The World Bank Enhancing the Climate Resilience of Coastal Resources and Communities (P126596) REPORT NO.: RES31565 RESTRUCTURING PAPER ON A PROPOSED PROJECT RESTRUCTURING OF ENHANCING THE CLIMATE RESILIENCE OF COASTAL RESOURCES AND COMMUNITIES PROJECT APPROVED ON DECEMBER 27, 2013 TO THE INDEPENDENT STATE OF SAMOA ENVIRONMENT & NATURAL RESOURCES EAST ASIA AND PACIFIC Regional Vice President: Victoria Kwakwa Country Director: Michel Kerf Senior Global Practice Director: Karin Erika Kemper Practice Manager/Manager: Iain G. Shuker Task Team Leader: Habiba Gitay 1 The World Bank Enhancing the Climate Resilience of Coastal Resources and Communities (P126596) ABBREVIATIONS AND ACRONYMS ACDM Aid Coordination & Debt Management Division AF Adaptation Fund CCA Climate Change Adaptation CEP Community Engagement Plan CIF Climate Investment Fund CIM Community Integrated Management CRICD Climate Resilience Investment Coordination Division CRIP Climate Resilience Investment Program CSO Civil Society Organization CSSP Civil Society Support Program DA Designated Account DRM Disaster Risk Management DRR Disaster Risk Reduction DSP District Level Sub-project Plan ECR Enhancing the Climate Resilience of Coastal Resources and Communities (Project) EMP Environmental Management Plan EWS Early Warning System FM Financial Management GA Grant Agreement GEO Global Environmental Objective GoS Government of Samoa IP Implementation Progress IPF Investment Project Financing LiDAR Light Detection and Ranging MNRE Ministry of Natural Resources and Environment MOF Ministry of Finance MS Moderately Satisfactory MTR Mid-Term Review MU Moderately Unsatisfactory PDO Project Development Objective PMS Project Management Services POM Project Operations Manual PPCR Pilot Program for Climate Resilience SCF Strategic Climate Fund TF Trust Fund UNDP United Nations Development Program 2 The World Bank Enhancing the Climate Resilience of Coastal Resources and Communities (P126596) BASIC DATA Product Information Project ID Financing Instrument P126596 Investment Project Financing Original EA Category Current EA Category Partial Assessment (B) Partial Assessment (B) Approval Date Current Closing Date 27-Dec-2013 31-Dec-2018 Organizations Borrower Responsible Agency Ministry of Natural Resources and Environment,Ministry Ministry of Finance,Independent State of Samoa of Finance Project Development Objective (PDO) Original PDO The project development objective is to support coastal communities to become more resilient to climate variability and change. OPS_TABLE_PDO_CURRENTPDO Summary Status of Financing Net Ln/Cr/Tf Approval Signing Effectiveness Closing Commitment Disbursed Undisbursed TF-15828 27-Dec-2013 07-Feb-2014 07-Feb-2014 31-Dec-2018 14.60 6.02 8.58 Policy Waiver(s) Does this restructuring trigger the need for any policy waiver(s)? No 3 The World Bank Enhancing the Climate Resilience of Coastal Resources and Communities (P126596) I. PROJECT STATUS AND RATIONALE FOR RESTRUCTURING 1. Background. The Enhancing the Climate Resilience of Coastal Resources and Communities Project (“ECR Project”) in the Independent State of Samoa (“Samoa”) has been effective since February 7, 2014 with a closing date of December 31, 2018. The project is financed by a grant from the Strategic Climate Fund-Pilot Program for Climate Resilience (SCF-PPCR) (TF015828) in an amount of US$ 14.6 million. The project’s three components are: (1) Implementation of priority adaptation measures to manage climate and disaster-related threats; (2) Strengthened climate information services; and (3) Institutional strengthening for climate and disaster resilience, project coordination and monitoring. Implementation progress and disbursement in the first two years were slow due to capacity constraints and procurement delays; further delays were due to a need for restructuring to introduce a sub-grant mechanism for district level sub-projects and adapting the implementation arrangements following that restructuring in June 2017 (see below). However, there is clear progress: the recipient’s current capacity is good, all legal and administrative requirements are now in place and disbursements have increased from 24 percent to 41 percent during the past six months. With the approval of the Climate Resilience Steering Committee (CRSC) of all of the 100 village and 16 district level sub-projects, the commitment stands at approximately 95 percent of the total project funds. 