Document of The World Bank FOR OFFICIAL USE ONLY Report No: RES24137 RESTRUCTURING PAPER ON A PROPOSED PROJECT RESTRUCTURING OF AGRICULTURAL DEVELOPMENT SUPPORT PROJECT (IDA CREDIT NO. 5624-MM) (Board Approval Date: April 23, 2015) TO THE REPUBLIC OF THE UNION OF MYANMAR June 13, 2016 Agriculture Global Practice East Asia and Pacific Region 1 This document has a restricted distribution and may be used by recipients only in the performance of their official duties. Its contents may not otherwise be disclosed without World Bank authorization. 2 ABBREVIATIONS AND ACRONYMS CERIP Contingent Emergency Response Plan GoM Government of Myanmar IDA International Development Association IRM Immediate Response Mechanism MOALI Ministry of Agriculture, Livestock and Irrigation MOPAF Ministry of Planning and Finance OAG Office of the Auditor General of the Union PDNA Post-Disaster Needs Assessment PDO Project Development Objective TOR Terms of Reference UNOPS United Nations Office for Project Services Regional Vice President: Victoria Kwakwa Country Director: Ulrich Zachau Senior Global Practice Director: Juergen Voegele Practice Manager/Manager: Nathan M. Belete Task Team Leader: Sergiy Zorya 3 REPUBLIC OF THE UNION OF MYANMAR AGRICULTURAL DEVELOPMENT SUPPORT PROJECT CONTENTS A. SUMMARY 5 B. PROJECT STATUS 6 C. PROPOSED CHANGES 6 ANNEX 1: RESULTS FRAMEWORK AND MONITORING 9 4 DATA SHEET Myanmar Agricultural Development Support Project (P147629) EAST ASIA AND PACIFIC Agriculture Report No: RES24137 Basic Information Investment Project Project ID: P147629 Lending Instrument: Financing Regional Vice President: Victoria Kwakwa Original EA Category: Partial Assessment (B) Country Director: Ulrich Zachau Current EA Category: Partial Assessment (B) Senior Global Practice Juergen Voegele Original Approval Date: 23-Apr-2015 Director: Practice Nathan M. Belete Current Closing Date: 30-Jun-2022 Manager/Manager: Team Leader(s): Sergiy Zorya Borrower: Republic of the Union of Myanmar Responsible Ministry of Agriculture and Irrigation Agency: Restructuring Type Form Type: Full Restructuring Paper Decision Authority: CD Decision Restructuring Level: Level 2 Explanation of Reference is made OP 10.00 Approval Authority: Para 12 and 13 and OPCS Guidance note on IDA IRM, this is a Level 2 Restructuring. Financing ( as of 26-Nov-2015 ) Key Dates Effectiveness Original Revised Project Ln/Cr/TF Status Approval Date Signing Date Date Closing Date Closing Date Effect P147629 IDA-56240 23-Apr-2015 09-Sep-2015 29-Sep-2015 30-Jun-2022 30-Jun-2022 ive Disbursements (in Millions) % Undisbur Project Ln/Cr/TF Status Currency Original Revised Cancelled Disbursed Disburse sed d Effect P147629 IDA-56240 XDR 71.00 71.00 0.00 0.00 71.00 ive 5 Policy Waivers Does the project depart from the CAS/CPF in content or in other significant Yes [ ] No [ X ] respects? Does the project require any policy waiver(s)? Yes [ ] No [ X ] A. Summary of Proposed Changes The purpose of the restructuring is to permit the implementation of the IDA IRM, in line with operational policy. Per IDA IRM Guidance Note, PDO change would still be considered Level II restructuring based on the delegated approval authority for IDA IRM restructurings. During July to September 2015, Myanmar experienced several disasters (cyclone, floods and landslide). These disasters had a major impact on about 5.2 million people exposing them to heavy floods, strong winds and landslides in the 40 most heavily affected townships. A Post-Disaster Needs Assessment (PDNA), led by the Government of Myanmar and supported by the World Bank Group and other development partners, estimated the total damages and losses of the floods and landslides to be US$1.5 billion. Of this, US$615.6 million was attributed to damages and US$892.9 million to losses. The total effects are the equivalent of 3.1 percent of Myanmar’s gross domestic product (GDP) in 2014/2015. Given the scale of