integrated mass transit systems - world bank
TRANSCRIPT
Document o f The World Bank
FOR OFFICIAL USE ONLY
Report No: 49400-CO
PROJECT PAPER
ON A
PROPOSED SECOND ADDITIONAL L O A N
IN THE AMOUNT OF US$300 MILLION
TO
THE REPUBLIC OF COLOMBIA
FOR THE
INTEGRATED MASS TRANSIT SYSTEMS PROJECT
July 9,2009
Sustainable Development Department Colombia and Mexico Country Management Unit Latin America and the Caribbean Region
This document has a restricted distribution and may be used by recipients only in the performance o f their official duties. I ts contents may not otherwise be disclosed without World Bank authorization.
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CURRENCY EQUIVALENTS
(Exchange Rate Effective July 9,2009) Currency Unit = US$ Dollar . CO$l.OO = O.O0047US$
U S $ l = 2117.7OCO$
BRTS
CAF
CPS CBA CPAR
CONFIS CONPES
CVP DNP
EMP F M GHG IADB
IBRD
ICB
IDU IGAC
IMTS
IRR ISR
MHCP
MOT
FISCALYEAR January 1 - December 31
ABBREVIATIONS AND ACRONYMS
Bus Rapid Transit System (Sistema de Buses de Transit0 Rapido) The Andean Development Corporation (Corporacidn Andina de Fomento) Country Partnership Strategy (Alianza Estratkgica con e l Pais) Cost-benefit Analysis (Andisis Costo-BeneJicio) Country Assessment Procurement Review (Revisidn del Sistema de Adquisiciones del Pais) National Fiscal Council (Consejo Superior de Politica Fiscal) National Economic and Social Council (Consejo Nacional de Politica Econdmica y Social) Social Housing Entity (Caja de Vivienda Popular) National Planning Department (Departamento Nacional de Planeacidn) Environmental Management Plan (Plan de Manejo Ambiental) Financial Management (Manejo Financiero) Greenhouse gas (Gases de Efcto Invernadero) Inter-American Development Bank (Banco Interamericano de Desarrollo) International Bank for Reconstruction and Development (Banco Internacional de Reconstruccidn y Fomento) International Competitive Bidding (Licitacidn Pziblica Internacional) Urban Development Institute (Instituto de Desarrollo Urbano) Agustin Codazzi Geographic Institute (Instituto Geogrd$co Agustin Codazzi) Integrated Mass Transit System (Sistema Integrado de Transporte Masivo) Internal Rates o f Return (Tasa Interna de Retorno) Implementation Status Report (Reporte del Estado de Implementacidn y Resultados) Ministry o f Finance & Public Credit (Ministerio de Hacienda y Crkdito Pziblico) Ministry of Transport (Ministerio de Transporte)
FOR OFFICIAL USE ONLY
NPV NQS
NUTP
PAD
PCU
PDO
QAT
RAP
RPF
Net Present Value (Valor Presente Neto) North Quito South Line o f the Bogota Transmilenio S.A (Corredor Norte Quito Sur de Bogotd Transmilenio S.A) National Urban Transport Program (Programa Nacional de Transporte, Urbano) Project Appraisal Document (Documento de Evaluacidn de Proyecto) Project Coordination Unit (Grupo Interno de Trabajo para apoyar 10s Proyectos de 10s Sistemas Integrados de Transporte Masivo del Pais Cofinanciados por la Nacidn) Project Development Objective (Objetivo de Desarrollo de Proyecto) Quality Assurance Team (Equip0 de Aseguramiento de Calidad) Resettlement Action Plan (Plan de Adquisicidn Predial y Reasentamiento) Resettlement Policy Framework (Marco de Politica de Reasentamiento)
This document has a restricted distribution and may be used by recipients only in the performance o f their official duties. I t s contents may not be otherwise disclosed without World Bank authorization.
Vice President: Pamela Cox Country ManagedDirector Axel van Trotsenburg
Sector Director Laura Tuck Sector Manager Aurelio Menendez
Sector Leader David N. Sislen Task Team Leader Mauricio Cuellar
Table of Contents
Colombia Integrated Mass Transit Systems (IMTS) Project Additional Loan
I . Introduction ........................................................................................................................... 1
I1 . Background and Rationale for an Additional Loan in-the Amount o f US$300 million ....... 1 ..................................................................................... 1
The National Urban Transport Program (NUTP) .............................................................. 2 The Original Loan ............................................................................................................. 3 Project Objectives .............................................................................................................. 6 Components o f the Project ................................................................................................ 6 Key Performance Indicators .............................................................................................. 7 Project Performance .......................................................................................................... 8 Rationale and Reasons for Requesting an Additional Loan .............................................. 9
Country Context * '
I11 . Proposed Changes ............................................................................................................... 9
IV . Consistency with Country Partnership Strategy (CPS) ..................................................... 11
V . Appraisal o f Scaled-up Project Activities ......................................................................... 11 Economic and Financial Analysis., ............................................................ 11 Technical .......................................................................................... 12 Institutional ........................................................................................ 12 Procurement ...................................................................................... 13 Financial Management and Disburpement Arrangements ................................. 14 Social ....................... i. ..................................................................... 16 Environmental ................................................................................... -17
V I . Expected Outcomes ........................................................................................................... 20
VI1 . Benefits and Risks ................................................................................. -22
VI11 . Financial Terms and Conditions for the Additional Loan ............................................. 24 Legal Covenats ................................................................................. -25
Annex 1 : Detailed Description o f Changes to the Project's Physical Scope .......... 30 Annex 2: Implementation Arrangement Framework ...................................... 31 Annex 3: Integrated Mass Transit System (IMTS) Land Acquisition Framework . . -34 Annex 4: Financial Management .......................................................... 40 Annex 5 : Procurement ...................................................................... 42
Annex 7 : Status o f Resettlement Planning and Operation .............................. 53 Annex 8: Status o f Environmental Management Plans ................................... 57 Annex 9: Expected Outcomes for( Participating Cities .................................... 59
Annex 6: Cost-Benefit Analysis o f the Integrated Mass Transit Systems Project ... 45
Project Paper Data Sheet
Sector DirectodManager: Laura Tuck /
nd Additional Loan
Borro wer : Republic o f Colombia Ministerio de Hacienda y Credit0 Publico Carrera 7 No. 6-45 Bogota D.C. Colombia Tel: (57 1) 2971310 Responsible Agency: Ministerio de Transporte Avenida El Dorado - C A N Bogota D.C. Colombia
Revised estimated disbursements (Bank FY/US$m)
Revised project development objectives/outcomes
This Second Additional Loan focuses on a project scale up. The project’s financing arrangements have changed to include land and resettlement compensation as eligible expenditures. There i s no change in the parent project PDO.
The PDOs o f the Integrated Mass Transit Systems Project are to: (i) develop high quality and sustainable BRTS in Participating Cities to improve mobility along strategic mass transit corridors; (ii) improve accessibility to public transportation for the poor; and (iii) build greater institutional capacity in the Borrower’s public transportation institutions in order to formulate integrated urban transport policies, and to improve urban transport planning and traffic management.
Does the scaled-up or restructured project trigger any new safeguard policies? No. If so, click here to indicate which one(s) [selection box like the one in the new ISR]
For Additional Financing [x] Loan [ ] Credit [ ] Grant For Loans/Credits/Grants:
Total Bank financing (US$m.): 300.0 Proposed terms: Fixed Spread Loans (FSL) Grace Period (years): 1 1.5 years; Years to Maturity: 23.5 years Front End Fee (FEF) on Bank Loan: 0.25% to be paid from own resources Commitment charges are not applicable. Type o f Repayment Schedule: Non-level repayments on February 15 and August 15 with all Conversion options, and the following repayment profile: from February 15,2021 through August 15, 2023 (5 percent), from February 15, 2025 through August 15,2026 (5 percent), and from February 15,2028 through August 15,2032 (5 percent).
Financing Plan (US$m.) Source Local Foreign Total
Borrower 129.0 0.0 129.0 IBFWIDA 300.0 0.0 300.0 Others 0.0 0.0 0.0 Total 429.0 0.0 429.0
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I. Introduction
1. This Project Paper seeks the approval o f the Executive Directors to provide a Second Additional Loan in the amount o f US$300 mi l l ion to the Republic o f Colombia to be used for the Integrated Mass Transit Systems (IMTS) Project, Loan No. CO-723 1.
2. The proposed Second Additional Loan o f US$300 mi l l ion requested by the Government o f Colombia (Government) would help finance the costs associated with the scale up o f project activities related to the physical expansion o f the original scope o f the National Urban Transport Program (NUTP), by increasing some o f the original interventions to enhance their urban and development impact. The proposed loan would also finance land and resettlement compensation as eligible expenditures o f the project.
11. Background and Rationale for an Additional Loan in the Amount of US$300 million
Country Context
3. L ike most Lat in American countries in the last decades, Colombia has experienced high population increases in urban centers due to several economic and social factors. Colombia has also experienced several decades o f armed conflict that has displaced approximately 2.5 mi l l ion people from rural to urban areas, o f which 50 percent have relocated to the four largest cities. As ,a result, 75 percent o f the population lives in urban areas; there are seven metropolitan areas with an estimated population o f more than 600,000, and 22 cities with a population o f more than 300,000.1
4. Against this backdrop, public transport has been a long standing concern for planners and decision makers in Colombia. At the national and local levels, urban transport is regarded as a catalyst for higher productivity and urban competitiveness. Furthermore, across urban transport modes, public transport plays a pivotal role in city efficiency. Although the country i s undergoing a natural process o f motorization, the majority o f the population - particularly those belonging to the middle and lower income groups - uses public transportation and relies on transit service provision for carrying out their daily activities.
5. Notwithstanding, a large proportion o f this ‘transport constituency’ does not have access to reliable and affordable transportation, and as a result remains excluded from employment opportunities, health facilities, and interaction with the rest o f the community. A transport system which i s able to provide efficient, low-cost mobil i ty and accessibility for al l inhabitants in the city i s a powerful tool to promote growth, alleviate poverty, and achieve social cohesion, while at the same time improving environmental conditions and triggering public space improvements. Improving the quality o f l i f e in urban areas i s expected to contribute to building a more equitable society.
Census 2005 I
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The National Urban Transport Program (NUTP)
6. The NUTP i s built upon a premise o f collaboration between the Government and Participating Cities to improve the quality o f l i f e and increase urban productivity in said cities. I t s design aims at: (i) improving the efficiency and safety o f public urban transport services; (ii) providing reliable transport accessibility for the poor; (iii) enhancing private sector involvement in service provision; (iv) reducing air pollution and greenhouse gas (GHG) emissions; (v) fostering comprehensive sustainable urban development processes; and (vi) promoting inter-municipal coordination within the metropolitan areas, interagency coordination within the municipalities, and knowledge sharing between the central and local governments.
7. The NUTP i s built on Law No. 86 passed in December, 1989.2 Two National Economic and Social Policy Council documents (CONPES) approved in 2002 and 2003 have established the policy and institutional framework for the NUTP. The municipalities that comprise the ten Participating Cities3 in the NUTP (Barranquilla, Bello, Bogota, Bucaramanga, Cali, Cartagena, Cucuta, Medellin-Valle de Aburra, Pereira and Soacha) have signed Subsidiary Agreements (Convenios de Cofinanciacidn) with the Government laying out financial and technical commitments to carry out the program. Under these Agreements, the Government contributes up to 70 percent o f the total cost o f the program nation-wide, with financial contributions in each city depending on specific project characteristics and their financial/fiscal situation.
8. Under the NUTP, Government funding i s committed through a flow o f earmarked yearly fiscal transfers (“vigencias futuras ”), previously approved by the National Fiscal Council (CONFIS) that allocate future Government budgetary allocations to pay for the Government’s share o f project ‘ costs in each participating city. Through this model, the Government: (i) creates an incentive for the Participating Cities to implement the program by securing future budget support and eliminates the risk o f a potential change in Government or municipal policy; (ii) transfers program implementation to the Participating Cities, promoting local ownership and knowledge creation; and (iii) provides an incentive for Participating Cities to focus on sound and longer-term policy and related investments. In addition, the Government disbursements are made against executed civil works with accounting reconciliations every three months to ensure appropriate and transparent l i n k s between disbursements and completed works.
9. The financial contributions from each Participating City depend on specific project characteristics and on their fiscal situation. The main source o f funding for the Participating
The “IMTS Legislation” refers to Law No.86 dated December 29, 1989 as amended by Law No.310 dated August 6,1996 and published in the Government’s Officla Gazette No.42853 dated August 12,1996, providing for the joint financing (between MHCP and the Participating Cities) o f infrastructure works required under the NUTP, through the provisions o f Transfers.
As the NUTP progressed, and new participating cities were incorporated, the program also began to target Metropolitan Areas (Areas Metropolitanas) comprising more than one municipality. As such, Soledad was also included to the project in Barranquillst, Floridablanca, Piedecuesta and Giron were incorporated to the NUTP along with Bucaramanga, in Medellin-Valle de Aburrfi, Itagui and Envigado joined the NUTP, and lastly, in Pereira, Dosquebradas was also included in the project.
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Cities i s the gasoline surtax, mostly paid by automobile users. This surtax provides approximately 34 percent o f .total NUTP cost and, most importantly, provides the municipalities with a source o f funding that can be matched against Government contributions for the implementation o f the projects.
Amount Approval
Original Loan (Loan 723 1 -CO) 250.0 June, 2004 First Additional Loan (Loan 7457-CO) 207.0 June, 2007 Proposed Second Additional Loan 300.0 August, 2009
(US$ million) Date
The Original Loan
Closing Date
March 3 1,2009 March 3 1,20 10 March 3 1,2012
10. The ongoing IMTS project amounts to US$457 million, o f which US$250 million correspond to the original IMTS operation (Loan 723 1 -CO) and US$207 million correspond to the First Additional Loan (Loan 7457-CO). O f this total, US$448.4 million (98 percent) has been disbursed to date, and,the remaining balance i s expected to be fully disbursed by March 31, 2010. Loan 7231420 was signed in September 2004 and became effective in January o f 2005. Additional Loan 7457-CO was signed in December 2007 and became effective January 2008. These loans finance a time slice o f the Government’s transfers to cities participating in the NUTP to enable them to build and implement Bus Rapid Transit Systems (BRTS). As noted in the original Project Appraisal Document (PAD), the (first) Bank loan supported the Government’s transfers agreed upon under the respective Subsidiary Agreements signed with Participating Cities and was intended to cover the Government’s commitments through 2008. The First Additional Loan continued to cover the Government’s commitments, which had increased during NUTP implementation as a result o f a scale-up o f project activities and a financing gap. Since the implementation o f the NUTP was meant to continue well beyond 2009, at the time o f the original loan approval (and the first request for an Additional Loan), the Bank anticipated that the Government would likely seek further Bank financing for the later years o f the program (2009-2016).4
1 1. The World Bank currently finances a time-slice o f the NUTP that covers 100 percent o f Government transfers - channeled through the Ministry o f Finance and Public Credit (MHPC) - to the Participating Cities under the corresponding Subsidiary Agreements. The original loan finances the eligible’ costs o f civil works in six Participating Cities (Barranquilla, Bogota, Bucaramanga, Cartagena, Medellin-Valle de Aburra, and Pereira) and the full cost o f the technical’ assistance component for the Government and the Participating Cities under NUTP. For the case o f Bogota, a waiver was requested and granted by OPRC on January 28, 2004 (OPRC Case Report No. 517-CO-04) o f the bidding processes carried out by the “Instituto de Desarrollo Urbano” IDU, to enable Bank financing o f the Bogota-NQS
See original PAD pg. 3: “...since the,implementation of the NUTP will continue beyond 2008, it i s likely that GOC will request the Bank to provide a follow-on operation to continue supporting the program”. Additional Financing Project Paper (PP) pg. 8: “It i s proposed that the follow-on financing for the NUTP would be structured as a series o f lending operations. The first one would be the US$207 million Additional Financing to cover the NUTP transfers through the end of 2007.”
