) 31. Project implementation schedule. The schedule will be changed from the initial 67 months to 85 months, with all project activities expected to be completed by June 30, 2020. (See revised schedule in annex 1). 32. Change in institutional arrangements. The new Government that was formed in late 2015 has created the MoWTC replacing former MoT responsibilities for the transport subsector. The project is currently being implemented by the MoWTC through the TRC. The PIT that was under RAHCO remains undisturbed but is currently under the TRC. The merger of RAHCO and TRL has also shifted all TRL responsibilities—for preparing and operating a container block train business—under the project to the TRC. Further, the transport regulator, SUMATRA, has been split through the Tanzania Shipping Agencies Act of 2017 and the Land Transport Regulatory Act of 2019 to form Tanzania Shipping Agencies Corporation (TASAC) and Land Transport Regulatory Authority (LATRA); respectively. TASAC is responsible for marine transport regulation and LATRA is responsible for land transport including railways. Therefore, the SUMATRA implementation roles under the project are now assigned to LATRA. 33. Exemption of VAT. In line with the Government request, the railway track and bridge works are to be exempted from VAT. 34. Changes in components costs. Although the overall project cost remains unchanged, the component costs have been adjusted in line with current commitments and projections to completion (see table 3). Table 3. Updated Cost Table Additional Project Current Total Forecast Project Components and Activities Cost (US$, Commitments (US$, (US$, millions) (US$, millions) millions) millions) Component A: Improvement of Rail Infrastructure Package A, Lot 1: Dar-Ngerengere 66.423 66.423 Package A, Lot 2: Ngerengere-Kilosa 75.383 75.383 154.500 Package B. Lot 1: Kilosa-Itigi 44.353 44.353 Package B, Lot 2: Itigi-Isaka 32.906 32.906 Works Supervision: Package A, Lot 1 and Lot 2 6.698 6.698 6.500 Works Supervision: Package B, Lot 1 and Lot 2 6.832 6.832 Preparation of tender documents for railway track 0.153 0.153 rehabilitation and maintenance 5.000 Field assessment and preparation of tender docs for 0.820 0.820 track works and track maintenance Inspection and capacity rating of railway bridges and 48.400a 3.626 3.626 culverts Detailed bridge and culvert engineering design and 2.837 2.837 preparation of tender documentation Preparation of economic analysis for TIRP 0.072 0.072 Supply and installation of train control system 2.035 2.035 2.400 Train modelling software 0.154 0.154 Subtotal A 216.800 242.139 0.154 242.293 Component B: Rolling Stock Supply of 3 x locomotives (3,000 HP) 9.000 9.100 0.000 9.100 7 The World Bank Tanzania - Intermodal & Rail Development Project (P127241) Additional Project Current Total Forecast Project Components and Activities Cost (US$, Commitments (US$, (US$, millions) (US$, millions) millions) millions) Supply of 2 x refurbished locomotives 0.000 0.000 Procurement of 15 x ballast hopper wagons 0.000 0.000 Supply of 44 x freight flat wagons 3.500 2.730 2.730 Procurement of 1 x tamper and 1 x regulator 0.000 0.000 Supply of track recording car 5.000 4.926 4.926 Sub-Total B 17.500 16.756 0.000 16.756 Component C: Development of Isaka Terminal, Ilala Terminal, and Dar es Salaam Port Platform Designing Dar es Salaam Port, Ilala, and Isaka Terminal track layouts 1.140 1.140 10.700 New works at Dar Port, Ilala Yard, and Isaka Terminal 8.475 8.475 Procurement of 2 x reach stackers + 1 x tractor, 1 x forklift. 