The World Bank DEMOCRATIC REPUBLIC OF CONGO - High Priority Reopening and Maintenance Project (P101745) REPORT NO.: RES40306 RESTRUCTURING PAPER ON A PROPOSED PROJECT RESTRUCTURING OF THE HIGH PRIORITY REOPENING AND MAINTENANCE PROJECT APPROVED ON MARCH 18, 2008 TO THE DEMOCRATIC REPUBLIC OF CONGO TRANSPORT GLOBAL PRACTICE AFRICA REGION Regional Vice President: Hafez M. H. Ghanem Country Director: Jean-Christophe Carret Regional Director: Riccardo Puliti Practice Manager: Nicolas Peltier-Thiberge Task Team Leaders: Tojoarofenitra Ramanankirahina, Julie Babinard The World Bank DEMOCRATIC REPUBLIC OF CONGO - High Priority Reopening and Maintenance Project (P101745) ABBREVIATIONS AND ACRONYMS AF Additional Financing DRC Democratic Republic of Congo PDO Project Development Objective GBV Gender-based Violence GRM Grievance Redress Mechanism IDA International Development Association INT Integrity Vice Presidency IPN Inspection Panel MAP Management Action Plan RVP Regional Vice Presidency TF Trust Fund The World Bank DEMOCRATIC REPUBLIC OF CONGO - High Priority Reopening and Maintenance Project (P101745) BASIC DATA Product Information Project ID Financing Instrument P101745 Investment Project Financing Original EA Category Current EA Category Full Assessment (A) Full Assessment (A) Approval Date Current Closing Date 18-Mar-2008 29-Feb-2020 Organizations Borrower Responsible Agency Ministry of Finance,Ministry of Finance,Ministry of Infrastructure and Public Works,Ministry of Environment Democratic Republic of Congo and Sustainable development,Cellule Infrastructures,Cellule Infrastructures - Ministry of Public Works,Office des Routes Project Development Objective (PDO) Original PDO The proposed project's development objective is to re-establish lasting access between provincial capitals and districts and territories in three provinces in a way that is sustainable for people and the natural environment in the area of influence of the operation. Current PDO The objective of the project is to re-establish lasting road access between provincial capitals, districts and territories, in the Project impact area in a manner that is sustainable for the natural environment OPS_TABLE_PDO_CURRENTPDO Summary Status of Financing Net Ln/Cr/Tf Approval Signing Effectiveness Closing Commitment Disbursed Undisbursed IDA-57630 18-Feb-2016 18-Mar-2016 06-Dec-2016 29-Feb-2020 125.00 112.92 13.45 IDA-H7050 28-Jun-2011 12-Aug-2011 08-Nov-2011 28-Feb-2018 62.50 57.23 0 IDA-H3590 18-Mar-2008 08-Jul-2008 07-Oct-2008 28-Feb-2018 49.41 48.02 0 The World Bank DEMOCRATIC REPUBLIC OF CONGO - High Priority Reopening and Maintenance Project (P101745) TF-99492 12-Aug-2011 12-Aug-2011 08-Nov-2011 30-Jun-2016 22.94 22.94 0 TF-92300 08-Jul-2008 08-Jul-2008 07-Oct-2008 30-Jun-2016 70.74 70.74 0 Policy Waiver(s) Does this restructuring trigger the need for any policy waiver(s)? No I. PROJECT STATUS AND RATIONALE FOR RESTRUCTURING 1. The project is supported by a total IDA amount of US$238 million equivalent. This includes an IDA grant (IDA- H3590) of US$50 million equivalent approved by the World Bank Board on March 18, 2008. A first Additional Financing (AF1) (IDA-H7050) in the amount of US$63 million equivalent was approved on June 28, 2011 to scale up Pro-Routes activities, and on February 18, 2016, a second AF (AF2) (IDA-57630) in the amount of US$125 million equivalent was approved. The project had also two trust funds (TF) (TF-92300 and TF99492) in the total financing of US$94 million. Both TFs were closed as of June 30, 2016 and have been fully disbursed. The original financing (IDA-H3590) and the first AF (IDA-H7050) have been closed since February 28, 2018 with a fully disbursed status. 2. The project development objective (PDO) is to re-establish lasting access between provincial capitals, districts and territories in four provinces (Province Orientale, Katanga, Sud Kivu, and Equateur) in a manner that is sustainable for the natural environment. The project comprises of the following four components: (a) Road Rehabilitation and Maintenance; (b) Institutional Strengthening; (c) Environmental and Social Management; and (d) Monitoring and Evaluation. 