The World Bank Urban Transport in Metropolitan Areas (P095485) REPORT NO.: RES24967 DOCUMENT OF THE WORLD BANK RESTRUCTURING PAPER ON A PROPOSED PROJECT RESTRUCTURING OF URBAN TRANSPORT IN METROPOLITAN AREAS APPROVED ON OCTOBER 20, 2009 TO ARGENTINE REPUBLIC TRANSPORT LATIN AMERICA AND CARIBBEAN Regional Vice President: Axel van Trotsenburg Country Director: Jesko S. Hentschel Senior Global Practice Director: Makhtar Diop Practice Manager/Manager: Gylfi Palsson Task Team Leader: Camila Rodriguez Hernandez, Santiago Ezequiel Arias The World Bank Urban Transport in Metropolitan Areas (P095485) I. BASIC DATA Product Information Project ID Financing Instrument P095485 Investment Project Financing Original EA Category Current EA Category Partial Assessment (B) Partial Assessment (B) Approval Date Current Closing Date 20-Oct-2009 30-Jun-2019 Organizations Borrower Responsible Agency Argentine Republic Ministry of Transport Project Development Objective (PDO) Original PDO The overall development objective of the program is to improve the quality and sustainability of urban transport systems in Argentine Metropolitan Areas, through the improvement of sectoral decision making frameworks and by giving priority to public transport modes in the urban transport sector. The project (APL1) development objectives contribute to the overall program development objective by: (i) supporting the design and creation of a multijurisdictional Metropolitan Transport Agency for the Buenos Aires Metropolitan Area (AMBA); (ii) strengthening the institutional capacity of the transport authorities in decision making, planning, priority setting, and resource allocation in urban transport; (iii) improving the quality and performance of urban transport infrastructure and/orservices in medium size Metropolitan Areas; and (iv) improving the physical integration and access to public transport networks in the Buenos Aires Metropolitan Area. Summary Status of Financing Net Ln/Cr/Tf Approval Signing Effectiveness Closing Commitment Disbursed Undisbursed IBRD-87000 27-Jan-2017 09-May-2017 07-Jun-2017 30-Jun-2019 45.00 33.69 11.31 IBRD-77940 20-Oct-2009 11-Aug-2010 26-Nov-2010 31-Dec-2017 149.68 149.68 0 The World Bank Urban Transport in Metropolitan Areas (P095485) Policy Waiver(s) Does this restructuring trigger the need for any policy waiver(s)? No I. SUMMARY OF PROJECT STATUS AND PROPOSED CHANGES A. Summary of Proposed Changes The proposed level two restructuring of the Project consist of an increase of the percentage of Bank financing for category 1, “civil works”, from 70 percent to 100 percent, of the Additional Financing Loan 8700-AR. B. Project Status The Project was approved by the Board on October 20, 2009, in the amount of USD 149.68 million (Loan 7794-AR now fully disbursed and closed since December 31, 2017). An Additional Financing of USD 45.0 million was approved in January 2017 with an original closing date of June 30, 2019. The Additional Financing has currently disbursed USD 33,7 million, which represents about 75 percent of the loan. Progress towards achievement of the Development Objective (DO) and the Overall Implementation Progress (IP) are both rated Satisfactory. Most targets for the intermediate indicators have been met and all planned activities that contribute to the overall development objective of the project have been completed, with the exception of the Saenz Transfer Station, which is the only remaining investment currently underway. C. Rationale for Restructuring The increase in the Bank financing of eligible expenditures for category 1 (civil works) from 70 percent to 100 percent has been requested by the Borrower to accelerate the completion of civil works by providing the PIU with more flexibility to execute payments, without the need of having counterpart funds available. The increase in the Bank financing would be applied retroactively to payments made from January 1, 2019. The Bank and the Borrower have agreed on the cut-off procedures to submit Withdrawal Applications under the proposed new financing percentages, effective January 1, 2019. No adjustment is required to the format of the IFR’s. All contracts for which adjustments/re-imputations are needed, have been clearly identified. There is only one remaining investment, the Saenz Transfer Station, with a total contract amount initially estimated at USD 43 million. Given the exchange rate fluctuations, a balance of approximately USD 4 million is projected to remain uncommitted when the works are completed. This restructuring will not change the PDO, physical goals of ongoing civil works, monitoring indicators, or safeguards category. The restructuring satisfies the requirements of the Bank’s procedures for Investment Project Financing in that: i. Neither the loan in particular, nor the country (Argentina) in general, is subject to an ongoing suspension of disbursements; and ii. No audit reports for the project are outstanding or are not satisfactory to the Bank. II. DETAILED CHANGES The World Bank Urban Transport in Metropolitan Areas (P095485) REALLOCATION BETWEEN DISBURSEMENT CATEGORIES Current Current Actuals + Proposed Disbursement % Ln/Cr/TF Expenditure Allocation Committed Allocation (Type Total) Category Current Proposed IBRD- CW-Integration 87000-001 Subp - Parts C2 42,216,671.00 22,963,387.60 42,216,671.00 70.00 100 Currency: & C5 USD GO, CS and Non- 2,570,829.00 1,612,778.46 2,570,829.00 100.00 100.00 CS OP under Part E 100,000.00 597.19 100,000.00 100.00 100.00 of the Project Interest Rate CAP/COLLAR 0.00 0.00 0.00 premium Total 44,887,500.00 24,576,763.25 44,887,500.00