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Document of The World Bank Public Disclosure Authorized Report No: ICR00003473 IMPLEMENTATION COMPLETION AND RESULTS REPORT (COFN-C1150 IBRD-75060 IBRD-78200) ON A Public Disclosure Authorized LOAN IN THE AMOUNT OF US$ 662.91 MILLION TO THE STATE OF SÃO PAULO, BRAZIL FOR A SÃO PAULO TRAINS AND SIGNALING PROJECT Public Disclosure Authorized October 29, 2015 Public Disclosure Authorized Global Practices Transport & ICT Brazil Country Management Unit Latin America and Caribbean Regional Office CURRENCY EQUIVALENTS (Exchange Rate Effective October 19, 2015) Currency Unit = Brazilian Real (R$) R$3.92 = US$1 FISCAL YEAR January 1 – December 31 ABBREVIATIONS AND ACRONYMS ATC Automatic Train Control ANTP National Association of Public Transport (Associação Nacional de Transportes Públicos) BNDES National Economic and Social Development Bank (Banco Nacional de Desenvolvimento Econômico e Social) BUI Single Integrated Fare Ticket (Bilhete Único Integrado) CBTC Communications Based Train Control CBTU Brazilian Urban Train Company (Companhia Brasileira de Trens Urbanos) CETESB Environmental Technology Company (Companhia de Tecnologia de Saneamento Ambiental) CDTI Integrated Transport Coordination Commission (Comité Diretor de Transporte Integrado) CMSP São Paulo Metro Company (Companhia do Metrô de São Paulo) also known as Metro (see below) CPTM São Paulo Metropolitan Train Company (Companhia Paulista de Trens Metropolitanos) EMTU Metropolitan Bus Company (Empresa Metropolitana de Transporte Urbano) EMU Electric Multiple Unit IBGE Brazilian Institute of Geography and Statistics (Instituto Brasileiro de Geografia e Estatística) ICB International Competitive Bidding ICMS ICMS Circulation Tax on Goods and Services (Imposto de Circulacão sobre Mercadorias e Serviços) IERR Internal Economic Rate of Return IFR IFR Intermediate Financial Report LRF Fiscal Responsibility Law (Lei de Responsabilidade Fiscal) Metro São Paulo Metro Company (Companhia do Metropolitano de São Paulo). Same as CMSP. MR Metropolitan Region PCU Project Coordination Unit PER Preliminary Environmental Report (Relatório Ambiental Preliminar) PITU Integrated Urban Transport Project (Plano Integrado de Transporte Urbano) PMU Project Management Unit RTCC Regional Transport Coordination Commission SEAIN Federal Secretariat for Foreign Affairs (Secretaria de Assuntos Internacionais) SIAFEM São Paulo State Government & Integrated Financial Administration System for States & Municipalities (Sistema Integrado de Administração Financeira para Estados e Municípios) SMA Secretariat for the Environment (Secretaria do Meio Ambiente) SPM São Paulo Municipality SPMR São Paulo Metropolitan Region SSP State of São Paulo STM São Paulo Municipal Secretariat for Transport (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: Jorge Familiar Senior Global Practice Director: Pierre Guislain Country Director: Martin Raiser Practice Manager: Aurelio Menendez Project Team Leader: Georges Darido ICR Team Leader: Bianca Bianchi Alves BRAZIL SÃO PAULO TRAINS AND SIGNALING PROJECT CONTENTS Data Sheet A. Basic Information B. Key Dates C. Ratings Summary D. Sector and Theme Codes E. Bank Staff F. Results Framework Analysis G. Ratings of Project Performance in ISRs H. Restructuring I. Disbursement Profile 1. Project Context, Development Objectives and Design .............................................. 1 2. Key Factors Affecting Implementation and Outcomes .............................................. 6 3. Assessment of Outcomes .......................................................................................... 12 4. Assessment of Risk to Development Outcome ........................................................ 18 5. Assessment of Bank and Borrower Performance ..................................................... 20 6. Lessons Learned ....................................................................................................... 23 7. Comments on Issues Raised by Borrower/Implementing Agencies/Partners .......... 25 Annex 1. Project Costs and Financing ......................................................................... 26 Annex 2. Outputs by Component (cont.) ..................................................................... 29 Annex 2. Outputs by Component (cont.) ..................................................................... 30 Annex 3. Economic and Financial Analysis ................................................................ 31 Annex 4. Bank Lending and Implementation Support/Supervision Processes ............ 34 Annex 5. Beneficiary Survey Results ........................................................................... 