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The World Bank for OFFICIAL USE ONLY Document of The World Bank FOR OFFICIAL USE ONLY Public Disclosure Authorized Report No: ICR00004352 IMPLEMENTATION COMPLETION AND RESULTS REPORT (4724-TZ, 4991-TZ and 4724-TZ) ON A LOAN Public Disclosure Authorized IN THE AMOUNT OF SDR 214.3 MILLION (US$ 329 MILLION EQUIVALENT) TO THE UNITED REPUBLIC OF TANZANIA FOR THE TRANSPORT SECTOR SUPPORT PROJECT ( P055120 ) Public Disclosure Authorized January 16, 2017 Transport & ICT Global Practice Africa Region Public Disclosure Authorized CURRENCY EQUIVALENTS (Exchange Rate Effective {Dec 27, 2017}) Currency Unit = Tanzanian Shilling (TZS) TZS 2222 = US$1 US$ 1.42 = SDR 1 FISCAL YEAR July 1 - June 30 Regional Vice President: Makhtar Diop Country Director: Bella Bird Senior Global Practice Director: Jose Luis Irigoyen Practice Manager: Aurelio Menendez Task Team Leader(s): Yonas Eliesikia Mchomvu ICR Main Contributor: Adam Stone Diehl ABBREVIATIONS AND ACRONYMS AGL Airfield Ground Lighting CAS Country Assistance Strategy DVELA Driver and Vehicle Examination and Licensing Agency ERR Economic Rate of Return ESIA Environmental and Social Impact Assessments ESMP Environmental and Social Management Plans GDP Gross Domestic Product GoT Government of Tanzania GoZ Government of Zanzibar ICAO International Civil Aviation Organization IDA International Development Association Km Kilometer Mkakati wa Kukuza Uchumi na Kupunguza Umaskini Tanzania (Growth and MKUKUTA Poverty Reduction Strategy for Mainland Tanzania) MoID Ministry of Infrastructure Development MoWTC Ministry of Works, Transport and Communication NRSA National Road Safety Agency NTP National Transport Policy RAIS Road Accident Information System TAA Tanzania Airports Authority TANROADS Tanzania National Roads Agency TSIP Transport Sector Investment Program TSSP Transport Sector Support Project US$ United States Dollars TABLE OF CONTENTS DATA SHEET ....................................................................... ERROR! BOOKMARK NOT DEFINED. I. PROJECT CONTEXT AND DEVELOPMENT OBJECTIVES ....................................................... 6 A. CONTEXT AT APPRAISAL .........................................................................................................6 B. SIGNIFICANT CHANGES DURING IMPLEMENTATION (IF APPLICABLE) ..................................... 10 II. OUTCOME .................................................................................................................... 13 A. RELEVANCE OF PDOs ............................................................................................................ 13 B. ACHIEVEMENT OF PDOs (EFFICACY) ...................................................................................... 14 C. EFFICIENCY ........................................................................................................................... 19 D. JUSTIFICATION OF OVERALL OUTCOME RATING .................................................................... 20 E. OTHER OUTCOMES AND IMPACTS (IF ANY) ............................................................................ 20 III. KEY FACTORS THAT AFFECTED IMPLEMENTATION AND OUTCOME ................................ 22 A. KEY FACTORS DURING PREPARATION ................................................................................... 22 B. KEY FACTORS DURING IMPLEMENTATION ............................................................................. 22 IV. BANK PERFORMANCE, COMPLIANCE ISSUES, AND RISK TO DEVELOPMENT OUTCOME .. 24 A. QUALITY OF MONITORING AND EVALUATION (M&E) ............................................................ 24 B. ENVIRONMENTAL, SOCIAL, AND FIDUCIARY COMPLIANCE ..................................................... 26 C. BANK PERFORMANCE ........................................................................................................... 28 D. RISK TO DEVELOPMENT OUTCOME ....................................................................................... 29 V. LESSONS AND RECOMMENDATIONS ............................................................................. 30 ANNEX 1. RESULTS FRAMEWORK AND KEY OUTPUTS ........................................................... 33 ANNEX 2. BANK LENDING AND IMPLEMENTATION SUPPORT/SUPERVISION ......................... 44 ANNEX 3. PROJECT COST BY COMPONENT ........................................................................... 46 ANNEX 4. EFFICIENCY ANALYSIS ........................................................................................... 47 ANNEX 5. BORROWER, CO-FINANCIER AND OTHER PARTNER/STAKEHOLDER COMMENTS ... 52 ANNEX 6. SUPPORTING DOCUMENTS (IF ANY) ..................................................................... 