The World Bank Sustainable Livelihoods for Displaced and Vulnerable Communities in Eastern Sudan: Phase 2 (P158066) REPORT NO.: RES33905 RESTRUCTURING PAPER ON A PROPOSED PROJECT RESTRUCTURING OF SUSTAINABLE LIVELIHOODS FOR DISPLACED AND VULNERABLE COMMUNITIES IN EASTERN SUDAN: PHASE 2 APPROVED ON JULY 19, 2016 TO REPUBLIC OF SUDAN SOCIAL, URBAN, RURAL AND RESILIENCE GLOBAL PRACTICE AFRICA Regional Vice President: Hafez M. H. Ghanem Country Director: Carolyn Turk Senior Global Practice Director: Maninder S. Gill Practice Manager/Manager: Robin Mearns Task Team Leader: Murat Onur The World Bank Sustainable Livelihoods for Displaced and Vulnerable Communities in Eastern Sudan: Phase 2 (P158066) BASIC DATA Product Information Project ID Financing Instrument P158066 Investment Project Financing Original EA Category Current EA Category Approval Date Current Closing Date 19-Jul-2016 30-Jul-2019 Organizations Borrower Responsible Agency Republic of Sudan Kassala State Ministry of Finance, Economy, and Labor 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 To strengthen the capacity of local stakeholders including state authorities, displaced persons, and vulnerable host communities, to plan and implement improved livelihoods and natural resource management practices. OPS_TABLE_PDO_CURRENTPDO The World Bank Sustainable Livelihoods for Displaced and Vulnerable Communities in Eastern Sudan: Phase 2 (P158066) Summary Status of Financing Net TF Approval Signing Effectiveness Closing Commitment Disbursed Undisbursed TF-A3002 23-Nov-2016 29-Nov-2016 29-Nov-2016 30-Jul-2019 4.29 2.76 1.53 Policy Waiver(s) Does this restructuring trigger the need for any policy waiver(s)? No The World Bank Sustainable Livelihoods for Displaced and Vulnerable Communities in Eastern Sudan: Phase 2 (P158066) I. PROJECT STATUS AND RATIONALE FOR RESTRUCTURING 1. The project was approved in March 2016 and became effective in December 2016. The project is financed by a grant of US$4,435,000 by State and Peacebuilding Fund (SPF). The amount of US$150,000 is Bank-executed on behalf of the recipient, corresponding to TF0A3003, and the amount of US$4,285,000 is recipient executed, corresponding to TF0A3002. This restructuring paper concerns both TF0A3002 and TF0A3003. 2. The disbursement rate is 64 percent as of April 1, 2019. The PDO continues to be relevant, the largest indication of which is that the priorities identified by target communities to date have been met within the design of the project. There is continued strong commitment from the federal and state governments to the project as noted in the recent aide memoires. The project is performing well and progress towards achievement of PDO has been rated satisfactory and overall implementation progress has been rated moderately satisfactory in the last implementation support report (ISR) in May 2019. 3. At the onset of effectiveness, the project faced a 5-month delay between project approval and the signing of the grant agreements. At that stage, the closing date was not adjusted to account for this gap, and the project implementation timeframe was reduced from 36 months to 31 months. The delays were mainly related to procurement of key activities (including the baseline survey), owing to (i) difficulties using the STEP procurement management system, (ii) technical deliberations regarding the terms of references of these services, (iii) a procurement complaint received and its subsequent resolution, and (iv) difficulty finding a qualified firm willing to take on the Natural Resource Management activities. In addition, the project employs an approach whereby the livelihood grants (component four) as an incentive for communities to successfully implement the small works activities (component three). Only after successful completion of the small works would a target community qualify to receive livelihood grants from the project. This approach is meant to incentivize ownership and sustainability. Therefore, by design the project was expected to disburse approximately 40 percent in the last year of implementation. With the small works completed, the project is expected to fully disburse the grant within the given proposed extension period. 