The World Bank SN:Casamance Development Pole Project (P125506) REPORT NO.: RES27709 DOCUMENT OF THE WORLD BANK RESTRUCTURING PAPER ON A PROPOSED PROJECT RESTRUCTURING OF SN:CASAMANCE DEVELOPMENT POLE PROJECT APPROVED ON SEPTEMBER 25, 2013 TO MINISTRY OF ECONOMY AND FINANCE SOCIAL, URBAN, RURAL AND RESILIENCE GLOBAL PRACTICE AFRICA Regional Vice President: Makhtar Diop Country Director: Louise J. Cord Senior Global Practice Director: Ede Jorge Ijjasz-Vasquez Practice Manager/Manager: Jan Weetjens Task Team Leader: Nicolas Perrin, Najat Yamouri The World Bank SN:Casamance Development Pole Project (P125506) ABBREVIATIONS AND ACRONYMS ANRAC National Agency for the Reconstruction of Casamance (Agence Nationale pour la Relance des Activités Economiques et Sociales en Casamance) ARD Regional Development Agency (Agence Régionale de Développement) CDPP Casamance Development Pole Project DDR Disarmament, Demobilization and Reintegration IDA International Development Association IEPB Integrated Economic Platform of Bignona KPI Key Project Indicator LDP Local Development Plan M&E Monitoring and Evaluation NGO Non-Governmental Organization PDO Project Development Objective PLDP Participatory Local Development Project The World Bank SN:Casamance Development Pole Project (P125506) BASIC DATA Product Information Project ID Financing Instrument P125506 Investment Project Financing Original EA Category Current EA Category Partial Assessment (B) Partial Assessment (B) Approval Date Current Closing Date 25-Sep-2013 30-Jun-2019 Organizations Borrower Responsible Agency Project Implementation Unit (PIU),Steering Committee,Regional Development Agency - Ministry of Economy and Finance Ziguinchor,Regional Development Agency - Sedhiou,Regional Development Agency - Kolda Project Development Objective (PDO) Original PDO The Project Development Objectives (PDO) are to: (i) enhance the agricultural productivity of youth and female farmers for selectedcrops; and (ii) improve transport linkages in isolated rural communities in targeted areas of the Casamance region. Summary Status of Financing Net Ln/Cr/Tf Approval Signing Effectiveness Closing Commitment Disbursed Undisbursed IDA-53050 25-Sep-2013 22-Nov-2013 20-May-2014 30-Jun-2019 40.00 22.55 14.76 Policy Waiver(s) Does this restructuring trigger the need for any policy waiver(s)? No The World Bank SN:Casamance Development Pole Project (P125506) I. PROJECT STATUS AND RATIONALE FOR RESTRUCTURING A. Overall progress. 1. Since the Mid Term Review in September 2016, the Project disbursement has substantially improved reaching 59.6% as of August 30, 2017 from 27 % back in September 2016. In that context, the overall implementation progress rating is satisfactory. The progress towards the achievements of the Project Development Objective remains moderately satisfactory due to difficulties to implement the Component 3 (see below). There is no overdue audit reports. 2. Activities under Component 1 on agriculture, are progressing in a satisfactory fashion with the rehabilitation and development of 1865ha of rice valleys already in Ziguinchor and Sedhiou regions and an additional 1300ha expected in Kolda by December 2017. Rice production has reached 40% of the overall project target in one year and small equipment has been procured and given to local farmers organizations. Similarly, the horticulture sub- component has started with 10 perimeters managed by women and youth in the three regions but the target of 3000ha for this subcomponent will need to be revised to 300ha as it was largely overestimated at Project preparation. The construction of the logistic platform of Bignogna has been concluded but concrete launch of activities has been delayed with a start expected for next mangoes season in 2017. Finally, construction of storage facilities has been delayed but is underway and should be concluded in December for the next crop season. 3. Under Component 2, Rural Accessibility, 35 km of rural roads has been rehabilitated on the Diegoune-Balinghor and Affiniam-Elana sections and spot improvements of unclassified rural roads linking communities have been completed on 23 km of the corridors Affia-Carrefour Ndiaye and Salikégné-Bloc Bassaf in the regions of Sédhiouin and Sedhiou. Works for the remaining sections are underway (Kolda Pata sections and priority sections in Zinguichor (Bailia -Suelle and Sindian-Djibidione). On rural road management and maintenance, it was agreed that the Fonds Autonome d’Entretien Routier (FERA) will take over 43Km of rural roads identified by the project in Zinguinchor, and 40 km in the Kolda region while the High Intensity Labor activities (HIMO) pilots for the road maintenance have started (such as identification of sections and training). 