The World Bank Tonga Cyclone Ian Reconstruction and Climate Resilience Project (P150113) REPORT NO.: RES32193 DOCUMENT OF THE WORLD BANK RESTRUCTURING PAPER ON A PROPOSED PROJECT RESTRUCTURING OF TONGA CYCLONE IAN RECONSTRUCTION AND CLIMATE RESILIENCE PROJECT APPROVED ON MAY 28, 2014 TO KINGDOM OF TONGA SOCIAL, URBAN, RURAL AND RESILIENCE GLOBAL PRACTICE EAST ASIA AND PACIFIC Regional Vice President: Victoria Kwakwa Country Director: Michel Kerf Senior Global Practice Director: Ede Jorge Ijjasz-Vasquez Practice Manager/Manager: Abhas Kumar Jha Task Team Leader: Keiko Saito, Michael Bonte-Grapentin The World Bank Tonga Cyclone Ian Reconstruction and Climate Resilience Project (P150113) I. BASIC DATA Product Information Project ID Financing Instrument P150113 Investment Project Financing Original EA Category Current EA Category Partial Assessment (B) Partial Assessment (B) Approval Date Current Closing Date 28-May-2014 30-Jun-2018 Organizations Borrower Responsible Agency Ministry of Finance and National Planning,Ministry of Kingdom of Tonga Infrastructure and Tourism Project Development Objective (PDO) Original PDO The project development objectives are to: (i) Restore housing, community facilities, and basic services to the affected populationof Ha’apai; and, (ii) Strengthen the country’s resilience to natural disasters. Current PDO The objectives of the Project are to: (a) strengthen the climate resilience of housing and selected community facilities for the affected population of Ha apai; and (b) strengthen the Recipient s preparedness to recover from future natural disasters. Summary Status of Financing Net Ln/Cr/Tf Approval Signing Effectiveness Closing Commitment Disbursed Undisbursed IDA-54770 28-May-2014 11-Jun-2014 01-Jul-2014 30-Jun-2018 6.00 5.41 0 IDA-H9620 28-May-2014 11-Jun-2014 01-Jul-2014 30-Jun-2018 6.00 5.60 .01 TF-17580 28-May-2014 08-May-2015 08-May-2015 30-Jun-2018 1.80 1.39 .41 The World Bank Tonga Cyclone Ian Reconstruction and Climate Resilience Project (P150113) Policy Waiver(s) Does this restructuring trigger the need for any policy waiver(s)? No II. SUMMARY OF PROJECT STATUS AND PROPOSED CHANGES Progress towards achievement of the PDO is currently moderately satisfactory, Implementation progress is also Moderately Satisfactory. Disbursement for IDA is 96% with all new houses built (400), and repairs done with the exception of 22 out of 627. All 18 Community halls have been repaired to a better standard and are now also used as evacuation centers. The GoT is financing the installation of water tanks and gutters to provide water supply facilities for the households that did not receive them during phase I due to budget constraints as a result of design creep. Technical Assistance activities had not started until the reconstruction and repairs of the houses were well underway in July 2016. For the Technical Assistance activities funded under EU-ACP (GFDRR), the national housing reconstruction policy is being finalized to be submitted for cabinet approval by the original end date. The remit of this consultancy was expanded to develop a Cyclone Gita specific housing reconstruction strategy which has been submitted to cabinet in April 2018. The second TA Safer Reconstruction Toolkit is currently undergoing consultation with the local construction industry and is due to complete by the original end date. The data preparedness work is also progressing well, with the firm due to finalize the work by the original end date following an implementation mission in May/June. The building code updating contracting suffered due to protracted negotiations with the preferred first candidate firm on liability issues, which eventually fell through just prior to Cyclone Gita in February 2018. The second firm has submitted the proposal, that requires 22 weeks from the start of the project, requiring an extension of the closing date for the project. In the context of ongoing post-Cyclone Gita reconstruction activities in Tonga, and the important to have a standard for residential buildings in place, an extension of the closing date for the RETF is requested to complete the code updating to ensure build back better principles are adopted by the repair and reconstruction work to take place in the next year. Project Management is Moderately Unsatisfactory due to the reduction of the capacity of the PMU. However as the IDA has disbursed 100%, and remaining tasks are mostly TA that are finishing in June, the current skeleton PMU is likely to provide enough support to the project. The Project is in compliance with all legal covenants, fiduciary and safeguard policies. The sanitation activities proposed under activity part 1(e) will be removed as these activities will no longer be undertaken. Furthermore, implementation of the water supply and gutters will now be implemented using GoT funding, following the Task Force Group (consisted of key stakeholder ministries for this project and led by Deputy Prime Minister) decision, documented in the minutes from meeting 47 dated July 10, 2017. III. 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 Tonga Cyclone Ian Reconstruction and Climate Resilience Project (P150113) IDA-54770 Effective 30-Jun-2018 30-Jun-2018 30-Oct-2018 IDA-H9620 Effective 30-Jun-2018 30-Jun-2018 30-Oct-2018 TF-17580 Effective 31-Dec-2016 30-Jun-2018 30-Nov-2018 30-Mar-2019