2. Previous Project Restructuring. The project has gone through two level 2 restructurings, one approved on December 27, 2015 and the second on June 7, 2017. The first introduced (i) the provision of goods and services through a special unit of the Ministry of Finance (MOF), the Civil Society Support Program – CSSP, instead of small grants for preparation and implementation of village level sub-projects, and (ii) a minor change to an end target of an indicator. The second restructuring introduced a sub-grant mechanism for the implementation of sub-projects at the district level, which included a disbursement condition that required preparation of a sub-grant manual that the government refers to as District-Level Sub-Project Plan (DSP). 3. Current Overall Ratings. The ISR of June 2018 rates progress towards achievement of the PDO as Moderately Satisfactory (MS) and overall implementation progress (IP) as Moderately Unsatisfactory (MU). The IP rating is based on the current disbursement percentage and the implementation progress relative to the current closing date, and does not indicate shortcomings in the performance of the Recipient or its capacity to fully implement the project by the proposed extended closing date. Financial management was upgraded in December 2017 from MS to Satisfactory with interim financial and annual audit reports submitted in a timely manner; procurement has also been upgraded from MU to MS reflecting the clear improvements since December 2017 and no remaining outstanding issues in procurement. The overall risk rating is being changed to Moderate as the Technical Design risks are now rated as Moderate, in view of the focus on district level sub-projects being implemented by government entities and State-Owned Enterprises as part of their work program. The completion of the DSP, progress in training and recruiting of Civil Society Organizations (CSOs) to support village-level implementation, and the accumulated experience of the implementing agency in carrying out sub-projects also contributes to the lower risk rating. Fiduciary and Environmental & Social Risks are rated Moderate. 4. Current Status. The project is now providing a valuable platform for all 16 districts and 100 villages supported under the project, establishing vertical linkages between community level resilience to district and national levels through implementation of the priority investments identified through a participatory process instigated as part of the revision of the Community Integrated Management (CIM) plans. The project is supporting data-driven investment decisions at the community and district levels, with the use of the latest remote sensed images and Light Detection & Ranging (LiDAR) data and with technical inputs from experts (including engineers, agriculture, biodiversity, safeguard specialist) to help identify disaster and climate risks and prioritize resilience investments within the revised CIM plans. Progress on Component 1 has been upgraded to Moderately Satisfactory reflecting significant improvement in implementation over the past 6 months; as of April 2018, the result indicator reflect this improvement with 36,000 beneficiaries (out of a target of 45,000) having been reached, and 47 of the planned 100 village sub-projects implemented. CIM plans for all 16 districts have been revised 4 The World Bank Enhancing the Climate Resilience of Coastal Resources and Communities (P126596) and/or completed and launched during a public ceremony in June 2018. The District-Level Sub-Project Plan (DSP) – which details the process for providing sub-grants to state-owned enterprises and other public bodies for implementation – has been finalized and adopted by the Government of Samoa (GoS). Although the finalization and adoption took almost six months, it is a significant achievement as it allowed the Bank to lift the related disbursement condition. Implementation at the district level has gained momentum with adoption of the DSP and project restructuring, which established a clear direction for this sub-component. As of April 2018, six (6) district sub-projects (out of the 16 identified, one per district) have been completed; another 10 have been approved by the CRSC and are being implemented and or being prepared. Progress on Component 2 remains Satisfactory: training and awareness programs for CSOs has been completed, risk and Lidar/aerial photography data has been acquired and is being shared with various stakeholders, and outreach activities underway to further improve understanding and use of the data. Progress on Component 3 has been upgraded to Satisfactory, with continued support and oversight from the Climate Resilience Investment Coordination Division (CRICD) of the Ministry of Finance for district level sub-projects, and revision of the Project Operational Manual to include documentation relating to district level sub-grants. 