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Transmilenio S.A corridor under the original IMTS operation (LN 723 1420). The requested waiver was for five segments/contracts, as follows: (i) NQS North Segment 1, (ii) NQS North Segment 2, (iii) NQS South Segment 1, (iv) NQS South Segment 2, and (v) NQS South Terminal. The bidding process for such contracts finalized in 2003, construction began in 2004, and all civil works were completed by 2006. As such, the original Loan and the First Additional Loan , as well as the proposed Second Additional Loan will be financing the Government’s transfers that in turn wi l l be used for the payment o f contractual obligations incurred by the civil works’ contractor o f the Bogota-NQS corridor.
12. After Loan 7231-CO was signed for US$250 million in 2004, the success o f the NUTP stimulated greater demand by the original cities and by new cities wishing to participate in the program- as the initial projects incorporated in the loan were Bogota- North Quito South Busway Corridor (NQS), Cartagena and Pereira’ - and new works-corridors in the cities already in the program. In fact, in 2005 the Government expanded the NUTP by signing additional Subsidiary Agreements entailing national commitments amounting to US$225.4 million for the cities o f Barranquilla, Bucaramanga and Medellin-Valle Aburra. As a result, in 2007, the First Additional Loan operation (Loan 7457-CO) was signed to finance another time slice o f the Government’s budgetary commitments for the new Participating Cities to the end o f 2007 (US$107 million) and to cover a financing gap o f US$lOO million for Bogota’s NQS corridor. This First Additional Loan originally had a closing date o f March 3 1 , 2009 but was recently extended to March 3 1 , 20 10.
13. The Government has requested this second Additional Loan to finance a third time slice o f the Government’s NUTP commitments from 2009-2016 (see Table 1). The Government’s transfers have increased as a result o f a scale-up in the program’s physical scope, including expansion o f trunk corridors and feeder routes to attend to increased demand, renewal o f public service networks, and ungrading o f public space, among others (see Annex 1). Total Government commitments from 2009 until 20 16 (NUTP’s completion) amount to approximately US$1.9 billion for nine o f the ten Participating Cities, o f which UUS$1.3 billion i s eligible IBRD financing.6 The proposed Additional Loan wi l l finance a US$300 million time-slice o f those commitments until 2012 to sup ort projects in the following cities - Barranquilla, Bucaramanga, Cartagena, and Medellin. ‘The proposed Second Additional Loan will also continue to finance the Government’s transfers to the Bogota-NQS corridor, as explained above. Bogota’s Suba corridor i s being financed by the Andean Development Bank (CAF) and the financing for Bogota’s Phase I11 i s yet to be defined by the Government. Likewise, Cali will continue to be financed by the Inter-American Development Bank (IADB), and Cucuta has partnered with the CAF to implement the project. A subsequent follow-on operation would likely be processed to continue Bank support to the NUTP until 2016.
’ Cali was also in the first group of participating cities in the NUTP, but Government’s commitments were financed by the IADB. The CAF also initially participated in the project by financing the Suba corridor o f Bogoth’s BRTS, and will now finance the recently NUTP incorporated city of Cucuta. Government commitments to Pereira went until 2007, since Pereira’s BRTS started operation in August, 2006. ’ The Government also requested the financing for Bello, but such commitments will not be taken into
consideration in this Additional Financing since the Government commitments are only due until 20 13.
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14. The Government has also requested the Bank to finance, under this Second Additional Loan, the cost o f land required to construct the new BRTS infrastructure and related public space, and the compensation stemming from land resettlement processes. Approximately 2,557 social units are expected to be relocated in 2009 and 2010, under the project’s scale-up to be financed with the proposed Second Additional Loan.* Making land acquisition an eligible expenditure for Bank funds wi l l provide an additional degree o f flexibility on the cost allocation between the national and the municipal contributions. I t i s critical to note that the eligibility o f land as an expenditure does not affect the project’s safeguards approach; under the existing operation, all land acquisition undertaken with non-Bank funds uses the same safeguards approach to managing OP 4.12 issues. The funding modality proposed under this operation will only affect the source o f funds used to finance such expenses. In accordance with Bank Policy, the Bank’s Land Committee reviewed the proposed arrangements for the Bank to finance land acquisition and authorized the Bank team to move forward. Land acquisition and compensations are expected to amount up to US$30 million in this Second Additional Loan, and wi l l be conducted as established in the BP 6.00, Annex A-Special Authorization Arrangements for Selected Types o f Expenditure, “Guidance Note on World Bank Financing o f Land Acquisition For Protected Areas” dated August 11, 2005 and related documentation.
15. To date, the Bank has not financed land acquisition for the IMTS because these transactions have been funded with the municipal contributions to the project. Between 2004 and 2008, the NUTP spent more than US$88 million in land acquisition and compensation. Local Implementing Entities have acquired a significant experience in land acquisition processes and to date, there have been no outstanding issues or complaints surrounding land acquisition processes. Annex 3 summarizes the land acquisition framework and property valuation techniques that are utilized in the NUTP.
Table 2. Government Budget Commitments for the NUTP Government of Colombia Budgetary Commitments for the National Urban Transport Program (NUTP)
(2009.2016, US$ Mllllon) Poulble C W n Expsmd , 4
to be Eliglbir for IBRD zoog 2010 201 1 2012 2013 mi4 201 6 2016 TOTAL Rnsnclng Barranquilla Bello
Bucaramanga Cali Cartagena Cucuta Medellin-Valle de Aburrd Pereira
BogotB‘
27 . 6 31 41
142 135 143 130 22 2 23 10 30 ’ 39 43 91 21 11 43
7 17 12 2 9 11
11 7
15 17 133 138 142
43 43 32 36 36
105 18
37 999 89
204 76
111 42 160
Soacha 2 12 38 2 13 67
TOTAL mthoul Call and Cucuta” 226 168 287 194 204 197 178 79 1,517
LESS BogotB’s Suba and Phase Ill*** 35 47 27 41 149
LESS Soacha”” 2 12 38 2 13 67
* This resettlement cases correspond to the social units that have to be relocated under the RAPs Type B (those that are under implementation) and RAPs Type C (those that are under preparation). Please refer to Annex 7, page 50 for a list o f RAP typology.
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Source: Ministry o f Finance and Public Credit (MHCP). Calculations based on COP/US$ exchange rate of COP 2300. Notes: * Includes NQS, Suba and Phase 111. **Cali i s being financed by the IADB; Cucuta will be financed by CAF. * * * Suba i s being financed by CAF; financing for Bogota’s Transmilenio Phase Ill i s yet to be defined. ****Soacha could be included in a follow-up IBRD operation that covers Government commitments from 201 1-2016.
Project Objectives
16. The proposed expansion o f the IMTS wi l l not include any changes to the existing Project Development Objectives (PDOs) to: (i) develop high quality and sustainable BRTS in Participating Cities to improve mobility along strategic mass transit corridors; (ii) improve accessibility to public transportation for the poor ; and (iii) build greater institutional capacity in the Borrower’s public transportation institutions in order to formulate integrated urban transport policies, and to improve urban transport planning and traffic management.
Components o f the Project
17. The project components o f the original Loan are:
Component A - Implementing Capacity Building: This component provides technical assistance and policy advice to the Government and Participating Cities’ municipal governments, and i s aimed at:
1. Strengthening the Government’s capacity to formulate national urban transport programs and strategies, through, among other things: (a) the definition o f a national urban transport institutional map; (b) the formulation o f transport sector policy; (c) the definition o f operational, regulatory, institutional, environmental, social and road safety strategies within the urban transport and urban development context; and (d) the identification o f appropriate mass transit solutions to improve transport and to improve traffic management.
2. Improvement o f the institutional capacity o f transportation entities in Participating Cities to ensure adequate implementation o f BRTS, through, among others: (a) the provision o f equipment and training; (b) the setup o f an operational structure able to program, monitor and administer public transportation services; and (c) the implementation o f twinning arrangements between BRTS and Bogota Transmilenio S.A.
3. Strengthening o f the operational capacity o f Participating Cities with respect to the implementation o f urban development and transport strategies.
4. Provision o f support for overall proiect coordination, evaluation, supervision and implementation, including: (a) strengthening o f the capacity o f the Project Coordination Unit (PCU) to
comply with i ts responsibilities; (b) carrying out o f audits; (c) carrying out o f project studies, including, among others, performance reviews
and impact evaluations; and (d) design and implementation o f a program to monitor and evaluate the carrying
out o f the project.
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Component B - BRTS Development:
1.
2.
3.
4.
5.
Construction o f about 57 kilometers o f segregated transportation corridors in Participating Cities, including but not limited to: (a) construction o f segregated busways; (b) repaving o f mixed-traffic lanes adjacent to new busways; (c) construction and installation o f bus stations and terminals; and (d) paving o f feeder roads. Construction o f about 20 kilometers o f segregated corridors in the NQS Line in Bogota, including: (a) construction o f segregated busways; and (b) repaving o f mixed-traffic lanes adjacent to new busways. Definition o f a new regulatory framework for the implementation o f BRTS in Participating Cities. Resettlement o f affected persons in connection with the carrying out o f Parts B.l and B.2 o f the project. Design and implementation o f Environmental Management Plans (EMPs) for the carrying out o f Parts B. 1 and/or B.2 o f the project.
Key Performance Indicators
18. indicator framework specified in the PAD, which i s as follows:
Project performance i s being monitored against the existing intermediate output
Number o f k m s . constructed 0
0
0
Number o f construction contracts awarded according to procurement Number o f operation contracts awarded Number o f fare collection systems awarded
19. Furthermore, the Ministry o f Transport (MOT) i s currently developing the methodology to measure the project performance indicators as BRTS start operating in the different cities. The project performance indicators, as laid out in the original PAD, are as fo 11 0 ws :
Improved mobility and quality o f public transport services in strategic mass transit corridors as measured by: - Reduction in generalized door-to-door travel cost (fare, time) to users
- Percentage o f people rating the system as being better than the previous system
Improved accessibility to low-income populations as noted by: - Increased use by the poor (two poorest quintiles) o f public transport services
along the area o f influence o f the planned corridors, with respect to the baseline without the mass transit system, both in absolute (number o f passenger) and relative terms (as percentage o f total number o f passengers)
Enhanced institutional capacity for urban transport policy formulation and system development, measured by:
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- At the local level, system occupation per square meter below a given threshold while maintaining no subsidies
- At the national level, at least three BRTS schemes operating successfully in targeted Participating Cities'
Project Performance
20. Implementation o f the project, including compliance with i t s loan covenants, i s satisfactory. The outcomes and results recorded in the most recent supervision reports are consistent with the expectations set out in the PAD. In general, the Bank's supervision review ratings have been consistently satisfactory.
21. Fiduciary issues are being implemented according to agreed action plans. The last Bank review o f Financial Management aspects was moderately satisfactory since moderate shortcomings in financial management exist but do not prevent timely and reliable provision o f information required to manage and monitor the implementation o f the project. All audit reports have been submitted on time with satisfactory results and audit recommendations are being addressed by the MOT through improvement plans. Based on the follow up o f those improvement plans and the results o f FM supervision missions, Annex 4, includes a follow up o f the action plan agreed during the last FM supervision mission (November 2008). This action plan i s currently under implementation, as stated in Annex 4.
22. The original project triggered the following safeguard policies; OP 4.0 1 (Environmental Assessment), OP 4.12 (Involuntary Resettlement), OP 4.04 (Natural Habitats), and OP 4.1 1 (Physical Cultural Resources). Social and environmental teams were created in all Participating Cities and have developed and implemented resettlement and EMPs for all civil works, following the environmental and resettlement management frameworks established during project preparation. In fact, the IMTS project has been considered as a best practice in terms o f i t s safeguards' management, and the 2008 LCR Innovation Fair for achieving innovative development solutions and results and for promoting client engagement. The scale-up o f the NUTP wi l l trigger the same safeguard'' policies as the original project and wi l l maintain the same environmental category, which i s Category "B". For this Second Additional Loan, the Resettlement Policy Framework (RPF) wi l l be updated and re- disclosed.
23. In order to ensure that fiduciary and accountability risks continue to be well managed in the larger program, the Bank will continue to review the results o f semi-annual operational audits and carry out financial supervision missions and procurement reviews. The Financial Management and Procurement arrangements for the proposed project wi l l remain the same as those in place for the ongoing operation. Furthermore, to monitor project performance and implementation, the MOT wi l l submit Project Reports no later than March 3 1 and September
The incorporation of participating cities in 2005 changed the key performance indicators o f the project with respect to those established for the original LN 723 1 -CO Integrated Mass Transit Systems Project's PAD Annex 3: Results Framework and Monitoring. Hence, the expected performance indicator at the national level i s thus 6 BRTS implemented in the participating cities. lo Refer to paragraph 53.
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30 o f each project implementatfon year to track the progress o f activities completed during the respective six month period, and the project indicators outlined in Section V I o f this Project Paper.
Rationale and Reasons for Requesting an Additional Loan
24. Pursuant to OP/BP 13.20, the Bank may provide Additional Financing through additional loans in the context o f ongoing, well-performing projects to expand activities that scale up a project’s impact and development effectiveness.
25. Loan number 723 1 -CO was signed in September 2004 and became effective in January o f 2005. Additional Loan number 7457-CO was signed in December 2007 and became effective January 2008. This Additional Loan will fund a scale-up o f the program’s physical scope. The time-slice o f the Government’s commitments to the NUTP to be financed wi l l amount to US$300 million and will cover the Government’s budgetary commitments through 201 0. This Additional Loan will imply a change in the loan closing date to July 3 1 201 1.
26. An Additional Loan o f US$300 million i s the best available mechanism at the current time to rapidly and effectively meet the request o f the Government. This Additional Loan would: (i) maintain support for the NUTP under the same terms defined in the current loan; (ii) help the Government to maintain the momentum o f the NUTP implementation by providing timely financial support for the scale-up o f the program; and (iii) provide the time to prepare a new lending operation to cover medium-term NUTP budgetary commitments until the program’s completion (201 6).
111. Proposed Changes
27. The eligible categories o f the proposed Additional Loan do not require a change in the project components. The requested Second Additional Loan would support a scale-up o f the project’s components in the following manner:
Project Component A: Capacity Building - US$2.5 million. This component wi l l finance the strengthening o f institutional capacity, at the national level, through the provision o f technical assistance in support o f the Borrower’s efforts to formulate national urban transport programs and strategies pursuant to the NUTP, including among others: (i) the definition o f a national urban transport institutional map; (ii) the formulation o f a transport sector policy; (iii) the definition o f operational, regulatory, institutional, environmental, social and road safety strategies within the urban transport and urban development qontext; (iv) the identification o f appropriate mass transit solutions to improve transport in the Borrower’s territory and to improve traffic management; and (v) the development o f policy guidance in a series o f strategic areas, including among others: development o f performance and monitoring mechanisms, regulatory and institutional frameworks related to the NUTP, and the design and implementation o f communication strategies. Also, improvement o f the institutional capacity o f the Participating Cities and Implementing Entities to ensure adequate implementation o f BRTS, through, among others: (i) the provision o f equipment and
9
training; (ii) the setup and maintenance o f an operational structure able to program, monitor and administer public , transportation services; (iii) the implementation o f twinning arrangements between Implementing Entities; (iv) the strengthening o f the institutional capabilities o f the Participating Cities and Implementing Entities, through the provision o f technical assistance in issues such as environmental and social matters, bus operation and fare collection concessions, tariff-setting and tariff integration with other entities and communication strategies. This Additional Loan wi l l also finance the strengthening o f the operational capacity o f Participating Cities with respect to the implementation o f urban development and transport strategies and the provision of support to the PCU to conduct overall project coordination, evaluation, supervision and implementation, including: (i) the strengthening o f the capacity o f the PCU to comply with i ts responsibilities as set forth in the Operational Manual, including the hiring o f specialized staff, such as urban transport engineers, economists, and legal, financial, social and environmental specialists; (ii) , the carrying out o f project audits; (iii) the carrying out o f project studies, including performance reviews and impact evaluations; and (iv) the design and implementation o f a program to monitor and evaluate the carrying out o f the project.
