The World Bank Mali Reconstruction and Economic Recovery (P144442) REPORT NO.: RES28703 RESTRUCTURING PAPER ON A PROPOSED PROJECT RESTRUCTURING OF MALI RECONSTRUCTION AND ECONOMIC RECOVERY APPROVED ON DECEMBER 6, 2013 TO MINISTRY OF ECONOMY AND FINANCE SOCIAL, URBAN, RURAL AND RESILIENCE GLOBAL PRACTICE AFRICA Regional Vice President: Makhtar Diop Country Director: Soukeyna Kane Senior Global Practice Director: Ede Jorge Ijjasz-Vasquez Practice Manager/Manager: Meskerem Brhane Task Team Leader: Zie Ibrahima Coulibaly The World Bank Mali Reconstruction and Economic Recovery (P144442) ABBREVIATIONS AND ACRONYMS IP Implementation Progress MOD Delegated Contract Management Agency (Maître d’Ouvrage Délégué) MTR Mid-term Review PCU Project Implementation Unit PDESC Local Development Plan (Plan de développement économique, social et culturel) PDO Project Development Objective The World Bank Mali Reconstruction and Economic Recovery (P144442) BASIC DATA Product Information Project ID Financing Instrument P144442 Emergency Recovery Loan Original EA Category Current EA Category Partial Assessment (B) Partial Assessment (B) Approval Date Current Closing Date 06-Dec-2013 01-Dec-2018 Organizations Borrower Responsible Agency Ministry of Economy and Finance Project Coordination Unit Project Development Objective (PDO) Original PDO The objective of the proposed project is to rehabilitate basic infrastructure and restore productive activities of communities impacted by the crisis in Mali. OPS_TABLE_PDO_CURRENTPDO Summary Status of Financing Net Ln/Cr/Tf Approval Signing Effectiveness Closing Commitment Disbursed Undisbursed IDA-H9010 06-Dec-2013 23-Dec-2013 19-Mar-2014 01-Dec-2018 100.00 41.73 50.08 Policy Waiver(s) Does this restructuring trigger the need for any policy waiver(s)? No The World Bank Mali Reconstruction and Economic Recovery (P144442) I. PROJECT STATUS AND RATIONALE FOR RESTRUCTURING A. Project Status (i) The project was approved on December 6, 2013 and declared effective on March 19, 2014. Its closing date is December 1, 2018. Despite its emergency nature, the project was not able to produce rapid results on the ground because of significant delays in the establishment of the project institutional set up. While the Project Coordination Unit was established only in October 2014, hiring of the five Delegated Contract Management Agencies (Maîtres d’Ouvrage Délégués – MODs) for project implementation was completed only in April 2015. To date, the project disbursement rate is about 42 percent against 70 percent of the project lifetime elapsed. (ii) The project is currently rated moderately satisfactory on both its Development Objective (DO) and its Implementation Progress (IP). Data received from the PCU on project achievements indicate that the project can meet its overall PDO with outcome indicators reached or surpassed on three of five indicators. However, overall implementation performance remains uneven between components with implementation of some activities lagging far behind. (iii) Component 1: After a one-year delay, implementation of the activities to rehabilitate local public infrastructure (Component 1) has resulted in targets being reached or surpassed on two of four intermediary outcomes, namely: (i) health facilities rehabilitated and functional as a result of the project; and (ii) temporary jobs created. So far, the project has been failed to meet the two other indicators which are: (i) classrooms rehabilitated and functional as a result of the project intervention and (ii) water supply systems rehabilitated and functional as a result of the project intervention. The initial achievements mainly result from the implementation of the Priority Investment Program (Track 1 of the component). Implementation of the remaining investment priorities from participative updates of the local development plans (plans de développement économique, social et culturel or PDESCs - Track 2 of the component) began only in late 2016 and remain at the early stages. (iv) Component 2: After more than one year of delay, implementation of the activities for productive investments (Component 2) has resulted in targets surpassed on only two intermediary outcomes of six expected: (i) seeds procured and distributed; and (ii) beneficiaries receiving emergency assistance. Achievements are very close to targets from procurement and distribution of animal feed. However, there is less progress on financing of micro-projects on productive assets or for women’s organizations and rehabilitation of land farm. Implementation of micro-projects will now be following the finalization of productive investment