The World Bank Senegal River Basin Multipurpose Water Resources Development Project 2 (P131323 and P131353) REPORT NO.: RES31656 RESTRUCTURING PAPER ON A PROPOSED PROJECT RESTRUCTURING OF SENEGAL RIVER BASIN MULTIPURPOSE WATER RESOURCES DEVELOPMENT PROJECT 2 APPROVED ON DECEMBER 5, 2013 TO THE REPUBLIC OF GUINEA THE REPUBLIC OF MALI THE ISLAMIC REPUBLIC OF MAURITANIA THE REPUBLIC OF SENEGAL AND OF SENEGAL RIVER BASIN CLIMATE CHANGE RESILIENCE DEVELOPMENT PROJECT TO ORGANISATION POUR LA MISE EN VALEUR DU FLEUVE SENEGAL (ORGANIZATION FOR THE DEVELOPMENT OF THE SENEGAL RIVER) September 17, 2019 WATER GLOBAL PRACTICE AFRICA This document has a restricted distribution and may be used by recipients only in the performance of their official duties. Its contents may not otherwise be disclosed without World Bank authorization. The World Bank Senegal River Basin Multipurpose Water Resources Development Project 2 (P131323 and P131353) Regional Vice President: Hafez Ghanem Regional Integration Director: Deborah L. Wetzel Senior Global Practice Director: Jennifer Sara Practice Manager: Yogita Mumssen Task Team Leaders: Marie-Laure Lajaunie, Laura Bonzanigo The World Bank Senegal River Basin Multipurpose Water Resources Development Project 2 (P131323 and P131353) ABBREVIATIONS AND ACRONYMS ADRS Agence de développement rural de la vallée du fleuve Sénégal (Mali) CoM Council of Ministers DNGR Direction National du Genie Rural (Guinea) ESIA Environmental and Social Impact Assessment GEF Global Environmental Fund KK Koukoutamba IDA International Development Association IFC International Finance Corporation INT Integrity Vice Presidency LLIN Long Lasting Insecticidal Nets ML Mali Senegal River Basin Multi-purpose Water Resources Development Project/Projet de Gestion MWRD / PGIRE Intégrée des Ressources en Eau du Fleuve Sénégal NTD Neglected Tropical Disease OMVS Organisation de mise en valeur du fleuve Sénégal - PDO Project Development Objective RPF Resettlement Policy Framework Société Nationale d’Aménagement et d’Exploitation des Terres du Delta du fleuve Sénégal et des SAED vallées du fleuve Sénégal et de la Falémé (Senegal) SDR Special Drawing Rights SONADER Société nationale pour le développement rural (Mauritania) SN Senegal TF Trust Fund WBG World Bank Group The World Bank Senegal River Basin Multipurpose Water Resources Development Project 2 (P131323 and P131353) BASIC DATA Product Information Project ID Financing Instrument P131323 Investment Project Financing Original EA Category Current EA Category Full Assessment (A) Full Assessment (A) Approval Date Current Closing Date 05-Dec-2013 30-Jun-2021 Organizations Borrower Responsible Agency Ministry of Finance,Ministry of Economy and Organisation pour la Mise en Valeur du Fleuve Senegal Finance,Ministry of Finance,Ministry of Finance Project Development Objective (PDO) Original PDO The overall Program Development Objective is: to enhance regional integration among the riparian countries of the Senegal River Basin through OMVS for multi-purpose water resources development to foster improved community livelihoods. The MWRD2 Project Development Objective is: to improve coordinated management of water resources for socially, environmentally and economically sustainable development in the Senegal River Basin. Responding to the needs of OMVS and riparian country governments MWRD2 will have broadly similar components to MWRD1: (i) consolidating and further strengthening the institutional, legal and technical framework of the Senegal River Basin to better serve all four riparian countries, (ii) expanding the scope or coverage of concrete water resources development activities at the local level that generate significant income to reduce poverty, and (iii) defining and preparing new multipurpose infrastructure to harness the hydropower potential identified in the basin. MWRD2 activities will primarily be located in thepriority areas defined by studies in MWRD1. Each component will scale-up activities started under MWRD1, incorporating lessons learnt and taking forward successful elements for further development. OPS_TABLE_PDO_CURRENTPDO The World Bank Senegal River Basin Multipurpose Water Resources Development Project 2 (P131323 and P131353) Summary Status of Financing Net Ln/Cr/Tf Approval Signing Effectiveness Closing Commitment Disbursed Undisbursed IDA-53210 05-Dec-2013 28-Mar-2014 24-Jun-2014 30-Jun-2021 58.50 36.83 16.17 IDA-53220 05-Dec-2013 27-Feb-2014 24-Jun-2014 30-Jun-2021 54.50 28.46 21.10 IDA-53230 05-Dec-2013 26-Feb-2014 24-Jun-2014 30-Jun-2021 71.00 29.73 34.63 IDA-53660 05-Dec-2013 03-Mar-2014 24-Jun-2014 30-Jun-2021 28.50 16.53 9.32 TF-15949 28-Mar-2014 28-Mar-2014 