The World Bank Bangladesh Urban Resilience Project (P149493) REPORT NO.: RES35581 RESTRUCTURING PAPER ON A PROPOSED PROJECT RESTRUCTURING OF THE BANGLADESH URBAN RESILIENCE PROJECT APPROVED ON MARCH 24, 2015 TO THE PEOPLE’S REPUBLIC OF BANGLADESH URBAN, DISASTER RISK MANAGEMENT, RESILIENCE AND LAND GLOBAL PRACTICE SOUTH ASIA Regional Vice President: Hartwig Schafer Country Director: Mercy Miyang Tembon Regional Director: John A. Roome Practice Manager: Christoph Pusch Task Team Leader: Swarna Kazi, Haris Khan, Ignacio M. Urrutia Duarte The World Bank Bangladesh Urban Resilience Project (P149493) ABBREVIATIONS AND ACRONYMS CCR Command Control Room DAP Detailed Area Plan DDM Department of Disaster Management DNCC Dhaka North City Corporation DRM Disaster Risk Management DSCC Dhaka South City Corporation ECP Electronic Construction Permitting ECT Emergency Communication Technology EOC Emergency Operation Center ERCC Emergency Response Communication Center FSCD Fire Service and Civil Defence GoB Government of Bangladesh IA Implementing Agency ISR Implementation Support and Review M&E Monitoring and Evaluation NDMRTI National Disaster Management Research and Training Institute PCMU Project Coordination and Monitoring Unit PDO Project Development Objective PMIS Project Management Information System RAJUK Rajdhani Unnayan Kartripakkha RSLUP Risk-Sensitive Land Use Planning RVA Rapid Visual Assessment SAR Search and Rescue SCC Sylhet City Corporation TED Training Exercise and Drills URP Urban Resilience Project URU Urban Resilience Unit VAT Value Added Tax The World Bank Bangladesh Urban Resilience Project (P149493) BASIC DATA Product Information Project ID Financing Instrument P149493 Investment Project Financing Original EA Category Current EA Category Partial Assessment (B) Partial Assessment (B) Approval Date Current Closing Date 24-Mar-2015 30-Jun-2020 Organizations Borrower Responsible Agency Economic Relations Division, Ministry of Finance, Project Coordination and Monitoring Unit, Programming Government of Bangladesh Division, Ministry of Planning Project Development Objective (PDO) Original PDO The project development objective is to strengthen the capacity of Government of Bangladesh agencies to respond to emergency eventsand to strengthen systems to reduce the vulnerability of future building construction to disasters in Dhaka and Sylhet. OPS_TABLE_PDO_CURRENTPDO Summary Status of Financing Net Ln/Cr/Tf Approval Signing Effectiveness Closing Commitment Disbursed Undisbursed IDA-55990 24-Mar-2015 30-Jun-2015 03-Aug-2015 30-Jun-2020 173.00 59.98 110.11 Policy Waiver(s) Does this restructuring trigger the need for any policy waiver(s)? No The World Bank Bangladesh Urban Resilience Project (P149493) I. PROJECT STATUS AND RATIONALE FOR RESTRUCTURING A. Background 1. This Level II restructuring paper for the Bangladesh Urban Resilience Project (URP) seeks management approval to i) reallocate funds among project components1, ii) extend the closing date by 22 months to April 30, 20222, and iii) modify the project’s Results Framework, based on two restructuring request proposals submitted for this project by the Government of Bangladesh (GoB).3 2. URP was approved on March 24, 2015 to be financed through an IDA credit of US$173 million and GoB financing of US$6.5 million. URP is a multi-ministerial project with four Implementing Agencies (IAs): Department of Disaster Management (DDM), Rajdhani Unnayan Kartripakkha (RAJUK), Project Coordination and Monitoring Unit (PCMU), and Dhaka North City Corporation4 (DNCC). 3. The Project Development Objective (PDO) is “to strengthen the capacity of GoB agencies to respond to emergency events and to strengthen systems to reduce the vulnerability of future building construction to disasters in Dhaka and Sylhet.” The latest Implementation Support and Review (ISR) mission5 concluded that the project’s PDO, scope, and components as initially designed continue to remain relevant. The PDO will be achieved through the following components: Component A: Reinforcing the Country’s Emergency Management Response Capacity Component B: Vulnerability Assessment of Critical and Essential Facilities Component C: Improved Construction, Urban Planning and Development Component D: Project Coordination, Monitoring and Evaluation Component E: Contingent Emergency Response B. Project Status 4. Progress towards achievement of the PDO and overall implementation progress is “Moderately Satisfactory”. Disbursement stands at 33.3% (SDR 40.86 million, equivalent to US$56 million). Progress by component is as follows: 5. Component A (Reinforcing the Country’s Emergency Management Response Capacity): Most of the activities of the sub-components implemented by DNCC (A2, A3, and A4) are expected to be completed ahead of the project period. Notably, out of the finalized fifty-eight (58) decentralized facilities, fifty-two (52) have been constructed or renovated. The remaining six (6) will be completed by March 2020. In contrast, activities under the sub-components implemented by DDM (A1 and A5) are encountering some delays. However, there has been momentum recently and all contracts 1 funds will be taken from Components A and D and reallocated to Components B and C. More details are provided in Section II- Description of Proposed Changes. 2 from June 30, 2020 to April 30, 2022 3 dated June 27, 2019 and July 16, 2019 4 on behalf of Dhaka South City Corporation (DSCC), Fire Service and Civil Defence (FSCD), and Sylhet City Corporation (SCC) 5 Jun 29 - Jul 17, 2019 The World Bank Bangladesh Urban Resilience Project (P149493) pertaining to A1, renovating and outfitting national level disaster risk management facilities has been signed after initial procurement delays. Also, for sub-component A5, after the initial delays in procurement, the training curriculum and detailed training plan have been developed. The training for first responders as well as for national level responses to disasters and emergencies are expected to begin shortly. These trainings are critical to building institutional capacities, and the proposed project extension will aid in ensuring the completion of these sub-components and ensuring the longer- term sustainability of the project’s investments. 6. Component B (Vulnerability Assessment of Critical and Essential Facilities): RAJUK is implementing the activities under this component. Both consultancies under component B are well underway and expected to be completed by December 2021. Under sub-component B1, the database of critical and essential facilities, methodology, and framework for the vulnerability assessments have been completed, and Rapid Visual Assessment (RVA) is underway. As part of sub- component B2, comprehensive geotechnical and geophysical study is being implemented to develop Risk-Sensitive Land Use Planning (RSLUP) which will be incorporated into the Detailed Area Plans (DAP). 7. Component C (Improved Construction, Urban Planning and Development): RAJUK is also implementing the activities under this component. Progress for the Electronic Construction Permitting (ECP) System is on track and this activity is expected to be completed by 2021. Similarly, the building code implementation and enforcing strategy along with the professional accreditation program development related activities are expected to be completed by December 2021. A significant activity is the construction of the Urban Resilience Unit (URU) building. The URU building will host the laboratory, URU resources, and staff necessary for RAJUK to coordinate, plan and implement the envisioned urban resilience activities. The estimate for the URU construction works package is US$14.3 million and any cost beyond IDA financing allocation will be borne by GoB. This construction will require the additional 22 months. 8. Component D (Project Coordination, Monitoring and Evaluation): PCMU is responsible for the overall coordination and monitoring of this multi-agency project. Activities for this component are on track. A key activity is Monitoring and Evaluation (M&E) of all components through a specialized M&E Firm. The M&E firm is now in place, a system is established, and the indicators are being tracked. The Project Management Information System (PMIS) dashboard (https://urp.gov.bd/) has been prepared. PCMU has savings of US$5 million and on June 16, 2019, requested these savings to be reallocated to RAJUK PIU to successfully complete Components B and C. 9. Component E (Contingent Emergency Response): This component has not been triggered. C. Rationale for Restructuring 10. In the course of implementation, cost savings were identified in two components of the project (A and D) due to lower prices in services than original estimates and revisions of the scope of some sub-components. The financing gap in the RAJUK components (B and C) is due to: (i) increased cost of Value Added Tax (VAT) & Income Tax (new legislation), (ii) increased prices, and, (iii) increased construction costs for the proposed URU building. This gap will be covered with savings from the DDM (A1 and A5) and PCMU (D) components in addition to financing from GoB for any cost beyond IDA financing allocation on the RAJUK part, if needed. 