The World Bank Andhra Pradesh Disaster Recovery Project (P154847) REPORT NO.: RES48142 DOCUMENT OF THE WORLD BANK RESTRUCTURING PAPER ON A PROPOSED PROJECT RESTRUCTURING OF ANDHRA PRADESH DISASTER RECOVERY PROJECT APPROVED ON JUNE 17, 2015 TO REPUBLIC OF INDIA URBAN, RESILIENCE AND LAND SOUTH ASIA Regional Vice President: Hartwig Schafer Country Director: Junaid Kamal Ahmad Regional Director: John A. Roome Practice Manager/Manager: Abhas Kumar Jha Task Team Leader(s): Atishay Abbhi, Deepak Singh The World Bank Andhra Pradesh Disaster Recovery Project (P154847) I. BASIC DATA Product Information Project ID Financing Instrument P154847 Investment Project Financing Original EA Category Current EA Category Full Assessment (A) Full Assessment (A) Approval Date Current Closing Date 17-Jun-2015 30-Sep-2021 Organizations Borrower Responsible Agency Revenue and Disaster Management Department, Republic of India Government of Andhra Pradesh Project Development Objective (PDO) Original PDO The Project Development Objectives (PDO) are to restore, improve, and enhance resilience of public services, environmental facilities, and livelihoods in Targeted Communities, and to enhance the capacity of state entities to respond promptly and effectively toan eligible crisis or emergency. Summary Status of Financing (US$, Millions) Net Ln/Cr/Tf Approval Signing Effectiveness Closing Commitment Disbursed Undisbursed IDA-56940 17-Jun-2015 16-Jul-2015 28-Aug-2015 30-Sep-2021 172.50 118.66 53.84 The World Bank Andhra Pradesh Disaster Recovery Project (P154847) Policy Waiver(s) Does this restructuring trigger the need for any policy waiver(s)? No II. SUMMARY OF PROJECT STATUS AND PROPOSED CHANGES 2. Context: The Project was prepared to support the Government of Andhra Pradesh’s (GoAP) recovery efforts after the very severe cyclone storm Hudhud made landfall on the coast of Andhra Pradesh in 2014. The Project’s Development objective is to restore, improve, and enhance resilience of public services, environmental facilities, and livelihoods in targeted Communities, and to enhance the capacity of state entities to respond promptly and effectively to an eligible crisis or emergency. 3. The project is aiming to achieve the stated objective through six components: (i) reducing the vulnerability of the city’s electrical network by laying the power distribution system underground; (ii) restoring connectivity and shelter infrastructure through investments in permanently restoring, upgrading, and increasing resilience towards future disasters of roads (rural and major district roads) and cyclone shelters; (iii) restoring and protecting beach front in the city of Vishakhapatnam; (iv) restoring environmental services and facilities including restoration/creation of shelterbelts/windbreaks, support to farm forestry/plantations through nursery support for poor/vulnerable coastal families, regeneration of critical patches of mangroves along the coast to build disaster resilience, and restoring/supporting livelihood opportunities in the cyclone affected areas; (v) enhancing the capabilities of GoAP entities and other stakeholders in managing disaster risks, enhancing preparedness, and achieving resilient recovery; and (vi) Project implementation support. Project Status 4. The last Implementation Support and Review (ISR) mission was carried out virtually during September 20-24, 2021. The PDO remains relevant to the India Country Partnership Framework (2018-2022) and current DO and IP ratings are currently MS. Current credit disbursements stands at US$118.66 million (68.69%). This Restructuring Paper seeks approval to extend the closing date to March 31, 2022 from current closing date of September 30, 2021. Rationale for restructuring: All contracts under the project have been awarded and are under implementation. However, certain activities will not be completed by current project closing date (September 30, 2021). This is largely on account of (i) the COVID-19 Pandemic due to which all civil works had to be halted for around 3 months; and (ii) slow progress due to non- payment of pending bills to contractors and service providers. The component wise progress and balance works to be completed is provided below: 7. Component 1 (Resilient Electrical Network): An underground cable network comprising of 