The World Bank Philippines: Methane Recovery from Waste Management Project (P115080) REPORT NO.: RES51757 DOCUMENT OF THE WORLD BANK RESTRUCTURING PAPER ON A PROPOSED PROJECT RESTRUCTURING OF PHILIPPINES: METHANE RECOVERY FROM WASTE MANAGEMENT PROJECT APPROVED ON JANUARY 14, 2010 TO LAND BANK OF THE PHILIPPINES ENVIRONMENT, NATURAL RESOURCES & THE BLUE ECONOMY EAST ASIA AND PACIFIC Regional Vice President: Manuela V. Ferro Country Director: Ndiame Diop Regional Director: Benoit Bosquet Practice Manager/Manager: Mona Sur Task Team Leader(s): Katelijn Van den Berg, Keiko Ashida Tao The World Bank Philippines: Methane Recovery from Waste Management Project (P115080) I. BASIC DATA Product Information Project ID Financing Instrument P115080 Investment Project Financing Original EA Category Current EA Category Partial Assessment (B) Partial Assessment (B) Approval Date Current Closing Date 14-Jan-2010 30-Jun-2022 Organizations Borrower Responsible Agency Land Bank of the Philippines Land Bank of Philippines Project Development Objective (PDO) Original PDO To reduce greenhouse gas emissions from participating sites. This will be accomplished through the expanded adoption of non-mandatory low GHG-emitting waste management technologies as part of sector modernization anticipated under the Clean Water Act and the Ecological Solid Waste Management Act. Summary Status of Financing (US$, Millions) Net Ln/Cr/Tf Approval Signing Effectiveness Closing Commitment Disbursed Undisbursed TF-A2867 01-Dec-2016 13-Dec-2016 13-Dec-2016 31-Dec-2021 1.23 1.30 0 TF-A1705 22-Dec-2015 23-Dec-2015 23-Dec-2015 30-Jun-2022 2.61 1.42 1.43 TF-A0254 20-May-2015 25-May-2015 25-May-2015 30-Jun-2022 .76 .08 .61 TF-95936 14-Jan-2010 14-Jan-2010 14-Jan-2010 30-Jun-2017 -.40 .06 0 The World Bank Philippines: Methane Recovery from Waste Management Project (P115080) Policy Waiver(s) Does this restructuring trigger the need for any policy waiver(s)? No II. SUMMARY OF PROJECT STATUS AND PROPOSED CHANGES 1. Summary of Project Status The Project’s development objective (PDO) to reduce greenhouse gas emissions from participating sites remain achievable as emission reductions (ERs) have already been generated during the reporting years specified in the Emission Reductions Purchase Agreements (ERPAs) for both the Animal Waste Program (TF0A0254) and the Sanitary Landfill Program (TF0A1705). The total certified ERs (CERs) projected for delivery from the Animal Waste Program (TF0A0254) are 118% of the amended maximum Contract CER Volume for the entire monitoring period specified in the ERPA (January 1, 2015 - December 31, 2020). The Animal Waste Program is in the process of verifications of ERs for two monitoring periods (July 1, 2015 - December 31, 2019 and January 1, 2020 - December 31, 2020). For the Sanitary Landfill Program, the total estimated CERs are 66% of the amended maximum Contract Volume. There is only one verification and certification process pending for this Program. The performance of the Land Bank of the Philippines (LANDBANK), as the signatory of the ERPAs and the coordinating entity of the Clean Development Mechanism (CDM) programs for both ERPAs, remains satisfactory. During the last implementation support mission conducted on May 11-12, 2022, LANDBANK agreed to continue working with the Designated Operating Entity (DOE) to complete verifications of the remaining ERs and submit the last request for certification and issuance by the CDM Board by October 2022. Safeguards. The Project has a satisfactory track record of safeguards implementation. LANDBANK conducted safeguards monitoring at least twice a year. The participating farms and landfills are operating in accordance with the Environmental Social Management Plans. LANDBANK confirmed that Indigenous Peoples, land acquisition, and involuntary resettlement are not involved in project implementation. GRM and disclosure are in effect as evidenced by the complaint regarding an ESMP that did not contain the correct drawings. This has since been rectified. Health and safety measures related to COVID and Occupational Health and Safety are being implemented. ERPA compliance. There is no pending covenant for compliance. 2. Rationale for the Proposed Extension This restructuring proposes an extension of the ERPAs for the Animal Waste Program (TF0A0254) and the Sanitary Landfill Program TF0A1705 until May 31, 2023. The hiring of the Designated Operating Entity (DOE) for verifications of ERs and the verification process itself have been delayed and taking longer due to the impacts of quarantines from COVID-19 and African Swine Flue in the project areas. It is projected that the last set of verification and certification will be completed around January 2023, provided that there is no additional review requested by the DOE or the CDM Board. On June 9, 2022, LANDBANK submitted an official request to extend the term of both ERPAs until May 31, 2023 to ensure that there is enough time to deliver the CERs to the CPF and the corresponding payments to LANDBANK are processed. The CPF has provided their approval to the proposed extension. The World Bank Philippines: Methane Recovery from Waste Management Project (P115080) III. DETAILED CHANGES LOAN CLOSING DATE(S) Original Revised Proposed Proposed Deadline Ln/Cr/Tf Status Closing Closing(s) Closing for Withdrawal Applications 31-Dec-2015, 30-Jun- TF-95936 Closed 30-Jun-2015 2017, 30-Jan-2019 TF-A0254 Effective 30-Jun-2022 31-May-2023 31-May-2023 TF-A1705 Effective 30-Jun-2022 31-May-2023 31-May-2023 TF-A2867 Closed 31-Dec-2021 08-Mar-2022