The World Bank Sao Paulo State Sustainable Transport Project (P127723) REPORT NO.: RES28207 RESTRUCTURING PAPER ON A PROPOSED PROJECT RESTRUCTURING OF SAO PAULO STATE SUSTAINABLE TRANSPORT PROJECT APPROVED ON JUNE 14, 2013 TO STATE OF SAO PAULO TRANSPORT GLOBAL PRACTICE LATIN AMERICA AND CARIBBEAN Regional Vice President: Jorge Familiar Calderon Country Director: Martin Raiser Senior Global Practice Director: Jose Luis Irigoyen Practice Manager/Manager: Juan Gaviria Task Team Leader: Gregoire Francois Gauthier, Satoshi Ogita The World Bank Sao Paulo State Sustainable Transport Project (P127723) ABBREVIATIONS AND ACRONYMS CETESB Environmental Agency (Companhia Ambiental do Estado de São Paulo) CONSEMA State of Sao Paulo Environment Council CREMA Performance Based contracts for rehabilitation and road maintenance DER-SP Road Agency, Sao Paulo State Government DRM Disaster Risk Management EA Environmental Assessment EEZ Economic and Ecological Zoning IG Geologic Institute (Instituto Geológico) MIGA Multilateral Investment Guarantee Agency NHSFO Non-Honoring of Sovereign Financial Obligations Product PPP Private Public Partnership SLT Secretariat of Logistics and Transport SMA Environment Secretariat SPDR Planning and Regional Development Secretariat The World Bank Sao Paulo State Sustainable Transport Project (P127723) Brazil Sao Paulo Sustainable Transport Project (P127723) CONTENTS Basic data I. Project Status and Rationale for Restructuring II. Description of Proposed Changes III. Summary of Changes IV. Detailed Changes Results Framework Annex 1: List of eligible roads The World Bank Sao Paulo State Sustainable Transport Project (P127723) BASIC DATA Product Information Project ID Financing Instrument P127723 Investment Project Financing Original EA Category Current EA Category Partial Assessment (B) Partial Assessment (B) Approval Date Current Closing Date 14-Jun-2013 31-Mar-2019 Organizations Borrower Responsible Agency Secretariat of Transport and Logistics, Road Agency (DER- State of Sao Paulo SP) Project Development Objective (PDO) Original PDO Contribute to the improvement of the State’s transport and logistics efficiency and safety while enhancing the Borrower’s capacity in environmental and disaster risk management. OPS_TABLE_PDO_CURRENTPDO Summary Status of Financing Net Ln/Cr/Tf Approval Signing Effectiveness Closing Commitment Disbursed Undisbursed IBRD-82720 14-Jun-2013 24-Sep-2013 18-Dec-2013 31-Mar-2019 300.00 216.12 83.88 Policy Waiver(s) Does this restructuring trigger the need for any policy waiver(s)? No The World Bank Sao Paulo State Sustainable Transport Project (P127723) I. PROJECT STATUS AND RATIONALE FOR RESTRUCTURING A. PROJECT STATUS 1. The Project was approved on June 14, 2013 and became effective on December 18, 2013. This project is a US$729 million operation financed by a US$300 million of the World Bank loan, US$300 million of private bank financing and US$129 million of State of São Paulo counterpart funds. The project was restructured once, in 2015, including changes in: (i) the financing plan, with an additional US$300 million financed by a private bank and guaranteed by a MIGA Non-Honoring of Financial Sovereign Obligations guarantee; (ii) the components and their costs, additional financing having been allocated to the roadworks component; and (iii) the Result Framework, end-targets having been adjusted to results achievable with an available larger financing. That restructuring did not involve any change in PDO nor loan closing date extension. 2. In June 2018 (latest approved ISR), progress towards achievement of the Project Development Objective (PDO) and Overall Implementation Progress were both rated Moderately Satisfactory. In June 2018, both ratings were upgraded from Moderately Unsatisfactory to Moderately Satisfactory, based on substantial implementation progress over the first semester of 2018 and improved likelihood of achieving the PDO: all major roadworks were contracted and critical institutional strengthening activities were, at least, in bidding final stages. The September 2018 supervision mission concluded that: (i) three of the five PDO indicators are on track, but would require more time to be achieved. The following two indicators are not on track: “percentage of export products transported on the Tiete river” and “number of contingency plans established for selected UBAs”. They require additional implementation time for achievement; (ii) six out of eight intermediate result indicators are on track but are also delayed. Finally, Project Management and Monitoring and Evaluation were rated Satisfactory; Financial Management, Procurement and Counterpart Funding were rated Moderately Satisfactory. 