The World Bank AR Socio-Economic Inclusion In Rural Areas (P106685) REPORT NO.: RES32574 RESTRUCTURING PAPER ON A PROPOSED PROJECT RESTRUCTURING OF ARGENTINA SOCIO-ECONOMIC INCLUSION IN RURAL AREAS PROJECT APPROVED ON JUNE 11, 2015 TO ARGENTINE REPUBLIC AGRICULTURE LATIN AMERICA AND CARIBBEAN Regional Vice President: Axel van Trotsenburg Country Director: Jesko S. Hentschel Senior Global Practice Director: Jurgen Voegele Practice Manager/Manager: Preeti S. Ahuja Task Team Leader: Tomas Ricardo Rosada Villamar, Francisco Javier Obreque Arqueros The World Bank AR Socio-Economic Inclusion In Rural Areas (P106685) ABBREVIATIONS AND ACRONYMS DIPROSE General Directorate of Sectoral and Special Dirección General de Programas y Proyectos Programs and Projects Sectoriales y Especiales ESMF Environmental and Social Management Marco de Gestión Ambiental y Social Framework GIRSAR Integrated Risk Management in the Rural Gestión Integral de los Riesgos en el Sistema Agroindustrial System Agroindustrial Rural GSA Government Secretariat of Agroindustry Secretaría de Gobierno de Agroindustria GoA Government of Argentina Gobierno de Argentina IBRD International Bank for Reconstruction and Banco Internacional de Reconstrucción y Fomento Development (BIRF) IPPF Indigenous Peoples Planning Framework Marco de Planificación de Pueblos Indígenas MGAS Environmental and Social Management Manual de gestión ambiental y social Framework NEA North-east Argentina Noreste Argentino NOA North-west Argentina Noroeste Argentino OP/BP Operational Policies/ Bank Procedures Políticas Operacionales/ Normas de Procedimientos del Banco OM Operational Manual Manual Operativo PIU Project Implementation Unit Unidad de gestión del proyecto PISEAR Socioeconomic inclusion in rural areas project Proyecto de inclusión socioeconómica en áreas rurales PROSAP Provincial Agricultural Services Program Programa de Servicios Agrícolas Provinciales PDO Project Development Objective Objetivo de Desarrollo del Proyecto PAD Project Appraisal Document Documento de Evaluación del Proyecto RPF Resettlement Policy Framework Marco de Política de Reasentamiento UCAR Rural Change Unit (former PIU) Unidad Cambio Rural The World Bank AR Socio-Economic Inclusion In Rural Areas (P106685) BASIC DATA Product Information Project ID Financing Instrument P106685 Investment Project Financing Original EA Category Current EA Category Partial Assessment (B) Partial Assessment (B) Approval Date Current Closing Date 11-Jun-2015 28-Feb-2021 Organizations Borrower Responsible Agency Dirección General de Programas y Proyectos Sectoriales y Argentine Republic Especiales (DIPROSE) Project Development Objective (PDO) Original PDO To increase the socio-economic inclusion of rural poor (small producers, indigenous people, and rural workers) by: (a) strengthening their organizational, planning and management capacity to achieve poverty-reduction goals; (b) improving their access to communityinfrastructure and services; and (c) piloting a new model for developing sustainable access to markets. OPS_TABLE_PDO_CURRENTPDO Summary Status of Financing Net Ln/Cr/Tf Approval Signing Effectiveness Closing Commitment Disbursed Undisbursed IBRD-80930 11-Jun-2015 09-Dec-2015 07-Apr-2016 28-Feb-2021 52.50 8.77 43.73 The World Bank AR Socio-Economic Inclusion In Rural Areas (P106685) Policy Waiver(s) Does this restructuring trigger the need for any policy waiver(s)? No I. PROJECT STATUS AND RATIONALE FOR RESTRUCTURING A. Introduction 1. This Level Two Restructuring includes the following changes: I. components: inclusion of medium-scale rural investments under component 2 and expansion the geographical coverage of component 3 (pilot of productive alliances); II. institutional arrangements; III. triggering of OP 7.50 and updating of safeguard instruments; IV. disbursement categories and reallocation of funds; V. procurement arrangements; VI. results framework; and VII. inclusion of the Safeguards Incident Response Requirement B. Project Status 2. The USD52.5 million Loan was approved in June 2015 and declared effective in April 2016. As a result of the fiscal consolidation, only 15.0 percent of IBRD funds have been disbursed as of April 10, 2019 and performance progress has been limited. 3. Delays in implementation, budgetary constraints at the federal level, and various institutional reforms have slowed down project implementation since 2016. A long process of signing Participation Agreements with Provinces and setting up provincial project execution units and provincial implementation plans led to downgrading of the key project rankings. In 2017 the Government started to implement a plan to gradually reduce the fiscal deficit, which also included reducing the use of financial resources from external financiers. As a result, the Project received reduced budget allocations in 2017 and 2018, which only allowed the project to carry out a small part of the originally planned activities. 