The World Bank Socio-economic Reintegration Project in Southern Thailand (P170730) REPORT NO.: RES40564 RESTRUCTURING PAPER ON A PROPOSED PROJECT RESTRUCTURING OF SOCIO-ECONOMIC REINTEGRATION PROJECT IN SOUTHERN THAILAND APPROVED ON NOVEMBER 14, 2019 TO HILAL AHMAR FOUNDATION SOCIAL EAST ASIA AND PACIFIC Regional Vice President: Victoria Kwakwa Country Director: Achim Fock Regional Director: Benoit Bosquet Practice Manager/Manager: Susan Shen Task Team Leader(s): Pamornrat Tansanguanwong, Patrick John Barron The World Bank Socio-economic Reintegration Project in Southern Thailand (P170730) ABBREVIATIONS AND ACRONYMS CB Community Beneficiary EA Executing Agency HAF Hilal Ahmar Foundation IPB Individual Project Beneficiary ISR Implementation Status and Results Report PDO Project Development Objective RTG Royal Thai Government TSSA Thai Social Security Act The World Bank Socio-economic Reintegration Project in Southern Thailand (P170730) BASIC DATA Product Information Project ID Financing Instrument P170730 Investment Project Financing Original EA Category Current EA Category Approval Date Current Closing Date 14-Nov-2019 31-Dec-2020 Organizations Borrower Responsible Agency Hilal Ahmar Foundation Hilal Ahmar Foundation 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 the project is to assist the government in piloting an enhanced socio-economic reintegration process for selected former combatants. The World Bank Socio-economic Reintegration Project in Southern Thailand (P170730) The project will pilot a new approach to reintegration with a focus on social and economic measures, and with inclusive and transparent delivery modalities. The aim of the Pilot is to test new approaches and civilian implementation modalities that should improve the socio-economic reintegration experience of former combatants. If the project is deemed successful, the government will have at its disposal a set of social and economic support processes, and an implementation arrangement with systems and procedures that it can draw upon in the future. At the same time, would-be former combatants will have better prospects for a viable return to civilian livelihoods, a clearer understanding of reintegration support they can expect, and a better understanding of how and by whom it will be delivered. OPS_TABLE_PDO_CURRENTPDO Summary Status of Financing Net TF Approval Signing Effectiveness Closing Commitment Disbursed Undisbursed TF-B0231 14-Nov-2019 15-Nov-2019 15-Nov-2019 31-Dec-2020 1.35 .50 .85 Policy Waiver(s) Does this restructuring trigger the need for any policy waiver(s)? No I. PROJECT STATUS AND RATIONALE FOR RESTRUCTURING Background 1. The development objective of the project is to assist the government in piloting an enhanced socio-economic reintegration process for selected former combatants. It is financed with support from the Korea Trust Fund to Support Transitions and aims to pilot a new approach to reintegration with a focus on social and economic measures, and with inclusive and transparent delivery modalities. 2. The grant No. TF-B0231 was approved on November 14, 2019 and became effective on November 15, 2019. The grant is financed by a small RETF of 1.35 million and is implemented by the Hilal Ahmar Foundation (HAF). 3. This restructuring paper seeks the Country Director (CD) approval for the addition of three expenditure items under Operating Costs. Project Status The World Bank Socio-economic Reintegration Project in Southern Thailand () 4. As per the projects first Implementation Status and Results Report (ISR) issued in February 2020, the project is on track and progress remains steady. The progress towards achievement of the PDO and the overall implementation progress since effectiveness have been rated moderately satisfactory and satisfactory respectively. The project’s disbursement rate is 37 percent as of end-January 2020. 5. The executing agency, Hilal Ahmar Foundation, continues to make progress by recruiting the necessary staff/consultants, as outlined in the procurement plan and training is ongoing on key aspects of the project including i) finance, procurement and disbursement procedure; ii) basic psychosocial and behavioral screening; iii) how to collect and manage the socio-economic and community perception surveys. The 200 Individual Project Beneficiaries (IPB) and 16 communities in 8 sub-districts have been selected. 6. The project is in full compliance with safeguards policies and with the legal covenants. Rationale for restructuring 7. The restructuring responds to a request from the HAF, to clearly include three expenditure items in the “other reasonable expenditures directly associated with implementation of Project activities” of the Operating Cost section of the grant agreement. The three expenditure items include: 1. Recipient’s social security contributions to their project consultants according to the Thai Social Security Act; 2. Project staff and consultants’ insurance - this cost covers accident insurance for project staff/consultants who work in conflict-affected areas; and 3. Project management fee. The rationale for the inclusion is that these expenditures are necessary especially for staff to implement the project in conflict-affected areas according to the RTG law and with accident insurance coverage and compensation. The Thai Social Security Act also requires that employers contribute funds for social security for staff and consultants. II. DESCRIPTION OF PROPOSED CHANGES 8. No changes will be made to the overall PDO, components and overall project. Three expenditure categories will be added under Operating Costs within the grant agreement. The three expenditure items include: 1. Recipient’s social security contributions to their project consultants according to the Thai Social Security Act; 2. Project staff and consultants’ insurance - this cost covers accident insurance for project staff/consultants who work in conflict-affected areas; and 3. Project management fee. 9. The project closing date remains December 31, 2020. The World Bank Socio-economic Reintegration Project in Southern Thailand () III. SUMMARY OF CHANGES Changed Not Changed Other Change(s) ✔ Implementing Agency ✔ Project's Development Objectives ✔ Results Framework ✔ Components and Cost ✔ Loan Closing Date(s) ✔ Cancellations Proposed ✔ 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 ✔ IV. DETAILED CHANGE(S) The executing agency has sumbitted a request on January 26, 2020, for the Bank to clearly include three expenditure items in the “other reasonable expenditures directly associated with implementation of Project activities” of the Operating Cost section of the grant agreement. The three expenditure items include: 1. Recipient’s social security contributions to their project consultants according to the Thai Social Security Act; 2. Project staff and consultants’ insurance - this cost covers accident insurance for project staff/consultants who work in conflict-affected areas; and 3. Project management fee.