The World Bank Report No: ISR12915 Implementation Status & Results Argentina Norte Grande Road Infrastructure (P120198) Public Disclosure Copy Operation Name: Norte Grande Road Infrastructure (P120198) Project Stage: Implementation Seq.No: 6 Status: ARCHIVED Archive Date: 31-Dec-2013 Country: Argentina Approval FY: 2011 Product Line: IBRD/IDA Region: LATIN AMERICA AND CARIBBEAN Lending Instrument: Specific Investment Loan Implementing Agency(ies): Key Dates Board Approval Date 20-Dec-2010 Original Closing Date 30-Jun-2016 Planned Mid Term Review Date 15-Aug-2013 Last Archived ISR Date 14-Jun-2013 Effectiveness Date 23-Dec-2011 Revised Closing Date 30-Jun-2016 Actual Mid Term Review Date Project Development Objectives Project Development Objective (from Project Appraisal Document) The development objective of the proposed project is to reduce transport costs for users of provincial roads along selected corridors of the Norte Grande provinces, through the improvement of the quality of those roads and the introduction of improved road asset management tools and methods. Has the Project Development Objective been changed since Board Approval of the Project? Yes No Component(s) Component Name Component Cost Component 1: Rehabilitation, Upgrading and Reconstruction of Provincial Roads 365.00 Component 2: Institutional Development and Project Management 34.00 Overall Ratings Previous Rating Current Rating Progress towards achievement of PDO Moderately Satisfactory Moderately Satisfactory Public Disclosure Copy Overall Implementation Progress (IP) Moderately Satisfactory Moderately Satisfactory Overall Risk Rating Substantial Substantial Implementation Status Overview The Norte Grande Road Infrastructure Project was approved by the Board on December 20th, 2010 for an amount of US$ 400 million, and loan effectiveness was declared on December 23, 2011. The project is in its second year of implementation. Pipeline: the following sub-projects are under implementation: Contracts under Execution: Page 1 of 7 The World Bank Report No: ISR12915 -Provincial Route (PR) 3 in Chaco: Works started on March 2012. The work is completed with 99% of the contract certificated (by October 2013). This segment is sensitive form a social and environmental point of view. The Bank supported an analytical work to develop a conservation landscape in the Region of Chaco with a Special Focus on Road Infrastructure Works (results are available online). As part of the project's Environmental Plan, the civil works contracts required to the implementation of safe corridors for fauna. It is important to highlight that eight ground and aerial passages for faunas where executed, becoming the first road project in Argentina to include this type of ecological infrastructure. Public Disclosure Copy Also, a 4 km cycle path by the side of the road connecting an indigenous bilingual school with the surrounding towns was constructed as per the requests by local residents. Among the identified positive impacts, approximately 235 people were employed directly and an estimated of 390 people considering indirect jobs. Although it has not been measured yet by the DPV, there is a substantial increase in transit; also there is a new bus service connecting the town of Pampa del Indio with Villa Bermejito and other locations, which did not have public transport services before. Finally, another important initiative under this sub-project to highlight is the launching of the "Ruta de la Cultura Qom" initiative, aimed at generating economic opportunities for indigenous women and preserving the cultural heritage of the Qom culture. This is also the result of the communication strategy, IPP and GRM frameworks in place. During the last mission, the team expressed high satisfaction with the performance of these tasks and congratulated the technical team of the Province, the PIU and contractors. -PR 5 in Santiago del Estero: The original implementation period was 24 months, with a completion date of January 15, 2015; as of September 2013, 91.42%.of the works has been certified. The works was done much faster than the time provisions (near half of it) of the Work Plan, and it is scheduled for completion in late November 2013. This time difference, driven by the use of more equipment and labor, represents significant savings in terms of redetermination of prices. -PR 304 Tucuman: The contracts of each of the 3 lots are in place, the works started in July 2013, and each segment is moving forward at a different pace with an execution progress of near 10%. In the first segment, the Implementation Unit, the DPV and Contractor company , raised the need for a modification of the reconstruction technical solution specified under the contract, since the solution proposed in the bidding document was recently executed in another road work in the Province with IDB financing (RP No. 303 ), and the results were not satisfactory. In view of the modification of the project which involves a change in type of work, the Team requested the technical studies, specifications of the new items and an updated economic evaluation with new costs to accept the proposed modification. Also, the team requested