The World Bank East-West Highway Corridor Improvement (P149952) REPORT NO.: RES53719 RESTRUCTURING PAPER ON A PROPOSED PROJECT RESTRUCTURING OF THE EAST-WEST HIGHWAY CORRIDOR IMPROVEMENT PROJECT APPROVED ON DECEMBER 3, 2015 TO GEORGIA TRANSPORT GLOBAL PRACTICE EUROPE AND CENTRAL ASIA REGION Regional Vice President: Antonella Bassani Country Director: Rolande Simone Pryce Regional Director: Charles Joseph Cormier Practice Manager/Manager: Shomik Raj Mehndiratta Task Team Leader(s): Amali Rajapaksa The World Bank East-West Highway Corridor Improvement (P149952) ABBREVIATIONS AND ACRONYMS AF Additional Financing to the East-West Highway Corridor Improvement Project EIB European Investment Bank EWH East-West Highway EWHCIP East-West Highway Corridor Improvement Project EWHIP-4 Fourth East-West Highway Improvement Project FM Financial Management GoG Government of Georgia ITS Intelligent Transport System MESD Ministry of Economy and Sustainable Development MS Moderately Satisfactory PDO Project Development Objective RAP Resettlement Action Plan RD Roads Department of Georgia VOC Vehicle Operating Costs The World Bank East-West Highway Corridor Improvement (P149952) BASIC DATA Product Information Project ID Financing Instrument P149952 Investment Project Financing Original EA Category Current EA Category Full Assessment (A) Full Assessment (A) Approval Date Current Closing Date 03-Dec-2015 31-Dec-2023 Organizations Borrower Responsible Agency Ministry of Finance Project Development Objective (PDO) Original PDO The proposed PDOs are to: (i) reduce road user costs along the East-West Highway Corridor section upgraded under the project; and (ii) strengthen the capacity of the Roads Department and the Ministry of Economy and Sustainable Development to respectively manage the road network and provide an enabling environment to improve logistics services. OPS_TABLE_PDO_CURRENTPDO Summary Status of Financing (US$, Millions) Net Ln/Cr/Tf Approval Signing Effectiveness Closing Commitment Disbursed Undisbursed IBRD-87880 08-Nov-2017 04-Dec-2017 02-Apr-2018 31-Dec-2023 20.00 16.77 1.97 IBRD-85470 03-Dec-2015 10-Feb-2016 19-May-2016 31-Dec-2023 140.00 104.54 35.46 The World Bank East-West Highway Corridor Improvement (P149952) Policy Waiver(s) Does this restructuring trigger the need for any policy waiver(s)? No I. PROJECT STATUS AND RATIONALE FOR RESTRUCTURING A. Project Status 1. The East-West Highway (EWH) is the single largest investment in the history of Georgia and is the “land bridge” of the Middle Corridor linking Europe and China. The EWH provides easy access from Azerbaijan and Armenia to Black Sea ports and Turkey for transportation of freight and passengers serving the entire region. The development of the EWH commenced with the pioneer investment of the Bank in 2006 that has subsequently brought Asian Development Bank and European Investment Bank (EIB) to collectively mobilize over US$ 2.3 billion to date, towards the development of the corridor. For over 15 years, the Bank has taken the lead role in shaping the development of the EWH through nine investments amounting to US$527 million. The EWH traverses across 430 km of extremely difficult terrain, with engineered technically complex solutions consisting of 51 tunnels and 97 bridges and has now reached almost 90 percent completion. Given the opportunities for regional development and the transit potential that translates to economic growth and job creation, the EWH has become the primary focus of the Government of Georgia (GoG). And its importance has only grown more prominently given the increased traffic along the Middle Corridor as a result of the Russia-Ukraine conflict. The early completion of the EWH to be able to extract the potential benefits has now become both a political and economic commitment to the people of Georgia. 2. The East-West Highway Corridor Improvement Project (EWHCIP) is the fifth investment project finance operation of the Bank for the development of the EWH and supports the “Rikoti Pass” within the EWH. This section is the most complex and contains the largest bottleneck, given its terrain and the construction methodologies. Measures have been taken by GoG in the past to open the EWH, section by section to allow early use of these sections to pass on early benefits to the road users. The first Bank-financed section of 1.9 km constructed under the EWHCIP was opened in 2020 and another 27 km within the Rikoti pass, financed by several Development Partners was opened in October 2023. This leaves approximately 31 km remaining within the Rikoti pass, including the Bank financed