Document of The World Bank Public Disclosure Authorized Report No: ICR00001726 IMPLEMENTATION COMPLETION AND RESULTS REPORT (IBRD-70830) ON A Public Disclosure Authorized LOAN IN THE AMOUNT OF EURO98.6 MILLION (US$ 85 MILLION EQUIVALENT) TO THE FEDERATIVE REPUBLIC OF BRAZIL FOR A FORTALEZA METROPOLITAN TRANSPORT PROJECT Public Disclosure Authorized March 30, 2011 Sustainable Development Department Brazil Country Management Unit Latin America and Caribbean Region Public Disclosure Authorized CURRENCY EQUIVALENTS (Exchange Rate Effective March 11, 2011) Currency Unit = Real (R$) R$ 1.00 = US$ 0.60 US$ 1.00 = R$1.66 FISCAL YEAR [January 1 – December 31] ABBREVIATIONS AND ACRONYMS ARCE State of Ceara Regulatory Agency CBTU Brazilian Urban Train Company DO Development Objectives EMU Electric Multiple Units ETTUSA Empresa de Transito e Transporte Urbano S.A. EAS Environmental Assessment Study FM Municipality of Fortaleza FMR Fortaleza Metropolitan Region GoB Brazilian Federal Government IERR Internal Economic Rate of Return JBIC Japan Bank for International Cooperation Metrofor Ceara Metropolitan Transport Company NCB National Competitive Bidding NPV Net Present Value O&M Operations and Maintenance PAR Performance Audit Report PCR Project Completion Report PCU Project Coordination Unit PIU Project Implementation Unit PSP Private Sector Participation PIPP Public Investment Pilot Program RTCC Regional Transport Coordination Commission SC State Government of Ceara SEINFRA Secretariat of Infrastructure of Ceara SEMACE Cearl State Environmental Agency STU/FOR Fortaleza subdivision of the Brazilian Urban Train Company Vice President: Pamela Cox Country Director: Makhtar Diop Sector Manager: Aurelio Menendez Project Team Leader: Jorge Rebelo ICR Team Leader: Aurelio Menendez BRAZIL FORTALEZA METROPOLITAN TRANSPORT 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 Graph 1. Project Context, Development Objectives and Design ............................................... 1 2. Key Factors Affecting Implementation and Outcomes .............................................. 5 3. Assessment of Outcomes .......................................................................................... 10 4. Assessment of Risk to Development Outcome ......................................................... 14 5. Assessment of Bank and Borrower Performance ..................................................... 15 6. Lessons Learned ....................................................................................................... 19 7. Comments on Issues Raised by Borrower/Implementing Agencies/Partners .......... 19 Annex 1. Project Costs and Financing .......................................................................... 21 Annex 2. Outputs by Component ................................................................................. 22 Annex 3. Economic and Financial Analysis ................................................................. 23 Annex 4. Bank Lending and Implementation Support/Supervision Processes ............ 25 Annex 5. Beneficiary Survey Results ........................................................................... 26 Annex 6. Stakeholder Workshop Report and Results ................................................... 26 Annex 7. Summary of Borrower's ICR and/or Comments on Draft ICR ..................... 27 Annex 8. Comments of Cofinanciers and Other Partners/Stakeholders ....................... 34 Annex 9. List of Supporting Documents ...................................................................... 34 MAP A. Basic Information FORTALEZA METROPOLITAN Country: Brazil Project Name: TRANSPORT PROJECT Project ID: P060221 L/C/TF Number(s): IBRD-70830 ICR Date: 03/30/2011 ICR Type: Core ICR FEDERATIVE Lending Instrument: SIL Borrower: REPUBLIC OF BRAZIL Original Total USD 85.00M Disbursed Amount: USD 34.81M Commitment: Revised Amount: USD 22.40M Environmental Category: B Implementing Agencies: CBTU Metrofor Cofinanciers and Other External Partners: B. Key Dates Revised / Actual Process Date Process Original Date Date(s) Concept Review: 05/19/1999 Effectiveness: 09/09/2002 09/09/2002 Appraisal: 05/25/2000 Restructuring(s): 03/22/2006 Approval: 12/04/2001 Mid-term Review: 02/27/2006 02/17/2006 Closing: 03/31/2006 09/30/2010 C. Ratings Summary C.1 Performance Rating by ICR Outcomes: Moderately Satisfactory Risk to Development Outcome: High Bank Performance: Moderately Satisfactory Borrower Performance: Moderately Satisfactory C.2 Detailed Ratings of Bank and Borrower Performance (by ICR) Bank Ratings Borrower Ratings Moderately Quality at Entry: Satisfactory