25-Jun-2014 30-Jun-2021 4.00 1.62 2.38 TF-16001 28-Mar-2014 28-Mar-2014 25-Jun-2014 30-Jun-2021 12.00 5.96 6.04 Policy Waiver(s) Does this restructuring trigger the need for any policy waiver(s)? No I. PROJECT STATUS AND RATIONALE FOR RESTRUCTURING The Senegal River Basin Multipurpose Water Resources Development Project 2 (MWRD2). The Senegal River Basin Multipurpose Water Resources Development Project 2 (MWRD/PGIRE 2, P131323 and P131353) was approved in December 2013 and became effective in June 2014. It is the second phase of a broader program, whose objective is to enhance regional integration among the riparian countries of the Senegal River Basin through OMVS for multi-purpose water resources development to foster improved community livelihoods. MWRD2 ’s Project Development Objective (PDO) is to improve coordinated management of water resources for socially, environmentally and economically sustainable development in the Senegal River Basin. It has 3 components. Component 1 (Part A of the loan agreement) “Institutional Development for Water Resources”strengthens the institutional framework for the coordinated management of water resources in the basin from legal, organizational and financing standpoints. Component 2 (Part B of the loan agreement) “Multipurpose Water Resource Development” focuses on national investments with transboundary impacts on food security (i.e. irrigation, fishery and aquaculture) and public health (i.e. control of malaria of 4 neglected tropical water borne diseases). Finally, Component 3 (Part C of the loan agreement) “Infrastructure Management and Planning” focuses on the development of the next generation of regional infrastructure, including the development of multi-purpose dams and the transport corridor around navigation. The additional, blended Global Environmental Fund (GEF) financing (P131353) supports activities to improve the climate resilience in the Senegal River Basin, in all 3 components. Project status. The 7-year project is currently at 71% of its implementation (it has been under implementation for 5 years) and will close in June 2021. The “progress towards achieving the PDO” is rated satisfactory and “overall implementation progress” is rated moderately satisfactory. Results are increasingly visible on the ground for most components to the satisfaction of beneficiaries. Some of the results so far are, for example, 5369 ha of irrigated land developed or The World Bank Senegal River Basin Climate Change Resilience Development Project (P131323) rehabilitated (40% of project target); 4000 ha of agricultural land protected from flooding; 868 ha reforested; close to 3 million people or 75% of children and 74% of pregnant women in the river basin are sleeping under a treated bed net (95% of project target); 97% and 86% of school-aged children treated against schistosomiases and geohelminth (exceeding project target of 80%); increase in the value of fish sold or transformed by 4% (20% of project target); an improved tool on water resources planning and allocation is being used in preparation of the 2019 Permanent Water Commission meetings. Despite significant delays accumulated during the first 2 years, overall disbursement rate is now 50% and should reach 70% by the end of December 2019 and 89% in December 2020. By closing, the Project should be fully disbursed and achieve its intended objectives. Overall Project risk is rated high given elements noted in previous ISRs including on safeguard risks. Rationale for restructuring: The proposed restructuring is based on the findings and recommendations of the January 2018 mid-term review and January 2019 supervision mission and is in line with OMVS requests received between August and November 20181. More specifically, the proposed restructuring would: (i) sharpen the PDO, making it more precise and more in line with what the Project could be accountable for; (ii) rationalize the results’ framework, switching some PDO indicators with Intermediate-level indicators, sharpening the definition of some indicators making them more directly linked to project activities and more measurable and ensuring that targets are achievable; (iii) adjust disbursement profile based on more realistic projections, taken into account significant delays incurred in the first two years of project implementation and further delays since then in the signature of a few large contracts by the national implementing agencies and (iv) further clarify that activities under Part C.1(a) of the legal agreement finance only studies (and excludes their implementation or the implementation of any work related to the Koukoutamba dam, including its access road and transmission line), and (v) extend the scope of application of the performance contract between OMVS and ADRS, SAED, and SONADER to include the implementation by these entities of the pilot activities under Part B.4 of the legal agreement, financed by the LDCF Grant No. TF016001. 