$ Report No: RES00840 RESTRUCTURING PAPER ON A PROPOSED PROJECT RESTRUCTURING OF Madagascar Road Sector Sustainability Project APPROVED ON 29-Jun-2021 TO Republic of Madagascar Transport Eastern And Southern Africa Regional Vice President: Victoria Kwakwa Regional Director: Wendy E. Hughes Country Director: Zviripayi Idah Pswarayi Riddihough Practice Manager: Karla Gonzalez Carvajal Task Team Leader(s): Vincent Vesin, Alphonse Soh The World Bank Madagascar Road Sector Sustainability Project (P176811) ABBREVIATIONS AND ACRONYMS RN : Route Nationale (national road) The World Bank Madagascar Road Sector Sustainability Project (P176811) @#&OPS~Doctype~OPS^dynamics@restrhybridbasicdata#doctemplate BASIC DATA Product Information Operation ID Operation Name P176811 Madagascar Road Sector Sustainability Project Product/Financing Instrument Geographical Identifier Investment Project Financing (IPF) Madagascar Approval Date Current Closing Date 29-Jun-2021 30-Sep-2027 Environmental and Social Risk Classification (ESRC) Substantial Organizations Borrower Responsible Agency Republic of Madagascar Ministry of Public Works, Road Agency @#&OPS~Doctype~OPS^dynamics@restrhybridoperationstatus#doctemplate OPERATION STATUS Project Development Objective (DO) Current Development Objective improve the longevity safety and climate resiliency of selected paved primary roads, and support emergency recovery of selected main infrastructure in Madagascar. Disbursement Summary (in USD million) Source of Funds Net Commitment Disbursed Undisbursed % Disbursed IBRD -- -- -- 0 IDA 285.08 132.27 153.20 46.33 i The World Bank Madagascar Road Sector Sustainability Project (P176811) Grants -- -- -- 0 Policy Waivers Does this restructuring trigger the need for any policy waiver(s)? No @#&OPS~Doctype~OPS^dynamics@restrhybridmpa#doctemplate @#&OPS~Doctype~OPS^dynamics@restrhybridmpa#doctemplate ii The World Bank Madagascar Road Sector Sustainability Project (P176811) TABLE OF CONTENTS I. PROJECT STATUS AND RATIONALE FOR RESTRUCTURING ........................................................................................1 II. DESCRIPTION OF PROPOSED CHANGES ....................................................................................................................1 III. PROPOSED CHANGES ................................................................................................................................................3 IV. DETAILED CHANGE(S) ...............................................................................................................................................4 The World Bank Madagascar Road Sector Sustainability Project (P176811) I. PROJECT STATUS AND RATIONALE FOR RESTRUCTURING A. Project status 1. The original project was approved in June 2021 for an amount of US$200 million (IDA credit 69520). An additional financing of US$100 million (IDA credit 72140) was then approved in September 2023. This additional financing replenished a financing gap in the project. The gap was caused by the activation of the Contingent Emergency Response Component (CERC) in June 2022 at the request of the Government to mitigate the impacts of four cyclones that hit Madagascar at the beginning of 2022. The project will close in September 2027. The current Project Development Objective (approved as part of the additional financing package) is to improve the longevity, safety, and climate resiliency of selected paved primary roads in Madagascar, and to support emergency recovery of selected main infrastructure in Madagascar. The project has three components: (1) Improving road condition and resilience (US$180 million), (2) Technical assistance and support to roads and transport sector reforms (US$20 million), and (3) Activated CERC (US$100 million). The project is implemented by the Ministry of Public Works through a dedicated Project Implementation Unit. 2. In the most recent ISR archived on March 14th, 2025, the progress towards the project development objective was rated satisfactory and the overall implementation progress was rated moderately satisfactory. The current disbursement rate reaches 46%. Under Component 1, contracts have been signed and road works are about to start on three national roads (RN2, RN7, and RN4). Procurement is still in progress (evaluation of