The World Bank Water Sector Capacity Building & Advisory Services Project (WCAP) (P110099) REPORT NO.: RES37881 RESTRUCTURING PAPER ON A PROPOSED PROJECT RESTRUCTURING OF WATER SECTOR CAPACITY BUILDING & ADVISORY SERVICES PROJECT (WCAP) APPROVED ON JUNE 26, 2008 TO ECONOMICS AFFAIRS DIVISION, ISLAMIC REPUBLIC OF PAKISTAN WATER SOUTH ASIA Regional Vice President: Hartwig Schafer Country Director: Patchamuthu Illangovan Regional Director: John A. Roome Practice Manager/Manager: Michael Haney Task Team Leader(s): William Young The World Bank Water Sector Capacity Building & Advisory Services Project (WCAP) (P110099) ABBREVIATIONS AND ACRONYMS IOC Incremental Operating Costs IRSA Indus River System Authority MoWR Ministry of Water Resources MTR Mid-Term Review PMPIU Project Management and Policy Implementation Unit WAPDA Water and Power Development Authority The World Bank Water Sector Capacity Building & Advisory Services Project (WCAP) (P110099) BASIC DATA Product Information Project ID Financing Instrument P110099 Investment Project Financing Original EA Category Current EA Category Partial Assessment (B) Partial Assessment (B) Approval Date Current Closing Date 26-Jun-2008 30-Jun-2021 Organizations Borrower Responsible Agency Water and Power Development Authority (WAPDA),Indus River System Authority (IRSA),Ministry of Economics Affairs Division, Government of Pakistan Water and Power, Government of Pakistan,Project Management and Policy Implementation Unit (PMPIU) Project Development Objective (PDO) Original PDO The project objective is to improve the management and investment planning of water resources in the Indus River Basin. OPS_TABLE_PDO_CURRENTPDO Summary Status of Financing Net Ln/Cr/Tf Approval Signing Effectiveness Closing Commitment Disbursed Undisbursed IDA-57600 21-Dec-2015 27-Jan-2016 05-Feb-2016 30-Jun-2021 34.95 6.43 28.63 IDA-44370 26-Jun-2008 14-Jul-2008 22-Sep-2008 31-Jan-2016 37.13 34.91 0 Policy Waiver(s) Does this restructuring trigger the need for any policy waiver(s)? No The World Bank Water Sector Capacity Building & Advisory Services Project (WCAP) (P110099) I. PROJECT STATUS AND RATIONALE FOR RESTRUCTURING A. Project Status 1. The Additional Financing for the project was approved in 2015. The project ends in June 2021. 2. The last ISR lowered IP and PDO ratings from Moderately Unsatisfactory to Unsatisfactory given the lack of recent progress. Since the latest ISR (February 07, 2020), the key senior PMPIU staff (Team Leader and Director Technical) have resigned. The agreement by MoWR to hire and empower a full-time project director remains unfulfilled. 3. Undisbursed funds for the project are USD 28.6M (from AF of USD 34.95M). Approximately USD 1.2M remain in the designated account to cover pending payments for recently completed minor contracts. B. Rationale for Restructuring 4. The Government of Pakistan, through the Economic Affairs Division has requested a cancellation of USD 25M. The residual undisbursed sum (USD 3.8M) and the funds in the designated account (USD 1.2M) will be used to cover pending payments for completed contracts and soon to complete contracts. 5. The cancelled amount of USD 25M will be allocated to the Government of Pakistan’s response to COVID-19 pandemic. II. DESCRIPTION OF PROPOSED CHANGES 6. The restructured project will consist of the following activities: Activities Component Implementing Status Agency Kabul River Flood Forecasting B1 WAPDA Final report pending. Supply & installation of Automatic B1 WAPDA Equipment supplied; installation Weather Stations pending. Up-gradation of Nandipur Hydraulic B2 PMPIU Opening of Inland Line of Credit (LC) is Research Station in final stages of processing. PMPIU Consultants C1 PMPIU Until closure IOC C1 PMPIU Until closure The World Bank Water Sector Capacity Building & Advisory Services Project (WCAP) (P110099) III. SUMMARY OF CHANGES Changed Not Changed Results Framework ✔ Components and Cost ✔ Cancellations Proposed ✔ Reallocation between Disbursement Categories ✔ Disbursement Estimates ✔ Overall Risk Rating ✔ Implementing Agency ✔ DDO Status ✔ Project's Development Objectives ✔ DLIs ✔ Loan Closing Date(s) ✔ Disbursements Arrangements ✔ 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) The World Bank Water Sector Capacity Building & Advisory Services Project (WCAP) (P110099) OPS_DETAILEDCHANGES_COMPONENTS_TABLE COMPONENTS Current Current Proposed Proposed Cost Action Component Name Component Name Cost (US$M) (US$M) Component A: Capacity Component A: Capacity building building of and support to the of and support to the federal 19.22 Revised federal institutions in water 0.70 institutions in water resources resources planning and planning and