The World Bank Promoting Community-based Climate Resilience in the Fisheries Sector (P164257) REPORT NO.: RES47399 RESTRUCTURING PAPER ON A PROPOSED PROJECT RESTRUCTURING OF PROMOTING COMMUNITY-BASED CLIMATE RESILIENCE IN THE FISHERIES SECTOR APPROVED ON MARCH 7, 2018 TO JAMAICA ENVIRONMENT, NATURAL RESOURCES & THE BLUE ECONOMY LATIN AMERICA AND CARIBBEAN Regional Vice President: Carlos Felipe Jaramillo Country Director: Lilia Burunciuc Regional Director: Anna Wellenstein Practice Manager/Manager: Valerie Hickey Task Team Leader(s): Maja Murisic, Natalia Magradze The World Bank Promoting Community-based Climate Resilience in the Fisheries Sector (P164257) ABBREVIATIONS AND ACRONYMS Government of Jamaica GOJ Financial Management FM Ministry of Agriculture and Fisheries MoAF National Fisheries Authority NFA Project Development Objective PDO Project Implementation Unit PIU Pilot Program for Climate Resilience PPCR The World Bank Promoting Community-based Climate Resilience in the Fisheries Sector (P164257) BASIC DATA Product Information Project ID Financing Instrument P164257 Investment Project Financing Original EA Category Current EA Category Partial Assessment (B) Partial Assessment (B) Approval Date Current Closing Date 07-Mar-2018 31-Mar-2023 Organizations Borrower Responsible Agency Ministry of Industry, Commerce, Agriculture and Jamaica Fisheries 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 The PDO is to increase the adoption of climate resilient practices among targeted fishing and fish farming communities in Jamaica. OPS_TABLE_PDO_CURRENTPDO The World Bank Promoting Community-based Climate Resilience in the Fisheries Sector (P164257) Summary Status of Financing (US$, Millions) Net TF Approval Signing Effectiveness Closing Commitment Disbursed Undisbursed TF-A6559 07-Mar-2018 28-Mar-2018 28-Mar-2018 31-Mar-2023 4.88 1.29 3.59 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 Restructuring Paper seeks Country Director approval for the restructuring of the Promoting Community- based Climate Resilience in the Fisheries Sector Project (P164257). The proposed restructuring would make the following changes: (i) changes to the Results Framework; and (ii) adjust components and cost. B. Project Status 2. The Promoting Community-based Climate Resilience in the Fisheries Sector Project is a five-year grant project funded by the Climate Investment Funds/Pilot Program for Climate Resilience (PPCR) in the amount of US$4.88m. The project seeks to increase the adoption of climate resilient practices among targeted fishing and fish farming communities in Jamaica. The Project is being implemented by the Ministry of Agriculture and Fisheries (MoAF) in close coordination with the National Fisheries Authority (NFA). 3. After delays during the first three years of implementation, the project is now steadily progressing. As of June 2021, 22.3 percent (approx. US$ 1.09m) of the total grant has been disbursed under the project. Historically, the project has been granted limited fiscal space by the Government of Jamaica (GoJ) due to its slow progress as well as need for fiscal control. The approved budget for Jamaica’s current fiscal year (April 2021 - March 2022) was approximately US$0.68m, which, if fully executed, will leave US$3.2m remaining to be spent in the last year of the project from April 2022 – March 2023. 4. Given limited resources under the grant, and in light of challenges the project faced, including delays with procurement processes, underbudgeted activities due to underestimation of market costs of contractual services, project activities were prioritized to focus on areas that are feasible given the implementation timeline yet, with the greatest expected impact, and the most availability of funding from other sources. Implementation progress by component is as follows: 5. Component 1 - Strengthening the Fisheries Policy and Regulatory Framework– Over the course of the past few months, the activities under this component have been consolidated to ensure efficiency and maximize The World Bank Promoting Community-based Climate Resilience in the Fisheries Sector (P164257) synergies among different planned activities. The TOR for the consultancy to develop a strategy, action plan, and guidelines for the National Fisheries and Aquaculture Policy has been finalized and later re-scoped to reflect current market conditions. Work will commence in July-August 2021. In addition, the final report on the Aquaculture Value Chain Assessment has been prepared. 6. Component 2 – Diversification and Fisheries-based Alternative Livelihoods - There was significant progress made in undertaking the activities under this component aimed at Diversification and Fisheries-based Alternative Livelihoods, which included refurbishing and upgrading the existing seed stock Government Hatchery. The design of a climate proof, bio security Hatchery and an operational plan has been completed and approved. The result of this upgrade and renovation will see an improvement in the availability of advanced fryers to supply the aquaculture industry. The hiring of a Project Manager to oversee the renovation and upgrade of the Government Hatchery is underway and expected to be completed in September 2021. 