Document of The World Bank FOR OFFICIAL USE ONLY Report No: RES23476 RESTRUCTURING PAPER ON A PROPOSED PROJECT RESTRUCTURING OF MADAGASCAR EMERGENCY SUPPORT TO CRITICAL EDUCATION, HEALTH AND NUTRITION SERVICES PROJECT EMERGENCY RECOVERY LOAN NOVEMBER 29, 2012 TO THE REPUBLIC OF MADAGASCAR JUNE 14, 2016 HEALTH, NUTRITION AND POPULATION GLOBAL PRACTICE (GHNDR) AFRICA REGION This document has a restricted distribution and may be used by recipients only in the performance of their official duties. Its contents may not otherwise be disclosed without World Bank authorization. ABBREVIATIONS AND ACRONYMS AF Additional Finance CAS Country Assistance Strategy CPF Country Partnership Framework ECD Early Child Development IDA International Development Association IP Implementation Progress PDO Project Development Objective UNICEF United Nations Children’s Fund WFP World Food Programme Regional Vice President: Makhtar Diop Country Director: Mark R. Lundell Senior Global Practice Director: Claudia Maria Costin Practice Manager/Manager: Sajitha Bashir Task Team Leader: Jumana N. Qamruddin, Axelle Latortue 2 MADAGASCAR Emergency Support to Critical Education, Health and Nutrition Services Project CONTENTS A. SUMMARY Page 5 B. PROJECT STATUS Page 5 C. PROPOSED CHANGES Page 6 3 DATA SHEET Madagascar Madagascar Emergency Support to Critical Education, Health and Nutrition Services Project (P131945) AFRICA Education Report No: RES23476 Basic Information Emergency Recovery Project ID: P131945 Lending Instrument: Loan Regional Vice President: Makhtar Diop Original EA Category: Partial Assessment (B) Country Director: Mark R. Lundell Current EA Category: Partial Assessment (B) Senior Global Practice Claudia Maria Costin Original Approval Date: 29-Nov-2012 Director: Practice Sajitha Bashir Current Closing Date: 30-Jul-2017 Manager/Manager: Jumana N. Qamruddin, Team Leader(s): Axelle Latortue Borrower: Ministry of Finance and Budget (MFB) Responsible ONN/PNNC-SEECALINE, UAT-Unit� d'Appui Technique � l'Education Pour Agency: Tous, UGP-Sante Restructuring Type Form Type: Short Form Decision Authority: CD Decision Restructuring Level: Level 2 Financing ( as of 26-May-2016 ) Key Dates Approval Effectiveness Original Revised Project Ln/Cr/TF Status Signing Date Date Date Closing Date Closing Date P131945 IDA-51860 Effective 29-Nov-2012 03-Dec-2012 25-Apr-2013 31-Jul-2016 31-Jul-2016 P131945 IDA-53820 Effective 27-Feb-2014 27-Mar-2014 15-Sep-2014 31-Jul-2016 30-Jul-2017 Disbursements (in Millions) Cancelle Disburse Undisbur % Project Ln/Cr/TF Status Currency Original Revised d d sed Disbursed P131945 IDA-51860 Effective XDR 42.20 42.20 0.00 38.26 3.94 91 4 P131945 IDA-53820 Effective XDR 6.50 6.50 0.00 2.56 3.94 39 Policy Waivers Does the project depart from the CAS/CPF in content or in other significant Yes [ ] No [ X ] respects? Does the project require any policy waiver(s)? Yes [ ] No [ X ] A. Summary of Proposed Changes The Government has requested a reallocation to scale-up response to the emergency in the South of Madagascar in order to mitigate the negative impacts of the severe drought on the nutritional status of the population. The proposed restructuring will reallocate the remaining US$702,000 (493,000 XDR, Category 6) from the unallocated category to the Nutrition Component (Category 5). B. Project Status The Madagascar Emergency Support to Critical Education, Health and Nutrition Services Project (P131945) in the amount of US$65 million (IDA-51860) was approved by the Board on November 29, 2012. The Project Development Objective (PDO) is to preserve critical education, health and nutrition service delivery in targeted vulnerable areas in the recipient's territory. The loan became effective on April 25, 2013 with a closing date of July 31, 2016. As a direct response to severe cyclones and a locust infestation, an emergency Additional Financing Credit in the amount of US$10 million (IDA-53820) was approved on February 27, 2014. The focus of the AF is on delivering a combination of nutrition and food security activities in the most affected areas of the country. The closing date of the AF credit was extended to July 30, 2017. Project ratings remain Satisfactory for PDO and Implementation Progress (IP). This Project was ambitious from the outset in that it sought to maintain social service delivery in a challenging country context and during a period of political and economic crisis. The Project has not