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Document of

The World Bank

FOR OFFICIAL USE ONLY

Report No: 65061-LS

RESTRUCTURING PAPER

ON A

PROPOSED RESTRUCTURING

FOR AN

INTEGRATED TRANSPORT PROJECT

CREDIT 4237-LSO AND GRANT H255-LSO

(BOARD APPROVAL DATE: OCTOBER 19, 2006)

AND

ADDITIONAL CREDIT AND GTRANT

CREDIT 4827-LS AND GRANT H623-LS (BOARD APPROVAL DATE: SEPTEMBER 16, 2010)

TO THE

KINGDOM OF LESOTHO

AUGUST 27, 2012

Transport Sector Country Department AFCS1 Africa Region

This document has a restricted distribution and may be used by recipients only in the performance of their official duties. Its contents may not otherwise be disclosed without World Bank authorization.

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ABBREVIATIONS AND ACRONYMS

AF Additional Financing BORR Borrower DLP Defect Liability Period EC European Commission ECDF European Commission Development Fund FA Financing Agreement FY Fiscal Year GIS Geographic Integrated System IDA International Development Association IDAT International Development Association Grant IMT Intermediate Means of Transport ISR Implementation Status and Results Report ITP Integrated Transport Project LS Lesotho MoP Memorandum of Understanding MoPWT Ministry of Public Works and Transport PDO Project Development Objective PIU Project Implementation Unit PP Project Paper PPF Project Preparation Facility SDR Special Drawing Rights SIL Specific Investment Loan

Regional Vice President: Makhtar Diop Country Director: Asad Alam

Sector Director Jamal Saghir Sector Manager: Supee Teravaninthorn

Task Team Leader: Fang Xu

LESOTHO INTEGRATED TRANSPORT PROJECT

P075566

CONTENTS

DATA SHEET .................................................................................................................... I SUMMARY ....................................................................................................................... 1 PROJECT STATUS ......................................................................................................... 2 PROPOSED CHANGES .................................................................................................. 4 ANNEX 1: RESULTS FRAMEWORK AND MONITORING .................................... 7 ANNEX 2: REALLOCATION AND PROJECT COST ............................................. 15 ANNEX 3: WORK PLAN FOR ITP THROUGH JUNE 30, 2014............................. 17

i


DATA SHEET

Restructuring Restructuring Type: Level One Last modified on date : 08/23/2012

1. Basic Information Project ID & Name P075566: LS-Integrated Transport SIL (FY07) Country Lesotho Task Team Leader Fang Xu Sector Manager/Director Supee Teravaninthorn / Jamal Saghir Country Director Asad Alam Original Board Approval Date 10/19/2006 Original Closing Date: 06/30/2011 Current Closing Date 06/30/2012 Proposed Closing Date [if applicable] 06/30/2014 EA Category B-Partial Assessment Revised EA Category N/A EA Completion Date 11/15/2005 Revised EA Completion Date N/A

2. Revised Financing Plan (US$m)Source Original Revised BORR 5.20 16.20 ECDF 9.50 9.50 IDA 11.20 19.70 IDAT 12.30 18.80 Total 38.20 64.20

3. Borrower Organization Department Location

Kingdom of Lesotho Lesotho

ii

4. Implementing Agency Organization Department Location

Ministry of Public Works and Transport

Lesotho

5. Disbursement Estimates (US$m) Actual amount disbursed as of 08/23/2012 25.91

Fiscal Year Annual Cumulative 2013 4.50 30.41 2014 8.09 38.50 Total 38.50

6. Policy Exceptions and Safeguard Policies Does the restructured project require any exceptions to Bank policies? N Does the restructured project trigger any new safeguard policies? If yes, please select from the checklist below and update ISDS accordingly before submitting the package.

N

7a. Project Development Objectives/Outcomes Original/Current Project Development Objectives/Outcomes The project development objective is to enhance prospects for economic growth in the Recipient's territory through provision of an efficient and integrated transport system that is safe and affordable to improve access to services and market opportunities for all across the Recipient's territory.

7b. Revised Project Development Objectives/Outcomes Improve connectivity in selected transport networks in the Recipient’s territory.

