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World Bank Document Document of The World Bank Public Disclosure Authorized Report No: ICR3071 IMPLEMENTATION COMPLETION AND RESULTS REPORT (Loan No. IBRD-7169) Public Disclosure Authorized ON A LOAN IN THE AMOUNT OF US$ 46.7 MILLION TO THE REPUBLIC OF GUATEMALA FOR A SECOND RURAL AND MAIN ROADS PROJECT Public Disclosure Authorized May 12, 2014 Public Disclosure Authorized Sustainable Development Department Guatemala, Central America Country Management Unit Latin America and the Caribbean Region CURRENCY EQUIVALENTS (Exchange Rate Effective March 18, 2014) Currency Unit = Quetzal GTQ$ 1.00 = US$ 0.130 US$ 1.00 = GTQ$ 7.716 FISCAL YEAR [January 1 – December 31] ABBREVIATIONS AND ACRONYMS ADIMAM Association of Municipalities in the Highlands of San Marcos Asociacion de Desarrollo Integral de Municipalidades del Altiplano Marquense CAS Country Assistance Strategy COMAVIs Maintenance Committees Comites de Mantenimiento Vial COFINEX Project Coordinating Unit (DGC) for External Financing Coordinadora de Financiamiento Externo COVIAL National Road Maintenance Fund Unidad Ejecutora de Conservacion Vial DGC General Roads Directorate Dirección General de Caminos EA Environmental Assessment EIRR Economic Internal Rate of Return EMP Environmental Management Plan ENCOVI National Quality of Life Survey Encuesta Nacional de Condiciones de Vida ERP Poverty Alleviation Strategy Estrategia de Reducción de la Pobreza FY Fiscal Year FVR Regional Road Fund Fondo Vial Regional GDP Gross Domestic Product GoG Government of Guatemala GUAPA Guatemala Poverty Assessment HUISTA Association of Municipalities in the Huista Region in Huehuetenango Mancomunidad de la Región Huista de Huehuetenango IBRD International Bank for Reconstruction and Development ICR Implementation Completion and Results Report INFOM Municipal Development Institute Instituto de Fomento Municipal IPR Independent Procurement Review ii MAMSOHUE Association of Municipalities in the South West of Huehuetenango Mancomunidad del Sur Occidente de Huehuetenango MCIV Ministry of Communications, Infrastructure and Housing Ministerio de Comunicaciones, Infraestructura y Vivienda M& E Monitoring & Evaluation PAD Project Appraisal Document PCU Project Coordination Unit PDO Project Development Objectives QAG Quality Assurance Group RMRP Rural and Main Roads Project SMRRPP San Marcos Rural Roads Pilot Project TA Technical Assistance UCBM World Bank Project Coordination Unit in INFOM Unidad Coordinadora Banco Mundial UTAV Roads Technical Assistance Unit Unidad Técnica de Asistencia Vial Vice President: Jorge Familiar Calderon Country Director: Maryanne Sharp Country Manager: Oscar Avalle Sector Manager: Aurelio Menendez Project Team Leader: Stephen Muzira ICR Team Leader: Stephen Muzira iii GUATEMALA Second Rural and Main Roads Project CONTENTS Data Sheet A. Basic Information B. Key Dates C. Ratings Summary D. Sector and Theme Codes E. Bank Staff F. Results Framework Analysis G. Ratings of Project Performance in ISRs H. Restructuring I. Disbursement Graph A. Basic Information ....................................................................................................... v B. Key Dates ................................................................................................................... v C. Ratings Summary ....................................................................................................... v D. Sector and Theme Codes .......................................................................................... vi E. Bank Staff .................................................................................................................. vi F. Results Framework Analysis .................................................................................... vii G. Ratings of Project Performance in ISRs ................................................................. xiv H. Restructuring (if any) ............................................................................................... xv 1. Project Context, Development and Objectives Design ............................................... 1 2. Key Factors Affecting Implementation and Outcomes .............................................. 5 3. Assessment of Outcomes .......................................................................................... 10 4. Assessment of Risk to Development Outcome ......................................................... 15 5. Assessment of Bank and Borrower Performance ..................................................... 16 6. Lessons Learned ....................................................................................................... 18 7. Comments on Issues Raised by Borrower/Implementing Agencies/Partners .......... 