REPORT NO.: RES37949 RESTRUCTURING PAPER ON A PROPOSED PROJECT RESTRUCTURING OF MINDANAO TRUST FUND-RECONSTRUCTION AND DEVELOPMENT PROJECT PHASE II APPROVED ON APRIL 4, 2018 TO COMMUNITY AND FAMILY SERVICES INTERNATIONAL SOCIAL, URBAN, RURAL AND RESILIENCE GLOBAL PRACTICE EAST ASIA AND PACIFIC Regional Vice President: Victoria Kwakwa Country Director: Mara K. Warwick Senior Global Practice Director: Benoit Bosquet Practice Manager/Manager: Nina Bhatt Task Team Leader: Maria Loreto Padua ABBREVIATIONS AND ACRONYMS ALS Alternative Learning System ARMM Autonomous Region in Muslim Mindanao BARMM Bangsamoro Autonomous Region in Muslim Mindanao BDA Bangsamoro Development Agency BOL Bangsamoro Organic Law BTA Bangsamoro Transitional Authority CAB Comprehensive Agreement on the Bangsamoro CDD Community-Driven Development CDR Community-Driven Reconstruction CFSI Community and Family Services International CMO Central Management Office (of BDA) CPS Country Partnership Strategy CPST Camp Project Support Team GA Grant Agreement GPH Government of the Philippines IDP Internally Displaced Persons IP Indigenous Peoples ISM Implementation Support Mission JTFCT Joint Tasks Forces on Camps Transformation MILF Moro Islamic LiberationFront MTF Mindanao Trust Fund MTF-RDP Mindanao Trust Fund-Reconstruction and Development Project PO Peoples Organization PPA Program Partnership Agreement The World Bank Mindanao Trust Fund-Reconstruction and Development Project Phase II (P164019) BASIC DATA Product Information Project ID Financing Instrument P164019 Investment Project Financing Original EA Category Current EA Category Partial Assessment (B) Partial Assessment (B) Approval Date Current Closing Date 04-Apr-2018 31-Aug-2019 Organizations Borrower Responsible Agency Community and Family Services International Community Family and Services International 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 proposed project is to improve access of targeted communities in conflict-affected areas in Mindanao to basic socio-economic infrastructure and alternative learning system. OPS_TABLE_PDO_CURRENTPDO The World Bank Mindanao Trust Fund-Reconstruction and Development Project Phase II (P164019) Summary Status of Financing Net TF Approval Signing Effectiveness Closing Commitment Disbursed Undisbursed TF-A7280 10-Apr-2018 10-Apr-2018 10-Apr-2018 31-Aug-2019 2.65 2.65 0 TF-A7281 10-Apr-2018 10-Apr-2018 10-Apr-2018 31-Aug-2019 .55 .55 0 Policy Waiver(s) Does this restructuring trigger the need for any policy waiver(s)? No Note to Task Teams: End of system generated content, document is editable from here. I. PROJECT STATUS AND RATIONALE FOR RESTRUCTURING A. Project Status 1. The Project is on track of achieving its development objective which is to improve access to basic socio- economic infrastructure (SEI) of and deliver alternative learning systems in target conflict-affected communities in Mindanao. All six target camps underwent the social preparation cycle that identified 22 community sub-projects for implementation with support for World Bank. The Alternative Learning System (ALS) activities have been conducted and, based on a comparison of the results of the pre-and post-tests, the average score of the learners have increased by 18 points, indicating the effectiveness of the ALS sessions. 2. As a result of the social preparation, 22 socio-economic infrastructure (SEI) subprojects (SPs) were initiated in 6 camps acknowledged by the Moro Islamic Liberation Front (MILF). In addition, the Project supports the completion of 11 SPs which were started during the first phase. These SPs include potable water systems; road and bridge construction, harvesting facilities; community meeting/activity centers; and solar lighting. As of 15 July 2019, eighteen (18) were completed while the remaining 15 SPs are expected to be completed by 31 August 2019. Once operational, these 33 subprojects would benefit at least 42,321 community members, of whom 52% are female. The total beneficiaries are 53 percent higher than the original target of 27,652 community members. Indigenous peoples are already benefitting from two of the four tribal halls constructed through the project. 