management. management. Component B: Improvement in Component B: Improvement in water resources management 39.08 Revised water resources management 4.95 and development and development Component C: Project Component C: Project management and additional 14.65 Revised management and additional 4.30 studies studies TOTAL 72.95 9.95 OPS_DETAILEDCHANGES_CANCELLATIONS_TABLE CANCELLATIONS Value Reason Current Cancellation New Ln/Cr/Tf Status Currency Date of for Amount Amount Amount Cancellation Cancellation LOAN IDA-44370- Repayi RESTRUCTUR XDR 22,768,980.53 0.00 14-Aug-2019 22,768,980.53 001 ng ING, COST SAVINGS LOAN IDA-57600- Disburs RESTRUCTUR XDR 25,100,000.00 18,133,813.03 16-Mar-2020 6,966,186.97 001 ing ING, COST SAVINGS OPS_DETAILEDCHANGES_REALLOCATION _TABLE REALLOCATION BETWEEN DISBURSEMENT CATEGORIES Financing % Current Allocation Actuals + Committed Proposed Allocation (Type Total) Current Proposed IDA-57600-001 | Currency: XDR iLap Category Sequence No: 1 Current Expenditure Category: GD,MinorWK,NonCS,CS,Trng&OC The World Bank Water Sector Capacity Building & Advisory Services Project (WCAP) (P110099) 25,100,000.00 2,848,897.73 6,966,186.97 100.00 100 Total 25,100,000.00 2,848,897.73 6,966,186.97 OPS_DETAILEDCHANGES_DISBURSEMENT_TABLE DISBURSEMENT ESTIMATES Change in Disbursement Estimates Yes Year Current Proposed 2008 0.00 1,500,000.00 2009 70,000.00 690,000.00 2010 830,000.00 8,610,000.00 2011 15,020,000.00 6,630,000.00 2012 14,050,000.00 8,110,000.00 2013 8,030,000.00 4,780,000.00 2014 0.00 4,660,000.00 2015 0.00 420,000.00 2016 3,000,000.00 1,358,000.00 2017 5,000,000.00 822,000.00 2018 6,000,000.00 150,000.00 2019 6,000,000.00 950,000.00 2020 7,000,000.00 3,000,000.00 2021 7,950,000.00 0.00 OPS_DETAILEDCHANGES_SORT_TABLE SYSTEMATIC OPERATIONS RISK-RATING TOOL (SORT) Risk Category Rating at Approval Current Rating Political and Governance  Moderate Macroeconomic  Moderate Sector Strategies and Policies  Moderate Technical Design of Project or Program  Moderate The World Bank Water Sector Capacity Building & Advisory Services Project (WCAP) (P110099) Institutional Capacity for Implementation and  Substantial Sustainability Fiduciary  Moderate Environment and Social  Low Stakeholders  Moderate Other Overall  Substantial . The World Bank Water Sector Capacity Building & Advisory Services Project (WCAP) (P110099) . Results framework COUNTRY: Pakistan Water Sector Capacity Building & Advisory Services Project (WCAP) Project Development Objectives(s) The project objective is to improve the management and investment planning of water resources in the Indus River Basin. Project Development Objective Indicators by Objectives/ Outcomes RESULT_FRAME_TBL_PDO Indicator Name DLI Baseline End Target Improved management and investment planning of water resources in the Indus River Basin Number of modern tools operationalized and used for decision 2.00 6.00 making (Number) Rationale: Action: This indicator has been Revised End target reduced to reflect reduced scope of project. Staff at the Ministry of Water & Power dealing with Water, Water section of Planning Development and Reform, Water section of WAPDA, IRSA and Provincial Irrigation Direct Project Beneficiaries (number), of which female (%) (Text) 0.00 Departments of the Sindh, Punjab and Balochistan province. Total staff expected to increase to 250 including around 1 percent female. PDO Table SPACE The World Bank Water Sector Capacity Building & Advisory Services Project (WCAP) (P110099) Intermediate Results Indicators by Components RESULT_FRAME_TBL_IO Indicator Name DLI Baseline End Target Capacity Building and Support to Federal and Provincial Water Resources Planning & Management No. of labs and facilities for water resources management 0.00 4.00 established and/or upgraded (Number) Number of Federal and Provincial government staff trained in 0.00 90.00 water policy, planning and management (Number) Improvement in Water Resources Management and Development Telemetry stations upgraded (Number) 80.00 90.00 Action: This indicator has been Marked for Deletion No. of decision support tools and models for water resources 0.00 7.00 management established and/or upgraded (Number) Water balance and flow data made accessible publically (Text) No Yes Project Management and Additional Studies Number of strategic assessments for improved WRM carried out. 0.00 15.00 (Number) Assessments carried out for improved operations of hydraulic 0.00 1.00 infrastructure (Number) IO Table SPACE The World Bank Water Sector Capacity Building & Advisory Services Project (WCAP) (P110099) Note to Task Teams: End of system generated content, document is editable from here. 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