The World Bank Tunisia: Ecotourism and Conservation of Desert Biodiversity (P120561) REPORT NO.: RES32267 DOCUMENT OF THE WORLD BANK RESTRUCTURING PAPER ON A PROPOSED PROJECT RESTRUCTURING OF TUNISIA: ECOTOURISM AND CONSERVATION OF DESERT BIODIVERSITY APPROVED ON JANUARY 22, 2013 TO MINISTRY OF LOCAL AFFAIRS AND ENVIRONMENT ENVIRONMENT & NATURAL RESOURCES MIDDLE EAST AND NORTH AFRICA Regional Vice President: Hafez M. H. Ghanem Country Director: Marie Francoise Marie-Nelly Senior Global Practice Director: Karin Erika Kemper Practice Manager/Manager: Lia Carol Sieghart Task Team Leader: Taoufiq Bennouna The World Bank Tunisia: Ecotourism and Conservation of Desert Biodiversity (P120561) I. BASIC DATA Product Information Project ID Financing Instrument P120561 Investment Project Financing Original EA Category Current EA Category Partial Assessment (B) Partial Assessment (B) Approval Date Current Closing Date 22-Jan-2013 31-Jul-2018 Organizations Borrower Responsible Agency Ministry of Local affairs and Environment Minitry of Local Affairs and Environment Project Development Objective (PDO) Original PDO The Project Development Objective is to contribute to the conservation of desert biodiversity in the three targeted National Parks. Summary Status of Financing Net Ln/Cr/Tf Approval Signing Effectiveness Closing Commitment Disbursed Undisbursed TF-13636 05-Mar-2013 05-Mar-2013 22-May-2013 31-Jul-2018 4.27 3.24 1.03 Policy Waiver(s) Does this restructuring trigger the need for any policy waiver(s)? No II. SUMMARY OF PROJECT STATUS AND PROPOSED CHANGES The World Bank Tunisia: Ecotourism and Conservation of Desert Biodiversity (P120561) The project was approved on January 22nd, 2013, became effective on May 22nd, 2014 and has disbursed to date US$3.24 million (75.77%) of the total grant amount. The project was restructured on May 23rd, 2017 to make use of the financial surplus generated by the Tunisian Dinar devaluation by adding some new activities, and transferring funds between project categories to be able to finance additional activities. The Project Development Objective (PDO) is to contribute to the conservation of desert biodiversity in the three targeted National Parks. The project has three components: Component 1: Promoting Enabling Conditions for Protected Areas Management, Sustainable Land Management Scale up and Ecotourism Development. Support through this component have been organized according to the following three sub-components: (i) Reinforcing the institutional legal and strategic framework for the management of the Recipient's national park; (ii) Building and mainstreaming national and local capacities in sustainable land management and biodiversity conservation using an integrated natural resource management approach; and (iii) Establishing and running the monitoring and evaluation system for the Project through the provision of goods, consultants' services and training. Main activities under this component have been achieved and almost finalized: (i) The revision of the national legal and institutional framework for the management of the National Parks is completed, and the new legislation finalized and submitted to Ministerial cabinet; (ii) the decree on the classification of dwellings with the new standards promoting ecotourism and "green" tourist accommodation was promulgated and disseminated by the PIU through several workshops; and (iii) the marketing strategy to promote ecotourism has been finalized and is under implementation; (iv) activities related to building and mainstreaming national and local capacities in sustainable land management and biodiversity conservation are well advanced and almost completed; and (v) the Monitoring and Evaluation system is operational. Component 2: Supporting the Implementation of Integrated Natural Resource Management in the National Parks and their Adjacent Area. Support through this component have been organized according to the following three subcomponents: (i) Implementing priority investments identified in the Management Plans of the National Parks, through the provision of goods and civil works; (ii) Implementing: (a) a program of Community-based sub-projects aiming at improving the management of the National Parks and adjacent areas; and (b) a program of microenterprises-based sub-projects aiming at improving the ecotourism, all through the provision of civil works, goods and consultants' services; and (iii) Implementing the rehabilitation of the existing eco-museum and the establishment of an eco-shop in existing structures in each of the Natural Parks, through the provision of goods, consultants' services and civil works. Activities of this Component also recorded excellent achievements: (i) Priority investments and improvement of the selected national parks infrastructure are almost completed; (ii) the programs of community-based sub-projects and the microenterprises-based sub-project is a real success: a total of 230 microprojects have been implemented, of which 201 individual micro-projects and 29 community micro-projects. These micro-projects had an undeniable socioeconomic impact in terms of: (i) generation of income for the beneficiary families; and (ii) creation of 472 permanent jobs, mainly to the benefit of women and youths, and 278 additional jobs for their families who became employees of these projects. These sub-projects created a real dynamic around the national parks reducing conflicts and ensuring the protection of the parks and the conservation of their biodiversity. Following the May 2017 restructuring, some new civil works related to rehabilitation of the infrastructure of the three parks, solar electrification of Dghoumes, and acquisition of new equipment faced procurement delays which will not allow their achievement by the current project closing date of 31 July 2018. Component 3- Project Management. Activities included: (i) Supporting M&E's pertinent structures and units in carrying out the Project management and implementation through the provision of goods, consultants' services and Training; and (ii) carrying out the audits for the Project and financing the Incremental Operating Costs for the Project. The PIU has been reinforced with qualified staff (administrative assistant; environmental and social expert; monitoring and evaluation expert; and senior ecotourism expert), this was key to achieve current project results under Components 1 and 2. The World Bank Tunisia: Ecotourism and Conservation of Desert Biodiversity (P120561) The progress towards achievement of the PDO has so far been moderately satisfactory, and the progress towards overall implementation progress has been satisfactory. The project has disbursed 75.77% of its original budget of US$4.27 million. As on May 9, 2018, the project has achieved all its original activities, but encountered unexpected procurement delays to achieve the new added activities following last restructuring. Proposed Changes The client has requested a formal extension of the closing date of the Project from July 31, 2018 to January 31, 2019 as per the letter sent to the World Bank on April 10, 2018. An action plan was agreed with the client covering the requested extension period up to January 31, 2019. An extension of the closing date by 6 months would be sufficient to successfully conclude all the remaining activities and fully achieve the PDO. No new activity will be added, and all undisbursed grant amounts, if any, will be returned to the GEF after the new closing date. The project is in compliance with safeguards and all financial statements and audit reports have been submitted and there is no outstanding audit report. III. DETAILED CHANGES LOAN CLOSING DATE(S) Original Revised Proposed Proposed Deadline Ln/Cr/Tf Status Closing Closing(s) Closing for Withdrawal Applications TF-13636 Effective 31-Jul-2018 31-Jan-2019 31-May-2019