7. Preparation of the business plan for the mariculture/polyculture demonstration facility has been completed. A consultancy to assess pelagic stocks and develop related management plans is currently in progress with the inception report already submitted. A consultancy service to conduct an assessment of sub-projects has also been successfully completed. A consultancy to provide assessment of the feed production for the aquaculture sub- sector and develop alternative feed production options and associated business plan is pending further advancement in the procurement process following necessary re-scoping of the initially planned set of activities and Bank’s no-objection to the revised terms of reference. 8. Component 3 - Capacity Building and Awareness Raising – Baseline assessment of gender and youth dynamics in the fisheries sub-sector in selected communities, as well as a knowledge, attitudes and perceptions assessment in the targeted communities have been conducted. In addition, the terms of reference for the development of the climate projections in the Fisheries sector have been developed and the work is expected to be initiated by the end of August 2021. 9. The Financial Management (FM) performance has improved since the last FM assessment from moderately unsatisfactory to moderately satisfactory. The latest rating is mainly due to internal control weaknesses from delays in establishing an accounting system, and not having an FM manual to guide activities. Of the expenditures to date, 54 percent represent project management/administrative costs. There are no overdue IFRs or audit reports. The next audit report is due September 30, 2021. 10. On the procurement side, the project faced a number of challenges associated with procurement processes including underestimating the market cost of several consultancies, delays with evaluation of expressions of interest and proposals, as well as delays due to travel restrictions in light of COVID-19. However, the Project Implementation Unit (PIU) has addressed them gradually by adjusting work plans and delivery modes for project activities, including amendments of several contracts. Currently, out of 21 activities envisaged in the Procurement Plan, 12 contracts have been signed so far, of which 10 contracts are completed and 2 are still under execution. 4 contracts are about to be awarded and/or signed (one of them is awaiting the Permanent Secretary’s signature and the other one is awaiting Procurement Committee approval). The project is expected to make further progress with the PIU fully staffed and the project continuing to be of high priority for GoJ given that it is well aligned with the country’s national development plans, climate change policy framework, and economic recovery post-COVID- 19 pandemic. C. Rationale for Restructuring 5 The World Bank Promoting Community-based Climate Resilience in the Fisheries Sector (P164257) 11. In light of the fact that most of the activities under the project were underbudgeted due to underestimating the market costs of consultancies, and given the observed challenges with procurement processes and limited time remaining for project implementation, re-scoping and simplification/consolidation are needed in order to facilitate accelerated implementation of project activities and achievement of the PDO. Following the discussions with GOJ, a request for restructuring was received by the World Bank on May 31, 2021, with the objective to prioritize activities given the remaining budget and revise the Results Framework accordingly. Against this backdrop, this Restructuring Paper proposes to rescope the project activities and revise the components budget allocation and the current Results Framework accordingly. II. DESCRIPTION OF PROPOSED CHANGES 12. Proposed changes (namely, 1) scope adjustment, 2) modifications to the Results Framework, and 3) reallocation of funds among components) will allow the Grant Recipient to finalize ongoing project activities in a satisfactory manner, fully disburse remaining grant resources, and successfully implement the Project. In particular, the following changes are being introduced as part of the proposed project restructuring: Scope adjustment to align with implementation conditions 13. The Project scope will be streamlined given changing implementation dynamics including: (a) adjusted community and NFA and MoFA priorities; (b) unforeseen cost variations of works and the need to adjust necessary budget allocations for the activities in line with current market circumstances and pricing; and (c) the need for a more tightly focused, clearly defined and impactful set of activities to ensure sustainability of interventions within the timeframe of the Project. 