Proiect Component B: BRTS Development - US$297.5 million. This component will finance the expansion o f the physical scope, geographical and social coverage o f the NUTP in the Participating Cities, other than Bogota, through the carrying out o f the following activities: (i) construction o f segregated busways; (ii) construction o f terminals and transfer centers; (iii) construction o f mixed-traffic lanes adjacent to busways corridors; (iv) construction o f sidewalks; (v) rehabilitation o f feeder routes; (vi) construction o f pedestrian ways along busways cbrridors; (vii) construction or adaptation o f complementary transport corridors to the segregated busways; (viii) carrying out required interventions or upgrading o f public service networks adjacent to the construction areas; (ix) carrying out supervision o f construction works referred to in this paragraph; and (x) construction o f bus stations. This Additional Loan wi l l also continue to provide financing for the construction and operation o f the NQS Line o f the Bogota Transmilenio, S.A. Furthermore, the Loan will provide financing for the acquisition o f land required for the carrying out o f Part B. 1 o f the project and financing for the resettlement and the provision o f compensation to Affected Persons pursuant to the provisions o f the RAPS, in connection with the carrying out o f Part B.1 o f the project. Lastly, the Loan will finance the design and implementation o f EMPs for the carrying out o f Parts B. 1 and B.2 o f the project.
Table 3. Project Costs Second First Additional Additional
Loan under Preparation US$ 'million us$ million
Total Financing
Original Loan
US$ million
Project Cost By Loan Component (LN 723 l-cO) (LN 7457-CO)
1. Capacity Building $ 2.3 $0.6 $ 2.5 $4.8
10
2. BRTS $ 247.7 $206.4 $297.5 $ 752.2 Development
Total Financing $250.0 $207.0 $300.0 $757.0 Required
IV. Consistency with Country Partnership Strategy (CPS)
28. The proposed Second Additional Loan i s consistent with the Country Partnership Strategy (CPS) discussed by the Board in April 2008. The CPS recognizes that to assist Colombia's quest for peace, it i s necessary to achieve fast and sustainable growth. To reach such a goal the CPS gives high priority to the promotion o f competitiveness in the productive sector and to the improvement o f access to high quality basic public infrastructure services for the least privileged segments o f the population. In this area, an organized mass transit system i s expected to foster productivity and competitiveness, provide better services to the poor, improve environmental conditions (Le. better air quality and GHG emission reductions), and quality o f l i f e in urban areas. Additionally, the proposed IMTS project enhances institutional capacity both at the national and local level, particularly as i t relates to strengthening implementation capacity o f municipalities in large-scale infrastructure projects.
V. Appraisal of Scaled-up Project Activities
Economic and Financial
29. A standard cost-benefit analysis was updated and carried out for the cities o f Barranquilla, Bucaramanga, and Cartagena, which have yet to start operations and are being financed by this Additional Loan." The methodology used for this cost-benefit analysis was the same as that applied to the original project (LN CO-7231) and the First Additional Loan (7457-CO). The analysis includes all public and private costs associated with BRTS implementation and operation. Estimated benefits include travel time savings for both BRTS users and private vehicles using parallel mixed traffic lanes, efficiency improvement in transit operations due to scrapping o f obsolete units, as well as modal shifts, trip generation, accident reduction and pollution abetments. A methodological summary and results o f a series o f sensitivity analysis i s presented in Annex 6.
30. The economic evaluations performed on the three projects show positive indicators. N e t present values are positive and significant for Bucaramanga and Cartagena, and internal rates o f return are above the discount rate o f 12 percent. For the case o f Barranquilla (IRR
" The economic evaluation for Medellin's Metroplus project has not been completed given the early stage o f key elements o f project design. There have been significant delays in project implementation associated with the definition o f the institutional and operational integration of Medellin's Metro. It i s unclear how this integration will affect a large component o f the BRTS, which spans over the southern part o f the city and connects the municipalities of Medellin with Itagui and Envigado. There i s an existing discussion over the final extent o f this component. Preliminary cost-benefit analysis of the Government and the local project agency obtain IRRs above 12 percent, however, this analysis carries significant uncertainty and will be revised in the future. I ,
close to 12 percent), project costs have considerably increased due to additional investments in road network for feeder services, particularly in the lower income municipality o f Soledad, and increased investments in fleet associated with larger buses (to operate high demand feeder routes) and the addition o f air conditioning for al l the fleet. Although some o f these investments are meant to increase overall ridership (demand estimation from previous cost- benefit analysis increased from 28 percent to 38 percent), higher project costs and delays in operation have diminished the project’s overall IRR.
Table 4: Summarv o f Economic Analysis Barranquilla Bucaramanga Cartagena Transmetro Metrolinea Transcaribe
Net Present Value (US$ million) 5.94 244.61 68.37 Internal Rate o f Return 12.30% 22.80% 15.33% Benefit Cost Ratio 1.02 1.74 1.23
Technical
31. The proposed BRTS projects presented no major technical difficulties in their design, construction or supervision. The required civ i l works include the construction o f segregated busways, stations and terminal?, as well as the pedestrian infrastructure needed to access trunk-line stations. These works use standard construction procedures, available materials and machinery. The alignment o f the segregated busways, its insertion into the urban structure, and i t s relation to the existing road network is meant to be incorporated in the design. The location o f the busways i s in the center o f major arterial roads. The terminals are located at each end o f the busways and have especially designated areas for pedestrian and bus activity. Interchange stations will also be built for some BRTS along busway corridors in order to facilitate transfers between feeder, complementary and trunk-line services. During the construction period, specialized consultant f i r m s are being contracted to supervise and control the quality o f the works.
Institutional
32. The institutional arrangements for this Second Additional Loan will remain the same as in the original project. The implementing agency will continue to be the MOT, which oversees the overall coordination, evaluation, supervision and implementation o f the NUTP. A PCU will continue to operate within MOT. The PCU reports to the Deputy Minister o f Transport and i s staffed by a mix o f c iv i l servants and individual consultants, including urban transport engineers, economists, accountants and social and environmental specialists, among others. This unit has proven effective in the overall management and implementation o f the NUTP since 2003, and has the kapacity to provide direct support to the Participating Cities and Implementing Entities in technical, operational, environmental, social and resettlement, and procurement aspects o f the program.
33. For the purposes o f this Additional Loan, the Operational Manual will be updated to include, among other things: (i) detailed arrangements for the overall carrying out o f the project, (ii) an institutional implementation plan o f MOT, the Participating Cities, the City o f Bogota and the Implementing Entities for the management o f their respective Parts o f the
12
Project and the establishment and maintenance, throughout Project Implementation, o f a Social Management Team in each Implementing Entity; (iii) the procurement guidelines to be followed by the Borrower (through MOT), the Participating Cities, and the Implementing Entities set forth in the Procurement Plan; and (iv) the financial management guidelines to be followed during Project implementation 'by the Borrower (through MOT), the Participating Cities, the City o f Bogota and the Implementing Entities; (v) the guidelines for the preparation o f the Annual Action Plans; (vi) the procedures, criteria and standard guidelines satisfactory to the Bank, for the carrying out o f training and technical assistance financed under the project; (vii) the updated RPF, the EMF, and relevant criteria and guidelines for the development and updating o f EMPs and RAPS; (viii) the criteria for the selection for Participating Cities; (ix) a construction manual to guide the construction and supervision o f works under Part B o f the project; (x) the model forms for Subsidiary Agreements; and (xi) the procedures for the utilization o f the proceeds o f the Transfers for the implementation o f Part B o f the project.
34. Furthermore, the Subsidiary Agreements, excluding the City o f Bogota'*, w i l l be updated to include the Bank's Anti-Corruption Guidelines (Guidelines On Preventing and Combating Fraud and Corruption in Projects Financed by IBRD Loans and IDA Credits and Grants, Dated October 15,2006).
Procurement
35. The executing agency continues to be the MOT. The M O T continues to have the obligation o f maintaining the PCU under this Second Additional Loan. The PCU was created to manage the NUTP and i s well integrated within the MOT, i s staffed by a mixture o f civil servants and individual consultants, interacts with the local Implementing Entities o f the Participating Cities and has proven to have the needed capacity to perform the coordination and supervision o f the project, including i t s procurement. Nevertheless, all procurement activities - including civil works and consulting contracts - are conducted by the local Implementing Entities in the Participating Cities. The Bank has assessed their capacity to implement procurement under this project and results were satisfactory.
36. The procurement arrangements for this Second Additional Loan were elaborated in a similar fashion as that for the original project (Refer to Annex 5). The threshold for International Competitive Bidding (ICB) goods contracts remains at US$250,000 in l ine with the threshold approved in the original project. Prior review contracts wi l l also be identified in the Procurement Plan, as updated for this Loan. Procurement Implementation for the proposed Additional Loan would be carried out in accordance with the Bank's "Guidelines: Procurement Under IBRD Loans and IDA Credits" dated May 2004, revised October 2006; and "Guidelines: Selection and Employment o f Consultants by World Bank Borrowers'' dated May 2004, revised October 2006, and the provisions o f the loan agreement, using the current harmonized Standard Bidding Documents (SBD) for Colombia. For procurement
'* The Subsidiary Agreement for the dty of Bogota wil l not be updated since all civil works concluded in 2006 and the proposed Additional Loan wil1,dnly finance the Government's transfers that in turn wi l l be used for the payment o f contractual obligations incurred by the civil works' contractor o f the Bogota-NQS corridor. Refer to paragraph 1 1.
13
where a harmonized document i s not ready, Bank Standard Bidding Documents wil l be used or a document be previously agreed with the Bank.
Financial Management and Disbursement Arrangements
37. Financial Management Assessments were performed during 2005 and 2006 to the fol lowing local Implementing Entities: Megabus S.A (Pereira), Transcaribe S.A (Cartagena), Metroplus S.A. (Medellin), Transmetro S.A. (Barranquilla) and Metrolinea S.A. (Bucaramanga). The conclusion was that these local Implementing Entities have sufficient financial capacity to execute loan funds under the NUTP. The financial management arrangements are reviewed on a regular basis during Bank supervision. Action plans have been agreed with each o f the local Implementing Entities to fol low financial reporting recommendations made during project supervision, review o f IFRs, and fol low up o f audit findings (see Annex 4 for the latest progress on these Action Plans). The audit improvement plan endorsed by the Contraloria General de la Reptiblica for the PCU over the 2007 financial statements was updated by the MOT as o f December 3 1 , 2008. This update reflected the substantial accomplishment o f recommendations. The FM risk continues to be substantial due to the number o f local Implementing Entities with different financial systems and the complexity o f the internal controls, funds f low and auditing arrangements, but as noted above the control systems are functional and there i s a good track record o f following up on improvement and action plans. In this respect, risks have been supervised very closely.
38. This Second Additional Loan will require a change in the periodicity with which the project’s financial statements are audited, from once a year to every six months. As for prior operations, the audited financial statements should include a special opinion, prepared under terms o f reference satisfactory to the Bank, providing assurance and supported by project documentation that al l disbursements correspond to eligible expenditures under the project. The audited financial statements for each period shall be furnished to the Bank no later than ninety (90) days after the end o f such period. Furthermore, for the audit o f the financial statements covering the last semester in the fiscal year in which the closing date occurs, a special opinion shall be submitted confirming that al l cumulative disbursements correspond to eligible expenditures under the project. Also, this Loan will require the preparation o f interim unaudited financial repofis for the project covering the quarter, and furnished to the Bank as part o f Project Repod, no later than forty-five (45) days after the end o f each calendar quarter.
39. Furthermore, and for the purposes o f this Second Additional Loan, eligible expenditures, as defined in the Loan Agreement, refer to any o f the expenditures incurred for Categories (l), (2) or (3) for Part A o f the project, or transfers made to the Implementing Entities, for Part B.2 o f the project, and the City o f Bogota, for Part B.1 o f the project, if such expenditures correspond to: (i) (contracts for goods, works and services procured by the Implementing Entities; and (ii) contracts for works procured by the City o f Bogota for the NQS Line o f the Bogota Transmilenio SA. , al l for the exclusive purposes o f their respective Parts o f the Project, and documented through a Statement o f Transfer (SOT); and/or (ii) the amounts required to compensate relevant Affected Persons for the replacement cost o f land acquired for the purposes o f Part B.1 o f the project, respectively, and documented through a
14
SOT; and/or (iii) the amounts required to compensate relevant Affected Persons for the involuntary resettlement carried out for the purposes o f Part B.l o f the project, under the respective RAP, and documented through a SOT. A Transfer by i t se l f does not qualify as an Eligible Expenditure. In this context, a transfer refers to the amount transferred by the Borrower, (through MHCP), to any o f the local Implementing Entities, through a Fiduciary Trust Arrangement, to cover the Borrower’s contributions for the financing o f eligible expenditures incurred by any o f the local Implementing Entities in connection with the carrying out o f their respective works detailed in Part B o f the project.
(1) Goods for Part A.2 o f the Project (2) Consultants’ Services for Part A o f the Project and audits (3) Training for Part A.2 (a) o f the Project (4) Transfers for Part B. 1 and Part B.4 o f the Project
(5) Transfers for Part B.2 and Part B.4 o f the Project
(6) Transfers for (i) land acquisition under Part B,3(a) o f the Project, and (ii) compensation to Affected Persons under
40. The Borrower (through MOT), may withdraw the proceeds o f the Loan in accordance with the provisions o f Article I1 o f the General Conditions, the respective section o f the Loan Agreement, and such additional instructions as the Bank may specify by notice to the Borrower (including the “World Bank Disbursement Guidelines for Projects” dated May 2006, as revised from time to time by the Bank), to finance items as detailed in the table below.
I 10,000
2,460,000
30,000
165,500,000
!
106,000,000
26,000,000
41. The following table specifies the categories o f items that may be financed out o f the proceeds o f the Second Additional Loan, the allocation o f the amounts o f the loan to each category, and the percentage o f expenditures to be financed for items in each category.
Table 5: Loan Disbursement Categories
Cateeorv
Amount of the L o a n ’ allocated
(exwessed in Dollars)
Percentage o f expenditures
to be Financed
100%
100%
100%
100% o f amount transferred by the Borrower to local Implementing Entities under the corresponding Subsidiary Agreements 100% o f amounts transferred by the Borrower to the City o f Bogota under the corresponding Subsidiary Agreement 100% o f amounts transferred by the Borrower to the local Implementing Entities under the corresponding Subsidiary Agreements
15
Part B.3(b) o f the Project TOTAL AMOUNT
42. A social analysis was carried out at the time when the Participating Cities became eligible for Bank Financing in 2005. The results showed that there was a great potential for the projects to improve the standard o f living o f the population in those cities. The expected benefits for public transport users, mostly o f l ow and middle income strata, included savings with regard to travel time, lower travel costs, better managed public spaces and improved safety, among others. The project i s furthermore designed to allow the use o f mass transit by the disabled population. Approximately 3,623 social units have been relocated under the project, and about 2,557 will be relocated under the Second Additional Loan.
300,000,000
43. In addition to positive impacts and benefits, the project was also expected to generate adverse social impacts mainly associated with the necessary acquiring o f land (i.e. temporary or permanent land acquisition) for c iv i l works construction. These works cause limitation in the access to residential housing and businesses, as well as the actual necessary removal of existing structures. The structures therefore need to be bought and the occupants o f these structures will need to be either economically or physically resettled, or both. When an affected social unit needs new housing, the project provides sufficient compensation and support so that the social unit can acquire a new or used house. Supervision o f the project has confirmed that affected social units have acquired better or improved housing. Affected street vendors are being provided participation in support programs such as capacity building, credit opportunities and other economic conversion programs which are managed by different entities in the municipalities. Likewise, particular efforts are being made to provide additional support to businesses and other commercial activities. Such activities include capacity building and training in topics such as accounting, organization, marketing etc. Additional adverse impacts, most often temporary during the construction phase, involve interference on urban service infrastructure (pavement, phone lines, electricity wiring, water pipes and sewage mains, etc) as well potential temporary nuisance during construction (noise, dust, waste, and traffic congestion).
