The World Bank
   Horticulture Development Project (P133703)




                                                                             REPORT NO.: RES29436

                                    DOCUMENT OF THE WORLD BANK




                                         RESTRUCTURING PAPER
                                                  ON A
                                  PROPOSED PROJECT RESTRUCTURING

                                                      OF

                                HORTICULTURE DEVELOPMENT PROJECT
                                      APPROVED ON JUNE 12, 2014
                                                      TO

                                        REPUBLIC OF UZBEKISTAN


AGRICULTURE

EUROPE AND CENTRAL ASIA




                          Regional Vice President:     Cyril E Muller
                                 Country Director:     Mariam J. Sherman
                   Senior Global Practice Director:    Juergen Voegele
                      Practice Manager/Manager:        Julian A. Lampietti
                               Task Team Leader:       Dilshod Khidirov
           The World Bank
           Horticulture Development Project (P133703)



I. BASIC DATA

Product Information

Project ID                                                     Financing Instrument
P133703                                                        Investment Project Financing

Original EA Category                                           Current EA Category
Partial Assessment (B)                                         Partial Assessment (B)

Approval Date                                                  Current Closing Date
12-Jun-2014                                                    30-Jun-2021




Organizations

Borrower                                                       Responsible Agency
Republic of Uzbekistan                                         Rural Restructuring Agency



Project Development Objective (PDO)
Original PDO
The project development objective is to enhance the productivity and profitability of horticulture sector in the project
area.
Summary Status of Financing


                                                                                        Net
Ln/Cr/Tf                  Approval        Signing Effectiveness          Closing Commitment Disbursed Undisbursed

IBRD-83930             12-Jun-2014   08-Apr-2015    05-Oct-2015      30-Jun-2021        150.00      132.06          17.94


Policy Waiver(s)

Does this restructuring trigger the need for any policy waiver(s)?
No


II. SUMMARY OF PROJECT STATUS AND PROPOSED CHANGES
        The World Bank
        Horticulture Development Project (P133703)



 Proposed project changes. This restructuring entails reallocation of funds, and no PDO, indicator and component
 content changes or other significant changes are envisaged.

 Project status. The project development objective and project implementation progress arerated Moderately
 Satisfactory. The Project was approved by the Board on June 12, 2014, the Loan Agreement was signed on April 8,
 2015, and became effective on October 5, 2015. The Project has experienced a slow start and initial implementation
 delays due to Borrower’s internal approval process. The implementation speeded up considerably during the last two
 years and nearly 90 percent has disbursed to date mainly due to the high demand for the sub-loans from the project
 beneficiaries for investments in fruit processing and packaging, cold storage, greenhouses, and intensive orchards
 under Component 2. The Implementation of Component 1 “Agricultural Support Services” currently rated MU, is
 lagging behind while the EU grant financing this component is being processed and expected to be effective in October
 2017.

 Responding to the high demand and successful implementation of credit lines the Borrower in its letter, dated July 28,
 2017, has requested the Bank to reallocate funds in the amount $8.867 million including $4.126 mln from the
 Unallocated and $4.741 mln from the "Incremental Operating Costs“ categories to the category “Investment, Capital
 Expenditures and Sub Project Leasing”. Operating costs in amount of $4.741m are unutilized. The regional offices of
 RRA have been restructured and integrated eliminating duplicating functions and synchronizing implementation of
 donor-funded agricultural projects. Relocation of $4.471m will not affect project implementation. The RRA is adjusting
 the Project Implementation Manual accordingly.




III. DETAILED CHANGES




REALLOCATION BETWEEN DISBURSEMENT CATEGORIES

                Current
                                              Current            Actuals +           Proposed        Disbursement %
Ln/Cr/TF        Expenditure
                                           Allocation          Committed             Allocation        (Type Total)
                Category
                                                                                                    Current Proposed


 IBRD-
                GOODS                   1,207,600.00             62,485.89         1,207,600.00      100.00     100.00
 83930-001
 Currency:      WORKS & CS
 USD            INCDG AUDIT &           1,476,200.00              8,618.87         1,476,200.00      100.00     100.00
                TRNG
                INV. &
                WORK.CAP.
                                      135,599,200.00       126,214,306.17       144,466,200.00       100.00     100.00
                SUBLOANS &
                LEASE
                INCREMENTAL             7,216,000.00           398,536.76          2,475,000.00      100.00     100.00
The World Bank
Horticulture Development Project (P133703)



       OPERATING
       COSTS

       UNALLOCATED             4,126,000.00             0.00             0.00

       Total                149,625,000.00    126,683,947.69   149,625,000.00