Document of
                    The World Bank


                                                 Report No: 56414 v1




                 RESTRUCTURING PAPER

                         ON A

            PROPOSED PROJECT RESTRUCTURING
                            OF
SECOND NATIONAL FADAMA DEVELOPMENT CRITICAL ECOSYSTEM
                 MANAGEMENT PROJECT
                        GRANT
                      April 11, 2006


                        TO THE

             FEDERAL REPUBLIC OF NIGERIA


                     August 16, 2010
                 ABBREVIATIONS AND ACRONYMS
GIS   Geographical Information Systems
IP    Implementation Progress
M&E   Monitoring and Evaluation
PDO   Project Development Objective
SWS   State Watershed Sub-Committee




        Regional Vice President:        Obiageli Katryn Ezekwesili
               Country Director:        Onno Ruhl
       Sector Manager / Director:       Karen Mcconnell Brooks
              Task Team Leader:         Africa Eshogba Olojoba

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                           NIGERIA
    SECOND NATIONAL FADAMA DEVELOPMENT CRITICAL ECOSYSTEM
                     MANAGEMENT PROJECT
                            P073686
                         CONTENTS

                                                                                        Page
ANNEX 1: REALLOCATION OF PROCEEDS ........................................................... 8




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                                ANNEX 1:
                         Reallocation of Proceeds

     NIGERIA -- SECOND NATIONAL FADAMA DEVELOPMENT CRITICAL
                  ECOSYSTEM MANAGEMENT PROJECT
                               P073686
                             {TF056616}
                                 Restructuring Paper

1.      Proceeds for Nigeria, Second National FADAMA DEVELOPMENT CRITICAL
ECOSYSTEM MANAGEMENT PROJECT, [Grant No TF056616], P073686 will be
reallocated as follow:

 Category of Expenditure               Allocation                  % of Financing
  Current       Revised          Current        Revised         Current      Revise
   Goods        Goods            314,000        314,000          100%         100%
Consultancy Consultancy         4,300,000      3,156,000         85%           85%
  Services     Services
Training and Training and       1,115,000      1,489,000         100%           100%
 Workshop      Workshop
Grant (Sub- Grant (Sub-         3,500,000      3,500,000         100%           100%
  projects)    projects)
Incremental Incremental          651,000       1,571,000         80%             80%
 Operating     Operating
    Cost         Cost
Unallocated Unallocated         150,000             0
    Total        Total         10,030,000      10,030,000
  Amount        Amount


2.       Overall progress toward the achievement of the project objective is satisfactory.
The last Implementation Status Report rated both PDO and IP satisfactory. Various
studies on Sustainable Land Management have been completed. There has also been an
upgrading of GIS Software and purchase of GIS equipment. The quality assurance group
review exercise of the Bank for the project was carried out during this reporting period.
The reviewers compared the progress of work done by the project since inception with
the expectation as contained in the grant agreement and all other project related
documents. At the close of review, the reviewers recommended the following; (a) The
need to empower the SWS members in the states to follow-up and provided add-on
activities on sub-projects implementation and (b) The need to increase disbursement, and
speedy completion of on-going ground water studies. The M&E manual is also being
implemented.
    Disbursement
3.      Disbursement is currently USD 7.2 million representing about 71.91 percent of
the total grant amount.

4.      The proposed reallocation is necessary based on a letter dated August 11, 2010, in
which the Federal Government of Nigeria requested a reallocation of the funds. The
relocation is to provide additional funds in the sum of USD of USD 374,000 and USD
920,000 to the Training/Workshop and Incremental Operating Cost Expenditure
categories respectively to execute the identified critical activities that would ensure
successful implementation and completion of the GEF programme. The low amounts in
these categories are hampering the implementation of time sensitive activities in these
categories.

5.       The Mid Term Review (MTR) and subsequent supervision missions
recommended that the State Watershed Committee (SWSs) be empowered to provide
advisory services to the communities. This can only be captured in operating costs as the
activities of the SWSs are funded under this category. Forest Management committees
have been formed in the six intervention sites to implement the Forest Management Plans
prepared by the project. The funding for the implementation of the forest management
plans are also captured under operating cost, hence the increase in the reallocation
compared to the appraisal estimate.




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