The World Bank Cultural Heritage Preservation and Tourism Sector Support Project (P144614) REPORT NO.: RES38883 RESTRUCTURING PAPER ON A PROPOSED PROJECT RESTRUCTURING OF CULTURAL HERITAGE PRESERVATION AND TOURISM SECTOR SUPPORT PROJECT (P144614) APPROVED ON MAY 19, 2014 TO THE REPUBLIC OF HAITI URBAN, RESILIENCE AND LAND LATIN AMERICA AND CARIBBEAN Regional Vice President: J. Humberto Lopez (Acting) Country Director: Anabela Abreu Regional Director: Anna Wellenstein Practice Manager/Manager: Ming Zhang Task Team Leader: Alexandra Ortiz The World Bank Cultural Heritage Preservation and Tourism Sector Support Project (P144614) ABBREVIATIONS AND ACRONYMS GoH Government of Haiti (Gouvernement de Haïti) PDO Project Development Objective PIU Project Implementation Unit PNH-CSSR National Historic Park Citadelle-Sans Souci-Ramiers (Parc National Historique Citadelle-Sans Souci-Ramiers) SDR Special Drawing Rights The World Bank Cultural Heritage Preservation and Tourism Sector Support Project (P144614) Note to Task Teams: The following sections are system generated and can only be edited online in the Portal. BASIC DATA Product Information Project ID Financing Instrument P144614 Investment Project Financing Original EA Category Current EA Category Partial Assessment (B) Partial Assessment (B) Approval Date Current Closing Date 19-May-2014 31-Aug-2020 Organizations Borrower Responsible Agency Ministry of Economy and Finance UNITE TECHNIQUE D'EXECUTION Project Development Objective (PDO) Original PDO The objectives of the Project are to: (a) increase the attractiveness of the cultural heritage sites in North of Haiti for tourists; (b) improve the living environment for the residents living in North of Haiti; and (c) support the Recipient’s capacity to respond promptly and effectively to an Eligible Emergency, as needed. OPS_TABLE_PDO_CURRENTPDO Summary Status of Financing Net Ln/Cr/Tf Approval Signing Effectiveness Closing Commitment Disbursed Undisbursed IDA-H9440 19-May-2014 09-Jul-2014 06-Oct-2014 31-Aug-2020 45.00 12.54 27.44 Policy Waiver(s) Does this restructuring trigger the need for any policy waiver(s)? No The World Bank Cultural Heritage Preservation and Tourism Sector Support Project (P144614) Note to Task Teams: End of system generated content, document is editable from here. I. PROJECT STATUS AND RATIONALE FOR RESTRUCTURING Project Status: 1. The SDR 29.1 million (US$45 million equivalent) IDA Grant No H944-HT was signed on May 19, 2014 and declared effective on October 6, 2014. The Project has been restructured twice since approval. In June 2017, the first Level 2 restructuring included changes to the implementation arrangements and the Project’s results framework to accelerate progress. In June 2018, the second Level 2 Restructuring simplified the project further, several activities were dropped, and funds were reallocated to support Component C and Component E. The project implementation progress has improved during the last two years due to considerable efforts by the Project Implementation Unit (PIU) and continued support by the World Bank, despite periodic episodes of instability and unrest and more recently the COVID-19 crisis. Since the last restructuring, Implementation Status, Safeguards and Component B have been upgraded from MU to MS. The Progress towards achievement of the PDO, Component A and Procurement remain at MU. Disbursements have increased from 14% in July 2018 to 31% in May 2020. 