1

LESOTHO

INTEGRATED TRANSPORT PROJECT

RESTRUCTURING PAPER SUMMARY 1. This Restructuring Paper seeks approval of the Executive Directors to restructure the Lesotho Integrated Transport Project (ITP); and additional credit and grant. The proposed changes to the Lesotho Integrated Transport Project (ITP) (original Credit 4237-LSO and Grant H255-LSO, and Additional Financing (AF), Credit 4827-LS and Grant H623-LS) have been requested by the Kingdom of Lesotho’s Ministry of Finance through its letters dated August 10, 2011, August 15, 2011 and March 27, 2012. These changes are as a result of a situation which led to the financing of ineligible expenditures due to the debarment of a contractor. The proposed restructuring includes the following: (i) modification of the project development objective (PDO) and the results framework; (ii) reallocation of the credit and grant proceeds; and (iii) retroactive extension of the closing date. 2. Below is a summary of the proposed changes:

(i) Refinement of the PDO and Results Framework. The PDO and Results Framework (RF) will be refined to “improve the connectivity in selected transport networks in the Recipient’s territory”. The PDO and RF will be refined to align with the project interventions and to reflect changes under the proposed restructuring.

(ii) Reallocation of funds under ITP AF (Credit 4827-LS and Grant H623-LS). The total amount of the AF provided by the International Development Association (IDA) and approved on September 16, 2010 is US$15 million. This AF was originally planned to finance: (a) US$10 million for the completion of the balance of earthworks, sub-base, and pavement surfacing of the Senqu-Senqunyane bridges (defined as Stage 2 works) and (b) US$5 million for the periodic maintenance of Teyateyaneng-Mapoterng (27 km) and Nyenye-Makhoroana (37 km) junction roads. Subsequent to the approval of the AF, the Bank determined that the Stage 2 works could not be financed if they were to be completed by the selected contractor because the contractor had been debarred. Consequently, the Government of Lesotho (Government) now proposes to allocate the IDA resources as follows: a. Bank’s financing of the construction of the Senqu-Senqunyane

bridges will be limited to Stage 1 works. About US$4.35 million will be reallocated to financing already completed Stage 1 works previously funded by the Government. The Government will provide invoices for eligible expenditures to offset the previous payments for ineligible

2

expenditures. The Stage 1 works have been completed and the contractor has been fully paid, such reallocation will not involve any further funds flow to the contractor. This change will increase IDA’s contribution to the works from the current level of 42 percent to 63 percent (still below the 80 percent ceiling financing percentage set out under the original financing for the project.) 1

b. Rehabilitation of the Nyenye-Makhoroana road. About US$ 5.65 million will be reallocated to the rehabilitation of Nyenye-Makhoroana road from resources originally allocated to the construction of the Senqu-Senqunyane bridges. The AF included financing for periodic maintenance of two junction roads (Teyateyaneng-Mapoterng and Nyenye-Makhoroana). Both were heavily damaged by extensive floods in March 2011 and consequently require complete rehabilitation instead of the envisaged periodic maintenance works. The Teyateyaneng-Mapoterng road works have been fully financed by the Government and IDA financing will be used exclusively for the Nyenye-Makhoroana road.

(iii) Retroactive Extension of project closing date. The project closing date

under both the original Financing Agreement and the AF Financing Agreement is proposed to be extended retroactively by two years from June 30, 2012 to June 30, 2014, bringing the cumulative extension to three years. This is to allow adequate time for the Bank's continued supervision of the project and for the completion of the Nyenye-Makhoroana road rehabilitation works. The proposed extension is consistent with OP/BP 13.30 in that: (i) the PDO continues to be achievable; (ii) the performance of the borrower and implementing agency is satisfactory; and (iii) the Government has prepared a specific action plan acceptable to the Bank to complete the project.

PROJECT STATUS 3. The original financing for the ITP was approved on October 19, 2006, for an amount of Special Drawing Rights (SDR) 15.9 million (Credit SDR7.6 million and Grant SDR8.3 million) (US$23.5 million equivalent), and was declared effective on February 22, 2007. An AF (Credit 4827-LS and Grant H623-LS) in the amount of SDR10.2 million (Credit SDR5.8 million and Grant SDR4.4 million) (US$15.0 million equivalent) was approved on September 16, 2010, and became effective on November 24, 2010. The ITP closed on June 30, 2012. The original PDO was to “enhance prospects for economic growth in Lesotho through provision of an efficient and integrated transport system that is safe and affordable to improve access to services and market opportunities for all across Lesotho.”

1 Under the project, the Government paid 100% of 11 out of 21 invoices pertaining to the Stage 1 works and submitted only 10 invoices to the Bank, which were financed at the 80% ratio established under the Financing Agreement.