3. Three of the five main road works are now completed and the remaining two will be completed by March 31, 2020. Rehabilitation works on the RN2 Goma-Bukavu road have now significantly progressed with the proportion of the road length in very poor condition having decreased from 62 percent in May 2019 down to 8 percent in November 2019. 4. To date, the following main results have been achieved under the project: (a) 2,600 km of roads were reopened by the project against a target of 2,672 km (97 percent achieved) serving villages and remote areas where more than one million people live and who have had limited or no access to all weather roads for many years; and (b) 3,295 km are under mechanized routine maintenance contracts to ensure their sustainability, against a target of 3,344km (98 percent achieved). Three out of the five road rehabilitation works have been completed. The planned remaining works are expected to end by February 29, 2020. 5. Safeguards risk management measures are in place and actions approved under the Management Action Plan (MAP) after the 2017 Inspection Panel (IPN) investigation are on track. A complaint describing serious harm to project-affected communities was received by the World Bank IPN on August 3, 2017. The complaint related to the conditions of exploitation of quarries and Borrow pits under the project, particularly regarding the Tongo- The World Bank DEMOCRATIC REPUBLIC OF CONGO - High Priority Reopening and Maintenance Project (P101745) Butale quarry exploited as part of the National Road No. 2 (RN2) Bukavu-Goma road civil works financed by the project. Other serious allegations related to instances of Gender-based Violence (GBV) against community members, poor working conditions, and sexual harassment against female contractor staff, as well as excessive use of force by Congolese military personnel assigned to protect the worksites. Following review of the IPN’s eligibility report by the World Bank Board of Executive Directors, a full investigation was launched by the Panel. Disbursements on all civil works were suspended on November 26, 2017. 6. In response to the IPN’s Investigation Report (No. 124033-ZR), the World Bank Management submitted its Management Response, including a detailed MAP with 28 actions to be implemented. The MAP was approved by the Board on September 7, 2018. As of February 20, 2020. implementation of the MAP is on track with 10 actions completed, 16 actions on track and to be monitored until the Project closes, one action pending the resumption of works on National Road 2 (RN2),1 and one action that was not applicable at this point.2 7. The lifting of the suspension of IDA disbursements was approved on December 10, 2018, following a review that all conditions set out in the World Bank’s suspension letter dated November 26, 2017 had been met for works to re-start in full compliance with World Bank policies and safeguards obligations. The conditions included: (a) compliance by the Congolese authorities of all the conditions set at the time of the suspension, both for the Goma-Bukavu road (RN2) and for the other roads financed under Pro-Routes; and (b) that implementation of the action plan approved by the Board as part of the Management Response to the IPN investigation report is on track. 8. The progress towards achievement of the project’s PDO and overall Implementation Progress ratings are currently rated as moderately satisfactory (MS). The overall safeguard rating is still moderately unsatisfactory (MU) mainly due to delays in implementing the proposed actions related to the Tongo-Butale quarry. As of today, about 14 percent of the AF2 amount remain undisbursed. 