The World Bank ARP/II-Integrated Solid Waste Management (P110679) REPORT NO.: RES30213 DOCUMENT OF THE WORLD BANK RESTRUCTURING PAPER ON A PROPOSED PROJECT RESTRUCTURING OF ARP/II-INTEGRATED SOLID WASTE MANAGEMENT APPROVED ON JUNE 17, 2008 TO GOVERNMENT OF AZERBAIJAN/MINISTRY OF FINANCE SOCIAL, URBAN, RURAL AND RESILIENCE GLOBAL PRACTICE EUROPE AND CENTRAL ASIA Regional Vice President: Cyril E Muller Country Director: Mercy Miyang Tembon Senior Global Practice Director: Ede Jorge Ijjasz-Vasquez Practice Manager/Manager: David N. Sislen Task Team Leader: Kremena M. Ionkova The World Bank ARP/II-Integrated Solid Waste Management (P110679) I. BASIC DATA Product Information Project ID Financing Instrument P110679 Investment Project Financing Original EA Category Current EA Category Partial Assessment (B) Partial Assessment (B) Approval Date Current Closing Date 17-Jun-2008 30-Mar-2018 Organizations Borrower Responsible Agency Government of Azerbaijan/Ministry of Finance Ministry of Economy and Industry Project Development Objective (PDO) Original PDO The overall project objective is to support the reform of the Greater Baku solid waste collection and disposal operations into an effective and sustainable system in the fields of (i) data collection and strategic planning, (ii) buildup of operational, management and communication capabilities of the responsible agency, (iii) the rollout of collection services, and (iv) the improvement of environmental conditions at the existing waste disposal sites. Summary Status of Financing Net Ln/Cr/Tf Approval Signing Effectiveness Closing Commitment Disbursed Undisbursed IBRD-82740 27-Jun-2013 10-Jan-2014 21-Mar-2014 30-Mar-2018 47.10 46.11 .99 IBRD-75490 17-Jun-2008 20-May-2009 31-Jul-2009 30-Sep-2016 29.50 29.50 0 Policy Waiver(s) Does this restructuring trigger the need for any policy waiver(s)? No The World Bank ARP/II-Integrated Solid Waste Management (P110679) II. SUMMARY OF PROJECT STATUS AND PROPOSED CHANGES Based of a request from the Ministry of Finance of Azerbaijan dated October 24, 2017 this restructuring seeks to extend the Closing date of the Integrated Solid Waste Management Project Additional Financing (ISWMP AF) by five months from March 30, 2018 to August 31, 2018 (the 5 month extension was discussed and agreed with the Government as sufficient to finalize the remaining activities under the project). This will be the second Closing Date extension being requested for the Additional Financing (the parent project closed on September 30, 2016). The cumulated extension of the Closing Date for the ISWMP AF is under 2 years. All activities under the parent project have been completed successfully.These included the first phase of rehabilitation of the Balakhani landfill, closure and remediation of 154ha of wild dumps, procurement of secondary collection equipment, technical assistance to improve the solid waste management system in Baku, and capacity building for the state owned waste management company ‘Tamiz Shahar’. At closure, the parent project was fully disbursed. The following activities under the AF have also been completed: the second phase of rehabilitation of the Balakhani landfill, the development of a national solid waste strategy and national investment plan including six feasibility studies. Despite successful implementation, the remaining time prior to project closure on March 30, 2018 will not be sufficient to complete two important ongoing activities. First, additional time is needed to finalize the work on the review of the legal framework governing the waste management sector including revisions to legal instruments supported under the project. The legal framework review aims to evaluate and propose modifications to the existing sector legal and regulatory framework and facilitate the implementation of the new national strategy. The updated legal framework, along with the national strategy and the strategy for the Greater Baku region (completed earlier under the parent project) will establish the basis for future investments, objectives, activities and performance targets for service delivery and new facility development in Azerbaijan. Second, the preparation of the Environmental and Social Impact Assessment (ESIA) for the activities and investments included into the national strategy and the national investment plan (some of these activities may potentially be included in a future Bank investment). Disbursements stand at $46.1 million, equivalent to 98 percent of the AF. The Implementation Progress (IP) and progress towards achieving of the Project Development Objective (PDO) are rated Satisfactory (S). The majority of PDO and intermediate indicators have been met and the PDO is on track to be achieved. Fiduciary arrangements continue to be satisfactory and there are no outstanding audits. Environmental and social safeguards are also satisfactory. The performance of the Borrower and the PIU is satisfactory. The Borrower has prepared a specific action plan acceptable to the Bank to complete the project and project activities following the requested extension of Closing Date. The restructuring will extend the closing deadline of the ISWMP AF and will not result in any changes to the PDO, indicators, targets or the safeguards category. III. DETAILED CHANGES LOAN CLOSING DATE(S) The World Bank ARP/II-Integrated Solid Waste Management (P110679) Original Revised Proposed Proposed Deadline Ln/Cr/Tf Status Closing Closing(s) Closing for Withdrawal Applications 30-Sep-2016, 29-Sep- IBRD-75490 Closed 30-Sep-2013 2017 IBRD-82740 Effective 30-Sep-2016 30-Mar-2018 31-Aug-2018 31-Dec-2018