The World Bank Report No: ISR5357

Implementation Status & Results Railways Restructuring Project (P077328)

Operation Name: Railways Restructuring Project (P077328) Project Stage: Implementation Seq.No: 12 Status: ARCHIVED Archive Date: 08-Jul-2012 Country: Turkey Approval FY: 2005

Public Disclosure Authorized 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 19-Nov-2011 Public Disclosure Copy Effectiveness Date 19-Jun-2006 Revised Closing Date 30-Jun-2012 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 -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. Public Disclosure Authorized 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 TCDD staff training and re-training program 9.40 Public communication and surveys 0.20 Project Implementation costs 1.10 Public Disclosure Authorized

Overall Ratings Previous Rating Current Rating Progress towards achievement of PDO Moderately Satisfactory Moderately Unsatisfactory

Public Disclosure Copy Overall Implementation Progress (IP) Moderately Satisfactory Moderately Unsatisfactory Overall Risk Rating

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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. As of April 30, 2012 the investment was 53% complete (physical measure) and 61% disbursed. When finished, this investment is expected to relieve congestion on the railway lines to/from Mersin port so that more of the port traffic may be handled 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 completed in 2009.

Advisory Services to TCDD

Public Disclosure Copy Under this component studies have been successfully completed on (a) Internal Financial Controls Risk Assessment, (b) TCDD Financial Audit for 2009 and 2010, (c) Freight Marketing, (d) Rationalization of Passenger Services and Public Service Obligation (PSO), and (e) maintenance practices. The TCDD Financial Audit for 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) delivery of distance (on-line, computer based) training, and (d) training of trainers.

TCDD Public Communications and Periodic Surveys Under this component two surveys of customers and stakeholders have been carried out. The third survey will be completed in June 2012.

The project was restructured in 2009 to focus the project on the reforms and achievements that could be realized within Turkey’s current legal framework for railways, pending passage of new railway framework and Turkish State Railways (TCDD) laws. 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 is scheduled to close on June 30, 2012, however, the signaling investment is not complete. The Undersecretariate of Treasury requested an extension of the project closing date on June 14, 2012.

Locations Country First Administrative Division Location Planned Actual Turkey Not Entered Yenice

Turkey Not Entered Ulukisla

Turkey Not Entered

Turkey Not Entered Nevsehir

Public Disclosure Copy Turkey Not Entered Mercin

Turkey Not Entered

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Country First Administrative Division Location Planned Actual Turkey Not Entered

Turkey Province Kayseri ✔

Turkey Not Entered Kahramanmaras

Turkey Mersin Province Icel ✔

Turkey Not Entered

Turkey Not Entered

Public Disclosure Copy Turkey Not Entered Bogazkoeprue Istasyonu

Turkey Not Entered

Turkey Ankara Ankara ✔

Turkey Province Adana ✔

Turkey Adana Adana ✔

Turkey Not Entered Adana

Turkey Not Entered

Turkey Not Entered

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 Date 31-Dec-2008 31-Dec-2011 31-Dec-2012 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-Bogäzköprü: 25 Mersin-Toprakkale: 45 Yenice-Bogäzköprü: 25 Yenice-Bogäzköprü: 35 Public Disclosure Copy Date 31-Dec-2008 31-Dec-2011 31-Dec-2012

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Comments Significant improvement is expected only after the infrastructure investment is completed. Increase in share of traffic to/from Mersin Port Text Value 5.9% 4.5% 6.5% carried by rail Date 31-Dec-2008 31-Dec-2011 31-Dec-2012 Comments Less than baseline. Significant progress is expected only after the infrastructure investment is completed.

Public Disclosure Copy 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 PSO contract prepared prepared PSO pilot and PSO study agree financially Full network statement viable contract arran No experience with access prepared pricing Date 31-Dec-2008 31-Dec-2011 30-Jun-2012 Comments

Intermediate Results Indicators Indicator Name Core Unit of Measure Baseline Current End Target Component One: Share of project works Text Value 0% 52% 100% completed Date 31-Dec-2008 29-Feb-2012 30-Jun-2012 Comments Component Three: TCDD Business Plan is Text Value None "Progress" measured by implemented successfully. TCDD regularly updating its business plan and successfully implementing it. 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 2500 during the project implementation. 12,788 trained by staff that took the training to become trainers Date 31-Dec-2004 31-Dec-2011 30-Jun-2012 Public Disclosure Copy Comments

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Component Five: Number of independent Text Value 0 two completed Three completed surveys: 3. Date 31-Dec-2004 30-Apr-2012 30-Jun-2012 Comments third being procured

Data on Financial Performance (as of 20-Jun-2012)

Financial Agreement(s) Key Dates Project Ln/Cr/Tf Status Approval Date Signing Date Effectiveness Date Original Closing Date Revised Closing Date P077328 IBRD-47870 Effective 09-Jun-2005 13-Mar-2006 19-Jun-2006 30-Sep-2009 30-Jun-2012

Disbursements (in Millions) Public Disclosure Copy Project Ln/Cr/Tf Status Currency Original Revised Cancelled Disbursed Undisbursed % Disbursed P077328 IBRD-47870 Effective USD 184.70 184.70 0.00 124.83 67.35 68.00

Disbursement Graph

Key Decisions Regarding Implementation none

Public Disclosure Copy Restructuring History Board Approved on 06-Jul-2009, Level one Approved on 13-Jul-2011

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Related Projects There are no related projects. Public Disclosure Copy Public Disclosure Copy

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