3

4. The project has three components as follows: Component A - Institutional Reform policy for the Transport Sector; Component B - Infrastructure Development; and Component C - Project Management, Monitoring and Evaluation. 5. The progress towards achieving the ITP PDO has been, overall, satisfactory. The project outcome targets, measured by key outcome indicators, are being achieved as planned. Most of the project activities have been substantially completed. The Implementation Status and Results Report ratings for the project have been satisfactory throughout the project, however the latest project implementation rating was downgraded to moderately satisfactory. This downgrade was due to the fact that some project activities, e.g, training of Road Directorate Staff and the rehabilitation of the Nyenye-Makhoroana road will take longer than originally planned. These delays are a result of the additional works required after the floods of March 2011 and will also allow the Bank to continue to supervise the Government’s efforts to address critical construction quality issues which came to light through the Bank’s normal supervision. Specifically, issues related to the Senqu-Senqunyane works (see paragraph 8 below) were identified and as a result additional remedial works are being undertaken. The need to ensure proper completion of the works is one of the reasons for the proposed extension of the project closing date. The total amount disbursed to date is US$25.91 million. There are no outstanding interim financial reports or annual audit reports, and other than the event which led to the financing of ineligible expenditures due to the debarment of a contractor (which this restructuring is intended to address), the project has been implemented in an acceptable manner from a fiduciary safeguards perspective. 6. Component A - Institutional Reform Policy for the Transport Sector, is co-financed by the European Commission, under Trust Fund No. 070805. The Roads Directorate established under the ITP is functional and is currently staffed with more than 110 staff recruited through open competition. A total of 20 road safety workshops and campaigns have been held, more than 700 government drivers have been retrained, and the integration of road safety education into school curriculum is on-going. 7. Component B - Infrastructure Development. All major civil works have been substantially completed. The resealing works, Km 67-107, have been completed. The upgrading of Mantsonyane - Lesobeng Road section 8-20km is complete. The upgrading of the Mantsonyane - Lesobeng Road section 0-8km and the rehabilitation of the Nyenye-Makhoroana road, currently at the stage of procurement of design and supervision consultant, are the two on-going civil works activities. 8. One of the major activities supported under Component B of the ITP was the construction of Senqu-Senqunyane bridges with associated road works. This activity, including both the Stage 1 and the Stage 2 civil works, was substantially completed in June 2011, which marked the commencement of the Defect Liability Period (DLP), during which the contractor is obliged to correct all identified defects included in the “snag list,” a list of outstanding items prepared by the supervision consultant. During the joint Client/Bank supervision mission to the project site, held in October 2011, several defects were identified by the Bank’s team which were not originally included in the "snag list", including a major and unacceptable settlement of the road at the entrance of Senqu Bridge. The Government has committed itself to ensure that the contractor corrects

4

all defects. To date, the following actions have been taken by the Government in this regard: the "snag list" was revised to include those defects and reissued to the contractor; the DLP was extended by four months to October 2012. Based on reports received by the Bank from the Government, progress has been made in implementing the correction program. The Bank maintains close supervision of the implementation of the required corrections, and it may request the Government to call for an independent technical audit if deemed necessary. 9. Component C – Project Management, Monitoring and Evaluation. The ITP Project Management Office is coordinating and monitoring the implementation of the project. Quarterly and annual progress reports are being submitted to the World Bank on time. PROPOSED CHANGES Refinement of the PDO and Results Framework 10. The PDO will be refined to “improve the connectivity in selected transport networks in the Recipient’s territory”. The PDO and RF will be refined to align with the project interventions and to reflect changes under the proposed restructuring. Reallocation of funds under ITP AF: Reallocation of US$4.35 million AF Proceeds to the Stage 1 works. 11. The Senqu-Senqunyane bridges and associated road works were opened for bids in 2007. Due to higher than expected bid prices in 2007, the Government, with IDA’s concurrence, decided to divide this contract into two stages: Stage 1 in the amount of approximately $22 million and Stage 2 in the amount of approximately $10 million. A contract for the Stage 1 works, in the amount of approximately $22 million, was signed in February 2008 between the Government and the Contractor. Such contract included a memorandum of understanding (MoU) which provided that the contractor would undertake the Stage 2 works using the same rates used for the Stage 1 works. Subsequently, effective January 2009, the Contractor was debarred by the Bank. 12. In early 2010, following the request of the Government, the Bank’s team initiated the preparation of the AF (Credit 4827-LS and Grant H623-LS) with the plan to allocate: (i) US$10.0 million for Stage 2 works; and (ii) US$5.0 million for the periodic maintenance of Teyateyaneng-Mapoterng and Nyenye-Makhoroana junction roads. 13. Upon approval of the AF on September 16, 2010 (declared Effective on November 24, 2010), the Contractor initiated the implementation of the Stage 2 works, in part due to the terms of the MoU. In December 2010, the Government submitted to the Bank four invoices pertaining to the Stage 2 works to the Bank for payment, under the assumption that the approval of the AF enabled submission of invoices for Stage 2 works. Since the invoice documentation did not indicate that the claims were for Stage 2 works, and since at the time there was sufficient balance left under the original contract for Stage 1 in the Bank’s system, the Bank made disbursement in the amount of approximately US$4.35 million.