only helped the Government maintain basic service delivery in targeted areas, but has significantly helped schools, health centers, and community nutrition sites thrive. This has resulted in a better learning environment for students, increased access and utilization of services at primary health center level, and increased access to cost-effective nutrition interventions for pregnant women and children under five in the poorest areas of the country using and strengthening existing country systems and removing the geographical and financial barriers to access. In total, over 1 million children are enrolled in school and 1 million mothers and children are benefiting from essential maternal and child health and nutrition services. In order to maximize impact, the Project has implemented a number of multisectoral activities including a large program to combat neglected tropical diseases jointly delivered by the Education, Health and Nutrition sectors through schools and at community level covering the direct beneficiary population under the Project of almost 2 million people (10 percent of the country's population). The Government is also using IDA resources to pilot and evaluate new mechanisms to address key socioeconomic challenges, including an integrated chronic malnutrition and early stimulation pilot to improve early child development (ECD) outcomes as well as innovative processes such as design- thinking/human-centered design approaches to develop more effective behavior change interventions to improve longer term nutritional outcomes. In addition, with the end of the crisis in 2014, targeted resources under the project have also helped strengthen key management and supervision functions at the central, regional and district levels of the Ministries of Health and Education and the National Nutrition Office to help build stewardship of the sector and capacity for more effective and higher quality service delivery. Given the high-flexibility under this operation, IDA has also been able to quickly and effectively respond to 5 a number of exogenous shocks over the past few years, including this year's El Nino, which have had significant negative impacts on the population in the South of the country. The many lessons/data/evidence under this Project are already informing broader sectoral dialogue and policy formulation in the country as well as informing the design of future operations. C. Proposed Changes Financing Reallocations Explanation The Government has requested a reallocation from the unallocated category (category 6) to the Nutrition component of the Project (category 5) to intensify emergency response efforts in the South of Madagascar in order to mitigate the negative impacts of the severe drought on the nutritional status of the population. The proposed restructuring will reallocate the remaining US$702,000 (493,000 XDR, Category 6) from the unallocated category to the Nutrition Component (Category 5). For the past several months, the Bank has been working closely with the Government, The World Food Programme (WFP), UNICEF and other key partners on a coordinated effort in the region. Given the severity of the issue and the need for a quick response, once the reallocation is completed, this tranche of resources will be channeled through the WFP. The financing will provide critical nutrition support to the eight districts in the South most affected by the drought. Cat Current Ln/Cr/T Currenc Disbursement % .No Category of Allocation F y (Type Total) . Expenditure Actual Pending Propose Current Disburse Commit Current Proposed d ments ments IDA- WKS,GD,NC 6,386,00 4,112,09 6,386,00 51860- XDR 1 S,OP,TR COP 0.00 100.00 100.00 0.00 8.08 0.00 001 1-NO GRANT TEACHER 5,850,00 4,344,77 5,850,00 2 0.00 100.00 100.00 SUBSIDIES 0.00 5.37 0.00 SCHOOL 4,100,00 4,082,09 4,100,00 3 0.00 100.00 100.00 GRANTS 0.00 5.04 0.00 WKS,GD,NC 17,220,0 12,819,7 17,220,0 4 S,OP,TR COP 0.00 100.00 100.00 00.00 89.79 00.00 2 WKS,GD,NC 7,658,00 6,141,10 159,302. 8,151,00 5 S,OP,TR COP 100.00 100.00 0.00 9.20 92 0.00 3 UNALLOCA 493,000. 6 0.00 0.00 0.00 0.00 0.00 TED 00 Results based 493,000. 39,063.9 493,000. 7 Pymts Comp. 0.00 100.00 100.00 00 1 00 2c 6 42,200,0 31,538,9 159,302. 42,200,0 Total: 00.00 31.39 92 00.00 WKS,GD,CS, IDA- NCS,OP,TR 6,500,00 1,407,49 265,722. 6,500,00 53820- XDR 1 100.00 100.00 COMPONEN 0.00 9.68 98 0.00 001 T3 6,500,00 32,946,4 425,025. 6,500,00 Total: 0.00 31.07 90 0.00 7