The World Bank Yemen Emergency Crisis Response Project (P159053) REPORT NO.: RES31493 DOCUMENT OF THE WORLD BANK RESTRUCTURING PAPER ON A PROPOSED PROJECT RESTRUCTURING OF YEMEN EMERGENCY CRISIS RESPONSE PROJECT APPROVED ON JULY 19, 2016 TO UNDP SOCIAL PROTECTION & LABOR MIDDLE EAST AND NORTH AFRICA Regional Vice President: Hafez M. H. Ghanem Country Director: Asad Alam Senior Global Practice Director: Michal J. Rutkowski Practice Manager/Manager: Hana Brixi Task Team Leader: Afrah Alawi Al-Ahmadi, Ana Paula Fialho Lopes The World Bank Yemen Emergency Crisis Response Project (P159053) I. BASIC DATA Product Information Project ID Financing Instrument P159053 Investment Project Financing Original EA Category Current EA Category Partial Assessment (B) Partial Assessment (B) Approval Date Current Closing Date 19-Jul-2016 30-Jun-2019 Organizations Borrower Responsible Agency UNDP UNDP,UNICEF Project Development Objective (PDO) Original PDO The Project Development Objective is to provide short-term employment and access to selected basic services to the most vulnerable; and preserve existing implementation capacity of two service delivery programs. Current PDO The Project Development Objective is to provide short-term employment and access to selected basic services to the most vulnerable; preserve existing implementation capacity of two service delivery programs; and provide emergency cash transfers to the poor and vulnerable in response to the food crisis. Summary Status of Financing Net Ln/Cr/Tf Approval Signing Effectiveness Closing Commitment Disbursed Undisbursed IDA-D1970 19-May-2017 30-May-2017 01-Jun-2017 30-Jun-2019 200.00 143.06 60.82 IDA-D1620 17-Jan-2017 25-Jan-2017 25-Jan-2017 30-Jun-2019 250.00 136.01 128.72 IDA-D1320 19-Jul-2016 02-Aug-2016 02-Aug-2016 30-Jun-2019 50.00 49.26 0 The World Bank Yemen Emergency Crisis Response Project (P159053) Policy Waiver(s) Does this restructuring trigger the need for any policy waiver(s)? No II. SUMMARY OF PROJECT STATUS AND PROPOSED CHANGES Under the parent project, a Grant of US$50 million equivalent was approved by the World Bank in July 2016, followed by a first additional financing of US$250 million equivalent grant approved in January 2017 to scale up the coverage and impact of the Labor-Intensive Works and Services (LIWS) interventions. A second additional financing (AF2) of US$200 million equivalent grant was approved in May 2017, to deliver emergency cash transfers, in response to the alarming levels of food insecurity in the country. To date, project disbursements stand at US$328.33 million equivalent (63.4%), out of the total Grant amount of US$500 million equivalent and the last ISR rated progress towards achievement of Project Development Objective and Implementation Progress as Satisfactory. The Labor-Intensive Works and Community Service Component (implemented by the United Nations Development Program -UNDP) continues to show progress and has advanced well. As of January 15, 2018, the component has created over 1.83 million working days and benefits approximately 10,972 workers (33% female, 45% internally displaced people and returnees, and 52% youth); 64,049 vulnerable women and children under five received nutrition- sensitive cash transfers and treatment/preventative services; about 937,752 individuals (direct recipients and family members) have benefited from the income support provided through wages, transfers and livelihood activities; and over a million people provided with access to key services and community infrastructures. The Second Additional Financing (AF2) - the Emergency Cash Transfer Component (implemented by the United Nations Children's Emergency Fund -UNICEF) is also progressing well. As of January 15, 2018, approximately 1.3 million households (about 7 million individuals) have received cash transfers under the first quarter payment in all governorates and districts of Yemen. Approximately 44 percent of the direct recipients are women. The first quarter payment ended in November 2017, and the second quarter payment is planned for delivery beginning on February 25, 2018. To date, total disbursements under AF2 stand at US$148.7 million equivalent, or 70% of the grant amount of US$200 million equivalent. The proposed Level-2 restructuring is in response to a letter received from the Recipient -UNICEF, dated January 31, 2018, and requesting a reallocation of Grant proceeds between categories under the AF2 (IDA-D1970). The request proposes a reallocation of US$2.57 million equivalent from Category 1a (Cash Transfers) to Category 2a (Consultants Services). The reallocation is required to cover costs of community validation of identity (estimated at US$1.2 million equivalent). This activity was deemed necessary based on implementation experience of the first quarter, which requires community-based validation of identity for certain cases that do not possess the required identification documents and/or cannot obtain them (mainly associated with the elderly and/ or disabled). The reallocation would also help fill a funding gap of approximately US$1.37 million equivalent which resulted from changes introduced to the scope of a number of service provider contracts -which would help improve the delivery processes. A rounded total amount of 1,778,000 XDR (or US$2,571,094.68) is being reallocated from Category 1a to Category 2a. The proposed restructuring would be the second level 2 restructuring to be processed under this project (AF2). The first restructuring was approved in August 2017 and entailed a reallocation of proceeds among withdrawal categories. The amount previously reallocated is earmarked/committed by UNICEF for other contracts and activities as detailed in The World Bank Yemen Emergency Crisis Response Project (P159053) the previous reallocation, and disbursement will be reflected in the next IFR to be submitted by UNICEF. This restructuring does not entail any change in scope or nature of project activities, implementation arrangements or any other amendments and the project has no overdue audits. III. DETAILED CHANGES REALLOCATION BETWEEN DISBURSEMENT CATEGORIES Current Current Actuals + Proposed Disbursement % Ln/Cr/TF Expenditure Allocation Committed Allocation (Type Total) Category Current Proposed IDA-D1970- CASH FOR P A.1 133,321,000.00 3,858,693.19 131,543,000.00 100.00 100.00 001 Currency: Agencies Fees XDR 4,039,671.00 0.00 4,039,671.00 100.00 100.00 A.2 CS Part B 2,079,000.00 0.00 3,857,000.00 100.00 100.00 3rd Party 1,100,000.00 0.00 1,100,000.00 100.00 100.00 Monitoring Recipient Direct 2,500,000.00 0.00 2,500,000.00 100.00 100.00 Cost Recipient Indirect Cost 2% 2,860,329.00 0.00 2,860,329.00 100.00 100.00 Tot Fina Total 145,900,000.00 3,858,693.19 145,900,000.00