IBRD GOB State of São Paulo Metro CPTM
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Document of The World Bank FOR OFFICIAL USE ONLY Public Disclosure Authorized Report No: 40891-BR PROJECT APPRAISAL DOCUMENT ON A Public Disclosure Authorized PROPOSED LOAN IN THE AMOUNT OF US$550 MILLION TO THE STATE OF SÃO PAULO, BRAZIL WITH THE GUARANTEE OF THE FEDERATIVE REPUBLIC OF BRAZIL Public Disclosure Authorized FOR A SÃO PAULO TRAINS AND SIGNALING PROJECT March 3, 2008 Sustainable Development Department Brazil Country Management Unit Latin America and Caribbean Regional Office Public Disclosure Authorized This document has a restricted distribution and may be used by recipients only in the performance of their official duties. Its contents may not otherwise be disclosed without World Bank authorization. FOR OFFICIAL USE ONLY CURRENCY EQUIVALENTS (Exchange Rate Effective July 2007-Feb. 2008) Currency Unit =Brazilian Real (R$) R$2.1-1.75 = US$1 FISCAL YEAR January 1 – December 31 ABBREVIATIONS AND ACRONYMS ATC Automatic Train Control National Economic and Social Development Bank BNDES (Banco Nacional de Desenvolvimento Econômico e Social) Single Integrated Fare Ticket BUI (Bilhete Único Integrado) CBTC Communications Based Train Control Brazilian Urban Train Company CBTU (Companhia Brasileira de Trens Urbanos) CETESB Environmental Technology Company (Companhia de Tecnologia de Saneamento Ambiental) Integrated Transport Coordination Commission CDTI (Comité Diretor de Transporte Integrado) São Paulo Metro Company CMSP (Companhia do Metrô de São Paulo) also known as METRO (see below) São Paulo Metropolitan Train Company CPTM (Companhia Paulista de Trens Metropolitanos) Metropolitan Bus Company EMTU (Empresa Metropolitana de Transporte Urbano) EMU Electric Multiple Unit Brazilian Institute of Geography and Statistics IBGE (Instituto Brasileiro de Geografia e Estatística) ICB International Competitive Bidding Circulation Tax on Goods and Services ICMS (Imposto de Circulacão sobre Mercadorias e Serviços) IERR Internal Economic Rate of Return IFR Intermediate Financial Report Fiscal Responsibility Law LRF (Lei de Responsabilidade Fiscal) METRO São Paulo Metro Company (Companhia do Metropolitano de São Paulo). Same as CMSP i MR Metropolitan Region PCU Project Coordination Unit PER Preliminary Environmental Report (Relatório Ambiental Preliminar) Integrated Urban Transport Project PITU (Plano Integrado de Transporte Urbano) PMU Project Management Unit RTCC Regional Transport Coordination Commission Federal Secretariat for Foreign Affairs SEAIN (Secretaria de Assuntos Internacionais) São Paulo State Government & Integrated Financial Administration System for SIAFEM States & Municipalities (Sistema Integrado de Administração Financeira para Estados e Municípios) Secretariat for the Environment SMA (Secretaria do Meio Ambiente) SPM São Paulo Municipality SPMR São Paulo Metropolitan Region SSP State of São Paulo São Paulo Municipal Secretariat for Transport STM (Secretaria de Transportes da Prefeitura do Município de São Paulo) STMSP São Paulo Secretariat for Metropolitan Transport (Secretaria de Transportes Metropolitanos Região Metropolitana de São Paulo) TOR Terms of Reference Vice President: Pamela Cox Country Director: John Briscoe Sector Director: Laura Tuck Sector Manager/Sector Leader: José Luís Irigoyen/Jennifer Sara Task Team Leader: Jorge M. Rebelo This document has a restricted distribution and may be used by recipients only in the performance of their official duties. Its contents may not otherwise be disclosed without World Bank authorization. ii BRAZIL SÃO PAULO TRAINS AND SIGNALING CONTENTS Page I. STRATEGIC CONTEXT AND RATIONALE ................................................................. 1 A. Background .......................................................................................................................... 1 B. Evolution of the Metropolitan Transport System of the State of São Paulo........................ 2 C. Rationale for Bank Involvement .......................................................................................... 5 D. Higher Level Objectives to which the Project Contributes.................................................. 6 II. PROJECT DESCRIPTION ............................................................................................. 6 A. Lending Instrument............................................................................................................. 6 B. Project Development Objective and Key Indicators:.......................................................... 6 C. Project Components............................................................................................................ 7 D. Lessons Learned and Reflected in the Project Design........................................................ 7 E. Alternatives Considered and Reasons for Rejection........................................................... 8 III. IMPLEMENTATION ...................................................................................................... 9 A. Partnership Arrangements................................................................................................... 9 B. Institutional and Implementation Arrangements ................................................................ 9 C. Monitoring and Evaluation of Outcomes/Results............................................................... 9 D. Sustainability..................................................................................................................... 10 E. Critical Risks and Possible Controversial Aspects ........................................................... 10 F. Loan/credit conditions and covenants .............................................................................. 12 IV. APPRAISAL SUMMARY ............................................................................................. 12 A. Economic and Financial Analyses.................................................................................... 12 B. Technical........................................................................................................................... 13 C. Fiduciary ........................................................................................................................... 13 D. Social................................................................................................................................. 14 E. Environment...................................................................................................................... 14 F. Safeguard policies............................................................................................................. 15 G. Policy Exceptions and Readiness...................................................................................... 15 iii Annex 1: Country and Sector or Program Background ......................................................... 16 Annex 2: Major Related Projects Financed by the Bank and/or other Agencies ................. 23 Annex 3: Results Framework and Monitoring ........................................................................ 25 Annex 4: Detailed Project Description...................................................................................... 28 Annex 5: Project Costs…………………………………………………………………………30 Annex 6: Implementation Arrangements ................................................................................. 32 Annex 7: Financial Management and Disbursement Arrangements ……………………….37 Annex 8: Procurement Arrangements...................................................................................... 43 Annex 9: Economic and Financial Analysis ............................................................................. 50 Annex 10: Safeguard Policy Issues............................................................................................ 70 Annex 11: Project Preparation and Supervision ..................................................................... 74 Annex 12: Documents in the Project File ................................................................................. 76 Annex 13: Statement of Loans and Credits.............................................................................. 77 Annex 14: Country at a Glance ................................................................................................. 81 Annex 15: Impact on Low-Income Users.................................................................................. 83 Annex 16: Fiscal Analysis of São Paulo State Government, 2003-2007................................. 98 Annex 17: Maps......................................................................................................................... 100 iv BRAZIL SÃO PAULO TRAINS AND SIGNALING PROJECT PROJECT APPRAISAL DOCUMENT LATIN AMERICA AND CARIBBEAN LCSTR Date: March 3, 2008 Team Leader: Jorge M. Rebelo Country Director: John Briscoe Sectors: General transportation sector (100%) Sector Manager/Director: Jose Luis Irigoyen/ Themes: Other urban development (P) Laura Tuck Project ID: P106038 Environmental screening category: B Lending Instrument: Specific Investment Loan Project Financing Data [X] Loan [ ] Credit [ ] Grant [ ] Guarantee [ ] Other: For Loans/Credits/Others: Total Bank financing (US$m.): 550.00 Proposed terms: FSL, Loan denominated in US$ payable in 25 years, including 5 years of grace and level principal repayment; with Fixed Spread and automatic rate fixing and options for currency and interest conversion Financing Plan (US$m) Source Local Foreign Total Borrower 465.00 0.00 465.00