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World Bank Document 46844 DATA SHEET PROJECT PAPER Public Disclosure Authorized Date: November 19,2008 Task Team Leader: Nicolas Peltier- Country: Haiti Thiberge Project Name: Transport and Territorial Acting Sector ManagedDirector: Development Project - Project Emmanuel JamedLaura Tuck Restructuring Country Director: Yvonne Tsikata Proiect ID: PO95523 Environmental category: B Borrower: Government ofHaiti Responsible agency: Ministry ofPublic Works, Transport and Communications (MTPTC) Revised estimated disbursements (Bank FY/US$m) FY FY07 FY08 FY09 FYlO FYI1 FY12 Annual 0.2 2.0 6.3 4.5 2.0 1.o Public Disclosure Authorized *2.2 8.5 1 13.0 I 15.0 I 16.0 Current closing date: June 1, 20 12 Revised closing date [if applicable] : June 1, 20 12 - Indicate if the restructuring is: Board approved X RVP approved - Does the restructured project require any exceptions to Bank policies? - Yes XNo Have these been approved by Bank management? - Yes -No Is approval for any policy exception sought from the Board? - Yes &No Public Disclosure Authorized Revised project development objective/outcomes: The proposed revised Project Development Objective is: “lower the marketing costs for small farmers in two selected micro-regions (marketing costs are those costs incurred in the aggregate of functions involved in moving goods from producer to consumer) and rebuild selected infrastructure in areas struck by natural disasters” Does the restructured project trigger any new safeguard policies? If so, indicate which one( s) : OP4.3 7 Safety of Dams Revised Financing; Plan (US$m.) Source Local Foreign Total Public Disclosure Authorized Borrower IBRD/IDA Others I l2 14 I l6 HAITI TRANSPORT AND TERRITORIAL DEVELOPMENT PROJECT RESTRUCTURING (Grant 34938-HT) PROJECT PAPER 1. This Project Paper seeks the approval of the Executive Directors to introduce the following changes in the Haiti, Transport and Territorial Development Project, IDA Grant 34938-HT, P095523, and the accompanying amendments to the project’s grant agreement. 2. The proposed changes follow the occurrence of the series of hurricanes and tropical storms that struck Haiti in 2007 and 2008, causing major damages, particularly on transport infrastructure. The Haitian Government and IDA have identified the Transport and Territorial Development Project as a possible vehicle to channel funds for reconstruction works. The proposed amendments to the project’s grant agreement aim at reallocating project resources to these reconstruction activities, by creating a new component entitled “post natural disasters’ reconstruction of selected infrastructure”, with a total financing amount of US$8 million. Initial project activities will be kept unchanged. Provided country environment and project performance allow for it, an additional financing will be processed in late FY09 or early FYlO to compensate for this reallocation and allow all initial activities to be financed. This additional financing may also cover any possible increase of the price of road works, following the increased cost of gasoline. If an additional financing cannot be processed, a second restructuring, involving substantial modifications of the initial result framework, would be processed. Background and Reasons for Restructuring 3. The Haiti - Transport and Territorial Development Project was approved by the World Bank Board of Executive Directors on April 11, 2006 and became effective on December 13, 2006. The 8 month delay between the Board and Effectiveness dates is due to the time required by the Haitian Parliament to ratify the grant agreement. The project’s original objectives were to “lower the marketing costs for small farmers in two selected micro-regions (marketing costs are those costs incurred in the aggregate of functions involved in moving goods from producer to consumer)”. The selected ’ micro-regions include in particular the communes of Dondon-Saint Raphael in the North of the country and the communes of Thiotte - Anse d Pitre in the South-East. 4. The project was originally designed with three components. Component 1 entitled “road rehabilitation and maintenance” aims at improving transport conditions through selected interventions on roads and critical points that are essential to the rural economy. The project finances the cost of the works, maintenance costs for the repaired roads, related technical and economic studies, and supervision. Component 2 finances the "Territorial Development Window", a consultative process with local stakeholders to identify investment priorities based on a multi-sector territorial development strategy for the micro-regions. Component 3 finances expenditures for project administration, including environmental management, monitoring and evaluation as well as the project's impact evaluation. The project is financed through a US$16 million IDA grant. 