2.000 1.556 1.556 Supervision of works for Dar es Salaam, Ilala, and Isaka facilities 0.000 0.000 Sub-Total C 12.700 1.140 10.031 11.171 Component D: Institutional Strengthening and Capacity Building Business review of the TRL and preparation of five- 2.000 year business plan 2.000 Strengthening TRL management - 3 year contract 23.100 16.256 16.256 Provision of experts to reinforce the 2.057 implementation of TIRP 2.057 Designing track maintenance organization and 0.332 sustainable maintenance program 1.200 0.332 Preparation of tender documents and supervision of 0.045 rehabilitation of RAHCO Building 0.045 MAIS 1.500 1.156 1.156 Rehabilitation of RAHCO Building 0.571 0.571 Detailed Engineering Design of Ruvu Bridge 0.087 0.087 Technical assistance - PIT 1.200 2.786 2.786 Technical assistance to LATRA, training to the TRC 0.468 and LATRA 0.900 0.468 Operating costs to the PIT under the TRC 0.848 1.00 1.848 Subtotal D 27.900 7.194 20.412 27.605 Project Preparation Advance (PPA) Technical assistance - PIT 1.400 0.000 0.000 Studies 2.800 0.000 0.000 Others 0.800 0.000 Subtotal PPA 5.000 0.000 0.000 0.000 Total (excluding contingencies) 279.900 267.228 30.597 297.825 Contingencies 20.100 0.000 2.175 2.175 Grand Total 300.000 267.228 32.772 300.000 Note: a. US$48.4 million was allocated during appraisal for rehabilitation of weak bridges and the works are now included in Lots 1 and 2 under Packages A and B. 8 The World Bank Tanzania - Intermodal & Rail Development Project (P127241) 35. Changes in disbursement categories. Because no disbursement happened on the PPA, table 4 lists the suggested changes to the disbursement categories. Table 4. Disbursement Categories Percentage of Original Category Proposed Category Expenditures to be Category Allocation Allocation Financed (SDR) (inclusive of taxes) (1) Goods, works, non-consulting 190,600,000 193,900,000 100% services, and consultants’ services, training, and operating costs (2) Refund of preparation advance 3,300,000 0 Amount payable pursuant to Section 2.07 of the General Conditions TOTAL AMOUNT 193,900,000” 193,900,000 I. SUMMARY OF CHANGES Changed Not Changed Implementing Agency ✔ Results Framework ✔ Components and Cost ✔ Loan Closing Date(s) ✔ Disbursements Arrangements ✔ Disbursement Estimates ✔ Legal Covenants ✔ Institutional Arrangements ✔ Implementation Schedule ✔ DDO Status ✔ Project's Development Objectives ✔ Cancellations Proposed ✔ Reallocation between Disbursement Categories ✔ Overall Risk Rating ✔ Safeguard Policies Triggered ✔ EA category ✔ 9 The World Bank Tanzania - Intermodal & Rail Development Project (P127241) Financial Management ✔ Procurement ✔ Other Change(s) ✔ Economic and Financial Analysis ✔ Technical Analysis ✔ Social Analysis ✔ Environmental Analysis ✔ IV. DETAILED CHANGE(S) OPS_DETAILEDCHANGES_IA_TABLE IMPLEMENTING AGENCY Implementing Agency Name Type Action Reli Assets Holding Company (RAHCO) Implementing Marked for Deletion Agency Tanzania Railways Corporation (TRC) Implementing New Agency OPS_DETAILEDCHANGES_COMPONENTS_TABLE COMPONENTS Current Current Proposed Proposed Cost Action Component Name Component Name Cost (US$M) (US$M) Component A: Improvement of Component A: Improvement of 232.50 Revised 244.00 Rail Infrastructure Rail Infrastructure Component B: Rolling Stock 19.30 Revised Component B: Rolling Stock 17.00 Component C: Development of Component C: Development of Isaka Terminal, Ilala Terminal Isaka Terminal, Ilala Terminal and 15.30 Revised 12.00 and Dar es Salaam Port Dar es Salaam Port Platform Platform Component D:Institutional Component D:Institutional Strengthening and Capacity 32.90 Revised Strengthening and Capacity 27.00 Building Building TOTAL 300.00 300.00 OPS_DETAILEDCHANGES_LOANCLOSING_TABLE 10 The World Bank Tanzania - Intermodal & Rail Development Project (P127241) LOAN CLOSING DATE(S) Proposed Original Revised Proposed Deadline for Ln/Cr/Tf Status Closing Closing(s) Closing Withdrawal Applications IDA-54140 Effective 31-Jul-2019 31-May-2021 30-Sep-2021 OPS_DETAILEDCHANGES_DISBURSEMENT_TABLE DISBURSEMENT ESTIMATES Change in Disbursement Estimates Yes Year Current Proposed 2014 0.00 0.00 2015 35,000,000.00 10,000,000.00 2016 60,000,000.00 20,000,000.00 2017 80,000,000.00 25,000,000.00 2018 85,000,000.00 25,000,000.00 2019 35,000,000.00 100,000,000.00 2020 5,000,000.00 120,000,000.00 OPS_DETAILEDCHANGES_LEGCOV_TABLE LEGAL COVENANTS Loan/Credit/TF Description Status Action Finance Agreement :Maintenance arrangements | Description :Recipient shall cause RAHCO and TRL to enter into maintenance provision arrangements for the IDA-54140 Not complied with Revised railway infrastructure assets in a manner satisfactory to the