4. In 2018, changes in the Government’s institutional framework further contributed to slow down implementation. The Executive Branch of the Argentine Republic underwent several institutional reforms. Presidential Decree 174/2018 and Administrative Decision 324/018 of March 2018 approved the organizational structure of the Ministry of Agroindustry, replacing the original project implementation unit ‘UCAR’ by a directorate under the Sub-Secretary of Administration, “Dirección General de Programas y Proyectos Sectoriales y Especiales (DIPROSE)”. Subsequently, by Presidential decree 802/2018 of September 5, 2018, the Ministry of Agroindustry became the Secretariat of Agroindustry (GSA) under the Ministry of Production and Labor, without implying changes in the functions, structure, or composition of DIPROSE. The World Bank AR Socio-Economic Inclusion In Rural Areas (P106685) 5. Since June 2018 and based on the detailed analysis of the performance of the project conducted the Mid Term Review, the key ratings of the project have been downgraded: Progress towards achievement of PDO is currently rated Moderately Unsatisfactory, and Overall implementation Progress is rated Unsatisfactory. 6. Activities under components 2 and 3 have now picked up and implementation has improved: at end 2018, the Project had approved 104 rural investment subprojects under component 2 (with 98 subprojects under implementation) and 13 productive alliances under component 3 (with 11 alliances under implementation). These subprojects are delivering the expected benefits on the ground and are progressing satisfactorily. However, the ongoing the fiscal consolidation constraint limits the project’s ability to reach the scale necessary to achieve its key targets. The Borrower and the Bank have thus agreed to work out an alternative mechanism that would enable the use of project funds for the remaining implementation period. 7. Fiduciary and Safeguards management. The project financial statement audit reports are up to date and have been satisfactory to the Bank. However,the concurrent audits for the subprojects have not been completed as originally planned (see paragraph 25 below). Beyond this specific point, the project is in compliance with fiduciary requirements and with the environmental and social safeguards instruments. C. Background and Rationale for Restructuring 8. The Project restructuring aims to improve overall performance and ensure the achievement of the PDO by the current closing date. The proposed restructuring would allow the project to disburse loan proceeds more smoothly, significantly increase the delivery of subprojects, and maximize development impact at the grassroot level. Furthermore, it would resolve outstanding issues that have emerged during implementation regarding financial management, disbursements, and procurement, and improve the results framework to better track progress towards achieving the PDO. The full extent of the proposed changes is described in Section II. The restructuring was requested by the Borrower in January 2019. II. DESCRIPTION OF PROPOSED CHANGES I. Changes in components Inclusion medium-scale rural investments under component 2 9. To expand the impact and scope of the investments and activities of the Rural Investment Subprojects under component 2, the financing of medium-scale works is proposed with a ceiling of USD800,000.00 per investment. These would include rehabilitation of rural roads; collection and conduction of water for irrigation and human and animal consumption; installation or rehabilitation of electrical networks; use of alternative energy sources; and improvement of communication and rural connectivity. Schedule 1 of the Loan Agreement, Project Description, Part 2: Rural Livelihoods, would be modified accordingly. This would require the creation of a new disbursement Category (10), as set out in Schedule 2 Section IV.A.1 of the Loan Agreement to cover these medium-scale investments. These works would be executed at the provincial level. Changes have been reflected in the updated version of the Operation Manual (OM). 10. The underpinning rationale for including medium-scale investments is that sometimes small community investments are not sufficient to ensure access to infrastructure and services. In such cases, complementary investments at a larger scale can make a significant difference in terms of maximizing development impact. For instance, repairing a rural road that serves multiple communities can be critical for community subprojects that aim to improve access to local The World Bank AR Socio-Economic Inclusion In Rural Areas (P106685) markets. Beneficiary communities have raised this concern and requested additional support for this type of investments. Expansion the geographical coverage of component 3 (pilot of productive alliances) 11. It is proposed to expand the geographical scope of component 3 to all of the provinces participating in the project. There are two reasons for this change: First, project experience thus far has shown that selecting the intervention area only based on poverty indicators has significant limitations; the poverty indicator-based approach worked well for the initial pilot activities in the North-East (NEA) and North-West Argentina (NOA), but demand for additional productive alliances in these areas has shown to be limited. And, second, expanding to further provinces also represents an important opportunity for the project to diversify into different value chains as well as to provide, through these pilots, richer lessons learned from a more diverse range of experiences. 