section still under construction, while other parts of the EWH are in use. 3. Under the EWHCIP, the parent project was approved for US$164 million (US$140 million IBRD financing and US$24 million counterpart funding) in 2015 to support the upgrading of an 8 km highway section from Zemo Osiauri to Chumateleti. Subsequently, Additional Financing (AF) of EUR 16.9 million (US$20 million equivalent) was provided in 2017 to extend the corridor from Chumateleti to Khevi, for an additional 11 km, bringing the total number of kilometers to be upgraded under the project to 19 km. The AF was supplemented by counterpart funding by the GoG and co-financing by the EIB in the amount of EUR 16.9 million and EUR 67.47 million, respectively. The co-financing between EIB and the Bank is governed by the Principles of Collaboration signed between the two Banks. The World Bank East-West Highway Corridor Improvement (P149952) 4. Subsequent to the approval of the AF, the single contract awarded for carrying out the works under the parent project was terminated in 2018 for poor performance and later re-tendered. However, a period of 2 years for implementation was lost due to the said contract being re-awarded only in December 2020. Most importantly, the project has suffered from delays in mobilization of equipment and labor due to the pandemic and the resulting closure of Chinese ports and limited access to mobile, skilled workforce. Moreover, geological conditions in Georgia have adversely affected the implementation of these contracts. There has been no extension to the project closing date sought previously in relation to the above or for any implementation delays. 5. This project paper proposes a second closing date extension of the parent project and will result in a cumulative extension of 4.5 years (54 months) beyond the original closing date of December 31, 2020. The first extension of the parent project closing date by 36 months was approved in conjunction with the additional finance to scale up activities under the parent project. By the proposed new closing date, the project will have been under implementation for 9.5 years1 since it was approved. The project is in its eighth year of implementation and has disbursed 77 percent of the loan (around 74 percent of the parent project and 99.6 percent of the AF). The EIB co- financing that has been fully disbursed, is scheduled to close on October 23, 2024. The status of the main project components is as follows: 6. Component 1: Improvement and Asset Management of the East-West Highway Corridor: The EWHCIP includes two ongoing civil works contracts, one financed under the parent project and the other under the AF. In addition to the civil works contracts, this component also includes the financing of the supervision services. (a) Parent project - E-60 Highway section from Zemo Osiauri to Chumateleti (F0 Lot 2): This project includes two civil works contracts financed by the World Bank and GoG. The first one for the construction of 1.9 km section of the E-60 highway from Zemo Osiauri to Chumateleti was completed and opened to traffic in 2020 (F0 – Lot 2.A). Currently, the works are ongoing at the consecutive highway section with the length of 6.36 km for the contract value of GEL 264.99 million (US$80.5 million equivalent) (F0 – Lot 2.B). Works commenced in March 2021, with an original completion date of civil works of May 31, 2023. The project includes construction of 3 tunnels and 6 bridge structures. The physical and financial progress, as of the end of October 2023, stands at 56 percent and 64 percent, respectively. Following the analysis of the contractor’s capacity and previously achieved progress, the Dispute Board is considering a request for time extension. According to the Contractor’s current schedule, the civil works are expected to be finalized in December 2024. (b) Additional Financing - E-60 Highway section from Chumateleti to Khevi (F1): Upgrading of this 11.6 km section is jointly financed by the World Bank, EIB and GoG.2 The works valued at GEL 329.88 million (US$112.7 million equivalent) commenced in October 2019, with a completion date of August 31, 2023. The scope of works includes 3 tunnels, 19 bridge structures, and 12 retaining walls. The physical and financial progress as of the end of October 2023 is 62 percent and 71 percent, respectively. As per the contractor’s current schedule, the works implementation is expected to be finalized in September 2024. (c) Construction supervision services: This sub-component consists of the two contracts for supervision of the above civil works, which are expected to be extended considering the delays in completing the ongoing construction works. 