The World Bank Mozambique Safer Roads for Socio-Economic Integration Program (P174639) REPORT NO.: RES57509 RESTRUCTURING PAPER ON A PROPOSED PROJECT RESTRUCTURING OF MOZAMBIQUE SAFER ROADS FOR SOCIO-ECONOMIC INTEGRATION PROGRAM APPROVED ON SEPTEMBER 18, 2023 TO REPUBLIC OF MOZAMBIQUE TRANSPORT EASTERN AND SOUTHERN AFRICA Regional Vice President: Victoria Kwakwa Country Director: Zviripayi Idah Pswarayi Riddihough Regional Director: Wendy E. Hughes Practice Manager/Manager: Karla Gonzalez Carvajal Task Team Leader(s): Monica Augustina Cristina Moldovan, Emmanuel Taban The World Bank Mozambique Safer Roads for Socio-Economic Integration Program (P174639) ABBREVIATIONS AND ACRONYMS ANE National Road Administration /Administração Nacional de Estradas IDA International Development Association INATRO National Institute of Land Transport /Instituto Nacional de Transportes Rodoviários MOPHRH Ministry of Public Works, Housing and Water Resources / Ministério das Obras Públicas, Habitação e Recursos Hídricos MPA Multiphase Programmatic Approach MTC Ministry of Transport and Communications PDO Project Development Objective PIU Project Implementation Unit OPBRC Output- and performance-based road contracts SRSEI Safer Roads for Socio-Economic Integration Program BASIC DATA Product Information Project ID Financing Instrument P174639 Investment Project Financing Environmental and Social Risk Classification (ESRC) High Approval Date Current Closing Date 23-Aug-2022 30-Nov-2028 Organizations Borrower Responsible Agency Republic of Mozambique The World Bank Mozambique Safer Roads for Socio-Economic Integration Program (P174639) Multiphase Programmatic Approach (MPA) Program Development Objective The MPA Program Development Objective (PrDO) is to improve road connectivity, safety, and climate resilience in the Program areas. The PrDO will be pursued based on a social inclusion pillar, which will be a key foundation for all individual PDO objectives under all three MPA phases. Multiphase Programmatic Approach (MPA) Status (Public Disclosure) Status and Key Decisions (Public Disclosure) On August 22, 2022, the World Bank’s Board of Directors approved an IDA financing envelope in the amount of US$850 million equivalent for the Safer Roads for Socio-Economic Integration Program using a Multi-phase Programmatic Approach (MPA) comprising three phases with a total duration of ten years. Together with the MPA framework, the Board also approved Phase I of the MPA, an IDA grant in the amount of SDR 297.6 million (US$400 million equivalent) to the Republic of Mozambique. The Grant Agreement was signed on September 30, 2022 and the project’s effectiveness conditions were met. The project became effective on December 15, 2022, ahead of the effectiveness deadline of December 29, 2022. OPS_TABLE_PDO_CURRENTPDO Project Development Objective (PDO) Original PDO The Project Development Objective is to improve road connectivity, safety, and climate resilience and develop social inclusion in the Project areas. OPS_TABLE_PDO_CURRENTPDO Summary Status of Financing (US$, Millions) Net Ln/Cr/Tf Approval Signing Effectiveness Closing Commitment Disbursed Undisbursed IDA-E0780 23-Aug-2022 30-Sep-2022 15-Dec-2022 30-Nov-2028 400.00 20.00 376.07 Policy Waiver(s) Does this restructuring trigger the need for any policy waiver(s)? No I. PROJECT STATUS AND RATIONALE FOR RESTRUCTURING A. Project Status 1. The Safer Roads for Socio-Economic Integration Program (SRSEI) as Phase 1 of the Multiphase Programmatic Approach (MPA) comprising three phases was approved by the World Bank Board of Directors on August 23, 2022, with a total The World Bank Mozambique Safer Roads for Socio-Economic Integration Program (P174639) estimated financing envelope of US$ 850 million - of which initial approval for Phase 1 of approximately US$400 million equivalent, comprising an International Development Association (IDA) Grant (E0780). The project became effective on December 15, 2022. There are two project implementation units (PIUs), one housed at the Ministry of Public Works, Housing and Water Resources (MOPHRH) through the Road Fund (FE) and one housed at the Ministry of Transport and Communications (MTC). 