11. In terms of timeline, there were implementation delays due to: (i) RAJUK’s inexperience in implementing Bank- financed projects, (ii) delays in necessary approvals for procurement processes on both the Government and Bank sides, The World Bank Bangladesh Urban Resilience Project (P149493) and (iii) the new nature of project activities for the implementing agencies as these are being carried out for the first time in the country. The construction of the URU building specifically is expected to add about twenty-two months to the initial project completion date of June 2020. 12. The activities under Components B and C are not only unprecedented in Bangladesh but are also integral to the overall urban resilience agenda for the country. These activities reinforce the activities under other components and ensure longer-term sustainability of the rest of the project’s investments. Therefore, the proposed project closing date extension is necessary to achieve the project’s ultimate objective of strengthening institutional capacities and systems to reduce vulnerabilities to future disasters. II. DESCRIPTION OF PROPOSED CHANGES A. Adjustment of Scope Table 1: Project Cost by Component (US$ million) Original Cost Cost Adjustment Proposed Adjusted Cost Project Component Description (US$ M) (US$ M) (US$ M) Component A: Reinforcing the Country’s Emergency 110.00 -1.00 109.00 Management Response Capacity Component B: Vulnerability Assessment of Critical and 12.00 3.70 15.70 Essential Facilities Component C: Improved Construction, Urban Planning and 41.00 2.30 43.30 Development Component D: Project Coordination, Monitoring and 10.00 -5.00 5.00 Evaluation Component E: Contingent Emergency Response 0.00 0.00 0.00 Total 173.00 0.00 173.00 13. Component A1 (Renovate and Outfit National-Level Disaster Risk Management (DRM) Facilities, IA-DDM): The activity remains unchanged. The renovation work is expected to be completed by 2020. The savings from DDM components is around US$1 million and is proposed to be reallocated to component B and C. 14. Component A2 (Build, Renovate and Outfit Local-Level City Corporation and FSCD DRM Facilities, IA-DNCC): The main activities of this sub-component are divided into two parts: i) facilities construction and ii) renovation of local level city corporation and facilities for FSCD. The initial target was to build and outfit thirty-one6 (31) decentralized facilities for FSCD and twenty-six7 (26) decentralized facilities for local level city corporations. The target has been revised to twenty- 62 FSCD Command Control Rooms (CCR), 12 Emergency Warehouses, 17 Auxiliary Control Rooms, 710 Emergency Management Warehouses, 2 Emergency Operation Centers (EOCs) for DSCC and SCC, 3 DRM offices for DNCC, DSCC and SCC, 10 Zonal Control Rooms, 1 SCC URU The World Bank Bangladesh Urban Resilience Project (P149493) eight (28)8 for FSCD, while the target for decentralized facilities for city corporation has been increased to thirty9 (30), based on institutional requirements and discussions with the relevant agencies. 15. Component A3 (Supply, Install and Integrate Specialized Emergency Communication Technology (ECT) Equipment for DRM and Emergency Response within the National-Level and Local-Level Agencies, IA-DNCC): Activities remain unchanged except for an increase in the number of Flyaway communication kits from 51 to 9410, based on institutional requirements and discussions with the relevant agencies. 16. Component A4 (Supply Specialized Search and Rescue (SAR) Equipment11 to Local-Level Agencies Involved in DRM); IA-DNCC: Activities remain unchanged. 17. Component A5 (Provide Training, Exercise and Drills (TED) to National-Level and Local-Level Agencies Involved in DRM); IA-DDM: Activities remain unchanged. 