The World Bank Yemen Emergency Crisis Response Project (P159053) REPORT NO.: RES37253 DOCUMENT OF THE WORLD BANK RESTRUCTURING PAPER ON A PROPOSED PROJECT RESTRUCTURING OF YEMEN EMERGENCY CRISIS RESPONSE PROJECT APPROVED ON JULY 19, 2016 TO UNDP,UNITED NATIONS CHILDREN'S FUND (UNICEF) SOCIAL PROTECTION & JOBS MIDDLE EAST AND NORTH AFRICA Regional Vice President: Ferid Belhaj Country Director: Marina Wes Senior Global Practice Director: Michal J. Rutkowski Practice Manager/Manager: Hana Brixi Task Team Leader: Qaiser M. Khan, Ana Paula Fialho Lopes The World Bank Yemen Emergency Crisis Response Project (P159053) I. BASIC DATA Product Information Project ID Financing Instrument P159053 Investment Project Financing Original EA Category Current EA Category Partial Assessment (B) Partial Assessment (B) Approval Date Current Closing Date 19-Jul-2016 30-Sep-2021 Organizations Borrower Responsible Agency UNDP,United Nations Children's Fund (UNICEF) UNICEF Project Development Objective (PDO) Original PDO The Project Development Objective is to provide short-term employment and access to selected basic services to the most vulnerable; and preserve existing implementation capacity of two service delivery programs. Current PDO The Project Development Objective is to provide short-term employment and access to selected basic services to the most vulnerable; preserve existing implementation capacity of service delivery programs; and provide emergency cash transfers to the poor and vulnerable in response to the food crisis. Summary Status of Financing Net Ln/Cr/Tf Approval Signing Effectiveness Closing Commitment Disbursed Undisbursed IDA-D4620 14-May-2019 21-May-2019 21-May-2019 30-Sep-2021 100.00 0 99.53 IDA-D4630 14-May-2019 23-May-2019 23-May-2019 30-Sep-2021 100.00 0 99.53 IDA-D4180 14-Dec-2018 20-Dec-2018 20-Dec-2018 30-Sep-2021 140.00 139.18 0 IDA-D1970 19-May-2017 30-May-2017 01-Jun-2017 30-Sep-2021 200.00 204.06 0 The World Bank Yemen Emergency Crisis Response Project (P159053) IDA-D1620 17-Jan-2017 25-Jan-2017 25-Jan-2017 30-Sep-2021 250.00 261.13 .25 IDA-D1320 19-Jul-2016 02-Aug-2016 02-Aug-2016 30-Sep-2021 50.00 49.26 0 TF-A9572 11-Apr-2019 11-Apr-2019 11-Apr-2019 30-Sep-2019 8.58 8.58 0 Policy Waiver(s) Does this restructuring trigger the need for any policy waiver(s)? No I. SUMMARY OF PROJECT STATUS AND PROPOSED CHANGES PROJECT STATUS. The project continues to make solid progress with key results indicators either met or exceeded. The last Implementation Status Report (ISR) rated Progress towards achievement of Project Development Objective Satisfactory (S) and Implementation Progress Moderately Satisfactory (MS). The MS rating was mainly attributed to challenges faced by the Labor Intensive Works component, implemented by UNDP on safeguards issues. Over the past eight to nine months however, the project has made significant progress in addressing all safeguards related issues, including enhancing Occupational Health and Safety standards and measures, as well preparation and disclosure of an Environmental and Social Management Framework (ESMF) which is applicable to the overall project. The MS rating will therefore be raised to Satisfactory in the upcoming ISR. KEY RESULTS. As of April 30, 2019, the number of direct beneficiaries of wage employment reached 344,550 workers against a target of 400,000; over 8.68 million work days have been created against a target of 9 million; and the number of people who were provided with access to key services has reached 3.38 million. Moreover, approximately 296,142 people (120,339 women and 175,803 children) have benefitted from the project’s nutrition services interventions; and the number of core staff positions for SFD has reached 191 positions (103%) and 100% for PWP. Approximately 2.41 million individuals (direct and indirect beneficiaries) have benefited from the income support provided through all components. Under the Emergency Cash Transfer component (Component 3), the project has successfully completed four rounds of payment cycles to an average 1.4 million beneficiary households, with a fifth payment cycle planned for mid June. DISBURSEMENT STATUS. Overall project disbursements under the project stand at US$662 million out of a total grant amount of US$848.58 (including the parent, AF, AF2, AF3, MDTF Grant, and the recently approved AF4). AF4 was approved by the Board of Directors on May 14, 2019, and became effective on May 21 and May 23, 2019. PROPOSED CHANGES AND RATIONALE. This restructuring proposes an amendment to the Financing Agreement for IDA-D4180 (AF3) implemented by UNICEF, to reduce UNICEF's indirect cost from 3% to 2%, as agreed during AF3 negotiations and documented in the Minutes of Negotiations held in December 2018. The adjustment would result in a reallocation of these funds to the Cash Transfer Component. The revision to the Withdrawal Schedule of Grant No. D418-RY and reallocation of proceeds is consistent with the agreement between IDA and the Implementing Agency - UNICEF - that in the event that additional financing is approved, UNICEF agrees to retroactively apply 2% in lieu of 3% of the total project cost as its indirect cost, if the total The World Bank Yemen Emergency Crisis Response Project (P159053) project cost is US$200 million or above, including the Grant of AF3 and any subsequent additional financing. Specifically, Category 2 (d) Recipient's Indirect Costs would be reduced by 981,373 SDR. This same amount would be added to Category 1 (a) (Cash Transfer under Part A) of the Project, bringing its total amount to 93,206,373 SDR. The reallocation is also in line with the request received from UNICEF dated May 28, 2019. II. DETAILED CHANGES REALLOCATION BETWEEN DISBURSEMENT CATEGORIES Current Current Actuals + Proposed Disbursement % Ln/Cr/TF Expenditure Allocation Committed Allocation (Type Total) Category Current Proposed IDA-D4180- Cash T under P 92,225,000.00 0.00 93,206,373.00 100.00 100.00 001 A.1 (C3.1) Currency: Payments Ag XDR 1,750,000.00 0.00 1,750,000.00 100.00 100.00 Fees P A.2 (C3.1) Consulting Services (P.B - 610,000.00 0.00 610,000.00 100.00 100.00 C3.2) 3rd Party Monitoring (P.B 715,000.00 0.00 715,000.00 100.00 100.00 - C3.2) Recipient Direct 2,150,000.00 0.00 2,150,000.00 100.00 100.00 Cost (P.B - C3.2) Recip Indi C 3% 2,950,000.00 0.00 1,968,627.00 100.00 100.00 Tot F(PB - C3.2) Total 100,400,000.00 0.00 100,400,000.00