Document of The World Bank FOR OFFICIAL USE ONLY Report No: 77194-LR RESTRUCTURING PAPER ON A PROPOSED PROJECT RESTRUCTURING OF LR-AGRICULTURE & INFRASTRUCTURE DEVELOPMENT PROJECT GRANTS H327-LBR, H504-LBR AND TF092332 BOARD APPROVAL DATES JULY 31, 2007 and JUNE 30, 2009 TO THE REPUBLIC OF LIBERIA October 21, 2013 Transport Sector Country Department AFCW1 Africa 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 AA Administration Agreement AIDP Agriculture and Infrastructure Development Project EC European Community FAO Food and Agriculture Organization FPCRTF Food Price Crisis Response Trust Fund IDA International Development Association INT Institutional Integrity IP Implementation Progress ISR Implementation Status and Results Report MoA Ministry of Agriculture MS Moderately Satisfactory OP Operational Policy PDO Project Development Objectives PMU Program Management Unit RVP Regional Vice President TF Trust Fund US$ United States Dollar WFP World Food Program Regional Vice President: Makhtar Diop Country Director: Yusupha B. Crookes Sector Director Jamal Saghir Sector Manager: Supee Teravaninthorn Task Team Leader: Kulwinder Singh Rao REPUBLIC OF LIBERIA LIBERIA AGRICULTURE AND INFRASTRUCTURE DEVELOPMENT PROJECT CONTENTS Page A. SUMMARY ........................................................................................................................................ 1 B. PROJECT STATUS .......................................................................................................................... 1 C. PROPOSED CHANGES .................................................................................................................. 2 ANNEX 1: RESULTS FRAMEWORK AND MONITORING........................................................... 6 DATASHEET Restructuring Status: Draft Restructuring Type: Level two Last modified on date : 09/03/2013 1. Basic Information Project ID & Name P104716: LR-Agric. & Infra. Dev. Proj. ERL (FY08) Country Liberia Task Team Leader Kulwinder Singh Rao Sector Manager/Director Supee Teravaninthorn Country Director Yusupha B. Crookes Original Board Approval Date 07/31/2007 Original Closing Date: 12/31/2011 Current Closing Date 10/31/2013 Proposed Closing Date [if applicable] 09/30/2014 EA Category B-Partial Assessment Revised EA Category B-Partial Assessment-Partial Assessment EA Completion Date 03/05/2007 Revised EA Completion Date 2. Revised Financing Plan (US$m) Source Original Revised BORR 0.00 0.00 ECEU 12.99 8.51 FPCRTF 3.00 3.00 IDA 53.00 53.00 Total 68.99 64.51 3. Borrower Organization Department Location The Republic of Liberia Liberia 4. Implementing Agency Organization Department Location Ministry of Public Works Liberia i 5. Disbursement Estimates (US$m) Actual amount disbursed as of 10/21/2013 60.74 Fiscal Year Annual Cumulative 2014 2.5 63.24 2015 0.5 63.74 Total 63.74 6. Policy Exceptions and Safeguard Policies Does the restructured project require any exceptions to Bank policies? N Does the restructured project trigger any new safeguard policies? If yes, please select from N the checklist below and update ISDS accordingly before submitting the package. 7a. Project Development Objectives/Outcomes Original/Current Project Development Objectives/Outcomes The Project’s objective is to support the Recipient’s efforts to: (i) rehabilitate its basic infrastructure and (ii) revive its agriculture activities. 7b. Revised Project Development Objectives/Outcomes [if applicable] ii REPUBLIC OF LIBERIA AGRICULTURE AND INFRASTRUCTURE DEVELOPMENT PROJECT RESTRUCTURING PAPER A. SUMMARY 1. This Restructuring Paper seeks your approval for: (i) changes to the results framework; and (ii) a closing date extension (Restructuring Level II, with approval authority delegated to the RVP) for the agriculture component of the original financing and additional financing (Grant Numbers IDA-H327, IDA-H504, respectively “Original Financing” and “Additional Financing”), and the additional resources funded by the Food Price Crisis Response Trust Fund (Grant Number TF092332, the “FPCRTF”) for the Liberia Agriculture and Infrastructure Development Project (P104716, “AIDP” or “Project”), by 11 months, from October 31, 2013, to September 30, 2014. This will be the second extension for the Original Financing, Additional Financing and the FPCRTF. The proposed restructuring is based on Government’s request dated May 30, 2013. B. PROJECT STATUS 2. The Original Financing was approved by the Executive Directors on July 31, 2007. The