priorities that were set during the updates of the PDESCs mentioned above. (v) Component 3: Implementation of activities in support of community engagement and local governance (Component 3) has resulted in outstanding achievements on two intermediary outcomes of three i.e. (i) participants in consultation activities during project implementation, and (ii) participating local governments with revised PDESCs. However, grievance redress mechanisms are reported to have been established in all the project participating communes but with a large number not yet fully functional. This is expected to be completed by December 2017. B. Rationale for Project Restructuring The World Bank Mali Reconstruction and Economic Recovery (P144442) (i) Despite marked progress towards achieving PDO targets, project implementation has been slower than originally expected. The main reasons include: (i) delayed launch of project activities and delays in the planned priority-setting by PDESCs for the second track of project investments beyond the first 18 months; and (ii) protracted insecurity in several project areas and dispersion of small investments across large areas, spreading operational capacities in both project implementation and supervision too thinly. As a result, the existing MODs have not been able to complete their work as expected, leading to a potential risk of under- achievement of objectives. Moreover, assessment of the project achievements by the PCU has revealed weaknesses within the results framework (RF) which have been limiting proper reporting on the project achievements. (ii) Against this background, it was agreed during the MTR to restructure the project. The project restructuring approach and changes to its structure were agreed with the Borrower and participating local governments during the MTR. An action plan was further agreed with the government to finalize the project restructuring with the aim to improve the project overall implementation performance and thereby ensure achievement of the development objective and satisfactory completion at exit. C. Agreements with Borrower at MTR The following were agreed with the Borrower during the project MTR: (i) confirmation of non-renewal of the contract with AGEROUTE after its expiration on December 30, 2016 due to non-completion of major transportation infrastructure rehabilitation activities (project component 1). The MTR endorsed the government’s decision to let the contract expire and make amendments to the contracts with AGETIPE and AGETIER for each one to take in charge part of the investments pending from AGEROUTE; (ii) hiring of additional MODs to deal with new investments (micro-projects and a regional level productive investment) to be included in project component 2 as a result of its restructuring. To ascertain timely and effective implementation of these investments, two UN agencies were identified during the project MTR as potential candidates as third party executors. They are: (i) FAO, based on its already proven performance in delivering on the project; and (ii) UNOPS, because of its reported track record in dealing with infrastructure investments in similar post-conflict environments. II. DESCRIPTION OF PROPOSED CHANGES D. Change in Results Framework Based on the shortcomings identified in the project M&E system, the MTR was able to validate very few outcome values as a result of the project implementation. Also, it revealed that the RF is missing relevant indicators to measure outcomes resulting from some investment activities being undertaken under the project (e.g. transport infrastructure and street lighting) with relatively high value for money as well as those expected from new activities like the rehabilitation of the port of Kona. It was then agreed to: The World Bank Mali Reconstruction and Economic Recovery (P144442) (i) include in the RF new indicators as appropriate for the project component 1 (rehabilitation of local public infrastructure) and component 2 (support of productive investments) to better meet the project restructuring expectations; (ii) revise the target values of all project indicators based on the project actual achievements to date and integrating the priorities agreed on during the MTR for the remainder of the project lifetime; and (iii) elaborate more on the data collection methods so that to get to a shared understanding of notions like functionality of specific infrastructures after rehabilitation and to improve overall accuracy of the information resulting from project implementation. E. Change in Components and Costs Based on the rationale provided on project restructuring, changes