The World Bank Pasture and Livestock Management Improvement Project (P145162) REPORT NO.: RES35863 RESTRUCTURING PAPER ON A PROPOSED PROJECT RESTRUCTURING OF PASTURE AND LIVESTOCK MANAGEMENT IMPROVEMENT PROJECT APPROVED ON JULY 15, 2014 TO KYRGYZ REPUBLIC AGRICULTURE EUROPE AND CENTRAL ASIA Regional Vice President: Cyril E Muller Country Director: Lilia Burunciuc Senior Global Practice Director: Juergen Voegele Practice Manager/Manager: Julian A. Lampietti Task Team Leader: David Tuchschneider, Artavazd Hakobyan The World Bank Pasture and Livestock Management Improvement Project (P145162) ABBREVIATIONS AND ACRONYMS AHHP Animal Health and Husbandry Plan ARIS Community Development and Investment Agency of Kyrgyz Republic CY Calendar Year PUU Pasture User Union SDR Special Drawing Rights USD United States Dollar The World Bank Pasture and Livestock Management Improvement Project (P145162) BASIC DATA Product Information Project ID Financing Instrument P145162 Investment Project Financing Original EA Category Current EA Category Partial Assessment (B) Partial Assessment (B) Approval Date Current Closing Date 15-Jul-2014 31-Mar-2019 Organizations Borrower Responsible Agency Community Development and Investment Kyrgyz Republic Agency,Ministry of Agriculture and Melioration (MOAM) Project Development Objective (PDO) Original PDO The Project Development Objective is to improve community based pasture and livestock management in the Project area OPS_TABLE_PDO_CURRENTPDO Summary Status of Financing Net Ln/Cr/Tf Approval Signing Effectiveness Closing Commitment Disbursed Undisbursed IDA-55210 15-Jul-2014 10-Dec-2014 27-Aug-2015 31-Mar-2019 8.25 2.87 4.66 IDA-H9760 15-Jul-2014 10-Dec-2014 27-Aug-2015 31-Mar-2019 6.75 6.19 0 Policy Waiver(s) Does this restructuring trigger the need for any policy waiver(s)? No The World Bank Pasture and Livestock Management Improvement Project (P145162) The World Bank Pasture and Livestock Management Improvement Project (P145162) I. PROJECT STATUS AND RATIONALE FOR RESTRUCTURING A. Project Status 1. The Project is currently in the full implementation phase and will likely achieve its development objectives if extended by three months. As of December 2018, the Project disbursements were increased significantly. In CY 2017 they were only USD 1.2 million while they were projected to reach USD 4.4 million by the end of 2018. Such a strong threefold increase in disbursements is due to the execution of microprojects by the Pasture User Unions (PUUs) under ARIS support. The current pace of microproject execution is helping to institutionalize the planning cycle and participation in PUUs by animal owners and herders. The participating communities report improved awareness of project interventions and benefits in terms of community-based pasture planning and use. On the other hand, the implementation of Animal Health and Husbandry Plans (AHHPs) is less advanced and rather is uncoordinated, and results on the ground cannot be clearly attributed to project interventions yet. B. Rationale for Restructuring 2. At this stage of project execution, its closing in March 2019 would not be feasible as the project would not fully utilize the opportunity to sustain the benefits of all interventions. The project implementation at the PUU level significantly advanced in 2018, and currently all 140 participating PUUs have 409 microprojects, of which 233 are completed and 176 are under the implementation. Field evaluations and discussions with the communities suggest, that some additional time would be required to ensure that project benefits would be broadened within the communities and would be sustained beyond the closing date. 3. Therefore, despite the late start in microproject implementation, as well as minor delays in the implementation of microprojects in 2018, which were partly caused by early snows and partly by the informal suspension of disbursements to ARIS, the field reviews revealed overall good uptake of microproject benefits. Communities and pasture user unions reported high level of satisfaction with microprojects, and field reviews by an international expert suggest that pasture users gradually change their behavior towards more sustainable use of communal pasture resources. 4. To ensure more sustaining and broader benefits of Pasture and AHHP planning, microprojects and other project activities, it was agreed with the Ministry of Finance and the Ministry of Agriculture to a three-month extension of the project closing date until July 1, 2019. The extension will also serve to (i) complete the updating of the Pasture Management Plans and the Animal Health and Husbandry Plans in all 140 PUUs, (ii) carry out the third measurement of pasture productivity, (iii) provide adequate support to the implementation of the AHHPs, and (iv) carry out a thorough impact evaluation. 