44. When the original IMTS Project was being prepared it was not possible to determine the exact location for project activities. Therefore, in compliance with Bank safeguard procedures, a Resettlement Policy Framework (RPF) was prepared, approved by the Bank, and disclosed on February ls t , 2004. Cities participating in the project have used the resettlement principles and the full replacement cost m e t h ~ d o l o g y ' ~ outlined in the RPF to prepare Resettlement Action Plans (RAPS). In fact, preparation o f environmental as well as resettlement policy action plans has become an eligibility criterion for each Participating City (See Annex 7, Status o f Resettlement Planning and Operation). During preparation o f the proposed Second Additional Loan, the Bank carried out a review and identified areas that would improve the RPF. The project team presented those comments to the Government,
l3 Means the methodology used by an Implementing Agency for the valuation of assets lost by Affected Persons and for which the compensation shall be provided in an amount sufficient to replace such assets in accordance with the terms o f the RAPS and in compliance with the Bank's policy on Involuntary Resettlement (O.P.4.12)
16
who agreed that the resettlement instruments will be updated prior to loan effectiveness. l4 The updated RPF will then be re-disclosed once it i s approved by the Bank (Safeguard’s Advisory Team-SAT). Likewise, RAPS” that are both under implementation (RAPs Type B) and under preparation (RAPs Type C) should be updated to reflect changes included in the re-disclosed RPF, prior to effectiveness. To address any implementation inconsistency between the updated RPF and the RAPS- those that have been concluded (RAPs Type A) and those that are currently under implementation (RAPS Type B)- an assessment wil l be undertaken by the borrower, on the basis o f terms o f reference acceptable to the Bank, no later than ninety (90) days after loan effectiveness. For those RAPs that present inconsistencies with the provisions o f the updated RPF, corrective action plans should be submitted and agreed with the Bank, and, subsequently implemented under a time-table satisfactory to the Bank.
45. In terms o f resettlement camponent implementation, Colombia i s the second country in Latin America Region (after Brazil) with most resettlement in Bank-financed projects; hence it i s not surprising to find a wealth o f resettlement experience in different sectors. The IMTS Project is being implemented by specifically-created implementation units in the local Implementing Entities in each city. Each o f these units has a social sub-unit which manages social issues, in particular the resettlement components. The number o f staff in these social management teams varies from just a few, in, for example, Bucaramanga, to a large team in Medellin. The composition o f the social management teams i s diverse and consists o f anthropologists, sociologists, economists, lawyers, social workers, psychologists, administrative staff and others. During supervision missions, the project team has found that, in general, the social management teams are dedicated, hard working and with high professional standards. Where the Bank team has identified problems o f lack o f capacity, the implementing agencies have taken measures to improve staff composition and performance, for example in Cartagena. However, there has been strong government commitment to manage and mitigate resettlements, following Bank guidelines.
Environmental I
46. The project will continue to finance infrastructure works in the main transport corridors o f the Participating Cities’ metropolitan areas (Le. Bucaramanga-Floridablanca-Piedecuesta- Giron; Medellin-Valle de Aburra; Barranquilla-Soledad and Cartagena), to enable the development o f BRTS that will improve transport efficiency and accessibility, and allow for less fuel use per km and less air pollutant emissions. As such, environmental impacts are expected to be positive in the long run, as works will take place in urban consolidated areas, where transport corridors already exist. Also, BRTS will allow a reduction in fuel consumption as a result o f transport efficiency gains. This will help mitigate climate change as GHG emissions are reduced. In particular, the Bank i s engaged in developing a carbon
Updates to the RPF and, as a consequence to the applicable RAPs, include improved clarity on the full 14
replacement costlcompensation methodology, approach to occupiers and grievance procedures. l5 Refer to Annex 6 for a definition o f the different RAP typology.
effectiveness conditions. Refer to Section VIII. Financial T e r p and Conditions for the Additional Financing, which includes al l loan 16
17
financing operation for Cartagena’s BRTS, so that revenues from carbon credits can contribute to strengthen the central coordination at Transcaribe.
47. Nonetheless, some temporary negative environmental impacts may result during the construction phase and need to be mitigated through EMPs. All c iv i l works under the project will closely fol low the alignment o f existing roads. After a screening was carried out during the original project, safeguard policies OP4.01 (Environmental Assessment), OP4.04 (Natural Habitats), OP4.11 (Cultural Physical Resources) and OP4.13 (Involuntary Resettlements) were triggered. OP4.04 and OP4.11 were activated as a precautionary measure, to ensure that nearby wetlands were not to be affected by the designs or works, and to ensure that potential chance finds were to be handled properly. In addition, in Cartagena, the designs were to especially consider the heritage legacy o f the city walls and old fortress constructions near the project area. The most relevant aspects considered in the Environmental Assessment (EA) are s t i l l associated with the construction period and include: (i) re-routing o f traffic through secondary roads; (ii) increase in air pollution and noise levels; (iii) disposal o f construction waste; (iv) potential interruption or limitation in the access to residential housing and businesses; (v) potential increase o f accidents; (vi) potential interference on urban service infrastructure (pavement, phone lines, electricity wiring, water pipes and sewage mains, etc); and (vii) potential nuisance during construction (i.e. noise, dust, waste, and traffic congestion).
48. Therefore, for these types o f activities (and given the track record to date) a Category B environmental rating i s considered appropriate. Assessment o f implementation o f the EMPs in the Participating Cities has shown that environmental and’ social impacts can and are mitigated through appropriate and satisfactory implementation o f EMPs. In fact, throughout the project, EMP implementation has been generally satisfactory (See Annex 8, Status o f Environmental Management Plqns). Implementation o f EMPs i s tied to the remuneration o f environmental components to the constructor and general compliance i s normally sought to avoid reductions in remuneration and contractual penalties.
49. Nevertheless, there have been cases in specific locations where additional work has been needed to correct problems found during implementation. In those cases, however, the environmental impact has s t i l l been very low, as the problems generally refer to: (i) inadequate closing o f the area being built; (ii) deficiencies in the coordination with the public service contractors (i.e., water, electricity, and communication providers); (iii) inadequate management o f construction waste in, specific areas; and (iv) lack o f respect for the construction area in the living cpmmunities in central, dense areas. In these cases, corrective measures have been identified, and are being pursued by the works supervising contractors and the respective local Implementing Entities. Supervision o f these issues will continue during implementation o f this Second Additional Loan.
50. The impacts, as described above, are not expected to be significant or irreversible. EMPs will include measures to ensure mitigation o f al l potential impacts identified through updated environmental screening. To facilitate E M P development, a specific Environmental Management Framework dated March 2004- “General Environmental Guidelines for the Design, Construction and Fol low up o f the I M T S Project in Colombia”- was devised during
18
project preparation. Furthermore, to strengthen overall safeguard compliance in the IMTS project, at the end o f 2008, the Bank organized a workshop, with the participation o f al l local Implementing Entities, and representatives from constructors and supervisors. At the workshop the whole set o f environmental guidelines included in the Environmental Management Framework for the drafting o f EMPs was reviewed, taken into account specific experiences related to c iv i l work construction. Hence, this Environmental Management Framework dated March 2004, amended as a result o f the above-mentioned review process, will continue to serve as guideline in this Additional Loan.
51. Furthermore, the agencies in charge o f developing and managing the BRTS have adequate personnel in charge o f monitoring compliance with the project’s environmental framework consistent with the Bank’s safeguard policies. These agencies have already developed general EMPs following the guidelines mentioned above. Once specific designs are produced and new works are to be bid, specific EMPs become part o f the contractual obligations, and are budgeted separately than the cost/km for the civil works. Remuneration for EMP is based on actual implementation, which i s monitored daily by the company in charge o f supervising the works. Every week a check l i s t on compliance i s agreed between contractors and supervisors. The environmental specialists from the local Implementing Entities at the city level continuously interact with the supervisors, to provide feedback, and to support E M P implementation follow-up. In cases where poor E M P implementation i s reiterated, pecuniary penalties are levied on the constructors. Furthermore, as the project has progressed, workers acquainted with the EMP requirements find themselves better suited to undertake upcoming works. Similarly, the constructors’ crews have already gone through the process and know how to comply with the safeguards. Supervision i s better focused to the more significant problems, causes and solutions, as supervising contractors have also learned the process, and local Implementing Entities (Le. Transcaribe, Transmilenio, Transmetro, Metrolinea, Metroplus and Megabus) have all become familiar with the EMPs and Bank requirements.
52. The MOT, which coordinates overall project implementation, has appointed an experienced environmental specialist, which i s part o f the PCU, to ensure coordination at the local level and interact with the Bank. In addition to the EMP, which already makes part o f the bidding documents (generally contained in Annex D), constructors need to develop an Action Plan for implementing the E M P and the technical supervision contractor needs to develop a Monitoring Plan to fol low implementation o f the E M P and i t s Action Plan. The project foresees no change in the institutional capacity during implementation o f this Additional Loan, both at the national and local level.
Safeguard Policies
Safeguard Policies Tr iggered by the Project Yes N o Environmental Assessment (OP/BP 4.0 1) Natural Habitats (OP/BP 4.04) Pest Management (OP 4.09) Physical Cultural Resources (OPJBP 4.1 1) Involuntary Resettlement (OP/BP 4.12)
19
Indigenous Peoples (OP/BP 4.10) [I [XI Forests (OP/BP 4.36) [I [XI Safety o f Dams (OP/BP 4.37) [I [XI Projects in Disputed Areas (OP/BP 7.60) [I [XI Projects on International Waterways (OP/BP 7.50) [ I [XI
Segregated trunk lines (km) Pre-trunk, load and feeder lines
Terminals/ Garages (No.) Boarding Stations (No.) Awarded trunk construction contracts (No.)
(km)
53. w i l l maintain the same environmental category, which i s Category "B".
The Additional Loan will trigger the same safeguard policies as the original project and
Progress to date/ Base
Line for A F Original Second A F
(LN 7231) (LN 7457) Preparation) Target (2004) Activities A B C A+B+C (2009)
47.4 34.6 6.3 88.3 0 65.5 (74%)
Base Line Loan birst A F (Under Project
44 115.4 96.2 255.6 0 7 (3%)
4 7 1 12 0 3 (25%)
84 98 46 228 0 51 (22%)
22 22 44 12 38 (86%)
VI. Expected Outcomes
54. The PDOs remain unchanged and the project continues to have the broad objective o f improving the efficiency, quality and sustainability o f urban transport through the enhancement o f the mobility and accessibility for the poorest urban areas. As previously noted, project performance i s being monitored against intermediate output indicators and key performance/outcome indicators for those BRTS projects that already began operation.
55. The expected outputs o f the project have evolved as the scope o f the NUTP increased with each Bank operation. Initially, the original project (Loan 723 1 -CO; signed 2004) only included the cities o f Bogota, Pereira and Cartagena. Afterwards, the First Additional Loan (Loan 7457-CO; signed 2007) featured a geographical scale-up with the addition o f Barranquilla, Bucaramanga and Medellin to the NUTP. The proposed Second Additional Loan i s associated with a physical scale-up o f the project in the Barranquilla, Bucaramanga, Cartagena and Medellin. These gradual changes in project scope have similarly changed the expected outputs or targeted goals in each project. This progression and the additionality o f each Bank operation to the overall NUTP i s depicted in the following table:
Table 6: Project Output Indicators
I I I Expected Outputs/Goals Monitoring
output Indicators*
20
Awarded trunk
contracts (No.) Awarded fare collection 3 2 5 1 contracts (No)
operation 5 6 1 1 0
Performance/ Outcome Indicator
5 (45%)
4 (80%)
Generalized Travel Cost (2003 USD)
Generalized Travel Cost for Lowest Income Strata* (2003 USD) Average Travel Time for Lowest Income Strata* (Minutes) BRTS Technical Tariff (2003 COP) Percentage of people rating the system as being better than the previous system (YO) Source: Local Imal
Table 7: Project Key Performance/Outcome Indicators
2007 2008
1.38 1 0.70 ~ 1.S:
0.88 0.77
48.1 35 47.9
72.1 75 75.3
I I try of Transport
M
0.70
0.75
32
1400
80
Notes: * Income strata 1 and 2 ** T= Transmilenio; M= Megabus
57. Furthermore, as part o f the Land Committee’s authorization for the financing o f land acquisition and compensation, the team has prepared indicators to monitoring and evaluation these processes. The following table outlines those indicators, proposes a strategy for data
21
collection and enunciates responsibility for tracking them. The team will track these indicators as part o f their semiannual supervision missions.
. Variation between final selling prices and initial property valuation
. Number of land valuations disputed by the owner with respect to the total number of valued
Table 8: Land Acquisition Monitoring Indicators
Supervision missions, Land Local Implementing Acquisition Office at the Entities Local Implementing Entities Supervision missions, Land Local Implementing Acquisition Office at the Entities
properties I Local Implementing Entities I . Financial Management Audits (Flows o f Funds for I Supervision mission, FM I Bank Team, Land Acquisition)
VII. Benefits and Risks
5 8. Benefits. Quantifiable and non-quantifiable benefits are expected from the proposed Additional Loan. These include: transportation cost savings, time savings, increase in average speeds for vehicular traffic in the corridors, reduction in accidents, reduction in air pollution, creation o f employment, public space upgrading, institutional improvements in the transport sector, generation o f new business opportunities and real estate activities, and overall improvement o f the quality o f l i f e in urban areas.
59. Risks. The proposed Additional Loan will finance a scale-up o f project activities related to the expansion o f the project’s physical scope. Hence, the project will trigger the risks previously identified in the original PAD. Although some risk ratings have decreased due to a satisfactory implementation track record o f the I M T S project (i.e. risks related to private operators and the execution and implementation at the local level), other risks remain present, particularly those related to the social safeguard’s management. In this respect, the project team will continue to closely monitor implementation capacity at the local level, and supervise and review any remedial measures to handle eventual risks in a timely and effective manner, as has been done in the previous operations.
22
Table 9: Project Risks
Risk Risk Rating
resulting from: (i) the inability o f BRTS implementing agencies to enforce contracts, regulate and control the system; (ii) private operators fail to meet quality standards; and (iii) excessive competition and predatory practices by unregulated competing services.
Access o f urban poor to BRTS i s constrained by: (i) unaffordable bus fares or excessive travel costs; and (ii) lack o f feeder service provision due to financial constraints.
Lack of political support o f local authorities either the major or the municipal council to implement the BRTS project.
BRTS’ implementing agencies unable to: (i) finalize arrangements for execution and financing of BRTS’ infrastructure; ,and (ii) concession of BRTS fare-collection and vehicle procurement and operation services to private operators.
Private operators unable to organize themselves or unwilling to participate in the project due to the fear of changing the existing business structure.
Integration o f transport operation between existing mass transit system and the BRTS in Medellin i s not achieved or conditions are
S
M
M
M
S
M
23
Risk Mitigation Measure
The project provides technical assistance to further strengthen institutional capacity at the local level in order to design the bus concession and reorganize the actual routes. The bus concession scheme should provide strong incentives for good performance, which i s being accomplished in the two projects (Bogoth, Pereira) that are currently in operation.
The proposed fares for the BRTS will consider affordability o f the poor. One o f the important additions to the projects’ scope i s the expansion of feeder bus routes to serve targeted poor neighborhoods under an integrated flat fare system to ensure the poor have access to the
City eligibility to the NUTP i s conditioned by the conditions set in the Subsidiary Agreement prior to project implementation. Currently, strong interest in the BRTS projects has been materialized in six Participating Cities. Discussions are already taking place to sign Subsidiary Agreements with additional cities.
Through the Financial Subsidiary Agreement, Government and the municipality will allocate the required resources to the project. Given the reliability o f such sources it i s expected that commercial banks will be keen to finance the projects. In some municipalities local bus operators are already getting prepared to participate in the bidding processes. Concession of BRTS operation i s a required condition for national funding. The experience of Transmilenio operators serves as a positive incentive for local operators to support and participate in the project. The presence o f local operators i s stimulated. The project provides TA to strengthen the communication strategy of the PCU and the local Implementing Entities in each Participating City. The project provides TA to improve the institutional capacity at the local managerial level in order to design appropriate operation
asymmetric for BRTS users, impaoting on disproportionate cost and physical transfer penalties for BRTS users.
Formal and informal retail sector are against project implementation fearing losses in revenues derived from reduction in commercial activities in the BRTS corridors.
Project affected peoples are worse o f f after project implementation due to a permanent and/or temporary need for land and/or property and/or reduced access to economic resources and/or property.
Environmental Management Plans are not properly implemented.
Effects o f the financial crisis diminish Government and municipal contributions to the projects.
