The World Bank Malawi Strategic Program for Climate Resilience (P163245) REPORT NO.: RES37293 RESTRUCTURING PAPER ON A PROPOSED PROJECT RESTRUCTURING OF MALAWI STRATEGIC PROGRAM FOR CLIMATE RESILIENCE APPROVED ON NOVEMBER 8, 2017 TO THE REPUBLIC OF MALAWI ENVIRONMENT & NATURAL RESOURCES AFRICA Regional Vice President: Hafez M. H. Ghanem Country Director: Bella Bird Senior Global Practice Director: Karin Erika Kemper Practice Manager/Manager: Iain G. Shuker Task Team Leader: Nigel Ross Hughes, Francis Samson Nkoka The World Bank Malawi Strategic Program for Climate Resilience (P163245) ABBREVIATIONS AND ACRONYMS CIF Climate Investment Funds EA Environmental Assessment GOM Government of the Republic of Malawi MoFPED Ministry of Finance, Economic Planning and Development MNRNM Ministry of Natural Resources, Energy and Mines PPCR Pilot Program for Climate Resilience PDO Project Development Objective SPCR Strategic Program for Climate Resilience TF Trust Fund The World Bank Malawi Strategic Program for Climate Resilience (P163245) 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 P163245 Investment Project Financing Original EA Category Current EA Category Approval Date Current Closing Date 08-Nov-2017 31-Aug-2019 Organizations Borrower Responsible Agency Ministry of Finance, Economic Planning and Development Ministry of Natural Resources, Energy and Mines Financing (in USD Million) FIN_SUMM_PUB_TBL SUMMARY Total Project Cost 0 Total Financing 0 Financing Gap 0 DETAILS -NewFin3 The World Bank Malawi Strategic Program for Climate Resilience (P163245) Project Development Objective (PDO) Original PDO The Project Development Objective (PDO) is to assist the Government of Malawi to prepare a national investment plan for climate resilience, strengthen institutional capacity and improve the analytical base for mainstreaming climate risks in policy and planning. OPS_TABLE_PDO_CURRENTPDO Summary Status of Financing Net TF Approval Signing Effectiveness Closing Commitment Disbursed Undisbursed TF-A5530 15-Nov-2017 23-Nov-2017 23-Nov-2017 31-Aug-2019 1.50 .45 1.05 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 Government of Malawi (GoM) was invited to participate in the Climate Investment Funds’ (CIF), Pilot Program for Climate Resilience (PPCR) in 2016. Through a highly consultative process the GoM prepared its Strategic Program for Climate Resilience (SPCR), which was endorsed by the CIF in December 2017. The SPCR describes Malawi’s climate vulnerabilities, relevant government institutions and policies, and identifies five potential investment projects for support through PPCR finance. 2. The project has been suffered from significant delays over the past 12 months which has been reflected in the assignment of Moderately Unsatisfactory for progress towards achievement of Project Development Objective and overall implementation progress ratings in the May 2019 Implementation Status & Results Report. However following establishment of the SPCR Secretariat in November 2018 good progress has been made in strengthening institutional capacity and developing the analytical base on climate resilience in Malawi. Key remaining activities under the project include completing the technical analytical work related to climate resilience in Malawi within the transport sector, fisheries, climate services and productive landscapes/watersheds. These studies are in line with the key challenges facing building resilience as identified in the Malawi SPCR and pipeline World Bank investments such as the Resilient Productive Landscapes Project (P167860) and the Inclusive Access for Rural Transformation Project (P169727). 