The World Bank Philippines Program for Climate Resilience: TA for the Risk Resiliency and Sustainability Program (P157325) REPORT NO.: RES34185 RESTRUCTURING PAPER ON A PROPOSED PROJECT RESTRUCTURING OF PHILIPPINES PROGRAM FOR CLIMATE RESILIENCE: TA FOR THE RISK RESILIENCY AND SUSTAINABILITY PROGRAM APPROVED ON MAY 8, 2017 TO REPUBLIC OF THE PHILIPPINES ENVIRONMENT & NATURAL RESOURCES EAST ASIA AND PACIFIC Regional Vice President: Victoria Kwakwa Country Director: Mara K. Warwick Senior Global Practice Director: Karin Erika Kemper Practice Manager/Manager: Christophe Crepin Task Team Leader: Stephen Ling, Maurice Andres Rawlins The World Bank Philippines Program for Climate Resilience: TA for the Risk Resiliency and Sustainability Program (P157325) ABBREVIATIONS AND ACRONYMS ASA Advisory Services and Analytics CD Country Director DBM Department of Budget and Management DENR Department of Environment and Natural Resources DOF Department of Finance IMP Integrated Management Plan PDO Project Development Objective PMO Project Management Office PPCR Pilot Program for Climate Resilience RETF Recipient Executed Trust Fund RRSP Risk Resiliency and Sustainability Program SARO Special Allotment Release Order WFP Work and Financial Plan The World Bank Philippines Program for Climate Resilience: TA for the Risk Resiliency and Sustainability Program (P157325) Note to Task Teams: The following sections are system generated and can only be edited online in the Portal. BASIC DATA Product Information Project ID Financing Instrument P157325 Investment Project Financing Original EA Category Current EA Category Not Required (C) Not Required (C) Approval Date Current Closing Date 08-May-2017 Organizations Borrower Responsible Agency Government of Philippines Department of Environment and Natural Resources Financing (in USD Million) FIN_SUMM_PUB_TBL SUMMARY Total Project Cost 0.15 Total Financing 0.00 Financing Gap 0.00 DETAILS -NewFin3 The World Bank Philippines Program for Climate Resilience: TA for the Risk Resiliency and Sustainability Program (P157325) Project Development Objective (PDO) Original PDO The Project Development Objective of this recipient-executed grant is to enable the Government of the Philippines to increase climate adaptation and resilience investments and their effectiveness in reducing climate risks impacting people and livelihoods in key vulnerable landscapes of the Philippines. The engagement builds on the work developed in the past three years by the Cabinet Clusteron Climate Change Adaptation and Mitigation, and on the World Bank Technical Assistance undertaken at the request of the Governmentunder the Climate Budgeting programmatic ASA (P148455), following the Climate Public Expenditure and Institutional Review (P130126). The project is designed to provide technical assistance, capacity strengthening and stakeholder consultations to allow the Philippine Government to develop a national investment program for climate adaptation and resilience. This will be underpinned by (i) providing an operational framework for a climate adaptation and resilience investment program to generate and leverage investments, (ii)building government capacity and convergence for responding to climate risks through risk-informed identification, planning, financing, execution, monitoring and evaluation of adaptation and resilience investments, and (iii) developing and applying climate analytics and tools to enhance understanding of climate risks and enable risk-informed decision-making. OPS_TABLE_PDO_CURRENTPDO Summary Status of Financing Net TF Approval Signing Effectiveness Closing Commitment Disbursed Undisbursed Policy Waiver(s) Does this restructuring trigger the need for any policy waiver(s)? No Note to Task Teams: End of system generated content, document is editable from here. The World Bank Philippines Program for Climate Resilience: TA for the Risk Resiliency and Sustainability Program (P157325) I. PROJECT STATUS AND RATIONALE FOR RESTRUCTURING 1. This level 2 restructuring proposal seeks a six-month extension of the closing date of the Pilot Program for Climate Resilience (PPCR) Grant, from December 31, 2018 to June 30, 2019. This will be the second and last closing date extension, for a cumulative period of 18 months from the original closing date. The previous, one-year closing date extension was