12. Project experience has shown that there is both demand and capacity for productive alliances in the rest of the participating provinces, representing an opportunity to consolidate the productive alliances model in the rest of the country. Implementation of the first productive alliances in the NEA and NOA has triggered interest among all participating provinces in applying this instrument. For most provinces, the productive alliance approach is furthermore a strong fit, as promoting access to markets for smallholder producers has now become an integral part of their development agendas. In addition, provinces that are carrying out investments under component 2 would also have the capacity to transition to productive alliances in a smooth manner; in fact, in many countries, agencies responsible for community-driven investments also implement productive alliances. To implement this expansion, the project would first add those provinces that have shown readiness for the adoption of productive alliances (e.g. Córdoba, Santa Fe, and San Juan). 13. To incorporate this change into the Project, the OM has been adjusted accordingly. II. Changes in institutional arrangements 14. In the context of limited fiscal space at the federal level, the central (federal) Government decided to adopt an on- lending scheme to the provinces. Since its inception, the project has been transferring IBRD proceeds to the provinces on a grant basis for Rural Investment Subprojects under component 2. By doing so, the funds have been allocated and recorded in the national (federal) budget. On the contrary, if participating provinces were to take debt via sub-loans, the funds would go through the budget at the province level, not affecting the fiscal deficit at the federal level. Therefore, by operating based on sub-loans, the project should be in a better position to disburse larger amounts of resources. The World Bank AR Socio-Economic Inclusion In Rural Areas (P106685) 15. With regards to the implementation arrangements of the project, the following changes are being proposed: Table 1: changes in implementation arrangements Original arrangement Proposed change Remarks Component 1 (Capacity Development): Institutions have been updated The former Ministry of Agroindustry turned to - through Secretariat of Government Secretariat of Agroindustry (under Agriculture (GSA/DIPROSE, the Ministry of Production and Labor) and UCAR former UCAR), including the became DIPROSE. Technical Assistance Agreements (Section I.A.4 of Schedule 2) as This update also applies to components 2 and 3. well as for Contracting Management Agreements (Section I.A.5 of Schedule 2). Component 2 (Rural Livelihood): a) and b) remain unchanged a) GSA/DIPROSE transfers funds Section I.D.1 (a) of Schedule 2 and Schedule 6 of to participating provinces on a the Loan Agreement grant basis, with provinces c) Adding the on-lending scheme for providing grants to beneficiary subprojects: GSA/DIPROSE transfers funds to After the restructuring becomes effective, the communities for demand-driven participating provinces as sub-loans, with project will carry out all new subprojects via sub- investments/activities (Section provinces providing grants to beneficiary loans to provinces (modality c). However, the I.D.1.a, Schedule 2). communities. portfolio will have legacy subprojects with the original schemes a) and b) (approved before the b) GSA/DIPROSE transfers grants d) Adding the on-lending scheme for restructuring). Therefore, all three mechanisms directly to beneficiary medium-scale investments: GSA/DIPROSE may coexist until project end. communities (Section I.D.1.b, transfers funds to participating provinces as Schedule 2). sub-loans for medium-scale infrastructure Sub-loans are specified in the participating investments. agreements. Component 3 (Access to Markets): a) remains unchanged After the restructuring becomes effective, this component will only operate through sub-loans a) GSA/DIPROSE transfers grants b) Addition of the on-lending scheme: to provinces (modality b), with provinces directly to producer organizations GSA/DIPROSE transfers funds to providing grants to organizations. However, (Section I.D.3.1, Schedule 2). participating provinces as sub-loans, with currently there are 13 alliances under scheme a), provinces providing grants to producer thus, both modalities (a and b) may coexist until organizations for investments/activities. project end. Sub-loans are specified in the participating agreements. Component 4 (Project Management): No change - execution of this component at the central level through GSA/DIPROSE. 