The World Bank Himalayan University Consortium Grant (P155851) REPORT NO.: RES34124 PROJECT PAPER ON A PROPOSED PROJECT RESTRUCTURING AND ADDITIONAL FINANCING OF HIMALAYAN UNIVERSITY CONSORTIUM GRANT APPROVED ON DECEMBER 16, 2016 TO INTERNATIONAL CENTRE FOR INTEGRATED MOUNTAIN DEVELOPMENT (ICIMOD) WATER SOUTH ASIA Regional Vice President: Hartwig Schafer Country Director: Hans Timmer Senior Global Practice Director: Jennifer Sara Practice Manager/Manager: Michael Haney Task Team Leader: Ahmed Shawky M. Abdel Ghany The World Bank Himalayan University Consortium Grant (P155851) ABBREVIATIONS AND ACRONYMS HIMALDOC The Himalayan Document Centre HKH The Hindu Kush Himalayan HUC Himalayan University Consortium ICIMOD International Centre for Integrated Mountain Development IT Information Technology M&E Monitoring and Evaluation PDO Project Development Objective RP Regional Programme SAWI South Asia Water Initiative UArctic University of the Arctic The World Bank Himalayan University Consortium Grant (P155851) BASIC DATA Product Information Project ID Financing Instrument P155851 Investment Project Financing Original EA Category Current EA Category Not Required (C) Not Required (C) Approval Date Current Closing Date 16-Dec-2016 31-Dec-2019 Organizations Borrower Responsible Agency ICIMOD ICIMOD Financing (in USD Million) FIN_SUMM_PUB_TBL SUMMARY Total Project Cost 0 Total Financing 0 Financing Gap 0 DETAILS -NewFin3 Project Development Objective (PDO) Original PDO The development objective of this grant is to strengthen partnerships of research institutions in the Hindu Kush Himalayan region working on issues of significance to regional water resources management. OPS_TABLE_PDO_CURRENTPDO The World Bank Himalayan University Consortium Grant (P155851) Summary Status of Financing Net TF Approval Signing Effectiveness Closing Commitment Disbursed Undisbursed TF-A4131 16-Dec-2016 23-Jan-2017 23-Jan-2017 31-Dec-2019 1.02 .97 .05 Policy Waiver(s) Does this restructuring trigger the need for any policy waiver(s)? No I. PROJECT STATUS AND RATIONALE FOR RESTRUCTURING 1. This paper proposes a restructure with changes to the results framework, components and cost, and disbursement estimates, as well as seeking additional financing of US$ 200,000 from the South Asia Water Initiative (SAWI) Phase II Trust Fund financed Himalayan University Consortium (HUC) Grant number TF0A4131. 2. Approval for Restructuring is sought for: (a) The addition of a new project component to provide a Secretariat for management and research coordination in the Indus Basin to deepen partnerships of research institutions in the Hindu Kush Himalayan (HKH) region working on regional water resources management and amendment of the Grant Agreement accordingly; (b) Result framework will be modified to include a change to an existing intermediate indicator and one additional intermediate indicator. 3. Additional financing in an amount of US$200,000 financed by SAWI (same source as original) will be used entirely to finance a new activity under the HUC (see para 2, (a), and para 10), and disbursement estimates adjusted accordingly. A. Project Status 4. Project Objectives and Description: The objective of the Project is to build a sustainable partnership of research institutions in the Hindu Kush Himalayan (HKH) Region working on issues of significance to regional water resources management. The Project consists of the following components: (i) Strengthening the Network of Research Institutions. Broadening the network and intensifying the interactions among research institutions in the HKH Region for knowledge and information exchange, including through the establishment of a joint web-based platform and study tours between members and/or potential members within and outside the South Asia region and strengthening the capacity of the HUC Secretariat. (ii) Building Capacity for Collaborative Research. Building the capacity of researchers to engage, exchange knowledge and conduct joint research initiatives to strengthen the synergies among HUC institutions by building up collective expertise on water resources management. The World Bank Himalayan University Consortium Grant (P155851) 5. The HUC Grant was signed and declared effective on January 23, 2017. Most of the grant funded activities have been undertaken by the Recipient, the International Centre for Integrated Mountain Development (ICIMOD). All planned activities have been initiated and are nearing completion, and most of the end targets of the indicators have been met (except two intermediate indicators), and some have exceeded the end target. The number of HUC members has increased from 33 to 62. Fourteen visiting professors and researchers have been supported by the grant and an interactive website with searchable database and E-digest have been established. 