1Requests from Mali received 1 August 2018; from Guinea 17 September 2018; from Senegal 22 October 2018; from Mauritania 30 November 2018. The World Bank Senegal River Basin Climate Change Resilience Development Project (P131323) II. DESCRIPTION OF PROPOSED CHANGES Changes in the PDOs: Proposed changes to the PDOs will make them more precise and more in line with Project activities and what the Project could be accountable for. The PDO of the MWRD2 project will be changed from “to improve coordinated management of water resources for socially, environmentally, and economically sustainable development in the Senegal River basin” into “improve coordinated management of water resources in the Senegal River basin”. The Global Environmental Objective will be changed from “to strengthen transboundary water resources management in the Senegal River Basin including climate change adaptation and implementation of priority actions of the Strategic Action Plan” into “to strengthen OMVS capacity to integrate climate change into the coordinated management of water resources in the Senegal Basin” . A definition of “coordinated management” will be added for both PDOs (see detailed changes in paragraph IV). The World Bank Senegal River Basin Climate Change Resilience Development Project (P131323) Changes to the results ’framework are presented in the following table. The proposed changes involve switching some PDO indicators with Intermediate-level indicators, sharpening the definition of some indicators making them more precise, more directly linked to project activities and more measurable and ensuring that targets are achievable Achieved (as Original Revised Comments Original indicator Revised/ new indicator of June 2018) target Target PDO Level Indicators Direct project beneficiaries (number) 2 845 000 4 500 000 No changes No changes Female beneficiaries (number) 51% 51% No changes No changes Direct project beneficiaries benefitting from the pilot activities to build climate 0 5 000 No changes No changes resilience (number) New framework for partition of costs and benefits in the river basin is finalised, validated at country level, and No Yes No changes No changes presented to the Council of Ministers (CoM) (No/Yes) This indicator was Area provided with irrigation and revised due to higher 5 369 13 680 No changes 10 000 than expected cost of drainage services (ha) the works This was an Increased sale of fresh intermediate indicator. New PDO indicator, from intermediate and processed fish in It moved to PDO level 7% 20% indicators project sites due to its “result” (percentage) nature. Its sub-indicators, the number of children and Indicator moved to women between 15-49 Long lasting insecticide treated malaria intermediate indicators nets purchased and/or distributed 2 845 000 4 500 000 years old who sleep (component 2), as not under treated bed- (number) directly linked to PDO nets, are also moved to the intermediate level. This indicator monitors the coordinated management dimension of the PDO. The OMVS regional Operational means that steering committee the committee meets (Comité du Pilotage) at least once a year to New indicator composed of Yes review OMVS projects’ representative from the achievements and to riparian States is approve investments operational (No/Yes) for the coordinated management of water resources in the Senegal basin. Status in February 2019: Yes Improved tools are used in decision making on water allocation during the No Yes No changes No changes meeting of the Permanent Water Commission (No/Yes) The World Bank Senegal River Basin Climate Change Resilience Development Project (P131323) Intermediate indicators Component 1 : Institutional Development Improved knowledge of The original indicator climate change could be interpreted as amongst the if 2000 training beneficiaries of the sessions were given by climate change the project. The Climate change adaptation resilience adaptation/resilience training programs delivered to staff in proposed indicator , training program which is more focused OMVS National Cellules, National 150 2 000 75% delivered to OMVS, its on improved Agencies, and beneficiaries of the pilot National Cellules, and projects (number) knowledge of National Agencies participants, is more (percentage of result oriented. participants who score Status in June 2019: at least 75% in the final 80% test) New framework