16. On-lending poses risks. Given current circumstances an on-lending mechanism is the only alternative acceptable to the Borrower to move forward with the project. However, it is important to recognize that this scheme poses the risk of causing delays, which has been evidenced in prior Bank-funded projects that used subnational loans, such as The World Bank AR Socio-Economic Inclusion In Rural Areas (P106685) PROSAP (106684)1. Conscious of this risk, the Borrower has assumed a proactive approach to collaborating and negotiating with the provinces, which have been selected according to the prevalence of target groups, as determined in the PAD, and indebtedness capacity. DIPROSE has been diligently following through with the steps needed in each of the ten provinces, to make sure that all provincial agreements (one in each province covering both components 2 and 3) are signed within the next few months after the restructuring goes into effect. Currently, the level of progress in each province is the following: a. Corrientes, Neuquén and Córdoba have already secured a budget allocation for 2019 and are awaiting the restructuring and the signature of the respective provincial agreement to go ahead and process the final authorization, which would allow them to start operating. Neither amendments nor new laws are needed for the sub loans. b. Chaco, Misiones, La Rioja, Santa Fe and Río Negro have incorporated an allocation into the budget of 2019 and are amending their respective laws to make sub loans for PISEAR possible. c. Jujuy and Tucumán are requesting a budget allocation for 2019 and need to initiate the process of amending their respective laws.2 III. Triggering of OP 7.50 and updating of safeguard instruments 17. The safeguards instruments (Environmental and Social Management Framework -ESMF; Indigenous Peoples Planning Framework - IPPF and Resettlement Policy Framework - RPF) have been updated to reflect potential impacts associated with the medium scale works and the corresponding mitigation and compensation measures as well as different consultation processes as required in OP 4.10 and OP 4.12. The Bank has granted the no objection to the revised instruments on March 30th, 2019, which were publicly disclosed on April 2nd, 2019. The updated IPPF states the need to prepare and consult the corresponding indigenous peoples plan if a proposed medium scale work affects indigenous peoples. Actions agreed upon with indigenous people’s representatives during Project´s preparation and included in the original IPPF did not undergo any changes in this restructuring. 18. The Bank has re-examined the applicability of OP 7.50 and determined that it would become relevant for the Project. While OP 7.50 was not triggered during preparation, the infrastructure works (medium-scale investments) may involve the expansion, rehabilitation and/or improvement of ongoing water conduction systems, which could, in turn, rely on bodies of water that discharge into the Plata River basin. However, water abstraction has been estimated to be negligible in relation to the discharge flows of the respective transboundary rivers. Thus, the team has requested the exception to the notification requirement under paragraph 7 (a) of OP 7.50, which has been authorized by the Regional Vice President on May 3rd, 2019.3 1 The latest Completion and Learning Review of the Country Partnership Strategy flagged the potential delays that can result from preparing and putting in place subnational loans. 2 The Salta and Catamarca Provinces were hesitant to take debt and decided to drop out of the project. 3 As pointed out in the PAD, component 2 was projected to include small irrigation systems that install tanks and pipes, as well as water conduction systems for human consumption and household sanitation (latrines) without any discharge to any stream. At the time of preparation OP 7.50 was not triggered for these planned small-scale investments because the identified subprojects were not deemed to rely on international waterways as defined by the Policy. To date, this assessment has proved to be correct because none of the subprojects has used or affected bodies of water linked to international waterways. In the scenario that a given small- scale subproject were to use water from a stream within the Plata River basin, the case would also fall under the authorized exception. The World Bank AR Socio-Economic Inclusion In Rural Areas (P106685) IV. Changes in disbursement categories and reallocation of funds 19. It is proposed to make the following changes to the categories of disbursement in the Loan Agreement: 20. The allocation for Categories 2 (a) and 2(b) related to Community Subprojects (under Component 2), and 3(a) and 3 (b) related to IP Community Subprojects (also under Component 2) would be reduced to the amount disbursed as of December 31, 2018. Future disbursements for Component 2 will be made under two new categories of disbursement to be created: Category (9) Grants for Rural Investment Subprojects contemplating small-scale investments under Part 2 (a) of the Project with an allocation of US$27,813,599.21; and Category (10) for Works, goods, consulting services, and non-consulting services for the medium-scale investments under Part 2(b) of the Project with an allocation of US$10,000,000.00. These new categories of disbursement would be formulated to focus on the grants for subprojects rather than the types of expenditures that are eligible under each subproject, allowing for the more agile disbursement of the funds. As stated in the PAD, funding for indigenous peoples would be specifically earmarked in the Project budget (30 percent of resources of component 2 and corresponding resources from component 1). However, rather than controlling this in the disbursement table through a separate disbursement category, the requirement for this funding would be included in the OM and the target would be tracked through the monitoring and evaluation system of the project. 