14. Considering limited resources under the grant, a prioritization of the activities was carried out to focus on those that can realistically be completed within the project lifetime while achieving the PDO with a strengthened focus on diversification of livelihoods. Additional criteria for the activities’ prioritization included considerations of importance and availability of funding for such activities from other sources. Under Component 1, the TORs for consultancies were streamlined and made more tightly focused to ensure timely execution. Additionally, aquaculture value chain assessment will be conducted. 15. Under Component 2, the analysis that was undertaken on the identification of the menu of options for mariculture/polyculture sub-projects will serve as a basis for the selection of sub-projects by the Project Steering Committee which is a big priority under the Project. Considering challenges for the fisherfolks posed by COVID-19, when identifying the menu of options for sub-projects and selecting the sub-projects for implementation, particular emphasis will be placed on the livelihood diversification in the context of overall economic recovery post-pandemic. Given limited resources under the grant, the training activities under this component will be delivered by NFA in close collaboration with Rural Agricultural Development Authority. There are no major changed proposed to activities under Component 3. Detailed proposed changes along with the budgetary implications are provided in the Appendix 1 – Work Program submitted by GOI. Modifications to the Results Framework 16. Taking into account the rescoping of project activities described above, proposed revisions of the project’s Results Framework, as requested by the GOJ, would result in changing the number of PDO level indicators from five to four, while the number of intermediate results indicators would increase from five to six. This 6 The World Bank Promoting Community-based Climate Resilience in the Fisheries Sector (P164257) change reflects the move of one indicator from the PDO level to intermediate indicator level to better reflect the newly prioritized project activities. The decrease in the number of PDO indicators will not impact the Project’s ability to achieve its PDO. It will rather ensure that all aspects of the PDO are supported by appropriate activities and measurable indicators at appropriate levels. The table below summarizes proposed changes, as well as the rationale for introducing them. 7 The World Bank Promoting Community-based Climate Resilience in the Fisheries Sector (P164257) Project Development Objective Proposed Changes Rationale Indicators by Objectives/ Outcomes Targeted fishers that adopt climate No Change N/A resilient fishing practices (Number) Revised target from 12 to 10 Given COVID-19 impact on fisher Targeted fisher groups that adopt groups and also to reflect a more alternative livelihoods (Number) realistic outcome, the target was decreased. Revised target from 8 to 4 Given COVID-19 impact on fisher Targeted fish farming groups that groups and to temper a very adopt climate resilient aquaculture ambitious and unrealistic initial practices (Number) outcome, the traget was decreased. Share of women among targeted fisher No Change N/A groups and fish farming groups that adopt climate resilience practices (Percentage) Marine protected areas under Move to internediate results Given that this indicator does not community-led sustainable fisheries indicators level directly relate to the PDO, it is management (Number) proposed to move it to intermediate level with no change in target. Intermediate Results Indicators Proposed Changes Rationale IR1: Strategy and Action Plan for the Revised to “Strategy and Action The revision now includes not only National Fisheries and Aquaculture Plan for the Draft National Fisheries approval but also adoption of the Policy submitted for approval by the and Aquaculture Policy submitted Strategy and Action Plan and the level MoAF (Yes/No) for approval and adoption at which it will be approved was taken (Yes/No)” out not to preempt it. IR2: Targeted communities that receive No Change N/A training in climate resilient fisheries and aquaculture practices IR3: Targeted communities that receive Revised target from 32 to 10 The target was revised to temper the training in climate resilient fisheries initial ambition for this indicator to be and aquaculture practices under the more realistic in achieving this project outcome. IR4: Targeted people reached by No Change N/A awareness raising and behavior change activities supported by the project (Number) IR5: Community-based fisheries and No Change N/A aquaculture organizations with increased capacity to implement climate resilient activities (number) IR6: Marine protected areas under Move from the PDO level indicators Given that this indicator does not community-led sustainable fisheries directly relate to the PDO, it is management (Number) proposed to move it to intermediate level with no change in target. 