9. The overall project financial management system has been rated satisfactory. The quarterly Interim Financial Reports have been submitted on time and the quality of the reports has been found to be satisfactory. The external audit has been conducted in line with International Audit Standards, the reports have been submitted before June 30th of every fiscal year as indicated in the Financing Agreement, and the reports were unqualified. Most of the audit and World Bank recommendations have been successfully implemented. 10. An extension until June 30, 2020 is requested to: (i) properly complete and close all remaining works; (ii) ensure that all the required safeguards actions are completed, including validation of all the implementation and closing reports; and (iii) finalize completion of the required actions of the MAP. In addition, the proposed extension would provide a buffer period as a precautionary measure to ensure that any new safeguards issues are properly addressed, including ensuring that all complaints, including GBV complaints, have been treated, or that eventual GBV allegations, received during the period after the works have closed, are being treated. Once all the complaints are treated and closed, final implementation reports must be prepared and validated before the project closing date. 1This action involves the hiring of 20 workers from the community by the RN2 Contractor. 2This action relates to the support to be provided to GBV survivors that would not have been completed by the closing date of the ProRoutes Project. This action is not applicable at this point since the Project closing date has been extended by the World Bank until February 29, 2020. The World Bank DEMOCRATIC REPUBLIC OF CONGO - High Priority Reopening and Maintenance Project (P101745) 11. The proposed closing date extension meets the requirements of the World Bank Investment Project Financing (IPF) Directive regarding extension of closing dates, specifically: (i) the project objectives remains achievable; (ii) the performance of the Borrower remains satisfactory; (iii) the World Bank and the Borrower agree on actions that will be undertaken by the Borrower to complete project critical activities; and (iv) there are no outstanding audits and/or interim financial reports. 12. The extension of the project would allow to complete the remaining activities and pending tasks under the project according to the following timeline: (a) By March 31, 2020: All road works would be completed, and all works site would be properly closed; (b) By June 30, 2020: All remaining actions under the MAP would be completed and complaints including GBV would be treated and adequately closed. All safeguards mitigation measures would be fully implemented; and (c) By June 30, 2020: Final project implementation reports including on safeguards and GBV measures would have been prepared and validated. II. DESCRIPTION OF PROPOSED CHANGES 1. This restructuring proposes a four-month extension of the current closing date of the AF2 from February 29, 2020 to June 30, 2020. The Government of the Democratic Republic of Congo (DRC) sent the request on December 31, 2019, indicating a request to reallocate funds between the disbursement categories and the need for more time to ensure the reallocation of funds and proper closure of the project’s road work sites as well as satisfactory reporting on the finalizing of the environmental and social safeguard mitigation measures under the project. The letter also requested the reallocation between the disbursement categories in order to complete additional road repair works that resulted from the suspension of works for the duration of one year. 2. The AF2 was approved on February 18, 2016 for an original closing date of February 28, 2018 and has already been extended twice to February 29, 2020. The project is twelve years old and extending the closing date by an additional four months would allow the project to complete the planned works as well as the measures identified in response to the IPN investigation. In particular: (i) completion of the remaining works on roads Bukavu-Goma, and Dulia-Bondo; (ii) implementation of any required safeguards actions necessary at the end of the works, including the validation of the completion reports