2. Eight months into project implementation, both progress towards achievement of the Project Development Objective (PDO) and overall implementation progress are rated Moderately Satisfactory. Under Component 1 (Safe and Resilient Road Connectivity, US$361 million) procurement of consultancy for concept design support for the OPBRC civil works was launched on May 22, 2023 for the three priority road section rehabilitaiton of the N1 under the Phase 1, namely Package 1: Inchope - Gorongosa & Gorongosa - Caia Lot 1 (0-88km); Package 2: Gorongosa - Caia Lot 2 (88-162km) & Metoro – Pemba; and Package 3: Chimuara - Nicoadala Lot 1 (0-88km) & Chimuara - Nicoadala Lot 2 (88-176km). It was agreed that works monitoring consultancy services will be procured separately considering the experience with the IFRDP OPRC works monitoring; the procurement of thse services is expected to be launched by end October 2023. However, there are delays in launching the activities for Component 2 (Community Engagement and Women Empowerment, US$6.80 million), Component 3 (Improved Road Safety Management, US$9.80 million) and Component 4 (Institutional Development and Project Management, US$22.40 million). There are delays in the recruitment of the dedicated staff at both PIUs. Except for one, all covenants to comply with within 4 months since effectiveness of the project have not been met. A list of activities has been agreed with the PIUs to be implemented through end of December 2023 to advance with project implementation. B. Rationale for Restructuring 3. The proposed restructuring aims at adding an additional PDO indicator to measure the number of beneficiaries, to comply with the agreed scope of the IDA 20 replenishment. It is a mandatory transport indicator. No other technical or financial change is made. 4. The IDA Deputies, representing both borrower and donor countries, met in December 2021 to agree on the scope of the IDA 20 replenishment. They approved a US$93 billion package to help low-income developing countries respond to the pandemic and build a more resilient and inclusive future. As part of the package negotiations, the IDA Deputies also agreed on a set of performance indicators to better track and monitor development outcomes in borrower countries. This included the mandatory transport indicator “Number of People with Enhanced Access to Transport”. To meet with this commitment, the Government of Mozambique (GoM) requested a restructuring of the project to include the mandatory transport indicator. II. DESCRIPTION OF PROPOSED CHANGES 5. The only proposed change is the addition of the IDA mandatory transport indicator “Number of People with Enhanced Access to Transport” as a PDO indicator in the results framework. Details on the definition, baseline, targets, methodology and responsibility for data collection are presented in the Results Framework. The World Bank Mozambique Safer Roads for Socio-Economic Integration Program (P174639) 6. No changes are made to the PDO, closing date, project components and costs, implementation arrangements or project covenants. ES NOTE TABLE III. SUMMARY OF CHANGES Changed Not Changed Results Framework ✔ Implementing Agency ✔ DDO Status ✔ Project's Development Objectives ✔ MPA Program Development Objective ✔ MPA Expected Results and Indicators ✔ PBCs ✔ Components and Cost ✔ Loan Closing Date(s) ✔ Cancellations Proposed ✔ Reallocation between Disbursement Categories ✔ Disbursements Arrangements ✔ Disbursement Estimates ✔ Overall Risk Rating ✔ Legal Covenants ✔ Institutional Arrangements ✔ Financial Management ✔ Procurement ✔ Implementation Schedule ✔ Other Change(s) ✔ Economic and Financial Analysis ✔ Technical Analysis ✔ Social Analysis ✔ The World Bank Mozambique Safer Roads for Socio-Economic Integration Program (P174639) Environmental Analysis ✔ IV. DETAILED CHANGE(S) MPA PROGRAM DEVELOPMENT OBJECTIVE Current MPA Program Development Objective The MPA Program Development Objective (PrDO) is to improve road connectivity, safety, and climate resilience in the Program areas. The PrDO will be pursued based on a social inclusion pillar, which will be a key foundation for all individual PDO objectives under all three MPA phases. EXPECTED MPA PROGRAM RESULTS Current Expected MPA Results and their Indicators for the MPA Program Improve Connectivity: - Travel time along N1 corridor in the Program areas (Baseline: 18 hours in 2022; end target: 13 hours in 2032) Improve Safety: - Number of road fatalities along N1 corridor in the Program areas (reduction by 50 percent by 