The World Bank Second Phase of the Central Asia Road Links Program (P145634) REPORT NO.: RES33783 DOCUMENT OF THE WORLD BANK RESTRUCTURING PAPER ON A PROPOSED PROJECT RESTRUCTURING OF SECOND PHASE OF THE CENTRAL ASIA ROAD LINKS PROGRAM APPROVED ON FEBRUARY 25, 2015 TO MINISTRY OF FINANCE TRANSPORT & DIGITAL DEVELOPMENT EUROPE AND CENTRAL ASIA Regional Vice President: Cyril E Muller Country Director: Lilia Burunciuc Senior Global Practice Director: Jose Luis Irigoyen Practice Manager/Manager: Binyam Reja Task Team Leader: Cordula Rastogi, Aidai Bayalieva The World Bank Second Phase of the Central Asia Road Links Program (P145634) I. BASIC DATA Product Information Project ID Financing Instrument P145634 Investment Project Financing Original EA Category Current EA Category Partial Assessment (B) Partial Assessment (B) Approval Date Current Closing Date 25-Feb-2015 31-Aug-2020 Organizations Borrower Responsible Agency Ministry of Finance Ministry of Transport Project Development Objective (PDO) Original PDO The Central Asia Road Links (CARs) program has the overall development objective to increase transport connectivity between neighboring countries in Central Asia along priority cross-border road links and to support improvements in road operations and asset management practices. The program is the result of a collaborative effort initiated by respective governments in the Central Asia region which has been developed as a regional, multi-phase program considered as a regional project under IDA16 and IDA 17 with substantialtransformational impact. The project development objective (PDO) of the Second Phase of the Central Asia Road Links Program (CARs-2) is to increase transport connectivity between the Republic of Tajikistan and neighboring countries along priority cross-border road links in Sugd Oblast and to support improvements in road operations and asset management practices. The road sections to be financed under CARs-2 prioritize connectivity between Sugd Oblast in Tajikistan with Batken and Osh Oblasts in the Kyrgyz Republic and Ferghana Oblast in Uzbekistan. Summary Status of Financing Net Ln/Cr/Tf Approval Signing Effectiveness Closing Commitment Disbursed Undisbursed IDA-55930 25-Feb-2015 16-Apr-2015 12-Oct-2015 31-Aug-2020 38.25 21.68 15.66 IDA-D0300 25-Feb-2015 16-Apr-2015 12-Oct-2015 31-Aug-2020 6.75 6.48 0 The World Bank Second Phase of the Central Asia Road Links Program (P145634) Policy Waiver(s) Does this restructuring trigger the need for any policy waiver(s)? No II. SUMMARY OF PROJECT STATUS AND PROPOSED CHANGES Project implementation status as well as progress towards achieving the PDOs of the on-going Second Phase of the Central Asia Road Links Program (CARs-2 Project) is satisfactory and the Project is expected to close on August 31, 2020.. Overall progress of civil works (component 1) related to the rehabilitation of priority cross-border road links in Sugd Oblast is about 95 percent as of July 2018. Activities under the institutional components (component 2) are progressing as well, albeit at a slower speed. Project management and implementation is satisfactory. According to the projections, the Ministry of Transport of the Republic of Tajikistan expects savings under category 1 (civil works) of US$10.5 million. The Ministry of Finance and Ministry of Transport of the Republic of Tajikistan and the World Bank team came to an agreement to use these project savings to complete on-going activities under CARs-2 as well as prepare more detailed work under the Draft Transport Sector Development Strategy (component 2 of the Project), namely the development of preparatory studies and reports for proposed rehabilitation of additional transport links and sector reform in the country to prepare for subsequent proposed projects to be financed by the World Bank (estimated to cost about US$2.5 million). Project savings are also planned to be used for on-going activities under component 1 and 2 the CARs-2 Project, including the (i) installation of the remaining traffic counters and additional solar panels, (ii) procurement of a server, as well as (iii) rehabilitation of remaining 6.7 km of the section from Kanibadam to Patar. In this regard, the Ministry of Finance has issued a request letter to the World Bank (dated August 8, 2018, reference #5/5-19/116) to consider revising the category description (category 1) under the Financing Agreement for the Credit. The Ministry of Finance is therefore requesting is to add to the existing description of category 1 under the Credit Financing Agreement additional categories, including "goods, non-consulting services, consultants' services for the project" which provides 83% financing from IDA. III. DETAILED CHANGES REALLOCATION BETWEEN DISBURSEMENT CATEGORIES Current Current Actuals + Proposed Disbursement % Ln/Cr/TF Expenditure Allocation Committed Allocation (Type Total) Category Current Proposed The World Bank Second Phase of the Central Asia Road Links Program (P145634) IDA-55930- Works, goods, 001 non-consulting Currency: services, 26,500,000.00 15,335,901.86 26,500,000.00 83.00 83.00 XDR consultants’ services for the Project Total 26,500,000.00 15,335,901.86 26,500,000.00