for partition of costs and benefits tested and validated at a No Yes No changes No changes technical level (No/Yes) Component 2: Multi-purpose Water Resources Development The indicator is now more specific, indicating what is meant by created and strengthened. Its target is also revised given the number of irrigation Operational entities in perimeters covered by charge of the the project. The target management of an of 50 refers to another Operational water users associations 50 irrigation system (with 25 created and/or strengthened type of association, the a statute and rules and ones related to typha that meet regularly) (% removal in the canals in and number) Senegal and Mali, which are not supported by this project, but another prepared in parallel (the Dutch-financed TF3 project). This indicator is redundant as the PDO indicator “Area provided with irrigation and drainage services (ha)” already reflects Hydraulic axes rehabilitated (km) 36 65.5 Marked for deletion the benefits of the activities. Indeed, the axes rehabilitated benefit some of the areas already included in the PDO indicator. The definition has been Slope stabilization through agroforestry Land area under 868 3 527 3 000 revised to adopt the development and reforestation (ha) sustainable land phrasing of the The World Bank Senegal River Basin Climate Change Resilience Development Project (P131323) management practices mandatory results’ (ha) indicator. The target was also revised considering due to higher unit cost than expected. Indicator Sales of fresh and processed fish in Indicator moved to PDO moved to project sites (%) level PDO level Proportion of target beneficiaries having received mass treatment to locally 96.5 80 No changes No changes occurring NTDs (%) Long lasting insecticide New intermediate indicator, from PDO treated malaria nets Status in February level indicators as not directly linked to 4 500 000 2019: 2 845 000 purchased and/or the PDO. distributed (number) The baseline is 74% for Proportion of children children and 65% for New intermediate indicator, from PDO and women (15-49 women. level indicators as not directly linked to 80 Status in February years old) sleeping the PDO. under a LLIN (%) 2019: 78% for children and 77% for women. Component 3: Infrastructure management and planning Hydraulic model of the basin completed and Mapping, modeling and other analytical validated. The updating tools for water resources management No Yes No changes No changes of the basin’s are developed or updated (No/Yes) cartography is underway. The project does not finance any activity related to the Diama’s A financing system for the long-term Completed maintenance fund, but maintenance of Diama dam is put into No Yes rehabilitation of the Yes it finances the place (No/Yes) Diama dam rehabilitation of the dam. The rehabilitation of the Diama dam will be completed in 2019. The World Bank Senegal River Basin Climate Change Resilience Development Project (P131323) Changes in disbursement profile: The proposed disbursement profile is based on more realistic projections taking into account the substantial delays incurred during the first two years of project implementation due to weak project management. Changes to the legal agreements The project documents (including the legal agreements) will clarify that the activity under component C.1(a) of the MWRD2 consists exclusively of the preparation of complementary studies (but not implementation). Implementation of climate change pilot projects (activities under component B.4) Originally, it was foreseen that OMVS would implement all pilot activities under component B.4. However, during implementation it has been decided that three National Agencies (ADRS, SAED, and SONADER), will implement these activities. Therefore, the performance contract that these agencies sign annually with OMVS, which currently includes only activities under component B.1, will be amended to also include activities under component B.4. This modification will only apply to the GEF and LDCF Grant Agreement as activities under component B.4 are exclusively financed by the LDCF Grant. The disbursement arrangements remains the same for activities under component B.4 as for activities under component B.1: disbursements will be done to special accounts in each of the implementing agencies and OMVS will continue to make the withdrawal requests to the Bank. III. SUMMARY OF CHANGES Changed Not Changed Project's Development Objectives ✔ Results Framework ✔ Disbursement Estimates ✔ Institutional Arrangements ✔ Other Change(s) ✔ Implementing Agency ✔ DDO Status ✔ Components and Cost ✔ Loan Closing Date(s) ✔ Cancellations Proposed ✔ Reallocation between Disbursement Categories ✔ Disbursements Arrangements ✔ Overall Risk Rating ✔ The World Bank Senegal River Basin Climate Change Resilience Development Project (P131323) Safeguard Policies Triggered ✔ EA category ✔ Legal Covenants ✔ Financial Management ✔ Procurement ✔ Implementation Schedule ✔ Economic and Financial Analysis ✔ Technical Analysis ✔ Social Analysis ✔ Environmental Analysis ✔ IV. DETAILED CHANGE(S) OPS_DETAILEDCHANGES_PDO_TABLE PROJECT DEVELOPMENT OBJECTIVE Current PDO The overall Program Development Objective is: to enhance regional integration among the riparian countries of the Senegal River Basin through OMVS for multi-purpose water resources development to foster improved community livelihoods. The MWRD2 Project Development Objective is: to improve coordinated management of water resources for socially, environmentally and economically sustainable development in the Senegal River Basin. Responding to the needs of OMVS and riparian country governments MWRD2 will have broadly similar components to MWRD1: (i) consolidating and further strengthening the institutional, legal and technical framework of the Senegal River Basin to better serve all four riparian countries, (ii) expanding the scope or coverage of concrete water resources development activities at the local level that generate significant income to reduce poverty, and (iii) defining and preparing new multipurpose infrastructure to harness the hydropower potential identified in the basin. MWRD2 activities will primarily be located in thepriority areas defined by studies in MWRD1. Each component will scale-up activities started under MWRD1, incorporating lessons learnt and taking forward successful elements for further development. The World Bank Senegal River Basin Climate Change Resilience Development Project (P131323) Proposed New PDO The revised MWRD2 PDO is to improve coordinated management of water resources in the Senegal River Basin. The revised GEO is to strengthen OMVS capacity to integrate climate change into the coordinated management of water resources in the Senegal River basin. In this context, "coordinated management" means the concerted development of water uses in the basin between OMVS member States which is ensured through two main mechanisms: (i) the Senegal River Basin Master Plan, approved by the Council of Ministers of the four member states in 2011: all activities financed by the project should be in accordance it and (ii) the regional Project steering committee (Comité Regional du Pilotage du PGIRE) with representatives from the 4 member states which approves the Project annual implementation plan and budget. OPS_DETAILEDCHANGES_DISBURSEMENT_TABLE DISBURSEMENT ESTIMATES Change in Disbursement Estimates Yes Year Current Proposed 2014 11,500,000.00 0.00 2015 25,000,000.00 5,000,000.00 2016 29,000,000.00 36,500,000.00 2017 43,000,000.00 23,500,000.00 2018 36,000,000.00 33,500,000.00 2019 30,000,000.00 46,000,000.00 2020 25,000,000.00 46,000,000.00 2021 13,000,000.00 22,000,000.00 The World Bank Senegal River Basin Climate Change Resilience Development Project (P131323) . Results framework COUNTRY: Western Africa Senegal River Basin Climate Change Resilience Development Project Project Development Objectives(s) The overall Program Development Objective is: to enhance regional integration among the riparian countries of the Senegal River Basin through OMVS for multi-purpose water resources development to foster improved community livelihoods. The MWRD2 Project Development Objective is: to improve coordinated management of water resources for socially, environmentally and economically sustainable development in the Senegal River Basin. Responding to the needs of OMVS and riparian country governments MWRD2 will have broadly similar components to MWRD1: (i) consolidating and further strengthening the institutional, legal and technical framework of the Senegal River Basin to better serve all four riparian countries, (ii) expanding the scope or coverage of concrete water resources development activities at the local level that generate significant income to reduce poverty, and (iii) defining and preparing new multipurpose infrastructure to harness the hydropower potential identified in the basin. MWRD2 activities will primarily be located in thepriority areas defined by studies in MWRD1. Each component will scale-up activities started under MWRD1, incorporating lessons learnt and taking forward successful elements for further development. Project Development Objective Indicators by Objectives/ Outcomes RESULT_FRAME_TBL_PDO Indicator Name DLI Baseline Intermediate Targets End Target 1 2 3 4 5 improve