.isk Ratings: H (High Risk); S (Substantial Ris
S
M
N
M
8; M (Mo
coordination with Metro Medellin and to ensure beneficial settlement for al l users. Specific demand pattern studies will be conducted in order to estimate the travel and cost benefits related successful fare and physical integration. The metro will be in charge o f the operation and planning o f the whole system. Resettlement Action Plans have been, and continue to be, prepared including measures to cope with the concerns o f retail and street vendors. Resettlement Action Plans, as updated for this Loan, include the necessary actions to mitigate the negative impacts on commercial activities for the affected stakeholders, such as income restoring measures. Public participation and communication strategies are important parts o f the RAPs to ensure that the measures respond to Affected Persons concerns. Also, as mentioned above, the project provides TA to strengthen the communication strategy o f the PCU and the local Implementing Entities in each Participating City. The RPF and RAPs have been applied to date with an overall satisfactory track record (see paras. 14, 21 and 42 above) and are being updated and improved as part o f this Additional Loan (see para. 43 above). Furthermore, supervision missions have been able to conclude that the institutional dedication and capacity i s adequate in most cities. This may contribute to an expected satisfactory implementation of the RAPS. Contracts include specific remuneration tied to the compliance of EMPs. Contractors generally comply with the EMPs to avoid reductions in their remuneration or penalties.
The Government has enunciated that as part of its counter cyclical policy, it will revamp infrastructure investment in the country. As the NUTP has been a long-standing and well- performing infrastructure program o f the current government, financing i s expected to continue. :rate Risk); N (Negligible or Low Risk)
60.
VIII. Financial Terms and Conditions for the Additional Loan
The overall risk rating o f the project continues to be “Substantial”.
61. The US$300 million Additional Loan wil l be provided as a U S dollar commitment- linked IBRD Flexible Loan with a fixed-spread with non-level repayments on February 15 and August 15 with all Conversion options and a grace period o f 11.5 years and final maturity o f 23.5 years with the following repayment profile: from February 15, 2021 through August 15, 2023 (5 percent), from February 15, 2025 through August 15, 2026 (5 percent),
24
and from February 15, 2028 through August 15, 2032 (5 percent). The loan conditions also include the possibility o f retroactive financing o f up to 20 percent o f the loan amount (US$60 million), subject to the following conditions. For payments up to an aggregate amount not to exceed US$20 million for Transfers made by the Borrower (through MHCP) prior to the date o f the Loan Agreement but; on or after April 2 1 , 2009 for items under Category (4) for: (i) the Participating City o f Barranquilla if the Bank has been furnished with documentary evidence, satisfactory to the Bank, confirming that all i t s RAPs Type B have been updated; and the respective Subsidiary Agreement has been updated; and (ii) the Participating City o f Cartagena if the Bank has been furnished with documentary evidence, satisfactory to the Bank, confirming that all i t s RAPs Type B have been updated, all grievance procedures raised by Affected Persons under any o f i t s RAPs Type A has been satisfactorily resolved; and the respective Subsidiary Agreement has been updated. For payments made prior to the date o f the Loan Agreement, up to an aggregate amount not to exceed US$40 million for payments for Transfers made by the Borrower (through MHCP) prior to such date but on or after April 2 1 , 2009 for items under Category (9, provided that such Transfers cover Eligible Expenditures for the City o f Bogota, if the Bank has been furnished with documentary evidence, confirming that the City o f Bogota or the Implementing Entity, has satisfactorily resolved all grievance procedures raised by Affected Persons under any o f i t s RAPs Type A. The Loan closing date i s March 3lS', 2012.
62. The conditions o f effectiveness for this Second Additional Loan, as stated in the Loan Agreement consist o f the following: (i) the updated Subsidiary Agreements have been executed on behalf o f the Borrower (through MHCP and MOT), the corresponding Participating Cities, and Implementing Entities; (ii) the updated Operational Manual has been issued by the Borrower (through MOT), and approved by the Bank; (iii) the updated Resettlement Policy Framework has been adopted by the Borrower (through MOT); and (iv) the updated Resettlement Action Plans Type B and C (reflecting the provisions o f the updated Resettlement Policy Framework) have been adopted by the respective Implementing Entities.
Legal Covenants
63. The covenants, as stated in the Loan Agreement are:
Implementation Arrangements -General Implementation Framework
64. Institutional Arrangements: (a) The Borrower declares i t s commitment to the objectives o f the project and to this end shall carry out the project, through MOT and MHCP, and shall cause the Participating Cities, the City o f Bogota and Implementing Entities to carry out their respective Parts o f the project; (b) the Borrower, through MOT shall : (i) operate and maintain (under the purview o f MOT'S Deputy Minister), at al l times during project implementation, a PCU, as described in Section V, paragraph 32 o f this Project Paper; and (c) the Borrower may change the number o f positions o f the PCU or the professional ski l ls required for occupying such positions, only with the prior approval o f the Bank. I
25
65. Operational Manual:-(a) , The Borrower (through MOT) shall maintain, until the completion o f the project, the updated Operational Manual, as described in Section V, paragraph 33 o f this Project Paper; and (b) the Operational Manual can only be changed with the Bank’s prior N o Objection.
66. Annual Action Plan: (a) Not later than December 31 o f each year during project implementation, starting in 2009, the Borrower shall furnish to the Bank for approval an Annual Action Plan, which includes, among others: (i) a description o f the project activities carried out by MOT, the Participating Cities, the City o f Bogota and the Implementing Entities,; and the updated Procurement plan, disbursement schedule, chart o f accounts for each period, including an identification o f any proposed land acquisition plan; and (b) implement this Action Plan.
Implementation Arrangements -Subsidiary Agreements
67. The Borrower (through MOT) shall continue to carry out and cause the Participating Cities, the City o f Bogota and Implementing Entities to carry out the Subsidiary Agreements which shall include, among others: (a) the Borrower’s obligation (through MHCP) to: (i) transfer to the respective Implementing Entity the portion o f the Loan required to carry out i ts respective activities,; and (ii) suspend disbursements o f Loan proceeds for Transfers, or cancel Transfer amounts to be disbursed in the event that any Participating City or Implementing Entity fails to comply with any o f their respective obligations under the respective Subsidiary Agreement; (b) the Borrower’s obligation (through MOT) to provide technical and administrative assistance to Participating Cities and the City o f Bogota; (c) the obligation o f the Participating Cities, the City o f Bogota and the Implementing Entities to: (i) carry out their respective activities under Part B o f the project, (ii) utilize the proceeds o f the Transfers in accordance with the procedures set forth in the Operational Manual, (d) the obligation o f the Participating Cities, the City o f Bogota and the Implementing Entities to: (i) enable the Bank to review project accgunts and other documentation, as the Bank shall reasonably request, in respect o f the implementation o f Part B o f the project; (ii) provide the Borrower, promptly, with information regarding the implementation o f Part B o f the project; (e) the obligation o f the Implementing Entities to: (i) procure the goods, services and works for the project in accordance with the Procurement Plan including the update o f such plan to incorporate the provisions o f the Anti-Corruption Guidelines, which Anti-Corruption Guidelines wi l l be applicable to all contracts, signed on or after the retroactive financing date; and (ii) carry out Part B o f the project in accordance with technical, financial, environmental, land acquisition and resettlement procedures and plans detailed in the Operational Manual; and ( f ) the obligation o f the Implementing Entities to keep records and accounts in regard to Eligible Expenditures and provide timely information to the Borrower (MOT) on the use o f the Transfers.
68. Also, the Borrower (through MHCP and MOT) shall protect the interests o f the Borrower and the Bank and to accomplish the purposes o f the project, including, through the application o f any legal remedies provided under the Anti-Corruption Guidelines. Furthermore, the Subsidiary Agreement can only be changed with the agreement between the Bank and the Borrower.
26
Implementation Arrangements -Anti-Corruption
69. The Borrower shall carry out the project, and shall, through MOT, cause the Participating Cities, the City o f Bogota and the Implementing Entities to carry out their respective Parts o f the project, all in accordance with the provisions o f the Anti-Corruption Guidelines.
Implementation Arrangements -Safeguards
70. For the purposes o f Part B o f the project, the Borrower (through MOT) shall carry out al l necessary actions to: (a) minimize, to the extent possible, any involuntary loss by persons o f shelter, productive assets or access to productive assets, or o f income or means o f livelihood, temporarily or permanently; (b) implement any o f the activities in accordance with the updated Resettlement Policy Framework, with the following principles and procedures governing, among others: (i) the resettlement and compensation o f Affected Persons pursuant to the provision o f Full Replacement Cost; (ii) land acquisition pursuant to the provision o f Full Replacement Cost and to be financed out o f the proceeds o f the Loan; and (iii) the institutional, administrative, reporting and monitoring, communication and consultation arrangements, the legal framework and grievance procedures applicable to said resettlement and compensation; and (c) maintain or adopt and thereafter implement until the completion o f the project an Environmental Management Framework setting forth, among others (i) environmental management principles and procedures, and communication and consultation procedures; (ii) specific environmental mitigation measures, and (iii) criteria for the development and supervision o f the Environmental Management Plans for any works financed under the project.
71. Prior to initiating the construction o f any works, the Borrower (through MOT) shall provide evidence to the Bank, demonstrating that: (a) for those specific c iv i l works impacting Affected Persons, the resettlement and rehabilitation o f Affected Persons has taken place in accordance with the relevant updated Resettlement Action Plan , previously approved by the Bank, in accordance with the provisions o f the RPF, the Operational Manual and the Loan Agreement, including, among others: (i) the acquisition o f al l necessary land, structures and other assets required for Part B o f the project; (ii) the provision o f the relevant compensation at Full Replacement Cost to al l Affected Persons; and (iii) administrative, reporting and monitoring arrangements to ensure compliance with said plans; and (b) the Participating Cities, the City o f Bogota and the Implementing Entities have developed and thereafter implemented an Environmental Management Plan in accordance with the provisions o f the Environmental Management Framework. This Plan shall set forth the objectives, policies, monitoring procedures, time schedules and other environmental and cultural property protection provisions to among others (i) mitigate potential adverse environmental effects; (ii) mitigate potential adverse effects to natural habitats; and (iii) mitigate adverse effects to cultural properties.
72. N o t later than ninety (90) days after the Effective Date, the Borrower (through MOT) shall: (a) for RAPS Type A: (i) submit to the Bank, for i t s review and comments, a report, prepared in accordance with terms o f reference acceptable to the Bank, containing an
27
evaluation and diagnostic o f the implementation o f the RAPs Type A and their consistency with the provisions o f the RPF; (ii) submit to the Bank, for i t s approval, a corrective action plan including proposed measures to remedy any identified inconsistency between the RAPs Type A with the provisions o f the RPF; and (iii) promptly thereafter, implement said corrective action plan in a manner and within a time-frame acceptable to the Bank; and (b) for RAPs Type B: (i) submit to the Bank, for i t s review and comments, a report, prepared in accordance with terms o f reference acceptable to the Bank, containing an evaluation and diagnostic o f the implementation o f the RAPs Type B and identifying actions already concluded, by Effective Date, under said RAPs Type B and their consistency with the provisions o f the RPF; (ii) submit to the Bank, for i t s approval, a corrective action plan including proposed measures to remedy any identified inconsistency between the RAPs Type B and the RPF; and (iii) promptly thereafter, implement said corrective action plan in a manner and within a time-frame acceptable to the Bank.
Project Monitoring, Reporting and Evaluation-Project Reports
73. The Borrower (through MOT) shall, and shall cause the Participating Cities, the City o f Bogota and Implementing Entities to: (i) monitor and evaluate the progress o f the project; and (ii) prepare and submit to the Bank, by not later than March 3 1 and September 30 o f each year o f Project Implementation, Project Reports covering al l project activities Each Project Report shall cover the period o f one calendar semester. Each o f such reports shall include: (i) a detailed description o f Project activities completed during the respective six months period; and (ii) a detailed progress report, including lessons learned during project implementation. Also, the Borrower (through MOT) shalt, and shall cause the Participating Cities, the City o f Bogota and the Implementing Entities to: (A) review with the Bank (through MOT) by not later than April 15 and October 15 o f each year o f project implementation, starting on October 15, 2009 until the completion o f the Project, the reports and carry out a semi-annual project implementation review to, among others (i) evaluate progress in the carrying out o f the project; (ii) assess progress in the carrying out o f the works , including compliance with the RAPs and EMPs (iii) assess progress in the implementation o f the corrective action plans; (iv) exchange views on progress achieved in the implementation o f the Annual Action Plans and agree on the proposed activities for the upcoming year; and (v) identify any current implementation issues and propose solutions to resolve such issues; and (B) after each o f the preceding reviews, take al l measures required to ensure the efficient completion o f the project and the achievement o f the objectives thereof, based on the conclusions and recommendations o f the said reviews and the Bank views on the matter.
Project Monitoring, Reporting and Evaluation-Financial Management, Financial Reports and Audits
74. Please refer to Annex 4 for a detailed description o f the Borrower’s obligations.
Procurement
75. Please refer to Annex 5 for,a detailed description o f the Borrower’s obligations.
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Withdrawal of Loan Proceeds
76. obligations.
Please refer to Section V, paragraph 41 for a detailed description o f the Borrower’s
Withdrawal Conditions; Withdrawal Period
77. obligations.
Please refer to Section VIII, paragraph 61 for a detailed description o f the Borrower’s
,
29
4)
0 B c,
VY Y
2 E z 2
0 .- U
W
6 U W Q L‘
VY .e
b P
0 m
Annex 2: Implementation Arrangement Framework
National Urban Transport Program Implementation Arrangement
1. Building on IMTS Leg i~ la t ion ’~ passed in 1996. two CONPES documents approved in 2002 and 2003 established the policy and institutional framework for the NUTP. These policy documents: (i) define policy goals, strategies and expected outcomes; (ii) set the responsibilities for the monitoring and evaluation o f execution o f the NUTP and performance o f the BRTS; (iii) create the capacity building program; and (iv) establish the criteria for securing the financing for o f the BRTS by the cities and the Government.
2. For a given city, the implementation arrangements begin with the preparation o f the conceptual design o f each civil work (including technical, urban, environmental and social aspects, the evaluation o f the financial capacity o f the municipality, and the institutional assessment o f the local participating entities) and the verification o f technical and financial eligibility conditions. After this initial identification stage i s completed, detailed designs and project structuring begin (operational, financial and technical aspects o f the system). The CONPES document o f 2002 entrusted National Planning Department (DNP) with the execution and supervision (involving participating cities) o f the preparatory studies for design and financial structuring o f the BRTS projects. When detailed information becomes available, the scope and financial requirements o f the project are defined and the appraisal o f the project i s submitted for approval to the Government. During this phase, after city council approval, the municipalities create an Implementing Entity, which i s a corporate transportation entity established for each Participating City pursuant to the provisions o f the Borrower’s industrial and commercial enterprise laws, which i s responsible for the implementation o f the BRTS activities.
3. The CONPES document, issued by Government for each city participating in the NUTP, details the specific conditions and arrangements for BRTS intervention in that particular city. This document wil l provide the basis for the Subsidiary Agreement signed by Government, through the MHCP, the selected municipality and the pre-constituted BRTS agency and the city. It i s through the Subsidiary Agreement that the scope o f the intervention, the financial structure and the obligations o f the respective parties are formally established. In particular, the agreement: (i) assigns overall responsibility for undertaking and financing any potential cost overrun and/or operational deficit o f the BRTS to the Participating City; (ii) defines the schedule o f Government financial commitments by year, previously approved by the Consejo Superior de Politica Fiscal (CONFIS)” and recorded as future budgetary commitments (vigencias futuras) for proper fiscal accounting; (iii) instructs the municipality city to budget the funds to cover any cost overrun once they are identified; (iv) establishes a trust fund to managed both Government and municipal city contributions for infrastructure; (v) mandates the signing o f a contract between the Government and the municipality; and
The “IMTS Legislation” refers to Law No.86 dated December 29, 1989 as amended by Law No.310 dated August 6,1996 and published in the Government’s Officla Gazette No.42853 dated August 12,1996, providing for the joint financing (between MHCP and the Participating Cities) o f infrastructure works required under the NUTP, through the provisions o f Transfers. I* Council on Fiscal policy
31
(vi) makes mandatory use o f fiduciary procedures o f the Multilateral Organizations’ financial contributions, where applicable, involved in the project.