21. In relation to component 3b (productive alliances), a new disbursement category is created (category 11) with an allocation of USD 9.92 million. This new disbursement category would be formulated to focus on the grants for subprojects rather than the types of expenditures that are eligible under each subproject. 22. In relation to component 4 (project management), Category 6 would be increased by USD 0.26 million to finance concurrent subproject audits. 23. Table 1 below summarizes the changes to disbursement categories. The World Bank AR Socio-Economic Inclusion In Rural Areas (P106685) Table 2: Modified disbursement categories Amount of the Loan Percentage of Expenditures to be financed Category Allocated (inclusive of Taxes) (expressed in USD) (1) Consulting services, non-consulting services, 2,100,000 100% Training and Operating Costs under Part 1 of the Project (2) (a) Works and goods under Community Subprojects under 372,123.45 100% of the amount disbursed under the Part 2 of the Project incurred on or prior to December 31, pertinent Rural Investment Subproject 2018 Agreement (b) Non-consulting services and consulting services under 2,810 100% of the amount disbursed under the Community Subprojects under Part 2 of the Project incurred pertinent Rural Investment Subproject on orprior to December 31, 2018 Agreement (3) (a) Works and goods under IP Community Subprojects under 542,795.49 100% of the amount disbursed under the Part 2 of the Project incurred on or prior to December 31, pertinent Rural Investment Subproject 2018 Agreement (b) Non-consulting services and consulting services under IP 8,671.85 100% of the amount disbursed under the Community Subprojects under Part 2 of the Project incurred pertinent Rural Investment Subproject on or prior to December 31, 2018 Agreement (4) Consulting services, non-consulting services, Goods, Training 1,000,000 100% and Operating Costs under Part 3(a) of the Project (5) (a) Works and goods under Productive Alliances Subprojects 78,150.24 100% of amount disbursed under the pertinent under Part 3(b) of the Project incurred on or prior to Productive Alliances Subproject Agreement December 31, 2018 (b) Non-consulting services, consulting services and 1,628.25 Operating Costs under Productive Alliances Subprojects under Part 3 (b) of the Project incurred on orprior to December 31, 2018 (6) Goods, consulting services and non-consulting services 528,750 100% under Part 4 of the Project (7) Front-end Fee 131,250 Amount payable pursuant to Section 2.03 of this Agreement in accordance with Section 2.07 (b) of the General Conditions (8) Premia for Interest Rate Caps or Interest Rate 0 Amount due pursuant to Section 2.08(c) of this Collars Agreement (9) Grants for Rural Investment Subprojects under Part 2 (a) of 27,813,599.21 100% of the amount disbursed for Grants for the Project Rural Investment Subprojects under the pertinent Rural Investment Subproject Agreement (10) Goods, works, consulting services, and non-consulting 10,000,000 100% services under Part 2 (b) of the Project (11) Grants for Productive Alliances Subprojects 9,920,221.51 100% of amount disbursed for Grants for under Part 3 (b) of the Project Productive Alliances Subprojects under the pertinent Productive Alliances Subproject Agreement TOTAL AMOUNT 52,500,000 The World Bank AR Socio-Economic Inclusion In Rural Areas (P106685) 24. Due to the fiscal constraints, the Government was unable to finance from its own resources the hiring of the auditors to perform the semi-annual financial, procurement, and technical audits of the activities under Parts 2 and 3(b) of the Project as originally planned. To avoid further delays in conducting the necessary audits, the Bank has agreed that this expenditure item be financed through loan proceeds. This would require an increase in the amount allocated to Category (6), as set out in Schedule 2 Section IV.A.1 of the Loan Agreement to cover these additional costs. The audits would also be mentioned explicitly under Part 4 of the Project so that these costs are eligible for financing. The Borrower has initiated the process of hiring the auditors to conduct the subproject audits. V. Change in the procurement arrangements 25. The project is adopting the Procurement Regulations for Investing Project Financing Borrowers, dated July 2016, revised in November 2017 and August 2018. A Project Procurement Strategy for Development has been prepared (the Bank granted a no objection on May 20th, 2019). The Strategy addresses how procurement activities support the development objectives of the project and provide adequate justification for the selection methods in the Procurement Plan. VI. Change in the results framework 26. It is proposed to adjust the results framework to: (i) incorporate indicators that better reflect actual and gradual progress on the ground, (ii) facilitate the measurement of some indicators that have presented difficulties in tracking progress during execution, and (iii) comply with the World Bank requirements on citizens’ engagement (table 3). Table 3: Modified Results Framework Original indicators Adjusted or new indicators Reason for change 1. Objective indicators Community organizations functional 12 Only adjusted intermediate targets. -- months after subproject completion (Number) Share of results achieved for Adjusted: Number of rural investment