The World Bank Report No: ISR10814 Implementation Status & Results Chile Ministry of Public Works Institutional Strengthening TAL (P102931) Public Disclosure Copy Operation Name: Ministry of Public Works Institutional Strengthening TAL Project Stage: Implementation Seq.No: 12 Status: ARCHIVED Archive Date: 26-Jun-2013 (P102931) Country: Chile Approval FY: 2007 Product Line: IBRD/IDA Region: LATIN AMERICA AND CARIBBEAN Lending Instrument: Technical Assistance Loan Implementing Agency(ies): Key Dates Board Approval Date 14-Jun-2007 Original Closing Date 31-Jan-2013 Planned Mid Term Review Date 08-Jun-2011 Last Archived ISR Date 10-Nov-2012 Effectiveness Date 27-Feb-2008 Revised Closing Date 31-Jan-2014 Actual Mid Term Review Date 08-Aug-2011 Project Development Objectives Project Development Objective (from Project Appraisal Document) The Project Development Objective is to assist the Government in achieving a sustainable and integrated approach to the planning of infrastructure; levels of service standards for infrastructure as well as model contracts and procedures that promote competition and assign risks appropriately; an integrated project management process; a regulatory framework for all of MOPW#s sectors of responsibility that increases consumer confidence in infrastructure service provision; and the legal and organizational separation of the areas of planning, contracting, execution and regulation of infrastructure provision. Has the Project Development Objective been changed since Board Approval of the Project? Yes No Component(s) Component Name Component Cost Integrated Planning 4.10 Standards, Contracts and Competition 3.25 Integrated Project Management 0.75 Public Disclosure Copy Regulatory Strengthening 1.40 Organizational Reform 1.90 Audit and additional activities 0.30 Overall Ratings Previous Rating Current Rating Progress towards achievement of PDO Moderately Satisfactory Moderately Satisfactory Overall Implementation Progress (IP) Moderately Satisfactory Moderately Satisfactory Overall Risk Rating Low Page 1 of 6 The World Bank Report No: ISR10814 Implementation Status Overview The project development continues to deliver its objectives. The authorities of the Ministry of Public Works and the Project Implementation Unit expressed their utmost support to the program, that enjoys a strong endorsement at all levels of the Ministry's organization. Moreover, the Undersecretary of Public Works is strongly committed with the project and acknowledged the profound impact that it has at all levels of the Ministry's organization. Another key factor for the current positive development trend is the leadership of the PIU Public Disclosure Copy within the Ministry's structures as well as the effective personal leadership showed by the project manager appointed on 2012. Locations No Location data has been entered Results Project Development Objective Indicators Indicator Name Core Unit of Measure Baseline Current End Target Increased return of infrastructure projects due Text Value 0% to the new planning methodology Date 21-Oct-2010 Comments Greater competition in bidding supported by Text Value fair risk-sharing arrangements embedded in Date contracts and consumer-responsive service Comments targets Greater responsiveness to consumer concerns Text Value related to levels of service; and greater Date oversight of performance by public sector Comments service providers as well as concessionaires Reduction in variance between values Text Value established at contract signature and final Date values at project execution Comments Normative and organizational structure that Text Value provides clear separation and definition of roles Date Public Disclosure Copy and responsibilities for planning, contracting, Comments works execution and oversight. Intermediate Results Indicators Page 2 of 6 The World Bank Report No: ISR10814 Indicator Name Core Unit of Measure Baseline Current End Target Share of projects approved based on new Text Value 0% 25% of projects that initiate a integrated planning methodology. phase of the project cycle Public Disclosure Copy (from prefeasibility to execution) adopted/initiated based on new planning methodology Date 29-Jun-2007 26-Apr-2011 31-Jan-2014 Comments A new planning methodology Preparation of new An update of the project is a key feature of the methodology suffering performance indicators will be Modernization Program of the significant delays. Planning provided in the next ISR once Ministry of PUblic Works directorate developing the PIU prepare the annual regional infrastructure plans report – after next supervision with service standards (new mission of August 2013. paradigm) and focus on selected clusters + assessment of road network condition Identify, define and adopt service quality Text Value 0% Service standards defined for standards in a wide set of works typologies 9 typology of works under the under the responsibility of the MOPW jurisdiction of MOPW Date 29-Jun-2007 26-Apr-2011 31-Jan-2014 Comments Identification of service quality An update of the project attributes relevant, indicators performance indicators will be and standards of service in provided in the next ISR once the following 7 types of works the PIU prepare