The World Bank Agro-Processing, Productivity Enhancement and Livelihood Improvement Support Project (P148616) REPORT NO.: RES51947 DOCUMENT OF THE WORLD BANK RESTRUCTURING PAPER ON A PROPOSED PROJECT RESTRUCTURING OF AGRO-PROCESSING, PRODUCTIVITY ENHANCEMENT AND LIVELIHOOD IMPROVEMENT SUPPORT PROJECT APPROVED ON MARCH 23, 2017 TO FEDERAL REPUBLIC OF NIGERIA AGRICULTURE AND FOOD WESTERN AND CENTRAL AFRICA Regional Vice President: Ousmane Diagana Country Director: Shubham Chaudhuri Regional Director: Simeon Kacou Ehui Practice Manager/Manager: Chakib Jenane Task Team Leader(s): Adetunji A. Oredipe The World Bank Agro-Processing, Productivity Enhancement and Livelihood Improvement Support Project (P148616) I. BASIC DATA Product Information Project ID Financing Instrument P148616 Investment Project Financing Original EA Category Current EA Category Partial Assessment (B) Partial Assessment (B) Approval Date Current Closing Date 23-Mar-2017 30-Sep-2023 Organizations Borrower Responsible Agency Federal Republic of Nigeria Federal Ministry of Agriculture and Rural Development Project Development Objective (PDO) Original PDO The objective of the Project is to enhance agricultural productivity of small and medium scale farmers and improve value addition along priority value chains in the Participating States Summary Status of Financing (US$, Millions) Net Ln/Cr/Tf Approval Signing Effectiveness Closing Commitment Disbursed Undisbursed IDA-59930 23-Mar-2017 14-Jul-2017 24-May-2018 30-Sep-2023 200.00 179.93 25.48 Policy Waiver(s) Does this restructuring trigger the need for any policy waiver(s)? No II. SUMMARY OF PROJECT STATUS AND PROPOSED CHANGES The World Bank Agro-Processing, Productivity Enhancement and Livelihood Improvement Support Project (P148616) The overall performance of the project is satisfactory with a disbursement performance of 81.9 percent as of June 05, 2022. The last Implementation Status Report rated both PDO and IP satisfactory. An analysis of the Project’s performance showed that the productivity of Cassava increased from 15.66mt/ha to 20.01mt/ha (33%), maize from 2.52mt/ha to 3.46mt/ha (37.36%); rice from 2.86mt/ha to 5.01mt/ha (75%) in the intervention areas. The volume of processed output for milled rice moved from 3.2mt/CIG/Day to 4.9mt/CIG/Day, processed Cassava (Garri) from 1.7mt/CIG/Day to 2.35mt/CIG/Day, and processed fish from 0.78mt/CIG//Day to 1.02mt/CIG/Day. The project has expanded access of participating farmers to the market through linkage of beneficiaries with 85 off-takers. Eight Thousand and Seventy-Eight (8,078) youth and women have been empowered in the areas of Business, Technical, and Life Skills training and start-up grants to establish a commercially viable business. Twenty-Five agribusiness clusters have been linked to complementary infrastructures such as boreholes, tube wells, and box culverts across the participating States. Ninety-Six improved technologies, 50% of which are climate-smart and nutrition-sensitive, have been adopted by project beneficiaries in the 1,268 Value Chain Investment Plans implemented across eleven (11) priority value chains. A total of 49,349 direct beneficiaries (60.73% male and 39.27% females) and about 196,045 indirect beneficiaries have benefited from a total of 87 Business Alliances and out-grower schemes established across the six participating states. 3. In a letter dated June 08, 2022, the Federal Government of Nigeria requested a reallocation of the funds. The proposed reallocation seeks to move funds from Categories 1(Goods, Works, Non-Consultancy Services, Consultancy Services, Operating Costs, and Training) and Category 3 (Start-Up Grants Part B) into Category 2 (Matching Grants Part A) of the Project to enable the Project to respond to emerging priorities as it affects increased value addition in the participating States, complete all outstanding approved Value Chain Investment Plans and reinforce the gains of the APPEALS Project towards the attainment of its Project development outcomes. Specific activities that would be undertaken with the re-allocation include the completion of ongoing and additional Value Chain Investment plans. The rationale for the proposed fund reallocation for the categories in the above table is as follows: i. Reduce Category 1 (GD, WK, NCS, CS, OC, TR) allocation from SDR 75,800,000.00 to SDR 66,232,000.00, as most of the Goods, Consultancies, and Civil Works envisaged under the Project are being implemented with all the remaining financial commitment already determined and set aside. ii. Increasing of allocation of the Matching Grant Part-A category from SDR 18,400,000.00 to SDR 37,756,800.00 is necessary to finance commitment to Value Chain Investment Plans in response to emerging priorities in the participating states and advance the achievement of project development objectives. iii. Reducing the allocation of Start-Up Grants Part-B from SDR 53,000,000.00 to SDR 43,211,200.00 based on savings made from the implementation of the Women and Youth Empowerment programme. The proposed adjustment has not affected the total Credit amount, which remains at SDR147,200,00. III. DETAILED CHANGES The World Bank Agro-Processing, Productivity Enhancement and Livelihood Improvement Support Project (P148616) REALLOCATION BETWEEN DISBURSEMENT CATEGORIES Current Current Actuals + Proposed Disbursement % Ln/Cr/TF Expenditure Allocation Committed Allocation (Type Total) Category Current Proposed IDA-59930- GD, WK, NCS, 75,800,000.00 38,291,773.36 66,232,000.00 100.00 100.00 001 CS, OC, TR Currency: Matching Grants XDR 18,400,000.00 18,397,264.74 37,756,800.00 100.00 100.00 (Pt A) Start-Up Grants 53,000,000.00 32,419,192.37 43,211,200.00 100.00 100.00 (Pt B) Total 147,200,000.00 89,108,230.47 147,200,000.00