The World Bank Second Community Agriculture Resource Management and Competitiveness Project (P133705) REPORT NO.: RES48290 RESTRUCTURING PAPER ON A PROPOSED PROJECT RESTRUCTURING OF SECOND COMMUNITY AGRICULTURE RESOURCE MANAGEMENT AND COMPETITIVENESS PROJECT APPROVED ON JUNE 20, 2014 TO REPUBLIC OF ARMENIA AGRICULTURE AND FOOD EUROPE AND CENTRAL ASIA Regional Vice President: Anna M. Bjerde Country Director: Sebastian-A Molineus Regional Director: Steven N. Schonberger Practice Manager/Manager: Frauke Jungbluth Task Team Leader(s): Arusyak Alaverdyan, Pierre Jean Gerber The World Bank Second Community Agriculture Resource Management and Competitiveness Project (P133705) ABBREVIATIONS AND ACRONYMS APID Agricultural Projects Implementation Department CARMAC 2 Second Community Agriculture Resource Management and Competitiveness Project GOA Government of Armenia M&E Monitoring and Evaluation MOE Ministry of Economy MOF Ministry of Finance PDO Project Development Objective The World Bank Second Community Agriculture Resource Management and Competitiveness Project (P133705) Note to Task Teams: The following sections are system generated and can only be edited online in the Portal. BASIC DATA Product Information Project ID Financing Instrument P133705 Investment Project Financing Original EA Category Current EA Category Partial Assessment (B) Partial Assessment (B) Approval Date Current Closing Date 20-Jun-2014 30-Apr-2022 Organizations Borrower Responsible Agency Ministry of Economy,Agriculture Projects Ministry of Finance Implementation Department Project Development Objective (PDO) Original PDO The Project Development Objective (PDO) is to (i) improve productivity and sustainability of pasture and livestock systems in targeted communities and (ii) increase the marketed production from selected livestock and high value agri- food value chains. OPS_TABLE_PDO_CURRENTPDO Summary Status of Financing (US$, Millions) Net Ln/Cr/Tf Approval Signing Effectiveness Closing Commitment Disbursed Undisbursed IBRD-83740 20-Jun-2014 06-Aug-2014 23-Jan-2015 30-Apr-2022 23.00 15.71 7.29 IDA-55040 20-Jun-2014 06-Aug-2014 23-Jan-2015 30-Apr-2022 4.97 4.32 .09 IDA-55050 20-Jun-2014 06-Aug-2014 23-Jan-2015 30-Apr-2022 3.80 2.40 1.00 The World Bank Second Community Agriculture Resource Management and Competitiveness Project (P133705) Policy Waiver(s) Does this restructuring trigger the need for any policy waiver(s)? No Note to Task Teams: End of system generated content, document is editable from here. I. PROJECT STATUS AND RATIONALE FOR RESTRUCTURING The Project is closing in April 2022 and is on track to meet or exceed all original PDO targets. In the course of implementation, the Project generated savings in an amount of US$4.36 million, for which the Government did not submit any proposal that would be in line with the Project objectives and fit the design. On August 12, 2021, the Bank received a letter from the Ministry of Finance requesting cancellation of US$2.37 million from the IBRD portion and US$1.13 equivalent from the IDA portion of the Project financing. Similar requests were received for other Bank-funded projects where partial cancellations are possible. This approach is aligned with the Government prudent debt management policy with zero sum game on new borrowings. On September 9, 2021, the Bank received a follow up letter from the Ministry of Finance detailing cancellations from each Project category of each loan/credit. The Bank team have scrutinized the request and concluded that the cancellation will not affect remaining activities under the Project considering the accumulated savings. Hence