The World Bank AFCC2/RI-Regional Great Lakes Integrated Agriculture Development Project (P143307) REPORT NO.: RES31817 RESTRUCTURING PAPER ON A PROPOSED PROJECT RESTRUCTURING OF AFCC2/RI-REGIONAL GREAT LAKES INTEGRATED AGRICULTURE DEVELOPMENT PROJECT APPROVED ON JUNE 21, 2016 TO THE DEMOCRATIC REPUBLIC OF CONGO AGRICULTURE AFRICA Regional Vice President: Makhtar Diop Country Director: Franck Bousquet Senior Global Practice Director: Juergen Voegele Practice Manager/Manager: Dina Umali-Deininger Task Team Leader: Nora Kaoues, Amadou Oumar Ba, Amadou Alassane The World Bank AFCC2/RI-Regional Great Lakes Integrated Agriculture Development Project (P143307) ABBREVIATIONS AND ACRONYMS IDA: International Development Association PDO: Project Development objective RGLIADP: Regional Great Lakes Integrated Agriculture Development Project The World Bank AFCC2/RI-Regional Great Lakes Integrated Agriculture Development Project (P143307) 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 P143307 Investment Project Financing Original EA Category Current EA Category Full Assessment (A) Full Assessment (A) Approval Date Current Closing Date 21-Jun-2016 30-Nov-2022 Organizations Borrower Responsible Agency The Democratic Republic of Congo Minstry of Agriculture and rural Development Project Development Objective (PDO) Original PDO The project development objectives (PDO) are (i) €€to increase agricultural productivity and commercialization in targeted areas in the territory of the Recipient and improve agricultural regional integration; and (ii) to provide immediate and effective response in the event of an eligible crisis or emergency. OPS_TABLE_PDO_CURRENTPDO Summary Status of Financing Net Ln/Cr/Tf Approval Signing Effectiveness Closing Commitment Disbursed Undisbursed IDA-D1810 05-May-2017 14-Jun-2017 15-Nov-2017 30-Nov-2022 75.00 11.26 69.04 IDA-58520 21-Jun-2016 07-Sep-2016 31-Dec-2021 150.00 0 154.31 The World Bank AFCC2/RI-Regional Great Lakes Integrated Agriculture Development Project (P143307) Policy Waiver(s) Does this restructuring trigger the need for any policy waiver(s)? No I. PROJECT STATUS AND RATIONALE FOR RESTRUCTURING Background: The development objective of the Regional Great Lakes Integrated Agriculture Development Project is to (i) increase agricultural productivity and commercialization in targeted areas in the territory of the Recipient and improve agricultural regional integration; and (ii) to provide immediate and effective response in the event of an eligible crisis or emergency. The total project financing is US$ 150 million IDA. The RGLIADP was approved by the Board on June 21, 2016 and the legal agreement was signed on September 7, 2016, with a first effectiveness deadline set for January 5, 2017, extended a first time to July 31, 2017, then to December 8, 2017 and exceptionally a third time to March 30, 2018. All Effectiveness Conditions Under the Financing Agreement: Credit No. 5852-ZR are now fulfilled. The Financing Agreement includes three conditions of effectiveness: (i) Establishment of a Project Coordination Unit; (ii) Establishment of the Project Steering Committee; and (iii) Adoption of the Project Implementation Manual. To date, all three project effectiveness conditions have been fulfilled: (i) Establishment of a Project Coordination Unit and appointment of a Project coordinator, a procurement specialist, a finance and administration manager and an accountant for the Project Coordination Unit: This is completed. the project coordination unit is the same as the Project Implementation Unit (PIU) of the Projet d’Appui à la Réhabilitation et la Relance du Secteur Agricole (PARRSA1) project located within the Ministry of Agriculture. It managed the Project Preparation PPA during the preparation phase. The Recipient has confirmed this through a specific Arrêté which was signed on October 21, 2017; in addition, the recruitment process of key personal of the Provincial Project Implementation Units has been completed; (ii) Establishment of the Project Steering Committee: This is completed. An Arrêté was prepared and signed on October 21, 2017 by the Minister of Agriculture; (iii) Adoption of the Project Implementation Manual: the final document was approved by the Bank on March 9, 2018. 1 Agriculture Rehabilitation and Recovery Support Project (ARRSP) The World Bank AFCC2/RI-Regional Great Lakes Integrated Agriculture Development Project (P143307) (iv) The Recipient has submitted to the Association a ratification law No17/010 dated November 21, 2017 attesting that the Financing Agreement is legally binding. The legal opinion issued on January 1, 2018. II. DESCRIPTION OF PROPOSED CHANGES Proposed Changes: The designation of a representative for the Regional Coordination Committee is a dated covenant that was due December 15, 2016. As a representative has not yet been designated, this lapsed covenant has become an effectiveness condition. The Recipient is working on the designation of the representative and has notified the Bank that it would like first to convene a meeting with their counterparts from Burundi and discuss further whom to designate as this would not impact the first six months of implementation. Therefore, the Recipient would like to designate a representative for the Regional Coordination Committee no later than six months after the Projects Effective Date. III. SUMMARY OF CHANGES Changed Not Changed Change in Legal Covenants ✔ Other Change(s) ✔ Change in Implementing Agency ✔ Change in DDO Status ✔ Change in Project's Development Objectives ✔ Change in Results Framework ✔ Change in Components and Cost ✔ Change in Loan Closing Date(s) ✔ 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 Institutional Arrangements ✔ The World Bank AFCC2/RI-Regional Great Lakes Integrated Agriculture Development Project (P143307) 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_LEGCOV_TABLE LEGAL COVENANTS Loan/Credit/TF Description Status Action Finance Agreement :Recruitment of external auditor | Description :The Recipient shall recruit, no later than six (6) months after the Effective Date, an independent IDA-58520 Not yet due No Change external auditor for the Project in accordance with the provisions of Section III of Schedule 2 to the Financing Agreement. | Due Date : Finance Agreement :Upgrading of existing Financial Management Software and fiduciary staff training | Description :The Recipient shall have upgraded the existing financial management software, no later than three (3) months after the Effective Date, in form and IDA-58520 Not yet due No Change substance acceptable to the Association and included the procurement system (planning, monitoring and contract management) with thereto. The Recipient should train new fiduciary staff on the use of that software. | Due Date : Finance Agreement :Update the project manual of IDA-58520 Expected soon No Change procedures that will include FM and accounting aspect The World Bank AFCC2/RI-Regional Great Lakes Integrated Agriculture Development Project (P143307) | Description :The Recipient shall ensure that the existing financial manual of procedures has been updated within 3 months after the effectiveness to take into consideration any specific concerns relating to this project. | Due Date : Finance Agreement: Designate, by no later than IDA-58520 December 15, 2016, a representative for the Not complied with New RegionalCoordination Committee. Please note: the last dated covenant “Finance Agreement: Designate, by no later than December 15, 2016, a representative for the RegionalCoordination Committee” is not new. It was not reflected into the Project’s datasheet. Its due date was December 15, 2016. It is now due , no later than six (6) months after the Effective Date.