The World Bank Trade and Logistics Services Competitiveness Project (P158982) REPORT NO.: RES56967 DOCUMENT OF THE WORLD BANK RESTRUCTURING PAPER ON A PROPOSED PROJECT RESTRUCTURING OF TRADE AND LOGISTICS SERVICES COMPETITIVENESS PROJECT APPROVED ON MAY 4, 2017 TO REPUBLIC OF TOGO FINANCE, COMPETITIVENESS AND INNOVATION WESTERN AND CENTRAL AFRICA Regional Vice President: Ousmane Diagana Country Director: Coralie Gevers Regional Director: Abebe Adugna Dadi Practice Manager/Manager: Consolate K. Rusagara Task Team Leader(s): Kaliza Karuretwa, Alphonse Soh The World Bank Trade and Logistics Services Competitiveness Project (P158982) I. BASIC DATA Product Information Project ID Financing Instrument P158982 Investment Project Financing Original EA Category Current EA Category Partial Assessment (B) Partial Assessment (B) Approval Date Current Closing Date 04-May-2017 30-Jun-2023 Organizations Borrower Responsible Agency Republic of Togo Ministry of Economy and Finance Project Development Objective (PDO) Original PDO The proposed project aims to improve the efficiency of trade logistics services in Togo. Summary Status of Financing (US$, Millions) Net Ln/Cr/Tf Approval Signing Effectiveness Closing Commitment Disbursed Undisbursed IDA-60310 04-May-2017 16-Aug-2017 13-Dec-2017 30-Jun-2023 18.00 18.83 .25 Policy Waiver(s) Does this restructuring trigger the need for any policy waiver(s)? No II. SUMMARY OF PROJECT STATUS AND PROPOSED CHANGES The World Bank Trade and Logistics Services Competitiveness Project (P158982) During the March 2023 supervision mission, just a couple of months to project closure, significant progress in the implementation of activities was noted, reflected in particular by the disbursement rate which stands at 101.6% as of June 2023. This disbursement rate reflects the fact that most activities have been completed under both components while others have made good progress. However, one key activity for achieving the project objectives is significantly delayed which justifies the need for a 3-month extension for the project to be completed in good standing. The first project development objective (PDO) relating to the number of operators in compliance with the new legislative and regulatory framework will be achieved during this extension given the delay in the adoption of the Law on Road Transport and its implementing decrees. Likewise, the delivery of equipment for the Centre de Contrôle Technique (CCT) has been delayed due to procurement processes that were canceled and relaunched. The Project status by component is as follows: "Component 1: Strengthening the road transport and logistics services sector" Some of the achievements under this component include: • An exhaustive review of the legal and regulatory framework as well as the formalization and professionalization of the road transport sub-sector delivered by International Road Transport Union (IRU): Diagnostic of the road transport sub-sector; Definition of the vision of the actors in 2019; Drafting of the Road Transport and Auxiliary Professions Bill in 2020; Development of practical guides and popularization and training materials in 2021; Development of training modules and reference materials for owners and managers of transport companies, freight forwarders, freight brokers and professional road drivers; • Capacity building of officials from the Ministry of Technical and Vocational Education as well as officials from the Ministry of Transport 2021 including the training of 22 trainers trained and certified by World Transport Organisation (IRU), 47 transport stakeholders were trained including road transport company managers, freight forwarders and freight brokers. While important progress has been made under this component, some critical activities are yet to be delivered, namely: a) Delivery of Equipment by UNOPS for the improvement and scaling up of vehicle technical control outside of Lomé as well as school vehicles for the operationalization of the training center. While delivery has been slowed due to constraints in the supply chain during COVID, the contract is in progress and some equipment was delivered in April and May 2023. However, the procurement process had to be relaunched by UNOPS for part of the equipment due to a case of mis-procurement and irregularities and will not be completed before the current project closure date of June 30, 2022. "Component 2: Improving trade facilitation" The activities of this component focused on the following activities: (i) Support to the national committee for the facilitation of exchanges (CNFE) for the implementation of the measures and commitments under the WTO Trade Facilitation Agreement (TFA); (ii) Support to the Togolese Revenue Authority carry out key customs reforms;(iii) The World Bank Trade and Logistics Services Competitiveness Project (P158982) Support for the National Road Transport Facilitation Committee (CNF); (iii) Support the Cellule Climat des Affaires in carrying for the implementation of key Doing Business reforms. Noteworthy achievements include: • Support to the Togolese Revenue Office: (i) Sensitization of the customs code to 1,482 beneficiaries who have been trained on the new national customs code, (ii) Deployment of 100 barcode readers for OTR to support the effort to dematerialize customs clearance procedures; (iii) training activities on the status of Authorized Economic Operators (AEO) framework, the training auditors on customs procedures and related risks and training of approved Customs Brokers on the Single Customs Declaration. • Support implementation of Investment Climate reforms under the coordination of Cellule Climate des Affaires (CCA) in the Presidency: (i) Acquisition of computer equipment for selected public institutions: the CCA, the OTR-Office of the Autonomous Port of Lomé (PAL), Services Techniques of the Mairie de Lomé, the Bar Association, the Commercial Court; (ii) deployment of the Integrated Building Permit Management System (SIGPC); (v) update of the electronic platforms of the Trade and Per sonal Property Credit Register (RCCM) and the Commercial Court of Lomé with new functionalities; acquisition of legal material for the library of the Commercial Court; provision of internet connection for the commercial court. Rationale for Restructuring The recent supervision missions which took place in March 2023 identified critical activities at risk of not being achieved before project closure. • The supply of equipment under the UNOPS contract: discussions with the PCU and UNOPS that the last batch of equipment of expected around July 2023 following the cancellation of and relaunching of the procurement process due to irregularities in the procurement process. Significant delays on other equipment procured by UNOPS were also due to external factors such as disruptions pf of the supply chain and shipping lines during COVID. The delivery date of the remaining equipment will be beyond the current closing date of the project. The projected timeline for the process of acquisition, delivery of the remaining mobile equipment for the Centre de Contrôle Technique. • The adoption of the framework law on road transport and related implementing texts was significantly delayed with the 2nd decree adopted in June 2023 leaving insufficient time to carry out sensitization of key operators and ensure that the project meets the PDO objective related to the number of operators in compliance with the new legislative and regulatory framework for the road transport sector. The law was adopted in Dec 2022, 2 implementing decrees: (i) Decree setting the conditions for access and practice of the profession of road driver (adopted on February 22, 2023, and (ii) Decree setting the conditions for access to the profession of transport operators, intermediaries and auxiliaries transport and the exercise of road transport activities adopted on June 09, 2023 Financial Management: the last supervision mission noted that financial management performance rating is rated Satisfactory (S) and the level of financial risk remains moderate. The overall disbursement rate is 101.6% 9due to exchange rate fluctuations). III. DETAILED CHANGES The World Bank Trade and Logistics Services Competitiveness Project (P158982) LOAN CLOSING DATE(S) Original Revised Proposed Proposed Deadline Ln/Cr/Tf Status Closing Closing(s) Closing for Withdrawal Applications IDA-60310 Effective 30-Jun-2022 30-Jun-2023 30-Sep-2023 30-Jan-2024