The World Bank Improving the Efficiency and Sustainability of Charcoal and Woodfuel Value Chains (P163358) REPORT NO.: RES37278 RESTRUCTURING PAPER ON A PROPOSED PROJECT RESTRUCTURING OF IMPROVING THE EFFICIENCY AND SUSTAINABILITY OF CHARCOAL AND WOODFUEL VALUE CHAINS APPROVED ON NOVEMBER 14, 2017 TO MINISTRY OF FINANCE AND ECONOMIC PLANNING (MINECOFIN) ENVIRONMENT & NATURAL RESOURCES AFRICA Regional Vice President: Hafez M. H. Ghanem Country Director: Carlos Felipe Jaramillo Senior Global Practice Director: Karin Erika Kemper Practice Manager/Manager: Iain G. Shuker Task Team Leader: Pablo Cesar Benitez Ponce The World Bank Improving the Efficiency and Sustainability of Charcoal and Woodfuel Value Chains (P163358) ABBREVIATIONS AND ACRONYMS The World Bank Improving the Efficiency and Sustainability of Charcoal and Woodfuel Value Chains (P163358) Note to Task Teams: The following sections are system generated and can only be edited online in the Portal. BASIC DATA Product Information Project ID Financing Instrument P163358 Investment Project Financing Original EA Category Current EA Category Partial Assessment (B) Partial Assessment (B) Approval Date Current Closing Date 14-Nov-2017 31-Dec-2019 Organizations Borrower Responsible Agency Rwanda Environment Management Authority (REMA) Ministry of Finance and Economic Planning (MINECOFIN) under the Ministry of Environment Financing (in USD Million) FIN_SUMM_PUB_TBL SUMMARY Total Project Cost 0 Total Financing 0 Financing Gap 0 DETAILS -NewFin3 The World Bank Improving the Efficiency and Sustainability of Charcoal and Woodfuel Value Chains (P163358) Project Development Objective (PDO) Original PDO The project development objective is to improve the efficiency and sustainability of woodfuel value chains in Northwest Rwanda. The project will result in a major advance in woodfuel management across the Gishwati-Mukura landscape by improving woodlot management practices, increasing the efficiency of charcoal production and improving seed quality for increased resilience. OPS_TABLE_PDO_CURRENTPDO Summary Status of Financing Net TF Approval Signing Effectiveness Closing Commitment Disbursed Undisbursed TF-A6134 14-Nov-2017 27-Dec-2017 28-Mar-2018 31-Dec-2019 3.77 1.44 2.40 Policy Waiver(s) Does this restructuring trigger the need for any policy waiver(s)? No Note to Task Teams: End of system generated content, document is editable from here. I. PROJECT STATUS AND RATIONALE FOR RESTRUCTURING The project had an official launch in February 2018, which attracted significant media attention. Institutional arrangements are in place, and an MoU between Rwanda Environmental Authority (REMA) and Rwanda Forest and Water Authority was signed. Contracts to support improved woodlot management, seeds quality, and biomass processing are ongoing. Given procurement delays, overall implementation progress (IP) is rated moderately satisfactory. Under the fourth component on “Assessing short and medium-term alternative sources of energy” the project requires a stronger focus on alternatives that would support the reduction of dependence on biomass from current 79% to 42% by 2024. This requires establishing a testing laboratory that can help to test cook stoves against national or international standards requirements. Continuous monitoring of the use of biomass as an alternative source of energy is essential for improving the efficiency and sustainability of wood value chains. To cover the costs of the lab equipment, the budget of component four needs to increase from $0.35 million to $0.54 million. After going through the procurement of most of the contracts for the implementation of the project, the budget for other components are adjusted accordingly. RSB will provide a laboratory space, staff and basic training on laboratory management based on ISO/IEC 17025 for the general requirements for the competence to carry out tests and/or calibrations. However, the laboratory space available will need some construction modification works in order to meet the requirement for cook stoves testing equipment. The cost of the construction modification works and capacity building have been estimated and tabulated in the budget. The World Bank Improving the Efficiency and Sustainability of Charcoal and Woodfuel Value Chains (P163358) II. DESCRIPTION OF PROPOSED CHANGES Component 4: Assessing of short and medium-term alternative sources of energy • Increase the budget from $0.35 million to $0.54 million to cover the costs of the testing laboratory equipment. • Reduce the costs for the assessments of alternative sources of energy since the Ministry of Infrastructure is undertaking similar studies as part of the National Survey on Biomass Fuel, and there are no needs to duplicate efforts. Component 1: Improved woodlot management • Increase the costs from $1.23 million to $1.28 million due to revision in expected contract costs Component 2: Improved seed quality • Increase the costs from $1.01 million to $1.20 million due to revision in expected contract costs and to adjust to current needs Component 3: More efficient charcoal production and biomass processing • Reduce the costs from $1.08 million to $0.65 million due to revision in expected contract costs and to adjust to current needs. After going through the procurement of most of the contracts for the implementation of NDF Project , we would like to request a budget reallocation between components to feet the current situation, Note to Task Teams: The following sections are system generated and can only be edited online in the Portal. It is in that regard am submitting a budget reallocation proposal for your approval . I. SUMMARY OF CHANGES Changed Not Changed Components and Cost ✔ Implementing Agency ✔ Improved woodlot management $1.23 $1.28 Project's Development Objectives ✔ Results Framework ✔ Loan Closing Date(s) seed quality Improved $1.01 $1.20 ✔ Cancellations Proposed ✔ Additional Financing More efficient Proposed charcoal production and ✔ $1.08 $0.65 Reallocation biomass between processing Disbursement Categories ✔ Disbursements Arrangements ✔ Assessment of short and medium-term Disbursement Estimates $0.35 $0.54 ✔ alternative sources of energy Change in Overall Risk Rating ✔ the project requires stronger focus on alternatives that would support the reduction of dependence on biomass from current 79% to 42% by 2024. This requires establishing a testing laboratory that can help to test cook stoves against national or international standards requirements. Continues monitoring of the use of biomass as an alternative source of energy for cooking is therefore essential for improve the efficiency and sustainability of value chains. In order to cover the costs of the lab equipment, the budget of component four needs to increase from $0.35 million to $0.54 million. After going through the procurement of most of the The World Bank Improving the Efficiency and Sustainability of Charcoal and Woodfuel Value Chains (P163358) Safeguard Policies Triggered ✔ EA category ✔ Legal Covenants ✔ Institutional Arrangements ✔ Financial Management ✔ Procurement ✔ Implementation Schedule ✔ Other Change(s) ✔ IV. DETAILED CHANGE(S) OPS_DETAILEDCHANGES_COMPONENTS_TABLE COMPONENTS Current Current Proposed Proposed Cost Action Component Name Component Name Cost (US$M) (US$M) Improved woodlot Improved woodlot management 1.23 Revised 1.28 management Improved seed quality 1.01 Revised Improved seed quality 1.20 More efficient charcoal More efficient charcoal production and biomass 1.08 Revised production and biomass 0.65 processing processing Assessment of short and Assessment of short and medium-term alternative sources 0.35 Revised medium-term alternative 0.54 of energy sources of energy Local monitoring and Local monitoring and 0.33 No Change 0.33 management management TOTAL 4.00 4.00 Note to Task Teams: End of system generated content, document is editable from here.