The World Bank Nigeria - Public/Private Partnership Program (P115386) REPORT NO.: RES30769 DOCUMENT OF THE WORLD BANK RESTRUCTURING PAPER ON A PROPOSED PROJECT RESTRUCTURING OF NIGERIA - PUBLIC/PRIVATE PARTNERSHIP PROGRAM APPROVED ON MARCH 17, 2011 TO MINISTRY OF FINANCE FINANCE & MARKETS AFRICA Regional Vice President: Makhtar Diop Country Director: Rachid Benmessaoud Senior Global Practice Director: Ceyla Pazarbasioglu-Dutz Practice Manager/Manager: James Seward Task Team Leader: Guillemette Sidonie Jaffrin The World Bank Nigeria - Public/Private Partnership Program (P115386) I. BASIC DATA Product Information Project ID Financing Instrument P115386 Investment Project Financing Original EA Category Current EA Category Approval Date Current Closing Date 17-Mar-2011 29-Dec-2017 Organizations Borrower Responsible Agency Ministry of Finance Ministry of Finance Project Development Objective (PDO) Original PDO The overall development objective (PDO) for this APL Program is to increase private investment in the Nigeria PPP infrastructure market and specifically the core infrastructure sectors. The development objective for Phase I is to establish effective institutionaland technical mechanisms and instruments for origination and development of PPP projects. Summary Status of Financing Net Ln/Cr/Tf Approval Signing Effectiveness Closing Commitment Disbursed Undisbursed IDA-48810 17-Mar-2011 25-Sep-2011 15-Dec-2011 29-Dec-2017 29.21 18.14 .43 Policy Waiver(s) Does this restructuring trigger the need for any policy waiver(s)? No II. SUMMARY OF PROJECT STATUS AND PROPOSED CHANGES The World Bank Nigeria - Public/Private Partnership Program (P115386) Background. In light of the unsatisfactory performance of the PPP project and considering the December 2017 closing date, the Federal Ministry of Finance requested in June 2016 to cancel US$85 from the US$115 million project. The cancellation became effective in December 2016. Following this partial cancellation, it was decided to focus on a limited number of PPP transactions which could be completed by the project closing date: silos, Kiri Kiri Lighter Terminal and Onitsha river port. Project status. Project implementation significantly improved in 2017, following the US$85 million cancellation. There has been strong progress on the three transactions supported by the project. Silos: following a competitive tendering process, the first round of negotiations has been completed with each bidder for the 22 silos to be concessioned. Negotiations with bidders with outstanding issues are ongoing and should be completed by mid-January 2018. The review of the draft contracts by the Attorney General’s office is planned for late January-early February 2018. The concession agreements should be sent for approval to the Federal Executive Council (FEC) by end February 2018, with a planned signature of the agreements in March 2018. Kiri Kiri Lighter Terminal (KLT): the Request for Proposal for KLT was sent to selected bidders in July 2017. The evaluation of the technical proposals has been completed and the opening of the financial proposals is planned for early January 2018. Negotiations with the selected bidder should be completed by end January 2018; the draft contract agreement should be submitted to the Attorney General’s office in February 2018; the concession agreement should be sent for approval to FEC in early March 2018, with a planned signature of the agreement by end March – early April 2018. Onitsha river port: the closing date for the Request for Proposal process is December 20, 2017. The evaluation of the technical and financial bids will take place in January 2018; the negotiations with the selected bidder are planned for February 2018; the draft concession agreement should be submitted to the Attorney General’s office in March 2018; the concession agreement should be sent for approval to FEC in April 2018, with a planned signature of the agreement in early May 2018. Proposed restructuring. The current project closing date is December 29, 2017. As indicated above, there has been major progress on the three PPP transactions supported by the project in 2017. In particular, the PPP transaction process is almost complete for the concessioning of 22 silos, which is a major breakthrough. A six-month project closing date extension is required to ensure that the three transactions (supported by transactions advisers financed by the project) will be completed by the revised project closing date (June 2018), which involves (as described above): the approval by FEC of the concession agreements and the signature of the agreements. In addition, a reallocation between categories is required, as two categories do not have sufficient funds to cover expenses incurred in 2017 and additional expenses required for January to June 2018 (Category 1C: Project Implementation and Monitoring and Evaluation; and Category 2: Operating Costs). See section III "Reallocation between disbursement categories" below. It has been agreed between the Federal Ministry of Finance and the World Bank that this would be the only (and final) project closing date extension (no further extension will be considered). In any case, there would not be sufficient financial resources to further extend the project (with US$0.43 million undisbursed). III. DETAILED CHANGES LOAN CLOSING DATE(S) The World Bank Nigeria - Public/Private Partnership Program (P115386) Original Revised Proposed Proposed Deadline Ln/Cr/Tf Status Closing Closing(s) Closing for Withdrawal Applications IDA-48810 Effective 29-Dec-2017 30-Jun-2018 30-Oct-2018 REALLOCATION BETWEEN DISBURSEMENT CATEGORIES Current Current Actuals + Proposed Disbursement % Ln/Cr/TF Expenditure Allocation Committed Allocation (Type Total) Category Current Proposed IDA-48810- Gds,CS incl 001 audits, 3,000,000.00 2,289,138.32 2,300,000.00 100.00 100.00 Currency: Trng&Wkshps- XDR Pt1 Gds,CS incl audits,Trng&Wk 6,500,000.00 4,416,957.54 6,900,000.00 100.00 100.00 shps -Pt2 Gds,CS incl audits, 1,000,000.00 987,075.53 1,100,000.00 100.00 100.00 Trng&Wkshps- Pt3 Operating Costs 700,000.00 694,168.06 900,000.00 100.00 100.00 Refund of PPF 1,169,071.00 1,169,070.89 1,169,071.00 Unallocated 0.00 0.00 0.00 Total 12,369,071.00 9,556,410.34 12,369,071.00