18. Component B (Vulnerability Assessment of Critical and Essential Facilities, IA-RAJUK): Almost all the activities remain unchanged for this component. Total contract cost for implementing the component exceeds original estimation by 30%. The original results framework did not adequately reflect the intervention and this has been revised accordingly. 19. Component C (Improved Construction, Urban Planning and Development, IA-RAJUK): There is no significant change in the scope of this component. However, there has been a substantial increase in the cost of construction of the URU building, due to the following ; i) area required to ensure adequate space is around 2.5 times higher than the original estimated area; ii) need to optimize construction quality to highest standards considering the very high land price in Dhaka; and iii) higher than expected construction costs. 20. Component D (Project Implementation, Monitoring, and Evaluation, IA-PCMU): Activities remain unchanged except for some studies that were dropped due to overlaps with studies being conducted under another component. B. Results Framework and Closing Date Extension 21. In addition to reflecting the proposed changes in the scope of some components above in the projected end targets, the Results Framework will be also be adjusted by adding some indicators that capture the changes essential to institutional change and capacity-building and modifying some indicators to more accurately reflect the activities being carried out. All of the Project Development Indicators will remain the same. For the Intermediate Results Indicators, the proposed changes to the indicator names and/or end targets are listed below: 8 2 FSCD CCR, 13 Emergency Warehouses, 13 Auxiliary Control Room 9 8 Emergency Management Warehouses, 3 EOCs (DNCC, DSCC and SCC), 8 DRM Offices, 10 Zonal Control Rooms, 1 URU in SCC 10 Number of ECT suits remain unchanged at 6. 11Turn Table Ladders, Emergency Tenders, HazMat Tenders, Rescue Boats, Rescue Drones, Water Rescue Equipment, Rescuer Carrying Vehicle, Breathing Apparatus, Personal Protective Equipment The World Bank Bangladesh Urban Resilience Project (P149493) Table 2: Proposed Changes to the Results Framework Original Indicator Original Target Revised Indicator Revised Target Systems established to reduce vulnerability of new buildings 3 [No change] 4 (Numbers) FSCD facilities constructed and/or renovated 31 [No change] 28 (Number) DNCC/DSCC /SCC facilities constructed and/or renovated 28 [No change] 30 (Number) DDM/DNCC/ DSCC/SCC/FSCD and Satellite Control Room facilities 57 [No change] 100 equipped with ECT suites and/or kits (Number) FSCD emergency management warehouses equipped with 12 [No change] 13 specialized search and rescue equipment Training sessions to government officials and emergency management - - 40 personnel delivered [new] (Number) Vulnerability reduction strategy and - - program for Dhaka developed [new] Yes (Yes/No) Risk-sensitive land use planning - - practice developed for Dhaka [new] Yes (Yes/No) New building code implementation and - - enforcement strategy developed [new] Yes (Yes/No) Professional Accreditation Program Professional Accreditation Program for Engineers, Architects and developed and/or strengthened Yes Planners established (Yes/No) Monitoring Reports produced 20 [No change] 1812 12 The contract signing of the M&E firm was delayed, resulting in less progress reports being needed from the firm within the proposed project closing timeline. The World Bank Bangladesh Urban Resilience Project (P149493) 22. Lastly, the project’s closing date will be extended by 22 months, from June 30, 2020 to April 30, 2022. I. SUMMARY OF CHANGES Changed Not Changed Results Framework ✔ Components and Cost ✔ Loan Closing Date(s) ✔ Disbursement Estimates ✔ Implementation Schedule ✔ Implementing Agency ✔ DDO Status ✔ Project's Development Objectives ✔ Cancellations Proposed ✔ Reallocation between Disbursement Categories ✔ Disbursements Arrangements ✔ Overall Risk Rating ✔ Safeguard Policies Triggered ✔ EA category ✔ Legal Covenants ✔ Institutional Arrangements ✔ Financial Management ✔ Procurement ✔ Other Change(s) ✔ Economic and Financial Analysis ✔ Technical Analysis ✔ Social Analysis ✔ Environmental Analysis ✔ The World