overall original allocation in 2007 was for US$37 million under an IDA pre- arrears grant, and included a co-financing under an Administration Agreement (AA) between the Bank and the European Community (“EC”) (TF070904). The Additional Financing was processed in November 2009 in an amount of US$16 million. Subsequently, the Closing Date of the Original Financing, the Additional Financing and the FPCRTF were extended once by 22 months, from December 31, 2011, to October 31, 2013. The AA governing EC co-financing (TF070904) was amended in April 2011 extending the AA closing date from June 30, 2011 to December 31, 2012. The EC Trust Fund is not being extended in this restructuring. AIDP Agriculture Sector Component (US$5.0 million), and Food Price Crisis Response Trust Fund (TF092332) (US$3.0 million) 3. Agriculture related activities of US$5.0 million of the Project, with US$3.0 million of the additional resources from the FPCRTF, were allocated for agriculture development activities as follows: (a) Policy Reform and Capacity Building: (i) to strengthen the Policy, Planning and Coordination Unit in the Ministry of Agriculture (MoA); (ii) to support the monitoring, evaluation and statistical capacity of the MoA; and (iii) to develop priority agriculture sector policies. Activities progress: to date approximately 99 percent of the US$1.1 million budget has been disbursed or committed on goods and services related to Policy Reform and Capacity Building, and 54 percent of the US$2.6 million allocated for the MoA Program Management Unit (PMU) strengthening have been disbursed or committed. 1 (b) Value Chain Development: to provide technical assistance to farmer based organizations to support agricultural production of tree crops and food crops along value and marketing chains. Activities progress: the implementation of Value Chain Development activities is proceeding under two contracts: (i) Strengthening Food Crop Value Chains in Lofa and Bong Counties, for an amount of US$1.0 million with the Food and Agriculture Organization (FAO); and (ii) Rice Food emergency Support in Lofa and Bong Counties for an amount of US$0.8 million with the Africa Rice Center. Due to delay in the procurement process, implementation started late, and only about 30 percent (US$298,000) and 36 percent (US$307,000) of the FAO and Africa Rice contracts amounts respectively have been disbursed to date. Due to the late start, the implementation of both contracts will not be completed by the current closing date of October 31, 2013, and will require a second dry season in 2014 for the contracts to achieve their intended objectives. (c) Productive Infrastructure and Seed Multiplication: the aims of these two sub- components are to support productive and marketing infrastructure including market places; (ii) local agriculture distribution hubs, storage facilities and post-harvest handling facilities; and (iii) rehabilitation and maintenance of seed multiplication facilities to supply quality seeds to farmers. Activities progress: activities under these two sub-components have been regrouped under one contract with the World Food Program (WFP) for an amount of US$2.5 million. Although implementation also started late, due to delays in the procurement process, it is proceeding well with about 60 percent (US$1.5 million) disbursed to date. However, similar to the Value Chain Development sub-component, implementation of activities under the WFP contract cannot be completed by the current closing date of October 31, 2013, and will require a second dry season in 2014 to achieve the contract intended objectives. 4. The Progress toward achievement of the PDO and the Overall Implementation Progress (IP) were both rated as Moderately Satisfactory (MS) in the last ISR #11 dated October 11, 2013. 5. There are inconsistencies in the financing plan and disbursement data reflected in the SAP system and the iLAP. These inconsistencies are being examined in detail with the support of OPCS and the Controller's CTRLD, Loan Department, to check if any systemic issues exist. In this document, the reflected data is consistent with the iLAP system. 6. The conditions for extension of Closing Dates under Paragraph 42 of BP 10.00 were fully met, namely that: (a) the project objectives continue to be achievable; (b) the performance of the Recipient and other project implementing agencies is satisfactory; (c) the Recipient has prepared a specific action plan acceptable to the Bank to complete the project. There are also no outstanding audits. 