Due to the structure of the project database, Rural Investment Subprojects subprojects that meet at least 75% of the reporting the original indicator has turned expected results (Number) cumbersome. The change facilitates standardization and reporting. Increase in gross value Adjusted: Increase in volume of sales of To avoid distortions due to changes in prices, (Quantity x Price) of sales for the organizations participating in especially in commodity prices that are Productive Alliance Productive Alliances (Percentage) influenced by factors external to the Project and Subprojects. the country. Rural Investment and Only adjusted intermediate targets. -- Productive Alliance subprojects operational and/or maintained 12 months after their completion (Percentage) Number of beneficiaries, of which women Adjusted: A breakdown is included for the To be consistent with the disaggregation (percentage) three target groups of the Project: included in the PDO. -Number of beneficiaries of community subprojects -Number of beneficiaries of subprojects of indigenous communities -Number of beneficiaries of Productive Alliances The World Bank AR Socio-Economic Inclusion In Rural Areas (P106685) Original indicators Adjusted or new indicators Reason for change 2. Intermediate indicators Component 1 Community organizations created or Adjusted: Community organizations The Project has only strengthened pre-existing strengthened by the Project strengthened by the Project organizations and is not considering creating new organizations. Subproject proposals considered Only adjusted intermediate targets --- eligible for financing (over total of proposals presented) Component 2 Community Subprojects completed Adjusted: Supplementary indicators are Including supplementary indicators for all three included categories of subprojects will allow the project -Approved community subprojects to better track the portfolio. Given the structure -Community subprojects with first of the project, a healthy portfolio is critical to disbursement achieving the PDO. -Community subprojects fully disbursed Indigenous subprojects completed Adjusted: Supplementary indicators are Refer to the previous indicator included: -Approved indigenous subprojects -Indigenous subprojects with first disbursement - Indigenous subprojects fully disbursed Families who have benefited by at least Only adjusted intermediate targets --- one subproject of rural investment (percentage whose head is a woman or a youth) Component 3 Financed Productive Alliances Adjusted: Completed Productive Refer to changes in component 2 Alliances; supplementary indicators are ‘completed’ is better language than ‘financed’ also included: -Approved productive alliances -Productive alliances with first disbursement -Productive alliances fully disbursed Producer families linked to markets Only adjusted intermediate targets --- through Productive Alliances Productive Alliances capable of starting a To be deleted This indicator does not apply to several of the second productive cycle without financial subsectors of alliances such as honey or yerba support mate. In addition, it is redundant with respect to the fourth main indicator. Others --- New: Grievances registered related to As per corporate requirement delivery of project benefits that are addressed within 30 days (%) (Percentage) VIII. Inclusion of the Safeguards Incident Response Toolkit (SIRT) 27. The restructuring has provided the opportunity to include the new corporate requirement of reporting incidents. The loan agreement (Section I.F of Schedule 2) would be amended to add a covenant requesting the Borrower to notify the Bank of any incident or accident related to or having an impact on the Project which has, or is likely to have, a The World Bank AR Socio-Economic Inclusion In Rural Areas (P106685) significant adverse effect on the environment, the affected communities, the public or workers, including, explosions, spills, any workplace accidents that result in death, serious or multiple injury, pollution, any violent labor unrest, any dispute between the Borrower or security forces (assigned to protect the Project) and local communities, any case of gender-based violence and violence against minors, or any incidents in or related to international waterways or disputed areas. The notification shall include sufficient detail regarding the incident or accident, indicating any measures that have been taken or are planned to be taken to address it, if any (including information provided by any contractor and supervising entity), all in accordance with the Operational Manual. III. SUMMARY OF CHANGES Changed Not Changed Results Framework ✔ Components and Cost ✔ Reallocation between Disbursement Categories ✔ Disbursements Arrangements ✔ Disbursement Estimates ✔ Safeguard Policies Triggered ✔ Legal Covenants ✔ Institutional Arrangements ✔ Procurement ✔ Other Change(s) ✔ Implementing Agency ✔ DDO Status ✔ Project's Development Objectives ✔ Loan Closing Date(s) ✔ Cancellations Proposed ✔ Overall Risk Rating ✔ EA category ✔ Financial Management ✔ APA Reliance ✔ Implementation Schedule ✔ The World Bank AR Socio-Economic Inclusion In Rural Areas (P106685) Economic and Financial Analysis ✔ Technical Analysis ✔ Social Analysis ✔ Environmental Analysis ✔ IV. DETAILED