Bank Bangladesh Urban Resilience Project (P149493) IV. DETAILED CHANGE(S) OPS_DETAILEDCHANGES_COMPONENTS_TABLE COMPONENTS Current Current Proposed Proposed Cost Action Component Name Component Name Cost (US$M) (US$M) Component A: Reinforcing the Component A: Reinforcing the Country’s Emergency Country’s Emergency 110.00 Revised 109.00 Management Response Management Response Capacity Capacity Component B: Vulnerability Component B: Vulnerability Assessment of Critical and 12.00 Revised Assessment of Critical and 15.70 Essential Facilities Essential Facilities Component C: Improved Component C: Improved Construction, Urban Planning, 41.00 Revised Construction, Urban Planning, 43.30 and Development and Development Component D: Project Component D: Project Coordination, Monitoring, and 10.00 Revised Coordination, Monitoring, and 5.00 Evaluation Evaluation Component E: Contingent Component E: Contingent 0.00 No Change 0.00 Emergency Response Emergency Response TOTAL 173.00 173.00 OPS_DETAILEDCHANGES_LOANCLOSING_TABLE LOAN CLOSING DATE(S) Original Revised Proposed Proposed Deadline Ln/Cr/Tf Status Closing Closing(s) Closing for Withdrawal Applications IDA-55990 Effective 30-Jun-2020 30-Apr-2022 30-Aug-2022 OPS_DETAILEDCHANGES_DISBURSEMENT_TABLE DISBURSEMENT ESTIMATES Change in Disbursement Estimates Yes Year Current Proposed 2015 0.00 0.00 The World Bank Bangladesh Urban Resilience Project (P149493) 2016 5,000,000.04 5,162,000.00 2017 24,999,999.96 3,780,000.00 2018 50,000,000.04 24,490,000.00 2019 50,000,000.04 58,000,000.00 2020 42,999,999.96 40,000,000.00 2021 0.00 25,000,000.00 2022 0.00 16,570,000.00 . The World Bank Bangladesh Urban Resilience Project (P149493) . Results framework COUNTRY: Bangladesh Bangladesh Urban Resilience Project Project Development Objectives(s) The project development objective is to strengthen the capacity of Government of Bangladesh agencies to respond to emergency eventsand to strengthen systems to reduce the vulnerability of future building construction to disasters in Dhaka and Sylhet. Project Development Objective Indicators by Objectives/ Outcomes RESULT_FRAME_TBL_PDO Indicator Name DLI Baseline End Target To strengthen the capacity of Government of Bangladesh agencies to respond to emergency events Wards with decentralized emergency response services in Dhaka 0.00 68.00 (DNCC/DSCC jurisdiction) (Number) Rationale: Action: This indicator has been Revised Only end date revised as per restructuring to April 30, 2022 Wards with decentralized emergency response services in Sylhet 0.00 20.00 (SCC jurisdiction) (Number) Rationale: Action: This indicator has been Revised Only end date revised as per restructuring to April 30, 2022 Increased capacity of officials and emergency management N/A Baseline +3 response personnel (Text) Rationale: Action: This indicator has been Revised Only end date revised as per restructuring to April 30, 2022 The World Bank Bangladesh Urban Resilience Project (P149493) RESULT_FRAME_TBL_PDO Indicator Name DLI Baseline End Target To strengthen systems to reduce the vulnerability of future building construction to disasters Systems established to reduce vulnerability of new buildings 0.00 4.00 (Number) Rationale: Number of systems to be established are revised from 3 to 4. This includes the original, Urban Resilience Unit, Electronic Construction Permitting, Professional Accreditation Program developed and/or strengthened, and also the new Action: This indicator has been Revised system, Risk Sensitive Land Use Planning Practice. PDO Table SPACE Intermediate Results Indicators by Components RESULT_FRAME_TBL_IO Indicator Name DLI Baseline End Target Component A: Reinforcing the Country’s Emergency Management Response Capacity DDM facilities renovated (ERCC, NDMRTI) (Number) 0.00 2.00 Rationale: Action: This indicator has been Revised Only end date revised as per restructuring to April 30, 2022 FSCD facilities constructed and/or renovated (Number) 0.00 28.00 Rationale: Action: This indicator has been Revised Number of facilities revised due to space/land availability and institutional requirements. Auxiliary control rooms reduced from 17 to 13. Emergency warehouses increased from 12 to 13. The World Bank Bangladesh Urban Resilience Project (P149493) RESULT_FRAME_TBL_IO Indicator Name DLI Baseline End Target