4. Component 3, Project Implementation and Capacity Building in Disarmament, Demobilization and Reintegration (DDR), has been only partially implemented because of changes in the initial institutional setup of the project: initially, the project had envisioned to that the ARD (Agences Rurales de Developpement), once strengthened, would play a key role in the Project implementation. With the “Acte III of Decentralization” in 2013, it was clear that the ARD could no longer play this role and to avoid too much delays in project implementation, it was decided to create a Project Implementation Unit, based in Zinguichor and drop some activities related to ARD in component 3. The purpose of the present restructuring is to reinforce Project ownership and further boost its implementation by anchoring Project implementation on the field through the development of a Citizen Engagement planning and monitoring exercise. This will build on the feedback of an initial pilot developed in Diegoune in the past months. It is expected that nine more pilots will be developed through after the proposed restructuring. B. Rationale for Restructuring. 5. The MTR observed a lack of institutional ownership by main stakeholders which has hampered the full deployment of the territorial development approach supported by the project. Interviews with local communities, government partners and civil society organizations during MTR confirmed the importance of civic engagement activities, while stressing the need to strengthen the existing ones and bridging several key points related to the objectives of Component 3: (i) institutional links with municipalities and deconcentrated state bodies; (ii) mechanisms for access to information by local populations; (iii) management of grievances, and; (iv) inclusion of women and youth in the project activities and in local development processes. The World Bank SN:Casamance Development Pole Project (P125506) 6. So as to foster the ownership of activities by local communities and local institutions (prefects, rural municipalities, producers groups), the MTR recommended to develop a citizen engagement pilot under component 3, focusing on (a) local planning for local development; (b) implementation of project wide Feedback Mechanism and (c) strengthening citizens access to information through outreach and communication towards beneficiaries. This pilot is expected to foster more active participation of the communities to the Project and as such, improve better contribute to the Project’s objective. 7. Moreover, the MTR recommended to address some of the Project specific issues to date, including: a revision of some of the end-Project physical targets, in particular those related to the valleys and roads which were overestimated at preparation and were re-evaluated and refined during the mid-term review and; a partial reallocation of funds between sub components to meet the most recent cost estimates. 8. The above proposed changes are in line with the PDO and are expected to better contribute to achieving the project objectives. II. DESCRIPTION OF PROPOSED CHANGES Three areas of changes are proposed for the restructuring: A) Key results indicators; B) Reallocation of the budget across the three Components, and; C) Restructuring of the Component 3. (a) Key results indicators. From the MTR review, the following indicators changes are proposed on key indicators : Core indicators (a) Two core indicators have their target results and schedule updated.  The number of rural people with access to an all-season road end target will be readjusted from 705 000 to 700 700 to reflect the reduction of total kilometers of roads rehabilitated based on the refined cost assessment for the work;  Tons of local products passing through the platform of Bignona per Year will be changed from 25,000 to 13,000 to reflect the delays in the launch of the platform (results expected only in FY 17 and FY 18); (b) The following Intermediate indicators have their target results and schedule updated. One indicator formulation is also revised to reflect the nature of the work (roads). 