The World Bank Climate Resilience Improvement Project (CRIP) (P146314) REPORT NO.: RES40275 DOCUMENT OF THE WORLD BANK RESTRUCTURING PAPER ON A PROPOSED PROJECT RESTRUCTURING OF CLIMATE RESILIENCE IMPROVEMENT PROJECT (CRIP) APPROVED ON APRIL 22, 2014 TO DEMOCRATIC SOCIALIST REPUBLIC OF SRI LANKA URBAN, RESILIENCE AND LAND SOUTH ASIA Regional Vice President: Hartwig Schafer Country Director: Idah Z. Pswarayi-Riddihough Regional Director: John A. Roome Practice Manager/Manager: Christoph Pusch Task Team Leader(s): Suranga Sooriya Kumara Kahandawa, Asmita Tiwari The World Bank Climate Resilience Improvement Project (CRIP) (P146314) I. BASIC DATA Product Information Project ID Financing Instrument P146314 Investment Project Financing Original EA Category Current EA Category Partial Assessment (B) Partial Assessment (B) Approval Date Current Closing Date 22-Apr-2014 30-Jun-2020 Organizations Borrower Responsible Agency Ministry of Mahaweli, Agriculture, Irrigation and Rural Democratic Socialist Republic of Sri Lanka Development Project Development Objective (PDO) Original PDO The Project Development Objective (PDO) is to reduce the vulnerability of exposed people and assets to climate risk and to improveGovernment’s capacity to respond effectively to disasters. Summary Status of Financing Net Ln/Cr/Tf Approval Signing Effectiveness Closing Commitment Disbursed Undisbursed IDA-57680 21-Mar-2016 05-Sep-2016 06-Oct-2016 30-Jun-2020 42.00 29.92 12.37 IDA-54170 22-Apr-2014 10-Jul-2014 05-Aug-2014 30-Jun-2020 110.00 83.23 17.06 Policy Waiver(s) Does this restructuring trigger the need for any policy waiver(s)? No I. SUMMARY OF PROJECT STATUS AND PROPOSED CHANGES The World Bank Climate Resilience Improvement Project (CRIP) (P146314) The Climate Resilience Improvement Project (CRIP) aims to reduce the vulnerability of people and assets exposed to climate risks. The Project has four components: 1) Development of Basin Investment Plans for flood and drought mitigation; 2) Strengthening Climate Resilience of Infrastructure; 3) Project Management; and 4) Contingent Emergency Response Component. CRIP has substantially achieved its development objectives. The overall implementation progress is currently rated moderately satisfactory mainly due to delays in the completion of some activities planned under Component 1 and Component 2. The total project disbursements as of February 29, 2020 is US$ 113.15 Million (79.36%). There are no outstanding financial reports or audit reports and the project’s social and environmental safeguards performance has been satisfactory. The Project has achieved significant results and some key achievements include: i) completion of flood and drought mitigation investment plans for six major river basins using modern water and geospatial analytical tools and techniques; ii) training more than 20 Government engineers on cutting edge hydrological and hydraulic modeling tools, GIS and flood and drought risk assessments; iii) completion of a comprehensive flood risk mitigation strategy for Kelani river basin, and investments have been identified and are being funded by the Climate Resilience MPA; iv) mitigating landslide risk in 18 schools in Kandy district making 29,000 school children safe from landslides risk; v) reconstruction of 12 bridges which were either impassable during floods or created floods due to inadequate opening to discharge flood waters when needed; vi) stabilizing more than 20 locations with unstable slopes on national highways which were being closed during rainy periods due to landslide risk; and vii) repairing flood damaged irrigation infrastructure in 13 of the poorest districts benefiting more than 200,000 farmer families. This note proposes a six months’ extension to the Project’s closing date from June 30, 2020 to December 31, 2020, in response to the Government’s request received on February 13, 2020. The original credit closing date was May 30, 2019. However, following the serious floods in May 2017; the project underwent a level 2 restructuring to trigger the Contingent Emergency Response Component (CERC) which necessitated an extension of the closing date by 13 months to June 30, 2020. The Government’s extension request is based on the following reasons: a) significant political changes in the country especially the political crisis in October 