The World Bank Zambia: Improved Rural Connectivity Project () REPORT NO.: RES39104 DOCUMENT OF THE WORLD BANK RESTRUCTURING PAPER ON A PROPOSED PROJECT RESTRUCTURING OF ZAMBIA: IMPROVED RURAL CONNECTIVITY PROJECT APPROVED ON MAY 4, 2017 TO MINISTRY OF FINANCE TRANSPORT AFRICA Regional Vice President: Hafez M. H. Ghanem Country Director: Bella Bird Regional Director: Riccardo Puliti Practice Manager/Manager: Benedictus Eijbergen Task Team Leader(s): Petrus Benjamin Gericke The World Bank Zambia: Improved Rural Connectivity Project () I. BASIC DATA Product Information Project ID Financing Instrument Investment Project Financing Original EA Category Current EA Category Partial Assessment (B) Partial Assessment (B) Approval Date Current Closing Date 04-May-2017 31-Dec-2025 Organizations Borrower Responsible Agency Ministry of Finance National Road Fund Agency Project Development Objective (PDO) Original PDO The objectives of the Project are to: (i) improve the Recipient’s rural road accessibility for communities in selected areas; (ii) strengthen institutional capacity for sustainable management of rural roads; and (iii) respond promptly and effectively to an Eligible Crisis or Emergency. Summary Status of Financing Net Ln/Cr/Tf Approval Signing Effectiveness Closing Commitment Disbursed Undisbursed IDA-60390 04-May-2017 13-Sep-2017 15-Feb-2018 31-Dec-2025 200.00 19.72 180.28 Policy Waiver(s) Does this restructuring trigger the need for any policy waiver(s)? No I. SUMMARY OF PROJECT STATUS AND PROPOSED CHANGES The World Bank Zambia: Improved Rural Connectivity Project () 1. The purpose of this restructuring paper is to allow Government to use about US$ 2 million IDA proceeds, available as unallocated funds, to finance cash compensation for involuntary resettlement under the project. Such financing will enable the Government of the Republic of Zambia (GRZ) to meet the requirements of the Resettlement Policy Framework (RPF) and the Abbreviated Resettlement Action Plans (ARAPs) for the respective works contracts to be financed by the Project. 2. In a letter dated June 20, 2019 and referenced MF/IDM/101/24/241, GRZ requested the World Bank to finance involuntary resettlement of PAPs from Project proceeds. 3. Bank Management considered this request and the Regional Vice President approved the request on October 24, 2019. The follow-on restructuring is covered in this paper. 4. Project implementation speeded up in the last six months with the award of the first two civil work contracts under the Project; and their corresponding ARAPS have been disclosed by the Bank and the Client. Three further works packages are in an advanced stage of procurement evaluation while a further four works packages will enter the bid evaluation stage soon. The ARAPs for all these works packages have been cleared for disclosure. 5. Disbursements have been slow to date (US$14,7 m out of the available US$200m). This will speed up with the commencement of works on more and more works packages - the Team already cleared an advance of US$5 million with more advances to follow. II. DETAILED CHANGES REALLOCATION BETWEEN DISBURSEMENT CATEGORIES Current Current Actuals + Proposed Disbursement % Ln/Cr/TF Expenditure Allocation Committed Allocation (Type Total) Category Current Proposed IDA-60390- Gds, Ncs,CS,OC, 34,400,000.00 5,998,331.97 34,400,000.00 100.00 100.00 001 Trng Currency: Wks USD Particpating 113,640,000.00 0.00 112,000,000.00 100.00 100.00 Prov i.ii. iii.iv. Wks Particpating 48,460,000.00 0.00 48,100,000.00 100.00 100.00 Prov v. vi. PPF 3,000,000.00 141,705.27 3,000,000.00 REFINANCING The World Bank Zambia: Improved Rural Connectivity Project () Front End Fee 0.00 0.00 0.00 0.01 0.01 (USD 500,000) Emergency expenditures 0.00 0.00 0.00 0.01 0.01 Part 3 Cash 0.00 0.00 2,000,000.00 100 compensation Total 199,500,000.00 6,140,037.24 199,500,000.00