Public Disclosure Authorized Public Disclosure Authorized The World Bank Implementation Status & Results Chile Ministry of Public Works Institutional Strenghtening TAL (P102931) Operation Name: Ministry of Public Works Institutional Strenghtening TAL Project Stage: Implementation Seq.No: 7 Status: ARCHIVED Last Modified : 22-Oct-2010 (P102931) Country: Chile Approval FY: 2007 Product Line: IBRD/IDA Region: LATIN AMERICA AND CARIBBEAN Lending Instrument: Technical Assistance Loan Implementing Agency(ies): Ministry of Public Works Key s Board Approval 14-Jun-2007 Original Closing 31-Jan-2013 Planned Mid Term Review Last Archived ISR 09-Apr-2010 Effectiveness 27-Feb-2008 Revised Closing 31-Jan-2013 Actual Mid Term Review Project Development Objectives Project Development Objective (from Project Appraisal Document) The Project Development Objective is to assist the Government in achieving a sustainable and integrated approach to the planning of infrastructure; levels of se rvice standards for infrastructure as well as model contracts and procedures tha t promote competition and assign risks appropriately; an integrated project mana gement process; a regulatory framework for all of MOPW#s sectors of responsibili ty that increases consumer confidence in infrastructure service provision; and t he legal and organizational separation of the areas of planning, contracting, ex ecution and regulation of infrastructure provision. Has the Project Development Objective been changed since Board Approval of the Project? losure Authorized Public Disclosure Authorized Yes No Component(s) Component Name Component Cost Integrated Planning 4.10 Standards, Contracts and Competition 3.25 Integrated Project Management 0.75 Regulatory Strengthening 1.40 Organizational Reform 1.90 Audit and additional activities 0.30 Overall Ratings Previous Rating Current Rating Progress towards achievement of PDO Moderately Unsatisfactory Moderately Unsatisfactory Overall Implementation Progress (IP) Moderately Unsatisfactory Moderately Unsatisfactory Page 1 of 8
Overall Risk Rating Implementation Status Overview Previous Rating Current Rating The Modernization Program of the Ministry of Public Works received a strong endorsement from the new administration, which took office in March, 2010. The tools developed and implemented by the Modernization Program have been tested and fully utilized in the emergency reconstruction projects that followed the earthquake of February 2010. The Modernization Program would benefit from higher levels of budget allocation. With the budget allocation for 2009 and 2010 the scope of activities to be funded will remain limited andmight threaten its sustainability. Results Project Development Objective Indicators Increased return of infrastructure projects due to the new planning methodology 0% Greater competition in bidding supported by fair risk-sharing arrangements embedded in contracts and consumer-responsive service targets Greater responsiveness to consumer concerns related to levels of service; and greater oversight of performance by public sector service providers as well as concessionaires Page 2 of 8
Reduction in variance between values established at contract signature and final values at project execution Normative and organizational structure that provides clear separation and definition of roles and responsibilities for planning, contracting, works execution and oversight. Intermediate Results Indicators Share of projects approved based on new integrated planning methodology. 0% 29-Jun-2007 A new planning methodology is a key feature of the Modernization Program of the Ministry of PUblic Works 0% Preparation of new methodology suffering significant delays. ToR 31-Dec-2012 were supposed to be ready by Nov 2009 but the MOPW still has not send new version to the Bank for no objection. Several activities carried out with MOPW's own resources, including several Planes Director de Infraestructura at the local and regional levels. 25% of projects that initiate a phase of the project cycle (from prefeasibility to execution) adopted/initiated based on new planning methodology Page 3 of 8
