The World Bank Somali Urban Investment Planning (P150374) REPORT NO.: RES30421 RESTRUCTURING PAPER ON A PROPOSED PROJECT RESTRUCTURING OF SOMALI URBAN INVESTMENT PLANNING APPROVED ON FEBRUARY 4, 2016 TO MINISTRY OF FINANCE,MINISTRY OF FINANCE SOCIAL, URBAN, RURAL AND RESILIENCE GLOBAL PRACTICE AFRICA Regional Vice President: Makhtar Diop Country Director: Bella Bird Senior Global Practice Director: Ede Jorge Ijjasz-Vasquez Practice Manager/Manager: Bernice K. Von Bronkhorst Task Team Leader: Zishan Faiza Karim, Matthias Mayr The World Bank Somali Urban Investment Planning (P150374) ABBREVIATIONS AND ACRONYMS BE Bank Execution BRA Benadir Regional Administration DA Designated Bank Account EAFS External Agency for Fiduciary Support FGS Federal Government of Somalia HWA Hargeisa Water Agency IFRs Interim Unaudited Financial Reports LDF Local Development Fund MPF Multi Partner Fund PIU Project Implementation Units RETF Recipient Executed Trust Fund SUIPP Somali Urban Investment Planning Project SURR Somali Urban Resilience and Recovery Project UNOPS United Nations Office for Project Services The World Bank Somali Urban Investment Planning (P150374) The World Bank Somali Urban Investment Planning (P150374) 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 P150374 Investment Project Financing Original EA Category Current EA Category Partial Assessment (B) Partial Assessment (B) Approval Date Current Closing Date 04-Feb-2016 Organizations Borrower Responsible Agency Hargeisa Municipality,Mogadishu Municipality,Hargeisa Ministry of Finance,Ministry of Finance Water Agency,Garowe Municipality Project Development Objective (PDO) Original PDO To provide (i) an assessment of the feasibility of, and preliminary plans for, selected urban investment and institutional strengthening activities in southern Somalia, Puntland and Somaliland, and (ii) enhanced project preparation and implementation capacity of participating agencies. OPS_TABLE_PDO_CURRENTPDO Summary Status of Financing Net Ln/Cr/Tf Approval Signing Effectiveness Closing Commitment Disbursed Undisbursed Policy Waiver(s) Does this restructuring trigger the need for any policy waiver(s)? No The World Bank Somali Urban Investment Planning (P150374) A. Background 1. The Somali Urban Investment Planning Project (SUIPP) supports the preparation of feasibility studies PROJECT I. and STATUS preliminary AND RATIONALE engineering FOR designs across RESTRUCTURING three cities – Mogadishu, Hargeisa and Garowe. The SUIPP has both Bank executed (BE) and Recipient executed (RE) Grants with four corresponding legal agreements (2 BE on behalf of RE agreements and 2 RE agreements). The BE Agreement with the Federal Government of Somalia was activated on 24 February 2016 and the corresponding RE Agreement became effective on 29 July 2016. The total value of the project is USD 6m of which USD 2.15m is allocated for RE activities and the balance of USD 3.85m for BE activities. B. Project Status 2. The overall progress in the project is rated as Moderately Satisfactory and the Project Development Objective still remains achievable. Under the BE Grant, draft Feasibility Studies for the infrastructure investments have been completed by UNOPS/IPE Global/Apex in consultation with the Project Implementation Units (PIUs). To date, USD 3,094,454 has been disbursed from the BE Grant for payment of consultant fees and travel expenses for activities associated with the implementation of feasibility and preliminary design studies for prioritized infrastructure activities as well as the Institutional Assessments and Institutional Strengthening Plans for implementing agencies. All BE activities have been completed. Under the RE Grant, the PIUs have been staffed and Designated Accounts for the project opened. Staff in the three municipalities and PIUs have been trained and capacity built in core project management areas. To date, USD 1,518,091 has been disbursed from the two RE Grants. C. Rationale for Restructuring 3. The preparation of the follow-on project – the Somali Urban Resilience and Recovery Project (SURR)- to finance implementation of the planned investments across the three cities has taken longer than anticipated due to a lack of funding in the Somali Multi-Partner Fund (MPF). Implementation of project activities under the RE grants have been deliberately delayed in order to stretch out available funds and allow sufficient time for the follow on project to be prepared. 