on the environmental and social safeguarding activities under the project; and (iii) completion of the required actions of the MAP, in particular the restoration of the quarry Tongo-Butale, including that of the field around the electricity pylon near the quarry, which was scheduled for September 2019 and has been delayed until the end of March 2020. Similarly, obtaining the operating permit of the quarry adjoining Tongo-Butale is still expected. The Governor of the South Kivu region where the quarry is located is committed to issuing the necessary permit very soon. Technicians visited the quarry site during the month of December 2019 to prepare the necessary authorization documents by end of February 2020. The end target dates for indicators in the Results Framework will be extended to reflect the new closing date. The World Bank DEMOCRATIC REPUBLIC OF CONGO - High Priority Reopening and Maintenance Project (P101745) III. SUMMARY OF CHANGES Changed Not Changed Results Framework ✔ Loan Closing Date(s) ✔ Reallocation between Disbursement Categories ✔ Implementation Schedule ✔ Implementing Agency ✔ DDO Status ✔ Project's Development Objectives ✔ Components and Cost ✔ Cancellations Proposed ✔ Disbursements Arrangements ✔ Disbursement Estimates ✔ 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 The World Bank DEMOCRATIC REPUBLIC OF CONGO - High Priority Reopening and Maintenance Project (P101745) LOAN CLOSING DATE(S) Original Revised Proposed Proposed Deadline Ln/Cr/Tf Status Closing Closing(s) Closing for Withdrawal Applications 28-Feb-2019, 29- IDA-57630 Effective 28-Feb-2018 30-Jun-2020 30-Oct-2020 Feb-2020 30-Jun-2016, 28- IDA-H3590 Closed 30-Sep-2013 Feb-2018, 17-Oct- 2018 28-Feb-2018, 17- IDA-H7050 Closed 30-Jun-2016 Oct-2018 30-Jun-2016, 14- TF-92300 Closed 30-Sep-2013 Dec-2016 TF-99492 Closed 30-Jun-2016 03-Jan-2017 OPS_DETAILEDCHANGES_REALLOCATION _TABLE REALLOCATION BETWEEN DISBURSEMENT CATEGORIES Financing % Current Allocation Actuals + Committed Proposed Allocation (Type Total) Current Proposed IDA-57630-001 | Currency: XDR iLap Category Sequence No: 1-A Current Expenditure Category: GD, WK,CS PERFORMANCE CONTRACT 200,000.00 34,061.56 200,000.00 100.00 100.00 iLap Category Sequence No: 1-B Current Expenditure Category: GD, WK,CS ENVIRONT SOCIAL ASSIST 14,600,000.00 12,781,299.12 14,600,000.00 100.00 100.00 iLap Category Sequence No: 1-C Current Expenditure Category: GDS-WKS-CS Others 73,300,000.00 60,641,581.30 73,300,000.00 100.00 100.00 iLap Category Sequence No: 2A Current Expenditure Category: PERFORM BONUSES -ODR 0.00 0.00 0.00 100.00 100.00 iLap Category Sequence No: 2B Current Expenditure Category: PERFORM BONUSES - MECNT AND ICCN The World Bank DEMOCRATIC REPUBLIC OF CONGO - High Priority Reopening and Maintenance Project (P101745) 162,000.00 345.76 162,000.00 100.00 100.00 iLap Category Sequence No: 3-A Current Expenditure Category: OP.COSTS CI 1,950,000.00 1,759,317.69 2,400,000.00 100.00 100.00 iLap Category Sequence No: 3-B Current Expenditure Category: OP.COSTS MIIPW 216,000.00 176,993.43 315,000.00 100.00 100.00 iLap Category Sequence No: 3-C Current Expenditure Category: OP.COSTS ODR 123,000.00 63,201.39 123,000.00 100.00 100.00 iLap Category Sequence No: 4 Current Expenditure Category: UNALLOCATED 549,000.00 0.00 0.00 Total 91,100,000.00 75,456,800.25 91,100,000.00 . The World Bank DEMOCRATIC REPUBLIC OF CONGO - High Priority Reopening and Maintenance Project (P101745) . Results framework COUNTRY: Congo, Democratic Republic of DEMOCRATIC REPUBLIC OF CONGO - High Priority Reopening and Maintenance Project Project Development Objectives(s) The objective of the project is to re-establish lasting road access between provincial capitals, districts and territories, in the Project impact area in a manner that is sustainable for the natural environment Project Development Objective Indicators by Objectives/ Outcomes RESULT_FRAME_TBL_PDO Indicator Name DLI Baseline Intermediate Targets End Target 1 2 3 4 5 6 7 Number of rural people with access to an all-season road (Action: This Objective has been Revised) Direct project 600.00 600.00 910.00 1,390.00 1,920.00 2,400.00 2,400.00 2,400.00 4,900,000.00 beneficiaries (Number) Action: This indicator has been Revised Female beneficiaries 51.00 51.00 51.00 51.00 51.00 51.00 51.00 51.00 51.30 (Percentage) Share of rural population with access 1.40 1.40 2.00 3.20 4.30 5.40 5.40 5.40 14.10 to an all-season road (Percentage) Action: This indicator has been Revised Number of rural people with access 125,000.00 125.00 190.00 290.00 400.00 500.00 500.00 510.00 4,300,000.00 to an all-season road (Number) The World Bank DEMOCRATIC REPUBLIC OF CONGO - High Priority Reopening and Maintenance Project (P101745) RESULT_FRAME_TBL_PDO Indicator Name DLI Baseline Intermediate Targets End Target 1 2 3 4 5 6 7 number of people connected to all season 125,000.00 4,300,000.00 roads (Number) Action: This indicator has been Revised Days per year with roads not passable by 4x2 vehicles on 0.00 0.00 0.00 0.00 0.00 0.00 reopened sections (Number) Action: This indicator has been Revised Kisangani-Beni 30.00 30.00 30.00 25.00 20.00 15.00 15.00 15.00 20.00 (Number) Action: This indicator has been Revised Akula-Gemena- Libenge-Zongo 40.00 40.00 40.00 10.00 15.00 15.00 15.00 15.00 15.00 (Number) Action: This indicator has been Revised Uvira - Kasaomeno 365.00 365.00 10.00 17.00 24.00 35.00 (Number) The World Bank DEMOCRATIC REPUBLIC OF CONGO - High Priority Reopening and Maintenance Project (P101745) RESULT_FRAME_TBL_PDO Indicator Name DLI Baseline Intermediate Targets End Target 1 2 3 4 5 6 7 Action: This indicator has been Revised Kisangani - Bunduki 365.00 6.00 10.00 15.00 20.00 30.00 (Number) Action: This indicator has been Revised Komanda-Bunia-Goli 30.00 15.00 (Number) Action: This indicator has been Revised Beni-Kasindi 25.00 15.00 (Number) Action: This indicator has been Revised Bukavu-Goma 30.00 15.00 (Number) Action: This indicator has been Revised Percentage of annual national road 67.00 75.00 maintenance budget disbursed (Percentage) The World Bank DEMOCRATIC REPUBLIC OF CONGO - High Priority Reopening and Maintenance Project (P101745) RESULT_FRAME_TBL_PDO Indicator Name DLI Baseline Intermediate Targets End Target 1 2 3 4 5 6 7 Action: This indicator has been Revised Deforestation rate within a bandwith of 10 kilometers centered on 0.00 0.00 the project's road sections. (Percentage) Action: This indicator has been Revised Dulia-Bondo 5.00 5.00 (Percentage) Action: This indicator has been Revised Akula-Gemena- 8.00 8.00 Zongo (Percentage) Action: This indicator has been Revised Beni-Kasindi 7.00 7.00 (Percentage) Action: This indicator has been Revised Komanda-Bunia-Goli 15.00 15.00 (Percentage) The World Bank DEMOCRATIC REPUBLIC OF CONGO - High Priority Reopening and Maintenance Project (P101745) RESULT_FRAME_TBL_PDO Indicator Name DLI Baseline Intermediate Targets End Target 1 2 3 4 5 6 7 Action: This indicator has been Revised Bukavu-Goma 7.00 7.00 (Percentage) Action: This indicator has been Revised PDO Table SPACE Intermediate Results Indicators by Components RESULT_FRAME_TBL_IO Indicator Name DLI Baseline Intermediate Targets End Target 1 2 3 4 5 6 Road Reopening and Maintenance (Action: This Component has been Revised) Reopened project roads in good to fair condition 0.00 100.00 95.00 90.00 85.00 85.00 90.00 (Percentage) Action: This indicator has been Revised Roads rehabilitated, Non- 0.00 60.00 475.00 917.00 1,359.00 2,672.00 rural (Kilometers) Action: This indicator has been Revised Kilometers of project roads maintained each 0.00 3,344.00 year (Kilometers) The World Bank DEMOCRATIC REPUBLIC OF CONGO - High Priority Reopening and Maintenance Project (P101745) RESULT_FRAME_TBL_IO Indicator Name DLI Baseline Intermediate Targets End Target 1 2 3 4 5 6 Action: This indicator has been Revised Roads in good and fair condition as a share of 16.00 20.00 25.00 30.00 35.00 55.00 total classified roads (Percentage) Action: This indicator has been Revised Size of the total classified network 15,800.00 15,800.00 15,800.00 15,800.00 