teh DPV and the PIU to issue a formal technical approval of the proposed modification. - PR 9, Chaco: Project and bidding documents were reviewed and approved by the Bank. Proposals were evaluated and the evaluation report was approved by the Bank. The RPM gave the No Objection to the PIU decision of awarding the contract to the lowest bid. The contract was signed on October 29th, 2013, and initial works have started. Sub-projects under Review: - PR 18, Santiago del Estero: Procurement process finalized with RPM clearance of no objection letter to Borrower's Bid Evaluation Report and proposal for award of the contract. The No Objection Letter was sent on December 2, 2013. Project Implementation Unit (PIU) is in the process of finalizing documentation to sign the contract. On the Institutional Development component, the PIU presented to the Bank an Institutional strengthening plan to work with the provincial’s DPV executing projects. The Province of Chaco has completed the diagnosis of its current status, and a similar process is in progress for the DPVs of Tucuman and Santiago del Estero Provinces. The applied methodology coincides with the model prepared for other projects, and follows the criteria developed for the Program. An external consultant was hired to booster the process. Also, on November 12th, 2013 a note was published asking for expressions of interest for a consulting firm to develop a five years investment plan for road network in Tucuman. A proposal for an Public Disclosure Copy Institutional Strengthening Plan is expected to be presented to the Bank before the end of December 2013. The Bank team has expressed its concern to the Borrower regarding delays in the implementation of activities under the Institutional Strengthening component. After an initial delays in launching the procurement process, some progress has been done in the for the joint Impact Evaluation Study for PR No. 3 in Chaco (Pampa del Indio-Villa Rio Bermejito) and the Potable Water project in Pampa del Indio under the Norte Grande Water Project I. During the recent mission, the Bank Team advanced the work on the design of the sample for the study with the Statistics Office in Chaco. The PIU and the Province of Chaco (Ministry of Planning) are finalizing the Cooperation Agreement to be signed for the loan to finance the fieldwork to be coordinated by Chaco for baseline data collection (household surveys, etc). Locations Page 2 of 7 The World Bank Report No: ISR12915 Country First Administrative Division Location Planned Actual Argentina Not Entered Departamento de Concepción Public Disclosure Copy Argentina Not Entered Departamento de Santo Tomé Argentina Not Entered Santo Tomé Argentina Not Entered Pampa del Indio Argentina Misiones Provincia de Misiones ✔ Argentina Not Entered Partido de Libertador General San Martín Argentina Formosa Provincia de Formosa ✔ Argentina Corrientes Provincia de Corrientes ✔ Argentina Not Entered Concepción de la Sierra Argentina Not Entered Departamento de Apóstoles Argentina Tucumán Provincia de Tucumán ✔ Argentina Santiago del Estero Provincia de Santiago del Estero ✔ Argentina Salta Salta ✔ Argentina Not Entered Los Gutiérrez Argentina Jujuy Provincia de Jujuy ✔ Argentina Not Entered Partido de General Güemes Argentina Not Entered Departamento de Cruz Alta Argentina Chaco Provincia del Chaco ✔ Public Disclosure Copy Argentina Catamarca Provincia de Catamarca ✔ Argentina Not Entered Departamento de Burruyacú Argentina Not Entered Villa Río Bermejito Argentina Not Entered Urueña Results Project Development Objective Indicators Page 3 of 7 The World Bank Report No: ISR12915 Indicator Name Core Unit of Measure Baseline Current End Target Evolution of average network roughness on Number Value targeted provincial roads Date Public Disclosure Copy Comments Evolution of average network roughness on Number Value 5.00 4.40 2.80 targeted provincial roads (i) Rehabilitation and Sub Type Date 17-Nov-2010 01-Nov-2013 30-Jun-2016 Reconstruction Breakdown Comments (4,52 IRI RP 9*40,96 + 6,5 RP 304 T1*22,37 +4,23 RP304 T2*33,17 +2,2 RP5 *71,8+7,2 RP 18*42,10)/210,40 Km Evolution of average network roughness on Number Value 8.90 4.00 2.60 targeted provincial roads (ii) Upgradings Sub Type Date 17-Nov-2010 01-Nov-2013 30-Jun-2016 Breakdown Comments (1,8 IRI RP 3 S 1*33,35 + 1,9 RP 3 S 2*26,10 + 8,06 IRI RP304 T3*31,36)/90,81 Km Quality of service measured through user's Percentage Value perception Date Comments Baseline established for RP3 target end value is X+20% (Chaco). Other provinces that enter project will have baselines established too. Quality of service measured through user's Percentage Value 11.00 29.00 31.00 perception (RP 3 Chaco) Sub Type Date 31-Jul-2012 01-Nov-2013 30-Sep-2016 Breakdown Comments Baseline of users expressing End target originally satisfaction with the quality of supposed to be baseline + their road network 20%. Percentage reduction in generalized travel Percentage Value costs on targeted roads, measured per vehicle- Date Public Disclosure Copy kilometer in constant US dollars using HDM4 Comments Percentage reduction in generalized travel Percentage Value 0.00 0.00 21.00 costs on