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World Bank Document Document of The World Bank Public Disclosure Authorized Report No: ICR00001373 IMPLEMENTATION COMPLETION AND RESULTS REPORT (IBRD-72090 TF-52877 TF-52856) ON A Public Disclosure Authorized LOAN IN THE AMOUNT OF US$45 MILLION TO THE MUNICIPALITY OF METROPOLITAN LIMA AND A GLOBAL ENVIRONMENTAL FACILITY GRANT IN THE AMOUNT OF US$7.93 MILLION TO THE GOVERNMENT OF PERU Public Disclosure Authorized FOR THE LIMA TRANSPORT PROJECT March 27, 2012 Sustainable Development Department Bolivia, Chile, Ecuador, Peru and Venezuela Country Management Unit Latin America and the Caribbean Region Public Disclosure Authorized CURRENCY EQUIVALENTS (Exchange Rate Effective March 7, 2012 Currency Unit = Peruvian Sol Sol 1.00 = US$ 0.37 US$ 1.00 = Sol 2.67 FISCAL YEAR [January 1 – December 31] ABBREVIATIONS AND ACRONYMS AATE Autonomous Authority for the Electric Mass Transit System (Autoridad Autónoma del Sistema Eléctrico de Transporte Masivo para Lima y Callao) BRT Bus Rapid Transit CAS Country Assistance Strategy CFAA Country Financial Accountability Assessment CGC General Control Center (Centro General de Control) CNG Compressed Natural Gas COFIDE Financial Development Corporation (Corporación Financiera de Desarrollo S.A.) CONAM National Council for the Environment (Consejo Nacional del Ambiente) COSAC High-Capacity Segregated Corridors (Corredores Segregados de Alta Capacidad) CTU Callao Callao Urban Transport Department (Gerencia de Transporte Urbano) EA Environmental Assessment EFI Economic-Financial and Institutional Modeling Study (Estudio de los Modelos Economico-Financiero e Institucional) EIA Environmental Impact Assessment EIRR Economic Internal Rate of Return EMAPE Lima Municipal Enterprise for Fare Management (Empresa Municipal Administradora de Peaje de Lima) EMP Environmental Management Plan ENATRU National Urban Transport Company (Empresa Nacional de Transporte Urbano) EPA Environment Protection Agency FM Financial Management FMR Financial Management Reports FONAM National Environment Fund (Fondo Nacional del Ambiente) ii GDU Lima Lima Urban Development Department of MML (Gerencia de Desarrollo Urbano) GEF Global Environment Facility GEF CEO GEF Chief Executive Officer GEO Global Environmental Objectives GHG Greenhouse Gases GNV Vehicular Natural Gas (Gas Natural Vehicular) GoP Government of Peru GPS Global Positioning System GTU Urban Transport Bureau (Gerencia de Transporte Urbano) IBRD International Bank for Reconstruction and Development I-CE Interface for Cycling Expertise ICR Implementation Completion and Results Report IDB Inter-American Development Bank IMP Metropolitan Planning Institute (Instituto Metropolitano de Planificación) INC National Institute of Culture (Instituto Nacional de Cultura) INVERMET Metropolitan Investment Fund (Fondo Metropolitano de Inversiones) IP Inspection Panel ITDP Institute for Transportation and Development Policy JICA Japanese International Corporation Agency KFW Kreditanstalt für Wiederaufbau LDV Light-Duty Vehicles M&E Monitoring and Evaluation MEF Ministry of Economy and Finance (Ministerio de Economía y Finanzas) MML Metropolitan Municipality of Lima (Municipalidad Metropolitana de Lima) MPC Provincial Municipality of Callao (Municipalidad Provincial del Callao) MTC Ministry of Transportation and Telecommunications (Ministerio de Transportes y Comunicaciones) NGO Nongovernmental Organization NMT Non-motorized Transport NPV Net Present Value LCSDE Development Effectiveness Unit LCSSO Social Development Unit OPCQC Safeguards Quality Assurance and Compliance Group OSINERGMIN Supervisory Agency for Investment in Energy and Mining (Organismo Supervisor de la Inversión en Energía y Minería) PAD Project Appraisal Document PDF-B Project Development and Preparation Facility Block B iii PDO Project Development Objectives PEMTNM Special Metropolitan Project for Non-motorized Transport (Proyecto Especial Metropolitano de Transporte No Motorizado) PHRD Japan Policy and Human Resources Development Fund (Grant) PIU Project Implementation Unit PKI Passenger Kilometer Index PM Particulate Matter PPP Public Private Partnership PROTRANSPORTE Project for the Preparation of the Lima Metropolitan Transport Investment Plan (Proyecto de Preparación del Plan de Inversiones para el Transporte Metropolitano de Lima) PTUS Urban Transport Plan for Santiago (Plan de Transporte Urbano para Santiago) QAG Quality Assurance Group SAT Safeguards Advisory Team SIT Integrated Public Transport System of Lima (Sistema Integrado de Transporte de Lima) SEA Strategic Environmental Assessment of the Urban Transport Program in Lima SOE Statement of Expenditure ST/CTLC-MTC Secretariat of Transport/Lima–Callao Transport Council/Ministry of Transport and Communications (Secretaría de Transporte/Consejo de