19 8. Additional Information ............................................................................................. 19 Annex 1. Project Costs and Financing .......................................................................... 21 Annex 2. Outputs by Component ................................................................................. 24 Annex 3. Economic and Financial Analysis ................................................................. 26 Annex 4. Bank Lending and Implementation Support/Supervision Processes ............ 27 Annex 5. Beneficiary Survey Results (if any) .............................................................. 29 Annex 6. Stakeholder Workshop Report and Results (if any) ...................................... 30 Annex 7. Summary of Borrower's ICR and/or Comments on Draft ICR ..................... 31 Annex 8. Comments of Co-financiers and Other Partners/Stakeholders ...................... 36 Annex 9. Impact Evaluation of Second Rural and Main Roads Program - Summary . 37 Annex 10. List of Supporting Documents .................................................................... 40 iv A. Basic Information Second Rural and Country: Guatemala Project Name: Main Roads Project Project ID: P055085 L/C/TF Number(s): IBRD-7196 ICR Date: April 15, 2014 ICR Type: Core ICR Republic of Lending Instrument: SIL Borrower: Guatemala Original Total US$ 46,700,000.00 Disbursed Amount: US$ 46,283,877.22 Commitment: Environmental Category: B Implementing Agencies: MCIV- Ministry of Communications, Infrastructure and Housing INFOM - Municipal Development Institute DGC - General Roads Directorate Cofinanciers and Other External Partners: B. Key Dates Revised / Actual Process Date Process Original Date Date(s) Concept Review: 08/21/2001 Effectiveness: 11/03/2004 11/03/2004 07/26/2006 11/27/2007 06/29/2009 03/11/2010 Appraisal: 01/13/2003 Restructuring(s): 06/24/2011 10/25/2011 11/07/2011 12/15/2011 09/14/2012 Approval: 05/06/2003 Mid-term Review: 03/15/2007 04/27/2007 Closing: 12/31/2007 09/30/2013 C. Ratings Summary C.1 Performance Rating by ICR Outcomes: Moderately Satisfactory Risk to Development Outcome: High Bank Performance: Moderately Satisfactory Borrower Performance: Moderately Unsatisfactory v C.2 Detailed Ratings of Bank and Borrower Performance (by ICR) Bank Ratings Borrower Ratings Quality at Entry Moderately Satisfactory Government: Moderately Satisfactory Quality of Implementing Moderately Satisfactory Moderately Unsatisfactory Supervision: Agency/Agencies: Overall Bank Overall Borrower Moderately Moderately Satisfactory Performance Performance Unsatisfactory C.3 Quality at Entry and Implementation Performance Indicators Implementation QAG Assessments Indicators Rating: Performance (if any) Potential Problem Project Quality at Entry Yes None at any time (Yes/No): (QEA) Problem Project at any Quality of Yes None time (Yes/No): Supervision (QSA) DO rating before Moderately Closing/Inactive status Satisfactory D. Sector and Theme Codes Original Actual Sector Code (as % of total Bank financing) Rural and Inter-Urban Roads and Highways 90 90 Sub-national government administration 10 10 Theme Code (as % of total Bank financing) Rural services and infrastructure 67 67 Participation and civic engagement 33 33 E. Bank Staff Positions At ICR At Approval Vice President: Jorge Familiar Calderon David de Ferranti Country Director: Maryanne Sharp Jane Armitage Sector Manager: Aurelio Menendez Danny M. Leipziger Project Team Leader: Stephen Muzira Guillermo Ruan/Cecilia Corvalan ICR Team Leader: Stephen Muzira ICR Primary Author: Oswaldo Patino/Bexi Jimenez vi F. Results Framework Analysis Project Development Objectives (from Project Appraisal Document) The overarching goal of the Second Rural and Main Roads Project (SRMRP) is to reduce rural poverty and build social cohesion by improving and maintaining access in rural areas to markets, schools, health centers and other social and economic infrastructure through broadened community participation. By emphasizing beneficiary involvement, the SRMRP will assure that local development decisions reflect the needs and priorities of rural communities. The specific project development objectives of the SRMRP are: (a) improve rural access on a sustainable basis by improving paths, rural roads, secondary/departmental roads, and main roads; (b) develop institutional capacity at the local and central level, for rural roads management and strengthening stakeholder participation; and (c) generate employment in rural areas by developing an entrepreneurial culture using cost-effective technologies, providing a demonstration effect through pilot programs, and promoting spillover activities. Revised Project Development Objectives (as approved by original approving authority) N.A. (a) PDO Indicator(s) – from
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