The World Bank Vietnam Managing Natural Hazards Project (P118783) REPORT NO.: RES36350 DOCUMENT OF THE WORLD BANK RESTRUCTURING PAPER ON A PROPOSED PROJECT RESTRUCTURING OF VIETNAM MANAGING NATURAL HAZARDS PROJECT APPROVED ON JULY 26, 2012 TO SOCIALIST REPUBLIC OF VIETNAM SOCIAL, URBAN, RURAL AND RESILIENCE GLOBAL PRACTICE EAST ASIA AND PACIFIC Regional Vice President: Victoria Kwakwa Country Director: Ousmane Dione Senior Global Practice Director: Ede Jorge Ijjasz-Vasquez Practice Manager/Manager: Francis Ghesquiere Task Team Leader: Poonam Pillai, Dzung Huy Nguyen The World Bank Vietnam Managing Natural Hazards Project (P118783) I. BASIC DATA Product Information Project ID Financing Instrument P118783 Investment Project Financing Original EA Category Current EA Category Partial Assessment (B) Partial Assessment (B) Approval Date Current Closing Date 26-Jul-2012 31-Mar-2019 Organizations Borrower Responsible Agency Ministry of Agriculture and Rural Development,Ministry Socialist Republic of Vietnam of Natural Resources and Environment, Vietnam Project Development Objective (PDO) Original PDO To increase the resilience of people and economic assets to natural hazards in selected river basins of the project provinces within the overall framework of Vietnam's National Disaster Prevention, Response and Mitigation Strategy Towards 2020. Summary Status of Financing Net Ln/Cr/Tf Approval Signing Effectiveness Closing Commitment Disbursed Undisbursed IDA-51390 26-Jul-2012 13-Sep-2012 12-Dec-2012 31-Mar-2019 150.00 115.10 26.28 Policy Waiver(s) Does this restructuring trigger the need for any policy waiver(s)? No I. SUMMARY OF PROJECT STATUS AND PROPOSED CHANGES The World Bank Vietnam Managing Natural Hazards Project (P118783) Summary of Changes Following a request from the Ministry of Finance, dated March 4, 2019, a level two restructuring for the Vietnam Managing Natural Hazards Project is proposed to extend the Credit closing date by six months from March 31, 2019 to September 30, 2019. The project was earlier restructured on May 31, 2016 as part of a one-time amendment for 13 projects for the entire Vietnam-World Bank Group (WBG) portfolio. This second restructuring to extend the closing date is being requested to facilitate implementation of the remaining project activities and enhance achievement of the Project Development Objective (PDO). Project Status The implementation of the project and progress towards achievement of the PDO are rated Moderately Satisfactory in the last ISR of December 20, 2018. Overall, the Project is progressing effectively and is expected to fully achieve its PDO. During 2018, the Project caught up significantly with the implementation schedule and most of the planned results indicators are well on their way to being achieved. The Project has achieved its target (PDO indicator 1) of increasing the resilience of economic assets by protecting 51,307 ha of land from floods by supporting improved flood protection measures. It has also enhanced community resilience by protecting 505,802 people through the provision of enhanced priority infrastructure (PDO indicator 2) and is on track to meet the final target of protecting 550,000 people. The number of communes covered by storm and flood early warning services with increased awareness about emergency response (PDO indicator 3) now stands at 88, and the target of covering 100 communes is expected to be met by the new closing date of September 30, 2019. Activities supporting preparation/updating river basin plans (PDO indicator 4) are underway. In the last one and a half years, the Project has made substantial progress under all components and has disbursed about 81% of the IDA credit. It is in full compliance with its environmental and social safeguards. Its environmental risk falls under category B, and its compliance with the safeguards instruments has been Moderately Satisfactory (MS) to date. Project procurement is currently rated as "Satisfactory". Financial Management has been rated Moderately Satisfactory, and there are no overdue audits (unqualified opinion for which has been received) or Integrity Vice Presidency (INT) cases. Interim financial reports for 2017 and 2018 were submitted to the Bank on time and were of acceptable quality. The borrower is in compliance with all legal covenants. The Project has important lessons to offer for strengthening community resilience and upon completion, has significant potential to be scaled up to other provinces. Rationale for Change While most activities are on track and have been completed, additional time is needed for completing the following activities: (i) completion of construction of two infrastructure sub-projects (storm safe harbor of My A in Quang Ngai and Ninh Chu in Ninh Thuan); (ii) development of river basin Disaster Risk Management (DRM) plans linked with PDO indicator 4, both managed by the Ministry of Agriculture and Rural Development (MARD); and (iii) completion of three ongoing complex technical packages (central data hub, river forecasting and development of end-to-end early warning systems managed by Ministry of Natural Resources and Environment (MONRE). Most importantly, additional time is needed by MONRE, not just for completion of ongoing technical packages but to test operation and systems integration of the hydromet monitoring, forecasting and end-to-end early warning system. The extension will allow the Project to effectively complete these ongoing activities and to disburse remaining Credit proceeds. This will be the first extension of the Credit closing date. II. DETAILED CHANGES The World Bank Vietnam Managing Natural Hazards Project (P118783) LOAN CLOSING DATE(S) Original Revised Proposed Proposed Deadline Ln/Cr/Tf Status Closing Closing(s) Closing for Withdrawal Applications IDA-51390 Effective 31-Mar-2019 30-Sep-2019 30-Jan-2020