Government: Unsatisfactory Implementing Quality of Supervision: Moderately Satisfactory Moderately Satisfactory Agency/Agencies: i Overall Bank Overall Borrower Moderately Satisfactory Moderately Satisfactory Performance: Performance: C.3 Quality at Entry and Implementation Performance Indicators Implementation QAG Assessments Indicators Rating Performance (if any) Potential Problem Project Quality at Entry Yes None at any time (Yes/No): (QEA): Problem Project at any Quality of Yes None time (Yes/No): Supervision (QSA): DO rating before Moderately Closing/Inactive status: Satisfactory D. Sector and Theme Codes Original Actual Sector Code (as % of total Bank financing) General transportation sector 100 100 Theme Code (as % of total Bank financing) Decentralization 50 50 Infrastructure services for private sector development 50 50 E. Bank Staff Positions At ICR At Approval Vice President: Pamela Cox David de Ferranti Country Director: Makhtar Diop Vinod Thomas Sector Manager: Aurelio Menendez Danny M. Leipziger Project Team Leader: Aurelio Menendez Jorge M. Rebelo ICR Team Leader: Aurelio Menendez ICR Primary Author: Jose Ricardo Marar Shomik Raj Mehndiratta F. Results Framework Analysis Project Development Objectives (from Project Appraisal Document) (a) improve the quality of public urban transport in the FMR by enhancing the de velopment of a fully integrated urban transport system under the coordination of a Regional Transport Coordination Commission (RTCC) and rehabilitate the Metro for West Line; (b) to transfer the STU/FOR system from the Federal to the State ii government; and (c) increase the private sector participation in the operatio n and management of the Metrofor system (West and South lines) generated text Revised Project Development Objectives (as approved by original approving authority) (a) PDO Indicator(s) Original Target Formally Actual Value Values (from Revised Achieved at Indicator Baseline Value approval Target Completion or documents) Values Target Years Percentage of rail stations physically and tariff integrated with the bus lines Indicator 1 : (integration related objective) Value quantitative or 0% 50% 50% Qualitative) Date achieved 11/26/2001 11/26/2005 09/20/2010 Comments Physical integration complete. Tariff integration ongoing and expected to be (incl. % completed by end 2011 achievement) Indicator 2 : Rail share of urban transport motorized trips (%) (congestion related objective) Value quantitative or 2% 10% 2% Qualitative) Date achieved 11/26/2001 11/26/2005 09/26/2010 Comments Likely to reach 5% in 20 months after operations. Operations scheduled to start (incl. % in 2011 achievement) Generalized cost of travel (travel time plus fare plus reliability) in minutes Indicator 3 : between Caucaia and João Felipe (accessibility of low-income users related objective) Value quantitative or 93 65 70 Qualitative) Date achieved 11/26/2001 11/26/2005 09/26/2010 Comments (incl. % Partially achieved achievement) Indicator 4 : Decentralization of STU-FOR to State Value quantitative or Not decentralized Completed Completed Qualitative) Date achieved 11/26/2001 11/26/2002 06/15/2002 Comments (incl. % Systems transferred to the State and Decentralization completed achievement) iii (b) Intermediate Outcome 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 : % of the Permanent Way Works completed Value (quantitative 0% 100% 100% or Qualitative) Date achieved 11/26/2001 11/26/2005 09/26/2010 Comments (incl. % Achieved achievement) Indicator 2 : % of other Civil Works completed Value (quantitative 0 100% 100% or Qualitative) Date achieved 11/26/2001 11/26/2005 09/26/2010 Comments (incl. % Achieved achievement) Indicator 3 : % of Rolling Stock and System works completed Value (quantitative 0% 100% 70% or Qualitative) Date achieved 11/26/2001 11/26/2005 09/26/2010 Comments (incl. % Substantially achieved. Remaining two trainsets are under construction achievement) Indicator 4 : Private Sector Participation Value No Private Sector (quantitative Modeling revised Modeling revised Participation or Qualitative) Date achieved 11/26/2001 11/26/2005 09/26/2010 Comments (incl. % Achieved achievement) Indicator 5 : Establishment and strengthening of formal RTCC Value No target values Regular monthly (quantitative Start periodic meetings reported meetings or Qualitative) Date achieved 11/26/2001 11/26/2005 09/26/2010 Comments (incl. % Achieved achievement) Indicator 6 : Integrated Urban Transport, Land Use and Air Quality Strategy iv Final report Final report Value discussed in a discussed in a (quantitative Draft report completed participatory participatory or