3. The Overall safeguards compliance rating is Moderately Satisfactory, reflecting Moderately Satisfactory ratings for Environmental Assessment (OP/BP 4.01) and Natural habitats (OP/BP 4.04); all other triggered policies are rated Satisfactory. While the inclusion of roadworks with potentially higher environmental and social impact has increased these risks, safeguards compliance is good overall, and no major safeguards issue has been identified. 4. On September 30, 2018, disbursements under the IBRD loan reached 72 percent. While disbursements increased quickly on the onset of the Project, until mid-2015, they plateaued until mid-2017 because: (i) project implementation was delayed, as detailed in point 7 below; and (ii) most project disbursements were drawn from the private bank loan. Since mid-2017, disbursements have slowly improved and are projected to further improve, with 91 percent of the project resources committed. B. RATIONALE FOR RESTRUCTURING 5. The proposed restructuring is deemed necessary for the Project to achieve its intended objectives. This proposed restructuring is required because of: (i) delays in implementation, both on the physical and institutional strengthening components; (ii) current Result Framework not capturing fully the Project outcomes and results; and (iii) the list of highways eligible to Project financing having been modified. The World Bank Sao Paulo State Sustainable Transport Project (P127723) 6. This restructuring also results from the successful completion, in Sept. 2018, of a prerequisite Action Plan agreed upon between the State of São Paulo and the World Bank. This Action Plan included three key actions deemed to be necessary for the Project to be on-track after restructuring: (i) two critical – SP-250 and SP-270 highways – roadworks bidding documents cleared by OPRC; (ii) all other major roadworks contracted; and (iii) critical institutional strengthening activities approved by the State’s Comitê Gestor, an entity directly reporting to the Governor and essentially aiming at cutting costs and delaying as much as possible for activities deemed to be fully necessary. 7. Loan closing date extension. A loan closing date extension is required for selected Project indicators to reach their end-targets and complete critical works and institutional strengthening activities. Without loan closing date extension, no project indicators will reach its end-target. On roadworks side, Project implementation has suffered from severe implementation delays stemming from engineering design preparation, roadworks contracting, change of priorities of the São Paulo State government in highway prioritization and administrative hurdles within the São Paulo State government delaying the delivery of critical technical assistance activities. On the physical component side (roadworks), preparing the engineering designs for the roadworks included in the 2015 restructuring took about a year in engineering designs bidding and execution. Once the engineering designs were completed, the State of São Paulo wanted to reprioritize the highways eligible to the project financing; this situation, which blocked the project for more than a year. This situation resulted from cost overruns the State of São Paulo experienced on their flagship transport investment project, the São Paulo ring-road (Rodoanel): the State of São Paulo requested the IDB to cover these Rodoanel cost overruns and the World Bank to finance highway rehabilitation initially included in the IDB highway loan to the State of São Paulo. On the institutional strengthening side, implementation has suffered from restrictions imposed by the State’s Comitê Gestor, for several activities focusing on road safety management, environmental monitoring and disaster risk management. 8. Adjustment of the Results Framework. Proposed adjustments to the Results Framework maintain the ambitions of the Project but allow the Results Framework to better capture Project results and outcomes. While the PDO remains the same, the rationale for adjusting the Results Framework is: (i) the current Result Framework does not fully capture the theory of change supported by the Project; (ii) some indicators initially included in the Result Framework prove to be no longer relevant; (ii) some indicators end-value targets need to be modified, resulting from changes in project implementation or external conditions. Proposed adjustments and their specific rationale are detailed in the Result Framework attached to this Restructuring Paper. 