5. The development objective remains achievable within the proposed extension of the closing date. Project management, Financial Management, Monitoring & Evaluation are Moderately Satisfactory or Satisfactory. The recipient is compliant with all legal covenants; there are no overdue audits and legal obligations have all been met. The Bank and the Recipient have agreed on a plan of actions to be undertaken to complete the project, especially with respect to the district level sub-projects. The recipient has revised the Project Operations Manual to reflect the proposed changes to the results framework and submitted it to the Bank on June 18, 2018. A. RATIONALE FOR RESTRUCTURING 6. In response to a request received from GoS (through MOF) dated April 3, 2018 and a supplemental request dated June 14, 2018, a project restructuring is proposed to: (i) amend and enhance the Results Framework to better report on the village- and district-level sub-projects as well as to reflect changes in the approach to ensuring and measuring watershed and water supply protection, organizing participant consultations, and training and using support of the Civil Society Organizations (CSOs) in project implementation; and (ii) extend the project closing date from Dec 31, 2018 to June 30, 2020 (18 months) to allow completion of the remaining 30 village level and 10 district level sub-projects, especially those focused on non-infrastructure options as they require time for coordination and inputs from multiple villages as well as several line ministries. There will be no changes in the scope of activities or the grant financing arrangements. 7. As detailed in the preceding sections, the lag in overall implementation and relatively low disbursements are the result of capacity constraints and procurement delays especially for acquisition of LiDAR data, procurement of experts for the CIM plan team, a restructuring to introduce a sub-grant mechanism for district level sub-projects and preparation of the DSP required as a condition for disbursements under the June 2017 restructuring. However, the current capacity of the Recipient is sound, and there are no significant planning, administrative, or technical hurdles standing in the way of continued implementation. The proposed extension and restructuring therefore represents an opportunity to fully implement the project and achieve outcomes, with anticipated risks largely managed. II. DESCRIPTION OF PROPOSED CHANGES A. Proposed Changes to the Results Framework PDO Indicators: Original Indicator No. 1: “Direct project beneficiaries (number)”. Proposed Revision: “Project beneficiaries (number)”. 5 The World Bank Enhancing the Climate Resilience of Coastal Resources and Communities (P126596) Original Indicator No. 3: “Percent of sub-projects with climate/disaster resilience satisfactorily implemented based on a scoring system”. Proposed Revision: “Number of subprojects with climate/disaster resilience satisfactorily implemented based on a scoring system”. Revised end target: 100 village sub-projects; 16 district level sub-projects. Original Indicator No. 5: “Area restored or re/afforested (Hectare(Ha), Custom)”. Proposed deletion: This indicator is being replaced by two new water supply related indicators (see below). Intermediate Results Indicators: Original Intermediate Indicator No. 1: “Participants in consultation activities during project implementation”. Proposed Revision: “Participants (direct & indirect) in consultation activities during project implementation”. Original Intermediate Indicator No. 4: “Number of trained CSOs providing climate change related services under the project”. Revised end target: Change end target from 15 to 5. Original Intermediate Indicator No. 7: “Use of improved climate information and tools (Percentage)”. Proposed Revision: Replace the unit of measure “Percentage” with “Number”. New Intermediate Indicators: Intermediate Indicator No. 9: “Number of people with access to resilient water supply (number)”. Baseline: 0; End target: 15,000 Intermediate Indicator No. 10: “Water sources with improved condition; Baseline: Poor; End target: Medium B. Extension of Project Closing Date from December 31, 2018 to June 30, 2020. 