impact and urgent financial needs for post-disaster recovery and reconstruction, the Government of Myanmar (GoM) seeks the activation of the IDA Immediate Response Mechanism (IDA IRM) as part of its broader strategy to meet the recovery and reconstruction needs of its population. The IDA IRM is part of World Bank’s support for Myanmar’s reconstruction and recovery efforts. The IDA IRM allows countries to access up to 5 percent of the total undisbursed amount of investment lending portfolio in the country. The current undisbursed portfolio in Myanmar is US$1.276 billion, making the request of US$32 million part of the available volume. The Contingent Emergency Response Component (CERC) of four projects have been requested by the GoM to be activated with the amounts as shown in the table below. The restructuring is required for the activation of IDA IRM, and it is prepared in accordance to the Contingent Emergency Response Plan (CERIP) and Paragraph 12 and 13 of OP 10.00. Overview of Projects with CERC activated for IDA IRM Original Credit Proposed reallocation Project Amount (US$) to IDA IRM (US$) Essential Health Services Access Project 100,000,000 3,431,000 Ayeyarwady Integrated River Basin 100,000,000 4,610,000 Management Project Agricultural Development Support 100,000,000 4,991,000 Project National Community Driven 400,000,000 18,944,000 Development Project Total 700,000,000 31,976,000 Change in Implementing Agency Yes [ ] No [ X ] Change in Project's Development Objectives Yes [ X ] No [ ] Change in Results Framework Yes [ X ] No [ ] Change in Safeguard Policies Triggered Yes [ ] No [ X ] Change of EA category Yes [ ] No [ X ] 6 Other Changes to Safeguards Yes [ ] No [ X ] Change in Legal Covenants Yes [ ] No [ X ] Change in Loan Closing Date(s) Yes [ ] No [ X ] Cancellations Proposed Yes [ ] No [ X ] Change to Financing Plan Yes [ ] No [ X ] Change in Disbursement Arrangements Yes [ ] No [ X ] Reallocation between Disbursement Categories Yes [ X ] No [ ] Change in Disbursement Estimates Yes [ ] No [ X ] Change to Components and Cost Yes [ X ] No [ ] Change in Institutional Arrangements Yes [ ] No [ X ] Change in Financial Management Yes [ ] No [ X ] Change in Procurement Yes [ ] No [ X ] Change in Implementation Schedule Yes [ ] No [ X ] Other Change(s) Yes [ ] No [ X ] Appraisal Summary Change in Economic and Financial Analysis Yes [ ] No [ X ] Appraisal Summary Change in Technical Analysis Yes [ ] No [ X ] Appraisal Summary Change in Social Analysis Yes [ ] No [ X ] Appraisal Summary Change in Environmental Analysis Yes [ ] No [ X ] Appraisal Summary Change in Risk Assessment Yes [ ] No [ X ] B. Project Status The implementation has been affected by the long government transition and the merge of three ministries into one. The implementation has accelerated since May 2016. The procurements on the project management unit and the study for feasibility and design for irrigation works have progressed. The project management unit will be established by the end of July. The important reviews of land surveying and tenure procedures in place related to the project are almost completed, permitting the start of actual land surveying of selected irrigation sites. The designated account opened on June 5 and the first disbursement will be made by the end of June 2016. The 2016/17 annual work plan for US$8.5 million will be approved by the National Project Steering Committee on June 16, and the implementation will gain the further momentum. C. Proposed Changes The purpose of the restructuring is to permit the implementation of the IDA IRM, in line with operational policy. Per IDA IRM Guidance Note, PDO change would still be considered Level II restructuring based on the delegated approval authority for IDA IRM restructurings. The restructuring proposes the following changes: 1. Change in PDO: PDO is revised to include reference to IDA IRM. 2. Change in Results Framework: An indicator is added to monitor the implementation of IDA IRM. 3. Reallocation between disbursement categories. 