5, To date, despite longer-than-expected implementation delays, the project has performed in a satisfactory manner. Disbursements reach US$1.98 million and commitments US$3.84 million. Progress on each of the components is as follows: 0 Sub-component 1.1. Road Improvement. The engineering design studies of the two selected transport corridors are being prepared and should be completed by the end of 2008. A bridge (Pont Limite) is being replaced through an ad'hoc cooperation agreement between the MTPTC and the French Government (Centre National des Ponts de Secours), involving partial financing from this project. In the Northern micro-region, the project initially aimed at financing the rehabilitation of the 39 km road Carrefour La Mort - Saint-Raphael (Route Nationale No.3 / RN3). However, road standards had to be upgraded, following the decision of other donors to rehabilitate the rest of the itinerary, thus converting the RN3 in a major transport corridor that should become an alternative itinerary to the RN1 to connect Port-au-Prince to Cap Haitian, the country's two main cities. This upgrading of road standards requires a significant budget increase, but the EU has accepted to finance a greater portion of the RN3. As a consequence, the project is still financing the design study for the section Carrefour La Mort - Saint Raphael but it will only finance the works for section Carrefour La Mort - Barriire Battant (section 1 of the RN3), while the EU will finance rehabilitation works on Barriire Battant - Saint Raphael (section 2). On the other hand, the Agence Franqaise de De'veloppement (AFD) will finance the rehabilitation of the road Saint-Raphael - Hinche (section 3). Meanwhile, the European Union (EU) is currently financing the rehabilitation of the sections Hinche - Mirebalais (section 4) and Mirebalais - Port-au-Prince (section 5). A joint bidding process was coordinated between the Haitian Government, the AFD and IDA for the engineering design studies of the road Carrefour La Mort - Saint-Raphael - Hinche, allowing the selection of a unique consulting firm, thus ensuring better coordination and economies of scale. 0 Sub-component 1.2. Road Maintenance. The Road Maintenance Fund (Fonds d 'Entretien Routier / FER) has reached a significant implementation capacity and started financing routine, periodic and emergency road maintenance activities on selected transport infrastructure, with financing from the proceeds of a gasoline tax (collected and transferred to the FER by the Ministry of Finance). None of the maintenance activities considered under the project has been initiated by the FER. The FER will essentially intervene at a later stage once the rehabilitation works scheduled under Sub-component 1.1, have been completed. However, the role of the FER in the national road maintenance policy remains uncertain given some reforms envisaged by the Ministry of Public Works, Transport and Communications (MTPTC) to develop force account maintenance practices. IDA, together with other donors, has engaged a policy dialogue with MTPTC to clarify this issue and ensure the sustainability of project activities and, more broadly, the 2 efficiency of the national road maintenance policy. As a result of this policy dialogue, a detailed Road Maintenance Strategy has been prepared with funding from the EU, and several new maintenance contracts are being financed by the FER. 0 Component 2. Territorial Development Window. Two international NGOs have been contracted to be the “facilitators” of the Territorial Development Window in the two micro-regions and they have initiated the consultative process. In the Northern micro-region where this process is the most advanced, a development plan for the micro-region has been drafted, 10 productive initiatives have been screened by the Territorial Development Window and 3 have been prioritized for implementation. In the Southern micro-region, the participatory planning process is under way, and 3 productive initiatives have been reviewed in October 2008. 0 Component 3. Project Administration. A baseline survey has been completed. This survey is currently being complemented, with funding from an UNAIDS grant (HIV/AIDS Transport Incentive Fund), to monitor the incidence of HIV/AIDS in the micro-regions, and implement some mitigation measures to limit the spreading of the epidemics that may be caused by improved transport conditions. Haiti, with a 3.8 percent HIV adult prevalence rate has the highest rate for any country in the world outside of Sub-Saharian Africa. 6. Implementation delays were principally caused by the additional coordination that was required consecutive to the new planned interventions of AFD and EU on the
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