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Paraguay Program for Paving of Integration Corridors and Road Rehabilitation and Maintenance Phase Ii (Pr-L1075)

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Paraguay Program for Paving of Integration Corridors and Road Rehabilitation and Maintenance Phase Ii (Pr-L1075) PUBLIC SIMULTANEOUS DISCLOSURE DOCUMENT OF THE INTER-AMERICAN DEVELOPMENT BANK PARAGUAY PROGRAM FOR PAVING OF INTEGRATION CORRIDORS AND ROAD REHABILITATION AND MAINTENANCE PHASE II (PR-L1075) LOAN PROPOSAL This document was prepared by the project team consisting of: Vera Lucía Vicentini (TSP/CAR), Project Team Leader; Christian Dunkerley (TSP/CPR); Luis Alfredo Uechi, Nicolás Dei Castelli, and María Romero Pons (INE/TSP); Oscar Luis Camé-Saldivar (ESG/CPR); Jonathan Renshaw, Ernesto Monter, and Rodolfo Tello-Abanto (VPS/ESG); Alberto de Egea Pérez and Teodoro Noel (FMP/CPR); and Javier Cayo (LEG/SOG). In accordance with the Access to Information Policy, this document is being released to the public and distributed to the Bank’s Board of Executive Directors simultaneously. This document has not been approved by the Board. Should the Board approve the document with amendments, a revised version will be made available to the public, thus superseding and replacing the original version. CONTENTS PROJECT SUMMARY I. DESCRIPTION AND RESULTS MONITORING ..................................................................... 1 A. Background, problem addressed, and rationale .................................................... 1 B. Objectives, components, and cost ......................................................................... 7 C. Results framework ................................................................................................ 8 II. FINANCING STRUCTURE AND MAIN RISKS ...................................................................... 9 A. Financing instruments ........................................................................................... 9 B. Environmental and social safeguard risks ............................................................ 9 C. Fiduciary risk ......................................................................................................11 D. Other issues and risks ..........................................................................................12 III. IMPLEMENTATION AND MANAGEMENT PLAN ...............................................................14 A. Summary of implementation arrangements ........................................................14 B. Summary of monitoring and evaluation arrangements ......................................15 - ii - ANNEXES Annex I Development Effectiveness Matrix (DEM) – Summary Annex II Results Matrix Annex III Fiduciary Agreements and Requirements ELECTRONIC LINKS REQUIRED 1. Procurement plan http://idbdocs.iadb.org/WSDocs/getDocument.aspx?DOCNUM=37341914 2. Annual work plan (AWP|) http://idbdocs.iadb.org/WSDocs/getDocument.aspx?DOCNUM=37389629 3. Monitoring and evaluation plan http://idbdocs.iadb.org/WSDocs/getDocument.aspx?DOCNUM=37349294 4. Environmental and social management report (ESMR) http://idbdocs.iadb.org/WSDocs/getDocument.aspx?DOCNUM=37318545 OPTIONAL 1. Map of program project locations http://idbdocs.iadb.org/WSDocs/getDocument.aspx?DOCNUM=37426818 2. Performance evaluation of Phase I http://idbdocs.iadb.org/WSDocs/getDocument.aspx?DOCNUM=37320513 3. Itemized budget of Phase II http://idbdocs.iadb.org/WSDocs/getDocument.aspx?DOCNUM=37319369 4. Ex ante economic evaluation of Phase II http://idbdocs.iadb.org/WSDocs/getDocument.aspx?DOCNUM=37453556 5. Ex post economic evaluation of Phase I http://idbdocs.iadb.org/WSDocs/getDocument.aspx?DOCNUM=37487752 http://idbdocs.iadb.org/WSDocs/getDocument.aspx?DOCNUM=37487780 6. Designs http://idbdocs.iadb.org/WSDocs/getDocument.aspx?DOCNUM=37341876 http://idbdocs.iadb.org/WSDocs/getDocument.aspx?DOCNUM=37341831 7. Environmental impact assessment of Routes 8 and 13 http://idbdocs.iadb.org/WSDocs/getDocument.aspx?DOCNUM=37326622 8. Institutional Capacity Assessment System (ICAS) http://idbdocs.iadb.org/WSDocs/getDocument.aspx?DOCNUM=37445899 - iii - 9. Lessons learned in the sector in Paraguay http://idbdocs.iadb.org/WSDocs/getDocument.aspx?DOCNUM=37396770 10. Transportation Master Plan http://idbdocs.iadb.org/WSDocs/getDocument.aspx?DOCNUM=37319453 http://idbdocs.iadb.org/WSDocs/getDocument.aspx?DOCNUM=37319412 11. National Road Safety Plan 2008-2013 http://idbdocs.iadb.org/WSDocs/getDocument.aspx?DOCNUM=37317561 http://idbdocs.iadb.org/WSDocs/getDocument.aspx?DOCNUM=37317567 - iv - ABBREVIATIONS AEC Asociación Española de la Carretera [Spanish Road Association] COSIPLAN/ Consejo Sudamericano de Infraestructura y Planeamiento/Iniciativa para la IIRSA Integración de la Infraestructura Regional Sudamericana [South American Infrastructure and Planning Council/Initiative for the Integration of South American Regional Infrastructure] DAI