4. Change in Component and Cost: This is to reflect allocations to Contingent Emergency 7 Response Component. Details of all the changes are reflected in the following sections. Development Objectives/Results Project Development Objectives Original PDO The Project Development Objective is to increase crop yields and cropping intensity in the selected existing irrigation sites in the Recipient's Bago East, Nay Pyi Taw, Mandalay, and Sagaing regions. Change in Project's Development Objectives Explanation The Project’s Development Objective (PDO) is revised to reflect the provision of emergency financing under the Immediate Response Mechanism (IRM) per IPF’s IDA IRM Guidance Note. Proposed New PDO The Project Development Objective is to increase crop yields and cropping intensity in the selected existing irrigation sites in the Recipient's Bago East, Nay Pyi Taw, Mandalay, and Sagaing regions, and, in the event of an Eligible Crisis or Emergency, to provide immediate and effective response to said Eligible Crisis or Emergency. Change in Results Framework Explanation: As stated in paragraph 21 of CERIP, an indicator, “Goods procured and distributed as outlined in the CERIP”, will be added to help monitor the implementation of IDA IRM. Financing Reallocations Explanation: Reallocation of SDR 3,560,000 from Category (1) to Category (2), as set forth below. Current Actual Pending Disbursement % Allocation Allocation (Type Total) Ln/Cr/TF Currency Cat.No. Category of Disbursem Commitm Current Proposed Expenditure ents ents Current Proposed GD,WK,Non CS,CS+audit IDA- 71,000,000. 67,440,000. XDR 1 Training, 0.00 0.00 100.00 100.00 56240-001 00 00 OCRC P1,P2,P3 Emergency 3,560,000.0 2 Expenditures 0.00 0.00 0.00 100.00 100.00 0 Pt 4 71,000,000. 71,000,000. Total: 0.00 0.00 00 00 Components Change to Components and Cost Explanation: 8 The following reallocation to the Component 4: Contingent Emergency Response at the total amount of US$4,991,000 applies: - Deduct US$3,991,000 from Component 1 - Deduct US$1,000,000 from Component 2 Proposed Current Component Proposed Component Current Cost Cost Action Name Name (US$M) (US$M) 1. Irrigation and Drainage 78.40 74.41 Revised Management 2. Farm Advisory and 17.20 16.20 Revised Technical Services 3. Project Coordination and 4.40 4.40 No Change Management 4. Contingent Emergency 0.00 4.99 Revised Response Total: 100.00 100.00 9 ANNEX 1: RESULTS FRAMEWORK AND MONITORING Project Project Agricultural Development Support Project (P147629) Restructuring Status: Final Name: Stage: Team Leader(s): Sergiy Zorya Requesting EACTF Created by: Sergiy Zorya on 10-Jun-2016 Unit: Product Responsible IBRD/IDA GFA02 Modified by: Sergiy Zorya on 10-Jun-2016 Line: Unit: Country: Myanmar Approval FY: 2015 Lending Region: EAST ASIA AND PACIFIC Investment Project Financing Instrument: Project Development Objectives Original Project Development Objective: The Project Development Objective is to increase crop yields and cropping intensity in the selected existing irrigation sites in the Recipient's Bago East, Nay Pyi Taw, Mandalay, and Sagaing regions. Proposed Project Development Objective (from Restructuring Paper): The Project Development Objective is to increase crop yields and cropping intensity in the selected existing irrigation sites in the Recipient's Bago East, Nay Pyi Taw, Mandalay, and Sagaing regions, and, in the event of an Eligible Crisis or Emergency, to provide immediate and effective response to said Eligible Crisis or Emergency. Results Results reporting level: Project Level Core sector indicators are considered: Yes 10 Project Development Objective Indicators Status Indicator Name Core Unit of Measure Baseline Actual(Current) End Target No Change Direct project beneficiaries Number Value 0.00 120000.00 Date 30-Oct-2014 30-Jun-2022 Comment