all envisaged activities can be completed on time to achieve the Project targets. The financial management arrangements under the Project are adequate and acceptable to the Bank, and there are no overdue audits under the Project. II. DESCRIPTION OF PROPOSED CHANGES It is proposed to cancel USD 3.5 million from the Project fuds, in particular: 1. from the undisbursed balance of the Credit No 5504: - an amount equal to SDR 60,997.68 from Category (2) 2. from the undisbursed balance of the Credit No 5505: - an amount equal to SDR 542,682.87 from Category (1); and The World Bank Second Community Agriculture Resource Management and Competitiveness Project (P133705) - an amount equal to SDR 189,128.2 from Category (2). 3. from the undisbursed balance of the Loan No 8374: - an amount equal to USD 1,270,000.0 from Category (1); and - an amount equal to USD 1,100,000.0 from Category (2). III. SUMMARY OF CHANGES Changed Not Changed Cancellations Proposed ✔ Reallocation between Disbursement Categories ✔ Implementing Agency ✔ DDO Status ✔ Project's Development Objectives ✔ Results Framework ✔ Components and Cost ✔ Loan Closing Date(s) ✔ Disbursements Arrangements ✔ Disbursement Estimates ✔ Overall Risk Rating ✔ Safeguard Policies Triggered ✔ EA category ✔ Legal Covenants ✔ Institutional Arrangements ✔ Financial Management ✔ Procurement ✔ Implementation Schedule ✔ Other Change(s) ✔ Economic and Financial Analysis ✔ Technical Analysis ✔ The World Bank Second Community Agriculture Resource Management and Competitiveness Project (P133705) Social Analysis ✔ Environmental Analysis ✔ IV. DETAILED CHANGE(S) 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 IBRD- Disburs USD 23,000,000.00 2,370,000.00 12-Aug-2021 20,630,000.00 FOR 83740-001 ing COUNTRY REASONS BORROWER' Disburs S REQUEST IDA-55040- ing&Re XDR 3,159,672.50 60,997.68 12-Aug-2021 3,098,674.82 FOR 001 paying COUNTRY REASONS BORROWER' Disburs S REQUEST IDA-55050- ing&Re XDR 2,460,000.00 731,811.07 12-Aug-2021 1,728,188.93 FOR 001 paying COUNTRY REASONS OPS_DETAILEDCHANGES_REALLOCATION _TABLE REALLOCATION BETWEEN DISBURSEMENT CATEGORIES Financing % Current Allocation Actuals + Committed Proposed Allocation (Type Total) Current Proposed IBRD-83740-001 | Currency: USD iLap Category Sequence No: 1 Current Expenditure Category: GD,CW,Non-CS,CS,TRNG,IOC 4,800,000.00 1,742,611.18 3,530,000.00 75.00 75.00 iLap Category Sequence No: 2 Current Expenditure Category: Community Fund for Sub-Grants The World Bank Second Community Agriculture Resource Management and Competitiveness Project (P133705) 18,142,500.00 12,409,944.76 17,042,500.00 100.00 100.00 Total 22,942,500.00 14,152,555.94 20,572,500.00 IDA-55040-001 | Currency: XDR iLap Category Sequence No: 1 Current Expenditure Category: GD,CW,Non-CS,CS,TRNG,IOC 928,703.53 928,703.53 928,703.53 75.00 75.00 iLap Category Sequence No: 2 Current Expenditure Category: Community Fund for Sub-Grants 2,230,968.97 2,169,148.43 2,169,971.29 100.00 100.00 iLap Category Sequence No: 3 Current Expenditure Category: UNALLOCATED 0.00 0.00 0.00 Total 3,159,672.50 3,097,851.96 3,098,674.82 IDA-55050-001 | Currency: XDR iLap Category Sequence No: 1 Current Expenditure Category: GD,CW,Non-CS,CS,TRNG,IOC 990,000.00 447,317.13 447,317.13 75.00 75.00 iLap Category Sequence No: 2 Current Expenditure Category: Community Fund for Sub-Grants 1,470,000.00 1,279,195.31 1,280,871.80 100.00 100.00 iLap Category Sequence No: 3 Current Expenditure Category: UNALLOCATED 0.00 0.00 0.00 Total 2,460,000.00 1,726,512.44 1,728,188.93 . The World Bank Second Community Agriculture Resource Management and Competitiveness Project (P133705)