Dirección de Auditoria Interna [Internal Audit Directorate] DCV Dirección de Caminos Vecinales [Rural Roads Directorate] DGA Dirección de Gestión Ambiental [Environmental Management Directorate] DV Dirección de Vialidad [Directorate of Roads] ESMR Environment and social management report ETAGs Especificaciones técnicas ambientales generales [general environmental technical specifications] FSO Fund for Special Operations GUS Guía para la Determinación del Nivel de Desarrollo y Uso de Sistemas de Gestión Financiera Pública [Guide for Determining the Level of Development and Use of Public Financial Management Systems] HDM-4 Highway Development and Management System ICAS Institutional Capacity Assessment System EIRR Economic internal rate of return IRI International roughness index MOPC Ministry of Public Works and Communications ENPV Net present value in efficiency prices OEL Optional electronic link PDRI Plan Director de Reasentamiento e Indemnización [Resettlement and Compensation Master Plan] PEES Plan Estratégico Económico y Social [Economic and Social Strategic Plan] PEU Program execution unit PMMR Performance-based management and maintenance of roads PMT Plan Maestro de Transporte [Transportation Master Plan] PNSV Plan Nacional de Seguridad Vial 2008-2013 [National Road Safety Plan 2008-2013] REL Required electronic link RVPN Red Vial Primaria Nacional [National Primary Road Network] SAB Sistema de Administración de Bienes y Servicios [Goods and Services Administration System] SCF Single Currency Facility SEAM Secretaría del Ambiente [Department of the Environment] SIAF Sistema Integrado de Administración Financiera [Integrated Financial Administration System] SIAMV Sistema Integral de Administración del Mantenimiento Vial [Integrated Road Maintenance Administration System] SICO Sistema Integrado de Contabilidad [Integrated Accounting System] - v - SICP Sistema de Información de las Contrataciones Públicas [Public Contracting Information System] SIGAS Sistema de Gestión Ambiental y Social [Environmental and Social Management System] SPGV Sistema de Planificación y Gestión Vial [Road Planning and Management System] UOC Unidad Operativa de Contrataciones [Contracting Operational Unit] USAID United States Agency for International Development UTPC Unidad de Transparencia y Participación Ciudadana [Transparency and Citizen Participation Unit] WAL Weighted average life PROJECT SUMMARY PARAGUAY PROGRAM FOR PAVING OF INTEGRATION CORRIDORS AND ROAD REHABILITATION AND MAINTENANCE PHASE II (PR-L1075) Financial Terms and Conditions Borrower: Republic of Paraguay FFF** Parallel financing OC OC FSO Executing agency: Ministry of Public Amortization period: 23 years 30 years 40 years Works and Communications (MOPC) Grace period: 7.5 years 6 years 40 years Original WAL: 15.25 years N/A N/A Amount US$200,800,000 Disbursement period: 7 years 5.5 years 5.5 years OC US$51,200,000 Interest rate: LIBOR SCF Fixed 0.25% Parallel OC (80%) US$56,640,000 Inspection and supervision: * * N/A financing FSO (20%) US$14,160,000 Credit fee: * * N/A Local contribution US$78,800,000 Currency: U.S. dollars U.S. dollars from the U.S. dollars from the from the OC SCF of the OC FSO Project at a Glance Project objective: To contribute to productive sector competitiveness and the economic and social integration of Paraguay through the paving and rehabilitation and maintenance of several main corridors of the National Primary Road Network in the eastern part of the country. The specific objectives are to lower overall transportation costs and improve accessibility, serviceability, and safety in the respective service areas, while preserving the country’s highway assets. Conditions precedent to the first disbursement: The borrower, acting through the executing agency, will provide evidence that: (i) legal measures have been taken to approve the program Operating Regulations (see paragraph 2.7) and implement the Environmental and Social Management System (SIGAS); (ii) an action plan has been prepared in response to the recommendations of the environmental audit; (iii) a detailed plan has been prepared for the subcomponent to support Joyvy and Bolas Kua indigenous communities that includes the maximum resources indicated in the cost table, based on the environmental and social management report (ESMR); (iv) an agreement has been reached with the Ministry of Education and Culture (MEC) on the procedure to be followed in the event of archeological finds; (v) terms of reference have been completed for the Estero Susú management plan; and (vi) fines for noncompliance with general environmental technical specifications (ETAGs) have been included in bidding documents for works (see paragraph 2.6). The borrower, acting through the executing agency, will (a) prior to the start of execution of the subcomponent to support indigenous communities: renew the cooperation agreement with the Instituto
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