5

14. When a contractor has been debarred by the Bank, the Bank will not finance any new contract, or any amendment or addendum introducing a material modification to any existing contract that was signed with a suspended or debarred firm or individual on or after the effective date of suspension or debarment. A review conducted by the Bank in March 2011 determined that the addendum for Stage 2 works was a material amendment to a contract with a debarred company and therefore not eligible for Bank financing. However, since debarment came after the signing of the contract for the Stage 1 works, the contractor remains eligible for payments for such Stage 1 works. The Government was informed of the Bank’s decision not to finance any Stage 2 works carried out by the contractor. 15. After the addendum was rejected by the Bank in March 2011, and the already disbursed US$4.35 million became an ineligible expenditure, as per OP 122, IDA initially sought a refund from the Government of the erroneously disbursed amount, but later accepted the Government’s request to provide substitute invoices for eligible expenditures incurred for Stage 1 works, which had been previously fully paid by the Government3. Under the proposed allocation, IDA financing for the eligible Stage 1 contract would be 63% (US$14.75 million). Reallocation of Funds under ITP AF: Rehabilitation of the Nyenye-Makhoroana Road 16. The Government has requested the reallocation of US$5.65 million from the disbursement category associated with the construction of Senqu-Senqunyane bridges to the disbursement category associated with the road rehabilitation works under Component B of the AF. Due to the extensive floods in Lesotho in March 2011, both Teyateyaneng-Mapoterng and Nyenye-Makhoroana junction roads were heavily damaged and consequently require a complete rehabilitation instead of the initially foreseen and planned periodic maintenance works. Given that the cost of the rehabilitation works for the flood damaged roads is much higher than for periodic maintenance work, it is proposed that US$5.65 million of IDA proceeds of the ITP AF, originally planned for the completion of the Stage 2 of Senqu-Senqunyane civil works, be reallocated to the rehabilitation of the Nyenye-Makhoroana road. The total IDA allocation to the rehabilitation of the Nyenye-Makhoroana road will thus amount to US$10.65 million, which includes the proposed reallocation amount of US$5.65 million from the AF and the originally allocated US$5.0 million.

2 OP 12, Paragraph 8 states that ‘If the Bank at any time determines that any amount withdrawn from the loan account has been used to finance expenditures that are not eligible for financing pursuant to the provisions of the Loan Agreement, the Bank requires the borrower to refund the amount to the Bank, or, at the Bank’s discretion, to provide substitute documentation evidencing other eligible expenditures under the operation.” 3 In part because of the existence of the MoU, the Government chose to fully finance Stage 2 works with their own resources. Given their limited fiscal space, the refunding of US$4.35 million was therefore even more difficult and Government instead proposed to submit alternative invoices for eligible expenditures already incurred for Stage 1 works.