1 Project approved in 2015 with a project period of 5 years. 2 EIB and GoG financing pertain only to the civil works, while the World Bank financing extends across all components. The World Bank East-West Highway Corridor Improvement (P149952) 7. Component 2: Institutional Strengthening (a) Sub-component 2.1. ITS capacity strengthening: This sub-component finances the consulting services to provide advisory support on the implementation of Intelligent Transport System (ITS), namely, to support the establishment of the Roads Department (RD) National Highway Control Center. The consultancy is under procurement processing. Two RD staff from the Road Traffic Management Unit and one staff from Road Safety Division have received external training on the application of ITS and road safety. The component also supports the development of the road users’ satisfaction surveys as well as the Capacity Gap Analysis of RD. (b) Sub-component 2.2. Technical support to the Ministry of Economy and Sustainable Development (MESD) to develop and implement a logistics strategy: Georgia’s National Transport and Logistics Strategy for the period 2023-2030, including a two-year Action Plan, has been developed based on the national logistics strategy originally developed through the project in 2017, targeting the period of 2017-2026. The new strategy, prepared by MESD with the state financing, was approved by the Cabinet of Ministers on August 15, 2023. At the same time, an interdepartmental commission for the development of the transport and logistics sector was created by the Government decree, with the aim of coordinating implementation of the measures detailed in the new strategy and related action plan. 8. Component 3: Project Management Support: This component finances strengthening of procurement, financial management (FM) and safeguards implementation through hiring the external consultants. 9. Component 4: Preparation of Future Investments: This component financed the detailed design for the upgrading of Tbilisi-Sagarejo and Sagarejo-Bakurtsikhe road sections, which was used for the preparation of the Bank- financed Kakheti Connectivity Improvement Project. The study was initiated under the Fourth East-West Highway Improvement Project (EWHIP-4), and subsequently transferred to the EWHCIP at the close of the EWHIP-4. 10. Status of Safeguards Compliance: The project triggered OP/BP 4.01 on Environmental Assessment, OP/BP 4.36 Forests and OP/BP 4.12 on Involuntary Resettlement. The safeguards compliance rating has been upgraded to Moderately Satisfactory (MS) since the last Implementation Status and Results Report of September 2023. Construction waste management, including disposal of excess material generated through earth works, and compliance with occupational health and safety rules have been the greatest challenges encountered in the environmental management of works. Spring-summer season of 2023 was marked by exceptionally heavy rainfall that compromised stability of slopes within the highway construction sites. Excessive amount of the slip material as well as a need to remove instable layers of earth and rock from steep surfaces generated large volumes of spoil. RD managed to promptly clean and secure active carriageways and provided permanent surveillance of slopes to ensure safety of traffic and human life. However, ad hoc disposal of spoil caused overfilling of storage facilities and partial congestion of the nearby river. Once the weather conditions improved, RD developed and agreed with the Bank a corrective action plan and promptly started its implementation. At present, cleaning of the riverbed is advancing, and technical documentation is being compiled to obtain required clearances for the arrangement of sufficient stockpiles of excess material. Compacting, landscaping, and site reinstatement is planned for the stockpiles that are filled to their capacity. 11. All resettlement activities are completed per Resettlement Action Plans (RAP), and performance is satisfactory. However, there may be a need to relocate three additional households. This is subject to the assessment by the National Forensics Bureau. In case physical resettlement is decided, due process will be carried out and addendum The World Bank East-West Highway Corridor Improvement (P149952) to the RAP submitted to the Bank for clearance. RD developed a Livelihood Restoration Plan for informal vendors of Surami settlement, as the new alignment of the highway will bypass their current location, reducing their sales and income. The plan was discussed with the affected vendors in October 2023. Location for an alternative marketplace is selected along the new alignment of the highway, where vendors will be able to continue their economic activity, predominantly selling the traditional local sweet bread. 