The World Bank LR Smallholder Tree Crop Revitalization Support Project (P113273) REPORT NO.: RES34169 DOCUMENT OF THE WORLD BANK RESTRUCTURING PAPER ON A PROPOSED PROJECT RESTRUCTURING OF LR SMALLHOLDER TREE CROP REVITALIZATION SUPPORT PROJECT APPROVED ON JUNE 5, 2012 TO MINISTRY OF FINANCE AND DEVELOPMENT PLANNING AGRICULTURE AFRICA Regional Vice President: Hafez M. H. Ghanem Country Director: Henry G. R. Kerali Senior Global Practice Director: Juergen Voegele Practice Manager/Manager: Marianne Grosclaude Task Team Leader: Abimbola Adubi The World Bank LR Smallholder Tree Crop Revitalization Support Project (P113273) I. BASIC DATA Product Information Project ID Financing Instrument P113273 Investment Project Financing Original EA Category Current EA Category Partial Assessment (B) Partial Assessment (B) Approval Date Current Closing Date 05-Jun-2012 30-Nov-2018 Organizations Borrower Responsible Agency Ministry Of Finance and Development Planning Ministry of Agriculture Project Development Objective (PDO) Original PDO “To increase access to finance, inputs, technologies and markets for smallholder tree crop farmers in Liberia, and to develop a long term development program for the tree crops sector” Summary Status of Financing Net Ln/Cr/Tf Approval Signing Effectiveness Closing Commitment Disbursed Undisbursed IDA-51010 05-Jun-2012 18-Jul-2012 13-May-2013 30-Nov-2018 15.00 13.31 .50 Policy Waiver(s) Does this restructuring trigger the need for any policy waiver(s)? No II. SUMMARY OF PROJECT STATUS AND PROPOSED CHANGES The World Bank LR Smallholder Tree Crop Revitalization Support Project (P113273) Project Status. Progress towards the project development objective is currently rated as moderately satisfactory and overall implementation progress is rated as moderately satisfactory. As of September 21, 2018, 5828 hectares (ha) of tree crop farms have been rehabilitated, replanted, or planted (end target 6056 hectares); average yield of targeted tree crops is 0.54 (end target 1.30); 3,750 smallholder farmers are direct beneficiaries, of which 900 are female (end target 5,000 of which 750); and 3,750 smallholder farmers are with access to finance, inputs, market, and technologies (end target 3,025).All activities have been completed, except for the tree crops master plans and project evaluations which are expected to be completed by November 29 Disbursement is at 96% and all funds are expected to be disbursed by the project closing date of November 30, 2018. Under the cocoa rehabilitation program, the project has successfully introduced two models to rehabilitate and/or revitalize cocoa and coffee plantations. The total number of beneficiary farmers is 1,759 farmers and a total of 1,943 ha of cocoa and 36 ha coffee farms were rehabilitated. Field work and technical support continued in Dube Plantation for the rehabilitation of 600 ha of oil palm plantation. As of June 2018, 100 ha was under-brushed and 40 ha cleared and replanted. Also, ten (10) ha are under cultivation for food crops. Renovation of warehouses have been completed while the structure for the Freedom Mills was redesigned and built for more equipment space. The processing operation using the motorized freedom mill for fresh fruit bunches earned the cooperative a total of US$2,019.23 (L$315,000) from March 2018 to June 2018. Work with the out-growers in Grand Bassa County has progressed. Out of the 54 cooperative members, 34 have obtained land development certificates and have completed under brushing of 42.6 ha while all 34 farmers have completed replanting of 34 hectares of oil palm in June 2017. The rubber support program in Montserrado County through MARCO and in Margibi County by Salala Rubber Corporation have also reached a total of 400 ha for re-planting. 150 farmers received have received long-term credit which has been pegged technically by Concessionaires and Afriland First Bank Liberia to a minimum of US$7,000 for the period from planting to tapping. For the 2017 planting season, 181 new smallholder rubber farmers were identified and selected based on set criteria and their fields have been replanted. Proposed Changes. Given the increased cost of consultant services, the current allocations in some categories will not be sufficient to finalize the remaining activities. Therefore, a re-allocation between disbursement categories is necessary for the project to finalize the remaining activities before the closing date. The reallocation consists in a reduction in Expenditure Categories 3, 5, and 7 and an increase in Expenditure Categories 1, 2, 4, and 6. The re- allocation between disbursement categories will enable the achievement of the key project outcomes. III. DETAILED CHANGES REALLOCATION BETWEEN DISBURSEMENT CATEGORIES Current Current Actuals + Proposed Disbursement % Ln/Cr/TF Expenditure Allocation Committed Allocation (Type Total) Category The World Bank LR Smallholder Tree Crop Revitalization Support Project (P113273) Current Proposed IDA-51010- CIVIL WORKS 280,614.00 226,053.68 415,380.50 100.00 100.00 001 Currency: GOODS EXCEPT XDR UNDER CAT 4,5 548,474.00 569,951.53 597,193.47 100.00 100.00 &6 CON SER &TRG EXCEPT UNDER 5,971,229.00 5,330,413.74 5,754,702.62 100.00 100.00 CAT 4 & 5 SMALLHOLDERS SUB GRANT 1,546,214.00 1,594,065.59 1,630,141.93 100.00 100.00 UNDER PART 1 SMALLHOLDERS SUB CREDIT 189,911.00 44,198.38 80,495.47 100.00 100.00 UNDER PART1 INCREMENTAL OPERATING 410,292.00 448,759.66 531,706.37 100.00 100.00 COSTS PPF 753,266.00 690,379.64 690,379.64 REFINANCING UNALLOCATED 0.00 0.00 0.00 Total 9,700,000.00 8,903,822.22 9,700,000.00