2. The project has five components: - Component A – Physical Cultural Heritage Sites and touristic circuits in the PNH-CSSR and Cap-Haïtien Historic City Center (US$28 million). - Component B - Local investments in Dondon, Milot and Cap-Haïtien (US$7 million). - Component C – Inclusive Tourism Sector Development Support (US$4 million). - Component D - Contingent Emergency Response (US$1 million). - Component E - Project Implementation, Monitoring and Evaluation (US$5 million). Rationale for Restructuring: 3. In order to quickly mobilize resources to support the Government of Haiti (GoH) in its response to the COVID-19 crisis, this restructuring proposes the cancellation of US$5.3 million (SDR 3,862,917.45) of funds. To allow for the execution of this cancellation as quickly as possible, the restructuring includes creating a new disbursement category and reallocating all uncommitted funds to that category. No other changes in the Financing Agreement are necessary at this time. A more detailed restructuring is being prepared and will be processed in the next few weeks to revise and simplify the scope, components, PDO and expected outcomes, as necessary. II. DESCRIPTION OF PROPOSED CHANGES 4. The restructuring proposes: (i) to create a new disbursement category and reallocate all uncommitted funds to that disbursement category, and (ii) to cancel US$5.3 million from the new disbursement category to support COVID-19 recovery response under a different World Bank operation. The remaining SDR 18,731,728.13 will be allocated to the new disbursement category. The World Bank Cultural Heritage Preservation and Tourism Sector Support Project (P144614) III. SUMMARY OF CHANGES Changed Not Changed Cancellations Proposed ✔ Reallocation between Disbursement Categories ✔ Disbursement Estimates ✔ Implementing Agency ✔ DDO Status ✔ Project's Development Objectives ✔ Results Framework ✔ Components and Cost ✔ Loan Closing Date(s) ✔ Disbursements Arrangements ✔ 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 ✔ IV. DETAILED CHANGE(S) OPS_DETAILEDCHANGES_CANCELLATIONS_TABLE The World Bank Cultural Heritage Preservation and Tourism Sector Support Project (P144614) CANCELLATIONS Value Reason Current Cancellation New Ln/Cr/Tf Status Currency Date of for Amount Amount Amount Cancellation Cancellation BORROWER' S REQUEST IDA-H9440- Disburs XDR 29,100,000.00 3,862,917.45 29-May-2020 25,237,082.55 FOR 001 ing COUNTRY REASONS OPS_DETAILEDCHANGES_REALLOCATION _TABLE REALLOCATION BETWEEN DISBURSEMENT CATEGORIES Financing % Current Allocation Actuals + Committed Proposed Allocation (Type Total) Current Proposed IDA-H9440-001 | Currency: XDR iLap Category Sequence No: 1 Current Expenditure Category: GO, CW, NCS, CS, TR Pt. A 11,801,108.00 3,333,622.04 3,333,622.04 100.00 100.00 iLap Category Sequence No: 2 Current Expenditure Category: GO, CW, NCS, CS, TR Pt. B 4,528,000.00 311,782.52 311,782.52 100.00 100.00 iLap Category Sequence No: 3A Current Expenditure Category: GO, CW, NCS, CS, TR Pt. C1 3,416,174.00 86,998.12 86,998.12 100.00 100.00 iLap Category Sequence No: 3B Current Expenditure Category: GO, CW, NCS, CS, TR Pt. C2 873,000.00 426,305.46 426,305.46 100.00 100.00 iLap Category Sequence No: 3C Current Expenditure Category: GO, CW, NCS, CS, TR Subproj Pt. C3 892,436.00 73,264.95 73,264.95 100.00 100.00 iLap Category Sequence No: 4 Current Expenditure Category: GO, CW, NCS, CS for CER Part The World Bank Cultural Heritage Preservation and Tourism Sector Support Project (P144614) 647,000.00 0.00 0.00 100.00 100.00 iLap Category Sequence No: 5 Current Expenditure Category: GO, NCS, CS, TR, OP Pt. E 4,632,492.00 1,687,012.39 1,687,012.39 100.00 100.00 iLap Category Sequence No: 6 Current Expenditure Category: Refund of Preparation Advance 2,309,790.00 586,368.94 586,368.94 100 iLap Category Sequence No: 7 Current Expenditure Category: New Category 0.00 0.00 18,731,728.13 100 Total 29,100,000.00 6,505,354.42 25,237,082.55 OPS_DETAILEDCHANGES_DISBURSEMENT_TABLE DISBURSEMENT ESTIMATES Change in Disbursement Estimates Yes Year Current Proposed 2014 2,321,039.33 0.00 2015 1,531,683.00 2.32 2016 2,000,000.00 3.85 2017 0.00 5.85 2018 14,147,277.70 5.85 2019 15,000,000.00 11.85 2020 10,000,000.00 12,774,498.38 2021 0.00 25,000,000.00 . The World Bank Cultural Heritage Preservation and Tourism Sector Support Project (P144614)