4. Once al l these conditions are met, Government requests the Bank to include the respective Participating City BRTS to be finance by the loan, following the procedures stated in the Operational Manual. Prior to requesting the Bank to finance a BRTS, the Borrower through MOT submits to the Bank for review satisfactory evidence that the benefited city and BRTS have met the conditions for eligibility set out in the Operational Manual. These conditions include: (i) the Borrower, through DNP, has furnished to the Bank the economic analysis o f the proposed BRTS, and satisfactory environmental management (EMP) and resettlement action (RAP) plans prepared in l ine with the respective frameworks agreed upon with the Bank; (ii) the Participating City, through its Council, has approved the BRTS in i t s Plan de Ordenamiento Territorial and the municipal development plan, and has issued the decreedaccords creating the BRTS agency and earmarking local funds from gasoline surcharges or other sources sufficient to cover the financial plan agreed with Government; (iii) the Participating City, the Implementing Entities and the Borrower have signed a Subsidiary Agreement satisfactory to the Bank, establishing among other, the co-financing, fiduciary, safeguard and reporting arrangements for implementation and monitoring o f the BRTS; and (iv) the Bank has satisfactorily appraised the capacity o f the municipal agencies involved to undertake procurement and financial management in line with the requirements o f the Project Operational Manual.
Executing Agencies
5. MOT has the overall responsibility for the execution o f the project, provides technical support to the NUTP and i s responsible for monitoring and evaluating program implementation. The M H C P is in charge o f the financial management o f resources (including disbursements), and the National Planning Department (DNP) carries out preparatory studies and prepares CONPES documents for each Participating City.
6. The Implementing Entities in the selected cities are the executing agencies o f Part B o f the project. Some cities rely on specialized municipal works agencies (i.e. IDU in the case o f Bogota) to carry out the construction o f the BRTS infrastructure. For the technical assistance component, M O T i s in charge o f managing the procurement o f goods and consultant services.
7. With this institutional arrangement the Government promotes the leadership o f the municipality in the planning, execution and control o f the system, while levering i t s role as policy regulator, through participation in the Board o f Directors o f the agencies in charge o f system development and control (local Implementing Entities).
8. I s through the MOT that the Government: (i) will request from the local Implementing Entities the preparation and presentation, (or prior to disbursement for those already created), o f the financial sustainability and operational plans for the implementation and management o f BRTS, indicating among others the, organizational structure, staffing levels and functions, institutional strengthening measures and/or twining arrangements adopted to ensure the
agency has the capacity to plan and regulate the provision o f the public transport services and equally includes the boundaries that will determine the advancement o f the project according to the fol low up system o f the DNP; (ii) prepares for the Bank the institutional, financial and operational plans to which we refer in the previous paragraph, and the subsequent updates within 30 days after the approval by the governing boards; and (iii) in case o f significant failure to fulfil the co-financing agreement’s obligations by the municipality, will notify the Bank within 30 days o f the application o f established remedies in the respective agreement.
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Annex 3: Integrated Mass Transit System (IMTS) Land Acquisition Framework
9. This Annex provides a detailed account o f the legal framework and land acquisition process currently being followed by the local Implementing Entities in the Participating Cities in the NUTP.
Legal Framework
10. to the national law. The current legal framework consists of:
0 National Constitution: Art ic les 29 and 58 National Laws: 9 o f 1989,388 o f 1997,446 o f 1998
0 Presidential Decree 1420 o f 1998 0 IGAC Resolutions: 620 o f 2008 0 Civil Code and Administrative Code 0 Local Zoning Plans
Land acquisition i s highly regulated in Colombia and follows a strict process according
1 1. The only component o f the legal framework which i s different for every municipality i s the Local Zoning Plan, which determines the desired land uses within each city. All other components apply at a nation wide jurisdiction and must be abided by every municipality for expropriations.
Land Acquisition Process
12. Participating Cities, represented by local Implementing Entities, carry out the land acquisition process. In the case o f Bogota, this task w a s performed by the IDU with which the Bank has worked in previous occasions. Good practices from Bogota’s IDU have trickled down to the local Implementing Entities in the remaining Participating Cities. Three main steps comprise the land acquisition process: first, comes the preparation o f a purchasing offer, then the land acquisitionper se. Figure 1 illustrates the sub-components o f each step. Following i s a brief explanation o f each:
13. Preparation o f Purchasing Offer: Local authorities have to consult the Local Zoning Plan before project preparation. This ensures that the Plan’s land use and overarching directions are being followed. The project’s physical design then identifies those properties that wi l l be intervened. Local authorities can discretionarily use the resource o f afectacibn (Law 9 o f 1989) on the potentially intervened prqperties. This resource imposes a restriction on the economic exploitation o f a private property that will be required for public use, in this case, for the transport BRTS project. Once a property i s under afectacibn, the local entity has a preferential access to it. Before an afectacibn can be made effective, the
0
l9 The explanation o f the land acquisition process i s in general terms. For the specific case o f the IMTS project, whenever there i s reference to “local authority” o f “local entity”, this would entail tasks associated with the local Implementing Entities.
34
current property owners have to be explicitly notified about it. Afectaciones can last between 3 and 6 years and owners are compensated if the afectacidn causes the owner any detriment. Once properties are identified, local authorities perform two surveys: (i) physical survey, where the local entity corroborates the characteristics o f the built property and how it compares to the registered property; and (ii) land t i t les survey, where the local entity investigates who owns the rights to the property. After both surveys are completed, the local entity proceeds to determine the commercial value o f each property. This activity can be performed either by the Agustin Codazzi Geographic Institute (IGAC) or by local real estate agencies (Lonjas de Propiedad Raiz). The commercial value i s determined taking into account the particular characteristics o f each property, zoning and regulations, the surrounding built environment, the socio economic status and the current land uses.
0
0
14. Property Valuation: This activity i s performed by local real estate agencies per requests from the entity that i s implementing a project. The objective from this task i s to estimate the commercial value o f properties that have to be acquired by the project. The I G A C can also perform this activity but it i s seldom used. Instead, the I G A C acts as a verifier o f the valuation accuracy in the event o f claims or complaints. The guidelines used for property valuation are defined in the I G A C Resolucidn 620 de 2008. This document lays out the guidelines for estimating the commercial value o f project-affected properties, and i s the reference used by the local real estate agencies. This document defines four methodologies that can be used for property valuation, each depending on property characteristics, zoning, regulations and data availability, 2o However, for the case o f the IMTS project, and as stated in the RPF2’, the only valid property valuation methodology i s market comparison, which, given project characteristics and implementation record to date, i s considered by the Bank Safeguards team as consistent with replacement cost22 criteria required in Bank policy. This methodology estimates the commercial value o f a property based on the analysis and tracking o f recent offers and transactions o f comparable properties. The methodology requires the real estate agency to present a detailed account o f the source and date o f the transactions that compose the analysis, to be included in the property valuation documentation. Statistical and econometric techniques can be used to estimate the final value o f the property based on gathered data. Furthermore, and as stated in the RPF the IMTS project provides additional assistance to every affected social unit in the project, including legal and socioeconomic advice, to comply with the Bank’s replacement cost criterion, and improve, or at least fully restore, the incomes or living standards o f those affected by the project.
15. Land Acquisition: Based on the commercial valuation, as determined in the previous step, the local entity presents a purchasing offer to the owner o f each property. This offer comes in the form o f a notification, which i s followed by a purchasing agreement (promesa
2o Refer to the IGAC Resolucidn 620 de 2008 (http://www,scribd.com/doc/920503 lfResolucion-620-23908- Del-IGAC-Procedimientos-Avaluos website) for more details on each methodology. 2 ’ Refer to RPF page 12 22 Refer to OP 4.12, paragraph 6 http://web. worldbank.org/WBSITE/EXTERNAL/PROJECTS/EXTPOLICIES~XTOPMANUAL/O,,contentM DK:200646 1 O-isCURL:Y-menuPK:6470 1637-pagePK:64709096-piPK:64709 108-theSitePK502 184,OO.htmI
35
de compraventa) to be signed by both parts, After the offer i s delivered, there are three ways in which the owner may turn over his property:
Voluntary Turn-over: If the owner signs the purchasing agreement, the ordinary process continues- the physical property i s delivered to the local entity and the owner receives a f i rs t down-payment. Afterwards, once the property rights have been transferred, the owner receives the rest o f the agreed payment. Besides the commercial value, the owner i s also awarded a compensation for additional costs caused by the project which includes the transaction costs (registration costs, moving expenses, etc) plus a compensation for unperceived economic rent. Judicial Expropriation: If the qwner has not signed the purchasing agreement 30 days after the notification, an expropriation process will In this case, the local entity has to deposit 50 percent o f the respective commercial value to the judiciary before an expropriation notification i s actually issued by the judge. The owner i s notified and asked to turn over the property; however, the judge must determine a new property value. This “judicial value” will be part o f the final sum delivered to the former owner. The “judicial value” usually takes a long time to be estimated due to the common back-logging in the judiciary offices. Besides this “judicial value”, the owner i s also awarded a compensation for the transaction costs (registration costs, moving expenses, etc) plus a compensation for unperceived economic rent. Administrative Expropriation: This type o f expropriation can be applied for projects developed under “urgent” conditions and that are in the best o f public interest. An administrative decree can set this condition and enable for Administrative Expropriations to happen. This procedure allows the local entity to take over the property in a very short time by paying the owner the commercial value o f the property. The owner i s allowed to dispute this value in a further stance and in a short response time. Besides the commercial value, the owner i s also awarded a compensation for the transaction costs (registration costs, moving expenses, etc) plus a compensation for unperceived economic rent.
0
0
16. Before 2007, the majority o f land was voluntarily turned over and very few were expropriated. However, in 2007 a judicial sentence ordered that transaction costs (registration costs, income losses, moving expenses, etc) should also be paid in the case o f Administrative Expropriations. Therefore, since 2007 the Administrative Expropriation has become a more popular tool as it allows for a faster procedure, provides compensation for transaction costs, and i s agreed in consensus with the owner. Administrative Expropriations are perceived by property owners as a Voluntary Turn-over, where the money i s received in a shorter period o f time and the compensation can be higher.
17. Currently, the most frequently used procedure i s the Voluntary Takeover, with the exception o f Bogota, where the “consensual” Administrative Expropriation has brought
23 The Colombian Legislation (Law 388 of 1997) defines an exm-ouriation as an accidn urbanistica, this is, an action aimed towards land reorganization and executed by local and municipal agencies. Expropriation i s permitted as the acquisition of a property declared as o f public or social interest, as provided by the law. In the Colombian Law, expropriation i s made effective only with the payment of the compensation and the subsequent transfer o f the property.
36
about good results in terms o f efficiency and public acceptance. The remaining Participating Cities are expected to continue this trend and use this approach for land purchases.
Figure 1 : Land Acquisition Process Followed by Local Authorities in Colombia's NUTP
Consult Local Identified properties F\-'yI-{, under may affectacidn be set 1 Physical survey A Land Titles survey
Property valuation
Property Purchasing Offer
I
. _ , - . -+-. - . - . - . - . - . - . - . - . - . - . _ I - . - . j Ifundera i Decree of Urgency: I
j Administrative Expropriation
I
I
Noti expropriation F Down-payment is delivered +
I Land rights are transferred I
Property is delivered + Final payments and compensation are delivered
j If agreement i s I
i reached: ! Voluntary Take-over i
I
I
I Property is delivered I
First down-payment + $.
Land rights are transferred . Final payment and
,-. - . - . - ._ . - . - . - . - . - .t. - . - . - . - ! j If agreement i s not I
i reached: I
j Judicial Expropriation
Notify expropriation + Deposit 50% of the property
Demand property delivery by order of a judge
1 Judge determines the total
value for property and compensation
1 compensation is delivered
37
Table 1 : Risk Assessment o f Land Acquisition
Lengthy delay between earmarking of site and taking occupation: Demands for increased compensation may occur and new encroachment can occur as well.
Process can be subject to statute and policy: Process can be deemed null and void by local courts if statue or policy i s infringed
Land as Commodity Uniqueness o f each parcel - no two parcels o f land have identical attributes: this may lead to subjective valuation
S Revise that the informed dates are being met. Check that a comprehensive list o f occupants and structures i s made during the land acquisition process
Revise that processes are properly followed and that a policy checklist i s being used
M
Spatial fixity, land cannot be moved around: owner of a strategic plot may exercise monopoly and inflate prices
Use of land i s subject to various regulatory constraints and covenants: This may delay the project development; project may be hamstrung by late discoveries on the properties' allowed uses and unexpected complexities in the ownership structure of the properties.
Land i s a factor of production and generates rents: There may be disagreements regarding the valuation of land
Land can be associated with strong cultural and social ties which can stall or delay the project.
The physical extent of a land parcel may not be visibly notorious and can differ from the land titles
- M
M
S
M
M
M
Valuation i s made by an independent party. Seller can contest the price with another third party and if desired, can contest the price at a jury. Valuation i s made by an independent party If there i s no agreement over the selling price set b the Local real estate agency, price valuation can bl revised by the IGAC (National Geographi, Institute). If still there i s no agreement, a jury ma: revise the price through a judicial expropriatioi process. However, as seen in Annex 3, the majorit: of properties have been voluntarily turned ove without expropriations All properties have been identified by now. A Land Titles Survey and a Physical Survey will precede the land acquisition. Implementing agencies have a significant experience built by now as other BRT land acquisition processes already started
Valuation i s made by an independent party and the valuation rules are known. These include a thorough distinction of uses, sizes, location, accessibility etc. The Colombian Law includes compensations for unperceived economic rents in the event o f an expropriation o f a voluntary turn-over All properties have been identified by now. A Land Titles Survey and a Physical Survey will precede the land acquisition. The designs have purposely avoided acquiring land with strong Social and Cultural ties. RAPS are designed to resettle population in the same area where they lived. A Land Titles Survey and a Physical Survey will precede the land acquisition. One specific goal o f these surveys i s to reconcile actual physical extents with land titles in writing
38
During expropriations, land takings must be made for a ‘public purpose’: The purpose of the taking may be legally challenged
Land acquisition requires experts from different fields (Legal, social, land use planning, valuation, financial, management etc): This expertise may be lacking in the municipalities
39
M Revise the legal documents that reaffirm the public purpose of the project
M Pursuit an audit o f personnel where the expertise can be verified
Annex 4: Financial Management
18. as stated in the Loan Agreement, are detailed bellow.
The Borrower’s obligations with respect to Financial Management Arrangements, and
19. As part o f the Borrower’s Financial Management obligations, the Borrower (through MOT) shall, and shall cause the Implementing Entities to maintain or cause to be maintained a financial management system. Also, the Borrower (through MOT) shall, and shall cause the Implementing Entities to prepare and furnish to the Bank (through MOT) as part o f the Project Report not later than forty-five (45) days after the end o f each calendar quarter, interim unaudited financial reports for the Project covering the quarter in form and substance satisfactory to the Bank.
20. The Borrower (through MOT) shall cause the Implementing Entities to have (a) the Project’s Financial Statements audited; (b) each audit o f the Financial Statements shall: (i) cover the period o f a semester in each fiscal year o f the Borrower, commencing with the semester in the fiscal year in which the Effective Date occurs; (ii) include a special opinion, prepared under terms o f reference satisfactory to the Bank, providing assurances that the amounts disbursed under Categories (4)’ (5) and (6) correspond to Eligible Expenditures and have been fully documented through supporting documentation, in a manner satisfactory to the Bank (the audited Financial Statements for each such period shall be furnished to the Bank not later than ninety (90) days after the end o f such period); and (c) the audit o f the Financial Statements covering the last semester in the fiscal year in which the Closing Date occurs shall include a special opinion, prepared under terms o f reference satisfactory to the Bank, confirming that al l amounts (cumulative) disbursed under Categories (4), (5) and (6) correspond to Eligible Expenditures and have been fully documented through supporting documentation, in a manner satisfactory to the Bank.
2 1. the local Implementing Entities:,
Furthermore, the fol lowing Table presents the Financial Management Action Plan for
Action
Financing and eligibility o f expenses related to public services networks:
Prepare details o f refunds from the public services companies to the project IBRD accounts that financed the investments in network works
Prepare and submit on a quarterly basis the form “Ejecucion Acumulada de Redes de Servicios Publicos por Fuente de Financiacion” (Annex 15,
Responsible Agency
Megabus ’ Transcaribe Metroplus Metrolinea
Megabus Metrolinea Transcaribe Metroplus
Progress to Date
Partial Accomplishment. Reviews have been updated by technical and financial teams as of March 3 1,2009, but not yet completed.. New actions were agreed to complete them in the IFR as of June 30; 2009 that will be presented to the Bank by August 15 , 2009.