9. Modification of the list of eligible highways financed by the Project. A modification of the list of State highways eligible to the Project financing is required, as State of São Paulo priorities have changed. In September 2016,1 the State of São Paulo sought new roads to enter within the scope of the financing, while others would exit. The Task Team has conducted the socio-economic, safeguards and technical assessments of the new proposed highways. This appraisal showed that: (i) new selected highways would contribute to the PDO; (ii) the environmental and social impact assessments were limited and that the Project would remain Category B; and (iii) economic rate of return of proposed new roads were positive. On this basis, the Task Team authorized the Project Implementation Agency to proceed with selected proposed new highways, as detailed in Annex 1 to this Restructuring Paper. 1 No. 675/2016 / GS-ACR on 09/20/2016 by the Secretary of Finance in the Sao Paulo State Government The World Bank Sao Paulo State Sustainable Transport Project (P127723) II. DESCRIPTION OF PROPOSED CHANGES 10. Proposed changes include: (i) extending the loan closing date by 21 months; (ii) adjusting the Project Result Framework; and (iii) modifying the list of highways eligible to the Project financing. These changes do not modify the PDO, nor require reallocation/cancellation of the loan proceeds. 11. Loan closing date extension. The current loan closing date is March 31, 2019 while the proposed new loan closing date is December 31, 2020. This is the first loan closing date extension sought, in an additional 21 months of Project implementation time. The Project Implementation Unit confirmed that this additional implementation time is sufficient to achieve the Project physical and institutional targets. 12. Adjustment of the Results Framework. While the Project design underpinning theory of change remains the same, the Project Results Framework includes the proposed following changes (See details in Section IV, Detailed changes): (i) Improving how the Results Framework captures the Projects outcomes and results. The following changes are proposed at PDO indicator level: (a) to move-up, as a PDO indicator: “Number of days required for SMA/CETESB to approve Environmental Preliminary Reports (Relatório Ambiental Preliminar – RAP) for roadworks”. This proposed indicator is the adjusted version of an intermediate result indicator already included in the Results Framework to capture Component 2 (Environment, institution strengthening) results; and (b) to drop, for attribution issues, the PDO indicator “Improved transport management measured by the increased proportion of State road network managed by performance”: except for the SP-463 pilot performance-based road rehabilitation contract, the Project has no activity that could result in such outcome. This outcome could have been relevant, had the project had a strong focus on PPP and concessions. (ii) Refining the definition of indicators according to best practices. Most Project indicators have been refined to be more specific and measurable, with no substantial changes in what they measure. As an example of such revision, it is proposed to substitute the PDO indicator “Improved road safety measured by the reduction in fatalities on the 100 most critical spots of the State road network” with “Number of fatalities on the 100 most critical spots of the State road network”. (iii) Adapting end-target completion dates. The target date for all result indicators has been extended in consistency with the proposed new loan closing date, December 31, 2020. 13. Modification of the list of eligible roads financed by the Project Component 1.1. The first group of roadworks, approved under the initial appraisal has been completed and is not modified. This first group covers an extension of about 378 km of paved State highways and mainly focuses on road rehabilitation and punctual road capacity expansion (third lane). The March 2015 restructuring added a second group of roads to that initial group. This second group of roads covered an extension of about 453 km of State roads, with similar types of interventions. It is noteworthy that half the State road sections added within the March 2015 restructuring were municipal accesses (“SPA”, see Annex 1 for further details). 