in the project components and their respective costs have been agreed as follows during the MTR: (i) scaling down of project activities for component 1 (rehabilitation of public infrastructure) and commensurate reduction of financing amount by US$5.83M; hence a revised amount of US$44.17M; (ii) scaling up of project activities for component 2 (support of productive investments) and commensurate increase of financing amount by US$5.20M; hence a revised amount of US$40.20M; and (iii) required adjustments to the component 4 leading an increase of its financing by US$0.63M; hence a revised amount of US$5.63M. F. Change in Disbursement Estimates Because of implementation lag at project startup, the project disbursement rate to date stands at 42 percent against 70 percent of its lifetime elapsed. The revised disbursement estimates provided in Section IV would align disbursements with the pace of project implementation after restructuring. I. SUMMARY OF CHANGES Changed Not Changed Change in Results Framework ✔ Change in Components and Cost ✔ Reallocation between Disbursement Categories ✔ Change in Disbursement Estimates ✔ Change in Implementing Agency ✔ Change in DDO Status ✔ Change in Project's Development Objectives ✔ The World Bank Mali Reconstruction and Economic Recovery (P144442) Change in Loan Closing Date(s) ✔ Cancellations Proposed ✔ Change in Disbursements Arrangements ✔ Change in Overall Risk Rating ✔ 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) OPS_DETAILEDCHANGES_RESULTS_TABLE 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 Value 0.00 237100.00 1461147.00 Revised Date 20-Nov-2013 28-Jun-2017 01-Dec-2018 Female beneficiaries Unit of Measure: Percentage Indicator Type: Custom Supplement The World Bank Mali Reconstruction and Economic Recovery (P144442) Baseline Actual (Current) End Target Action Value 0.00 46.00 51.00 No Change Local infrastructure rehabilitated under the project functioning one year post rehabilitation Unit of Measure: Percentage Indicator Type: Custom Baseline Actual (Current) End Target Action Value 0.00 0.00 80.00 No Change Date 20-Nov-2013 28-Jun-2017 01-Dec-2018 Productive assets rehabilitated under the project utilized for economic activities one year post rehabilitation Unit of Measure: Percentage Indicator Type: Custom Baseline Actual (Current) End Target Action Value 0.00 0.00 70.00 No Change Date 20-Nov-2013 28-Jun-2017 01-Dec-2018 People benefitting from rehabilitated local infrastructure Unit of Measure: Number Indicator Type: Custom Baseline Actual (Current) End Target Action Value 0.00 40500.00 1420291.00 Revised Date 20-Nov-2013 28-Jun-2017 01-Dec-2018 People benefitting from rehabilitated productive assets Unit of Measure: Number Indicator Type: Custom Baseline Actual (Current) End Target Action Value 0.00 0.00 40856.00 Revised Date 20-Nov-2013 28-Jun-2017 01-Dec-2018 Intermediate Indicators IO_IND_TABLE 1.1 Classrooms rehabilitated and functional as a result of project intervention Unit of Measure: Number The World Bank Mali Reconstruction and Economic Recovery (P144442) Indicator Type: Custom Baseline Actual (Current) End Target Action Value 0.00 2242.00 1604.00 Revised Date 20-Nov-2013 28-Jun-2017 01-Dec-2018 1.2.Health facilities rehabilitated and functional as a result of project intervention Unit of Measure: Number Indicator Type: Custom Baseline Actual (Current) End Target Action Value 0.00 101.00 277.00 Revised Date 20-Nov-2013 28-Jun-2017 01-Dec-2018 1.3.Water supply systems rehabilitated and functional as a result of project intervention Unit of Measure: Number Indicator Type: Custom Baseline Actual (Current) End Target Action Value 0.00 18.00 443.00 Revised Date 20-Nov-2013 28-Jun-2017 01-Dec-2018 1.4. Temporary Jobs created Unit of Measure: Days Indicator Type: Custom Baseline Actual (Current) End Target Action Value 0.00 5500.00 30896.00 Revised Date 20-Nov-2013 28-Jun-2017 01-Dec-2018 1.5.Local governments benefitting from rehabilitated local infrastructure Unit of Measure: Number Indicator Type: Custom Baseline Actual (Current) End Target Action Value 0.00 87.00 100.00 No Change Date 20-Nov-2013 28-Jun-2017 01-Dec-2018 1.5 Transport infrastructure rehabilitated and functional as a result of the project intervention Unit of Measure: Number Indicator Type: Custom The World Bank Mali Reconstruction and Economic Recovery (P144442) Baseline Actual (Current) End Target Action Value 0.00 8.00 14.00 New Date 20-Nov-2013 06-Apr-2016 01-Dec-2018 1.6 Street lighting globes in place and in use as a result of the project intervention Unit of Measure: Number Indicator Type: Custom Baseline Actual (Current) End Target Action Value 