The World Bank Local Government Project (SLGP) (P095232) REPORT NO.: RES29621 DOCUMENT OF THE WORLD BANK RESTRUCTURING PAPER ON A PROPOSED PROJECT RESTRUCTURING OF LOCAL GOVERNMENT PROJECT (SLGP) APPROVED ON JANUARY 20, 2011 TO MINISTRY OF HOUSING AND URBAN DEVELOPMENT SOCIAL, URBAN, RURAL AND RESILIENCE GLOBAL PRACTICE AFRICA Regional Vice President: Makhtar Diop Country Director: Paul Noumba Um Senior Global Practice Director: Ede Jorge Ijjasz-Vasquez Practice Manager/Manager: Bernice K. Van Bronkhorst Task Team Leader: Asmita Tiwari The World Bank Local Government Project (SLGP) (P095232) I. BASIC DATA Product Information Project ID Financing Instrument P095232 Specific Investment Loan Original EA Category Current EA Category Partial Assessment (B) Partial Assessment (B) Approval Date Current Closing Date 20-Jan-2011 30-Jun-2019 Organizations Borrower Responsible Agency Ministry of Housing and Urban Development Project Support Team - SLGP Processing (this section will be automatically removed by the system before the paper is disclosed) Form Type Based on the proposed changes this Restructuring type is Short Restructuring Paper Level 2 Decision Authority CD Decision Project Development Objective (PDO) Original PDO The project development objective is assist the Kingdom of Swaziland to develop institutionally strengthened rural local governments (Tinkhundla) and urban local governments. Current PDO The new PDO is to assist the Borrower to develop institutionally strengthened rural local governments (Tinkhundla), ULGs, and to improve the Borrower's capacity to respond promptly and effectively to an Eligible Crisis or Emergency. Summary Status of Financing Ln/Cr/Tf Approval Signing Effectiveness Closing Net Disbursed Undisbursed Commitment IBRD-80030 20-Jan-2011 14-Dec-2011 12-Mar-2012 30-Jun-2019 26.90 23.61 3.29 The World Bank Local Government Project (SLGP) (P095232) Policy Waiver(s) Does this restructuring trigger the need for any policy waiver(s)? No II. SUMMARY OF PROJECT STATUS AND PROPOSED CHANGES Objective of proposed restructuring. The proposed restructuring is in response to the Government of Swaziland's request dated August 9, 2017 to reallocate funds between project components. Due to some savings realized in some of the contracts, the Government is requesting that these resources be allocated to ongoing activities. The proposed reallocation will allow the project to support implementation of more infrastructure by local governments, and closing the financial gap on some ongoing activities, thereby increasing the number of beneficiaries. It will also help fully disburse project funds by its closing date of June 30, 2019. Project status. As per last supervision mission (June 2017), while the overall disbursement improved from 63% in November 2016 to 81% in June 2017, the most important achievement has been on local government capacity building. The project has made significant improvements and is on track towards meeting its development objective which focuses principally on institutional strengthening of local governments by supporting enhanced capacity to deliver local services and infrastructure. The project, at the early beginning focused on honing in the important procedures and processes of ensuring capacity building of participating local governments, which are now bringing benefits to the local governments. During past missions, many stakeholders mentioned how the project has helped in improving community involvement in project selection and implementation. The project has already exceeded its end-of-project target of 12,000 beneficiaries (actual beneficiaries as of June, 2017 are 14,000). A good number of physical works have been completed on time by both Urban Local Governments (ULGs) and Tinkhundlas (rural local governments). Some example of completed/ongoing works include which were visited by earlier Bank missions include (i) Lomahasha Inkhundla: Mafucula Market and Tsambokhulu sports field; (ii) Matsapha Town Council: Tubungu Road Project, 2nd and 3rd Avenues, and Storm water drainage (below the Swazi Brewery); (iii) Ngwenya Town Board: Ngwenya village roads and drainages; and (iv) Municipal City of Mbabane: Pholinjane, Mphakatsi, Dzeliwe, Dabede streetlights, Ncoboza street and Gwamile roads. The June 2017 supervision mission noted that most sub-projects have been complete good conditions. Progress in a few sports grounds has been delayed due to challenges with water logged nature of sites which require further supervision and work to ensure proper storm water run-off management. The Project Support Team is following up with Local Governments through increased site visits and monthly/bi-weekly project status reports. The mission recommended that the PST and Microproject Programs (MPP) continue to conduct regular visits to urban and rural local government to check the status of implementation of the contracts and sensitize them on the process of submission of statements of actual expenditures and respective supporting documents. Previous restructuring and change in original PDO. An earlier amendment to loan agreement was approved in December 2016 for the following changes: (i) extend the project closing date until June 30, 2019; (ii) remove the additional 20% counterpart funding it pays for sub-projects supported by the SLGP and carried out by the local governments; (iii) raising up the disbursement ceiling to $12 million; and (iv) the addition of the Contingent Emergency Response Component (CERC) as the fourth component of the project. The inclusion of the CERC was required to be reflected in a revised Project Development Objective (PDO. The revised PDO now include the following additional objective: “to improve th e Borrower’s capacity to respond promptly and effectively to an Eligible Crisis or Emergency”. III. DETAILED CHANGES REALLOCATION BETWEEN DISBURSEMENT CATEGORIES Current Current Actuals + Proposed Disbursement % Ln/Cr/TF Expenditure Allocation Committed Allocation (Type Total) Category Current Proposed IBRD- GDS/WKS/CS- 3,300,000.00 1,286,565.62 4,025,000.00 100.00 100.00 80030-001 PART A (i) Currency: GDS/WKS/CS- USD 11,000,000.00 7,794,160.96 15,900,000.00 100.00 100.00 PART B (i) CS- PART A(ii), 12,532,750.00 6,115,337.66 6,907,750.00 100.00 100.00 B(ii),C and TRNG Emergency Exp. 0.00 0.00 0.00 100.00 100.00 Pt D Total 26,832,750.00 15,196,064.24 26,832,750.00