The World Bank Community-based Sustainable Land Management Project (P124018) REPORT NO.: RES47475 DOCUMENT OF THE WORLD BANK RESTRUCTURING PAPER ON A PROPOSED PROJECT RESTRUCTURING OF COMMUNITY-BASED SUSTAINABLE LAND MANAGEMENT PROJECT APPROVED ON DECEMBER 19, 2013 TO REPUBLIC OF SENEGAL AGRICULTURE AND FOOD AFRICA WEST Regional Vice President: Ousmane Diagana Country Director: Nathan M. Belete Regional Director: Simeon Kacou Ehui Practice Manager/Manager: Chakib Jenane Task Team Leader(s): Nicolas Ahouissoussi The World Bank Community-based Sustainable Land Management Project (P124018) I. BASIC DATA Product Information Project ID Financing Instrument P124018 Investment Project Financing Original EA Category Current EA Category Full Assessment (A) Full Assessment (A) Approval Date Current Closing Date 19-Dec-2013 30-Jun-2021 Organizations Borrower Responsible Agency Republic of Senegal Ministry of Agriculture and Rural Equipment Project Development Objective (PDO) Original PDO The Project Development Objective is to develop inclusive commercial agriculture and sustainable land management in project areas Summary Status of Financing (US$, Millions) Net Ln/Cr/Tf Approval Signing Effectiveness Closing Commitment Disbursed Undisbursed IDA-53340 19-Dec-2013 28-Mar-2014 26-Jun-2014 30-Jun-2021 80.00 60.09 13.41 Policy Waiver(s) Does this restructuring trigger the need for any policy waiver(s)? No II. SUMMARY OF PROJECT STATUS AND PROPOSED CHANGES The World Bank Community-based Sustainable Land Management Project (P124018) A. Summary 1 . This Project Paper seeks the approval of a partial cancellation in an amount of $10 million equivalent of the proceeds of the Senegal Inclusive and Sustainable Agribusiness Development Project (P124018; Credit No. 53340-SN) and its blended Global Environment Facility (GEF) window (P130271; Grant TF16708), at the request of the Government of Senegal in a letter dated June 24, 2021. As the Project is closing on June 30, 2021, the purpose of this cancellation is to reallocate unused loan proceeds under the Project to the country IDA allocation for reprogramming towards other interventions in Senegal. 2. This partial cancellation does not require any changes to the Project development objectives, the safeguards category, the design or scope of the project, the result framework, or the financing mechanisms. B. Project status 3. Project description. The Project Development Objective (PDO) is to develop inclusive commercial agriculture and sustainable land management un the project areas. The total project cost is estimated at US$ 86 million, financed by a credit from International Development Association (IDA) of US$ 80 million and a grant from the Global Environment Facility (GEF) of US 6 million. 4. The project consists of the following components: • Component 1: Support to sector actors (GEF: US$2.5 million; IDA: US$8.5 million). This component supports rural communities in the project areas to ensure land users rights are allocated to private operators in an inclusive and sustainable way and to small-scale farmers for the establishment of producers’ associations and business partnerships with large investors (subcomponent1.1). It also provides vocational training and applied research to small-scale farmers and Small and Medium Enterprises (SMEs) on Sustainable Land and Water Management (SLWM) practices and support to private agribusiness investors (subcomponent 1.2). The component also supports the implementation of the land management process (subcomponent 1.3). • Component 2: Development of irrigation infrastructure and sustainable natural resources management (GEF: US$ 3 million; IDA: US$ 65.5 million). This component finances public irrigation infrastructure (design, construction and equipment of critical primary and secondary canals) in the Ngalam Valley and around Lac de Guiers (subcomponent 2.1). It provides matching grants to small scale farmers and SMEs for tertiary irrigation infrastructure, business development services and training (subcomponent 2.2). The component also supports the implementation of an inclusive landscape management approach supportive of sustainable land practices on agricultural and non- agricultural land in the project intervention areas (subcomponent 2.3). • Component 3: Project coordination, management, communication, monitoring and evaluation (GEF: US$ 0.5 million; IDA: US$ 6 million). This component supports the operation of the PCU and capacity building for project staff in the different implementing agencies (subcomponent 3.1). It also supports the coordination of monitoring and evaluation activities performed by the technical implementing agencies (subcomponent 3.2). 