6. Progress towards achieving the Project Development Objective (PDO) and overall implementation progress was rated moderately satisfactory in the last Implementation Status and Results Report (ISR). The PDO remains achievable, and the performance of the Project Management Unit (PMU), the HUC Secretariat housed at ICIMOD, has been satisfactory. The project does not have an overdue audit report. B. Rationale for Restructuring 7. Implementation of the grant to date, in accordance with PDO indicators, has contributed to establishing enhanced capacity for collaborative research and strengthened partnership between research institutions in the HKH Region working on issues of significance to regional water resources management. Building upon this foundation, the development effectiveness of the HUC Grant will be further strengthened by adding an additional component to provide a secretariat for research coordination on the Indus Basin, which would focus on strengthening research partnerships, improving dissemination to and exchange with policy makers and understanding and assessing the impact of climate change in the Indus Basin. The secretariat would provide an anchor for the Indus Basin Joint Research Program that has been developed by research institutions from all four Indus Basin riparian countries (Afghanistan, China, India and Pakistan) and would support fundraising efforts to realize and sustain this multi- million-dollar research program. II. DESCRIPTION OF PROPOSED CHANGES 8. The proposed restructuring and additional financing will: (i) raise the total grant amount to US Dollars 1,220,000; (ii) add a new component; (iii) adjust disbursement arrangements (associated with the proposed additional financing); and (iv) make changes to the result framework. This is the fourth restructuring of the project (the first restructuring was to extend the closing date to June 30, 2018, the second one was to extend the closing date to August 31, 2018, and the third one was to extend the closing date to December 31, 2019). 9. The new third component is to be included through this restructuring as follows: “Research coordination in the Indus Basin. Supporting the establishment and operationalization of a secretariat within ICIMOD to facilitate research coordination in the Indus Basin, responsible for, inter alia, research coordination activities, organization of annual meetings and knowledge exchange forums, and outreach activities.” This new component will be financed using the additional financing in the amount of US$200,000. 10. The proposed new Secretariat under component (iii) will enhance the ongoing project in a number of ways: Firstly, it will improve research coordination and quality control for the Indus Basin Joint Research Program by developing clear standards for future research support. Secondly, it will strengthen the link to policy-making through annual meetings and an Indus Basin Knowledge Forum, a critical aspect of research is to translate into policy improvements. A third critical function of the Secretariat will be pro-active fundraising to implement the Indus Basin Joint Research Program. The World Bank Himalayan University Consortium Grant (P155851) 11. The performance indicators, as recorded in Section 2.04(b) of the Annex to the Grant Agreement, are to be revised through this restructuring. The three original Project Development Objective Indicators are unchanged ((i) through (iii) below) and one new Intermediate Indicator ((x) below) has been added to the six original Intermediate indicators. The performance indicators for the Project following the restructuring are as follows: Project Development Indicators (i) Number of universities/research institutions that actively participate in the HUC network; (ii) Interactive website with searchable databased, and E-digest established; (iii) Number of visiting professor/researchers mobilized to another institution; Intermediate Indicators (iv) Number of study tours arranged and conducted between institutions to broaden the network and intensify interactions; (v) Number of informal consultations held with IT and librarian teams of current and future member institutions to discuss information-sharing interests (vi) Number of staff within HUC Secretariat trained in program management; (vii) Number of International conferences on water research and management is organized in the region; (viii) Total number of researchers and professionals trained throughout 10-day field school and 2-week intensive program; and (ix) Number of proposals prepared for collaborative research projects. (x) Number of Indus Basin research partnership meetings. 12. The disbursement arrangements for the Project are to be revised through this restructuring to include a new disbursement category (2) for the new activities as shown below. The World Bank Himalayan University Consortium Grant (P155851) Category Amount of the Grant Percentage of Expenditures to be allocated Financed(inclusive of Taxes) (expressed in USD) (1) Goods, consultants’ services, Training and Incremental 1,020,000 100% Operating Costs under Parts (i) and (ii) of the Project (2) Goods, consultants’ services, 100% Training and Incremental Operating Costs under Part (iii) 200,000 (Eligible to be financed from the date of of the Project counter signature of the Amendment Letter) TOTAL AMOUNT 1,220,000 13. The application of the procurement policies “Guidelines: Procurement of Goods, Works and Non-Consulting Services under IBRD Loans and IDA Credits and Grants by World Bank Borrowers”, dated January 2011, revised in July 2014; and “Guidelines: Selection and Employment of Consultants under IBRD Loans and IDA Credits and Grants by World Bank Borrowers”, dated January 2011, revised in July 2014 – will be retained to allow for the continuation of seamless implementation arrangements for the AF. Most of the contracts to be financed under the AF are of small value and simple in nature and Guidelines will be able to sufficiently regulate the procurement processes for these contracts with the procurement policy that has existed to date for this grant. Applying a new procurement policy may confuse the existing and potential bidders. 