The World Bank SPF - Support to Zimbabwe Recovery and Resilience (P172176) REPORT NO.: RES51922 RESTRUCTURING PAPER ON A PROPOSED PROJECT RESTRUCTURING OF SPF - SUPPORT TO ZIMBABWE RECOVERY AND RESILIENCE APPROVED ON MARCH 28, 2020 TO MINISTRY OF FINANCE AND ECONOMIC DEVELOPMENT URBAN, RESILIENCE AND LAND EASTERN AND SOUTHERN AFRICA Regional Vice President: Hafez M. H. Ghanem Country Director: Mara K. Warwick Global Director: Sameh Naguib Wahba Tadros Practice Manager/Manager: Catalina Marulanda Task Team Leader(s): Nicholas James Callender The World Bank SPF - Support to Zimbabwe Recovery and Resilience (P172176) ABBREVIATIONS AND ACRONYMS BE Bank-Executed DCP Department of Civil Protection DRM Disaster Risk Management GoZ Government of Zimbabwe MIS Management Information System PDO Project Development Objective POC Project Oversight Committee RE Recipient Executed SPF State and Peacebuilding Fund ZIMREF Zimbabwe Reconstruction Fund ZIRP Zimbabwe Idai Recovery Project The World Bank SPF - Support to Zimbabwe Recovery and Resilience (P172176) BASIC DATA Product Information Project ID Financing Instrument P172176 Investment Project Financing Environmental and Social Risk Classification (ESRC) Low Approval Date Current Closing Date 28-Mar-2020 30-Jun-2022 Organizations Borrower Responsible Agency Ministry of Finance and Economic Development Ministry of Finance and Economic Development Financing (in USD Million) FIN_SUMM_PUB_TBL SUMMARY Total Project Cost 0 Total Financing 0 Financing Gap 0 DETAILS -NewFin3 Project Development Objective (PDO) Original PDO To support the Government of Zimbabwe to i) improve Governmental coordination capacity to respond to cyclone Idai, and ii) to scale-up and institutionalize DRM capacity OPS_TABLE_PDO_CURRENTPDO The World Bank SPF - Support to Zimbabwe Recovery and Resilience (P172176) Summary Status of Financing (US$, Millions) Net TF Approval Signing Effectiveness Closing Commitment Disbursed Undisbursed TF-B2388 30-Apr-2020 07-May-2020 14-May-2020 30-Jun-2022 2.20 1.16 1.04 Policy Waiver(s) Does this restructuring trigger the need for any policy waiver(s)? No I. PROJECT STATUS AND RATIONALE FOR RESTRUCTURING A. Introduction 1. This Paper seeks the approval to initiate processing of a time extension to the Support to Zimbabwe Recovery and Resilience Project from the Zimbabwe Reconstruction Fund (ZIMREF) (P172176), referred to as the Project. 2. The Project is supporting (a) the Zimbabwe Department for Civil Protection (DCP)1 to strengthen the institutional, systems, and policy-related aspects of government-led Disaster Risk Management (DRM) in Zimbabwe, enabling more informed, coordinated, and transparent decisions on DRM, and (b) the Ministry of Public Service, Labor, and Social Welfare to develop and operationalize a centralized beneficiary registry Management Information System (MIS). The Project forms part of the Bank’s strategic four-year recovery and development assistance commitment of the USD 72 million to the Zimbabwe Idai Recovery Project (ZIRP, P171114), following the impact of Cyclone Idai on Zimbabwe and its citizens, in mid-March 2019. 3. This proposal includes a level two restructuring of the original project to: (i) extend the closing date by two months from June 30, 2022, to August 31, 2022; (ii) adjust disbursement estimates based on the proposed project period; and (iii) revise the implementation schedule to account for the additional proposed time. B. Current Status of the Parent Project 4. The Support to Zimbabwe Recovery and Resilience Project has been effective since May 14, 2020 and has a current project closing date of June 30, 2022. The Project is financed by the FY19 Grant of USD 3 million, comprised of USD 0.8 million in Bank-Executed (BE) resources and USD 2.2 million in Recipient-Executed (RE) components. The Project Development Objective is to support the Government of Zimbabwe to i) improve Governmental coordination capacity to respond to Cyclone Idai, and ii) to scale-up and institutionalize DRM capacity. The Project is comprised of three components, namely (i) Technical Assistance (Bank Executed, US$0.8M); Strengthening 1 Domiciled in the Ministry of Local Government and Public Works The World Bank SPF - Support to Zimbabwe Recovery and Resilience (P172176) Government Technical Capacities (Recipient Executed, US$1.95M) and Project Management (Recipient Executed, US$0.25M) 5. Overall progress towards achievement of the Project Development Objective (PDO) and Implementation Progress (IP) is currently rated Moderately Satisfactory. Since the project effectiveness, of the US$2.2 million, the project has disbursed a total of US$1,007,987 to the Project Implementation Unit and through direct disbursement to suppliers. Currently total commitments amount to US$796,000 for ongoing activities under contract. An available balance of US$395,000 remains. 