bids) for road works on RN5 and for a pilot of output and performance based road contracts. Under Component 2, various technical assistances and studies are carried out. Component 3 was completed in November 2024: several sections of the road, railway, and electricity distribution networks have been restored through this CERC. B. Rationale for restructuring 3. The sole purpose of this level-2 restructuring is to update, improve, and delete some indicators in the results framework, following the conclusions of the mid-term review completed in October 2024. The need for this restructuring was recorded in the aide-memoire issued after the review. All other characteristics of the project remain unchanged. II. DESCRIPTION OF PROPOSED CHANGES 1. The proposed changes to the results framework and their reasons are described in the table below. Ten indicators out of twenty are proposed for change. The complete results framework after change is provided at the end of the present document in the section IV. Detailed Change(s). 2. Sections III and IV also show a change in private capital mobilization, in terms of maximizing finance for development and private capital enabling (MFD/PCE). But there is no actual change in that regard. The reason for this pseudo change is that, when the project was approved in 2021, the portal did not require any information about private capital mobilization. The portal now needs to be updated by answering two questions about MFD and PCE. Page 1 The World Bank Madagascar Road Sector Sustainability Project (P176811) Indicator Proposed changes Reasons for changes PDO Indicators PDO1. Additional national The end target is revised from 20% to The PAD initially planned to carry out paved roads in good or 12.5%. This is the percentage of paved maintenance work on 1,200 km of paved excellent condition national roads that have been restored to national roads, at an average unit cost of (percentage) good or excellent condition or preserved $150,000/km. Technical design studies in this condition thanks to works financed carried out later showed that the state of by the project. deterioration necessitated works that were more expensive than anticipated, thus reducing the linear length to 475 km for periodic maintenance (traditional contract) and 275 km for routine maintenance preceded by upgrading (output and performance based contract): this represents a total linear length of 750 km, or 12.5% of the country's 6,000 km of paved national roads. This percentage remains significant. Most of the project road sections belong to the core network (RN2, RN7, RN4). PDO2. Main infrastructure No change restored to good condition following national emergency (number) PDO3. National paved The final target is revised from 20% to Same reason as for PDO1 above. roads with safe and more 12.5%. This is the percentage of paved climate resilient features national roads with improved road safety (percentage) features and maintained in accordance with new climate-resilient road standards. PDO4. People with The indicator is renamed “people that The revised indicator is a core mandatory enhanced access to benefit from improved access to indicator of the new World Bank transportation services sustainable transport infrastructure and scorecard. (number) services”. It now measures the project’s direct users and inferred beneficiaries as per the new World Bank’s scorecard methodology. The end target is thus revised from 2,488,000 to 3,030,000. Intermediate Results Indicators by Components Component 1: Improving road condition and resilience Maintained, climate The end target is revised from 1,200 km Same reason as for PDO1 above. resilient, and safer roads to 750 km. (kilometers) Road Safety Audits on The indicator is renamed “Road safety Road safety audits were carried out on the 1,200 km (Yes/No) audits on 950 km (Yes/No)” entire road length studied in detailed Page 2 The World Bank Madagascar Road Sector Sustainability Project (P176811) design for periodic maintenance works. This was limited to 950 km, which was already more than the original project could finance. Component 2: Technical assistance and support to roads and transport sector reforms Road Fund financing The indicator is renamed “Road It is about financing road maintenance strategy adopted & maintenance