3. The Ministry of Natural Resources, Energy and Mines and the Ministry of Finance and Economic Planning and Development have made good progress on initiating work on the Technical Studies on: a) Climate Resilient Integrated The World Bank Malawi Strategic Program for Climate Resilience (P163245) Watershed Management b) Climate Resilient Road Infrastructure, c) Opportunities to Modernize Malawi Climate Services and d) Impact of Climate Change on Fishery Ecosystems and Sustainable Fisheries Value Chains in Malawi. As of May 2019, the project team were finalizing the selection and initiation of the four selected contractors. B. Rationale for restructuring 4. The ongoing work on the analytical studies are important for GoM and World Bank investment strategies. However, the project has been beset by a series of delays which have hindered the initial steps of implementation. In November 2017 the project was extended from October 31, 2018 to August 31, 2019 due to the need to re-issue the grant agreement and disbursement letter following it being misplaced by GoM. Subsequently, the project suffered a 12-month delay due to ineligible expenses elsewhere in the Malawi portfolio making it impossible for the project to access funds to until the portfolio issues were resolved. These were resolved in November 2018 and the project started accessing funds in January 2019. However, this second delay – which was of no fault of the project itself – now means that it will be impossible to recruit consultants for the technical studies and have the studies (which have 6 to 12-month timescales) completed by the existing August 31, 2019 closing date. Hence, GoM has requested an extension of project closing date to June 30, 2020. II. DESCRIPTION OF PROPOSED CHANGES 5. This restructuring proposes to extend the closing date by ten months from August 31, 2019 to June 30, 2020. The results framework will be updated to reflect the new target dates in line with this extension. I. SUMMARY OF CHANGES Changed Not Changed Results Framework ✔ Loan Closing Date(s) ✔ Implementing Agency ✔ Project's Development Objectives ✔ Components and Cost ✔ Cancellations Proposed ✔ The World Bank Malawi Strategic Program for Climate Resilience (P163245) Additional Financing Proposed ✔ Reallocation between Disbursement Categories ✔ Disbursements Arrangements ✔ Disbursement Estimates ✔ Change in Overall Risk Rating ✔ Safeguard Policies Triggered ✔ EA category ✔ Legal Covenants ✔ Institutional Arrangements ✔ Financial Management ✔ Procurement ✔ Implementation Schedule ✔ Other Change(s) ✔ IV. DETAILED CHANGE(S) OPS_DETAILEDCHANGES_RESULTS_TABLE RESULTS FRAMEWORK Project Development Objective Indicators PDO_IND_TABLE SPCR developed and agreed by the Government of Malawi Unit of Measure: Yes/No Indicator Type: Custom Baseline Actual (Current) End Target Action Value No Yes Yes No Change Date 24-Jul-2017 31-Dec-2017 31-Dec-2017 Publication of studies on (i) lessons from ongoping cc projects, (ii) improved proviion of climate services, (iii)climate proofedtransport master plan,(iv) Climate variability on lake ecosystems Unit of Measure: Yes/No Indicator Type: Custom Baseline Actual (Current) End Target Action Value No No Yes Revised Date 24-Jul-2017 23-May-2019 30-Jun-2020 The World Bank Malawi Strategic Program for Climate Resilience (P163245) Intermediate Indicators IO_IND_TABLE Sectoral and technical assessments and studies completed on key resilience information gaps, including gender Unit of Measure: Number Indicator Type: Custom Baseline Actual (Current) End Target Action Value 0.00 0.00 5.00 Revised Date 24-Jul-2017 24-Apr-2019 30-Jun-2020 Consultative Engagement Process established for the development of the SPCR Unit of Measure: Number Indicator Type: Custom Baseline Actual (Current) End Target Action Value 1.00 2.00 2.00 No Change Date 24-Jul-2017 12-Dec-2017 31-Oct-2018 Investment priorities for improving climate resilience in priority areas are developed and include gender dimensions Unit of Measure: Yes/No Indicator Type: Custom Baseline Actual (Current) End Target Action Value No Yes Yes No Change Date 24-Jul-2017 12-Dec-2017 31-Oct-2018 OPS_DETAILEDCHANGES_LOANCLOSING_TABLE LOAN CLOSING DATE(S) Original Revised Proposed Proposed Deadline TF Status Closing Closing(s) Closing for Withdrawal Applications TF-A5530 Effective 31-Oct-2018 31-Aug-2019 30-Jun-2020 30-Oct-2020 Note to Task Teams: End of system generated content, document is editable from here.