The World Bank Report No: ISR7708 Implementation Status & Results Turkey Railways Restructuring Project (P077328) Public Disclosure Copy Operation Name: Railways Restructuring Project (P077328) Project Stage: Implementation Seq.No: 13 Status: ARCHIVED Archive Date: 02-Oct-2012 Country: Turkey Approval FY: 2005 Product Line: IBRD/IDA Region: EUROPE AND CENTRAL ASIA Lending Instrument: Adaptable Program Loan Implementing Agency(ies): TCDD Key Dates Board Approval Date 09-Jun-2005 Original Closing Date 30-Sep-2009 Planned Mid Term Review Date Last Archived ISR Date 08-Jul-2012 Effectiveness Date 19-Jun-2006 Revised Closing Date 31-Dec-2013 Actual Mid Term Review Date 10-Nov-2008 Project Development Objectives Project Development Objective (from Project Appraisal Document) To (a) improve the effectiveness of railway operations on the Mersin-Toprakkale and Yenice-Bogazkopru lines by increasing capacity and improving service quality, and (b) lay the groundwork for restructuring TCDD by developing experience with financially viable contract arrangements for loss making public services and access pricing of infrastructure. These contractual arrangements and infrastructure pricing are key components of future reform to be implemented under the new railway framework law. Has the Project Development Objective been changed since Board Approval of the Project? � Yes No Component(s) Component Name Component Cost Modernization of infrastructure 159.30 TCDD staff adjustment & social mitigation under new Laws 23.90 Advisory services to the TCDD 3.40 Public Disclosure Copy TCDD staff training and re-training program 9.40 Public communication and surveys 0.20 Project Implementation costs 1.10 Overall Ratings Previous Rating Current Rating Progress towards achievement of PDO Moderately Unsatisfactory Moderately Unsatisfactory Overall Implementation Progress (IP) Moderately Unsatisfactory Moderately Unsatisfactory Overall Risk Rating Substantial Page 1 of 5 The World Bank Report No: ISR7708 Implementation Status Overview Freight Line Capacity Increase This component finances the installation of a signaling and telecommunications system on the Mersin-Toprakkale and Yenice - Bogazkopru lines. The signaling investment is 54% complete (physical measure). When finished,this investment is expected to relieve congestion on the railway lines to/from Mersin port so that more of the port traffic maybe handled Public Disclosure Copy by rail rather than road. This supports the Government's goal to shift traffic from road to rail, reducing road congestion,demand for additional road infrastructure and GHG emissions. The investment will benefit the railway financially by attracting freight traffic and improving network density. Staff Adjustment This component financed the end-of-employment, lump sum payments for retirement of 1,596 TCDD staff. All retirements were voluntary, involving no layoffs. The component was completedin2009. Advisory Services to TCDD Under this component studies have been successfully completed on (a) Internal FinancialControlsRisk Assessment, (b) Freight Marketing, (c) Rationalization of Passenger Services and Public Service Obligation (PSO), and(d)maintenance practices. It has supported the TCDD Financial Audit for 2009 and 2010; the audit of 2011 and 2012 are planned but have not yet been carried out. TCDD has also carried out pilots supporting reforms on public service contract and infrastructure charging. These pilots and studies prepare TCDD to manage reforms, but they can only be meaningfully implemented after revised Railway legislation is passed. TCDD Staff Training Under this component training has been successfully completed on(a)non-destructive testing, (b) project management, (c) how to delivery of on-line, computer based training, and (d) trainingoftrainers. TCDD Public Communications and Periodic Surveys Under this component three surveys of customers and stakeholders have been carried out. Project Restructurings The project was restructured in 2009 to focus it on the reforms and achievements that could be realizedwithinTurkey’s current legal framework for railways, pending passage of a new railway law. The project development objective and the results indicators were changed in this restructuring. The project was restructured again in 2011 to address land acquisition and building renovation