3. More importantly, the project has trained 1,239 community volunteers, of which 450 are female (46%), to manage the SP implementation. Capacity building activities for the People’s Organizations (POs) focused on SP prioritization, Organizational Development and Management, Operation and Maintenance; as well as The World Bank Mindanao Trust Fund-Reconstruction and Development Project Phase II (P164019) on Child Protection and Preventing Sexual Exploitation and Abuse Policies. In addition, 101 members of the Camp Joint Task Force on Camp Transformation (JTFCT), Bangsamoro Development Agency and Camp Project Support Team (CPST) have been trained, exceeding the target of 72 persons. Training activities for the BDA, CPST, and JTFCT included: Values Transformation; Sub-Project Proposal Preparation; Environmental and Social Safeguards Framework; Procurement; Monitoring and Evaluation; Operations and Maintenance; and Sub-Project Sustainability. CFSI also worked with the BDA to conduct Strategic Planning in relation to its new expected roles in line with the BARMM transition. In addition, JTFCT had special capacity building activity on Disaster Risk Reduction, Conflict Management, and an experiential learning to model local government units and private corporations. The trained JTFCT, BDA and CPST jointly organize community volunteers and community consultations to identify, validate, implement, monitor, operate, and sustain subprojects. Moreover, they have been working with the communities to identify and prioritize other needs, formulate preliminary subproject proposals, and reach out to potential funding partners including some private companies. 4. Field visits noted consistent appreciation for the project which the communities viewed to be highly responsive. The deliberate involvement of the JTFCT- MILF and the peoples’ organizations (POs) is well received. Significantly, leaders view MTF-RDP/2 as a continuation of their agenda for development and expressed commitment to protect all the benefits from the MTF-RDP/2. The JTFCT-MILF members are appreciative of their role and acknowledged that they learned more about the basics of project management; community consultations; PO organizing; procurement; disaster risk response management (DRRM); among others. However, the JTFCT expressed the need for other capacity building that would prepare them to participate in governance under the Bangasamoro Autonomous Region in Muslim Mindanao (BARMM) 5. Project systems for procurement and financial management (FM) are in place and functioning satisfactorily. There are no outstanding FM reports or qualified audits. Environmental and social safeguards plans have also been satisfactorily complied with. Regular field missions have been undertaken by Members of the Senior Management Team as well as Project Management Unit of CFSI, allowing for timely trouble- shooting and enhanced implementation. B. Rationale for Restructuring 6. This restructuring paper seeks approval for an additional financing of US$1.780 million with closing date on December 31, 2020. The restructuring would also involve concomitant changes in the results framework to reflect additional intermediate indicators and additional target values. The purpose of this additional financing is to scale- up the project activities, details of which are described per component in Section II. Lastly, the restructuring seeks the extension of the closing date of the original grant to December 31, 2020 to allow sufficient time for completion of sub-projects and use of savings of about Php2M which was incurred from imposing penalties on contractors. 