2 indicators are dropped and 2 created to reflect changes in component 3  Rural Roads rehabilitated is reformulated to include as well “and/or improved to all weather conditions” (kilometers). Target result will be reduced from 550Km to 480 km based on the refined cost assessment for the work during the MTR and schedule updated according to current workplan.  Area provided with new irrigation or drainages services will be split into 2 indicators, (a) one referring to new drainage and irrigation services and (b) one to improved drainage and irrigation services to allow a more realistic The World Bank SN:Casamance Development Pole Project (P125506) monitoring of progress. Results will be updated according to current activities to reflect the initial delays (work started in FY 17 instead of FY 15 as originally planned).  The date for the creation and functioning of the platform of Bignona will move from 2016 to 2017  Drop two (2) indicators under Component 3 due to the change in Component 3 – namely:  Conducting the study for the national strategy of development poles  Number of staff trained in DDR. Instead, two new indicators will be added to reflect proposed new activities:  Number of citizen engagement pilots implemented  Percentage of grievance responses within the required timeframe. (b) Reallocation of the budget across the three components of the project. The following reallocation of the budget is proposed, reflecting the mid-term review findings:  Component 1 allocation will decrease from US $ 24 million to US$ 22 million (US$ 20 million IDA and US$ 2 million counterpart funding).  Sub-component 1.1 will be increased by US$ 2million, coming from the subcomponent 1.4 (US$ 1million) and sub-component 1.2 (US$ 1million from counterpart funding). Hence, the new amount for the sub-component 1.2 will be US$ 6 millions to meet the most recent cost estimates for the valleys rehabilitation  Sub-component 1.4 will be reduced from US$ 7million to US$ 4 million. US$ 1 million will be allocated to sub- component 1.1 (as mentioned above), and US$ 2 millions will be allocated to sub-component 3.3. Those savings are due to the initial overestimated cost for the Bignona platform.  Component 2 allocation will remain the same but will have the following internal allocation changes across sub-components to meet the most recent cost estimates:  Sub-component 2.2. The sub-component 2.2 will be increased by US$ 0.54million (from sub-component 2.4) for a total of US$ 10.75 millions.  Sub-component 2.4 has a saving of US$ 0.54 millions (initially allocated to ARD for road maintenance) which will be reallocated to the sub-component 2.2 (as mentioned above).  Component 3 will increase from US $ 7 million to US$ 9 million. (US$ 7 million IDA and US$ 2 million counterpart funding). Detailed explanation is provided in the section C.  Sub-component 3.1 will change name from “Strengthening the capacity of ANRAC and DDR” to “information, animation and communication”. The allocation to this sub-component will decrease from US$ 600,000 to US$ 260,000. US$ 340, 000 are transferred to the new 3.2 Citizen Engagement Pilot sub component.  Sub-component 3.2 will change name from “ Strategic studies” to “ Citizen Engagement Pilots”. US$ 680,000 reallocated from sub-component 3.1 and 3.2. US $3,800,000 are transferred to the new 3.4 Subcomponent “ project management”, US$ 260,000 are transferred to the new 3.3 “ Village subprojects financing  Sub-component 3.3 will change name from “Construction of office facilities for the ARDs and provision of related office equipment” to “Village Sub-projects Financing ”. The new component will be of US$ 2,260,000 including US$ 260,000 from the original sub-component 3.2. “Strategic Studies” and US$ 2,000,00 from the subcomponent 3.3 “ construction of ARD”.  Sub-component 3.4 “ Support to Project Management, Results monitoring and Evaluation (M&E)” will be added for a total US$ 5.8 million including US$ 2 000 000 from c1.4 and US$ 3,800,000 from 3.2.  