Association. (Section I of Schedule 2 of the Financing Agreement) | Due Date :30-Dec-2014 Finance Agreement :Maintenance arrangements description: Recipient shall cause TRC to provide Proposed maintenance provision arrangements for the railway Not yet due infrastructure assets in a manner satisfactory to the Association. Due Date: December 31, 2019 11 The World Bank Tanzania - Intermodal & Rail Development Project (P127241) Finance Agreement :TRL Business Plan | Description :Recipient shall (i) develop a three year business plan for TRL, satisfactory to the Association; (ii) take all necessary measures to enable and cause TRL to IDA-54140 implement the business plan; and (iii) review the status Not complied with Revised of implementation and take measures to ensure continued effective execution of the business plan to achieve the Project objective. (Section I of Schedule 2 of the Financing Agreement) | Due Date :31-Jul-2015 TRC Business Plan: Recipient shall (i) develop a five year business plan for TRC, satisfactory to the Association; (ii) take all necessary measures to enable and cause TRC to implement the business plan; and (iii) review the Proposed Not yet due status of implementation and take measures to ensure continued effective execution of the business plan to achieve the Project objective. Due Date: December 31, 2019 Finance Agreement :Open Access Rail Policy | Description :Recipient shall cause SUMATRA to (i) adopt implementing regulations and procedures for the full implementation of an Open Access Rail Policy in form and substance satisfactory to the Association; and IDA-54140 Not complied with Revised (ii) implement said regulations and procedures to allow qualified operators to use the Dar es Salaam-Isaka line under licenses issued by SUMATRA. (Section I of Schedule 2 of the Financing Agreement) | Due Date :01- Jul-2017 Recipient shall cause LATRA and TRC to (i) adopt implementing regulations and procedures for the full implementation of an Open Access Rail Policy in form and substance satisfactory to the Association; and (ii) Proposed Not yet due implement said regulations and procedures to allow qualified operators to use the Dar es Salaam-Isaka line under licenses issued by SUMATRA and access by TRC. Due Date: June 30, 2020 IDA-54140 Finance Agreement :Transfer of Assets to TRL | Not yet due Revised Description :The Recipient shall not transfer the assets financed under Part B of the Project to TRL for its operations, until that: the Recipient has completed its 12 The World Bank Tanzania - Intermodal & Rail Development Project (P127241) review of TRL’s implementation of its three year business plan as described in paragraph 50 (b)-(i) of this PAD(and paragraph D. 2 of Schedule 2, Section I of the FA) and the Association is satisfied with the outcome of said review. | Due Date :31-Jul-2018 The Recipient shall not transfer the assets financed under Part B of the Project to TRC for its operations, until that: the Recipient has completed its review of TRC’s implementation of its three year business plan as Proposed NYD described in paragraph 50 (b)-(i) of the PAD (and paragraph D. 2 of Schedule 2, Section I of the FA) and the Association is satisfied with the review. Due date . May 31, 2020 13 The World Bank Tanzania - Intermodal & Rail Development Project (P127241) . Results framework COUNTRY: Tanzania Tanzania - Intermodal & Rail Development Project Project Development Objectives(s) The project development objective is to deliver a reliable open access infrastructure on the Dar es Salaam-Isaka rail segment. Project Development Objective Indicators by Objectives/ Outcomes RESULT_FRAME_TBL_PDO Indicator Name DLI Baseline End Target Reform of Railway operations to allow Third Party Operators (Action: This Objective is New) Open Access: Number of daily slots available for third party block 0.00 2.00 trains between Dar es Salaam Port and Isaka Terminal (Number) Action: This indicator has been Revised Improve Freight Volumes by Rail (Action: This Objective is New) Number of TEU’s shipped by direct project beneficiaries 308.00 6,000.00 (Number) Action: This