14. In September 2016, changes in priorities in the State of São Paulo had the State Transport and Logistics secretariat seek from the Bank a modification of the list of roads eligible to the Project financing. This change in priorities stemmed from cost overruns the State of São Paulo experienced on their flagship transport investment project, the São Paulo ring-road (Rodoanel). To cover the Rodoanel cost overruns, the State of São Paulo requested the IDB to redirect some of the financing still available within a road infrastructure IDB/State of São Paulo loan. Redirecting this financing to Rodoanel left a few highways included in the IDB/State of São Paulo loan unfinanced, hence the State of São Paulo seeking the Bank loan to finance them. The World Bank Sao Paulo State Sustainable Transport Project (P127723) 15. The Task Team carried out a due diligence of the new investments proposed to be included in the Project financing under three strands: (i) contribution to the PDO and technical relevance, (ii) environmental and social impact; and (iii) socioeconomic return of the investment. Part of the engineering studies were also updated, in particular to include enhanced road safety elements. This due diligence concluded positively on all three strands. 16. As a result, the list of eligible roads (Second Group) is proposed to be modified as follows (See Annex 1 for further details): a. Added sections: SP-088 (Aruja – Mogi Das Cruzes), SP-147 (Anhembi), SP-250 (Vargem Grande Paulista – Ibiuna), SP-270 (Itapetininga – Itai & Piraju – Ourinhos), SPA327 / 330 (Jardinópolis); b. Removed sections: SP-129, SP-304 (km 198.14 - km 258.94), SP-461, SPA 570/254, SPA592/294, SPA 395/310, SPA 423/310, SPA 473/310, SPA 431/425, and SPA 126/563. 17. This updated Second group has a total extension of about 363 km, while the initial Second Group, as per the March 2015 restructuring, covered 453 km of State highways. The roadworks unit cost increase, related to the nature of the interventions (roadworks include more highway duplications and capacity improvements), caused this reduction in scope, with an unchanged Component 1.1 budget. III. SUMMARY OF CHANGES Changed Not Changed Results Framework ✔ Loan Closing Date(s) ✔ Disbursements Arrangements ✔ Disbursement Estimates ✔ Implementation Schedule ✔ Implementing Agency ✔ DDO Status ✔ Project's Development Objectives ✔ Components and Cost ✔ Cancellations Proposed ✔ Reallocation between Disbursement Categories ✔ Overall Risk Rating ✔ Safeguard Policies Triggered ✔ EA category ✔ Legal Covenants ✔ Institutional Arrangements ✔ The World Bank Sao Paulo State Sustainable Transport Project (P127723) Financial Management ✔ Procurement ✔ Other Change(s) ✔ Economic and Financial Analysis ✔ Technical Analysis ✔ Social Analysis ✔ Environmental Analysis ✔ IV. DETAILED CHANGE(S) OPS_DETAILEDCHANGES_LOANCLOSING_TABLE LOAN CLOSING DATE(S) Original Revised Proposed Proposed Deadline Ln/Cr/Tf Status Closing Closing(s) Closing for Withdrawal Applications IBRD-82720 Effective 31-Mar-2019 31-Dec-2020 30-Apr-2021 OPS_DETAILEDCHANGES_DISBURSEMENT_TABLE DISBURSEMENT ESTIMATES Change in Disbursement Estimates Yes Year Current Proposed 2013 0.00 0.00 2014 40,000,000.00 69,000,000.00 2015 123,000,000.00 110,000,000.00 2016 20,000,000.00 20,000,000.00 2017 20,000,000.00 0.00 2018 70,000,000.00 16,000,000.00 2019 27,000,000.00 85,000,000.00 The World Bank Sao Paulo State Sustainable Transport Project (P127723) . Results framework COUNTRY: Brazil Sao Paulo State Sustainable Transport Project Project Development Objectives(s) Contribute to the improvement of the State’s transport and logistics efficiency and safety while enhancing the Borrower’s capacity in environmental and disaster risk management. Project Development Objective Indicators by Objectives/ Outcomes RESULT_FRAME_TBL_PDO Indicator Name DLI Baseline End Target Improving the State’s transport and logistics efficiency and safety (Action: This Objective is New) Roads in good and fair condition as a share of total classified 34.00 48.00 roads (Percentage) Rationale: Extended the end target completion date to match the new proposed loan closing date. The value of the end target is Action: This indicator has been Revised maintained. Size of the total classified network (Kilometers) 13,000.00 13,000.00 Rationale: Corrected the size of the paved highway network managed by the State road agency (DER/SP), now excluding unpaved Action: This indicator has been Revised highways and highways managed under concession agreements. The previous reference paved network was 13,700 km. Percentage increase of export products transported on the Tiete 0.00 12.00 river (Percentage) The World Bank Sao Paulo State Sustainable