The World Bank IRRIGATION SYSTEM ENHANCEMENT PROJECT (P127759) REPORT NO.: RES33437 DOCUMENT OF THE WORLD BANK RESTRUCTURING PAPER ON A PROPOSED PROJECT RESTRUCTURING OF IRRIGATION SYSTEM ENHANCEMENT PROJECT APPROVED ON MAY 22, 2013 TO MINISTRY OF FINANCE WATER EUROPE AND CENTRAL ASIA Regional Vice President: Cyril E Muller Country Director: Mercy Miyang Tembon Senior Global Practice Director: Guang Zhe Chen Practice Manager/Manager: David Michaud Task Team Leader: Wilfried Hundertmark, Arusyak Alaverdyan The World Bank IRRIGATION SYSTEM ENHANCEMENT PROJECT (P127759) I. BASIC DATA Product Information Project ID Financing Instrument P127759 Investment Project Financing Original EA Category Current EA Category Partial Assessment (B) Partial Assessment (B) Approval Date Current Closing Date 22-May-2013 30-Jun-2019 Organizations Borrower Responsible Agency State Committee of the Water Economy,State Ministry of Finance Committee of the Water Economy,Water Sector Projects Implementation Unit State Agency Project Development Objective (PDO) Original PDO The PDO is (i) to reduce the amount of energy used and to improve the irrigation conveyance efficiency in targeted irrigation schemes; and (ii) to improve the availability and reliability of important sector data and information for decision makers and other stakeholders. Summary Status of Financing Net Ln/Cr/Tf Approval Signing Effectiveness Closing Commitment Disbursed Undisbursed IBRD-87860 14-Nov-2017 20-Nov-2017 18-May-2018 30-Jun-2019 2.00 .01 2.00 IBRD-82670 22-May-2013 29-May-2013 15-Jul-2013 30-Jun-2018 30.00 30.00 0 The World Bank IRRIGATION SYSTEM ENHANCEMENT PROJECT (P127759) Policy Waiver(s) Does this restructuring trigger the need for any policy waiver(s)? No II. SUMMARY OF PROJECT STATUS AND PROPOSED CHANGES PROJECT STATUS The original loan of US$30.0 million for the Irrigation System Enhancement Project (ISEP) was approved on May 23, 2013 and became effective on July 15, 2013 with the original closing date as June 30, 2017. There was an IP case involved in the project and considering the delays in implementation caused by the case the closing date was extended to June 30, 2018. In 2017 an additional financing (AF) was processed for the project with a new loan of US$2.0 million, which became effective on May 18, 2018, with a closing date of June 30, 2019. In general, good overall implementation progress is observed with a high probability that the Project Development Objective (PDO) will be achieved. Overall implementation progress towards achievement of the PDO as well as implementation progress have been rated Satisfactory. All activities envisaged under the project's components have been completed except for the Geghardalich gravity scheme. In particular, three out of four gravity schemes (Kaghtsrashen, Meghri Lots 1-3, Baghramyan-Norakert) have been completed and operational, rehabilitation of 13 outlet canals was completed, technical audits in water users associations (WUAs) were completed, SCADA compatible water measurement devices were installed at 83 monitoring points on the main canals and at selected diversion points, and finally trainings for WUAs' staff were carried out. The remaining works on the fourth scheme - Geghardalich - were completed by 95 percent. The value of the civil works contract is US$7.36 million of which US$6.97 million were implemented and the remaining US$0.39 million is still to be done. The site is located at the 2800 m elevation above sea level and is not accessible till May. The works were supposed to resume in mid-May 2018, however, because of the adverse weather conditions it was not possible to resume the works as planned. Because of this delay there is a need to extend the original loan for two months to allow completion of the gravity scheme. Upon full completion of this remaining scheme 10 million kwh of energy will be saved annually equivalent to about US$920,000, enabling reliable gravity irrigation on 1,260 ha of lands in Goght, Geghadir, Hatzavan, and Voghjaberd communities Considering the above the State Committee of Water Economy (SCWE) requested to extend the project to allow implementation of the remaining works. The Ministry of Finance will send a formal request after completing the internal procedures preceding that. This would be the second extension of the loan. It is worth mentioning that there was a velvet revolution ion Armenia in April and a new government was formed in mid-May. The former Chairman of SCWE resigned about a month ago and a new Chairman has not been appointed yet. Compliance with environment and social safeguards is satisfactory. The Financial Management (FM) arrangements at the PIU, including planning and budgeting, accounting, financial reporting, funds flow, internal control, external audits, and staffing are satisfactory and continue to be acceptable to the Bank. There are neither overdue audits nor Interim Financial Report (IFR) under the Project currently being implemented by the PIU. The World Bank IRRIGATION SYSTEM ENHANCEMENT PROJECT (P127759) PROPOSED CHANGE The proposed project restructuring does not involve changes to the project’s development objectives, scope or categories of expenditures. The proposed change include changing the closing date of the original loan #8267 to August 31, 2018. III. DETAILED CHANGES LOAN CLOSING DATE(S) Original Revised Proposed Proposed Deadline Ln/Cr/Tf Status Closing Closing(s) Closing for Withdrawal Applications IBRD-82670 Effective 30-Jun-2017 30-Jun-2018 31-Aug-2018 31-Dec-2018 IBRD-87860 Effective 30-Jun-2019