The budget allocation for sub-components 1.3, 2.1, 2.3 will remain unchanged. (c) Restructuring of the Component 3. The World Bank SN:Casamance Development Pole Project (P125506) The proposed restructuring of component 3 aims at allowing for a better use of the Project’s funds, launch a pilot of citizen engagement and strengthen project supervision. Those proposed changes, which build on the vision of territorial development implemented by the Ministry of Local Governance Development and Planning Territory, are expected to contribute to better achieve the Project objective. Upon restructuring, the Component 3 will include the following sub-components:  Sub-component 3.1 “Information, Facilitation, and Communication of the Project”. (US$ 260,000, from the original sub-component 3.1 “Capacity building of key actors, including ANRAC in broader peace building processes and the basics of DDR of ex-combatants”, US $ 340, 000 are transferred to the new 3.2 Citizen Engagement Pilot sub component). Resources of this subcomponent were broadly underutilized. The proposed restructured sub-component will support communication and access to information on project activities for local citizens to better achieve the objective of the subcomponent. It will cover information campaigns about project activities (newsletters, creation of success stories, local radio, etc.) and awareness raising about the local Community Development Plans (PDCs) in selected communes. Citizens’ access to information about project goals and activities as well as sequenced communication and outreach has been identified as a key factor to build local ownership and community participation. The objectives of these activities are to increase the awareness and ownership by the local population of the project activities and the content of the Commune Development Plans (PDCs) to allow for an informed feedback from the beneficiaries. The information and communication activities will be conducted in partnership with the ANRAC.  Sub-component 3.2 “Citizen Engagement Pilots”. (US$ 680,000 reallocated from sub-component 3.1 and 3.2. US $3,800,000 are transferred to the new 3.4 Subcomponent “project management”, US$ 260,000 are transferred to the new 3.3 “ Village subprojects financing”). This subcomponent will help prepare and revise Commune Development Plans (PDCs) in 9 villages spread over 3 communes across the 3 regions by establishing pilot citizen engagement mechanisms focused on participatory planning and grievance redress mechanisms. Those pilots will include specific engagement mechanisms (participatory planning, monitoring, grievance redress, etc.) aiming at improving local participation and local territorial planning. Citizen Engagement Committees will be supported in the targeted villages to support the implementation of those pilots and identify in the PDC village sub-projects which will be financed under component 3.3. The activities will be implemented in close coordination with the Department of Local Development Support (DADL/MGLDAT) and its local branches (SRDAL), which will receive budgetary support from the project for this purpose. The citizen engagement pilot activities will be carried out in close collaboration with the local development support department of the Ministry of Local Governance Development and Planning Territory. (1) Sub-component 3.3 “Village Sub-projects Financing”. (US$ 2,260,000 including US$ 260,000 from the original sub-component 3.2. “Strategic Studies” and US$ 2,000,00 from the subcomponent 3.3 “ construction of ARD”) This sub-component will provide funding to micro-projects (village subprojects) that are deemed priority by the populations to support the implementation of the PDCs in 9 villages. The micro-projects will be small scale community and income generating investments project for vulnerable groups (such as fencing of local gardens, minor dirt road repairs, community storage, etc). They will support the Reconstruction, Reconciliation and Sustainable Development strategy promoted by the PPDC by reinforcing local social cohesion and supplementing other PPDC larger activities under component 1 and 2. The micro-project selection will be done by the local Citizen Engagement Committees as part of the PDC revisions/preparation to ensure the coherence between the different territorial planning levels of the Territorial Collectivities. Procurement for the village level The World Bank SN:Casamance Development Pole Project (P125506) micro-projects will be managed by the project and will follow procedures developed in the revised Project Implementation Manual.  