8. While the institutional frameworks for village- and district-level sub-project implementation are now fully in place, considerable work is still needed to complete the remaining 10 district level sub-projects, especially those relating to the “soft” resilience measures, such as improving the condition of the watersheds and coastal forest, as these require a longer time to implement compared to the infrastructure investments that are either under implementation or have been completed. The extension would also allow sufficient time to complete the village level sub-projects that are planned to start implementation in July 2018 and ensure that CSSP completes its final evaluation of village level sub-projects (done six months after the completion of implementation). 6 The World Bank Enhancing the Climate Resilience of Coastal Resources and Communities (P126596) Table 1: Details of the proposed changes to the Results Framework Existing Indicator Proposed Indicator Justification Metric Baseline Actual (Current) as End Target Change at April 10, 2018 PDO indicators Direct project Project beneficiaries At the time of project preparation, “direct Number 0.00 35,924 45,000 beneficiaries (delete “direct”) beneficiaries” were included as per the Bank’s normal practice. However, GoS has indicated that “beneficiaries” is a less ambiguous descriptor since the “direct” and “indirect” changes during and after a climate-related disaster for example the beneficiaries of improved spring pools or escape routes not being those immediately next to these interventions. Percent of Number of subprojects The change is to better align with the Number 0.00 Two sub- 100 village subprojects with with climate/disaster governments community level interventions. indicators: subprojects climate/disaster resilience satisfactorily The metric “Percent” does not indicate the 47 village resilience implemented based on total number of villages targeted, nor the subprojects satisfactorily a scoring system government process of when CSSP provides a completed 16 district implemented (change in the metric) completion certificate. CSSP provides a level based on a certification/satisfactorily completed when 6 district level subprojects scoring system. the sub-projects are scored as 3+ (on a scale subprojects of 1-5); if the score is less, the communities completed are expected to complete the necessary work. Area restored or Delete This would be replaced with the two new - re/afforested proposed water supply indicators and reflect the outcome of the restoration and improved management of areas and watersheds. Intermediate indicators Participants in Participants (direct & The modification reflects the reality of the Number 0.00 2296 5,000 consultation indirect) in consultations where participants were directly activities during consultation activities and indirectly (through the village project during project representative) involved. For efficiency and implementation implementation aligned with the government process that was 7 The World Bank Enhancing the Climate Resilience of Coastal Resources and Communities (P126596) in place during 2017, the consultations were done through inviting representatives of the villages to a central location. These representatives came with the priorities that were identified during consultations within their own groups in the village (e.g. village committees, youth and women’s groups) and then reported back to that group after the consultations at the central location. The CSSP staff and technical agencies during site visits also did consultations and these numbers are captured in those directly consulted. Number of Number of trained Change the end target from 15 to 5 given Number 0.00 5 5 trained CSOs CSOs providing climate CSSP has engaged with 20 CSOs. These CSOs providing climate change related services were all invited to the training along with change related under the project others focussed on environmental issues. 