financing strategy adopted rather than the Road Fund itself, which is implemented (Yes/No) and implemented (Yes/No). just a fund. Transfer of full This indicator is deleted. There is no indication that this transfer is responsibility of the still desired by the Ministry of Public primary road network to Works. Road Agency (Yes/No) Number of GBV and This indicator is renamed by replacing the The term “campaign” was vague and the HIV/AIDS awareness- term “campaigns” with “sessions”. The number of sessions forming one campaign raising campaigns carried end target is revised from 20 to 50. was unknown. out in the project area (number) Component 3: Activated CERC km of cyclone damaged The end target is revised from 700 km to Costs of repairing the electricity electricity distribution 423 km. distribution network had been lines restored (kilometers) underestimated during CERC preparation. The revised target remains significant as it is estimated this activity benefits 56,000 subscribers to the power network, which represents around 280,000 direct beneficiaries, assuming that the average household size is five. Number of cyclone The end target is revised from 32,000 to Costs of repairing the electricity damaged electricity poles 12,752. distribution network had been replaced (number) underestimated during CERC preparation. The revised target remains significant as it is estimated this activity benefits 56,000 subscribers to the power network, which represents around 280,000 direct beneficiaries, assuming that the average household size is five. @#&OPS~Doctype~OPS^dynamics@restrhybridsummarychanges#doctemplate Summary changes III. PROPOSED CHANGES Operation Information Proposed Changes Operation Information Proposed Changes MFD/PCE Yes Loan Closing Date Extension No Page 3 The World Bank Madagascar Road Sector Sustainability Project (P176811) Results Yes Loan Cancellations No Development Objective No Reallocations No Summary Description No Financial Management No (Operation Abstract) Legal Operational Policies No Procurement No Risks No Institutional Arrangement No Legal Covenants No Implementation Schedule No Conditions No Implementation Modalities No Disbursements Estimates No Disbursements Arrangements No DDO No Additional Regional No Institutions Clients No Appraisal Summary No Components No @#&OPS~Doctype~OPS^dynamics@restrhybriddetailedchanges-disclose#doctemplate IV. DETAILED CHANGE(S) COSTS & FINANCING Private Capital Facilitation Is this an MFD-Enabling Project (MFD-EP)? NoUnder revision Is this project Private Capital Enabling (PCE)? NoUnder revision LOANS ENVIRONMENTAL & SOCIAL Environmental & Social Assessment Page 4 The World Bank Madagascar Road Sector Sustainability Project (P176811) According to the E/S Specialist are there changes proposed to the operation’s design that No would impact the Bank’s E&S assessment?” Page 5 The World Bank Madagascar Road Sector Sustainability Project (P176811) RESULTS COUNTRY: Madagascar Madagascar Road Sector Sustainability Project @#&OPS~Doctype~OPS^dynamics@restrannexpolicyandresult#doctemplate PDO Indicators by PDO Outcomes Improved longevity of national paved roads Indicator Name Baseline Actual (Previous) Actual (Current) Closing Period Result Month/Year Result Date Result Date Result Month/Year Revise Additional national paved roads 0.00 Sep/2021 0.00 15-Jan-2025 0.00 15-Jan-2025 12.50 Sep/2027 in good or excellent condition (Percentage) Support emergency recovery of selected main infrastructure in Madagascar Indicator Name Baseline Actual (Previous) Actual (Current) Closing Period Result Month/Year Result Date Result Date Result Month/Year 0.00 Jul/2022 13 01-Mar-2025 13 01-Mar-2025 8.00 Sep/2027 Main infrastructure restored to good condition following national Comments on achieving targets These 13 infrastructures comprise ten national roads (RN2, RN4, RN6, RN7, RN12, RN24, RN3A, RN23A, RN5 and emergency (Number) RN34), two railroad lines (TCE and MLA), and the electricity distribution network. Sections of these infrastructures have been repaired under the CERC component. Improved safety and climate resiliency of national paved roads Indicator Name Baseline Actual (Previous) Actual (Current) Closing Period Result Month/Year Result Date Result Date Result Month/Year Revise National paved roads with safe 0.00 