Document of
                                          The World Bank


                                                                                Report No: 69305-MR




                                    RESTRUCTURING PAPER

                                                  ON A


                          PROPOSED PROJECT RESTRUCTURING
                                        OF


    THE SECOND PHASE OF INTEGRATED DEVELOPMENT PROGRAM FOR
                 IRRIGATED AGRICULTURE (PDIAIM 2)
                              LOAN


                                            March 17, 2005


                                                TO THE

                           ISLAMIC REPUBLIC OF MAURITANIA



                                              June 1, 2012




Agriculture and Rural Development Unit (AFTAR)
Sustainable Development Department
Country Department AFCF1
Africa Region


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.
                  ABBREVIATIONS AND ACRONYMS



AF       Additional Financing
APL      Adaptable Program Lending
GFRP     Global Food Response Program
IDA      International Development Association
M&E      Monitoring and Evaluation
OP/BP    Operational Policy/Bank Policy
PDIAIM   Programme de Développement Intégré de l’Agriculture Irriguée en
         Mauritanie (Integrated Development Program for Irrigated Agriculture in
         Mauritania)
PDO      Project Development Objective




          Regional Vice President:       Makhtar Diop
                Country Director:        Vera Songwe
          Acting Sector Manager :        Martien Van Nieuwkoop
               Task Team Leader:         Amadou Oumar Ba



                                     2
                                                  MAURITANIA


                                   r
     THE 2ND PHASE OF THE INTEGRATED DEVELOPMENT PROGRAM FOR
                   IRRIGATED AGRICULTURE (PDIAIM 2)
                                P088828
                                P081368
                              CONTENTS

                                                                                                                        Page
A.   SUMMARY ................................................................................................................ 4
B.   PROJECT STATUS.................................................................................................... 4
C.   PROPOSED CHANGE .............................................................................................. 5




                                                             3
     THE 2ND PHASE OF THE INTEGRATED DEVELOPMENT PROGRAM FOR
                   IRRIGATED AGRICULTURE (PDIAIM 2)

                              RESTRUCTURING PAPER

A. SUMMARY

1. This memorandum seeks your approval for a third restructuring of the project in order
to enable the Board approval during the month of July 2012 of an additional financing to
the project that will include an emergency and food price response component. This
additional financing will be managed by the project implementation unit of the PDIAIM.
The proposed change consists only of extending the closing date by three months, from
July 1st, 2012 to September 30, 2012. The credit of SDR 25.7 million of the project was
approved by the Board on March 17, 2005, and became effective on July 13, 2005 with
an original closing date of December 31, 2010. A first 12-month extension as approved
on November 2010 to catch up with the sixteen months suspension period following the
political turmoil due to the August 2008 military coup. In December 2011, a second six
months extension period was granted to do a reallocation of the credit proceeds, to
support the achievement of the Project Development Objectives, totaling a cumulative
extension period of eighteen months.

2.  The Recipient, in its letter dated May 29, 2012 (attached) requested a 3-month
extension of the Development Credit Agreement signed April 14, 2005. The development
objective of Phase II is three-fold: (i) consolidate key incentive measures, (ii) increase
sustainable irrigation schemes, and (iii) intensify agricultural diversification for targeted
actors engaged in irrigated agriculture.

B. PROJECT STATUS

3. As stated earlier the Project is at its final implementation period with a current closing
date of June 30, 2012. The current rating of the project is “moderately satisfactory�.
Almost all activities of the Project have now been completed. As of to date, the project
has disbursed 98.56% of the original amount of credit approved by the Board.

4. The team confirms that (i) the PDO remains largely achievable; despite of the
shortfall in the target of the irrigation component (surface rehabilitated), (ii) the audit
reports have been provided and are satisfactory, and (iii) with the proposed third
extension of the closing date to September 30, 2012, the accumulated closing date
extensions will so far add up to 21 months.

5. Following the November 2011 mission, the Bank has received another formal request
from the Government. The proposed level 2 restructuring will allow the PIU to finalize
still outstanding activities (final acceptance of civil works for 3 perimeters, study for the
Wandama perimeter, and rural strategy update) and complete needed updates of the
different project manuals (procurement manual, financial management procedures, M&E)
and the environmental and social safeguards studies in preparation of an Additional
                                             4
Financing operation for urgent support in the current food crisis situation to be negotiated
in June 2012. Due to this limited work agenda during the 3 months extension period, a
more comprehensive Action Plan has not been established.

C. PROPOSED CHANGES

6. The purpose of the proposed restructuring is to extend the project closing date by 3
months to September 30, 2012.




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