Expected Outcome
Accurate information about use of Bank funds based on technical eligibility of expenses. Improvement of the corrective actions for audit findings included in the project audit report for year 2008 to be presented to the Bank by June 30, 2009. The audit
40
Financial Operational Manual) and reconciiiation with the '
statement of accumulated investments identifying the eligible expenses under each financing source
Reconciliation of project reports with project accounting:
Reconciliation of the Statement of Expenditure (SOE), with the project accounting list of payments per financing source
Reconciliation o f the available funds reported in the statement o f accumulated investments with the balances of project Account Banks at the end o f the period
Finalize the trust fund reconciliation and book the resulting adjustments
Continue with the improvements to the financial system to run the complete accounting reports and the SOE reports
Transmetro
Megabus
Megabus Metrolinea Transmetro Transcaribe Metroplus UCP
Partial Accomplishment. Reviews have been carried out by technical and financial teams as o f December 3 1,2008 however, as of March 3 1, 2009, there are still differences. New actions were agreed to be included in the IFR as of June 30, 2009, that will be presented to the Bank by August 15,2009
Improvements have been done on a one to one basis (each local BRTS agency), as o f June 30, 2009. . Except for Metrolinea that implemented a new software in January 2009, all local Implementing Entities prepare the SOEs manually and several mistakes have occurred. Next update was agreed to be followed with the IFRs as of June 30,2009, to be delivered to the Bank by August 15 , 2009.
report of the project was delivered to the Bank in June 24, 2009. The audit opinions over the financial statements and disbursements are qualified (Le. with exceptions). The audit report i s in process to be reviewed and separate comments will be submitted to MOT Presentation of project reports supported by project accounting. The Contraloria General de la Republica issues clean audit opinion or at least corrective action improvements over the use o f Bank expenses. The audit report as of December 3 1,2009, included partial accomplishment o f internal control issues. Improve financial management processes and reporting by reducing errors related to the preparation of manual reports. Audit report to be presented to the Bank by June 30, 2009 show improvements on relative corrective actions. Updates on the audit report are included for the first action's Expected Outcome.
41
Annex 5: Procurement
22. obligations on procurement issues for this project.
This annex provides information on the procurement arrangements and the Borrower’s
General
23. Goods and Works. All goods and works required for the project and to be financed out o f the proceeds o f the Loan shall be procured in accordance with the requirements set forth or referred to in Section I o f the Procurement Guidelines.
24. Consultants’ Services. All consultants’ services required for the project and to be financed out o f the proceeds o f the Loan shall be procured in accordance with the requirements set forth or referred to in Sections I and IV o f the Consultant Guidelines.
25. Definitions. The capitalized terms used below in this annex to describe particular procurement methods or methods o f review by the Bank o f particular contracts refer to the corresponding method described in the Procurement Guidelines, or Consultant Guidelines, as the case may be.
Particular Methods of Procurement of Goods and Works
26. International Competitive Bidding. Except as otherwise provided and stated below, goods and works shall be procured under contracts awarded on the basis o f International Competitive Bidding procedures.
27. Domestic Preference. The provisions o f paragraphs 2.55 and 2.56 o f the Procurement Guidelines and Appendix 2 thereto, providing for domestic preference in the evaluation o f bids, shall apply to goods manufactured in the territory o f the Republic o f Colombia.
28. Other Methods of Procurement of Goods and Works. The following table specifies the methods o f procurement, other than International Competitive Bidding, which may be used for goods and works. The Procurement Plan shall specify the circumstances under which such methods may be used.
Procurement Method
(a) National Competitive Bidding (b) Shopping (c) Direct Contracting (with prior no objection from the Bank)
29. National Competitive Bidding. The following applies for National Competitive Bidding:
(i) Goods estimated to cost less than $250,000 equivalent per contract may be procured under contracts awarded in accordance with the provisions o f paragraphs 3.3 and 3.4 o f the Procurement Guidelines.
(ii) Works estimated to cost less than $5,000,000 equivalent per contract may be procured under contracts awarded in accordance with the provisions o f paragraphs 3.3 and 3.4 o f the Procurement Guidelines. (iii) Before issuing any invitation to bid, the Borrower, through MOT, shall prepare and furnish or cause to be prepared and furnished to the Bank for approval, appropriate model bidding documents. Once approved by the Bank, the Borrower, through MOT, shall use, or cause to be used, said model bidding documents, as approved for bidding under the Project. Any change or departure from the model approved shall require Bank's prior approval. (iv) Al l bidders, irrespective o f whether they are foreigners or Colombians, will be treated equally and, particularly, n9 preference will be granted to any bidder or group o f bidders for bid evaluation purposes. Bidders shall be allowed to submit their bids by hand or through the post office or private mailing services. There shall not be any requirement for any bidder to show evidence o f the bidder's registration in any public registry, chamber o f commerce or similar entity, whether in Colombia or elsewhere, or to appoint a representative domiciled in Colombia, unless and until such bidder i s awarded the corresponding contract. (v) Bids shall be opened in a public meeting to which bidders and their representatives shall be allowed to attend if they so wish. Date, time and place for the opening meeting shall be set forth in the bidding documents. Bid opening shall coincide with, or take place promptly after, the final date and time o f the period for bid submission stipulated in the bidding documents. (vi) Each bid shall be evaluated and the corresponding contract awarded to the responsive bidder who meets appropriate technical and financial standards o f capability and whose bid has been determined to be the lowest evaluated bid. Such determination shall be made exclusively on the basis o f the specifications, conditions and evaluation criteria stipulated in the bidding documents. If any factor additional to the amount or amounts o f each bid i s to be considered in bid evaluation, such factor or factors and the quantified manner on which they will be applied for purposes o f determining the lowest evaluated bid shall be precisely stipulated in the bidding documents. For purposes of bid evaluation and comparison, the only bid amount or amounts to be used as a factor shall be the bid amount or amounts as quoted in the corresponding bid, including correction o f arithmetic errors. (vii) The provisions o f paragraph 2.47 o f the Guidelines shall fully apply and, more specifically, bids shall not be disclosed to persons other than the persons officially charged with the task o f comparing and/or evaluating the bids while they are performing their official duties, without the corresponding bidder's written authorization. Moreover, bidders shall not be required to provide such authorization as a condition to be entitled to bid. This confidentiality requirement shall apply until the award of contract i s notified to the successful bidder. Thereafter, confidentiality o f the bids shall be limited to those bid portions for which confidentiality has been specifically requested by the bidder in question.
43
Particular Methods of Procurement o f Consultants’ Services
30. Quality- and Cost-based Selection. Except as otherwise provided in the paragraphs below, consultants’ services shall be procured under contracts awarded on the basis o f Quality and Cost-based Selection.
3 1. Other Methods of Procurement of Consultants’ Services. The following table specifies the methods o f procurement, other than Quality and Cost-based Selection, which may be used for consultants’ services. The Procurement Plan shall specify the circumstances under which such methods may be used.
Procurement Method (a) Quality-based Selection (b) Individual Consultants
I (c) Consultants’ Qualifications Selection (d) Least Cost Selection (e) Fixed Budget Selection (f) Single Source Selection (with prior no objection from the Bank)
Review by the Bank o f Procurement Decisions
32. Bank’s Prior Review. All other contracts shall be subject to Post Review by the Bank.
The Procurement Plan shall set forth those contracts which shall be subject to the
1
44
Annex 6: Cost-Benefit Analysis o f the Integrated Mass Transit Systems (IMTS) Project
Economic Analysis
33. This annex provides information on the detailed economic analysis performed for the I M T S o f the following cities: Barranquilla (Transmetro), Bucaramanga (Metrolinea) and Cartagena (Transcaribe). It also presents the methodology, data, results and several sensitivity analyses preformed. Although economic appraisals were performed for the original IMTS project and the subsequent Additional Loan24, this analysis aims to update those assessments with the latest information on the BRTS projects that have yet to start operations, as these projects have been subjected to adjustments in their design and scope.25
Methodology
34. A cost-benefit analysis (CBA) was carried out for each o f the four aforementioned projects by an independent source. Incremental analysis was performed by comparing the situation with project against the situation without project. Most information was obtained from local Implementing Entities, the D N P and the MT. All data was updated whenever possible. An effort was made to replicate the methodology followed in the P A D and Project Paper for the previous loans.
35. A 20-year planning horizon was used starting on the year in which construction work starts. The resulting cash flows were discounted using a discount rate o f 12 percent, the estimated opportunity cost o f capital in Colombia is the same one used in the previous P A D and PP.
36. The following costs were identified, including public and private costs (Table 1).
Table 1, Public and Private Costs o f Projects
37. The conversion factors (shadow prices) shown in Table 2 were used to transform market prices (financial) to economic prices. The purpose i s to eliminate from the analysis transfers between economic sectors (taxes, tariffs, subsidies) and to correct imperfections in
24 A cost-benefit analysis was performed for Bogota (Transmilenio-NQS), Pereira (Megabus) and Cartagena (Transcaribe) in the first IMTS project. The subsequent Additional Financing expanded the analysis to Barranquilla (Transmetro), Bucaramanga (Metrolinea) and Medellin-Valle de Aburra (Metroplus). 25 Most changes in scope came as a result o f negotiations between Government and local governments after new local administrations came into office at the beginning o f 2008.
45
labor and foreign currency markets. These values are the same as the ones used in the previous PAD and PP.
Engineering Designs Road Infrastructure Stations
Table 2. Conversion Factors Used to Transform Market Prices to Economic Prices
0.6800 Trained labor 0.6800 0.8395 Bus Acquisition (trunk line) 0.6920 0.9500 Bus Acauisition (feeder line) 0.7800
Item
Depots and terminals Pedestrian overpasses Maintenance Land acquisitions
Shadow Price Index
~
0.8395 Bus Operatiodfare collection operation 0.8062 1 .oooo 0.8395 Acquisition o f Old Buses
0.8395 Fare Collection System Acquisition 0.9500 1 .oooo
Item 1 ShadowPrice I Index
38. The benefits o f the project accrue to both users o f the mass transit systems and non- users, for example because the busways separate bus flows from mixed traffic, thus increasing speeds for both bus and mixed traffic. Table 3 below identifies benefits in the form of savings in travel time, operating costs, reduction o f accidents and decreased air pollution.
Table 3. Socio-Economic Benefits Identified
39. An estimation o f savings and other benefits was conducted through a comparison o f the situation with and without project and an incremental analysis. In the situation without project, an annual 1 percent increase in travel time and in travel costs is considered due to congestion derived from increased motorization and a road network that grows slower. This situation translates into an annual loss o f 0.2 km/h in average speed. An elasticity o f 1 .OO for travel time and travel cost i s assumed. Travel demand is estimated to grow at 2 percent per year. These assumptions are similar to those used in the previous P A D and PP. The socio- economic benefits identified are briefly presented herein:
40. Travel time savings in the mass transit system: Estimations o f travel time saved are calculated from operational information obtained from local Implementing Entities or the MOT. These estimations take into account BRTS ridership and increases in average operational speeds in order to determine whether there i s a benefits for users. As previously
46
explained, the updated value o f time o f US$ 1.16 per hour i s used in the analysis. Also worth noting, i s the assumption o f a phased start o f operation, where only 40 percent o f demand i s served covered in the first year; full coverage i s assumed from the second year o f operation onwards.
41. Travel time savings for private vehicles on mixed lanes: These savings stem from the segregation o f lanes for mix traffic and for bus transit, which increases overall speed. The same value o f time (US$1.16 per hour) i s used for car users to avoid biases against bus projects ,26.
42. Travel time losses during project construction were also estimated at a 15 percent decrease in average speeds. These estimates are based on information and discussions held with Bogota’s IDU.27
43. Operatin? cost savings from substituted buses: BRTS replace buses o f the existing bus systems in each city. The existing bus systems operate under inadequate arrangements that lead to outdated or technologically obsolete fleets, oversupply o f buses, inadequate maintenance, excessive number o f kilometers logged, high operating costs, and low productivities. Investment plans in each city call for the replacement o f a number o f buses, which differ accordingly.
44. Generalized costs savings due to modal shifts: Some users o f the transit systems wi l l be diverted from the use o f automobiles, due to the reduced travel time and costs. There i s evidence that this diversion occurred in the Transmilenio System in Bogoth. In this evaluation i t i s estimated that 5 percent o f the systems’ ridership come from private vehicles, a conservative estimate based on Bogota’s experience and Pereira’s experiencee2’
45. Welfare increases due to generated trips: These benefits result from better mobility opportunities generated by the mass transit systems. Without the projects these trips would not happen. This evaluation maintains that a 3.5 percent o f the systems’ riders agency, approximately 164,000 daily trips wi l l be generated due to the fare integration between the metro and other forms o f mass transit. Travel time and travel costs savings for generated trips are valued at half the value obtained for existing trips (area under the demand curve).
46. Accident cost savings: Savings emerge from better traffic conditions resulting from the segregation o f bus and mix traffic and from better incentives for bus operators when compared to the current arrangement. In order to estimate the new number o f accidents, injuries and deaths associated with public transport, indicators o f number o f accidents, injuries and deaths involving at least one bus, busetu or microbus, per million krn logged in operation by these buses, were calculated. Accident information was obtained from the
26 Although the travel time for car users should be higher, Mackie, Jara-Diaz, and Fowkes (2001) and in Uniandes-Instituto SER (2003) recommend reducing the value o f time o f car users in order to avoid biasing the evaluation in favor of projects that solely improve car-user conditions.
According to IDU, construction-time traffic management plans are expected not to drop speeds below 70
’’ Estimates in Pereira have yielded approximate 10 percent modal shift.
21
ercent of the initial values.
47
Fondo de Prevencidn Vial, an organization established by insurance companies to reduce traffic-related accidents, and the logged km from DANE’S statistics on public transport. This i s then multiplied by the km logged by the remains o f the old transit system and the km that wi l l be logged by the IMTS once it begins operation. The difference between the number of accidents with and without IMTS i s taken to be the benefit o f the IMTS. This figure i s then multiplied by the economic costs o f accidents, based on information published by the Federal Highway Agency o f the United States in 1994. Hence, the accident cost savings are the following: US$1568 per property damage, US$5005 per disabling injury, and US$361,444 per fatality.
Barranquilla Transmetro Component
47. Air pollution cost savings: Reductions in pollution result from the use o f newer and more efficient buses, the scrapping o f old buses and from a more efficient use o f the new fleet (less buses on the road, better use o f running vehicles). Emission tables adapted to Colombia are used to estimate the change in conditions. Economic equivalents are estimated as: US$ 0.714 per ton o f Carbon Oxides, US$ 103.92 per Ton o f Nitrogen Oxides, and US$ 8 1.79 per Ton o f Hydrocarbon Volatile Compounds.
Bucaramanga Cartagena Metrolinea Transcaribe
Data
Trunk roads (Km)
48. The following table presents a general description o f the projects:
13.6 8.9 15.2 Pre-Trunk roads (Km) 61.9 105.3 25.9 Stations Trunk roads (Km) I ’ 15 12 16
Terminals 1 4 1 Transfer Stations
Expected Demand when in Full Operation I 349,000 I 397,000 I 475,000 I
1 3 1
1 Additional Metro demand Sources: Local Implementing Entities, Ministry o f Transport (MOT), INCO, and National Planning Department (DNP).
Depots
48
2 4 1 Not at uade intersections 1 1 2 Pedestrian overpasses IMTS Average Speed Average Travel Distance in Public Transport Trunk
0 25 2 20.5 25 23
5.0 9.2 13
Articulated Buses Large Buses Small/Medium Buses Year Construction Start Expected initial year of Expected Year of Operation
92 15 45 95 203 280 97 150 400
2006 2006 2005 2007 2007 2006 2009 2009 2010
49. Estimated public work costs, in market prices, are shown in Table 5. These costs are exclusive o f financial costs associated with repayment o f the debt incurred by municipal government to finance the projects as these are considered to be a transfer between agents in society, and therefore should not be considered as economic costs.
Public Costs
Proiect Preuaration
Table 5. Estimated Public Work Costs
Barranquilla Bucaramanga Cartagena Transmetro Metrolinea Transcaribe
0.62 5.37 1.18 Land Acquisition Infrastructure Construction and Rehabilitation Infrastructure Maintenance
22.38 20.10 35.40
133.03 87.72 163.72
% 2.45 1.61 3.01 I Stations and Stops I 24.53 I 19.48 I 16.15 I
Terminal Stations and Bus Depots Pedestrian Ovemasses
27.57 58.13 8.87 32.14
Control Center Capital Costs Yearly Operating Costs- Local BRTS Agency 2.42
(DNP).