0.00 0.00 413.00 New Date 20-Nov-2013 04-Dec-2016 01-Dec-2018 2.1.Seeds procured and distributed Unit of Measure: Tones/year Indicator Type: Custom Baseline Actual (Current) End Target Action Value 0.00 460.00 582.00 Revised Date 20-Nov-2013 28-Jun-2017 01-Dec-2018 2.2.Animal feed procured and distributed Unit of Measure: Tones/year Indicator Type: Custom Baseline Actual (Current) End Target Action Value 0.00 1197.00 2725.00 Revised Date 20-Nov-2013 28-Jun-2017 01-Dec-2018 2.3.Micro-projects on productive assets financed Unit of Measure: Number Indicator Type: Custom Baseline Actual (Current) End Target Action Value 0.00 0.00 482.00 Revised Date 20-Nov-2013 28-Jun-2017 01-Dec-2018 2.4.Micro-projects for women’s organization financed Unit of Measure: Number Indicator Type: Custom Baseline Actual (Current) End Target Action The World Bank Mali Reconstruction and Economic Recovery (P144442) Value 0.00 0.00 360.00 Revised Date 20-Nov-2013 28-Jun-2017 01-Dec-2018 2.5.Rehabilitated farm land Unit of Measure: Hectare(Ha) Indicator Type: Custom Baseline Actual (Current) End Target Action Value 0.00 0.00 1818.00 Revised Date 20-Nov-2013 28-Jun-2017 01-Dec-2018 2.6.Beneficiaries receiving emergency assistance Unit of Measure: Number Indicator Type: Custom Baseline Actual (Current) End Target Action Value 0.00 226065.00 52329.00 Revised Date 20-Nov-2013 04-Dec-2016 01-Dec-2018 2.7 Rehabilitated productive trunk infrastructure of regional interest Unit of Measure: Number Indicator Type: Custom Baseline Actual (Current) End Target Action Value 0.00 0.00 1.00 New Date 20-Nov-2013 04-Dec-2016 01-Dec-2018 3.1.Participants in consultation activities during project implementation Unit of Measure: Number Indicator Type: Custom Baseline Actual (Current) End Target Action Value 0.00 45740.00 322164.00 Revised Date 20-Nov-2013 04-Dec-2016 01-Dec-2018 3.2.Participating LGs with revised PDSECs Unit of Measure: Percentage Indicator Type: Custom Baseline Actual (Current) End Target Action Value 0.00 100.00 100.00 Revised The World Bank Mali Reconstruction and Economic Recovery (P144442) Date 20-Nov-2013 28-Jun-2017 3.3.Grievance redress mechanism are functional at the commune level Unit of Measure: Percentage Indicator Type: Custom Baseline Actual (Current) End Target Action Value 0.00 72.00 55.00 Revised Date 20-Nov-2013 28-Jun-2017 01-Dec-2018 OPS_DETAILEDCHANGES_COMPONENTS_TABLE COMPONENTS Current Current Proposed Proposed Cost Action Component Name Component Name Cost (US$M) (US$M) Component 1: Rehabilitation of Component 1: Rehabilitation of local public infrastructure (US$50 50.00 Revised local public infrastructure 44.17 million equivalent) (US$50 million equivalent) Component 2: Support to Component 2: Support to 35.00 Revised 40.20 productive investments productive investments Component 3: Community Component 3: Community engagement and local engagement and local 10.00 No Change 10.00 governance (US$10 million governance (US$10 million equivalent). equivalent). Component 4: Project Component 4: Project management, monitoring and management, monitoring and 5.00 Revised 5.63 evaluation (US$5 million evaluation (US$5 million equivalent) equivalent) Component 5: Contingent Component 5: Contingent 0.00 No Change 0.00 emergency response emergency response TOTAL 100.00 100.00 OPS_DETAILEDCHANGES_REALLOCATION _TABLE REALLOCATION BETWEEN DISBURSEMENT CATEGORIES Financing % Current Allocation Actuals + Committed Proposed Allocation (Type Total) Current Proposed IDA-H9010-001 | Currency: XDR The World Bank Mali Reconstruction and Economic Recovery (P144442) iLap Category Sequence No: 1 Current Expenditure Category: GD,WK,NCS,CS PART 1 32,600,000.00 9,685,569.95 32,600,000.00 100.00 100.00 iLap Category Sequence No: 2 Current Expenditure Category: GD,WK,NCS,CS PART 2 22,820,000.00 9,023,604.42 22,820,000.00 100.00 100.00 iLap Category Sequence No: 3 Current Expenditure Category: GD,CS,TR,OP PART 3 6,520,000.00 4,604,649.36 6,520,000.00 100.00 100.00 iLap Category Sequence No: 4 Current Expenditure Category: GD,NCS,CS,TR,OP PART 4 3,260,000.00 1,864,761.60 3,260,000.00 100.00 100.00 iLap Category Sequence No: 5 Current Expenditure Category: EMERGENCY EXP PART 5 0.00 0.00 0.00 100.00 100.00 Total 65,200,000.00 25,178,585.33 65,200,000.00 OPS_DETAILEDCHANGES_DISBURSEMENT_TABLE DISBURSEMENT ESTIMATES Change in Disbursement Estimates Yes Year Current Proposed 2014 1,000,000.00 150,000.00 2015 14,000,000.00 11,720,000.00 2016 33,500,000.00 9,240,000.00 2017 30,000,000.00 35,550,000.00 2018 18,000,000.00 32,750,000.00 2019 3,500,000.00 10,590,000.00 The World Bank Mali Reconstruction and Economic Recovery (P144442)