12. Progress on Procurement: All large contracts are awarded and are being implemented as elaborated above. No more substantial contracts are expected to be procured under the project. The procurement performance rating is MS, with project procurement risk being Moderate. 13. Progress on Financial Management and Disbursement: Financial management has been rated Satisfactory throughout project implementation. All key FM and disbursement arrangements are in place, and the project was following key FM requirements. Periodic interim un-audited project financial statements are usually submitted on time and found to be acceptable. There are no overdue audits of the project financial statements. 14. Overall, the project is on track to achieving its PDO. One of its five PDO level indicators - National Logistics Program approved by GoG – has already been achieved, while three indicators have been partially met, namely: (i) reduction in travel time from Zemo Osiauri to Khevi, achieving 15 percent of the travel time indicator; (ii) savings in vehicle operating costs (VOC) in terms of cars, achieving 10 percent of the indicator, and (iii) savings in VOC in terms of trucks, also being achieved by 10 percent. The remaining PDO indicator in relation to the asset value of the EWH corridor from Tbilisi to Sarpi will be replaced. Both the Implementation Progress and Achievement of the PDO are rated MS due to delays in the completion of the ongoing civil works under Component 1. B. Rationale for Restructuring 15. The project currently has two ongoing civil works contracts under Component 1, as described above. Both contracts are behind the implementation schedule, owing primarily to the COVID-19 pandemic-related travel restrictions that have hindered contractors’ mobilization on site. The constraints to the availability of sufficiently skilled personnel and equipment coming from outside of Georgia have added to these delays. Adverse geological conditions have also contributed to the delay in works implementation. All the above factors have disproportionately affected the contracts that are extremely complex in nature. As indicated above, the parent project has also suffered from a termination of the single civil works contract due to poor performance that has cost two years in project implementation. 16. Recent performance of the contractors is characterized by accelerated pace of implementation. The progress reflects an increased allocation of equipment and labor, which in some cases were diverted from recently completed sections. Furthermore, action has also been taken to avoid issues of quality by deploying the necessary monitoring arrangements that will avoid delays due to rectification work. In addition, the resources of the supervision consultants have also been increased to respond to the increased pace of progress of the contractors. Recognising the increase in commitment of resources and the acceptance of the revised programs by the supervision consultants and RD, the contracts are likely to be completed by December 2024. It is also noted that the requests for time extensions for F0 and F1 by the contractors have been made only until December and September of 2024, respectively. Leaving a comfortable margin of approximately six months for any further slippage, a period of 18 months from the current closing date is requested for the completion of the works and achievement of the PDO. 17. The restructuring of the project proposes to (i) extend the current project closing date by 18 months, from December 31, 2023 to June 30, 2025, to allow for the completion of the two ongoing civil works contacts for the The World Bank East-West Highway Corridor Improvement (P149952) construction of the E-60 highway section from Zemo Osiauri to Khevi (F0 - Lot 2.B & F1), and (ii) amend the results framework to reflect a change to the two PDO level results indicators, in addition to dropping one intermediate results indicator. II. DESCRIPTION OF PROPOSED CHANGES 18. The proposed Level 2 restructuring of the project is prepared in response to the request by the Ministry of Finance dated November 9, 2023. A. Change in the Results Framework 19. PDO Level Results Indicators: There is no change to the PDO, however, out of the five outcome indicators, one will be replaced