Sub-component 3.4 “Support to Project Management, Results monitoring and Evaluation (M&E)” (US$ 5,800,000 including US $ 2 000 000 USD from c1.4 and US $ 3,800,000 from 3.2): this subcomponent will be added to reflect the changes between the initial legal agreement and in the project document. It will support project management and the results monitoring and evaluation activities. Former total before New Total after restructuring Modifications component restructuring component IDA SN 3.1 Reinforcing the 600 000 USD 3.1 260,000 USD 340 000 USD capacity of key Communication transfered to the actors, including new c3.2. ANRAC, in the peace consolidation and the Disarming, Demobilisation and Reinsertion of former fighters 3.2. Strategic 4 400 000- 3. 2 Citizen 680, 000 USD 340 000 USD studies Engagement transfered from Pilots c3.1. + 340 000 USD transfered from c3.2. 3 800 000 transfered to 3.4 and 260 000 transfered to 3 .3 3.3. ARD building 2 000 000 3.3Village 260 000 USD 2 000 000 260 000 USD from construction subproject c3.2 financing 3.4 Support to 5 800 000 USD 2 000 000 USD Project (c1.4) + 3 800 000 Management, from 3.2 Results monitoring and Evaluation (M&E)” The World Bank SN:Casamance Development Pole Project (P125506) III. SUMMARY OF CHANGES Changed Not Changed Change in Results Framework ✔ Change in Components and Cost ✔ Change in Implementing Agency ✔ Change in DDO Status ✔ Change in Project's Development Objectives ✔ Change in Loan Closing Date(s) ✔ Cancellations Proposed ✔ Reallocation between Disbursement Categories ✔ Change in Disbursements Arrangements ✔ Change in Disbursement Estimates ✔ Change in Systematic Operations Risk-Rating Tool ✔ (SORT) Change in Safeguard Policies Triggered ✔ Change of EA category ✔ Change in Legal Covenants ✔ Change in Institutional Arrangements ✔ Change in Financial Management ✔ Change in Procurement ✔ Change in Implementation Schedule ✔ Other Change(s) ✔ Change in Economic and Financial Analysis ✔ Change in Technical Analysis ✔ Change in Social Analysis ✔ Change in Environmental Analysis ✔ IV. DETAILED CHANGE(S) The World Bank SN:Casamance Development Pole Project (P125506) RESULTS FRAMEWORK Project Development Objective Indicators PDO_IND_TABLE Direct project beneficiaries Unit of Measure: Number Indicator Type: Custom Baseline Actual (Current) End Target Action Valu 0.00 35682.00 50000.00 No Change e Date 31-Jul-2013 09-Jun-2017 31-Dec-2018 Female beneficiaries Unit of Measure: Percentage Indicator Type: Custom Supplement Baseline Actual (Current) End Target Action Value 0.00 55.49 60.00 No Change Share of rural population with access to an all-season road Unit of Measure: Percentage Indicator Type: Custom Baseline Actual (Current) End Target Action Valu 0.00 53.60 60.00 No Change e Date 31-Jul-2013 09-Jun-2017 31-Dec-2018 Number of rural people with access to an all-season road Unit of Measure: Number Indicator Type: Custom Supplement Baseline Actual (Current) End Target Action Value 614000.00 631516.00 700699.00 Revised The World Bank SN:Casamance Development Pole Project (P125506) Tons of local products passing through the platform of Bignona per Year Unit of Measure: Tones/year Indicator Type: Custom Baseline Actual (Current) End Target Action Valu 0.00 0.00 13000.00 Revised e Date 31-Jul-2013 09-Jun-2017 31-Dec-2018 Average revenue per hectare of horticulture Unit of Measure: Amount(USD) Indicator Type: Custom Baseline Actual (Current) End Target Action Valu 500.00 1500.00 1350.00 No Change e Date 31-Jul-2013 09-Jun-2017 31-Dec-2018 Average increase in rainfed rice output Unit of Measure: Tones/year Indicator Type: Custom Baseline Actual (Current) End Target Action Valu 0.00 154526.00 180000.00 No Change e Date 31-Jul-2013 09-Jun-2017 31-Dec-2018 Intermediate Indicators IO_IND_TABLE Staff trained in DDR Unit of Measure: Number Indicator Type: Custom Baseline Actual (Current) End Target Action Valu 0.00 40.00 100.00 Marked for Deletion e Date 31-Jul-2013 09-Jun-2017 31-Dec-2018 The World Bank SN:Casamance Development Pole Project (P125506) A national development pole strategy is developped Unit of Measure: Yes/No Indicator Type: Custom Baseline Actual (Current) End Target Action Valu No No Yes Marked for Deletion e Date 31-Jul-2013 09-Jun-2017 