the annual (Airport Concession, report – after next supervision Concession Road Works; jail mission of August 2013. concession; Lakeside Connectivity Project, Maritime and Fluvial Isolated Areas, BuildingsMOP, Stormwater; Rural Water). Standards Public Disclosure Copy included in performance based road maintenance contracts Number of concession contracts under the Text Value 0 7 contracts include, from jurisdiction of the MOPW that incorporate bidding stage, explicit service (explicitly) quality standards standards Date 26-Oct-2009 21-Oct-2010 31-Jan-2014 Comments inclusion of quality standards An update of the project performance indicators will be Page 3 of 6 The World Bank Report No: ISR10814 in bidding of Calama and provided in the next ISR once Antofagasta airports the PIU prepare the annual report – after next supervision mission of August 2013. Public Disclosure Copy More competition in biddings to be reached by Text Value Bidding documents and firms 80% of contracts signed by (i) improvements in bidders registry and consultants registry MOPW during the year 2012 (reglamento de obras y consultoria) and (ii) currently in use by MOPW using new bidding improved standard bidding documents documents. A third party, independent of MOPW to conduct an assessment of the impact of new bidding documents and improved "registro de contratistas" on intensity of competition Date 31-Dec-2007 26-Apr-2011 31-Jan-2014 Comments Proposal to change contractors registry elaborated and under review by MOPW authorities. No progress in improved standard bidding documents Reduction in the variance of the difference Text Value No baseline available Reduction of 15% in the between costs forecasted when contract is variance of cost deviations. signed and actual cost of works Measured against baseline that will include only projects under integrated project management Date 26-Oct-2009 26-Apr-2011 31-Jan-2014 Comments Consulting firm being hired to No progress prepare baseline. Note that more than 60 projects currently under integrated project management. Public Disclosure Copy A normative and organizational framework in Text Value MOPW does not have an Following laws approved by place that provides for clear separation of roles internal organization law that Congress: (i) New and responsibilities separates the roles of organizational structure of planning, implementation and MOPW (ii) New concessions supervision law (iii) Law that creates the Superintendency of Public Works Date 26-Oct-2009 26-Apr-2011 31-Dec-2013 Comments Concession law approved as Law 20410 (January 2010). Page 4 of 6 The World Bank Report No: ISR10814 Law that creates the Superintendency in Congress but not a priority for Pineraadministration Public Disclosure Copy Reduction of variance of construction time Percentage Value 0.00 15.00 between time envisaged when contract is Date 26-Apr-2011 31-Jan-2013 signed and actual construction time Comments Task to be developed by % reduction in indicator PMO but no progress has (variance) been made. Integrated project management under implementation in all directorates of the MOPW but still no measurement of time or cost savings from this new project management methodology Regulatory oversight system in place to be Text Value No regulatory oversight Regulatory oversight system used by entity independent of planning and system by an independent and mechanisms in place for execution divisionos of MOPW agency in place (currently the following sectors: aiports done in house by MOPW concessions and inter and personnel) urban roads concessions. Date 26-Oct-2009 26-Apr-2011 31-Jan-2013 Comments Significant progress in the monitoring of road concessions. Regulatory oversight system being applied to 20 interurban road concession contracts and 6 urban road concession contracts. Web based system (in the future will be publicly available) in place to monitor21 road concessions. Public Disclosure Copy Information being updated in real time. Quality of services and standards being measured in concessioned airports. Data on Financial Performance (as of 08-Jan-2013) Financial Agreement(s) Key Dates Project Ln/Cr/Tf Status Approval Date Signing Date Effectiveness Date Original Closing Date Revised Closing Date Page 5 of 6 The World Bank Report No: ISR10814 Project Ln/Cr/Tf Status Approval Date Signing Date Effectiveness Date Original Closing Date Revised Closing Date P102931 IBRD-74580 Effective 14-Jun-2007 30-Nov-2007 27-Feb-2008 31-Jan-2013 31-Jan-2014 Disbursements (in Millions) Public Disclosure Copy Project Ln/Cr/Tf Status Currency Original Revised Cancelled Disbursed Undisbursed % Disbursed P102931 IBRD-74580 Effective USD 11.70 11.70 0.00 4.00 7.70 34.00 Disbursement Graph Key Decisions Regarding Implementation The loan has seen an increased pace of project implementation and several long term consultancies under the modernization program were launched during 2012. The one year extension of the loan approved on January 2014 plus some pending changes in the procurement process are expected to be key factors to achieve the project development objectives. Public Disclosure Copy Restructuring History Level two Approved on 19-Dec-2012 Related Projects There are no related projects. Page 6 of 6