indicator has been Revised PDO Table SPACE Intermediate Results Indicators by Components RESULT_FRAME_TBL_IO Indicator Name DLI Baseline Intermediate Targets End Target 1 2 3 4 5 6 7 8 9 Component A: Improvement of Rail Infrastructure (Action: This Component is New) 14 The World Bank Tanzania - Intermodal & Rail Development Project (P127241) RESULT_FRAME_TBL_IO Indicator Name DLI Baseline Intermediate Targets End Target 1 2 3 4 5 6 7 8 9 Length of rail track- km rehabilitated at 0.00 0.00 0.00 0.00 0.00 100.00 500.00 970.00 970.00 970.00 970.00 target capacity (Kilometers) Action: This indicator has been Revised Number of bridges rehabilitated to 0.00 0.00 0.00 0.00 0.00 50.00 100.00 144.00 144.00 144.00 389.00 target permissible capacity (Number) Action: This indicator has been Revised Average commercial train speed on the Dar es Salaam – 11.00 30.00 Isaka line (Kilometers) Action: This indicator has been Revised Component B: Rolling Stock (Action: This Component is New) Loading capacity: Number of wagons available on the 0.00 160.00 train between Dar es Salaam Port and 15 The World Bank Tanzania - Intermodal & Rail Development Project (P127241) RESULT_FRAME_TBL_IO Indicator Name DLI Baseline Intermediate Targets End Target 1 2 3 4 5 6 7 8 9 Isaka terminal (Number) Action: This indicator has been Revised Component C: Development of Isaka terminal and Dar es Salaam Port Platform (Action: This Component is New) Average loading and unloading time per a 12.00 4.00 train in each terminal (Hours) Action: This indicator has been Revised Component D: Institutional Strengthening and Capacity Building (Action: This Component is New) Maintenance program and internal arrangement in No Yes place between Cost Center and Business Units (Yes/No) Action: This indicator has been Revised Five year Business Plan for TRL in place No Yes (Yes/No) 16 The World Bank Tanzania - Intermodal & Rail Development Project (P127241) RESULT_FRAME_TBL_IO Indicator Name DLI Baseline Intermediate Targets End Target 1 2 3 4 5 6 7 8 9 Action: This indicator has been Revised MAIS established and functioning No No No No No Yes Yes Yes Yes Yes Yes (Yes/No) Action: This indicator has been Revised Business unit for the block train is No Yes properly staffed and functioning (Yes/No) Action: This indicator is New IO Table SPACE 17 The World Bank Tanzania - Intermodal & Rail Development Project (P127241) Annex 1: Updated Project Implementation Plan/Program 2015 2016 2017 2018 2019 2020 2021 Ref. CONTRACT PACKAGES No Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec CONSULTANCY CONTRACTS Designing Dar es Salaam Port, Ilala & C1 Isaka Terminal Track Layouts Inspection and Capacity Rating of C2 Railway Bridges & Culverts Detailed Bridge & Culvert Eng Design C3 and Preparation of Tender Documentation Preparation of Economic Analysis for C5 TIRP Consultant to Partner with TRC in Establishing Business Units and C6 Undertaking Associated Capacity Building Strengthening TRL Management - 3 year C14 contract Works Supervision: Package A, Lot 1 & C15 Lot 2 Works Supervision: Package B, Lot 1 & C16 Lot 2 Preparation of Tender Documents for C20 Track Rehabilitation Works & Track Maintenance Field Assessment and Preparation of C21 Tender Documents for Track Works & Track Maintenance Provision of Experts to Reinforce the C22 Implementation of TIRP Designing Infrastructure Maintenance C26 Organisation and Sustainable Maintenance Program within RAHCO Preparation of Tender Documents and C27 Supervision of Rehabilitation of RAHCO Building GOODS CONTRACTS Supply of 3 x 90t (3000HP) Locomotives G5 for Container Block Trains Supply of 2 x Refurbished Locomotives G6 for Engineering Trains G8 Supply of 44 x Freight Flat Wagons G10 Supply of Track Recording Car Supply and Installation of Train Control G12 System WORKS CONTRACTS Rehabilitation of RAHCO Building W1 (including roof) Package A, Lot 1: Construction, Dar - W2 Ngerengere Package A, Lot 2: Construction, W3 Ngerengere - Kilosa Package B. Lot 1: Construction, Kilosa - W4 Itigi Package B, Lot 2: Construction, Itigi - W5 Isaka New Works at Dar Port, Ilala & Isaka W6 Terminals 18