7. The purpose of this additional financing and extension of closing date is to ensure continued access to basic services in the MILF camps while the new BARMM is in transition. The additional financing would also serve as an opportunity to consolidate the lessons learned from implementing a community-based strategy in peacebuilding. The BDA has recognized that the strategic and operational lessons learned from implementing RDP/1 and 2 could serve as significant inputs to the BARMM as it defines its government structures, systems, strategies and programs particularly in terms of participatory and inclusive local development. These lessons must be consolidated, documented or manualized and systematically disseminated. The World Bank Mindanao Trust Fund-Reconstruction and Development Project Phase II (P164019) 8. The MILF camps are among the poorest and most disadvantaged areas in the Philippines, characterized by severely limited basic services and facilities. Thus, while the MTF-RDP/2 has supported 33 SPs, there are more basic services that need to be addressed in the 6 target camps not to mention that there are other areas/camps that have requested to be included in the project. The impact evaluation of the national CDD program revealed that it takes 3 to 4 years of community mobilization to create impact in terms of improving access to basic services and enhancing local governance in poor communities. The additional financing would broaden access to other basic services as well as reach more beneficiaries that would have significant changes in the quality of lives in the six camps of the MILF. The implementation of the normalization track of the Comprehensive Agreement on the Bangsamoro is also expected to increase demand for basic services. II. DESCRIPTION OF PROPOSED CHANGES 9. The proposed restructuring involves the following changes: a) Additional financing of US$1.780 million b) Extension of closing date of the original grant from 31 August 2019 to 31 December 2020 c) Changes in the target values of the intermediate indicators in all components to reflect additional activities 10. The additional financing would support the scaling up of the project, details of which are as follows per component: a. Community Development Assistance (US$943,800 -53%): the AF would support additional socio- economic community infrastructure that would improve access to basic services as well as continue provision of ALS sessions to reach at least 900 more community members that would enable them to acquire or improve literacy as well as vocational and technical skills deemed relevant to the evolving situation in the camps. b. Capacity and Institution-Building (US$445,000 -25%): The AF would support more capacity building activities that would enhance the sustainability of the community socio-economic infrastructures and, more importantly, facilitate the integration of the Project key features and strategies in the emerging programs and policies of the BARMM. c. Project Administration, Monitoring and Evaluation (US$391,200-22%): The AF operations would require continued support for project management and oversight as well as serve as an opportunity to consolidate the lessons learned from implementing a community-based strategy in peacebuilding. The BDA has recognized that the strategic and operational lessons learned from implementing RDP/1 and 2 could serve as significant inputs to the BARMM as it defines its government structures, systems, strategies and programs particularly in terms of participatory and inclusive local development. These lessons must be consolidated, documented or manualized and systematically disseminated. 11. The AF operations shall be implemented in accordance with policies and procedures of the original Project (including covenants related to FM, procurement and safeguards) with enhancements based on lessons learned during the previous years of implementation. An enhanced Operations Manual shall be prepared to incorporate lessons learned and shall be submitted to the Bank for acceptance prior to field-level implementation. The World Bank Mindanao Trust Fund-Reconstruction and Development Project Phase II (P164019) I. SUMMARY OF CHANGES Changed Not Changed Results Framework ✔ Loan Closing Date(s) ✔ Additional Financing Proposed ✔ Implementation Schedule ✔ Implementing Agency ✔ Project's Development Objectives ✔ Components and Cost ✔ Cancellations 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 ✔ Other Change(s) ✔ IV. DETAILED CHANGE(S) OPS_DETAILEDCHANGES_RESULTS_TABLE RESULTS FRAMEWORK Project Development Objective Indicators PDO_IND_TABLE