The World Bank AFCC2/RI-Zambezi River Basin Development Project (P133380) REPORT NO.: RES33832 RESTRUCTURING PAPER ON A PROPOSED PROJECT RESTRUCTURING OF AFCC2/RI-ZAMBEZI RIVER BASIN DEVELOPMENT PROJECT APPROVED ON MAY 30, 2014 TO ZAMBEZI RIVER AUTHORITY WATER AFRICA Regional Vice President: Hafez M. H. Ghanem Country Director: Paul Noumba Um Senior Global Practice Director: Guang Zhe Chen Practice Manager/Manager: Catherine Signe Tovey Task Team Leader: William Rex The World Bank AFCC2/RI-Zambezi River Basin Development Project (P133380) ABBREVIATIONS AND ACRONYMS The World Bank AFCC2/RI-Zambezi River Basin Development Project (P133380) BASIC DATA Product Information Project ID Financing Instrument P133380 Investment Project Financing Original EA Category Current EA Category Full Assessment (A) Full Assessment (A) Approval Date Current Closing Date 30-May-2014 31-Aug-2018 Organizations Borrower Responsible Agency Zambezi River Authority Zambezi River Authority Project Development Objective (PDO) Original PDO The Project Development Objective is to advance preparation of the Batoka Gorge Hy-dro-Electric Scheme and strengthen cooperative development within the Zambezi River Basin. OPS_TABLE_PDO_CURRENTPDO Summary Status of Financing Net Ln/Cr/Tf Approval Signing Effectiveness Closing Commitment Disbursed Undisbursed TF-16238 03-Jul-2014 03-Jul-2014 24-Jul-2014 31-Aug-2018 6.00 5.13 .87 Policy Waiver(s) Does this restructuring trigger the need for any policy waiver(s)? No The World Bank AFCC2/RI-Zambezi River Basin Development Project (P133380) I. PROJECT STATUS AND RATIONALE FOR RESTRUCTURING The project is primarily supporting the engineering, environmental and social, legal and transaction advisory studies required for the development of the Batoka Gorge Hydropower project. The studies to date have been done professionally and to an acceptable standard. However, the process has been impacted by several technical, capacity and scope of works changes that have led to previous project extensions and the need for additional finance. This project restructuring will extend the project closing date by four months to support contract continuity and to enable the Zambezi River Authority to explore additional financing options. The restructuring does not change the PDO, safeguard category, allocation of funds, or any implementation arrangements. Overall implementation and progress toward the development objective are both considered Moderately Satisfactory, as are financial management, procurement, and project management ratings. The project is compliant with safeguard requirements. II. DESCRIPTION OF PROPOSED CHANGES The project restructuring extends the closing date to 31st December 2018. It also better aligns the results framework with current best practice. The restructuring does not change the PDO, safeguard category, allocation of funds, or any implementation arrangements. III. SUMMARY OF CHANGES Changed Not Changed Results Framework ✔ Loan Closing Date(s) ✔ Implementing Agency ✔ DDO Status ✔ Project's Development Objectives ✔ Components and Cost ✔ Cancellations Proposed ✔ The World Bank AFCC2/RI-Zambezi River Basin Development Project (P133380) Reallocation between Disbursement Categories ✔ Disbursements Arrangements ✔ Disbursement Estimates ✔ 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_LOANCLOSING_TABLE LOAN CLOSING DATE(S) Original Revised Proposed Proposed Deadline Ln/Cr/Tf Status Closing Closing(s) Closing for Withdrawal Applications 30-Sep-2017, 31- TF-16238 30-Sep-2016 31-Dec-2018 30-Apr-2019 Aug-2018 . The World Bank AFCC2/RI-Zambezi River Basin Development Project (P133380) . Results framework COUNTRY: Africa AFCC2/RI-Zambezi River Basin Development Project Project Development Objectives(s) The Project Development Objective is to advance preparation of the Batoka Gorge Hy-dro-Electric Scheme and strengthen cooperative development within the Zambezi River Basin. Project Development Objective Indicators