DNCC/DSCC/SCC facilities constructed and/or renovated 0.00 30.00 (Number) Rationale: Number of facilities revised as per institutional requirements from 26 to 30. Action: This indicator has been Revised DDM/DNCC/DSCC/SCC/FSCD and Satellite Control Room facilities 0.00 100.00 equipped with ECT suites and/or kits (Number) Rationale: Revised as per institutional requirements. During implementation, need for additional flyaway emergency communication Action: This indicator has been Revised kits was identified and included. FSCD emergency management warehouses equipped with 0.00 13.00 specialized search and rescue equipment (Number) Rationale: Action: This indicator has been Revised Number of emergency management warehouses equipped revised from 12 to 13 as per institutional requirement. Multi-agency exercises and drills completed (Number) 0.00 12.00 Rationale: Action: This indicator has been Revised Only end date revised as per restructuring to April 30, 2022 Training sessions to government officals and emergency 0.00 40.00 management personnel delivered (Number) Action: This indicator is New Rationale: The World Bank Bangladesh Urban Resilience Project (P149493) RESULT_FRAME_TBL_IO Indicator Name DLI Baseline End Target Adding an indicator on training sessions, this was part of the original project scope but was not reflected in the original results framework. Component B: Vulnerability Assessment of Critical and Essential Facilities Identified and prioritized critical and essential facilities and 0.00 100.00 lifelines for Dhaka (Percentage) Rationale: Action: This indicator has been Revised Only end date revised as per restructuring to April 30, 2022 Vulnerability of prioritized critical and essential facilities and 0.00 100.00 lifelines assessed for Dhaka (Percentage) Rationale: Action: This indicator has been Revised Only end date revised as per restructuring to April 30, 2022 Vulnerability reduction strategy and program for Dhaka No Yes developed (Yes/No) Rationale: Action: This indicator is New This was part of the original project scope but was not reflected in the original results framework. Risk-sensitive land use planning practice for Dhaka developed 0.00 100.00 (Percentage) Rationale: This was part of the original project scope, sub-component B2 (Support Development of RSLUP in Dhaka), but was Action: This indicator is New not reflected in the original results framework. The World Bank Bangladesh Urban Resilience Project (P149493) RESULT_FRAME_TBL_IO Indicator Name DLI Baseline End Target Component C: Improved Construction, Urban Planning, and Development E-Permits for construction issued by RAJUK (Text) 0.00 Baseline + 30% Rationale: Action: This indicator has been Revised Only end date revised as per restructuring to April 30, 2022 Urban Resilience Unit facility of RAJUK constructed (Percentage) 0.00 100.00 Rationale: Action: This indicator has been Revised Only end date revised due to restructuring to April 2022 Urban Resilience Unit facility of RAJUK equipped with laboratory 0.00 100.00 and field testing equipment (Percentage) Rationale: Action: This indicator has been Revised Only end date revised due to restructuring to April 2022 New building code implementation and enforcement strategy No Yes developed (Yes/No) Rationale: This was part of the original project scope, covered under C4: Improved Building Code Enforcement, but was not reflected in Action: This indicator is New the original results framework. Professional Accreditation Program developed and/or No Yes strenghtened (Text) Action: This indicator is New Rationale: The World Bank Bangladesh Urban Resilience Project (P149493) RESULT_FRAME_TBL_IO Indicator Name DLI Baseline End Target Defined further detail during implementation. For Structural Engineers the professional accreditation program will be developed, for other major engineering disciplines (mechanical, electrical), architects, and planners, the current accreditation will be strengthened. Component D: Project Coordination, Monitoring, and Evaluation Monitoring Reports produced (Number) 0.00 18.00 Rationale: Action: This indicator has been Revised Revised to reflect the number of reports to be produced within the project period after delay contract signing. IO Table SPACE The World Bank Bangladesh Urban Resilience Project (P149493)