Transport Project (P127723) RESULT_FRAME_TBL_PDO Indicator Name DLI Baseline End Target Rationale: - The original indicator ("Increased intermodality measured by increased proportion of exported biofuel transported by waterway in the State on the Tiete river”) is not relevant any longer. Focus on biofuel is no longer relevant as, since the federal government cut subsidies on ethanol production, production and transport of biofuel have almost dropped to zero. This is an external factor to the Project. - The task team proposes to focus this PDO indicator on export products, actually better in line with the global value chain Action: This indicator has been Revised efficiency, ultimately targeted by the Project. Based on forecasts prepared by the State secretariat of Transport and Logistics (SLT), the end-value target is expected to be a 12% increase. This traffic increase is expected to result from the reconstruction of a road bridge over river Tiete; this bridge will have a wider span, allowing for bigger water convoys, more efficiency of waterborne transport and, ultimately, higher export products using the Tiete waterway to reach the Santos export port. - End target completion date updated to match new loan closing date. Improved transport management measured by the increased proportion of State road network managed by performance 32.00 32.50 (Percentage) Rationale: This indicator is marked for deletion because of attribution issues. The scope of this indicator goes well beyond what project activities could do. The project only includes one performance-based contract (CREMA), covering about 100 km of the State Action: This indicator has been Marked for Deletion highway network (that is 0.4% of the total State network), while this indicator was aiming at a 50% coverage of the State highway network. In addition, the Project doesn't include any institutional strengthening activities on PPP or concessions that could have led to an expansion of the State highway network managed under performance-based arrangements. Number of fatalities on the 100 most critical spots of the State 124.00 62.00 road network (Number) Action: This indicator has been Revised Rationale: The World Bank Sao Paulo State Sustainable Transport Project (P127723) RESULT_FRAME_TBL_PDO Indicator Name DLI Baseline End Target - Indicator reworded but nature and targets unchanged. The original indicator was: "Improved road safety measured by the reduction in fatalities on the 100 most critical spots of the State road network" - End-target completion date extended to the proposed new closing date. Enhancing the Borrower’s capacity in environmental management (Action: This Objective is New) Number of days required for SMA/CETESB to approve Environmental Preliminary Reports (Relatório Ambiental 156.00 117.00 Preliminar – RAP) for roadworks (Days) Rationale: This indicator is actually not new, but an adaptation of the intermediate result indicator "Improved environmental control measured by the reduction of average delay for licensing transport works" included in the original Results Framework to measure the improvement of environment management. This indicator is: - Moved up as a PDO indicator to cover the "Enhancing the Borrower’s capacity in environmental management " dimension of the PDO. This is an outcome indicator as it measures the number of days required by the State environmental administration to approve environmental licensing. This indicator measures the extent to which environmental licensing Action: This indicator is New procedures for road works support a more efficient environmental management in the State of Sao Paulo. - Adjusted to: "Number of days required for SMA/CETESB to approve Environmental Preliminary Reports (Relatório Ambiental Preliminar – RAP) for roadworks” as the first years of Project implementation have actually showed that few State roadworks require full environmental licensing. Rather, all roadworks included in the Project scope require SMA/CETESB's approval of the Environmental Preliminary Reports related to roadworks. This focus is closer to the scope of the Project. Enhancing the Borrower’s capacity in disaster risk management (Action: This Objective is New) Number of contingency plans established for selected UBAs 0.00 3.00 (Number) Action: This indicator has been Revised Rationale: The World Bank Sao Paulo State Sustainable Transport Project (P127723) RESULT_FRAME_TBL_PDO Indicator Name DLI Baseline End Target - Indicator reworded for further clarity, no change in substance. The original indicator was: "Improved