6

17. Furthermore, and as a result of the substantial change of the required type of works and the emergency nature of the current situation whereby the villages along Teyateyaneng-Mapoterng road were totally cut off from the other parts of the country, the Government has already allocated funds from its budget for the required rehabilitation works and has engaged a consultant for the design and supervision of the civil works. Reallocation of Funds under ITP AF: Reallocation among Disbursement Categories 18. In addition to the reallocation of funds described above, it is also proposed to reallocate funds among different categories under the ITP original FA (Credit 4237-LSO and Grant H255-LSO), for the following reasons: (i) additional project management resources are needed as the project will have a later closing date; (ii) there were higher bid prices as compared to original estimate for some consultancy services and civil works contracts; and, (iii) most of the goods planned to be purchased under the ITP have already been procured under the Project Preparation Facility (PPF). For the detailed reallocation information and the update project cost after reallocation, please refer to Annex 2. Retroactive Extension of Closing Date 19. Given the substantive change of scope of the required works and the time required for their design and implementation, it is proposed that the project closing date be extended by two years, from June 30, 2012 to June 30, 2014, to allow adequate time for the Bank’s continuous supervision of all activities under original ITP and for the completion of the intended works included in the rehabilitation of the Nyenye-Makhoroana (37 km) road under AF. The total cumulative extension of the project closing date will be three years. The implementation plan for the new schedule is attached as Annex 3. Amendment of FAs 20. The FAs in respect of both the AF Credit 4827-LS and Grant H623-LS, and the ITP Credit 4237-LSO and Grant H255-LSO will then be amended to reflect the proposed changes.

7


ANNEX 1: RESULT FRAMEWORK AND MONITORING

TABLE 1: RESULTS FRAMEWORK

Revisions to the Results Framework Comments/ Rationale for Change

PDO

Current (PAD) Proposed Enhance prospects for economic growth in Lesotho through provision of an efficient and integrated transport system that is safe and affordable to improve access to services and market opportunities for all across Lesotho.

Improve connectivity in selected transport networks in Lesotho.

Refinement of the PDO consistent with project intervention.

PDO indicators

Current (Project Paper) Proposed change* Roads in good and fair condition as a share of total classified roads. Supplemental information: (i) Size of the total classified network.

No change

Average travel cost to social services and markets for beneficiary populations in targeted areas along the South Eastern Corridor for emergency and regular trips is reduced by 40% in 2012.

Reduction in average travel cost in targeted project areas.

Refinement of the indicator wording. The end target has been achieved.

Share of rural population with access to an all season road (within project area) Supplemental information: (i) Number of rural people with access to an all-season road.

% of rural population with access to an all season road (within the project area)

Refinement of the indicator wording. The end target has been achieved.

Direct project beneficiaries (number), of which female (percentage).

No change

Number of road safety workshops and campaigns undertaken.

Dropped from PDO indicator Moved to intermediate results indicator

Intermediate Results indicators

Current (Project Paper) Proposed change* COMPONENT A - Road sector management is rationalized, sustainable maintenance financing is achieved, and sector management capacity is improved. Sub-sector Transport policies are reformulated Roads Directorate within the No change

8


Ministry of Public Works and Transport established by December 2008. Administrative expenses as total expenditures of Road Fund be no more than 12% by 2010.

Revised Administrative expenses as total expenditures of Road Fund be no more than 12% by 2014.

The end target has been updated based on the progress achieved and the extension of the closing date.

Recruitment of staff to the Road Fund be in accordance with the Legal Notice for Road Fund Regulation 2005.

No change The end target has been achieved.

Periodic and routine maintenance of the national road network is 78% and 90% funded from road user charges by 2008 and 2010, respectively.

No change

Road Safety Council is established and functioning in accordance with agreed principles.

No change

Establishment of integrated Geographic Integrated System (GIS) database and system used as a planning tool.

No change

An urban transport planning and transport study is elaborated.

No change

An integrated policy and strategic roadmap for aviation, rail, Intermediate Means of Transport (IMT) and water transport is developed.

No change

Number of road safety workshops and campaigns undertaken.

New indicator Originally as PDO indicator, now as an intermediate indicator.

COMPONENT B - Targeted sections of the road network are improved through construction, periodic maintenance, rehabilitation, and upgrading. Two high-level bridges constructed on Senqu-Sequnyane rivers.

No change End target achieved

Roads rehabilitated, non-rural (Oxbow-Mokhotlong Road; Nyenye-Makhoroana and Teyateyaneng-Mapoteng Junction Road).

Roads rehabilitated, non-rural Oxbow-Mokhotlong Road and Nyenye-Makhoroana road.

Due to extensive floods in Lesotho, the resealing of the Teyateyaneng-Mapoterng and Nyenye-Makhoroana will be replaced by the rehabilitation of Nyenye-Makhoroana (37 km). The Oxbow-Mokhotlong Road has been completed.

Roads upgraded, rural (Mantsonyane-Lesobeng Road).

No change

Senqu/Senqunyane area No change Activities completed

9


footbridges constructed and IMT access improved. HIV/AIDS interventions undertaken (distributing brochures, education, providing cell phone radio) stretches to local communities.