6. Technical work is underway, including: (i) Development of the Social Protection Management Information System; (ii) Development of National Disaster Risk Management Plan; (iii) Development of a Communication Strategy for DRM; (iv) Drought Monitor and Comprehensive Drought Indicator (CDI) institutionalization and operationalization; (v) Reviewing the DRM Strategy (in line with progress on the DRM Bill); (vi) Meteorological Services Department (MSD) support. The following activities are currently at final stages of the procurement process: (i) Social Protection MIS Data Centre equipment; and (ii) Meteorological Services Department (MSD) ICT equipment. 7. The Project has no overdue IFRs or audits. C. Rationale for Restructuring 8. The proposed extension allows the team to manage delays resulting from the covid-19 pandemic. The modification will allow for the continued advancement against the development objective and to utilize the grant resources available to their fullest extent. This would allow for the completion of the ongoing Social Protection MIS work and ongoing DRM activities. Zimbabwe’s COVID-19 movement restrictions hindered meaningful engagement, such as preventing face-to-face workshops, trainings, and meetings and the provision of global technical assistance. 9. Government requested an extension to December 31, 2022, to allow project activities to be carried out as planned and completed within a reasonable timeframe; while a six-month extension is not possible until the Zimbabwe Reconstruction Fund (ZIMREF) time extension has been processed, the two-month extension will allow activities to continue in the meantime. Within the framework of the ZRRP, the implementation arrangements require interactions at multiple levels within government and between partners. Certain activities, such as the MIS and DRM policy and systems related activities have more lengthy and complex systems and delivery processes, and thus the additional time can support government counterparts in the effective use and uptake of the products. It also mitigates any challenges in the work delivery, particularly with lengthier contracts and the additional time to be integrated into workstreams to facilitate collaboration and appropriate country engagement. II. DESCRIPTION OF PROPOSED CHANGES 10. Closing Date. The proposed two-month extension is being processed as a waiver to the standard RETF grace period. The World Bank SPF - Support to Zimbabwe Recovery and Resilience (P172176) 11. Disbursement Estimates. The Disbursement Estimates have been updated to account for the additional proposed six months. 12. Implementation Schedule. The implementation schedule has been adjusted to accommodate the closing date extension. The team has also developed a new implementation workplan for the additional time to ensure the project development objectives are met. III. SUMMARY OF CHANGES Changed Not Changed Loan Closing Date(s) ✔ Disbursement Estimates ✔ Implementation Schedule ✔ Implementing Agency ✔ Project's Development Objectives ✔ Results Framework ✔ Components and Cost ✔ Cancellations Proposed ✔ Additional Financing Proposed ✔ Reallocation between Disbursement Categories ✔ Disbursements Arrangements ✔ Change in Overall Risk Rating ✔ Legal Covenants ✔ Institutional Arrangements ✔ Financial Management ✔ Procurement ✔ Other Change(s) ✔ Economic and Financial Analysis ✔ Technical Analysis ✔ Social Analysis ✔ Environmental Analysis ✔ The World Bank SPF - Support to Zimbabwe Recovery and Resilience (P172176) IV. DETAILED CHANGE(S) OPS_DETAILEDCHANGES_LOANCLOSING_TABLE LOAN CLOSING DATE(S) Original Revised Proposed Proposed Deadline TF Status Closing Closing(s) Closing for Withdrawal Applications TF-B2388 Effective 30-Jun-2021 30-Jun-2022 31-Aug-2022 31-Oct-2022 OPS_DETAILEDCHANGES_DISBURSEMENT_TABLE DISBURSEMENT ESTIMATES Change in Disbursement Estimates Yes Expected Disbursements (In US$) Fiscal Year Annual Cumulative 2020 0.00 0.00 2021 531,925.00 531,925.00 2022 650,000.00 1,181,925.00 2023 1,018,075.00 2,200,000.00 Note to Task Teams: End of system generated content, document is editable from here.