transport management proactively coping with disaster through the establishment of contingency plans in a sample of DER’s local representations for traffic management (pilot UBA)". - End-target completion date extended to the new closing date. PDO Table SPACE Intermediate Results Indicators by Components RESULT_FRAME_TBL_IO Indicator Name DLI Baseline End Target Improving the State's transport and logistics efficiency and safety (Action: This Component is New) Roads rehabilitated, Non-rural (Kilometers) 0.00 700.00 Rationale: - No change in indicator definition. - End-target completion date extended conforming proposed closing date. Action: This indicator has been Revised - End-target value reduced from 720 km to 700 km due to higher construction costs: investment involved more road duplication than initially expected, leading to higher construction costs. Number of bridges reconstructed (Number) 0.00 1.00 Rationale: - No change in indicator definition. Action: This indicator has been Revised - End target value reduced from 2 to 1: the project will rebuild only one bridge construction over river Tiete, for the SP-147 crossing over Tiete. DER/SP could not get the environmental licensing for the second bridge initially planned to be built. The World Bank Sao Paulo State Sustainable Transport Project (P127723) RESULT_FRAME_TBL_IO Indicator Name DLI Baseline End Target Despite only one bridge being rebuilt, the target traffic increase on river Tiete, measured by the PDO indicator "Percentage of export products transported on the Tiete river" is expected to be reached. - End-target completion date extended with the loan new closing date. Improved navigability of the Tietê-Paraná waterway system as 1,500,000.00 2,200,000.00 measured by increased use of Tiete river for freight (Tones/year) Rationale: This indicator, which is basically the tonnage transported on the Tiete river, is marked for deletion because it is redundant with another outcome indicator: "Percentage increase of export products transported on the Tiete river". Both indicators Action: This indicator has been Marked for Deletion are strongly correlated and cover the same outcome: the efficiency of State's transport and logistics under the waterway transport dimension. Enhancing the Borrower’s capacity in environmental management (Action: This Component is New) Approval from CONSEMA (State Council of Environment) of the Ecological and Economic Zoning (ZEE) for the State of Sao Paulo No Yes (Yes/No) Rationale: - Indicator and targets reworded make them more attributable to the Project activities. The initial indicator was : "Strengthened land use planning and territorial management"(which is an objective, not an indicator) and its end-target was: "Execution of three Government actions based on the policy instrument". This end-target is beyond the scope of the Project as the execution of these Government action would require the vote of the State of Sao Paulo legislative assembly, Action: This indicator has been Revised which goes beyond the prerogatives of the State executive branch. The proposed new end-target is within what the State of Sao Paulo can achieve as the planning instrument is expected to be prepared and approved by the relevant State authority (CONSEMA - State Council of Environment). - End target completion date extended to match the new proposed loan closing date. The World Bank Sao Paulo State Sustainable Transport Project (P127723) RESULT_FRAME_TBL_IO Indicator Name DLI Baseline End Target Improved environmental control measured by the reduction of 360.00 330.00 average delay for licensing transport works (Days) Rationale: This indicator is removed as an intermediate result indicator. It is reworded and upgraded and an outcome indicator under Action: This indicator has been Marked for Deletion the same PDO objective. Number of underwater monitoring stations (Number) 21.00 57.00 Rationale: - Indicator reworded but no change in substance. The original indicator was: "Improved environmental monitoring Action: This indicator has been Revised measured by the expansion of the of underwater monitoring capacity in the State territory". - End target completion date extended to match the proposed new loan closing date. Enhancing the Borrower’s capacity in disaster risk management (Action: This Component is New) Development and operationalization of a Platform connecting the State Disaster Risk Management monitoring systems No Yes (Yes/No) Rationale: - This indicator is modified because it is not relevant any longer to Project activities. The original