No change Activities completed

COMPONENT C - Facilitating of Project activities, institutional reform change and monitoring & evaluation. Project Management office reports annually on transport sector with a focus on progress towards project objectives and results indicators.

No change

Monitoring and evaluation system established and functioning.

No change

Timely and satisfactory audit report of Project accounts and Road Fund accounts.

No change

10

TABLE 2: REVISED PROJECT M&E ARRANGEMENTS

Project Development Objective (PDO):

Improve connectivity in selected transport networks in Lesotho

PDO Level Results Indicators C

ore

Unit of Measurement

Baseline Original Project Start (2006)

Calendar year

Progress To Date (2011/2)

Calendar year

Cumulative Target Values Calendar year

Frequency Data Source/ Methodology

Responsibility for Data

Collection Comments

2012 2013 2014

1. Roads in good and fair condition as a share of total classified roads Supplemental information: (i) Size of the total classified network.

Percentage

Kilo-meters

27% good

38% fair

2913

38% good

40% fair

2927

38% good

40% fair

2927

39% good

43% fair

2927

39% good

46% fair

2927

LRMS LRMS

Ministry of Public Works and Transport

(MoPWT)

The conditions of primary and secondary roads were estimated using the LRMS/PMS, Road Directorate Survey in 2011.

2. Reduction in average travel cost in targeted project areas..

M

Percentage

1,500M

900M reduced

by 40% in 2010

900M reduced by 40%

900M reduced by 40%

900M reduced by 40%

Yearly assessment

Baseline survey

followed up with annual monitoring surveys in sentinel villages

MoPWT

Analysis of data of the Interim Social Impacts Study of the Senqu and Senqunyane Civil Works will be available end of May 2012.

3. Share of rural population with access to an all season road (within project area) Supplemental information: (i) Number of rural people with access to an all-season road.

Percent

age

2.50%

9,372

42%

9,372

42%

9,372

42%

9,372

42%

9,372

Yearly assessment

GIS MoPWT The end target has been achieved.

11

Beneficiaries

Direct Project Beneficiaries, Of which female

Num-ber

%

5 (Number

of villages as number

of population

was not available

at ITP appraisal)

9,372(estimated)

52%

9,372

52%

9,372

52%

9,372

52%

Yearly assessments

Census village list (Bureau of Statistics)

MoPWT

The direct beneficiaries will be estimated from the Interim Impact Study and analysis of data will be available by end of May 2012.

12

Intermediate Results and Indicators

Intermediate Results Indicators

Cor

e

Unit of

Measuremen

t

Baseline Original Project Start

(2006) Calendar year

Progress To Date

(2011/2012)

Calendar year

Target Values Calendar year



Collection Comments

2012 2013 2014

Intermediate Result 1 COMPONENT A: Road sector management is rationalized, sustainable maintenance financing is achieved, and sector management capacity is improved. Sub-sector Transport policies are reformulated 1. Roads Directorate within the MoPWT established by December 2008.

Yes/ No

No Yes Yes Yes Yes Annual reports

MoPWT The end target has been achieved.

2. Administrative expenses as total expenditures of Road Fund be no more than 12% by 2014.

Percen

tage 25% 13% 12% 12% 12%

Annual audited

financial statements

MoPWT

3. Recruitment of staff to the Road Fund be in accordance with the Legal Notice for Road Fund Regulation 2005.

Yes/ No

None Yes Yes Yes Yes RF Annual

report MoPWT

The end target has been achieved.

4. Periodic and routine maintenance of the national road network is 78% and 90% funded from road user charges by 2008 and 2010, respectively.

Percen

tage 72% 87% 87% 88% 90%

RF Annual reports

MoPWT

5. Road Safety Council is established and functioning in accordance with agreed principles.

Yes/ No

No Yes Yes Yes Yes Regular reports


6. Establishment of integrated GIS database and system used as a planning tool.

Yes/ No

No Yes Yes Yes Yes MoPWT The end target has been achieved.