33KV, 11KV, 415V, and 230V to replace the existing overhead lines is being laid and over 40% of works are still pending. In terms of consumer connections, around 35000 out of the revised 80,000 target consumer accounts are yet to be covered by the network so far and will require around six more months for completion. The World Bank Andhra Pradesh Disaster Recovery Project (P154847) 8. Component 2 (Restoration of connectivity and shelter infrastructure): Around 2.4 million of the targeted 2.52 million people have been provided access to restored and improved rural roads. Over 560 kms of rural roads out of the proposed revised target of 568 kms and 4 bridges have been completed by Panchayati Raj Engineering Department (PRED). 95 of the 96 packages for rural roads managed by PRED have been completed. Of the target 250 kms of non-rural (major district) roads, 246 kms have been rehabilitated, one bridge has been completed and one is under construction by Roads and Bridges Department (RBD). Of the total 28, 27 packages for rural roads managed by RBD are completed. 9. Component 3 (Restoration and protection of beachfront): The contract for restoration of targeted 3kms of RK Beach was awarded in October 2020. However, the work has not yet been mobilized, given delays in getting statutory CRZ approval. The work of Restoration and redevelopment of 380 acres of the Kailasagiri Hill was mobilized in October 2020 and contractor has been able to accomplish about 24% of the work, and the remaining works are estimated to take another six months. 10. Component 4 (Restoration of environmental services and livelihoods support): 2,802 men and 3,128 women, i.e. a total of 5930 persons belonging to 51 Vana Suraksha Samiti’s (VSS) gained a n average employment of about 149 days, generating a total of 881,584 person days including 403,483 work days for men and 478,101 for women. The project has achieved 230% of the original target of 25 million with 57.33 m saplings raised and distributed. A total of 811 ha of Casuarina Shelterbelts and 87 ha of Palmyrah have been planted. 135 ha of mangrove regeneration have been completed under the project. Additionally, 316 km of avenue plantation been comp leted. Two works [Primate houses (87% completed) and elephant moat 95% completed) are in progress and are expected to be completed within a month, if pending payments are cleared. All goods (Double barrel gun, Jab Stick. SS cages, and feed distribution vehicle) have been received. 11. Component 5 (Capacity building and technical support for DRM): Activitie s related to AP Critical Operations, Strategic Management and Incident Management (APCOSMIC), Geospatial Lab and Building Regulatory Framework have been completed. Some of them have entered O&M stage. Cloud service for APDMA has been hired. In-house dat a center has been established and multi-touch video wall has been procured. Fourteen emergency rescue vehicles have been received and are under use by the departments. Vehicle tracking system has been installed and is operational. The trainings for emergency rescuers from SDRF and Fire Services have been completed, and equipment for the department have been procured and delivered by PMU. APALERT and Multi Hazard Risk Assessment are ongoing and will go beyond current credit closing date. 12. Accordingly GoAP, in a letter to the DEA on September 24, 2021, requested a further extension of closing date by six months to complete the balance works and satisfactorily achieve the Project Development Objective. In the letter, the GoAP also informed that it has created a “green channel" account and released Rs. 155cr budget for streamlining the funds flow of the project. 13. On September 29, 2021, the DEA recommended to the World Bank, via correspondence F.No.05/02/2014- FB.VIII/V, extension of closing date by 6 months. 14. This is the third extension of the Credit closing date (since the original closing date of September 30, 2020). All audits are up to date and have received unqualified (clean) opinions. The World Bank Andhra Pradesh Disaster Recovery Project (P154847) III. DETAILED CHANGES LOAN CLOSING DATE(S) Original Revised Proposed Proposed Deadline Ln/Cr/Tf Status Closing Closing(s) Closing for Withdrawal Applications 31-Mar-2021, 30-Sep- IDA-56940 30-Sep-2020 31-Mar-2022 31-Jul-2022 2021