6.62 3.62
50. The following information was used to estimate capital and operation and maintenance costs o f the bus fleets. These estimations include replacement rates for buses in the old buses system, which are in oversupply.
Transmetro Public
Investment Terminals or Other Stations
Table 6. Estimated Private Investments
Metrolinea Transcaribe Public Public
Investment Investment
I Barranquilla I Bucaramanga I Cartagena I
Control Center 2.32 Public Investment 2.73
I Depots I 16.35 I 48.82 I 33.31 I
Fleet Provision Investment in Old Buses for Substitution Control Center Operation
68.14 74.96 122.65
27.25 29.37 21.03
0.76
1 Fare-Collection and Control System I 10.90 I 36.88 I 16.35 I
Depot Operation Fare-Collection Operation Total VOC per yr. Articulated Bus 0.06 0.13 0.07
1 Terminal or Station Operation I 1 0.93 I I
Total VOC per yr. Large Bus 0.04 0.06 0.04
49
Barranquilla Transmetro
0.04 Total VOC per yr. Small and Medium-Sized Bus
Benefits
Bucaramanga Cartagena Metrolinea Transcaribe
0.05 0.04
5 1. The following table summarizes the estimated benefits from the IMTS in each city.
Barranquilla Transmetro BenefitKOst Item
Table 7. Present Values o f IMTS Project’s Benefits (US$ Million 2008)
Bucaramanga Cartagena Metrolinea Transcaribe
185.89 Savings Vehicle Operating Costs for Transit
I User Time Savings I 73.29 I 250.28 I 183.52 I
275.66 158.48
1 Benefits for Mixed Traffic I 5.67 I 12.64 I 0.70 I
Savings in Operational and Maintenance Costs for Private Vehicles Benefits Generated Trim
3.88 18.84 1.45
1.28 4.38 3.21
I Modal Shift Savings: Carto Bus I 2.02 I 0.00 I 0.00 I
16.91 Savings from Reduced Accidentally 18.17 16.21
I
Emission Reduction Savings Losses and Costs Associated to Delays during Construction Time Total Benefits
Source: Data collected from Participating Cities
2.89 1.89 3.16
-4.00 -5.77 -0.83
287.83 576.08 365.91
Results
Barranquilla Transmetro BenefiWost Item
Bucaramanga Cartagena Metrolinea Transcaribe
I User Time Savings I 73.29 I 250.28 I 183.52 I Benefits for Mixed Traffic Savings Vehicle Operating Costs for Transit
5.67 12.64 0.70
185.89 275.66 158.48
50
I Modal Shift Savings: Carto Bus I . 2.02 I 0.00 I 0.00 I Savings in Operational and Maintenance Costs for Private Vehicles Benefits Generated Trips Savings from Reduced Accidentally Emission Reduction Savings
3.88 18.84 1.45
1.28 4.38 3.21
16.91 18.17 16.21
2.89 1.89 3.16
I Internal rate of Return I 12.30% I 22.80% I 15.33% I I Benefit/Cost Ratio I 1.02 I 1.74 I 1.23 I
Sensitivity Analysis
53. For each project a sensitivity analysis was carried to examine the project’s resilience to changes in the original parameters. The fol lowing table presents two scenarios: (i) a one-year delay in operation; and (ii) a 10 percent increase in the project’s costs.
Table 9. Sensitivity Analysis
51
References
Ardila-Gomez, Arturo 2007, “Economic Analysis o f the integrated Transit Systems in
Belli, P. et al. 1998. Handbook on Economic Analysis o f Investment Operations. The World
Transmilenio S.A. 2005. “Evaluacion Economica Proyecto Metroplus.” Equity Investment. No date. “Proyeccion del Sistema de Transporte Publico Masivo en e l
Area Metropolitana de Bucaramanga “Metrolinea.” Mackie, Jara-Diaz, and Fowkes (2001) “The Value o f Travel Time Savings in Evaluation.”
Transportation Research Part E. Pablo E. Bocarejo Ingenieros Consultores. 2005. “Diseiio Conceptual del Sistema de
Transporte Publico de Barranquilla y su Area Metropolitana Informe Final - Volumen 4 - Aspectos Financieros y Economicos.”
TTC, Systra, GGT y Duarte Guterman y Asociados: “Diseiio conceptual del Sistema Integrado de Transporte Masivo para Cartagena”.
Uniandes-Instituto SER (2003) “Evaluacion Econ6mica de Proyectos de Transporte Urbano de Pasajeros en Colombia.”
Medellin, Bucaramanga, and Barranquilla (Colombia)
Bank.
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Annex 7: Status o f Resettlement Planning and Operation
54. Implementation o f original project activities was expected to result in resettlement in all the Participating Cities. For this reason a RPF was prepared, as required by O.P.4.12 (Involuntary Resettlement). The RPF serves as the guiding instrument when Participating Cities prepare their RAPs. Thus, the responsible institutions and implementing agencies in each city have prepared and implemented resettlement plans accordingly.
55. A l l supervision missions have included a social specialist, who has specifically focused on assessing the preparation and implementation o f the RAPs. Field visits have been conducted to most areas where works are taking place in order to communicate with the affected people and to evaluate the status o f resettlement implementation. The bi-annual visits to each Participating City normally include: (i) visual and participatory observation o f the work sites, o f other affected areas, as well as visits to new resettlement areas; and (ii) unstructured talks and interviews with the affected people and with the social teams o f the implementing agency and o f the contractors.
56. A total o f 17 RAPs have been prepared and have been or are being successfully implemented in the cities participating in the NUTP (Le. Bogota-NQS; Pereira- Dosquebradas; Bucaramanga-Floridablanca-Piedecuesta-Giron; Medellin-Valle de Aburra; Barranquilla-Soledad and Cartagena). O f this total, 9 RAPs have concluded and 8 RAPs are under implementation. Furthermore, 4 additional RAPs are under preparation (for a total o f 21 RAPs). Based on this progress, and as detailed in Table 1 bellow, RAPs that have concluded are termed “Type A”, RAPs under implementation are termed “Type By’, and RAPs under preparation are termed “Type C”, as o f June 24, 2009. This typology explains the references to different types o f RAPs made throughout this Project Paper.
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Table 1-Type o f Resettlement Action Plan
City Name Status RAP Type A
I. Bogota 2. Bogota
I Plan Remedial de Gestion Social para la NQS I Plan Remedial de Gestion Social, Grupo Focal: Vendedores de
3. Bucaramanga 4. Bucaramanga
Flores de Apogeo Plan de Reasentamiento Glorieta Quebrada Seca con Cra. I 5 Plan de Reasentamiento Construccion Paso Vehicular Deprimido en la Cra. 17 con Diagonal 15
5 . Cartagena 6. Medellin
I Plan de Reasentamiento Amparo-Portal I Plan de Adquisicion Predial y Reasentamiento de Medellin
7. Medellin 8. Pereira
9. Pereira
(general) Plan de Ocupantes de Espacio Publico - Medellin Plan de Reasentamiento Proyecto Megabus Area Metropolitana del Centro Occidente - Centro y Dosquebradas Plan de Reasentamiento Proyecto Megabus Sectores del parque de Cuba y Barrio Brisas del Consota del Municipio de
Concluded Concluded
Concluded
Concluded 7
57. The Bank has generally documented very go.od implementation o f Raps. The major issue that s t i l l needs to show better progress i s resettlement o f street vendors (ocupantes del espacio publico). The conversion from the informal to the formal sector will require improved collaboration with the respective municipalities.
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58. The current status o f RAPS in each Participating Cities i s shown in the following table:
Municipality Affected Residential Affected Resettled Properties Social Units
Bogota 577 840 Pereira 118 44 1 Bucaramanga 43 47 Medellin (Envigado, 608 1,210
Affected Street Vendos
25 46 170 184
Itagui)
Cartagena TOTAL
Barranquilla
59. project to date, include:
Furthermore, some o f the key lessons learned through the implementation o f this
440 866 444 159 219 170
1,945 3,623 1,039
Inter-institutional coordination is closely linked to successful project implementation: There was an occasional lack o f cooperation between the local BRTS agency and municipality, resulting in important delays in project implementation. The project team assisted the dialogue between implementing agencies and municipalities, to promote collaboration and communication in resettlement topics. Furthermore, the institutional collaboration at the national and local level has proven to be crucial for successful project implementation. For instance, support and monitoring by the Ministry o f Transport to the social teams in each city has guaranteed capacity building and the high quality o f social management. The elaboration o f directives and regulations by the Ministry o f Transport has permitted improvements in resettlement application and created a unified approach to the principles o f the processes. All o f these have been upheld by the importance o f dynamic information and communication processes during al l phases o f resettlement, at a l l institutional levels. A consistent local resettlement framework and local resettlement presenceheams positively influence project implementation: Local Implementing Entities are required to fol low the updated RPF and RAPS taking advantage o f previously acquired knowledge and experience. Also, the significance o f local community resettlement offices in the affected areas i s key for project implementation. They mitigate adverse social impact, they identify critical issues and they allow for continuous improvement and activities. The value o f home visits to social units improves levels o f confidence, credibility and acceptance o f the resettlement process. Professional support to social units (social, legal, technical, psychological, etc) i s also central to reconstruct and improve pre-resettlement conditions. Local teams have required a sustained technical support: There was a need to provide technical support to resettlement teams over time. The project team organized a series o f capacity building efforts (two workshops, Cartagena and Pereira, regular supervisions, technical support) to strengthen the technical capabilities o f the resettlement teams. Furthermore, as project implementation progressed, there was recognition that the effeqtiveness o f the social teams i s directly related to the stability
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and professional continuity, and that their performance increases when the social team composition i s multi-disciplinary, and when there is a strong articulation between the local BRTS agency and the municipality. The actual cost of resettlement is marginal in comparison to the overall cost of the project: Each city has carried out the economic analysis related to resettlement cost to come up with the recognition that The actual cost o f resettlement (the three major parts are property costs, economic compensations and social management) i s marginal and minor in comparison to the overall cost o f the project, and that all socio economic benefits outweigh these costs. Also, in terms o f lessons learned, economic cash compensations are necessary in the resettlement processes and facilitate a higher rate o f acceptance.
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Annex 8: Status o f Environmental Management Plans
60. According to OP4.0 1 , al l participating local Implementing Entities have prepared EMPs, as agreed at the time o f the initial project appraisal. EMPs have been accepted by the Bank, and fol low the Environmental Management Framework- “General Environmental Guidelines for the Design, Construction and Fol low up o f the IMTS Project in Colombia”.
61, All Bank supervision missions include an environmental specialist, who evaluates implementation o f EMPs in on-going works, and who screens potential environmental impact o f new works to be contracted, in order to determine if the current E M P approach i s s t i l l consistent with the Bank’s environmental safeguard policies. Bank missions normally include field visits and interviews with the personnel in charge o f environmental management at the technical supervision contractor and with the personnel in charge o f handling social issues and relations with the affected communities. EMPs require the constructor to establish a center o f information and attention to the community at stake.
62. benefit from this Additional Loan, i s as follows:
The current status o f EMPs in each o f the Participating Cities, which will potentially
0 Medellin: EMPs have been produced and have been satisfactorily implemented by the contractors for the c iv i l works in the following segments: (i)Berlin, (ii) Prado, (iii) Sevilla, (iv) PiAuela, (v) Palos Verdes, (vi) Carrera 44, (vii) Bel& y Antejardines de Bel& and (viii) Av. Ferrocarril. The works have affected some trees especially appreciated by the communities, for which Metroplus has done a very good job in socializing the removal, elimination, and transfer o f the trees, with the affected community. The end result i s that the community has accepted the change, and social problems have been avoided. Specific measures for the new works at the municipalities o f Itagui and Envigado are being produced, and will be part o f the bidding documents. Barranquilla: EMPs have included specific environmental assessment and measures for the sections on (i) Avenida Murillo, (ii) Par Vial, and (iii) Olaya Herrera. Some issues concerning the E M P implementation were identified during the Mid-Term Review mission, with relation to closing working areas in dense downtown areas, and to coordinating with the utility contractors performing parallel works in the affected areas. Specifically, the problems were associated to the lack o f acceptance o f the E M P measures by the communities living and working at the city’s central areas. Stakeholders are not used to fo l low pedestrian traffic directions, and many times invade the working areas, removing separation and safety devices and materials. This i s a common problem to central areas which in general have finalized works. Bucaramanga: specific assessment and measures have been included in the E M P for the f i rst c iv i l work contracts that included the sections: (i) Quebrada Seca to La Rosita, (ii) La Rosita to Calle 61 and (iii) Calle 61 to Provenza. Also, specific sections o f the EMP were developed for the second and third c iv i l works contracts that include the fol lowing sections: (i) La Virgen to Quebrada Seca, (ii) Provenza to CaAaveral, (iii) CaAaveral to Papi Quiero PiAa, and (iv) UIS to Quebrada Seca.
0
0
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0 Cartagena: EMPs have been prepared and implemented for the f i rs t sections already finalized, and for the section Amparo-Bazurto, which i s under construction. As with other central and highly populated areas, there have been problems with the community and the traffic management plan. Also, one o f the sections (Le. Amparo- CuatroVientos) has presented slow implementation due to the lack o f capacity o f the contractor, which has already been affected by remuneration discounts and penalties. The Bank and the M O T have been following the works closely to ensure that implementation i s finalized in time and in better compliance with the EMP implementation. Pereira: All EMPs have been successfully implemented as agreed. The largest works, related to the Parque Cuba transfer station, have been properly socialized and accepted by the community. Trees removed are being compensated, and some birds nesting transference has been properly managed in association with the city’s zoo. BogotB: Works on the N Q S corridor were properly implemented and completed, in accordance with the E M P accepted by the Bank.
0
63. The Environmental Management Framework has proven an accepted tool, and has been applied throughout the metropolitan areas participating in the NUTP. Bogota has continued to fol low IDU’s guidelines, which were the basis for developing the Environmental Management Framework for the rest o f EMPs in the program. Besides, regional and national environmental legislation must be complied with and al l required environmental licenses and permits (Le., the license to dispose construction waste in a pre-selected landfill) need to be obtained and validated throughout.
64. Considering the relatively l ow environmental impact o f the works financed through the Bank’s IMTS Project -and through the proposed Second Additional Loan-EMPs will continue to be the main mechanism to mitigate potential environmental impacts arising during construction.
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Annex 9: Expected Outcomes for Participating Cities
65. The targeted outputs for the IMTS are subject to change according to the modifications that each project, in each Participating City, has had over time. The scope o f each project participating in the NUTP i s initially structured according to the CONPES documents that are issued by DNP. These documents represent an initial agreement between the national and the local Government regarding the physical and operational characteristics o f each project. To participate in the NUTP, each city was issued a CONPES document for their respective BRTS project; however, if changes occur during project implementation, these changes may be recorded and recognized in subsequent CONPES documents.
66. Under this framework, the NUTP has increased i t s geographic and physical scope, as described throughout this document. Due the evolving nature and scope o f the NUTP, each Bank operation has adopted and reflected such changes. As such,,the original project (Loan 7231-CO; signed 2004) only included the cities o f Bogota, Pereira and Cartagena. Afterwards, the First Additional Loan (Loan 7457420; signed 2007) featured a geographical scale-up with the addition o f Barranquilla, Bucaramanga and Medellin to the NUTP. The proposed Second Additional Loan i s associated with a physical scale-up o f the project in the Barranquilla, Bucaramanga, Cartagena and Medellin. These gradual changes in project scope have similarly changed the expected outputs or targeted goals related to each project. Table 1 presents a detailed account o f the output indicators for each city:
City Output indicators
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Pre-trunk and feeder lines (km) Terminals/Garages (num) Boarding Stations (num)
42 25.9 67.9 1 1 2
23 23
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Segregated trunk line (km) 47.4 Pre-trunk and feeder lines (km) 44
TerminaldGarages (num) 4 Boarding Stations (num) 84
34.6 6.3 88.3
115.4 96.25 255.65 7 1 12
98 46 22 8