CHANGE(S) OPS_DETAILEDCHANGES_COMPONENTS_TABLE COMPONENTS Current Current Proposed Proposed Cost Action Component Name Component Name Cost (US$M) (US$M) Component 1: Capacity Component 1: Capacity 13.83 Revised 4.20 Development Development Component 2: Rural Livelihood 43.00 Component 2: Rural Livelihood 43.00 Component 3: Access to Component 3: Access to Markets 16.27 16.27 Markets Component 4: Project Component 4: Project 3.27 3.27 Management Management TOTAL 76.37 66.74 OPS_DETAILEDCHANGES_REALLOCATION _TABLE REALLOCATION BETWEEN DISBURSEMENT CATEGORIES Financing % Current Allocation Actuals + Committed Proposed Allocation (Type Total) Current Proposed IBRD-80930-001 | Currency: USD iLap Category Sequence No: 1 Current Expenditure Category: CS, NCS, TR & OP - Pt 1 2,100,000.00 225,562.65 2,100,000.00 100.00 100.00 iLap Category Sequence No: 2A Current Expenditure Category: CW & GO: Community Subp. Pt 2 25,935,000.00 372,123.45 372,123.45 100.00 100.00 The World Bank AR Socio-Economic Inclusion In Rural Areas (P106685) iLap Category Sequence No: 2B Current Expenditure Category: NCS & CS: Community Subp. Pt 2 1,365,000.00 2,809.99 2,810.00 100.00 100.00 iLap Category Sequence No: 3A Current Expenditure Category: CW & GO: IP Community Subp. Pt 2 11,115,000.00 542,795.49 542,795.49 100.00 100.00 iLap Category Sequence No: 3B Current Expenditure Category: NCS & CS: IP Community Subp. Pt 2 585,000.00 8,671.85 8,671.85 100.00 100.00 iLap Category Sequence No: 4 Current Expenditure Category: CS, NCS, GO, TR & OP - Part 3a 1,000,000.00 157,466.92 1,000,000.00 100.00 100.00 iLap Category Sequence No: 5A Current Expenditure Category: CW & GO: Prod. Alliances Subp. P3b 9,500,000.00 78,150.24 78,150.24 100.00 100.00 iLap Category Sequence No: 5B Current Expenditure Category: NCS,CS&OP: Prod.Alliances Subp. P3b 500,000.00 1,628.25 1,628.25 100.00 100.00 iLap Category Sequence No: 6 Current Expenditure Category: GO, CS & NCS - Part 4 268,750.00 156,803.74 528,750.00 100.00 100.00 iLap Category Sequence No: 8 Current Expenditure Category: PREMIUM FOR CAPS/COLLARS 0.00 0.00 0.00 Current Expenditure Category: Grants for Rural Investment Subprojects under iLap Category Sequence No: 9 Part 2(a) of the project 0.00 0.00 27,813,599.21 100 iLap Category Sequence No: 10 Current Expenditure Category: GO, CW, CS, NCS under part 2(b) of the project 0.00 0.00 10,000,000.00 100 The World Bank AR Socio-Economic Inclusion In Rural Areas (P106685) Current Expenditure Category: Grants for Productive Alliance Subprojects under iLap Category Sequence No: 11 Part 3(b) of the project 0.00 0.00 9,920,221.51 100 Total 52,368,750.00 1,546,012.58 52,368,750.00 OPS_DETAILEDCHANGES_DISBURSEMENT_TABLE DISBURSEMENT ESTIMATES Change in Disbursement Estimates Yes Year Current Proposed 2015 0.00 0.00 2016 2,000,000.00 0.00 2017 630,579.99 0.00 2018 10,846,502.95 0.00 2019 19,925,000.00 8,919,334.50 2020 17,775,000.01 38,188,519.78 2021 1,322,917.05 399,172.99 2022 0.00 0.00 OPS_DETAILEDCHANGES_COMPLIANCE_TABLE COMPLIANCE Safeguard Policies Safeguard Policies Triggered Current Proposed Environmental Assessment (OP) (BP 4.01) Yes Yes Performance Standards for Private Sector No No Activities OP/BP 4.03 Natural Habitats (OP) (BP 4.04) Yes Yes Forests (OP) (BP 4.36) Yes Yes Pest Management (OP 4.09) Yes Yes Physical Cultural Resources (OP) (BP 4.11) Yes Yes The World Bank AR Socio-Economic Inclusion In Rural Areas (P106685) Indigenous Peoples (OP) (BP 4.10) Yes Yes Involuntary Resettlement (OP) (BP 4.12) Yes Yes Safety of Dams (OP) (BP 4.37) Yes Yes Projects on International Waterways (OP) (BP Yes Yes 7.50) Projects in Disputed Areas (OP) (BP 7.60) No No OPS_DETAILEDCHANGES_LEGCOV_TABLE LEGAL COVENANTS Loan/Credit/TF Description Status Action Finance Agreement :Terms of Reference for Consultancies under Part 1(b) (Schedule 2, Section I.F) | Description :Ensure that terms of reference for any consultancy in respect of any Project activity under Part 1(b) of the Project shall be satisfactory to the Bank IBRD-80930 Complied with No Change following its review thereof and, to that end, such terms of reference shall duly incorporate the requirements of the Bank Safeguards Policies then in force, as applied to the advice conveyed through such technical assistance. | Frequency :CONTINUOUS Finance Agreement :Specific Budget Line in the National Budget (Schedule 2, Section II.B.4) | Description :Create, prior to the commencement of each calendar year during Project implementation, and thereafter maintain IBRD-80930 throughout each said calendar year of Project Complied with No Change implementation, a specific budget line entry in the national annual budget in order to keep track of the corresponding expenditures incurred during Project implementation. | Frequency :Yearly Finance Agreement :Technical and Fiduciary Audits (Schedule 2, Section II.B.5) | Description :Carry out, through independent auditors, technical and fiduciary IBRD-80930 audits of subprojects covering the period of one Not complied with No Change semester (or any other period agreed with the Bank) and provided to the Bank no later than 45 days after the end of such period. | Frequency :SemiAnnual The World Bank AR Socio-Economic Inclusion In Rural Areas (P106685) Finance Agreement: Report of any incident or accident (Section I.F of Schedule 2) | Description: Notify the Bank of any incident or accident related to or having an IBRD-80930 impact on the Project which has, or is likely to have, a Expected soon New significant adverse effect on the environment, the affected communities, the public or workers | . Frequency: CONTINUOS The World Bank AR Socio-Economic Inclusion In Rural Areas (P106685) . Results framework COUNTRY: Argentina AR Socio-Economic Inclusion In Rural Areas Project Development Objectives(s) To increase the socio-economic inclusion of rural poor (small producers, indigenous people, and rural workers) by: (a) strengthening the planning and management capacity to achieve poverty-reduction goals; (b) improving their access to communityinfrastructure and servi a new model for developing sustainable access to markets. Project Development Objective Indicators by Objectives/ Outcomes RESULT_FRAME_TBL_PDO Indicator Name DLI Baseline Intermediate Targets 1 2 3 4 5 To increase the socio-economic inclusion of the rural poor. Community organizations functional 12 months after 0.00 subproject completion (Number) Action: This indicator has been Revised Rural investment subprojects that meet at 0.00 130.00 240.00 least 75% of the expected results (Number) Action: This indicator has been Revised Increase in volume of sales of the organizations 0.00 30.00 30.00 participating in Productive Alliances (Percentage) Action: This indicator has been Revised Rural Investment and Productive Alliance subprojects operational 0.00 and/or maintained 12 months after their completion. (Percentage) Action: This indicator has been Revised The World Bank AR Socio-Economic Inclusion In Rural Areas (P106685) RESULT_FRAME_TBL_PDO Indicator Name DLI Baseline Intermediate Targets 1 2 3 4 5 Direct project beneficiaries 0.00 41,296.00 50,000.00 (Number) Action: This indicator has been Revised Female beneficiaries 0.00 (Percentage) Action: This indicator has been Revised Beneficiaries of community subprojects 0.00 (Number) Action: This indicator is New Beneficiaries of subprojects of 0.00 indigenous communities (Number) Action: This indicator is New Beneficiaries of Productive Alliances 0.00 (Number) Action: This indicator is New PDO Table SPACE Intermediate Results Indicators by Components RESULT_FRAME_TBL_IO Indicator Name DLI Baseline Intermediate Targets 1 2 3 4 5 Component 1: Capacity Development Community organizations strengthened by the Project 0.00 (Number) Action: This indicator has been Revised The World Bank AR Socio-Economic Inclusion In Rural Areas (P106685) RESULT_FRAME_TBL_IO Indicator Name DLI Baseline Intermediate Targets 1 2 3 4 5 Subproject proposals considered eligible for financing (over total 0.00 70.00 70.00 number of proposal presented) (Percentage) Action: This indicator has been Revised Component 2: Rural Livelihood Community Subprojects 0.00 127.00 210.00 completed (Number) Action: This indicator has been Revised Community Subprojects 0.00 approved (Number) Action: This indicator is New Community Subprojects with first disbursement 0.00 (Number) Action: This indicator is New Community Subprojects 0.00 fully disbursed (Number) Action: This indicator is New Indigenous Peoples Community Subprojects 0.00 54.00 90.00 completed (Number) Action: This indicator has been Revised Indigenous Peoples community Subprojects 0.00 approved (Number) Action: This indicator is New Indigenous Peoples 0.00 community Subprojects The World Bank AR Socio-Economic Inclusion In Rural Areas (P106685) RESULT_FRAME_TBL_IO Indicator Name DLI Baseline Intermediate Targets 1 2 3 4 5 with first disbursement (Number) Action: This indicator is New Indigenous Peoples community Subprojects 0.00 fully disbursed (Number) Action: This indicator is New Families benefited with at least one Rural Investment Subproject (of which % of 0.00 female-headed family and youth-headed families) (Number) Action: This indicator has been Revised Female-headed families benefiting from the 0.00 project (Number) Action: This indicator has been Marked for Deletion Youth-headed families benefiting from the 0.00 project (Number) Action: This indicator has been Marked for Deletion Component 3: Access to Markets Productive Alliances 0.00 21.00 40.00 completed (Number) Action: This indicator has been Revised Productive alliances 0.00 approved (Number) The World Bank AR Socio-Economic Inclusion In Rural Areas (P106685) RESULT_FRAME_TBL_IO Indicator Name DLI Baseline Intermediate Targets 1 2 3 4 5 Action: This indicator is New Productive alliances with first disbursement 0.00 (Number) Action: This indicator is New Productive alliances fully 0.00 disbursed (Number) Action: This indicator is New Producer families linked to markets through productive 0.00 alliances (Number) Action: This indicator has been Revised Component Three - Indicator 3: Productive Alliances capable of starting 0.00 50.00 60.00 65.00 70.00 75.00 a second productive cycle without financial support (Number) Action: This indicator has been Marked for Deletion Component 4: Project Management (Action: This Component is New) Grievances registered related to delivery of project benefits that are 0.00 addressed within 30 days (Percentage) Rationale: Action: This indicator is Citizen engagement indicator. New IO Table SPACE The World Bank AR Socio-Economic Inclusion In Rural Areas (P106685)