Sep/2021 0.00 01-Mar-2025 0.00 01-Mar-2025 12.50 Sep/2027 and more climate-resilient features (Percentage) Page 6 The World Bank Madagascar Road Sector Sustainability Project (P176811) Beneficiaries Indicator Name Baseline Actual (Previous) Actual (Current) Closing Period Result Month/Year Result Date Result Date Result Month/Year Revise People benefiting from 0.00 Dec/2021 778,000 01-Mar-2025 778,000 01-Mar-2025 3,030,000 Dec/2027 improved access to sustainable transport infrastructure and services (Number) Intermediate Results Indicators by Components Improving Road Condition and Resilience Indicator Name Baseline Actual (Previous) Actual (Current) Closing Period Result Month/Year Result Date Result Date Result Month/Year Revise Maintained, climate resilient, 0.00 Sep/2021 0.00 01-Mar-2025 0.00 01-Mar-2025 750 Sep/2027 and safer roads (Kilometers) Revise Road Safety Audits on 950 km No Sep/2021 Yes 01-Mar-2025 Yes 01-Mar-2025 Yes Sep/2027 (Yes/No) Technical Assistance and Support to Roads and Transport Sector Reforms Indicator Name Baseline Actual (Previous) Actual (Current) Closing Period Result Month/Year Result Date Result Date Result Month/Year No Sep/2021 No 15-Jan-2025 No 15-Jan-2025 Yes Sep/2027 Lead road safety agency established (Yes/No) Comments on achieving targets The indicator tracks whether or not a Lead Road Safety Agency has been established and is operational. Revise Road maintenance financing No Sep/2021 No 15-Jan-2025 No 15-Jan-2025 Yes Sep/2027 strategy adopted and implemented (Yes/No) No Sep/2021 No 15-Jan-2025 No 15-Jan-2025 Yes Sep/2027 National standard bidding documents for performance-based contracts Comments on achieving targets The indicator tracks whether National standard bidding documents for performance-based contracts have been developed. Page 7 The World Bank Madagascar Road Sector Sustainability Project (P176811) developed and implemented. (Yes/No) National standard bidding documents No Sep/2021 No 15-Jan-2025 No 15-Jan-2025 Yes Sep/2027 for road maintenance and Comments on achieving targets The indicator tracks whether National standard bidding documents for road maintenance and construction have construction updated with new been updated with new climate resilience standards. climate resilience standards (Yes/No) ReviseNumber of GBV and HIV/AIDS 0.00 Sep/2021 3.00 15-Jan-2025 3.00 15-Jan-2025 50 Sep/2027 awareness-raising sessions carried out in the project areas (Number) Percentage of grievances recorded 0.00 Sep/2021 100.00 15-Jan-2025 100.00 15-Jan-2025 100.00 Sep/2027 and processed as per the project's Comments on achieving targets The indicator tracks the number of grievances processed through the projects GRM. GRM (Percentage) Share of construction workers that 0.00 Sep/2021 100.00 15-Jan-2025 100.00 15-Jan-2025 100.00 Sep/2027 have signed the Code of Conduct Comments on achieving targets The indicator tracks the number of workers who have signed the Code of Conducts. (Percentage) No Sep/2021 No 15-Jan-2025 No 15-Jan-2025 Yes Sep/2027 Study assessing barriers for women in road construction sector. (Yes/No) Comments on achieving targets The indicator tracks whether a study assessing constraints for women in road construction sector, and campaigns to increase awareness and encourage women have been conducted. Percentage of women working in 0.00 Sep/2021 0.00 15-Jan-2025 0.00 15-Jan-2025 10.00 Sep/2027 road maintenance in the project. Comments on achieving targets The percentage of women working on road maintenance projects financed through the project. (Percentage) Contingent Emergency Response Indicator Name Baseline Actual (Previous) Actual (Current) Closing Period Result Month/Year Result Date Result Date Result Month/Year km of cyclone damaged main roads 0.00 Sep/2022 203 15-Oct-2024 203 15-Jan-2025 210.00 Sep/2027 restored (Kilometers) number of cyclone damaged railway 0.00 Sep/2022 2.00 15-Oct-2024 2.00 15-Jan-2025 2.00 Sep/2027 bridges restored (Number) Revise km of cyclone damaged 0.00 Sep/2022 423 15-Jan-2025 423 15-Jan-2025 423 Sep/2027 electricity distribution lines restored (Kilometers) Page 8 The World Bank Madagascar Road Sector Sustainability Project (P176811) Revise Number of cyclone damaged 0.00 Sep/2022 12,752 15-Jan-2025 12,752 15-Jan-2025 12,752 Sep/2027 electricity poles replaced (Number) Page 9