and one will be revised as follows: (a) Asset value of the East-West Highway corridor from Tbilisi to Sarpi (GEL Million). The relevance of this indicator, which measures the asset value of the entire EWH corridor currently being upgraded, has been assessed and found to be inappropriate as it cannot be attributable solely to the project. Instead, it is proposed to replace the mentioned indicator with “The study for the development of ITS system completed” in order to be better aligned with the activities and the outcomes of the project. (b) National Logistics Program adopted by MESD. Georgia’s National Transport and Logistics Strategy of 2023- 2030 and its Action Plan, prepared by MESD, was approved by the Cabinet of Ministers in August 2023 and will be adopted by several Government agencies. Therefore, this indicator is amended to reflect the accurate position by amending to read as “National Logistics Program approved by GoG”. 20. Intermediate Result Indicators: The Results Framework of the project contains ten intermediate indicators, of which one will be deleted as explained below: (a) MESD staff (8) trained in relevant areas including logistics. Although the Bank acknowledges that the respective staff from MESD have been trained on topics related to transport and logistics planning and management, these trainings have been carried out through different programs, among them with grant funding, but not using the funds of the project. Therefore, the results achieved cannot be attributable to the project. Furthermore, based on an understanding that MESD will not be undertaking any additional training or activities under the project, there is no ground for monitoring the mentioned indictor within the Results Framework. B. Change in Components and Cost 21. The overall component structure of the project does not change. The total IBRD financing of US$160 million (US$140 million allocated for the parent project and US$20 million equivalent for the AF) remain unchanged. No reallocations will be necessary due to the loan including only one category. The project cost related information is presented below: (a) Parent Project – The estimated increases in both the civil works and supervision costs will be managed within the overall project cost of US$164 million (US$140 million IBRD financing and US$24 million The World Bank East-West Highway Corridor Improvement (P149952) counterpart funding by the GoG), which remain unchanged. No additional funds will be required. Please refer to Annex 1 for the project cost. (b) Additional Financing – The estimated increase in the civil works cost is around twenty percent and will require an additional EUR 46 million for the completion of the section being co-financed by EIB. Hence, EIB has recently diverted funds of EUR 32 million (US$35 million equivalent) from a parallel project and the balance of EUR 14 million (USD 15.3 million equivalent) will be provided by the Government. With the injection of additional funds, AF will have in place EUR 147.3 million in total to fund all the project activities. No additional funds will be needed from the IBRD. Please refer to Annex 2 for more details on the project costs. C. Change in Disbursements: The revised disbursement schedule reflects the change in the rate of implementation. D. Change in Implementation Schedule and Closing Date 22. An extension of the project closing date by 18 months is requested by the GoG in order to complete the works at the Zemo Osiauri-Chumateleti and Chumateleti-Khevi sections of the EWH. The revised closing date will be June 30, 2025. This period of time reflects the revised timelines to complete the project highway sections, as shown in the table below. Component 1 Civil works To be completed by Construction of Zemo Osiauri-Chumateleti section December 2024 (F0 - Lot 2.B) Construction of Chumateleti-Khevi section (F1) September 2024 III. SUMMARY OF CHANGES Changed Not Changed Results Framework ✔ Loan Closing Date(s) ✔ Disbursements Arrangements ✔ Disbursement Estimates ✔ Implementation Schedule ✔ Implementing Agency ✔ The World Bank East-West Highway Corridor Improvement (P149952) DDO Status ✔ Project's Development Objectives ✔ PBCs ✔ Components and Cost ✔ Cancellations Proposed ✔ Reallocation between Disbursement Categories ✔ Overall Risk Rating ✔ Safeguard Policies Triggered ✔ EA category ✔ Legal Covenants ✔ Institutional Arrangements ✔ Financial Management ✔ Procurement ✔ Other Change(s) ✔ Economic and Financial Analysis ✔ Technical Analysis ✔ Social Analysis ✔ Environmental Analysis ✔ IV. DETAILED CHANGE(S) OPS_DETAILEDCHANGES_LOANCLOSING_TABLE