Beneficiaries in targeted communities in conflict-affected areas in Mindanao reporting improved access to socio- economic infrastructure in terms of time, distance and cost Unit of Measure: Percentage Indicator Type: Custom The World Bank Mindanao Trust Fund-Reconstruction and Development Project Phase II (P164019) Baseline Actual (Current) End Target Action Value 0.00 50.00 Revised Date 02-Apr-2018 31-Dec-2018 31-Dec-2020 Direct project beneficiaries, of which women Unit of Measure: Percentage Indicator Type: Custom Breakdown Baseline Actual (Current) End Target Action Value 0.00 52.00 50.00 Revised Date 02-Apr-2018 31-Dec-2018 31-Dec-2020 Number of people in targeted communities in conflict-affected areas in Mindanao with improved literacy Unit of Measure: Number Indicator Type: Custom Baseline Actual (Current) End Target Action Value 0.00 1885.00 2513.00 Revised Date 02-Apr-2018 31-Dec-2018 31-Dec-2020 Direct project beneficiaries, of which women Unit of Measure: Number Indicator Type: Custom Breakdown Baseline Actual (Current) End Target Action Value 0.00 917.00 1300.00 Revised Date 02-Apr-2018 31-Dec-2018 31-Dec-2020 Intermediate Indicators IO_IND_TABLE Number of community volunteers that benefited from capacity-building assistance by the Project Unit of Measure: Number Indicator Type: Custom Baseline Actual (Current) End Target Action Value 0.00 1061.00 1151.00 Revised Date 02-Apr-2018 31-Dec-2018 31-Dec-2020 The World Bank Mindanao Trust Fund-Reconstruction and Development Project Phase II (P164019) Community volunteers, of which women Unit of Measure: Number Indicator Type: Custom Breakdown Baseline Actual (Current) End Target Action Value 0.00 424.00 863.00 Revised Date 02-Apr-2018 31-Dec-2018 31-Dec-2020 Number of BDA, camp JTFCT and CPST members provided with capacity-building assistance Unit of Measure: Number Indicator Type: Custom Baseline Actual (Current) End Target Action Value 0.00 101.00 101.00 Revised Date 02-Apr-2018 31-Dec-2018 31-Dec-2020 Number of community-wide meetings that achieved at least 60% participation of households in targeted communities Unit of Measure: Number Indicator Type: Custom Baseline Actual (Current) End Target Action Value 0.00 4.00 34.00 Revised Date 02-Apr-2018 31-Dec-2018 31-Dec-2020 Number of reflection sessions conducted for targeted communities Unit of Measure: Number Indicator Type: Custom Baseline Actual (Current) End Target Action Value 0.00 71.00 90.00 Revised Date 02-Apr-2018 31-Dec-2018 31-Dec-2020 Number of socio-economic infrastructure subprojects completed Unit of Measure: Number Indicator Type: Custom Baseline Actual (Current) End Target Action Value 0.00 33.00 45.00 Revised Date 02-Apr-2018 31-Dec-2018 31-Dec-2020 Capacity building activities for camp JTFCT and JTFCT Coordinators The World Bank Mindanao Trust Fund-Reconstruction and Development Project Phase II (P164019) Unit of Measure: Number Indicator Type: Custom Baseline Actual (Current) End Target Action Value 0.00 0.00 16.00 New Date 15-Jul-2019 31-Dec-2020 Capacity building activities for BDA (CMO and CPST) Unit of Measure: Number Indicator Type: Custom Baseline Actual (Current) End Target Action Value 0.00 16.00 New Date 15-Jul-2019 31-Dec-2020 Capacity building activities for Peoples' Organizations Unit of Measure: Number Indicator Type: Custom Baseline Actual (Current) End Target Action Value 0.00 24.00 New Date 15-Jul-2019 31-Dec-2020 OPS_DETAILEDCHANGES_LOANCLOSING_TABLE LOAN CLOSING DATE(S) Original Revised Proposed Proposed Deadline TF Status Closing Closing(s) Closing for Withdrawal Applications TF-A7280 Effective 28-Feb-2019 31-Aug-2019 31-Dec-2020 30-Apr-2021 TF-A7281 Effective 28-Feb-2019 31-Aug-2019 31-Dec-2020 30-Apr-2021 OPS_DETAILEDCHANGES_ADDITIONAL_FINANCING_TABLE ADDITIONAL FINANCING Source Currency Amount USD Equivalent Philippines - Multi-donor Trust Fund USD 1,780,000.00 1,780,000.00 Program for Mindanao(PHMF) Existing Net Commitment USD Amount 3,200,000.00 Total 4,980,000.00 The World Bank Mindanao Trust Fund-Reconstruction and Development Project Phase II (P164019) Note to Task Teams: End of system generated content, document is editable from here.