53 The World Bank TRANSPORT SECTOR SUPPORT PROJECT ( P055120 ) DATA SHEET BASIC INFORMATION Product Information Project ID Project Name P055120 TRANSPORT SECTOR SUPPORT PROJECT ( P055120 ) Country Financing Instrument Africa Specific Investment Loan Original EA Category Revised EA Category Partial Assessment (B) Partial Assessment (B) Related Projects Relationship Project Approval Product Line Additional Financing P126206-TANZANIA 30-Jun-2011 IBRD/IDA TRANSPORT SECTOR SUPPORT PROJECT - ADDITIONAL FINANCING Organizations Borrower Implementing Agency MINISTRY OF FINANCE AND PLANNING TANROADS Project Development Objective (PDO) Original PDO The development objectives of the project are to improve the condition of the national paved road network, to lower transport cost on selected roads, and to expand the capacity of selected regional airports. Page 1 of 54 The World Bank TRANSPORT SECTOR SUPPORT PROJECT ( P055120 ) FINANCING Original Amount (US$) Revised Amount (US$) Actual Disbursed (US$) World Bank Financing 270,000,000 270,000,000 266,203,902 IDA-47240 59,000,000 59,000,000 54,404,588 IDA-49910 Total 329,000,000 329,000,000 320,608,490 Non-World Bank Financing Borrower 11,700,000 11,700,000 4,508,806 Total 11,700,000 11,700,000 4,508,806 Total Project Cost 340,700,000 340,700,000 325,117,296 KEY DATES Approval Effectiveness MTR Review Original Closing Actual Closing 27-May-2010 01-Dec-2010 05-May-2014 30-Jun-2015 20-Jun-2017 RESTRUCTURING AND/OR ADDITIONAL FINANCING Date(s) Amount Disbursed (US$M) Key Revisions 30-Jun-2011 43.74 Additional Financing Change in Project Development Objectives Change in Results Framework Change in Components and Cost 22-Apr-2015 255.68 Change in Results Framework Change in Components and Cost Change in Loan Closing Date(s) Change in Financing Plan Reallocation between Disbursement Categories Change in Legal Covenants 29-Mar-2017 318.10 Change in Loan Closing Date(s) Page 2 of 54 The World Bank TRANSPORT SECTOR SUPPORT PROJECT ( P055120 ) KEY RATINGS Outcome Bank Performance M&E Quality Moderately Satisfactory Moderately Satisfactory Modest RATINGS OF PROJECT PERFORMANCE IN ISRs Actual No. Date ISR Archived DO Rating IP Rating Disbursements (US$M) 01 12-Dec-2010 Satisfactory Satisfactory 0 02 18-May-2011 Satisfactory Satisfactory 43.74 03 27-Nov-2011 Satisfactory Satisfactory 43.74 04 07-Jun-2012 Satisfactory Satisfactory 49.91 05 08-Jan-2013 Satisfactory Moderately Satisfactory 100.28 06 20-Jul-2013 Satisfactory Satisfactory 125.44 07 03-Feb-2014 Satisfactory Satisfactory 169.63 08 05-Aug-2014 Satisfactory Satisfactory 210.72 09 30-Jan-2015 Moderately Satisfactory Satisfactory 251.03 10 03-Aug-2015 Satisfactory Satisfactory 267.31 11 26-Feb-2016 Satisfactory Satisfactory 303.81 12 12-Sep-2016 Satisfactory Satisfactory 310.89 13 22-May-2017 Satisfactory Satisfactory 318.10 14 30-Jun-2017 Satisfactory Satisfactory 320.61 Page 3 of 54 The World Bank TRANSPORT SECTOR SUPPORT PROJECT ( P055120 ) SECTORS AND THEMES Sectors Major Sector/Sector (%) Transportation 100 Public Administration - Transportation 7 Rural and Inter-Urban Roads 72 Aviation 21 Themes Major Theme/ Theme (Level 2)/ Theme (Level 3) (%) Private Sector Development 19 Jobs 9 Job Creation 9 Public Private Partnerships 10 Public Sector Management 2 Public Administration 2 Transparency, Accountability and Good 2 Governance Urban and Rural Development 90 Urban Development 9 Urban Infrastructure and Service Delivery 9 Rural Development 81 Rural Infrastructure and service delivery 81 ADM STAFF Role At Approval At ICR Regional Vice President: Obiageli Katryn Ezekwesili Makhtar Diop Country Director: John McIntire Bella Deborah Mary Bird Senior Global Practice Director: Inger Andersen Jose Luis Irigoyen Practice Manager: C. Sanjivi Rajasingham Aurelio Menendez Page 4 of 54 The World Bank TRANSPORT SECTOR SUPPORT PROJECT ( P055120 ) Task Team Leader(s): Dieter E. Schelling Yonas Eliesikia Mchomvu ICR Contributing Author: Adam Stone Diehl Page 5 of 54 The World Bank TRANSPORT SECTOR SUPPORT PROJECT ( P055120 ) I. PROJECT CONTEXT AND DEVELOPMENT OBJECTIVES A. CONTEXT AT APPRAISAL Context 1. Although Tanzania had experienced strong GDP growth (seven percent per year, on average) in the years leading up to the approval of the Transport Sector Support Project (TSSP), transport bottlenecks remained a key challenge for continued growth. Translating this growth into poverty reduction had remained a challenge. In the year before project approval, the global financial crisis had depressed GDP growth by 1.4 percentage points, impacting export sectors disproportionately. Many of the country’s key growth sectors, such as mining, manufacturing and tourism, were impacted. 2. The transport sector had been rapidly progressing. Tanzania had implemented a series of reforms in the sector, including delegation of regulatory and executive functions to autonomous
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