indicator was: "Number of automatic monitoring stations installed in the State" as, initially, the State of Sao Paulo planned to procure and install new weather monitoring stations. yet, during implementation, the State of Sao Paulo decided to change its strategy: instead of Action: This indicator has been Revised procuring new stations, the State decided to make the most of existing weather monitoring stations by networking them within a common system. These existing weather monitoring stations are currently operated by administrations as diverse as: agriculture, air traffic control, army. This intermediate result indicator is therefore adapted accord to the modified Project activity. - End target completion date extended to match the new loan closing date. The World Bank Sao Paulo State Sustainable Transport Project (P127723) RESULT_FRAME_TBL_IO Indicator Name DLI Baseline End Target Number of Municipalities in the Sao Paulo Metropolitan region 12.00 38.00 with a concluded Disaster Risk mapping (Number) Rationale: - Indicator reworded but with no change in substance. The original indicator was: "Increased number of Municipalities in the Sao Paulo Metropolitan region with a concluded Disaster Risk mapping". - End-target value reduced from 39 to 38, as the Sao Paulo municipality is part of the Sao Paulo metropolitan area but is not Action: This indicator has been Revised included in the risk mapping exercise developed within the Project. - End target completion date extended to match new loan closing date. IO Table SPACE . The World Bank Sao Paulo State Sustainable Transport Project (P127723) Annex 1: List of Eligible Roadworks BRAZIL: Sao Paulo Sustainable Transport Project Extension # Road No. Section Remarks (km) Original Sections (First Group) 1-1 SP 304 Jaú - Bariri - Itaju 49.94 Rehabilitation, additional lane Km 302,38 -Km 352,32 1-2 SP 304 Ibitinga – Borborema Rehabilitation, additional lane, local 54.38 Km 352,32 -Km 406,70 improvement 1-3 SP 379 Uchoa - Ibirá - Urupês - Irapuã - Sales 51.29 Rehabilitation, additional lane Km 0 -Km 51,29 1-4 SP 425 Miguelópolis – Guaíra Rehabilitation, additional lane, local 33.70 Km 23,90 -Km 57,60 improvement 1-5 SP 425 Guaíra - Barretos 34.40 Rehabilitation, additional lane Km 57,60 -Km 92,0 1-6 SP 425 Olímpia 55.5 Rehabilitation, additional lane Km 102,00 -Km 157,55 2-1 SP 463 Araçatuba - Santo Antônio do Araranguá - Auriflama (SP 310) 61.0 Km 60,900 - Km 121,900 Rehabilitation (CREMA) 2-2 SPA 096/463 Auriflama - General Salgado 9.45 2-3 SP 463 Jales - Pontalina - Auriflama (SP 310) 27.1 Km 121,000 - Km 149,000 Sub-Total 376.8 Additional Sections (Second Group): approximately 375 km of road sections added by the restructuring in March 2015. 2-4 SP 419 Penápolis - Alto Alegre - Luiziânia 35.40 Rehabilitation, additional lane Km 0 - Km 35,400 3-1 SP 129 km 0,00 a km 29,85 29.85 Rehabilitation, duplication 3-2 SP 147 km 149,42 ao km 210,00 60.58 Rehabilitation, additional lane 3-4 SPA570/254 km 0,000 a 12,80 12.80 Rehabilitation 3-5 SPA 592/294 km 0,000 a 18,90 18.90 Rehabilitation 3-6 SP 304 km 198,14 a km 258,94 60.29 Rehabilitation, additional lanes 3-7 SPA 395/310 km 0,000 a 13,20 13.20 Conservation 3-8 SPA 423/310 km0,000 a 18,8 18.80 Rehabilitation 3-9 SPA 473/310 km 0,000 a 19,05 19.05 Rehabilitation 3-10 SPA 431/425 km 0,000 a 15,60 15.60 Rehabilitation 3-11 SP 461 70.56 Rehabilitation, additional lane 3-12 SPA 126/563 km 0,000 a 10,78 10.78 Rehabilitation 3-13 SP 294 km 658,38 a km 686,7 28.30 Rehabilitation, additional lane 3-14 SP 334 km421, a km454,80 33.70 Rehabilitation, additional lane Sub-Total 453.6 The World Bank Sao Paulo State Sustainable Transport Project (P127723) Revised List of Second Group 2-4 SP 419 Penápolis - Alto Alegre – Luiziânia 35.4 Rehabilitation, additional lane Km 0 - Km 35,400 3-3 SP 147 Km 210,0 - km 235,8 25.8 Rehabilitation, additional lane SP 088 7.4 Duplication, recuperation, and Aruja – Mogi das Cruzes improvement SP 250 Vaargem Grande Paulista – Ibiuna 28.8 Rehabilitation, duplication (km 45.25 – km 74.00) SP 270 Itapetininga – Itai (Km 168.2 – km 295.4) 204.8 Rehabilitation, duplication mainly Piraju – Ourinhos (Km 295.4 – Km 373.0) at intersection and city level. 3-13 SP 294 Km 658,4 - km 686,7 28.3 Rehabilitation, additional lane 3-14 SP 334 Km 421,0 - km454,8 33.7 Rehabilitation, additional lane 5.3 Duplication and improvement of SPA 327/330 Access to Jardinópolis access Bridge SP Construction of bridge in Rio Tiete Bridge over Tiete River 147 Sub-Total Sub-Total 343.7 Grand Total Grand Total (1st Group + Revised 2nd 720.5 Group)