The World Bank Report No: ISR10404 Implementation Status & Results Argentina Provincial Road Infrastructure Project (P070628) Public Disclosure Copy Operation Name: Provincial Road Infrastructure Project (P070628) Project Stage: Implementation Seq.No: 16 Status: ARCHIVED Archive Date: 29-Jun-2013 Country: Argentina Approval FY: 2005 Product Line: IBRD/IDA Region: LATIN AMERICA AND CARIBBEAN Lending Instrument: Specific Investment Loan Implementing Agency(ies): Key Dates Board Approval Date 07-Jun-2005 Original Closing Date 30-Jun-2012 Planned Mid Term Review Date Last Archived ISR Date 28-Oct-2012 Effectiveness Date 15-Sep-2006 Revised Closing Date 30-Jun-2015 Actual Mid Term Review Date Project Development Objectives Project Development Objective (from Project Appraisal Document) The proposed Project aims at improving the reliability of essential road assets that facilitate access of provincial production to the markets and the efficiency of their management as a means to support the country#s productive sector, competitiveness and economic growth. Thus, by building upon the achievements of the on-going Provincial Roads Project (AR-4093), the proposed Project will further the agenda in terms of rehabilitation and maintenance of the core provincial network, to meet the following specific objectives: (i) strengthen the planning process to support the preparation and implementation of comprehensive multi-year road programs; (ii) introduce the use of performance-based contracts as a key step toward implementing a sustainable and cost effective road management strategy; and (iii) bring about the required technical capabilities in the provincial road agencies to confront the introduction of new management strategies, gradually supporting their transformation into results-oriented organizations with enhanced capacities (planning, administration and supervision of contracts, environmental management, road safety management). Objectives (i) and (ii) apply only to those provinces that will participate in the works components of the Project while objective (iii), on a demand driven basis, will also be open to other provinces. In this respect, this Project can be seen as the first operation of a more comprehensive program that could include other provinces as they fulfill the requirements of this Project. Has the Project Development Objective been changed since Board Approval of the Project? Yes No Component(s) Public Disclosure Copy Component Name Component Cost Civil Works-CREMA 128.50 Civil Works-Rehabilitation and Paving 33.40 Road Maintenance 0.00 Sector Management and Institutional Building 7.00 Project Management and Technical Assistance 3.00 Overall Ratings Page 1 of 4 The World Bank Report No: ISR10404 Previous Rating Current Rating Progress towards achievement of PDO Moderately Satisfactory Moderately Unsatisfactory Overall Implementation Progress (IP) Moderately Satisfactory Moderately Unsatisfactory Public Disclosure Copy Overall Risk Rating Moderate Moderate Implementation Status Overview This project aims at improving the reliability of essential road assets through the introduction of Performance-based rehabilitation and maintenance contracts (CREMA) at the Provincial level. In addition, the project also seeks to strengthen technical capabilities at the provincial level.The Loan, amounting US$150 million, was complemented with an additional financing (AF) of US$175 million (Parent Loan was approved by the Board on June 2005, and declared effective on September 2006, whereas the AF was approved on January 2010 and declared effective on October 2011). The main objective of the AF was to help financing the costs associated with a financing gap under the civil works component. To date the parent project has disbursed US$140.5million (94% of total), whereas the AF disbursed US$25.6 million (14.6% of total). Out of the target of 2,060 km of roads to be rehabilitated, 1,465 km (71%) are under contract (9 CREMA contracts covering 1,272 km and 2 traditional contracts covering 193km). Participating Provinces were required to establish Subsidiary Agreements (under both Credits). Because of cost escalation, it was evident that additional resources would be required to complete ongoing works. This was the rational for the AF approved early in 2010. Delays declaring effective the new Loan, and the fact that to date only 3 out of 6 new Subsidiary Agreements have been signed, are negatively affecting project implementation. The signature of remaining 3 Subsidiary Agreements (Cordoba, Corrientes and Chubut) is one of the most urgent actions in order to continue with project implementation. Other two main issues to be addressed in the upcoming months are: (i) structuring of an Institutional Strengthening Program (to be defined jointly with the Provinces); and (ii) definition of activities to be financed with remaining funds (those that are not yet allocated). Missions were carried out on November 2012 and June 2013. During those two mission the Bank team completed the Mid-Term Review. This ISR is based on the agreements reached during these visits. Locations Country First Administrative Division Location Planned Actual Argentina Not Entered Provincia de Entre Ríos Argentina Not Entered Provincia de Corrientes Argentina Not Entered Provincia de Santa Fe Argentina Not Entered Provincia del Neuquén Public Disclosure Copy Argentina Not Entered Provincia de Córdoba Argentina Not Entered Provincia del Chubut Results Project Development Objective Indicators Page 2 of 4 The World Bank Report No: ISR10404 Indicator Name Core Unit of Measure Baseline Current End Target Road assets preserved with aceptable average Text Value 3.0 Below 3.0 roughness (IRI) to avoid accumulation of future Date 01-Jun-2005 07-Jun-2013 30-Jun-2015 Public Disclosure Copy liabilities Comments last available data was from 2010. Intermediate Results Indicators Indicator Name Core Unit of Measure Baseline Current End Target Coverage of CREMA system in target network Text Value 0% 71% 100% of 1,774 km Date 01-Jun-2005 07-Jun-2013 30-Jun-2015 Comments 244 km of key productive roads rehabilitated Text Value 0% 79% 100% Date 01-Jun-2005 07-Jun-2013 30-Jun-2015 Comments 42 km of key productive roads paved Text Value 0% 0 100% Date 01-Jun-2005 15-Jun-2012 30-Jun-2015 Comments To be bid under AF loan. SA not yet signed. Data on Financial Performance (as of 14-May-2013) Financial Agreement(s) Key Dates Project Ln/Cr/Tf Status Approval Date Signing Date Effectiveness Date Original Closing Date Revised Closing Date P070628 IBRD-73010 Effective 07-Jun-2005 18-Apr-2006 15-Sep-2006 30-Jun-2012 30-Jun-2015 P070628 IBRD-78330 Effective 12-Jan-2010 11-Apr-2011 06-Oct-2011 30-Jun-2015 30-Jun-2015 Disbursements (in Millions) Project Ln/Cr/Tf Status Currency Original Revised Cancelled Disbursed Undisbursed % Disbursed Public Disclosure Copy P070628 IBRD-73010 Effective USD 150.00 150.00 0.00 140.53 9.47 94.00 P070628 IBRD-78330 Effective USD 175.00 175.00 0.00 25.64 149.36 15.00 Disbursement Graph Page 3 of 4 The World Bank Report No: ISR10404 Public Disclosure Copy Key Decisions Regarding Implementation The key activity in the upcoming months continues to be the presentation to the Bank of the remaining signed Subsidiary Agreements (Cordoba, Corrientes and Chubut). Other two main activities are: (i) structuring of an Institutional Strengthening Program and (ii) definition of use of funds not yet allocated (under the works component). Restructuring History Board/AOB Approval on 12-Jan-2010 Related Projects P114018-AR- Provincial Road Infrastructure Project Additional Financing Public Disclosure Copy Page 4 of 4