5. Implementation status. Significant results have been achieved. The three components are rated moderately satisfactory, and both progress towards achieving the PDO and overall Implementation Progress (IP) are rated The World Bank Community-based Sustainable Land Management Project (P124018) moderately satisfactory. The financial management and procurement have been respectively rated satisfactory.. There is no outstanding audit. 6. Overall, the Project positively impacted more than 20,000 direct beneficiaries against an objective of 7,000 expected at the end of the Project. This Project represents a major innovation which constitutes the first experience of rural cadaster in Senegal, serving as a model for a new project of national scope - Cadaster and Land Tenure Improvement Project (PROCASEF). 7. The works on the primary irrigation infrastructures have been fully completed, but the secondary and tertiary works are still ongoing and will not be completed before the Project closes on June 30, 2021. The Government has firmly committed to ensure the continuation and completion under its own financing. 8. In addition to the three (3) private investors selected during a first call for proposals (DAP1) with expected total investment of about 6 billion F CFA, the second DAP2 has ended up by selecting eight (8) investors with an expected investment financing of about 13 billion F CFA. Overall, both DAP would create about 5,400 jobs and cover about 5800 ha for projected of horticulture production of about 162,000 tons. 9. The land regularization operations have made it possible to make available to the communities more than 15,000 titles of assignment with Cadastral Identification Number (NICAD) processed by DGID and land tenure security of 77,530 ha. Along with this land tenure security approach, other actions targeting seven (7) classified forests and two (2) nature reserves have made it possible to limit and map about 10,200 ha, and thus to clarify their limits for better management. 10. As the Project is closing on June 30, 2021, some land activities undertaken would remain unfinished. These are mainly the Land Information System (SIF), continuing training and skills transfer, finalization of the issuance of titles of assignment. Arrangements are being made to get these activities undertaken by PROCASEF. C. Rationale for restructuring 11. The objective of the restructuring is to partially cancel the amount of $10 million equivalent that may not be used before the closing of the Project due to the initial delay in starting the secondary and tertiary irrigation works; these works cannot be completed by June 30, 2021. This delay in completing the irrigation works has been compounded by the Covid-19 pandemic restrictions, especially as most materials such large diameter pipes and electro mechanic parts are imported from abroad. The Project closing date has been extended twice for a total of 18 months. The Government has firmly committed to continue and complete these works and any outstanding ancillary activities on its own resources, and therefore this partial cancellation might not affect a good completion of the Project and full achievement of its objectives. The cancelled amount would be used for reprogramming for other interventions. The proposed reductions come respectively from $8 310 643,59 for Category 1 and $1 689 356, 41 for Category 2. III. DETAILED CHANGES The World Bank Community-based Sustainable Land Management Project (P124018) REALLOCATION BETWEEN DISBURSEMENT CATEGORIES Current Current Actuals + Proposed Disbursement % Ln/Cr/TF Expenditure Allocation Committed Allocation (Type Total) Category Current Proposed IDA-53340- GD,WK,CS,AUD, 001 NCS,TR & OC 47,500,000.00 37,887,840.55 41,683,765.00 92.70 92.70 Currency: xcptPt B2 XDR Matching Grants 4,316,903.00 2,983,216.79 3,134,601.00 100.00 100 Pt B2 PPF 283,097.00 283,096.19 283,097.00 REFINANCING Cancelled 0.00 0.00 6,998,537.00 amount Total 52,100,000.00 41,154,153.53 52,100,000.00