The World Bank Report No: ISR15668 Implementation Status & Results Argentina Provincial Road Infrastructure Project (P070628) Public Disclosure Copy Operation Name: Provincial Road Infrastructure Project (P070628) Project Stage: Implementation Seq.No: 19 Status: ARCHIVED Archive Date: 27-Oct-2014 Country: Argentina Approval FY: 2005 Product Line: IBRD/IDA Region: LATIN AMERICA AND CARIBBEAN Lending Instrument: Specific Investment Loan Implementing Agency(ies): Key Dates Board Approval Date 07-Jun-2005 Original Closing Date 30-Jun-2012 Planned Mid Term Review Date Last Archived ISR Date 30-Mar-2014 Effectiveness Date 15-Sep-2006 Revised Closing Date 30-Jun-2015 Actual Mid Term Review Date Project Development Objectives Project Development Objective (from Project Appraisal Document) The proposed Project aims at improving the reliability of essential road assets that facilitate access of provincial production to the markets and the efficiency of their management as a means to support the country#s productive sector, competitiveness and economic growth. Thus, by building upon the achievements of the on-going Provincial Roads Project (AR-4093), the proposed Project will further the agenda in terms of rehabilitation and maintenance of the core provincial network, to meet the following specific objectives: (i) strengthen the planning process to support the preparation and implementation of comprehensive multi-year road programs; (ii) introduce the use of performance-based contracts as a key step toward implementing a sustainable and cost effective road management strategy; and (iii) bring about the required technical capabilities in the provincial road agencies to confront the introduction of new management strategies, gradually supporting their transformation into results-oriented organizations with enhanced capacities (planning, administration and supervision of contracts, environmental management, road safety management). Objectives (i) and (ii) apply only to those provinces that will participate in the works components of the Project while objective (iii), on a demand driven basis, will also be open to other provinces. In this respect, this Project can be seen as the first operation of a more comprehensive program that could include other provinces as they fulfill the requirements of this Project. Has the Project Development Objective been changed since Board Approval of the Project? Yes No Component(s) Public Disclosure Copy Component Name Component Cost Civil Works-CREMA 128.50 Civil Works-Rehabilitation and Paving 33.40 Road Maintenance 0.00 Sector Management and Institutional Building 7.00 Project Management and Technical Assistance 3.00 Overall Ratings Page 1 of 4 The World Bank Report No: ISR15668 Previous Rating Current Rating Progress towards achievement of PDO Moderately Unsatisfactory Moderately Unsatisfactory Overall Implementation Progress (IP) Moderately Unsatisfactory Moderately Unsatisfactory Public Disclosure Copy Overall Risk Rating Substantial Implementation Status Overview This project aims at improving the reliability of essential road assets through the introduction of Performance-based rehabilitation and maintenance contracts (CREMA) at the Provincial level. In addition, the project also seeks to strengthen technical capabilities at the provincial level. The Loan, amounting US$150 million, was complemented with an additional financing (AF) of US$175 million (Parent Loan was approved by the Board on June 2005, and declared effective on September 2006, whereas the AF was approved on January 2010 and declared effective on October 2011). The main objective of the AF was to help financing the costs associated with a financing gap under the civil works component. To date the parent project has disbursed US$140.5million (94% of total), whereas the AF disbursed US$63.2 million (36% of total). When the project began its implementation, it was evident that because of cost escalation, additional funds were required in order to complete the works (this was the rationale for the AF). Even though the AF was declared effective three years ago, 34% of the funds are still missing Subsidiary Agreements (Cordoba, Entre Rios and Chubut), although it is expected that the one for Cordoba will be formalized shortly. The situation described above negatively affects the performance of the project as does slow progress on institutional actions. In June 2013 the performance rating of the project was downgraded to Moderately Unsatisfactory, and an Action Plan was defined and agreed with the Government. The Plan contemplates the following activities: (i) signature of remaining Subsidiary Agreements; (ii) launching contracts for already identified activities an definition of subprojects for remaining funds; and (iii) structuring of an Institutional Strengthening Program (to be defined jointly with the Provinces). To date the Plan has only been partially fulfilled. Based on the assessment undertaken during last mission (June 2014), it is expected that fulfilling pending activities might be completed in early 2015. During the mission potential restructuring of th eproject was discussed. Locations Country First Administrative Division Location Planned Actual Argentina Not Entered Provincia de Entre Ríos Argentina Not Entered Provincia de Corrientes Argentina Not Entered Provincia de Santa Fe Argentina Not Entered Provincia del Neuquén Public Disclosure Copy Argentina Not Entered Provincia de Córdoba Argentina Not Entered Provincia del Chubut Results Project Development Objective Indicators Page 2 of 4 The World Bank Report No: ISR15668 Indicator Name Core Unit of Measure Baseline Current End Target Road assets preserved with aceptable average Text Value 3.0 Below 3.0 roughness (IRI) to avoid accumulation of future Date 01-Jun-2005 12-Nov-2013 30-Jun-2015 Public Disclosure Copy liabilities Comments last available data was from 2010. Intermediate Results Indicators Indicator Name Core Unit of Measure Baseline Current End Target Roads rehabilitated, Non-rural Kilometers Value 0.00 Date 01-Jun-2005 14-Nov-2013 30-Jun-2015 Comments (i) Coverage of CREMA This Core Sector Indicator is system in target network of presented as summary of 1,774 km (includes periodic three custom indicators and routine maintenance); (ii) already presented. 244 km of key productive roads rehabilitated; and 42 km of key productive roads paved Coverage of CREMA system in target network Text Value 0% 100% of 1,774 km Date 01-Jun-2005 14-Nov-2013 30-Jun-2015 Comments 244 km of key productive roads rehabilitated Text Value 0% 100% Date 01-Jun-2005 14-Nov-2013 30-Jun-2015 Comments 42 km of key productive roads paved Text Value 0% 100% Date 01-Jun-2005 14-Nov-2013 30-Jun-2015 Comments To be bid under AF loan. SA not yet signed. Public Disclosure Copy Data on Financial Performance (as of 27-Aug-2014) Financial Agreement(s) Key Dates Project Ln/Cr/Tf Status Approval Date Signing Date Effectiveness Date Original Closing Date Revised Closing Date P070628 IBRD-73010 Effective 07-Jun-2005 18-Apr-2006 15-Sep-2006 30-Jun-2012 30-Jun-2015 P070628 IBRD-78330 Effective 12-Jan-2010 11-Apr-2011 06-Oct-2011 30-Jun-2015 30-Jun-2015 Disbursements (in Millions) Project Ln/Cr/Tf Status Currency Original Revised Cancelled Disbursed Undisbursed % Disbursed Page 3 of 4 The World Bank Report No: ISR15668 P070628 IBRD-73010 Effective USD 150.00 150.00 0.00 140.53 9.47 94.00 P070628 IBRD-78330 Effective USD 175.00 175.00 0.00 63.15 111.85 36.00 Public Disclosure Copy Disbursement Graph Key Decisions Regarding Implementation The main focus for project implementation remains the fulfillment of the Action Plan agreed with the Government in June 2013. The team will start preparation for restructuring of the project. Restructuring History Board/AOB Decision on 12-Jan-2010 Public Disclosure Copy Related Projects P114018-AR- Provincial Road Infrastructure Project Additional Financing Page 4 of 4