The World Bank PY PRODERS Sustainable Agriculture & Rural Development (P088799) REPORT NO.: RES33330 DOCUMENT OF THE WORLD BANK RESTRUCTURING PAPER ON A PROPOSED PROJECT RESTRUCTURING OF PY PRODERS SUSTAINABLE AGRICULTURE & RURAL DEVELOPMENT APPROVED ON JANUARY 29, 2008 TO REPUBLIC OF PARAGUAY AGRICULTURE LATIN AMERICA AND CARIBBEAN Regional Vice President: Jorge Familiar Calderon Country Director: Jesko S. Hentschel Senior Global Practice Director: Juergen Voegele Practice Manager/Manager: Preeti S. Ahuja Task Team Leader: Maurizio Guadagni The World Bank PY PRODERS Sustainable Agriculture & Rural Development (P088799) I. BASIC DATA Product Information Project ID Financing Instrument P088799 Investment Project Financing Original EA Category Current EA Category Partial Assessment (B) Partial Assessment (B) Approval Date Current Closing Date 29-Jan-2008 28-Dec-2018 Organizations Borrower Responsible Agency Republic of Paraguay MAG/PRODERS Project Development Objective (PDO) Original PDO To improve the quality of life of Small-Scale Farmers and Indigenous Communities in the Project Area in a sustainable manner,through the support of actions to strengthen community organization and self governance, improve natural resources management andenhance the socio-economic condition of said farmers and communities. Current PDO To improve in a sustainable way the socio-economic condition of Small-Scale Farmers and Indigenous Communities in the Project Area,through the support of actions to strengthen their communityorganization, self-governance, and access to markets and value chains. Summary Status of Financing Net Ln/Cr/Tf Approval Signing Effectiveness Closing Commitment Disbursed Undisbursed IBRD-83160 05-Dec-2013 06-Dec-2013 25-Sep-2014 28-Dec-2018 100.00 75.60 24.40 IBRD-75030 29-Jan-2008 24-Jun-2008 30-Jun-2009 31-Dec-2015 37.50 37.50 0 The World Bank PY PRODERS Sustainable Agriculture & Rural Development (P088799) Policy Waiver(s) Does this restructuring trigger the need for any policy waiver(s)? No II. SUMMARY OF PROJECT STATUS AND PROPOSED CHANGES 1. Progress toward achieving the PDO and Implementation Progress (IP) are currently rated as Moderately Satisfactory. Project implementation has significantly improved during the past two years. As of June 2018, the project had reached about 240,000 beneficiaries, surpassing the project target of 225,000 beneficiaries. Moreover, this operation benefits some 42,000 Indigenous Peoples, more than 85 percent of the indigenous population in the project area. The project has also built significant capacity and commitment in more than 600 rural communities to plan and execute local development interventions. 2. However, the implementation of the Additional Finance suffered from several initial delays: (i) the ratification process took 10 months; and (ii) subsequently, about 20 months were needed to define a suitable community procurement process to allow a satisfactory documentation of community expenditures. Once this aspect was resolved in the middle of 2016, the project’s implementation took off. In FY17 the project disbursed US$26.3 million and in FY18 US$23.8 million. This accelerated implementation pace, however, was not sufficient to recuperate from previous delays. 3. As a consequence, an 11-month extension of the loan closing date is required to fully achieve the PDO by completing all project activities. The restructuring would extend the Loan Closing Date from December 28, 2018 to November 29, 2019. This is the second extension of the AF loan closing date for a cumulative extension of 23 month since the AF loan original closing date. 4. The additional implementation time provided by this extension would provide the following results: • community investments would fully produce the expected outcome in terms of productivity, associative management capacity, income, and poverty reduction. • Completion of collection, systematization and analysis of field data and extensive evidence of gains at the farm level, particularly regarding productivity and income. • full implementation of the “Family by Family” program, introduced by the July 2017 restructuring to specifically target extreme poverty in rural areas, by reaching isolated and geographically dispersed individual families, rather than communities, which requires more time than initially planned. 5. The proposed restructuring does not imply any changes to the PDO or to the Safeguards policies triggered. No changes are proposed to the Economic and Financial Analysis, Technical Analysis, Social Analysis or Environmental Analysis. The proposed restructuring satisfies the requirements of the Bank’s Investment Project Financing Policy in that the extension is being requested by the Borrower, the PDO continues to be achievable under the new closing date, the performance of the Borrower remains satisfactory, and an action plan to be undertaken by the Borrower to complete the project has been agreed upon. Neither the loan, nor the country (Paraguay) in general, are subject to an ongoing suspension of disbursements; and the project does not have any outstanding audit reports nor there are audit reports which are not satisfactory to the World Bank. The World Bank PY PRODERS Sustainable Agriculture & Rural Development (P088799) III. DETAILED CHANGES LOAN CLOSING DATE(S) Original Revised Proposed Proposed Deadline Ln/Cr/Tf Status Closing Closing(s) Closing for Withdrawal Applications 31-Dec-2015, 29-Jun- IBRD-75030 Closed 28-Dec-2013 2016 IBRD-83160 Effective 29-Dec-2017 28-Dec-2018 29-Nov-2019 29-Mar-2020