35 Annex 6. Stakeholder Workshop Report and Results .................................................. 40 Annex 7. Summary of Borrower's ICR and/or Comments on Draft ICR ..................... 41 Annex 8. Comments of Co-financiers and Other Partners/Stakeholders ..................... 44 Annex 9. Impact assessment of Sao Paulo Trains and Signaling Project on traffic volumes, travel times and emissions ............................................................ 45 Annex 10. List of Supporting Documents .................................................................... 49 DATA SHEET A. Basic Information BR São Paulo Trains Country: Brazil Project Name: and Signaling COFN-C1150,IBRD- Project ID: P106038 L/C/TF Number(s): 75060,IBRD-78200 ICR Date: 09/29/2015 ICR Type: Core ICR STATE OF SÃO Lending Instrument: SIL Borrower: PAULO, BRAZIL Original Total USD 550.00M Disbursed Amount: USD 662.91M Commitment: Revised Amount: USD 662.91M Environmental Category: B Implementing Agencies: Companhia Paulista de Trens Metropolitanos (CPTM) Metro Company of Sao Paulo Cofinanciers and Other External Partners: B. Key Dates Revised / Actual Process Date Process Original Date Date(s) Concept Review: 07/24/2007 Effectiveness: 07/28/2008 07/28/2008 01/01/2010 Appraisal: 12/03/2007 Restructuring(s): 12/28/2012 Approval: 05/01/2008 Mid-term Review: 04/26/2011 04/26/2011 Closing: 06/30/2013 04/30/2015 C. Ratings Summary C.1 Performance Rating by ICR Outcomes: Moderately Satisfactory Risk to Development Outcome: Moderate Bank Performance: Satisfactory Borrower Performance: Moderately Satisfactory C.2 Detailed Ratings of Bank and Borrower Performance (by ICR) Bank Ratings Borrower Ratings Quality at Entry: Satisfactory Government: Moderately Satisfactory Implementing Quality of Supervision: Satisfactory Moderately Satisfactory Agency/Agencies: i Overall Bank Overall Borrower Satisfactory Moderately Satisfactory Performance: Performance: C.3 Quality at Entry and Implementation Performance Indicators Implementation QAG Assessments (if Indicators Rating Performance any) Potential Problem Project Quality at Entry No None at any time (Yes/No): (QEA): Problem Project at any Quality of Supervision Yes None time (Yes/No): (QSA): DO rating before Moderately Closing/Inactive status: Satisfactory D. Sector and Theme Codes Original Actual Sector Code (as % of total Bank financing) Sub-national government administration 1 1 Urban Transport 99 99 Theme Code (as % of total Bank financing) City-wide Infrastructure and Service Delivery 100 100 E. Bank Staff Positions At ICR At Approval Vice President: Jorge Familiar Calderon Pamela Cox Country Director: Martin Raiser John Briscoe Practice Manager/Manager: Aurelio Menendez Jose Luis Irigoyen Project Team Leader: Georges Bianco Darido Jorge M. Rebelo ICR Team Leader: Bianca Bianchi Alves ICR Primary Author: Bianca Bianchi Alves F. Results Framework Analysis Project Development Objectives (from Project Appraisal Document) The development objective was to: a) improve the level-of-service provided to the urban rail transport users in the São Paulo Metropolitan Region in a safe and cost-efficient manner by increasing the peak-hour and off-peak carrying capacity of Lines A and F (now known as Lines 7 and 12) of the Companhia Paulista de Trens Metropolitanos (CPTM) and Lines 1, 2 and 3 of the São Paulo Metro Company (Metro); and b) continue the strengthening of the transport management and policy framework in the SPMR. ii Revised Project Development Objectives (as approved by original approving authority) The project development objective was revised only to include Line 11 of CPTM (beside Lines 7 and 12) as the object of intervention. The final development objective became: a) improve the level-of-service provided to the urban rail transport users in the São Paulo Metropolitan Region in a safe and cost-efficient manner by increasing the peak-hour and off-peak carrying capacity of Lines 7, 11, and 12 of the Companhia Paulista de Trens Metropolitanos (CPTM) and Lines 1, 2, and 3 of the São Paulo Metro Company (Metro); and b) continue the strengthening of the transport management and policy framework in the SPMR. (a) PDO Indicator(s) Original Target Actual Value Formally Values (from Achieved at Indicator Baseline Value Revised approval Completion or Target Values documents) Target Years Indicator 1 : Number of trains in peak/off peak-hour - CPTM Line 7 (A) Value quantitative or 7.5/4 15/8 15/8 19/15 Qualitative) Date achieved 12/30/2007 4/30/2012 4/30/2015 12/30/2014 Comments (incl. % 127%/187% achievement) Indicator 2 : Number of trains in peak/off peak-hour - CPTM Line 12 (F) Value quantitative or 7.5/4 15/8 15/8 20/16 Qualitative) Date achieved 12/30/2007