2 7. There is an open INT investigation which is in the early stages for this project. The team has confirmed that no procurement is planned or underway that uses debarred firms. 8. Overall to date, implementation of social and environmental safeguards has been satisfactory1. C. PROPOSED CHANGES 9. The proposed extension of Closing Date under the agriculture component of the project is necessary to allow sufficient time for the completion of all Project goals, without any change to the overall scope of the Project. The extension will allow sufficient time for the completion of the two Value Chain development contracts and the contract for the Productive Infrastructure and the Seed Multiplication activities, as well as for the provision of further support to the strengthening of the MoA’s PMU. Outcome indicators have been revised to better reflect interventions under the Project for the remainder of the implementation period (see attached revised Results Framework). 1 During the May 2013 in-country review of the agriculture component, a Bank mission raised concerns about the potential environmental implications of the development by the World Food Program (WFP) of 240 ha of new lowlands into small-scale irrigation schemes. After investigating this matter with the WFP and visiting all concerned sites, the Ministry of Agriculture confirmed to the Bank on August 2, 2013, that there are no environmental issues associated with the development of the small-scale irrigation schemes by the WFP. 3 Table 1: Revisions to the Results Framework PDO: Support Government’s efforts in reestablishing basic infrastructure and in reviving the agriculture activities PDO indicators Comments/ Current (PAD) Proposed change* Rationale for Change Production of rice and Revised – ‘Total rice Intermediate indicator moved to PDO cassava in project areas production in Bong and Lofa level. The indicator has been revised to counties’ better reflect interventions under the project as regards location. Yields of rice and cassava Revised – ‘Rice yield on The indicator has been revised since amongst beneficiary farmers beneficiary farms’ cassava is not a priority crop for the remainder of the project. Percentage increase in Dropped The indicator has been dropped since metric tons of cocoa interventions on tree crops will be done by the new launched tree crops project by the WB. Increased number of Dropped The indicator has been dropped markets where seed rice is because marketing of seed rice is too available complex for this kind of project and has been replaced by production of foundation seed. Port productivity increased Dropped Target has been achieved. Actual (moves per hour/crane) (2012) moves per hour/crane are 17. Increased access to water for Revised – ‘Daily production of Wording of indicator has been revised residents of Monrovia) treated water in Monrovia’ to improve clarity. Target is likely to be successfully achieved. Treated water supply in Monrovia has increased to 6 million gallon of water per day (March 2013). Increased access to an all Dropped Target has been achieved. 83 season road for targeted kilometers of Monrovia Buchanan rural population. corridor rehabilitated. No capacity within transport sector to measure access to all seasons roads reliably. Intermediate Results indicators External Port Management Dropped Target has been achieved. Team in place Draft National Transport Dropped Target has been achieved. National Policy and Strategy Paper Transport Policy was formulated in formulated and prepared for 2009. National Transport Plan was Government's review and prepared and finally adopted in May endorsement 2012. Two new agriculture sector Dropped The indicator has been dropped since policies complete with the project interventions have instead results framework submitted focused on developing a basic ability to to Minister of Agriculture monitor results and plan activities. Increased market throughput Dropped The indicator has been dropped in sample of markets in because of lack of clarity as regards project area throughput and marketing overall is not part of project interventions for the remainder of the project. 