activities that trigger Bank policies on involuntary resettlement (OP/BP 4.12) and physical cultural resources(OP/BP 4.11). The project was restructured in June 2012 to extend the project closing date until December 31, 2013. Locations Country First Administrative Division Location Planned Actual Turkey Not Entered Yenice Public Disclosure Copy Turkey Not Entered Ulukisla Turkey Not Entered Tunceli Turkey Not Entered Nevsehir Turkey Not Entered Mercin Turkey Not Entered Malatya Turkey Not Entered Konya Page 2 of 5 The World Bank Report No: ISR7708 Country First Administrative Division Location Planned Actual Turkey Kayseri Province Kayseri ✔ Public Disclosure Copy Turkey Not Entered Kahramanmaras Turkey Mersin Province Icel ✔ Turkey Not Entered Erzurum Turkey Not Entered Erzincan Turkey Not Entered Bogazkoeprue Istasyonu Turkey Not Entered Ankara Turkey Ankara Ankara ✔ Turkey Adana Province Adana ✔ Turkey Adana Adana ✔ Turkey Not Entered Adana Turkey Not Entered Osmaniye Turkey Not Entered Aksaray Turkey Not Entered Toprakkale Results Project Development Objective Indicators Indicator Name Core Unit of Measure Baseline Current End Target Increased traffic on Mersin-Toprakkale and Text Value 270,400 pkm 401,775 pkm 310,000 pkm Yenice-Bogazkopru lines 886,800 tkm 916,800 tkm 923,000 tkm Public Disclosure Copy Date 31-Dec-2008 31-Dec-2011 31-Dec-2013 Comments values exceed the targets for 2011 Increased service quality on Mersin-Toprakkale Text Value Average commercial speed: Mersin-Toprakkale: 35 Average commercial speed: and Yenice-Bogazkopru lines Mersin-Toprakkale: 35 Yenice - Bogazkopru: 25 Mersin-Toprakkale: 45 Yenice-Bogäzköprü: 25 Yenice-Bogäzköprü: 35 Date 31-Dec-2008 31-Dec-2011 31-Dec-2013 Comments Significant improvement is expected only after the Page 3 of 5 The World Bank Report No: ISR7708 infrastructure investment is completed. Increase in share of traffic to/from Mersin Port Text Value 5.9% 4.5 6.5% carried by rail Public Disclosure Copy Date 31-Dec-2008 31-Dec-2011 31-Dec-2013 Comments Less than baseline. Significant progress is expected only after the infrastructure investment is completed. Treasury and TCDD a) prioritize public support Text Value No experience with PSO PSO study with prioritization Prioritization of services & for passenger services based on value for No experience with of services completed and public service contract service criteria, b) based on experience of the infrastructure access network statement study prepared PSO pilot and PSO study agree financially underway Full network statement viable contract arran No experience with access prepared pricing Date 31-Dec-2008 31-Dec-2011 31-Dec-2013 Comments Intermediate Results Indicators Indicator Name Core Unit of Measure Baseline Current End Target Component One: Share of project works Text Value 0% 54% 100% completed Date 31-Dec-2008 30-Jun-2012 31-Dec-2013 Comments Component Three: TCDD Business Plan is Text Value None Indicator dropped as not implemented successfully. meaningful Date 31-Dec-2004 31-May-2011 30-Jun-2012 Comments TCDD agreed with team that this is not a meaningful indicator. Component Four: Number of staff trained 2,500 Text Value 0 362 trained directly and 2500 Public Disclosure Copy during the project implementation. 12,788 trained by staff that recieved the "training of trainers" instruction Date 31-Dec-2004 31-Dec-2011 30-Jun-2012 Comments Component Five: Number of independent Text Value 0 three completed Three completed surveys: 3. Date 31-Dec-2004 30-Jun-2012 30-Jun-2012 Comments Page 4 of 5 The World Bank Report No: ISR7708 Data on Financial Performance (as of 18-Jul-2012) Financial Agreement(s) Key Dates Project Ln/Cr/Tf Status Approval Date Signing Date Effectiveness Date Original Closing Date Revised Closing Date Public Disclosure Copy P077328 IBRD-47870 Effective 09-Jun-2005 13-Mar-2006 19-Jun-2006 30-Sep-2009 31-Dec-2013 Disbursements (in Millions) Project Ln/Cr/Tf Status Currency Original Revised Cancelled Disbursed Undisbursed % Disbursed P077328 IBRD-47870 Effective USD 184.70 184.70 0.00 126.79 62.97 69.00 Disbursement Graph Key Decisions Regarding Implementation Public Disclosure Copy none Restructuring History Board Approved on 06-Jul-2009, Level one Approved on 13-Jul-2011, Level two Approved on 28-Jun-2012 Related Projects There are no related projects. Page 5 of 5