Document of The World Bank FOR OFFICIAL USE ONLY Report No: 74551-WS RESTRUCTURING PAPER ON A PROPOSED PROJECT RESTRUCTURING OF THE SAMOA: POST TSUNAMI RECONSTRUCTION PROJECT CREDIT [BOARD APPROVED NOVEMBER 2, 2010] TO THE INDEPENDENT STATE OF SAMOA February 19, 2013 Timor-Leste, Papua New Guinea & the Pacific Islands Sustainable Development Department East Asia and Pacific Region This document has a restricted distribution and may be used by recipients only in the performance of their official duties. Its contents may not otherwise be disclosed without World Bank authorization. ABBREVIATIONS AND ACRONYMS ECIR East Coast Inland Route EIA Environmental Impact Assessment GoS Government of Samoa LTA Land Transport Authority PDO Project Development Objective PMU Project Management Unit PPCR Pilot Program for Climate Resilience PTRP Post-Tsunami Reconstruction Project Regional Vice President: Axel van Trotsenburg Country Director: Franz Drees-Gross Sector Manager: Michel Kerf Task Team Leader: Jim Reichert 2 SAMOA: POST TSUNAMI RECONSTRUCTION PROJECT CONTENTS Page A. SUMMARY ........................................................................................................................................ 4 B. PROJECT STATUS .......................................................................................................................... 4 C. PROPOSED CHANGES .................................................................................................................. 5 D. APPRAISAL SUMMARY................................................................................................................ 7 ANNEX 1: RESULTS FRAMEWORK AND MONITORING ........................................................... 8 3 SAMOA: POST TSUNAMI RECONSTRUCTION PROJECT RESTRUCTING PAPER A. SUMMARY 1. This Restructuring Paper is in response to a request from the Government of Samoa (GoS) made through a letter dated October 2, 2012 from the Ministry of Finance. This paper seeks the approval of the Country Director to introduce the following changes to the Samoa Post- Tsunami Reconstruction Project (P120594) (Credit No. 4831-WS; PRIF Grant No. TF098846), and any necessary accompanying amendments to the project’s legal documents:  Update performance indicators;  Drop Component 2 activities, which are to be undertaken under Samoa’s second investment project under the Pilot Program for Climate Resilience (PPCR), Enhancing the Climate Resilience of Coastal Resources and Communities Project ;  Reallocate Credit proceeds from Component 2 and the unallocated category to other activities; and  Extend the closing date of the IDA Credit and PRIF Grant by 22 months. B. PROJECT STATUS 2. Background: The project development objective (PDO) of the Post-Tsunami Reconstruction Project (PTRP) is to assist the GoS in its efforts to support the relocation and rehabilitation of communities living in the island of Upolu affected by the tsunami of September 29, 2009 through the provision of improved infrastructure access to relocation sites, enhanced transport infrastructure, and assistance to local communities to address future natural disasters. 3. The project was approved by the Board on November 2, 2010 and became effective on April 27, 2011. Credit and Grant were provided to the GoS under the Financing Agreement (FA) and Grant Agreement (GA) dated December 14, 2010 and February 8, 2011, respectively. 4. Summary of Implementation Progress: The following provides an overview of progress in implementing each of the PTRP’s components.  Component 1: Upgrading of Existing Access Tracks and Seawalls. All activities planned under Component 1 are now fully completed (Phase 1 seawalls repair, upgrading access tracks along the East Coast of Upolu, Lepa-Lalomanu inland route, Salani bridge repairs).  Component 2: Community Coastal Infrastructure Management Plans. At the request of the Government, no actions have been taken to advance the activities associated with this Component. As part of this restructuring, such activities will be dropped under the present project as the Government has asked the Bank to include this activity as part of the Pilot Program for Climate Resilience (PPCR), Enhancing the Climate Resilience of Coastal Resources and Communities Project , which is currently under preparation. Community Infrastructure Management Plans will be updated country-wide, rather than for three or four communities, under the other 4 PPCR project and would therefore allow for a more comprehensive and cost-effective implementation of these activities.  