No Change Female beneficiaries Percentage Value 0.00 50.00 Sub Type Supplemental No Change Average yields of selected Percentage Value 0.00 25.00 crops in project areas increased Date 30-Oct-2014 30-Jun-2022 Comment No Change Paddy rice (wet season) Percentage Value 0.00 25.00 Sub Type Date 30-Oct-2014 30-Jun-2022 Breakdown Comment No Change Paddy rice (dry season) Percentage Value 0.00 30.00 Sub Type Date 30-Oct-2014 30-Jun-2022 Breakdown Comment No Change Blackgram Percentage Value 0.00 30.00 Sub Type Date 30-Oct-2014 30-Jun-2022 Breakdown Comment No Change Green gram Percentage Value 0.00 30.00 Sub Type Date 30-Oct-2014 30-Jun-2022 Breakdown Comment No Change Cropping intensity in project Percentage Value 120.00 160.00 11 areas increased Date 30-Oct-2014 30-Jun-2022 Comment Intermediate Results Indicators Status Indicator Name Core Unit of Measure Baseline Actual(Current) End Target No Change Area provided with irrigation Hectare(Ha) Value 0.00 35000.00 and drainage services (ha) Date 30-Oct-2014 30-Jun-2022 Comment No Change Area provided with irrigation Hectare(Ha) Value 0.00 35000.00 and drainage services - Sub Type Date 30-Oct-2014 30-Jun-2022 Improved (ha) Breakdown Comment No Change Water users provided with Number Value 0.00 22000.00 new/improved irrigation and Date 30-Oct-2014 30-Jun-2022 drainage services (number) Comment No Change Water users provided with Number Value 0.00 2200.00 irrigation and drainage services Sub Type Date 30-Oct-2014 30-Jun-2022 - female (number) Breakdown Comment No Change Operational water user Number Value 0.00 280.00 associations created and/or Date 30-Oct-2014 30-Jun-2022 strengthened (number) Comment No Change Technologies demonstrated in Number Value 0.00 56.00 the project areas (number) Date 30-Oct-2014 30-Jun-2022 Comment No Change Land area where sustainable Hectare(Ha) Value 0.00 10500.00 land mgt. practices were Date 30-Oct-2014 30-Jun-2022 12 adopted as a result of proj Comment No Change Land users adopting Number Value 0.00 6500.00 sustainable land mgt. practices Date 30-Oct-2014 30-Jun-2022 as a result of the project Comment No Change Land users adopting SLM Number Value 0.00 0.00 600.00 practices as a result of the Sub Type project - female Supplemental No Change Clients who have adopted an Number Value 0.00 11000.00 improved agr. technology Date 30-Oct-2014 30-Jun-2022 promoted by the project Comment No Change Clients who adopted an Number Value 0.00 1100.00 improved agr. technology Sub Type Date 30-Oct-2014 30-Jun-2022 promoted by project – female Breakdown Comment No Change Targeted clients satisfied with Percentage Value 0.00 60.00 agricultural services Date 30-Oct-2014 30-Jun-2022 (percentage) Comment No Change Targeted clients satisfied with Number Value 0.00 198000.00 agricultural services - male Sub Type (number) Supplemental No Change Targeted clients satisfied with Number Value 0.00 198000.00 agricultural services - female Sub Type (number) Supplemental No Change Targeted clients- male Number Value 0.00 331000.00 (number) Sub Type 13 Supplemental No Change Targeted clients – female Number Value 0.00 331000.00 (number) Sub Type Supplemental No Change Client days of training Number Value 0.00 30000.00 provided (number) Date 30-Oct-2014 30-Jun-2022 Comment No Change Client days of training Number Value 0.00 3000.00 provided - Female (number) Sub Type Date 30-Oct-2014 30-Jun-2022 Breakdown Comment No Change Project progress reports Yes/No Value No Yes submitted on time Date 30-Oct-2014 30-Jun-2022 Comment No Change Annual audit report submitted Yes/No Value No Yes on time Date 30-Oct-2014 30-Jun-2022 Comment New Goods procured and distributed Yes/No Value No Yes as outlines in the CERIP Date 14-Jun-2016 14-Jun-2017 Comment Procurement and distribution of goods as described in the IDA IRM Contingent Emergency Response 14 Implementation Plan (CERIP), developed for the response to the 2015 floods and landslides. 15