8 The World Bank Promoting Community-based Climate Resilience in the Fisheries Sector (P164257) Minor reallocation of funds 17. There will reallocation of funds among activities within component 1 and 2 and only $30K reallocation from Component 2 to Component 1. No budget reallocation is envisaged for Component 3 and 4. III. SUMMARY OF CHANGES Changed Not Changed Results Framework ✔ Components and Cost ✔ Implementing Agency ✔ Project's Development Objectives ✔ Loan Closing Date(s) ✔ Cancellations Proposed ✔ Additional Financing Proposed ✔ Reallocation between Disbursement Categories ✔ Disbursements Arrangements ✔ Disbursement Estimates ✔ Change in Overall Risk Rating ✔ Safeguard Policies Triggered ✔ EA category ✔ Legal Covenants ✔ Institutional Arrangements ✔ Financial Management ✔ Procurement ✔ Implementation Schedule ✔ Other Change(s) ✔ Economic and Financial Analysis ✔ Technical Analysis ✔ Social Analysis ✔ Environmental Analysis ✔ 9 The World Bank Promoting Community-based Climate Resilience in the Fisheries Sector (P164257) IV. DETAILED CHANGE(S) OPS_DETAILEDCHANGES_RESULTS_TABLE RESULTS FRAMEWORK Project Development Objective Indicators PDO_IND_TABLE Targeted fishers that adopt climate resilient fishing practices (number of fishers) Unit of Measure: Number Indicator Type: Custom Baseline Actual (Current) End Target Action Value 0.00 0.00 1,800.00 No Change Date 30-Nov-2017 05-Jun-2020 31-Mar-2023 Targeted fisher groups that adopt alternative livelihoods (number of fisher groups) Unit of Measure: Number Indicator Type: Custom Baseline Actual (Current) End Target Action Value 0.00 0.00 10.00 Revised Date 30-Nov-2017 05-Jun-2020 31-Mar-2023 Targeted fish farming groups that adopt climate resilient aquaculture practices (number of fish farming groups) Unit of Measure: Number Indicator Type: Custom Baseline Actual (Current) End Target Action Value 0.00 0.00 4.00 Revised Date 30-Nov-2017 05-Jun-2020 31-Mar-2023 Share of women among targeted fisher groups and fish farming groups that adopt climate resilience practices (percentage) Unit of Measure: Percentage Indicator Type: Custom Baseline Actual (Current) End Target Action Value 0.00 0.00 25.00 No Change Date 30-Nov-2017 05-Jun-2020 31-Mar-2023 Number of marine protected areas under community-led sustainable fisheries management (number) Unit of Measure: Number 10 The World Bank Promoting Community-based Climate Resilience in the Fisheries Sector (P164257) Indicator Type: Custom Baseline Actual (Current) End Target Action Value 0.00 0.00 15.00 Marked for Deletion Date 30-Nov-2017 05-Jun-2020 31-Mar-2023 Intermediate Indicators IO_IND_TABLE IR 1: Strategy and Action Plan for the National Fisheries and Aquaculture Policy submitted for approval by the MICAF Unit of Measure: Yes/No Indicator Type: Custom Baseline Actual (Current) End Target Action Value No No Yes No Change Date 30-Nov-2017 05-Jun-2020 31-Mar-2023 IR 2: Government personnel with increased competency in climate resilient fisheries practices and management (number of people) Unit of Measure: Number Indicator Type: Custom Baseline Actual (Current) End Target Action Value 0.00 0.00 40.00 No Change Date 30-Nov-2017 05-Jun-2020 31-Mar-2023 IR 3: Targeted communities that receive training in climate resilient fisheries and aquaculture practices under the Project (number of communities) Unit of Measure: Number Indicator Type: Custom Baseline Actual (Current) End Target Action Value 0.00 0.00 10.00 Revised Date 30-Nov-2017 05-Jun-2020 31-Mar-2023 IR 4: Targeted people reached by awareness raising and behavior change activities supported by the Project (number of people) Unit of Measure: Number Indicator Type: Custom Baseline Actual (Current) End Target Action 11 The World Bank Promoting Community-based Climate Resilience in the Fisheries Sector (P164257) Value 0.00 0.00 75,000.00 No Change Date 30-Nov-2017 05-Jun-2020 31-Mar-2023 IR 5: Community-based fisheries and aquaculture organizations with increased capacity to implement climate resilient activities (number of organizations) Unit of Measure: Number Indicator Type: Custom Baseline Actual (Current) End Target Action Value 0.00 0.00 15.00 Revised Date 30-Nov-2017 05-Jun-2020 31-Mar-2023 IR6: Number of marine protected areas under community-led sustainable fisheries management Unit of Measure: Number Indicator Type: Custom Baseline Actual (Current) End Target Action Value 0.00 0.00 10.00 New Date 30-Nov-2017 05-Jun-2020 31-Mar-2023 OPS_DETAILEDCHANGES_COMPONENTS_TABLE COMPONENTS Current Current Proposed Proposed Cost Action Component Name Component Name Cost (US$M) (US$M) 1. Strengthening the Fisheries 1. Strengthening the Fisheries 0.57 Revised Policy and Regulatory 0.60 Policy and Regulatory Framework Framework 2. Diversification and Fisheries- 2. Diversification and Fisheries- 2.68 Revised 2.65 based Alternative Livelihoods based Alternative Livelihoods 3. Capacity Building and 3. Capacity Building and 0.97 No Change 0.97 Awareness Raising Awareness Raising 4. Project Management and 4. Project Management and Monitoring and Evaluation 0.66 No Change Monitoring and Evaluation 0.66 (M&E) (M&E) TOTAL 4.88 4.88 12 The World Bank Promoting Community-based Climate Resilience in the Fisheries Sector (P164257)