31-Dec-2018 Rural Roads rehabilitated and/or improved to all weather conditions Unit of Measure: Kilometers Indicator Type: Custom Baseline Actual (Current) End Target Action Valu 0.00 93.50 480.00 Revised e Date 31-Jul-2013 09-Jun-2017 31-Dec-2018 Agricultural storage facilities Unit of Measure: Number Indicator Type: Custom Baseline Actual (Current) End Target Action Valu 0.00 0.00 15.00 No Change e Date 31-Jul-2013 09-Jun-2017 31-Dec-2018 The platform of Bignona is constructed and functional Unit of Measure: Yes/No Indicator Type: Custom Baseline Actual (Current) End Target Action Valu No No Yes No Change e Date 31-Jul-2013 09-Jun-2017 31-Dec-2018 Area provided with new/improved irrigation or drainage services Unit of Measure: Hectare(Ha) Indicator Type: Corporate Baseline Actual (Current) End Target Action The World Bank SN:Casamance Development Pole Project (P125506) Valu 0.00 52916.00 30000.00 No Change e Date 31-Jul-2013 09-Jun-2017 31-Dec-2018 Area provided with new irrigation or drainage services Unit of Measure: Hectare(Ha) Indicator Type: Corporate Breakdown Baseline Actual (Current) End Target Action Value 0.00 19989.00 12000.00 Revised Date 31-Jul-2013 09-Jun-2017 31-Dec-2018 Area provided with improved irrigation or drainage services Unit of Measure: Hectare(Ha) Indicator Type: Custom Breakdown Baseline Actual (Current) End Target Action Value 0.00 0.00 18000.00 New Date 31-Jul-2013 30-Aug-2017 31-Dec-2018 Women and youth groups provided with equipment and input packages Oyster farms Unit of Measure: Number Indicator Type: Custom Baseline Actual (Current) End Target Action Valu 0.00 5.00 2.00 No Change e Date 31-Jul-2013 09-Jun-2017 31-Dec-2018 Women and youth groups provided with equipment and input packages Horticulture Unit of Measure: Number Indicator Type: Custom Baseline Actual (Current) End Target Action Valu 0.00 67.00 75.00 No Change e Date 31-Jul-2013 09-Jun-2017 31-Dec-2018 Women and youth groups provided with equipment and input packages Rice The World Bank SN:Casamance Development Pole Project (P125506) Unit of Measure: Number Indicator Type: Custom Baseline Actual (Current) End Target Action Valu 10.00 509.00 50.00 No Change e Date 31-Jul-2013 09-Jun-2017 31-Dec-2018 Rice valleys rehabilitated Unit of Measure: Hectare(Ha) Indicator Type: Custom Baseline Actual (Current) End Target Action Valu 0.00 52916.00 30000.00 No Change e Date 31-Jul-2013 09-Jun-2017 31-Dec-2018 People in the project area aware of the project's beneficiary targeting criteria Unit of Measure: Percentage Indicator Type: Custom Baseline Actual (Current) End Target Action Valu 0.00 71.00 50.00 No Change e Date 31-Jul-2013 09-Jun-2017 31-Dec-2018 Targeted clients satisfied with agricultural services (percentage) Unit of Measure: Percentage Indicator Type: Custom Baseline Actual (Current) End Target Action Valu 0.00 85.00 85.00 No Change e Date 31-Jul-2013 09-Jun-2017 31-Dec-2018 Targeted clients – female (number) Unit of Measure: Number Indicator Type: Custom Supplement Baseline Actual (Current) End Target Action The World Bank SN:Casamance Development Pole Project (P125506) Value 0.00 0.00 0.00 No Change Small enterprises created around the platform of Bignona Unit of Measure: Number Indicator Type: Custom Baseline Actual (Current) End Target Action Valu 0.00 0.00 15.00 No Change e Date 31-Jul-2013 30-Sep-2016 31-Dec-2018 Number of citizen engagement pilots implemented Unit of Measure: Number Indicator Type: Custom Baseline Actual (Current) End Target Action Valu 0.00 0.00 9.00 New e Date 30-Aug-2017 30-Aug-2017 31-Dec-2018 Percentage of grievance responses within the required timeframe Unit of Measure: Percentage Indicator Type: Custom Baseline Actual (Current) End Target Action Valu 0.00 0.00 100.00 New e Date 30-Aug-2017 30-Aug-2017 31-Dec-2018 COMPONENTS Current Proposed Current Proposed Cost Action Cost Component Name Component Name (US$M) (US$M) Support to agricultural Support to agricultural production, Post-harvest, and production, Post-harvest, and 24.00 Revised 22.00 marketing for selected value- marketing for selected value- chains chains The World Bank SN:Casamance Development Pole Project (P125506) Rural Accessibility 15.00 Rural Accessibility 15.00 Project implementation and Project implementation and 7.00 Revised 9.00 capacity building capacity building TOTAL 46.00 46.00