4 Bridges 1. Monrovia Cotton Continued Target has been achieved. Tree corridor rehabilitated 2. New Vai Town Continued Target has been achieved. Bridge built Revised- River crossing This indicator is revised since the 3. Minimum 30 minor improved by installing Bailey project intervention was limited to river crossing Bridges installation of 27 Bailey bridges improved. purchased under another program. At two locations, the span required installing two bridges, thus limiting number of river crossings to 25. Out of these, 16 are complete, 4 are nearing completion, and 5 are pending. Refurbishment of water Continued Though target has been achieved, the treatment plant in Monrovia works are still in progress. Production of rice and Revised – and moved to PDO Intermediate indicator moved to PDO cassava in project areas level indicator level. The indicator has been revised to better reflect interventions under the project as regards location. Production and sales of rice Revised – ‘Foundation seed The indicator has been revised to better seeds on beneficiary sites (including improved varieties reflect project interventions and to not and reintroduced old varieties) include marketing (see above under produced and distributed in PDO indicators). project areas’ New – ‘Small scale irrigation This new indicator is proposed to better schemes rehabilitated in project reflect interventions under the project areas’ aimed at supporting agricultural value chains through the improvement and rehabilitation of essential physical infrastructure New – ‘Rice land rehabilitated This new indicator is proposed to better in project areas’ reflect interventions under the project aimed at supporting agricultural value chains through the improvement and rehabilitation of essential physical infrastructure New – ‘Grain storages This new indicator is proposed to better constructed in project areas’ reflect interventions under the project aimed at ensuring a significant results in a short period through the construction and rehabilitation of marketing infrastructure New –‘ Grain storages This new indicator is proposed to better rehabilitated in project areas’ reflect interventions under the project aimed at ensuring a significant results in a short period through the construction and rehabilitation of marketing infrastructure 5 ANNEX 1 Revised Results Framework and Monitoring COUNTRY: LIBERIA Agriculture and Infrastructure Development Project Project Development Objective (PDO): Support Government’s efforts in reestablishing basic infrastructure and in reviving the agriculture activities. Progress to Description (indicator Core Unit of Baseline Target Values** Data Source/ Responsibility for PDO Level Results Indicators* date (2012/13) Frequency definition etc.) Measure (2007) Final Methodology Data Collection Indicator One: Total rice Annual LISGIS Agricultural LISGIS & Metric production in Bong and Lofa Not available 112,340 134,808 Crop Survey MoA/PMU ton counties Annual Africa Rice, WFP MoA/PMU Indicator Two: Rice yield on Metric Not available 1.2 1.44 and FAO Monitoring beneficiary farms ton of rice yields Indicator Three: Daily Annual LWSC Statistics IIU/LWSC/MPW Million production of treated water in 2 6 8 Gallons Monrovia INTERMEDIATE RESULTS Intermediate Result (Component A): Policy Reforms and Capacity Building Intermediate Result (Component B): Agriculture Infrastructure and Investments Intermediate Result indicator IIU/MPW One: Bridges 1. Monrovia Cotton Tree Kilometer 0 83 83 Annual IIU/Consultant corridor rehabilitated reports 2. New Vai Town Bridge Yes/No No Yes Yes built 3. River crossing improved Number 0 16 25 6 by installing Bailey Bridges. Intermediate Result indicator Annual IIU/LWSC Technical Percent Two: Refurbishment of water 10-15% 50% 50% Statistics age treatment plant in Monrovia Intermediate Result indicator Annual Africa Rice MoA/PMU Three: Foundation seed estimation of rice (including improved varieties and Metric yield 0 0 20 reintroduced old varieties) ton produced and distributed in project areas Intermediate Result indicator Annual Technical audit MoA/PMU Five: Small scale irrigation reports upon Number 0 0 6 schemes rehabilitated in project completion areas Intermediate Result indicator Six: Annual Technical audit MoA/PMU Rice land rehabilitated in project Hectare 0 0 300 reports upon areas completion Intermediate Result indicator Annual Technical audit MoA/PMU Seven: Grain storages constructed Number 0 0 3 reports upon in project areas completion Intermediate Result indicator Annual Technical audit MoA/PMU Eight: Grain storages rehabilitated Number 0 0 1 reports upon in project areas completion *Please indicate whether the indicator is a Core Sector Indicator (see further http://coreindicators) **Target values to be assessed September 30, 2014 7