Identify, define and adopt service quality standards in a wide set of works typologies under the responsibility of the MOPW 0% 29-Jun-2007 identification and definition of service quality standards for 4 typologies (airports, interurban concessions, urban concessions and "Conectividad Austral") Identification of service quality attributes relevant, indicators and standards of service in the following 7 types of works (Airport Concession, Concession Road Works; jail concession; Lakeside Connectivity Project, Maritime and Fluvial Isolated Areas, BuildingsMOP, Stormwater; Rural Water) Service standards defined for 9 typology of works under the jurisdiction of MOPW Number of concession contracts under the jurisdiction of the MOPW that incorporate (explicitly) quality standards 0 26-Oct-2009 0 Not reflected in any contract yet but active work in the inclusion of quality standards in 4 contracts in Airports, Jails and roads 7 contracts include, from bidding stage, explicit service standards Page 4 of 8
More competition in biddings to be reached by (i) improvements in bidders registry (reglamento de obras y consultoria) and (ii) improved standard bidding documents Bidding documents and firms and consultants registry currently in use by MOPW 31-Dec-2007 Proposal of improvements to the bidders registry sent to Contraloria for comments and review. No progress documented for elaboration of new standard bidding documents Significant delays in submitting documents to Contraloria. Proposal in internal validation in MOPW with low likelihood of progress in short run. No progress since last ISR 80% of contracts signed by MOPW during the year 2012 using new bidding documents. A third party, independent of MOPW to conduct an assessment of the impact of new bidding documents and improved "registro de contratistas" on intensity of competition Reduction in the variance of the difference between costs forecasted when contract is signed and actual cost of works No baseline available 26-Oct-2009 Consulting firm being hired to prepare baseline. Note that more than 60 projects currently under integrated project management. 0 Significant delays in the hiring of a consulting firm to design methodology. In its progress report MOPW indicates the Project Management Office set as part of the Integrated Management Component is setting up a working group to advance the preparation of the baseline Reduction of 15% in the variance of cost deviations. Measured against baseline that will include only projects under integrated project management Page 5 of 8
A normative and organizational framework in place that provides for clear separation of roles and responsibilities MOPW does not have an internal organization law that separates the roles of planning, implementation and supervision 26-Oct-2009 Progress in approval of laws: Concessions, Superintendency, Organic Law of MOPW Concession law approved as Law 20410 (January 2010). Law that creates the Superintendency is in Congress but not advancing. Internal reform of MOPW is under review by new administration Following laws approved by Congress: (i) New organizational structure of MOPW (ii) New concessions law (iii) Law that creates the Superintendency of Public Works Reduction of variance of construction time between time envisaged when contract is signed and actual construction time Custom Indicator Percentage 0.00 Task to be developed by PMO but no progress has been made. 15.00 31-Jan-2013 % reduction in indicator (variance) Page 6 of 8
Regulatory oversight system in place to be used by entity independent of planning and execution divisionos of MOPW No regulatory oversight system by an independent agency in place (currently done in house by MOPW personnel) 26-Oct-2009 Regulatory oversight system being Regulatory oversight system and applied to interurban road mechanisms in place for the concession contracts and urban following sectors: aiports road concession contracts. concessions and inter and urban roads concessions. 31-Jan-2013 Significant progress in the monitoring of road concessions. Regulatory oversight system being applied to 20 interurban road concession contracts and 6 urban road concession contracts. Web based system (in the future will be publicly available) in place to monitor21 road concessions. Information being updated in real time. Data on Financial Performance (as of 00000000) Financial Agreement(s) Key s Project Loan No. Status Approval Signing Effectiveness Closing P102931 IBRD-74580 Effective 14-Jun-2007 30-Nov-2007 27-Feb-2008 31-Jan-2013 Disbursements (in Millions) Project Loan No. Status Currency Original Revised Cancelled Disbursed Undisbursed % Disbursed P102931 IBRD-74580 Effective USD 11.70 11.70 0.00 1.22 10.48 10.00 Disbursement Graph Page 7 of 8
Key Decisions Regarding Implementation Next supervision mission to discuss minimum budget allocation and set of actions required to increase pace of disbursements Restructuring History There has been no restructuring to date. Related Projects There are no related projects. Page 8 of 8