LOAN CLOSING DATE(S) Original Revised Proposed Proposed Deadline Ln/Cr/Tf Status Closing Closing(s) Closing for Withdrawal Applications IBRD-85470 Effective 31-Dec-2020 31-Dec-2023 30-Jun-2025 31-Oct-2025 IBRD-87880 Effective 31-Dec-2023 30-Jun-2025 31-Oct-2025 OPS_DETAILEDCHANGES_DISBURSEMENT_TABLE DISBURSEMENT ESTIMATES Change in Disbursement Estimates The World Bank East-West Highway Corridor Improvement (P149952) Yes Year Current Proposed 2016 1,288,695.90 350,000.00 2017 5,791,790.00 10,035,295.21 2018 7,805,944.60 20,679,653.88 2019 11,749,523.40 -5,595,663.77 2020 16,956,742.00 8,167,652.55 2021 27,770,588.70 32,704,154.03 2022 37,167,621.80 24,384,364.77 2023 31,708,945.20 20,091,422.93 2024 19,760,148.40 21,183,120.40 2025 0.00 28,000,000.00 . The World Bank East-West Highway Corridor Improvement (P149952) . Results framework COUNTRY: Georgia East-West Highway Corridor Improvement Project Development Objectives(s) The proposed PDOs are to: (i) reduce road user costs along the East-West Highway Corridor section upgraded under the project; and (ii) strengthen the capacity of the Roads Department and the Ministry of Economy and Sustainable Development to respectively manage the road network and provide an enabling environment to improve logistics services. Project Development Objective Indicators by Objectives/ Outcomes RESULT_FRAME_TBL_PDO Indicator Name PBC Baseline Intermediate Targets End Target 1 2 3 4 5 6 7 8 9 Reduce road user costs along the East-West Highway Corridor section Travel time from Zemo Osiauri to 17.70 15.80 13.20 13.20 Khevi (Minutes) Action: This Rationale: indicator has been The indicator values remain the same. The value in Year 9 reflects the target to be achieved by December 2024. Revised Vehicle Operating Costs from Zemo Osiauri to Khevi 0.31 0.30 0.28 0.28 (cars) US$/km (Amount(USD)) Action: This Rationale: indicator has been The indicator values remain the same. The value in Year 9 reflects the target to be achieved by December 2024. Revised The World Bank East-West Highway Corridor Improvement (P149952) RESULT_FRAME_TBL_PDO Indicator Name PBC Baseline Intermediate Targets End Target 1 2 3 4 5 6 7 8 9 Vehicle Operating Costs from Zemo Osiauri to Khevi 0.56 0.55 0.55 (trucks) US$/km (Amount(USD)) Action: This Rationale: indicator has been The indicator values remain the same. The value in Year 9 reflects the target to be achieved by December 2024. Revised Strengthen the capacity of RD and MESD Asset value of the East West Highway corridor from Tbilisi 1,246.50 4,880.00 5,755.00 to Sarpi (GEL Million) (Amount(USD)) Rationale: Action: This The relevance of this indicator has been assessed and found to be inappropriate, as it measures the asset value of the entire East-West Highway corridor currently indicator has been being upgraded, and it cannot be attributable solely to the project. Marked for Deletion National Logistics Program approved No Yes Yes Yes by GoG (Yes/No) Rationale: Action: This Georgia's National Transport and Logistics Strategy of 2023-2030 and its Action Plan, prepared by MESD and approved by the GoG in August 2023, will be adopted by indicator has been several Government agencies. Therefore, the original indicator "National Logistics Program adopted by MESD" is amended to reflect the accurate position. For the Revised purpose of this indicator, the national logistics program means the Action Plan identifying key priority actions to be implemented in Georgia in the transport and logistics sector, based on the relevant strategy. The World Bank East-West Highway Corridor Improvement (P149952) RESULT_FRAME_TBL_PDO Indicator Name PBC Baseline Intermediate Targets End Target 1 2 3 4 5 6 7 8 9 The study for the development of ITS No Yes Yes system completed (Yes/No) Action: This indicator is New PDO Table SPACE Intermediate Results Indicators by Components RESULT_FRAME_TBL_IO Indicator Name PBC Baseline Intermediate Targets End Target 1 2 3 4 5 6 7 8 9 Component 1: Corridor Improvement Roads constructed, non-rural 0.00 8.00 19.00 19.00 (Kilometers) Action: This Rationale: indicator has been The indicator values remain the same. The value in Year 9 reflects the target to be achieved by December 2024 by constructing the road from Zemo Osiauri to Khevi. Revised Road users satisfied with quality of road and services and the project's 0.00 50.00 80.00 80.00 responsiveness to their transport needs (gender The World Bank East-West Highway Corridor Improvement (P149952) RESULT_FRAME_TBL_IO Indicator Name PBC Baseline Intermediate Targets End Target 1 2 3 4 5 6 7 8 9 disaggregated) (Percentage) Action: This Rationale: indicator has been The indicator values remain the same. The value in Year 9 reflects the target to be achieved by December 2024. Revised Key ITS equipment installed on selected and prioritized East- 0.00 50.00 75.00 100.00 100.00 West Highway locations (Percentage) Action: This Rationale: indicator has been The indicator values remain the same. The value in Year 9 reflects the target to be achieved by December 2024. Revised Component 2: Institutional strengthening RD/ITS staff (5) staff trained in ITS services 0.00 2.00 5.00 5.00 management and monitoring (Number) Action: This Rationale: indicator has been The indicator values remain the same. The value in Year 9 reflects the target to be achieved by December 2024. Revised Key legislation/measure No Yes Yes Yes s to provide an The World Bank East-West Highway Corridor Improvement (P149952) RESULT_FRAME_TBL_IO Indicator Name PBC Baseline Intermediate Targets End Target 1 2 3 4 5 6 7 8 9 enabling environment to enhance logistics services drafted (Yes/No) Action: This Rationale: indicator has been The indicator remains the same. The value in Year 8 reflects the actual period of the target being achieved. Revised MESD staff (8) trained in relevant 0.00 3.00 6.00 8.00 areas including logistics (Number) Rationale: Action: This Given that the MESD staff was trained in relevant areas of transport and logistics through different programs but not using the project funds, the results achieved indicator has been cannot be accounted for the project. Therefore, the indicator has been suggested for deletion. Marked for Deletion Preparation and endorsement of an Annual Road Safety Action Plan aligned Yes Yes Yes Yes Yes Yes Yes Yes Yes with the National Road Safety Strategy (Yes/No) Action: This Rationale: indicator has been The indicator values remain the same. The value in Year 9 reflects the target to be achieved by December 2024. Revised The World Bank East-West Highway Corridor Improvement (P149952) RESULT_FRAME_TBL_IO Indicator Name PBC Baseline Intermediate Targets End Target 1 2 3 4 5 6 7 8 9 Studies to support logistics sector No No No No No Yes Yes Yes Yes Yes Yes development completed (Yes/No) Action: This Rationale: indicator has been Indicator remains the same. It reflects the extended period of 18 months. Revised Component 3: Project management support Percentage of project related grievances 0.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 addressed by the RD (Percentage) Action: This Rationale: indicator has been The indicator values remain the same. The value in Year 9 reflects the target to be achieved by December 2024. Revised Component 4: Preparation of designs and supporting studies for future projects for the development of the East-West Highway Number of studies completed 0.00 1.00 (Number) Action: This indicator has been Revised IO Table SPACE The World Bank East-West Highway Corridor Improvement (P149952) The World Bank East-West Highway Corridor Improvement (P149952) Annex 1: Project Cost of the Parent Project (inclusive of taxes, US$ m) IBRD Financing, Total Project Components (US$ million) Financing, (IBRD and GoG) (US$ million) Component 1. Improvement and asset management of 135.25 158.5 the East-West Highway Corridor Component 2. Institutional strengthening 1.6 2.0 Component 3. Project management support 0.4 0.5 Component 4. Preparation of future projects 2.4 3.0 Total Project Costs 139.65 164.0 Front-end fee 0.35 Total Financing 140.0 164.0 The World Bank East-West Highway Corridor Improvement (P149952) Annex 2: Updated Project Cost of the Additional Financing (inclusive of taxes, EUR m) Current Cost Proposed Cost Total No change Revised Revised Revised Components IBRD co- EIB co- Borrower Project IBRD co- EIB co- Borrower Total Project financing financing co-financing Financing financing financing co-financing Financing (EURm) (EURm) (EURm) (EURm) (EURm) (EURm) (EURm) (EURm) Component 1: Improvement and Asset 12.6 67.473 16.9 97.0 12.6 99.474 30.9 143.0 Management of the East-West Highway Corridor (including contingencies) Component 2: Institutional Strengthening 3.4 0.0 0.0 3.4 3.4 0.0 0.0 3.4 Component 3: Project Management 0.8 0.0 0.0 0.8 0.8 0.0 0.0 0.8 including independent audit of project accounts (one consolidated audit for EIB and WB loans) Component 4: Preparation of future 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 investments Front-end fee (0.25%) 0.04 0.0 0.0 0.04 0.04 0.0 0.0 0.04 Total 16.9 67.47 16.9 101.3 16.9 99.47 30.9 147.3 3 Initial allocation by EIB. 4 This includes additional allocation by EIB approved in October 2023.