The World Bank Sint Maarten Emergency Debris Management Project (P167347) REPORT NO.: RES50144 DOCUMENT OF THE WORLD BANK RESTRUCTURING PAPER ON A PROPOSED PROJECT RESTRUCTURING OF SINT MAARTEN EMERGENCY DEBRIS MANAGEMENT PROJECT APPROVED ON DECEMBER 20, 2018 TO SINT MAARTEN URBAN, RESILIENCE AND LAND LATIN AMERICA AND CARIBBEAN Regional Vice President: Carlos Felipe Jaramillo Country Director: Lilia Burunciuc Regional Director: Anna Wellenstein Practice Manager/Manager: David N. Sislen Task Team Leader(s): Hadji Huseynov The World Bank Sint Maarten Emergency Debris Management Project (P167347) I. BASIC DATA Product Information Project ID Financing Instrument P167347 Investment Project Financing Original EA Category Current EA Category Full Assessment (A) Full Assessment (A) Approval Date Current Closing Date 20-Dec-2018 30-Sep-2022 Organizations Borrower Responsible Agency Ministry of General Affairs,National Recovery Program Sint Maarten Bureau Project Development Objective (PDO) Original PDO To manage debris from the hurricane and reconstruction activities to facilitate recovery and reduce risks. Summary Status of Financing (US$, Millions) Net Ln/Cr/Tf Approval Signing Effectiveness Closing Commitment Disbursed Undisbursed TF-A9261 20-Dec-2018 21-Dec-2018 31-Jan-2019 30-Sep-2022 25.00 22.23 2.77 Policy Waiver(s) Does this restructuring trigger the need for any policy waiver(s)? No II. SUMMARY OF PROJECT STATUS AND PROPOSED CHANGES The World Bank Sint Maarten Emergency Debris Management Project (P167347) A. Introduction 1. The purpose of this restructuring is to extend the closing date of the Sint Maarten Emergency Debris Management Project (EDMP) by 15 months from September 30, 2022 to December 31, 2023. The request for extension was received from the Government of Sint Maarten on January 24, 2022. B. Background 2. The EDMP was approved on December 21, 2018, and became effective on January 31, 2019. The project is financed by the World Bank Netherlands Trust Fund for Sint Maarten Hurricane Irma Recovery, Reconstruction and Resilience. The total project cost is US$ 25 million. This is the second restructuring and first extension of the closing date. The first restructuring dated June 3, 2021 was carried out to better reflect the ground situation and changing priorities by removing standalone emergency fire suppression activity and updating safeguard requirements, legal covenants, and results framework. 3. The Project Development Objective (PDO) of the EDMP is to manage debris from the hurricane and reconstruction activities to facilitate recovery and reduce risks. The Project consists of three components: (a) Component 1: Debris Clearance and Management (b) Component 2: Technical Assistance (c) Component 3: Project Management and Implementation Support. C. Status of implementation 4. As of February 2022, out of allocated US$25 million about US$20.1 million is committed under the signed contracts, of which US$18 million has been disbursed and outstanding US$ 4.9 million is committed to the planned resettlement of project affected people. The PDO and IP ratings are rated at MS. The project currently experiences a financial gap and team expects to process an Additional Financing in 2022 to allow the project to fulfill the PDO at full. 5. The project is progressing towards achieving its PDO as seen from the Result Framework. The implementation has particularly intensified within the 2021 calendar year, as reflected by full commitment of funds. Since 2019, the project has financed continued application of Alternative Daily Cover on the MSW Landfill and, with fire suppression and recontouring carried out by VROMI, significantly reduced the surface and subsurface fires in both MSW Landfill and Irma Disposal Site. To date, a compactor, a bulldozer, and a front loader, were procured and in operation on the landfill, strengthening the client’s capacity in daily landfill management. The successful completion of removal and salvaging of 139 shipwrecks in Simpson Bay and Mullet Pond and cleaning of 10.5 km shorelines improved the environmental conditions that are crucial for the local tourism industry. Key safeguard documents for daily landfill management and Temporary Debris Storage and Recycling facility (TDSR) were cleared by the WB in December 2021, and RAP and ESMP for metal and car/metal wreck handling are closed to finalization. 6. Significant progress was made in recruiting technical expertise and strengthening the capacity for project implementation. Following the onboarding of the new EDMP project manager, a resettlement coordinator, a project engineer, a program coordinator for waste management, and a manager for shipwrecks salvaging and technical advisor were successfully recruited. A Strategic Program Coordinator for Waste Management joined VROMI in August 2021, and a consulting firm is being recruited to support strategic planning and provide technical assistance with support from the Netherlands. The World Bank Sint Maarten Emergency Debris Management Project (P167347) 7. The performance of the implementing agency continues to be satisfactory. The Project is currently compliant with all fiduciary and safeguards requirements and legal covenants. There are not overdue audits or IFRs. D. Rationale for Restructuring 8. With the Resettlement Action Plan (RAP) being finalized, the NRPB prepares to start the phase-1 resettlement with the funds available. The process is expected to start in April 2022. The RAP foresees a resettlement implementation timeline of up to 24 months for physical resettlement (phase-1 and subsequent phases), related compensation, and the implementation of livelihood restoration activities. To ensure that there is sufficient time for resettlement, the Government of Sint Maarten has requested an extension of the project closing date from the current September 30, 2022 to December 31, 2023. III. DETAILED CHANGES LOAN CLOSING DATE(S) Original Revised Proposed Proposed Deadline Ln/Cr/Tf Status Closing Closing(s) Closing for Withdrawal Applications TF-A9261 Effective 30-Sep-2022 31-Dec-2023 30-Apr-2024