2019 and the subsequent presidential elections in November 2019; b) difficulty in sourcing construction materials; c) unexpected changes in the weather, particularly the high intensity rains and prolonged rainy spells; and d) unexpected disturbances caused by the Easter Sunday terrorist attacks, especially on the labor and material shortages. While the project has already completed nearly 90 percent of the originally planned activities, several ongoing activities cannot be completed by the current closing date of June 30, 2020; requiring a six months’ extension. The extension will allow full achievement of the project’s development objectives and maximize the development outcomes. The activities that need additional time to complete are summarized below: Component 1: Component 1 aims to complete ten river basin level investment plans and ten feasibility studies for flood and drought risk mitigation. This is to be accomplished in two phases. Under Phase I, six basin investment plans were to be prepared, including pre-feasibility level options for flood and drought risk mitigation, while training a team of 20 counterpart staff from Government to prepare basin investment plans under Phase II. Phase I was completed successfully. Under Phase II, basin investment plans for the remaining four basins are to be prepared together with 10 feasibility studies prioritized from the Phase I basins. The World Bank Climate Resilience Improvement Project (CRIP) (P146314) Phase II tasks are ongoing satisfactorily but are behind schedule. This delay is mainly due to the international consultancy firm’s decision to disengage from Phase II due to internal reasons of the firm. As a result, the Government had to go through the procurement process again to employ new consultants. While these activities are contracted and progressing satisfactorily, they will require an additional 3-4 months to complete. Component 2: Component 2 of the project aims to: a) strengthen flood risk mitigation in prioritized irrigation and flood control schemes damaged by flood events during the last two decades; b) ensure transport continuity in critical highway connections by stabilizing unstable road slo pes and upgrading vulnerable and inadequate bridges; and c) ensure school safety by mitigating landslide risk in selected schools in Central province. Nearly 90 percent of the originally planned activities have been satisfactorily completed and have generated significant results and benefits to communities. However, there are several contracts that are underway but will require additional time of up to six months for completion. These include: i) stabilization of potential rockfall locations in Kandy – Mahiyanganaya highway (1 contract); ii) construction of two bridges in Colombo – Avissawella road and on Warakapola – Ruwanwella road which were delayed due to delays in acquiring a few land plots (2 contracts); iii) upgrading of six vulnerable bridges utilizing additional funds resulting from exchange rate fluctuations (5 contracts); and iv) rehabilitation of irrigation infrastructure damaged by floods in 2017 and 2018 (12 contracts). Component 4: Contingent Emergency Response Component was triggered after the 2017 floods to support restoration of rural connectivity infrastructure damaged by floods in four districts, namely Kalutara, Galle, Hambantota and Ratnapura. These are small scale rehabilitation works and more than 80 percent of the works are completed. The ongoing contracts can be completed by the current project closing date. The PMU has submitted a revised implementation plan which has been reviewed and found acceptable to the task team. Given most of the contracts are now completed, the implementing agencies are now able to allocate sufficient staff inputs to manage the ongoing contracts and ensure satisfactory completion by the proposed closing date. Therefore, the team recommends extension of the project closing date by six months up to December 31, 2020. II. DETAILED CHANGES LOAN CLOSING DATE(S) Original Revised Proposed Proposed Deadline Ln/Cr/Tf Status Closing Closing(s) Closing for Withdrawal Applications The World Bank Climate Resilience Improvement Project (CRIP) (P146314) IDA-54170 Effective 30-May-2019 30-Jun-2020 31-Dec-2020 30-Apr-2021 IDA-57680 Effective 30-May-2019 30-Jun-2020 31-Dec-2020 30-Apr-2021