Component 3: East Coast Inland Route (Samusu to Lalomanu). Progress on this component has been slow as the contracts to prepare detailed engineering designs for the East Coast Inland Route (ECIR) and the associated Environmental Impact Assessment (EIA) had been delayed. The design work could not begin until the EIA had been completed. However, the EIA has now been completed and a preferred consultant identified to design and supervise the ECIR. A contract for the design work is ready to be awarded, pending approval to extend the PTRP’s closing date. If extended, designs are expected to take approximately six months to complete, and the Project Management Unit (PMU) estimates the construction period to be another twelve months.  Component 4: Dual-Purpose Pedestrian Access Routes. It was agreed that the feasibility study for Component 4 would be included in the design and supervision consultancy for Component 3. As such, this component has also been subject to delay, but progress is expected to pick up, as soon as the aforementioned contract for Component 3 has been awarded.  Component 5: Project Management and Support. This component continues to progress satisfactorily. 5. Project Ratings: Both key project ratings, progress towards achieving the PDO and overall implementation progress, have been rated as satisfactory (PDO) or moderately satisfactory (implementation progress) for the past year. The current ratings for both indicators are moderately satisfactory, due entirely to the delays in implementing Components 3 and 4. The project team believes that the PDO remains relevant and that generally satisfactory progress towards the PDO will continue with the requested closing date extension. C. PROPOSED CHANGES 6. The modifications proposed under this restructuring will not change the PDO, and the PDO will still be achieved with the activities being carried out under the other project components. No new activities are being proposed. There is no escalation of the safeguard rating, and no additional safeguards triggered. As such, a Level 2 restructuring will be carried out. 7. Change 1: Update Performance Indicators. There are six proposed updates to the performance indicators: (i) revise PDO Results Indicator 1 from “restored road access to communities affected by the September 29, 2009 tsunami� to “restored seawalls and road access to communities affected by the September 29, 2009 tsunami;� (ii) remove the overlap between PDO Results Indicators 1 and 2 by revising Results Indicator 2 from “improved road and pedestrian access to relocation areas� to “improved pedestrian access to relocation areas;� (iii) replace PDO Results Indicator 3, “more resilient road network, that provides continued access to populated areas during and after natural disasters,� which is not possible to measure without the occurrence of natural disasters after project closing, and because there is no clear definition of what a more resilient road network would consist of, with the core indicator “non-rural roads rehabilitated;� (iv) drop the indicators associated with Component 2; (v) drop Intermediate Results Indicator 1 “coastal protection repaired prior to next cyclone season,� as it is redundant with the indicator “9 km of seawalls repaired;� and (vi) drop Intermediate Results Indicator 5 “accessibility indicators under normal conditions and under degraded network performance� as it is ambiguous and not clear what is to be measured (see Annex 1). 5 8. Change 2: Drop Component 2 Activities. At the request of the Government, the activities originally envisaged under Component 2 will be transferred to the second investment project under the Pilot Program for Climate Resilience, Enhancing the Climate Resilience of Coastal Resources and Communities Project, which will update Community Infrastructure Management Plans countrywide, rather than for three or four communities, and allow for more comprehensive and cost-effective coverage of these items. 