10 services under (change in end target) CSO participated in the two-week training. All the project 10 were invited to bid to support the villages. Only 5 were recruited on a competitive basis to support the villages as they met the selection criteria. There has, however, been extensive effort in training and sensitization of CSOs. Use of improved Use of improved Change the metric “Percentage” to “Number” Number 1 6 20 climate climate information to align with how the information and tools information and and tools are being recorded. It is also less ambiguous tools (change in metric) and less likely to be mis-recorded Addition of intermediate indicators Number of people This reflects the support to water Number 0.00 15,000 provided with access to supply/water harvesting system related sub- resilient water supply projects at village and district as a result of community and stakeholder consultations and prioritization. The underlying factors are Samoa’s increasing vulnerability to seasonal droughts and voluntary relocation of people from highly vulnerable coastal areas to 8 The World Bank Enhancing the Climate Resilience of Coastal Resources and Communities (P126596) inland/upland areas, where due to limited supply or access to spring ponds, there is increased risks from seasonal water shortages Three water sources This reflects the emerging priorities through Rating Poor Medium with improved CIM Plan Review consultations on water condition based on a catchment management in Upolu and Savaii qualitative scoring that go from ridge to reef with mangroves and system (New Indicator) coral reefs. This catchment based indicator is also more appropriate than area to be afforested/reforested and reflects the land management responsibility lies with the villages in a catchment 9 The World Bank Enhancing the Climate Resilience of Coastal Resources and Communities (P126596) III. SUMMARY OF CHANGES Changed Not Changed Change in Results Framework ✔ Change in Loan Closing Date(s) ✔ Change in Overall Risk Rating ✔ Change in Implementation Schedule ✔ Change in Implementing Agency ✔ Change in DDO Status ✔ Change in Project's Development Objectives ✔ Change in Components and Cost ✔ Cancellations Proposed ✔ Reallocation between Disbursement Categories ✔ Change in Disbursements Arrangements ✔ Change in Disbursement Estimates ✔ Change in Safeguard Policies Triggered ✔ Change of EA category ✔ Change in Legal Covenants ✔ Change in Institutional Arrangements ✔ Change in Financial Management ✔ Change in Procurement ✔ Other Change(s) ✔ Change in Economic and Financial Analysis ✔ Change in Technical Analysis ✔ Change in Social Analysis ✔ Change in Environmental Analysis ✔ IV. DETAILED CHANGE(S) OPS_DETAILEDCHANGES_RESULTS_TABLE RESULTS FRAMEWORK The World Bank Enhancing the Climate Resilience of Coastal Resources and Communities (P126596) Project Development Objective Indicators PDO_IND_TABLE Project beneficiaries Unit of Measure: Number Indicator Type: Custom Baseline Actual (Current) End Target Action Value 0.00 35924.00 45000.00 Revised Date 10-Feb-2014 09-Feb-2018 30-Jun-2020 Female beneficiaries Unit of Measure: Percentage Indicator Type: Custom Supplement Baseline Actual (Current) End Target Action Value 0.00 48.00 48.00 No Change Sub-projects with climate/disaster resilience satisfactorily implemented based on a scoring system Unit of Measure: Number Indicator Type: Custom Baseline Actual (Current) End Target Action Value 0.00 53.00 116.00 Revised Date 10-Feb-2014 09-Feb-2018 30-Jun-2020 Village level sub-projects Unit of Measure: Number Indicator Type: Custom Breakdown Baseline Actual (Current) End Target Action Value 0.00 47.00 100.00 Revised Date 03-Oct-2016 09-Feb-2018 30-Jun-2020 District level sub-projects Unit of Measure: Number Indicator Type: Custom Breakdown Baseline Actual (Current) End Target Action The World Bank Enhancing the Climate Resilience of Coastal Resources and Communities (P126596) Value 0.00 6.00 16.00 Revised Date 06-Oct-2016 09-Feb-2018 30-Jun-2020 Area restored or re/afforested Unit of Measure: Hectare(Ha) Indicator Type: Custom Baseline Actual (Current) End Target Action Value 0.00 15.00 600.00 Marked for Deletion Date 10-Feb-2014 09-Feb-2018 31-Dec-2018 Intermediate Indicators IO_IND_TABLE Participants in consultation