coordinated management of water resources in the Senegal River Basin (Action: This Objective has been Revised) Direct project beneficiaries 0.00 200,000.00 500,000.00 1,000,000.00 4,500,000.00 (Number) Female beneficiaries 0.00 5.00 10.00 15.00 20.00 25.00 51.00 (Percentage) Direct project beneficiaries 0.00 5,000.00 benefiting from the pilot The World Bank Senegal River Basin Climate Change Resilience Development Project (P131323) RESULT_FRAME_TBL_PDO Indicator Name DLI Baseline Intermediate Targets End Target 1 2 3 4 5 activities to build climate resilience (Number) Area provided with irrigation and drainage 0.00 10,000.00 services (ha) (CRI, Hectare(Ha)) Action: This indicator has been Revised Area provided with irrigation and drainage 0.00 3,000.00 services - New (ha) (CRI, Hectare(Ha)) The new framework for partition of costs and benefits in the river basin is No Yes finalized and presented to the CoM (Yes/No) Long-lasting insecticide- treated malaria nets purchased and/or 0.00 5,000,000.00 5,000,000.00 7,000,000.00 4,500,000.00 distributed (number) (Number) Action: This indicator has been Marked for Deletion Proportion of children having slept under LLINs 74.00 80.00 the night before the survey (Percentage) The World Bank Senegal River Basin Climate Change Resilience Development Project (P131323) RESULT_FRAME_TBL_PDO Indicator Name DLI Baseline Intermediate Targets End Target 1 2 3 4 5 Action: This indicator has been Marked for Deletion Proportion of women 15-49 years sleeping under an LLIN the night 65.00 80.00 before the surveys (Percentage) Action: This indicator has been Marked for Deletion Improved tools are used in decision making on water allocation during the No Yes meetings of the Permanent Water Commission (Yes/No) Increased sale of fresh and processed fish in project 0.00 20.00 sites (Percentage) Rationale: Action: This indicator is This was an intermediate indicator before restructuring New The OMVS regional steering committee (Comité du Pilotage ) composed of No Yes representative from the riparian States is operational (Yes/No) The World Bank Senegal River Basin Climate Change Resilience Development Project (P131323) RESULT_FRAME_TBL_PDO Indicator Name DLI Baseline Intermediate Targets End Target 1 2 3 4 5 Action: This indicator is New PDO Table SPACE Intermediate Results Indicators by Components RESULT_FRAME_TBL_IO Indicator Name DLI Baseline End Target 1. Institutional Development New framework for partition of costs and benefits tested and No Yes validated at a technical level (Yes/No) Improved knowledge of climate change amongst the beneficiaries of the climate change adaptation/resilience training 0.00 75.00 program delivered to OMVS, its National Cellules, and National Agencies (Percentage) Rationale: Action: This indicator has been Revised (percentage of participants who score at least 75% in the final test) 2. Multi-purpose Water Resources Development Hydraulic axes - canals supplying irrigation areas - rehabilitated 0.00 65.50 (Kilometers) Action: This indicator has been Marked for Deletion Operational entities in charge of the management of an irrigation system (with a statute and rules and that meet regularly) 0.00 25.00 (Number) Action: This indicator has been Revised The World Bank Senegal River Basin Climate Change Resilience Development Project (P131323) RESULT_FRAME_TBL_IO Indicator Name DLI Baseline End Target Sales of fresh and processed fish in project sites (Percentage) 0.00 20.00 Action: This indicator has been Marked for Deletion Proportion of target beneficiaries having received mass 0.00 80.00 treatment locally occurring NTDs (Percentage) Land area under sustainable land management practices (ha) 0.00 3,000.00 (Hectare(Ha)) Action: This indicator has been Revised Long lasting insecticide treated malaria nets purchased and/or 0.00 4,500,000.00 distributed (number) (Number) Rationale: Action: This indicator is New This indicator was a PDO level before restructuring Proportion of children sleeping under a LLIN (%) (Percentage) 74.00 80.00 Rationale: Action: This indicator is New This was a PDO indicator before restructuring Proportion of women (15-49 years old) sleeping under a LLIN (%) 65.00 80.00 (Percentage) Rationale: Action: This indicator is New This was a PDO indicator before restructuring 3. Infrastructure Management and Planning Mapping, modeling, and other analytical tools for WRM No Yes developed or updated (Yes/No) The World Bank Senegal River Basin Climate Change Resilience Development Project (P131323) RESULT_FRAME_TBL_IO Indicator Name DLI Baseline End Target Completed rehabilitation of the Diama dam (Yes/No) No Yes Action: This indicator is New IO Table SPACE .