9. Change 3: Reallocation of Credit Proceeds. With the transfer of Component 2 activities, about US$200,000 will be freed up from the IDA Credit (48310), and these funds will be reallocated to Component 4 to ensure there are sufficient funds for the dual-purpose pedestrian access routes. The funds available from the unallocated category will be allocated to Components 1 ($390,000) to retroactively cover works variations, and 5 ($110,000) to extend the PMU’s existing contract to manage day-to-day administration of the project during the extended period. 10. Project Costs and Financing Plan. The following tables show the current and revised Project Costs by component, and expenditure category of the IDA Credit in the FA. Project Costs (US$ mil.) 1 Component Current Proposed 1. Upgrade Existing Access Tracks & Seawalls 5.60 5.99 2. Community Coastal Infrastructure Management Plans 0.20 0.00 3. East Coast Inland Route 4.60 4.60 4. Dual-Purpose Pedestrian Access Routes 0.60 0.80 5. Project Management and Support 0.30 0.41 6. Unallocated 0.50 0.00 Totals: 11.80 11.80 Revised Expenditure Categories (US$ mil.) Category of Allocation % of Expenditure Financing Current Revised Current Revised Works 10,000,000 10,608,000 85 90 Goods 100,000 0 1 0 Services 1,200,000 1,192,000 10 10 Contingencies 500,000 0 4 0 Totals: 11,800,000 11,800,000 100 100 11. Change 4: Extension of Implementation Period. Due to delays in implementing Components 3 and 4, a 22-month extension of the closing date of the IDA Credit ( IDA 48310) 1 Note that the funding amounts in the Legal Agreements are stated in SDRs. 6 and PRIF Grant (TF 98846), or until February 28, 2015, will be needed to ensure sufficient time to complete all project activities and to achieve the PDO. Without Components 3 (ECIR) and 4 (pedestrian access routes), alternative access routes would not be available during extreme climatic or disaster-related events, which is essential to the overall success of this operation. 12. The following table identifies key milestones, and corresponding dates, that will need to be achieved in order to meet the proposed revised closing date. Milestone Date Due Project Restructuring Approved 04/01/2013 Contract for Designs Signed 05/15/2013 Designs Completed 12/31/2013 Contract for Works Awarded 01/31/2014 Works on Inland & Pedestrian Access Routes Commences 02/28/2014 Works on Inland & Pedestrian Access Routes Completed 02/28/2015 13. Note that the October 2, 2012 letter from the Government requested an extension of 22 months, or until February 28, 2015. However, before taking a decision on whether to restructure the project, the Bank asked the Government to submit a letter indicating the mechanisms that would be in place to quickly and efficiently address any potential land issues associated with construction of the ECIR. In its response, the Government offered to establish a committee to oversee and proactively address any land issues that might arise. 14. The PTRP’s Financing Agreement and Project Agreement, as well as the PRIF Trust Fund (TF098846), will be modified accordingly to reflect these changes. D. APPRAISAL SUMMARY 15. Safeguards. Since there is no change in the scope of activities to be funded under the restructured project, a change in the project’s safeguards category, which is Category B (Partial Assessment), is not required. The safeguards instruments that were developed during project preparation remain appropriate and will be used in the restructured project. 16. When the original project was prepared, an EIA was carried out for Component 3, the East Coast Inland Route. The EIA concluded that there would be no significant, large-scale, or irreversible negative impacts on the environment or communities along the route. 17. The recently completed Comprehensive Environment Impact Assessment, which included a social assessment, confirmed strong support among the project’s primary beneficiaries for the ECIR. The benefits of having the ECIR, which will provide alternate access in case the existing coastal road is affected by climate or disaster related events, are widely anticipated and community leaders have expressed willingness to support the project in many ways. Documentation of the consent of specific land owners of affected properties consistent with the project's Land Acquisition and Resettlement Framework will be part of project documentation. 18. None of the aforementioned changes will escalate the safeguards rating, or trigger additional safeguards. No changes to the procurement and financial management arrangements are envisaged. 