Transporte de Lima y Callao/Ministerio de Transportes y Comunicaciones) TMS Traffic Management Study UNDP United Nations Development Program VOC Volatile Organic Compound Vice President: Hasan Tuluy Country Director: Susan Goldmark Sector Manager: Aurelio Menéndez Project Team Leader: Arturo Ardila-Gómez, Elisabeth Goller ICR Team Leader: Arturo Ardila-Gómez, Elisabeth Goller Oswaldo Patino Main Authors Elisabeth Goller iv COUNTRY Project Name CONTENTS A. Basic Information ...................................................................................................... vi B. Key Dates .................................................................................................................. vi C. Ratings Summary ..................................................................................................... vii D. Sector and Theme Codes ........................................................................................ viii E. Bank Staff .................................................................................................................. ix F. Results Framework Analysis ..................................................................................... ix G. Ratings of Project Performance in ISRs ............................................................... xviii H. Restructuring (if any) .............................................................................................. xix I. Disbursement Profile ................................................................................................ xx 1. Project Context, Development and Global Environmental Objectives Design .......... 1 2. Key Factors Affecting Implementation and Outcomes .............................................. 7 3. Assessment of Outcomes .......................................................................................... 16 4. Assessment of Risk to Development Outcome and Global Environment Outcome 26 5. Assessment of Bank and Borrower Performance ..................................................... 27 6. Lessons Learned ....................................................................................................... 32 7. Comments on Issues Raised by Borrower/Implementing Agencies/Partners .......... 36 8. Additional Information ............................................................................................. 36 Annex 1. Project Costs and Financing .......................................................................... 41 Annex 2. Outputs by Component ................................................................................. 44 Annex 3. Economic and Financial Analysis ................................................................. 57 Annex 4. Bank Lending and Implementation Support/Supervision Processes ............ 66 Annex 5. Beneficiary Survey Results ........................................................................... 68 Annex 6. Stakeholder Workshop .................................................................................. 71 Annex 7. Summary of Borrower's ICR and/or Comments on Draft ICR ..................... 73 Annex 8. Comments of Co-financiers and Other Partners/Stakeholders ...................... 91 Annex 9. List of Supporting Documents ...................................................................... 92 Annex 10. Lessons Learned from the GEF Project ...................................................... 93 Annex 11. The Management‘s Action Plan .................................................................. 96 v A. Basic Information PE LIMA Country: Peru Project Name: TRANSPORT PROJECT IBRD-72090,TF- Project ID: P035740,P074021 L/C/TF Number(s): 52856,TF-52877 ICR Date: 03/27/2012 ICR Type: Core ICR MUNICIPALITY OF METROPOLITAN Lending Instrument: SIL,SIL Borrower: LIMA, GOVERNMENT OF PERU Original Total USD 45.00M,USD USD 45.00M,USD Disbursed Amount: Commitment: 7.93M 7.35M Environmental Category: B,B Focal Area: C Implementing Agencies: Protransporte FONAM Cofinanciers and Other External Partners: Interamerican Development Bank B. Key Dates PE LIMA TRANSPORT PROJECT - P035740 Revised / Actual Process Date Process Original Date Date(s) Concept Review: 02/20/2003 Effectiveness: 12/15/2004 12/15/2004 Appraisal: 06/24/2003 Restructuring(s): Approval: 12/09/2003 Mid-term Review: 10/15/2007 12/07/2006 Closing: 06/30/2009 04/30/2011 LIMA TRANSPORT - P074021 Revised / Actual Process Date Process Original Date Date(s) Concept Review: 04/26/2001 Effectiveness: 08/31/2004 Appraisal: 06/24/2003 Restructuring(s): 03/26/2009 Approval: 12/09/2003 Mid-term Review: 12/07/2006 Closing: 06/30/2009 06/30/2010 vi C. Ratings Summary C.1 Performance Rating by ICR Outcomes Satisfactory GEO Outcomes Moderately Satisfactory Risk to Development Outcome Low or
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