targeted roads, measured per vehicle- Sub Type Date 17-Nov-2010 31-Jul-2012 30-Jun-2016 kilometer in constant US dollars using HDM4 (i) Breakdown Comments for light vehicles (with base of US$ 0.28 per veh-km) Page 4 of 7 The World Bank Report No: ISR12915 Percentage reduction in generalized travel Percentage Value 0.00 0.00 37.00 costs on targeted roads, measured per vehicle- Sub Type Date 17-Nov-2010 31-Jul-2012 30-Jun-2016 kilometer in constant US dollars using HDM4 Breakdown Comments (ii) for omni-buses (with base of US$ 5.55 per Public Disclosure Copy veh-km) Percentage reduction in generalized travel Percentage Value 0.00 0.00 28.00 costs on targeted roads, measured per vehicle- Sub Type Date 17-Nov-2010 31-Jul-2012 30-Jun-2016 kilometer in constant US dollars using HDM4 Breakdown Comments (iii) for heavy vehicles (with base of US$ 1.60 per veh-km) Number of provinces with multi-annual road Number Value 0.00 0.00 5.00 maintenance plans and road database Date 17-Nov-2010 31-Jul-2012 30-Jun-2016 management systems in place (cumulative) Comments There are three provinces working on the institutional strengthening plan that will lead to a multi-annual road maintenance plan. Chaco has completed the diagnosis and Tucuman and Santiago del Estero are in the process of contracting an external consultant to assist on the plan. Intermediate Results Indicators Indicator Name Core Unit of Measure Baseline Current End Target Roads rehabilitated, Non-rural Kilometers Value 0.00 131.25 495.00 Date 17-Nov-2010 01-Nov-2013 30-Jun-2016 Comments 59.45 Km rehabilitated along PR No. 3 in Chaco. Public Disclosure Copy 71.80 Km already rehabilitated along PR No. 5 in Sgo. del Estero. Annual Average Daily Traffic (AADT) on Number Value 815.00 815.00 945.00 targeted roads Date 17-Nov-2010 31-Jul-2012 30-Jun-2016 Comments Baseline value obtained form RP 94 in Corrientes Province Share of rural population with access to an all- Percentage Value season road Date 17-Nov-2010 28-Apr-2013 30-Jun-2016 Page 5 of 7 The World Bank Report No: ISR12915 Comments Results for the baseline Baseline value has been End target value Y+10% indicator in the province of obtained: Chaco (for RP3) have been PR 3 in Chaco: 20,849 inhab. obtained. Other provinces PR 5 in Sgo. del Estero: Public Disclosure Copy getting into the project have 2,873 inhab. been informed about the need PR 304 in Tuc.: 9.057 nhab. to collect and validate this indicator. Number of rural people with access to an all- Number Value season road Sub Type Supplemental Share of rural population with access to an all Percentage Value 29.00 29.00 49.00 weather road (RP 3 Chaco Province) Sub Type Date 31-Jul-2012 28-Apr-2013 30-Jun-2016 Breakdown Comments Baseline data from Chaco Target from Chaco province province survey and analysis. survey and analysis Annual Performance Reports indicating results Text Value None Yes achieved by DPVs participating in the Date institutional development component prepared Comments and publicly disseminated Data on Financial Performance (as of 19-Nov-2013) Financial Agreement(s) Key Dates Project Ln/Cr/Tf Status Approval Date Signing Date Effectiveness Date Original Closing Date Revised Closing Date P120198 IBRD-79910 Effective 20-Dec-2010 04-May-2011 23-Dec-2011 30-Jun-2016 30-Jun-2016 Disbursements (in Millions) Project Ln/Cr/Tf Status Currency Original Revised Cancelled Disbursed Undisbursed % Disbursed P120198 IBRD-79910 Effective USD 400.00 400.00 0.00 197.32 202.68 49.00 Public Disclosure Copy Disbursement Graph Page 6 of 7 The World Bank Report No: ISR12915 Public Disclosure Copy Key Decisions Regarding Implementation The Norte Grande Road Infrastructure Project was approved by the Board on 20th December 2010 for an amount of US$ 400 million. The project was declared effective on December 23, 2011. Two of the sub-projects are almost completed: Provincial Road No. 3 in Chaco (2contracts awarded in December 15, 2011), and Provincial Road No. 5 in Santiago del Estero (contract Awarded in December 2012); and there has been important progress for another two sub-projects: Provincial Road No. 304 in Tucuman (3 contracts awarded in April 2013) and Provincial Road No. 9 in Chaco (2 contracts awarded in October 2013). There is one sub-project that is in the process of signing the contract: Provincial Road No. 18 in Santiago del Estero (the evaluation report and proposal for contract award was reviewed by the RPM and the No objection was issued December 2nd, 2013). The PIU has anticipated that they will send a new sub-project for the Province of Catamarca in the next weeks for Bank review. The project disbursed over US$140 million in CY2013, the largest amount disbursed by an investment loan in the entire Argentina portfolio, with important consequences for net flows in the country, as highlighted with satisfaction by representatives of the Ministry of Economy at the opening and closing meetings of the mission held in November 2013. In its second year of implementation, the project has disbursed 49.33% of the loan amount. Restructuring History There has been no restructuring to date. Public Disclosure Copy Related Projects There are no related projects. Page 7 of 7