activities during project implementation (number) Unit of Measure: Number Indicator Type: Custom Baseline Actual (Current) End Target Action Value 0.00 2296.00 5000.00 Revised Date 10-Feb-2014 09-Feb-2018 30-Jun-2020 Participants (direct and indirect) in consultation activities during project implementation - female Unit of Measure: Number Indicator Type: Custom Breakdown Baseline Actual (Current) End Target Action Value 0.00 950.00 2500.00 Revised Date 10-Feb-2014 09-Feb-2018 30-Jun-2020 CIMs updated through consultative processes and incorporate other planning frameworks Unit of Measure: Number Indicator Type: Custom Baseline Actual (Current) End Target Action Value 0.00 16.00 16.00 Revised Date 10-Feb-2014 09-Feb-2018 30-Jun-2020 Number of trained CSOs providing climate change related services under the project Unit of Measure: Number The World Bank Enhancing the Climate Resilience of Coastal Resources and Communities (P126596) Indicator Type: Custom Baseline Actual (Current) End Target Action Value 0.00 5.00 5.00 Revised Date 10-Feb-2014 09-Feb-2018 30-Jun-2020 Maps prepared for bathymetry and topography for Upolu and Savai'i and use to strengthen resilience Unit of Measure: Text Indicator Type: Custom Baseline Actual (Current) End Target Action 16 in total - one for each of the districts have been prepared with relevant data on Relevant hazard hazards, wave maps, data on wave movement and other movement, and other key information for information decision making. The contributes to Value None No Change maps are contributing to decision making on the design of risk climate risks and used management in the design of risk interventions, including management but not limited to the interventions project's village and district level sub- projects. Date 10-Feb-2014 09-Feb-2018 31-Dec-2018 Improved awareness on climate change associated risks and hazards among population in targeted districts Unit of Measure: Percentage Indicator Type: Custom Baseline Actual (Current) End Target Action Value 10.00 40.00 40.00 No Change Date 10-Feb-2014 09-Feb-2018 31-Dec-2018 Use of improved climate information and tools. Unit of Measure: Number Indicator Type: Custom Baseline Actual (Current) End Target Action Value 1.00 6.00 6.00 Revised The World Bank Enhancing the Climate Resilience of Coastal Resources and Communities (P126596) Date 10-Feb-2014 09-Feb-2018 30-Jun-2020 Evidence of strengthened government capacity and coordination mechanism to mainstream climate resilience. Unit of Measure: Text Indicator Type: Custom Baseline Actual (Current) End Target Action Improved coordination through CRICD, CRSC, CSSP as well as engagement of technical agencies with CIM Review consultations. PMS has also assisted Climate information Climate information through provision of products/services are Value product/services rarely support to the Line used in decision No Change used in decision making Agencies in facilitating making in climate and providing advice at sensitive sectors all levels of project implementation in commitment to including some of the budget to support such activities. Date 10-Feb-2014 09-Feb-2018 31-Dec-2018 Number of people provided with access to resilient water supply Unit of Measure: Number Indicator Type: Custom Baseline Actual (Current) End Target Action Value 0.00 0.00 15000.00 New Date 04-Jun-2018 04-Jun-2018 30-Jun-2020 Three water sources with improved condition based on a qualitative scoring system Unit of Measure: Text Indicator Type: Custom Baseline Actual (Current) End Target Action Value Poor Poor Medium New Date 04-Jun-2018 04-Jun-2018 30-Jun-2020 The World Bank Enhancing the Climate Resilience of Coastal Resources and Communities (P126596) OPS_DETAILEDCHANGES_LOANCLOSING_TABLE LOAN CLOSING DATE(S) Original Revised Proposed Proposed Deadline Ln/Cr/Tf Status Closing Closing(s) Closing for Withdrawal Applications TF-15828 Effective 31-Dec-2018 30-Jun-2020 30-Oct-2020 OPS_DETAILEDCHANGES_SORT_TABLE SYSTEMATIC OPERATIONS RISK-RATING TOOL (SORT) Risk Category Rating at Approval Current Rating Political and Governance  Moderate Macroeconomic  Substantial Sector Strategies and Policies  Low Technical Design of Project or Program  Moderate Institutional Capacity for Implementation and  Moderate Sustainability Fiduciary  Moderate Environment and Social  Moderate Stakeholders  Moderate Other Overall  Moderate