The World Bank Second Community Agriculture Resource Management and Competitiveness Project (P133705) REPORT NO.: RES43016 RESTRUCTURING PAPER ON A PROPOSED PROJECT RESTRUCTURING OF SECOND COMMUNITY AGRICULTURE RESOURCE MANAGEMENT AND COMPETITIVENESS PROJECT APPROVED ON JUNE 20, 2014 TO MINISTRY OF FINANCE AGRICULTURE AND FOOD EUROPE AND CENTRAL ASIA Regional Vice President: Anna M. Bjerde Country Director: Sebastian-A Molineus Regional Director: Steven N. Schonberger Practice Manager/Manager: Frauke Jungbluth Task Team Leader(s): David Tuchschneider, Arusyak Alaverdyan The World Bank Second Community Agriculture Resource Management and Competitiveness Project (P133705) ABBREVIATIONS AND ACRONYMS APID Agricultural Projects Implementation Department CARMAC 2 Second Community Agriculture Resource Management and Competitiveness Project GOA Government of Armenia M&E Monitoring and Evaluation MOE Ministry of Economy MOF Ministry of Finance PDO Project Development Objective The World Bank Second Community Agriculture Resource Management and Competitiveness Project (P133705) 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 P133705 Investment Project Financing Original EA Category Current EA Category Partial Assessment (B) Partial Assessment (B) Approval Date Current Closing Date 20-Jun-2014 30-Apr-2022 Organizations Borrower Responsible Agency Ministry of Economy,Agriculture Projects Ministry of Finance Implementation Department Project Development Objective (PDO) Original PDO The Project Development Objective (PDO) is to (i) improve productivity and sustainability of pasture and livestock systems in targeted communities and (ii) increase the marketed production from selected livestock and high value agri- food value chains. OPS_TABLE_PDO_CURRENTPDO Summary Status of Financing (US$, Millions) Net Ln/Cr/Tf Approval Signing Effectiveness Closing Commitment Disbursed Undisbursed IBRD-83740 20-Jun-2014 06-Aug-2014 23-Jan-2015 30-Apr-2022 23.00 11.91 11.09 IDA-55040 20-Jun-2014 06-Aug-2014 23-Jan-2015 30-Apr-2022 5.87 4.32 .95 IDA-55050 20-Jun-2014 06-Aug-2014 23-Jan-2015 30-Apr-2022 3.80 2.40 1.00 The World Bank Second Community Agriculture Resource Management and Competitiveness Project (P133705) Policy Waiver(s) Does this restructuring trigger the need for any policy waiver(s)? No I. PROJECT STATUS AND RATIONALE FOR RESTRUCTURING Despite three implementation agency changes, which caused three back-to-back restructurings over 2017-2019, the Project has made good progress in the implementation of all components. With its recent 23-month-long extension, the Project is on course to meet or exceed all original PDO targets. On July 24, 2020, the Bank received a letter from the Ministry of Finance requesting cancellation of US$0.9 million from the IDA portion of the Project financing. Similar requests were received for four other Bank-funded projects. The reason for cancellation is reallocation of funds to the Bank funded health project for construction of Martuni and Vayots Dzor medical centers, necessity of which was prioritized by the Government of Armenia in the light of COVID- 19. On August 12, 2020, the Bank received a follow up letter from the Ministry of Finance specifying that the previous request about cancellation of US$0.9 million from the IDA portion of the Project financing is related to the Credit # 5504-AM. This letter also provided detailed information about cancellation from each Project category. The Bank team analyzed the undisbursed under the Project funds and came to the conclusion that the cancellation will not affect remaining activities under the Project. During implementation some savings have been accumulated hence all envisaged activities can be completed in order to achieve the Project targets. The financial management arrangements under the Project are adequate and acceptable to the Bank, and there are no overdue audits under the Project. II. DESCRIPTION OF PROPOSED CHANGES It is proposed to cancel US$900,000 equivalent to XDR 640,327.5 from the undisbursed balance of the Credit No 5504- AM: XDR 395,296.47 from the Category 1 and XDR 245,031.03 from the Category 2. The World Bank Second Community Agriculture Resource Management and Competitiveness Project (P133705) III. SUMMARY OF CHANGES Changed Not Changed Cancellations Proposed ✔ Reallocation between Disbursement Categories ✔ Implementing Agency ✔ DDO Status ✔ Project's Development Objectives ✔ Results Framework ✔ Components and Cost ✔ Loan Closing Date(s) ✔ Disbursements Arrangements ✔ Disbursement Estimates ✔ Overall Risk Rating ✔ Safeguard Policies Triggered ✔ EA category ✔ Legal Covenants ✔ Institutional Arrangements ✔ Financial Management ✔ Procurement ✔ Implementation Schedule ✔ Other Change(s) ✔ Economic and Financial Analysis ✔ Technical Analysis ✔ Social Analysis ✔ Environmental Analysis ✔ IV. DETAILED CHANGE(S) OPS_DETAILEDCHANGES_CANCELLATIONS_TABLE The World Bank Second Community Agriculture Resource Management and Competitiveness Project (P133705) CANCELLATIONS Value Reason Current Cancellation New Ln/Cr/Tf Status Currency Date of for Amount Amount Amount Cancellation Cancellation IBRD- Disburs USD 23,000,000.00 0.00 23,000,000.00 83740-001 ing BORROWER' Disburs S REQUEST IDA-55040- ing&Re XDR 3,800,000.00 640,327.50 14-Aug-2020 3,159,672.50 FOR 001 paying COUNTRY REASONS Disburs IDA-55050- ing&Re XDR 2,460,000.00 0.00 2,460,000.00 001 paying OPS_DETAILEDCHANGES_REALLOCATION _TABLE REALLOCATION BETWEEN DISBURSEMENT CATEGORIES Financing % Current Allocation Actuals + Committed Proposed Allocation (Type Total) Current Proposed IDA-55040-001 | Currency: XDR iLap Category Sequence No: 1 Current Expenditure Category: GD,CW,Non-CS,CS,TRNG,IOC 1,324,000.00 928,703.53 928,703.53 75.00 75.00 iLap Category Sequence No: 2 Current Expenditure Category: Community Fund for Sub-Grants 2,476,000.00 2,169,148.43 2,230,968.97 100.00 100.00 iLap Category Sequence No: 3 Current Expenditure Category: UNALLOCATED 0.00 0.00 0.00 Total 3,800,000.00 3,097,851.96 3,159,672.50 .