4. Unfortunately, only financing for investments in Mogadishu is expected to be confirmed by mid-December 2017 following which appraisal of the proposed project is expected to commence in March 2018. Financing for investments in Hargeisa and Garowe is not yet confirmed. A six-month time extension of this ongoing preparation project – SUIPP – would therefore allow (i) the PIU in Mogadishu to remain in place until the proposed SURR is made effective and (ii) a USD 2 million Additional Financing for SUIPP to be processed in order to continue support to Hargeisa and Garowe PIUs until financing for investments in these two cities also becomes available. 5. The Client has requested to keep the PIUs in place to ensure the staff are available to support the preparation of follow-on activities. These staff have already received training on Bank financial management, procurement, disbursement and environmental/social safeguard issues and would therefore be critical in preparation of the proposed SURR or any operations implemented through municipalities. Note to Task Teams: End of system generated content, document is editable from here. The World Bank Somali Urban Investment Planning (P150374) II. DESCRIPTION OF PROPOSED CHANGES D. Proposed Changes 4. The only change being brought to the project is an extension of the project closing date from December 31, 2017 to June 30, 2018. Based on cashflow forecasts and work plans from the PIUs, Mogadishu Municipality has sufficient budget until February 2018, Garowe has sufficient budget until April 2018 and Hargeisa until March 2018. (cash projections and work plans for all three PIUs are attached). In spite of this, a 6 month project extension until June 30, 2018 is being sought in order to provide sufficient time for the processing of the follow on SURR and the SUIPP Additional Financing. 5. Overall, the Project Development Objective of SUIPP remains achievable, the PIU performance is satisfactory. An amount of USD 301,912 remains to be disbursed under the grant for Hargeisa (Component 2) and USD 1,085,543 remains to be disbursed for Mogadishu and Garowe (Component 1 and 3). The team has agreed with the borrower on an action plan for completing existing project activities and additional work financed under the additional financing to prepare the foundation for the follow-on project SURR by the revised closing date (the budgets and workplans for all three cities are attached). There are no overdue audit reports for this project. Note to Task Teams: The following sections are system generated and can only be edited online in the Portal. III. SUMMARY OF CHANGES Changed Not Changed Change in Results Framework ✔ Change in Loan Closing Date(s) ✔ Other Change(s) ✔ Change in Implementing Agency ✔ Change in DDO Status ✔ Change in Project's Development Objectives ✔ Change in Components and Cost ✔ The World Bank Somali Urban Investment Planning (P150374) Cancellations Proposed ✔ Reallocation between Disbursement Categories ✔ Change in Disbursements Arrangements ✔ Change in Disbursement Estimates ✔ Change in Overall Risk Rating ✔ Change in Safeguard Policies Triggered ✔ Change of EA category ✔ Change in Legal Covenants ✔ Change in Institutional Arrangements ✔ Change in Financial Management ✔ Change in Procurement ✔ Change in Implementation Schedule ✔ 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 Project Development Objective Indicators PDO_IND_TABLE Institutional assessments of participating agencies Unit of Measure: Number Indicator Type: Custom Baseline Actual (Current) End Target Action Value 0.00 1.00 1.00 Revised Date 28-Aug-2015 23-Oct-2017 30-Jun-2018 Feasibility and preliminary design studies for specific urban investments: primary roads in Mogadishu and Garowe; secondary roads in Mogadishu; solid and liquid waste in Hargeisa Unit of Measure: Number Indicator Type: Custom The World Bank Somali Urban Investment Planning (P150374) Baseline Actual (Current) End Target Action Value 0.00 1.00 1.00 Revised Date 28-Aug-2015 23-Oct-2017 30-Jun-2018 Assessment of Local Development Fund Unit of Measure: Number Indicator Type: Custom Baseline Actual (Current) End Target Action Value 0.00 1.00 1.00 Revised Date 28-Aug-2015 23-Oct-2017 30-Jun-2018 Technical assistance units established in Mogadishu, Garowe, Hargeisa Unit of Measure: Number Indicator Type: Custom Baseline Actual (Current) End Target Action Value 0.00 1.00 1.00 Revised Date 28-Aug-2015 23-Oct-2017 30-Jun-2018 Intermediate Indicators IO_IND_TABLE Contracting for Feasibility Studies and Institutional Assessments Unit of Measure: Number Indicator Type: Custom Baseline Actual (Current) End Target Action Value 0.00 2.00 2.00 Revised Date 25-Oct-2015 23-Oct-2017 30-Jun-2018 OPS_DETAILEDCHANGES_LOANCLOSING_TABLE LOAN CLOSING DATE(S) Original Revised Proposed Proposed Deadline Ln/Cr/Tf Status Closing Closing(s) Closing for Withdrawal Applications The World Bank Somali Urban Investment Planning (P150374) Note to Task Teams: End of system generated content, document is editable from here.