14. There will be no change to the fund flow arrangements (advance and reimbursement method) that are already being followed for the disbursement of this grant. The current disbursement allocation and percentage of expenditure will not be changed. A new disbursement category will be added for the additional financing (see Table above). III. SUMMARY OF CHANGES Changed Not Changed Project's Development Objectives ✔ Results Framework ✔ Components and Cost ✔ Additional Financing Proposed ✔ Disbursements Arrangements ✔ Disbursement Estimates ✔ The World Bank Himalayan University Consortium Grant (P155851) Implementing Agency ✔ Loan Closing Date(s) ✔ Cancellations Proposed ✔ Reallocation between Disbursement Categories ✔ 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_PDO_TABLE PROJECT DEVELOPMENT OBJECTIVE Current PDO The development objective of this grant is to strengthen partnerships of research institutions in the Hindu Kush Himalayan region working on issues of significance to regional water resources management. Proposed New PDO The development objective of this project is to build a sustainable partnership of research institutions in the Hindu Kush Himalayan region working on issues of significance to regional water resources management. OPS_DETAILEDCHANGES_RESULTS_TABLE RESULTS FRAMEWORK Project Development Objective Indicators PDO_IND_TABLE Number of universities/research institutions that actively participate in the HUC network Unit of Measure: Number Indicator Type: Custom Baseline Actual (Current) End Target Action Value 33.00 62.00 40.00 No Change The World Bank Himalayan University Consortium Grant (P155851) Date 28-Oct-2016 15-Aug-2018 31-Dec-2019 Interactive website with searchable database, and E-digest established Unit of Measure: Yes/No Indicator Type: Custom Baseline Actual (Current) End Target Action Value No Yes Yes No Change Date 28-Oct-2016 15-Aug-2018 31-Dec-2019 Number of visiting professor/researchers mobilized to another institution Unit of Measure: Number Indicator Type: Custom Baseline Actual (Current) End Target Action Value 0.00 14.00 4.00 No Change Date 28-Oct-2016 15-Aug-2018 31-Dec-2019 Intermediate Indicators IO_IND_TABLE Study tours arranged and conducted between institutions to broaden the network and intensify interactions Unit of Measure: Number Indicator Type: Custom Baseline Actual (Current) End Target Action Value 0.00 5.00 2.00 No Change Date 28-Oct-2016 15-Aug-2018 31-Dec-2019 Informal consultations held with IT and librarian teams of current and future member institutions to discuss information-sharing interests Unit of Measure: Number Indicator Type: Custom Baseline Actual (Current) End Target Action Value 0.00 24.00 35.00 No Change Date 28-Oct-2016 15-Aug-2018 31-Dec-2019 Staff within the HUC Secretariat trained in Program Management Unit of Measure: Number Indicator Type: Custom The World Bank Himalayan University Consortium Grant (P155851) Baseline Actual (Current) End Target Action Value 0.00 3.00 3.00 No Change Date 28-Oct-2016 15-Aug-2018 31-Dec-2019 International Conference on water research and management is organized in the region Unit of Measure: Number Indicator Type: Custom Baseline Actual (Current) End Target Action Value 0.00 1.00 2.00 Revised Date 28-Oct-2016 15-Aug-2018 31-Dec-2019 Total Number of Researchers and Professionals Trained through the 10-day field school and 2-week intensive program Unit of Measure: Number Indicator Type: Custom Baseline Actual (Current) End Target Action Value 0.00 32.00 33.00 No Change Date 28-Oct-2016 15-Aug-2018 31-Dec-2019 Number of proposals prepared for collaborative research projects Unit of Measure: Number Indicator Type: Custom Baseline Actual (Current) End Target Action Value 0.00 2.00 2.00 No Change Date 28-Oct-2016 15-Aug-2018 31-Dec-2019 Number of Indus Basin research partnership meetings Unit of Measure: Number Indicator Type: Custom Baseline Actual (Current) End Target Action Value 0.00 0.00 2.00 New Date 18-Sep-2018 18-Sep-2018 31-Dec-2019 The World Bank Himalayan University Consortium Grant (P155851) OPS_DETAILEDCHANGES_COMPONENTS_TABLE COMPONENTS Current Current Proposed Proposed Cost Action Component Name Component Name Cost (US$M) (US$M) Enhanced partnership of Strengthening the Network of research institutions in the HKH 0.36 Revised 0.36 Research Institutions. Region Enhanced capacity for Building Capacity for collaborative research in the 0.66 Revised 0.66 Collaborative Research. region Research coordination in the 0.00 New 0.20 Indus Basin TOTAL 1.02 1.22 OPS_DETAILEDCHANGES_ADDITIONAL_FINANCING_TABLE ADDITIONAL FINANCING Source Currency Amount USD Equivalent South Asia Water Initiative USD 200,000.00 200,000.00 (SAWI)(SAWI) Existing Net Commitment USD Amount 1,020,000.00 Total 1,220,000.00 OPS_DETAILEDCHANGES_DISBURSEMENT_TABLE DISBURSEMENT ESTIMATES Change in Disbursement Estimates Yes Year Current Proposed 2017 0.00 0.00 2018 0.00 970,000.00 2019 0.00 250,000.00 2020 0.00 0.00 2021 0.00 0.00 2022 0.00 0.00 2023 0.00 0.00 The World Bank Himalayan University Consortium Grant (P155851)