by Objectives/ Outcomes RESULT_FRAME_TBL_PDO Indicator Name DLI Baseline End Target 2014 2019 Advance preparation of the Batoka Gorge Hydro-electric scheme (Action: This Objective is New) Indicator 2: Beneficaries (Number) 0.00 6,000,000.00 Updated feasibility & ESIA for Batoka Gorge HES (Text) Outdated baseline studies insufficient to mobilize financing Updated feasibility & ESIA for Batoka Gorge HES Action: This indicator is New Options for investment transaction structure for Batoka Gorge Options for transaction structure assessed facilitating Insufficient information to mobilize financing HES assessed (Text) financing of the Batoka Gorge HES Action: This indicator is New Indicator 1: Investment Mobilisation (Amount(USD)) 0.00 2,500,000,000.00 Strengthen cooperative development within the Zambezi River Basin (Action: This Objective is New) Legal frameworks for transboundary water management and Fragmented legal framework Updated legal framework endorsed by Council of Ministers development harmonized (Text) Action: This indicator is New Institutional arrangements for catastrophic disaster management Limited coordination Institutional arrangements for coordination enhanced enhanced (Text) Action: This indicator is New The World Bank AFCC2/RI-Zambezi River Basin Development Project (P133380) RESULT_FRAME_TBL_PDO Indicator Name DLI Baseline End Target 2014 2019 No integrated dam break analysis for the Zambezi River Joint dam break analysis completed (Text) Joint dam break analysis completed Basin Action: This indicator is New PDO Table SPACE Intermediate Results Indicators by Components RESULT_FRAME_TBL_IO Indicator Name DLI Baseline End Target 2014 2019 Engineering Studies for the proposed Batoka Gorge Hydro-Electric (Action: This Component is New) No integrated dam break analysis for the Zambezi River Disaster Management (Text) Joint dam break analysis completed basin Action: This indicator has been Marked for Deletion Contract for engineering studies signed (Yes/No) No Yes Action: This indicator is New Environmental and Social Impact Assessment for the proposed (Action: This Component is New) Contract for environmental and social assessment signed No Yes (Yes/No) Action: This indicator is New Technical Assistance and Transaction Advisory Services for the (Action: This Component is New) Studies faciliate financing for development of the Batoka Investment implementation (Text) Outdated baseline studies insufficient to moblise financing Gorge HES Action: This indicator has been Marked for Deletion The World Bank AFCC2/RI-Zambezi River Basin Development Project (P133380) RESULT_FRAME_TBL_IO Indicator Name DLI Baseline End Target 2014 2019 Studies for the Batoka Gorge HES completed and increasing Investment Integration (Text) Outdated studies for the Batoka Gorge HES regional development Action: This indicator has been Marked for Deletion Transaction Advisors appointed to help with the structuring and No Yes resource mobilization (Yes/No) Action: This indicator is New Investor conference hosted by two governments with a range of No Yes stakeholders (Yes/No) Action: This indicator is New Transaction structure endorsed by the two Governments No Yes (Yes/No) Action: This indicator is New Legal Framework (Text) Fragmented legal framework Updated legal framework endorsed by Council Action: This indicator has been Marked for Deletion Legal and Institutional Reviews to support the Zambezi River Authority (Action: This Component is New) Consultative process regarding draft Amendments to the legal framework undertaken between the relevant ministries and the No Yes AGs (Yes/No) Action: This indicator is New Dam Break Analysis to Zambezi River Authority (Action: This Component is New) Contract for dam break analysis signed (Yes/No) No Yes Action: This indicator is New IO Table SPACE The World Bank AFCC2/RI-Zambezi River Basin Development Project (P133380) The World Bank AFCC2/RI-Zambezi River Basin Development Project (P133380)