7. An urban transport planning and transport study is elaborated.

Yes/ No

No Yes Yes Yes Yes Study MoPWT

13



Cor

e

Unit of

Measuremen

t



Progress To Date

(2011/2012)

Calendar year




Collection Comments

2012 2013 2014

8. An integrated policy and strategic roadmap for aviation, rail, IMT and water transport is developed.

Yes/ No

No Yes Yes Yes Yes Roadmap MoPWT

9. Number of road safety workshops and campaigns undertaken.

Num-

ber 0 20 20 20 20

Road Safety reports

Road Safety training /

campaign / workshop


Intermediate Result 2 COMPONENT B: Targeted sections of the road network are improved through construction, periodic maintenance, rehabilitation, and upgrading

9. Two high-level bridges constructed on Senqu-Senqunyane rivers.

Yes/ No

None Yes Yes Yes Yes

Annual reports and

end of Project Report

MoPWT M&E

Project Implementation

Unit (PIU)

Bridges constructed

11. Roads rehabilitated, non-rural (Oxbow-Mokhotlong Road

Kilo-

meters 0 km 40 km 40 km 40 km 40 km

The end target has been achieved.

12. Roads upgraded, rural (Mantsonyane-Lesobeng Road).

Kilo-


MoPWT M&E

PIU

13. Senqu/Senqunyane area footbridges constructed and IMT access improved.

Yes/ No

None Yes Yes Yes Yes MoPWT

M&E PIU

14. Roads rehabilitated, non-rural - (Nyenye-Makhoroana).

Kilo-


MoPWT M&E

PIU

14



Cor

e

Unit of

Measuremen

t



Progress To Date

(2011/2012)

Calendar year




Collection Comments

2012 2013 2014

15. HIV/AIDS interventions undertaken (distributing brochures, education, providing cell phone radio and stretches to local communities).

Yes/ No


M&E PIU

Intermediate Result 3 COMPONENT C: Facilitating of Project activities, institutional reform change and monitoring & evaluation

16. Project Management office reports annually on transport sector with a focus on progress towards project objectives and results indicators.

Yes/ No

None Yes Yes Yes Yes

Audit reports, annual reports

MoPWT M&E

PIU

17. Monitoring and evaluation system established and functioning.

Yes/ No


M&E PIU

18. Timely and satisfactory audit report of Project accounts and Road Fund accounts.

Yes/ No


M&E PIU

15


ANNEX 2: REALLOCATION AND PROJECT COST

Table 1: Proposed Reallocation of Funds under ITP AF (Credit 4827-LS and Grant H623-LS)

Category of Expenditure

Allocation (in SDR) % of Financing

Current Revised Current Revised Credit Grant Credit Grant

(1) Works and consultants’ services for Part 2(b) of the Project

4,100,000 2,700,000 2,820,000 0

100% 100%

(2) Works and consultants’ services for Part 2(e) of the Project

1,700,000 1,700,000 2,980,000 4,400,000

80% for works

100% for

consultants’ services

80% for works

100% for

consultants’ services

Total 5,800,000 4,400,000 5,800,000 4,400,000

For the ITP (Credit 4237-LSO and Grant H255-LSO), the following reallocation is proposed:

Table 2: Proposed Reallocation of Funds under ITP (Credit 4237-LSO and Grant H255-LSO)

Category of Expenditure

Allocation (in SDR) % of Financing

Current Revised Current Revised Grant Credit Grant Credit

Civil works 3,600,000 7,600,000 3,957,884 7,600,000 80 80

Goods 400,000 152,234 100 100

Consultancy Services and Training

2,200,000 2,908 ,437 100 100

Operating Costs 400,000 440,627 100 100

Refunding of Project Preparation

1,100,000 840,818

Amount payable

pursuant to Section 2.07

of the General Conditions

Amount payable

pursuant to Section 2.07

of the General Conditions

Unallocated 600,000 0

Total 8,300,000 7,600,000 8,300,000 7,600,000

16

Table 3: Project Cost Project Costs (US$m.)

Components/Activities CURRENT PROPOSED

Component A - Institutional Reform Policy for the Transport Sector

0.54 0.62

Component B - Infrastructure Development 32.00 32.18

1. Construction of the Stage II of Senqu-Senqunyane Bridges and Civil Works

10.00 0.00

2. Construction of the Stage I of Senqu-Senqunyane Bridges and Civil Works

9.40 13.75

3. Rehabilitation of 37 km Nyenye – Makhoroana Road

5.00 10.65

4. Other infrastructure investments 7.60 7.78

Component C - Project Management, Monitoring and Evaluation.

2.78 3.31

Others (PPF and contingencies) 3.18 2.39

Total 38.50 38.50

17


ANNEX 3: WORK PLAN FOR ITP THROUGH JUNE 30, 2014

the world bank · the world bank for official use only report no: 65061-ls restructuring paper on a...

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