7 ANNEX 1: Results Framework and Monitoring Project Development Objective (PDO): To assist the Government of Samoa in its efforts to support the relocation and rehabilitation of communities living in the Island of Upolu affected by the tsunami of September 29, 2009, through the provision of improved infrastructure access to relocation sites, enhanced transport infrastructure, and assistance to local communities to address future natural disasters. Revised Project Development Objective: n/a. D=Dropped Cumulative Target Values** C=Continue Responsibility Core PDO Level Results N= New Unit of Data Source/ Baseline Frequency for Data Indicators* R=Revised Measure YR 1 YR 2 YR 3 YR4 YR5 Methodology Collection Indicator One: Restored seawalls and road C % 0% 0% 50% 100% 100% 100% Semi-annually LTA LTA access to communities affected by the September 29, 2009 tsunami. Indicator Two: Improved pedestrian access to R % 0% 0% 0% 100% 100% 100% Semi-annually LTA LTA relocation areas. Indicator Three: Non-rural roads rehabilitated. X N km 0 7 14 23 23 28 Semi-annually LTA LTA Indicator Four: Improved planning through updated CIM Plans and D n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a improved base and hazard mapping. INTERMEDIATE RESULTS Intermediate Result (Component 1): Access restored and emergency response and clean-up activities carried out. Revised Intermediate Result (Component 1): n/a Intermediate Result Indicator 1: C 0% % 100% 100% 100% 100% 100% Annually LTA LTA Intermediate Result (Component 1): Coastal protection repaired prior to next cyclone season. Revised Intermediate Result (Component 1): n/a Intermediate Result Indicator 1: D n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a Intermediate Result (Component 1): 20 km of existing access roads upgraded and sealed. Revised Intermediate Result (Component 1): n/a Intermediate Result Indicator 1: C km 0 km 20 20 20 20 20 Annually LTA LTA Intermediate Result (Component 1): 10 km Lepa-Lalomanu link road upgraded and sealed. Revised Intermediate Result (Component 1): n/a Intermediate Result Indicator 1: C km 0 km 5 10 10 10 10 Semi-annually LTA LTA Intermediate Result (Component 1): 9 km of existing seawalls repaired. Revised Intermediate Result (Component 1): n/a Intermediate Result Indicator 1: C km 0 km 4.5 7 9 9 9 Semi-annually LTA LTA Intermediate Result (Component 1): Salani Bailey Bridge repaired. Revised Intermediate Result (Component 1): n/a Intermediate Result Indicator 1: C n/a % 0% 100% 100% 100% 100% Annually LTA LTA Intermediate Result (Component 1): Percentage of relocated houses with improved transport access to social/educational/commercial opportunities. Revised Intermediate Result (Component 1): n/a 9 Intermediate Result Indicator 1: C n/a % 50% 80% 100% 100% 100% Annually Beneficiary survey LTA Intermediate Result (Component 3): Feasible route identified and road designed. Revised Intermediate Result (Component 3): n/a Intermediate Result Indicator 3: Route Design C n/a No design identified completed n/a n/a Annually LTA LTA Intermediate Result (Component 3): 5 km Samusu-Lalomanu link road constructed. Revised Intermediate Result (Component 3): n/a Intermediate Result Indicator 3: C km 0 km 0 0 0 0 5 Semi-annually LTA LTA Intermediate Result (Component 4): Feasible pedestrian links identified and designed. Revised Intermediate Result (Component 4): n/a Intermediate Result Indicator 4: Route Design n/a n/a C n/a No design identified completed Semi-annually LTA LTA Intermediate Result (Component 4): Feasible access pathways constructed. Revised Intermediate Result (Component 4): n/a Intermediate Result Indicator 4: Routes C n/a No routes constructed Semi-annually LTA LTA Intermediate Result (Component 5): Quarterly progress reports against work plans and budgets. Revised Intermediate Result (Component 5): n/a Intermediate Result Indicator 5: C n/a % 100% 100% 100% 100% 100% Quarterly LTA LTA Intermediate Result (Component 5): Before and after study of relocated communities. Revised Intermediate Result (Component 5): n/a Intermediate Result Indicator 5: C n/a % 50% 50% 100% 100% 100% Annually Beneficiary survey LTA Intermediate Result (Component 5): Accessibility indicators under normal conditions and under degraded network performance. Revised Intermediate Result (Component 5): n/a Intermediate Result Indicator 5: D n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a 10 11