The World Bank Development Response to Displacement Impacts Project (DRDIP) in the Horn of Africa (P161067) REPORT NO.: RES42332 RESTRUCTURING PAPER ON A PROPOSED PROJECT RESTRUCTURING OF DEVELOPMENT RESPONSE TO DISPLACEMENT IMPACTS PROJECT (DRDIP) IN THE HORN OF AFRICA APPROVED ON APRIL 26, 2017 TO REPUBLIC OF KENYA SOCIAL AFRICA EAST Regional Vice President: Hafez M. H. Ghanem Country Director: Deborah L. Wetzel Regional Director: Mark R. Lundell Practice Manager/Manager: Helene Carlsson Rex Task Team Leader(s): Matthew Stephens, Anna Lisa Schmidt, Samuel Lule Demsash The World Bank Development Response to Displacement Impacts Project (DRDIP) in the Horn of Africa (P161067) ABBREVIATIONS AND ACRONYMS ASALs Arid and Semi-Arid Lands AWPB Annual Work Plan and Budget CDD Community Driven Development CDP Community Development Plans CS Cabinet Secretary DRDIP Development Response to Displacement Impacts Project FP Facilitating Partner FY Fiscal Year GoK Government of Kenya IGAD Intergovernmental Authority on Development MoDA Ministry of Devolution and Development of the ASALs NPIU National Project Implementation Unit NPSC National Project Steering Committee NT National Treasury PS Principal Secretary WASH Water, Sanitation and Hygiene The World Bank Development Response to Displacement Impacts Project (DRDIP) in the Horn of Africa (P161067) BASIC DATA Product Information Project ID Financing Instrument P161067 Investment Project Financing Original EA Category Current EA Category Partial Assessment (B) Partial Assessment (B) Approval Date Current Closing Date 26-Apr-2017 29-Apr-2022 Organizations Borrower Responsible Agency State Department for the Development of ASALs, Republic of Kenya Ministry of Devolution and the Arid and Semi-Arid Lan Project Development Objective (PDO) Original PDO Project Development Objective (from Project Appraisal Document) The Project Development Objective is to improve access to basic social services, expand economic opportunities, and enhance environmental management for communities hosting refugees in the target areas in the Recipient's territory. OPS_TABLE_PDO_CURRENTPDO Summary Status of Financing (US$, Millions) Net Ln/Cr/Tf Approval Signing Effectiveness Closing Commitment Disbursed Undisbursed IDA-60210 26-Apr-2017 29-May-2017 28-Jun-2017 29-Apr-2022 100.00 10.84 93.66 IDA-D1840 26-Apr-2017 23-May-2017 20-Jun-2017 29-Apr-2022 3.00 .82 2.36 TF-A7762 06-Nov-2018 30-Jan-2019 30-Jan-2019 30-Jun-2021 8.18 7.99 .19 The World Bank Development Response to Displacement Impacts Project (DRDIP) in the Horn of Africa (P161067) Policy Waiver(s) Does this restructuring trigger the need for any policy waiver(s)? No I. PROJECT STATUS AND RATIONALE FOR RESTRUCTURING A. Project Status 1. The Kenya Development Response to Displacement Impacts Project (Kenya DRDIP) was approved by the Board on April 26, 2017 and became effective on June 28, 2017. The National Project Implementation Unit (NPIU) has been established, the County Implementation Arrangements have been set up and the project has been launched in all the three project counties. The contracting of the Facilitating Partners (FPs) has been completed in all five project sub-counties and the FPs have been introduced in pre-village entry stakeholder meetings. With the support of the FPs, communities in the five project sub-counties have finalized their five- year Community Development Plans (CDPs). In response to the COVID-19 pandemic, the project fast-tracked the planning and disbursement for a set of initial community-level investments in Water, Sanitation and Hygiene (WASH) sub-projects and livelihoods support towards the end of Fiscal Year (FY) 2019/20. The Annual Work Plan and Budget for FY 2020/21 was approved and foresees disbursements of US$35 million. Communities are now preparing sub-project level documentation under the AWPB 2020/21 to initiate sub- project implementation. The Project’s progress towards the achievement of the Project Development Objective (PDO) and overall Implementation Progress are currently rated as “Moderately Satisfactory”. B. Rationale for Restructuring 2. Executive Order No. 6 of 2019 issued on August 22, 2019 by H. E. President Uhuru Kenyatta reorganized Ministries, State Departments and State Agencies. In particular, in the effort of strengthening the efficacy of delivering the mandate of the Executive Office of the President to direct and coordinate the functions of Ministries and State Departments, some functions and ancillary institutions were transferred from the Executive Office to various Ministries and State Departments. As part of this process, the Kenya DRDIP was transferred to the State Department of Arid and Semi-Arid Lands (ASALs) in the Ministry of Devolution and Development of the ASALs (MoDA). The National Treasury (NT) subsequently indicated in a letter dated May 12, 2020 that the Project’s budget would be under the State Department of ASALs as of July 1, 2020 for Fiscal Year (FY) 2020/2021 and requested a respective restructuring of the Project to capture the change in Implementing Agency. Other project aspects, including the PDO and results framework, will remain the same. II. DESCRIPTION OF PROPOSED CHANGES A. Implementing Agency The World Bank Development Response to Displacement Impacts Project (DRDIP) in the Horn of Africa (P161067) 3. At the request of the Government of Kenya (GoK), the Implementing Agency for Kenya DRDIP changed from the Executive Office of the President, Department for Development of Arid and Semi-Arid Regions to the MoDA, State Department of ASALs, effective July 1, 2020. The Project will retain its operational structure, including personnel and assets, except for a change in Project Accountant at the National Project Implementation Unit (NPIU). The National Project Steering Committee (NPSC) will henceforth be chaired by the Cabinet Secretary (CS) MoDA. The National Project Technical Committee (NPTC) will be chaired by the PS ASAL. 4. The grant supporting the Intergovernmental Authority on Development (IGAD) under Component 5 of this Project is under a separate Financing Agreement, which is not affected by this restructuring. III. SUMMARY OF CHANGES Changed Not Changed Implementing Agency ✔ DDO Status ✔ Project's Development Objectives ✔ Results Framework ✔ Components and Cost ✔ Loan Closing Date(s) ✔ Cancellations Proposed ✔ Reallocation between Disbursement Categories ✔ Disbursements Arrangements ✔ Disbursement Estimates ✔ Overall Risk Rating ✔ Safeguard Policies Triggered ✔ EA category ✔ Legal Covenants ✔ Institutional Arrangements ✔ Financial Management ✔ Procurement ✔ Implementation Schedule ✔ The World Bank Development Response to Displacement Impacts Project (DRDIP) in the Horn of Africa (P161067) Other Change(s) ✔ Economic and Financial Analysis ✔ Technical Analysis ✔ Social Analysis ✔ Environmental Analysis ✔ IV. DETAILED CHANGE(S) OPS_DETAILEDCHANGES_IA_TABLE IMPLEMENTING AGENCY Implementing Agency Name Type Action Executive Office of the President, Marked for Deletion Implementing Department for Development of Arid and Agency Semi-Arid Regions State Department for the Development of New Implementing ASALs, Ministry of Devolution and the Arid Agency and Semi-Arid Lan .