2032 in absolute terms) (Baseline: 340 in 2022; end target: 170 in 2032) Improve Resilience: - Days of closure of N1 corridor in the Program areas to traffic/ extreme weather/ natural disaster events (Baseline: 11 days in 2022; end target: 1 day in 2032) . The World Bank Mozambique Safer Roads for Socio-Economic Integration Program (P174639) . Results framework COUNTRY: Mozambique Mozambique Safer Roads for Socio-Economic Integration Program Project Development Objectives(s) The Project Development Objective is to improve road connectivity, safety, and climate resilience and develop social inclusion in the Project areas. Project Development Objective Indicators by Objectives/ Outcomes RESULT_FRAME_TBL_PDO Indicator Name PBC Baseline Intermediate Targets End Target 1 2 Improve Connectivity Travel time along N1 corridor (Hours) 18.00 18.00 18.00 16.00 Improve Safety Number of road fatalities along N1 340.00 320.00 300.00 270.00 corridor (Number) Improve Climate Resilience Days of closure of N1 corridor due to extreme weather and natural disasters 11.00 9.00 7.00 3.00 (Days) Develop Social Inclusion Communities’ satisfaction with social inclusion activities disaggregated by sex 0.00 30.00 50.00 70.00 (Percentage) People with enhanced access to 0.00 0.00 134,000.00 146,548.00 transportation services (CRI, Number) Action: This indicator is New The World Bank Mozambique Safer Roads for Socio-Economic Integration Program (P174639) PDO Table SPACE Intermediate Results Indicators by Components RESULT_FRAME_TBL_IO Indicator Name PBC Baseline Intermediate Targets End Target 1 Component 1: Safe and Resilient Road Connectivity Length of primary roads rehabilitated and maintained under OPBRC (with an engineering 0.00 300.00 508.00 design inclusive of climate resilience technical specifications) (Kilometers) Number of km of primary roads assessed at least 3 stars using iRAP star rating methodology 0.00 300.00 508.00 (Kilometers) Number of schools along N1 corridor assessed at least 3 stars using iRAP star rating for schools 0.00 107.00 107.00 methodology (Text) Number of high risk crash locations improved TBC TBC TBC (Text) Component 2: Community Engagement and Women Empowerment Length of regional roads maintained per project year through Community Based Maintenance 0.00 100.00 300.00 (Kilometers) Percentage of women led microenterprises contracted to perform road maintenance works 0.00 10.00 20.00 (Percentage) Total number of workdays generated through 0.00 50,000.00 150,000.00 labour-based maintenance (workdays) (Days) The World Bank Mozambique Safer Roads for Socio-Economic Integration Program (P174639) RESULT_FRAME_TBL_IO Indicator Name PBC Baseline Intermediate Targets End Target 1 Number of work days generated for women through labor based maintenance (50% of total 0.00 25,000.00 75,000.00 workdays) (Days) Component 3: Improved Road Safety Management Road safety road design standards are reviewed No Yes Yes and updated (Yes/No) Development and use of crash data collection and Partially (improved crash data collection Database is fully functional and reports are No database management system (Text) and reporting piloted on the N1) generated Post-crash response pilot designed, implemented, Partially (pilot designed and under No Yes and evaluated (Text) implementation on the N1) Graduates recruited in technical internship 0.00 20.00 30.00 program in ANE and INATRO (Number) Graduates recruited in technical internship program in ANE and INATRO who are women 0.00 27.00 40.00 (Percentage) Component 4: Institutional Development and Project Management Development and use of RAMS within RF/ANE to Partially (review of existing HIMS No Yes support decision making (Text) conducted and consultant hired to upgrade Climate resilient designs are adopted and applied on all new No Yes Yes rehabilitation/construction/maintenance works country wide (Yes/No) (Yes/No) Partially (supportive studies and surveys Preparation of a new Road Bill including auxiliary No completed and drafting of the road bill Yes surveys and studies (text) (Text) started) Grievances registered that are responded within 0.00 100.00 100.00 the stipulated service standards (Percentage) The World Bank Mozambique Safer Roads for Socio-Economic Integration Program (P174639) IO Table SPACE The World Bank Mozambique Safer Roads for Socio-Economic Integration Program (P174639)