5. In addition to the extension of the closing date, the Ministry of Finance requested a partial cancellation of the credit in the amount of SDR 2 mln. The partial cancellation is suggested, because of the following. Sub Component 1.3 “Forestry Enterprise Pasture Management and Investment” was not implemented because its activities were later moved to the Forestry operation. In addition, the envisaged “Pasture boundary demarcation and inventorization” activity under Component 1.1. was dropped as the Government was unable to identify suitable service provider for the assignment. 6. Therefore, the restructuring involved two changes: 7. First, extension of the Project closing date by three months to June 28, 2019. Please note that the Government request proposes the new closing date of June 30, 2019. Since June 30, 2019 is not a working day, it is proposed to establish the new closing date of June 28, 2019. Second, partial cancellation of the IDA credit amount in the order of SDR 2,00 million (equivalent to USD 2.8 mln). 8. The Project has no outstanding audit reports, and previous audits were found by the Association to be acceptable. The World Bank Pasture and Livestock Management Improvement Project (P145162) II. SUMMARY OF CHANGES Changed Not Changed Components and Cost ✔ Loan Closing Date(s) ✔ Cancellations Proposed ✔ Reallocation between Disbursement Categories ✔ Implementation Schedule ✔ Implementing Agency ✔ DDO Status ✔ Project's Development Objectives ✔ Results Framework ✔ Disbursements Arrangements ✔ Disbursement Estimates ✔ Overall Risk Rating ✔ Safeguard Policies Triggered ✔ EA category ✔ Legal Covenants ✔ Institutional Arrangements ✔ Financial Management ✔ Procurement ✔ Other Change(s) ✔ Economic and Financial Analysis ✔ Technical Analysis ✔ Social Analysis ✔ Environmental Analysis ✔ The World Bank Pasture and Livestock Management Improvement Project (P145162) IV. DETAILED CHANGE(S) OPS_DETAILEDCHANGES_COMPONENTS_TABLE COMPONENTS Current Current Proposed Proposed Cost Action Component Name Component Name Cost (US$M) (US$M) Community Based Pasture Community Based Pasture 11.44 Revised 9.66 Management Management Community Based Animal Health Community Based Animal 1.85 Revised 0.55 and Husbandry Services Health and Husbandry Services Project Management 1.70 Revised Project Management 0.58 TOTAL 14.99 10.79 OPS_DETAILEDCHANGES_LOANCLOSING_TABLE LOAN CLOSING DATE(S) Original Revised Proposed Proposed Deadline Ln/Cr/Tf Status Closing Closing(s) Closing for Withdrawal Applications IDA-55210 Effective 31-Mar-2019 28-Jun-2019 28-Oct-2019 IDA-H9760 Effective 31-Mar-2019 28-Jun-2019 28-Oct-2019 OPS_DETAILEDCHANGES_CANCELLATIONS_TABLE CANCELLATIONS Value Reason Current Cancellation New Ln/Cr/Tf Status Currency Date of for Amount Amount Amount Cancellation Cancellation BORROWER' S REQUEST IDA-55210- Disburs XDR 5,400,000.00 2,000,000.00 28-Jan-2019 3,400,000.00 FOR 001 ing COUNTRY REASONS BORROWER' S REQUEST IDA-H9760- Disburs XDR 4,400,000.00 0.00 28-Jan-2019 4,400,000.00 FOR 001 ing COUNTRY REASONS OPS_DETAILEDCHANGES_REALLOCATION _TABLE REALLOCATION BETWEEN DISBURSEMENT CATEGORIES The World Bank Pasture and Livestock Management Improvement Project (P145162) Financing % Current Allocation Actuals + Committed Proposed Allocation (Type Total) Current Proposed IDA-55210-001 | Currency: XDR iLap Category Sequence No: 1 Current Expenditure Category: GO,W,NON CS, CS, TR, IOC 1,540,000.00 0.00 0.00 100.00 100.00 iLap Category Sequence No: 2 Current Expenditure Category: GO,W,NON CS, CS, TR, IOC 1,230,000.00 37,873.82 770,000.00 100.00 100.00 iLap Category Sequence No: 3 Current Expenditure Category: SUB GR. PART I.A(V), I.C(IV) 2,440,000.00 1,655,810.49 2,440,000.00 100.00 100.00 iLap Category Sequence No: 4 Current Expenditure Category: SUB GR. PART II.A(I), II.B(II) 190,000.00 0.00 190,000.00 100.00 100.00 Total 5,400,000.00 1,693,684.31 3,400,000.00 IDA-H9760-001 | Currency: XDR iLap Category Sequence No: 1 Current Expenditure Category: GO,W,NON CS, CS, TR, IOC 1,240,000.00 1,008,058.56 1,240,000.00 100.00 100.00 iLap Category Sequence No: 2 Current Expenditure Category: GO,W,NON CS, CS, TR, IOC 1,010,000.00 917,058.43 1,010,000.00 100.00 100.00 iLap Category Sequence No: 3 Current Expenditure Category: SUB GR. PART I.A(V), I.C(IV) 1,990,000.00 1,976,190.70 1,990,000.00 100.00 100.00 iLap Category Sequence No: 4 Current Expenditure Category: SUB GR. PART II.A(I), II.B(II) The World Bank Pasture and Livestock Management Improvement Project (P145162) 160,000.00 34,577.01 160,000.00 100.00 100.00 Total 4,400,000.00 3,935,884.70 4,400,000.00 .