15,800.00 15,800.00 (Kilometers) Monitoring and Evaluation (Action: This Component has been Revised) Percentage of project beneficiaries consulted during the project 0.00 10.00 implementation period (Percentage) Action: This indicator has been Revised Sexually active people reporting use of condom during their last 0.00 0.00 intercourse in selected communities (Percentage) Action: This indicator has been Revised The World Bank DEMOCRATIC REPUBLIC OF CONGO - High Priority Reopening and Maintenance Project (P101745) RESULT_FRAME_TBL_IO Indicator Name DLI Baseline Intermediate Targets End Target 1 2 3 4 5 6 Nord Kivu Province 21.00 22.00 (Percentage) Action: This indicator has been Revised Province Katanga 28.00 22.00 (Percentage) Action: This indicator has been Revised Province Orientale 7.00 56.00 (Percentage) Action: This indicator has been Revised Province Sud Kivu 60.00 38.00 (Percentage) Action: This indicator has been Revised Province Equateur 41.80 46.00 (Percentage) Action: This indicator has been Revised Environmental and Social Program (Action: This Component has been Revised) Number of MECNT and ICCN staff trained and active in implementing 0.00 500.00 laws and accompanying local initiatives (Number) The World Bank DEMOCRATIC REPUBLIC OF CONGO - High Priority Reopening and Maintenance Project (P101745) RESULT_FRAME_TBL_IO Indicator Name DLI Baseline Intermediate Targets End Target 1 2 3 4 5 6 Action: This indicator has been Revised Condoms distributed 0.00 2,100,000.00 (Number) Action: This indicator has been Revised Percentage of protected species in the monthly count of bush meat 0.00 0.00 checked at selected control points along: (Percentage) Action: This indicator has been Revised Akula-Gemena-Zongo 30.00 70.00 (Percentage) Action: This indicator has been Revised Komanda-Bunia-Goli 100.00 95.00 (Percentage) Action: This indicator has been Revised Kisangani-Dulia-Bondo 30.00 85.00 (Percentage) The World Bank DEMOCRATIC REPUBLIC OF CONGO - High Priority Reopening and Maintenance Project (P101745) RESULT_FRAME_TBL_IO Indicator Name DLI Baseline Intermediate Targets End Target 1 2 3 4 5 6 Action: This indicator has been Revised Kasomeno-Uvira 20.00 65.00 (Percentage) Action: This indicator has been Revised Kisangani-Beni 30.00 85.00 (Percentage) Action: This indicator has been Revised Beni-Kasindi 100.00 95.00 (Percentage) Action: This indicator has been Revised Bukavu-Goma 100.00 95.00 (Percentage) Action: This indicator has been Revised Percentage of illegal timbers in the monthly volume of handicraft 0.00 0.00 timber checked at selected control points along: (Percentage) Action: This indicator has been Revised The World Bank DEMOCRATIC REPUBLIC OF CONGO - High Priority Reopening and Maintenance Project (P101745) RESULT_FRAME_TBL_IO Indicator Name DLI Baseline Intermediate Targets End Target 1 2 3 4 5 6 Kisangani-Bunduki 100.00 70.00 (Percentage) Action: This indicator has been Revised Kisangani-Beni 100.00 85.00 (Percentage) Action: This indicator has been Revised Kalemie-Uvira 100.00 80.00 (Percentage) Action: This indicator has been Revised Akula-Gemena-Zongo 100.00 85.00 (Percentage) Action: This indicator has been Revised Komanda-Bunia-Goli 100.00 95.00 (Percentage) Action: This indicator has been Revised Benin-Kasindi 100.00 95.00 (Percentage) Action: This indicator has been Revised Bukavu-Goma 100.00 95.00 (Percentage) The World Bank DEMOCRATIC REPUBLIC OF CONGO - High Priority Reopening and Maintenance Project (P101745) RESULT_FRAME_TBL_IO Indicator Name DLI Baseline Intermediate Targets End Target 1 2 3 4 5 6 Action: This indicator has been Revised Institutional Building (Action: This Component has been Revised) Sound road transport strategy and road No investment plan completed (Yes/No) Action: This indicator has been Revised Action plan to develop the road construction 0.00 100.00 industry implemented (Percentage) Action: This indicator has been Revised IO Table SPACE The World Bank DEMOCRATIC REPUBLIC OF CONGO - High Priority Reopening and Maintenance Project (P101745)