approved in December 2017 because there had been no disbursement from the grant at that time. 2. Status of Disbursements and Implementation Progress. Implementation progress of the PPCR grant has been slow, and in a letter dated August 6, 2018, the recipient requested a six-month closing date extension to allow the agreed activities to be completed. This is a result of the delay in the issuance of the Special Allotment Release Order (SARO) by the Department of Budget and Management (DBM) for the first release of the grant to the Department of Environment and Natural Resources (DENR), the grant recipient. The SARO was not issued until June 27, 2018 and released USD 0.06 million of the USD 0.15 million RETF grant. The Department of Finance requested a second extension of the closing date to enable completion the grant-financed activities. 3. Rationale for the Restructuring. Implementation of the activities funded by the PPCR grant are of significant importance to the completion of the Risk Resilience Program (RRP), as they will facilitate the finalization of the investment programs under the RRP. The proposed closing date extension will enable the DENR to complete the subnational convergence planning and budgeting and provide support to the Cabinet Cluster in the preparation for the RRP FY20-22. With the work and financial plan finalized, activities are expected to accelerate and with that disbursements are expected to come in. As the activities accelerate, regular submission of Withdrawal Applications (WAs) for documentation and replenishment will be made for the project. 4. The project’s development objective remains doable and DENR have put measures in place to ensure the completion of project activities by the proposed closing date of June 30, 2019. The project team have worked with the Bank’s task team to revise the workplan of activities for completion of the project. Additionally, the project’s communication and engagement strategies have been revised and are clear on the workshops and meetings that will take place as part of the project, and the timeline for implementing these. The workplan of this grant, has also been aligned with the workplan of the related BETF grants (TF0A2885 and TF0A2546), and the team is confident that with this alignment and close monitoring of activities, that the project’s activities will be completed by June 30, 2019. The World Bank Philippines Program for Climate Resilience: TA for the Risk Resiliency and Sustainability Program (P157325) II. DESCRIPTION OF PROPOSED CHANGES This level-2 restructuring proposes the following changes: a. Six-month closing date extension from December 31, 2018 to June 30, 2019 to complete the activities that will be funded by the PPCR grant. b. Change in Disbursement Estimates. Forty percent or USD 0.06 Million has been disbursed to date. Additional disbursements are expected toward the end of FY19 and in early FY20. c. Change in Implementation Schedule. With the proposed grant closing date extension, the implementation schedule will mostly shift to FY19. Note to Task Teams: The following sections are system generated and can only be edited online in the Portal. III. SUMMARY OF CHANGES Changed Not Changed Loan Closing Date(s) ✔ Disbursement Estimates ✔ Implementation Schedule ✔ Implementing Agency ✔ Project's Development Objectives ✔ Results Framework ✔ Components and Cost ✔ Cancellations Proposed ✔ Additional Financing Proposed ✔ Reallocation between Disbursement Categories ✔ Disbursements Arrangements ✔ Change in Overall Risk Rating ✔ Safeguard Policies Triggered ✔ The World Bank Philippines Program for Climate Resilience: TA for the Risk Resiliency and Sustainability Program (P157325) EA category ✔ Legal Covenants ✔ Institutional Arrangements ✔ Financial Management ✔ Procurement ✔ Other Change(s) ✔ IV. DETAILED CHANGE(S) OPS_DETAILEDCHANGES_LOANCLOSING_TABLE LOAN CLOSING DATE(S) Original Revised Proposed Proposed Deadline TF Status Closing Closing(s) Closing for Withdrawal Applications OPS_DETAILEDCHANGES_DISBURSEMENT_TABLE DISBURSEMENT ESTIMATES Change in Disbursement Estimates Yes Year Current Proposed 2017 0.00 0.00 2018 50,000.00 60,000.00 2019 100,000.00 70,000.00 2020 0.00 20,000.00 2021 0.00 0.00 2022 0.00 0.00 2023 0.00 0.00 2024 0.00 0.00 Note to Task Teams: End of system generated content, document is editable from here.