4. The restructuring was initiated in January 2019; however, it was delayed due to: (i) delays in receiving a letter from the Government of Sudan and (ii) triggering of OP 7.30 Dealings with De Facto Governments, which halted operational activities; and the need to maintain current institutional arrangements in place for completion of current activities and potential future scale up of operations. The rationale for the proposed restructuring includes: (i) a no-cost extension of the project from July 30, 2019 to January 31, 2020 to allow for additional time to complete project activities, (ii) reallocate funds between components and categories of expenditure due to the currency fluctuations and operational costs stemming from no-cost extension of the Grant No. TF0A3002, (iii) add travel as an eligible expenditure category under Grant No. TF0A3003 (Bank-executed on behalf of recipient), and (iv) revise the results framework to comply with the agreed changes during the midterm review and ISMs previous to that, upon which the project baseline survey was based on. II. DESCRIPTION OF PROPOSED CHANGES 5. The project closing date will be extended to January 31, 2020 to allow for additional time to complete project activities. This covers the extension of the closing dates of both TF0A3002 and TF0A3003. As of April 2019, the project completed small works activities and has commenced livelihood service delivery under component four. The proposed extension will allow for the delivery of livelihoods grants and cover the operational activities associated with regular project management. In addition, the proposed extension will allow delivery of component two activities, which is executed by the Bank on behalf of the recipient. The World Bank Sustainable Livelihoods for Displaced and Vulnerable Communities in Eastern Sudan: Phase 2 (P158066) 6. The proposed reallocation between disbursement categories (Grant No. TF0A3002) covers the reallocation of US$115,575 from Category 2 (Subgrants under part IV of the Project) to Category 1 (Goods, works, non-consulting services, consultants’ services, Operating Costs, and Training and Workshops under the Project). With regards to revised component costs, an amount of US$152,954 will be reallocated from component four to components one and two, in the amounts of US$84,376 and US$68,578 respectively. The proposed reallocation will allow the project to complete the planned activities and ensure the optimal use of project resources. The modified budget has been formulated with oversight from the task team, with due consideration to the financial execution and implementation status of activities. The total grant amount remains unchanged at US$4.435 million. The proposed reallocation and changes are shown in the tables below. Original Amount of the Proposed Reallocation Amount Category Financing Allocated (in US$) (in US$) Category 1: Goods, works, non- 1,935,000 2,050,575 consulting services, consultants’ services, Operating Costs, and Training and Workshops under the Project Category 2 (Subgrants under 2,350,000 2,234,425 part IV of the Project) Total 4,285,000 4,285,000 Component Original Cost New Cost Component 1: Development of Local Structures and Capacities 1,040,000 1,124,376 (Including Project Management) Component 2: Analytics and Technical Assistance 150,000 150,000 Component 3: Community Small Works 355,000 423,578 Component 4: Economic Livelihoods and Benefit Trans-passing 2,890,000 2,737,046 Total 4,435,000 4,435,000 7. Travel was erroneously omitted in the list of eligible expenses in the original grant agreement for TF0A3003, which is Bank-executed on behalf of the recipient. This bank-executed trust fund corresponds to component two of the project and dedicated to analytical work to explore opportunities for livelihoods and sustainable natural resource management interventions to support the project. Travel is a required category as consultants and Bank-staff require international and domestic travel as part of the analytical work. Therefore, travel will be added as an eligible expense under Grant No. TF0A3003 to ensure timely delivery of remaining component two activities. 8. There are no changes proposed to the component structure or activities. The project result framework will be revised to comply with the information collected in the baseline survey as agreed during the previous ISMs. The revisions were agreed with the client and reflected in December 2017 ISM and July 2018 MTR Aide Memoires. Advice was also sought from the Sudan M&E Specialist on revisions to the results framework. Proposed changes will not have an impact in the project’s development objectives, safeguards, or risks. 9. Revisions in the results framework is provided below. The World Bank Sustainable Livelihoods for Displaced and Vulnerable Communities in Eastern Sudan: Phase 2 (P158066) Indicators # Original indicator Revised Revised/New indicator Details PDO indicators 1 Number of trained Revised Targeted staff in local The indicator was revised from self-reporting to government staff reporting agencies with improved assessing skills obtained more thoroughly in light of new skills through understanding and reducing risks of bias. Learning by doing and “learning by doing” or capacity for development trainings was revised to specific skills in line with trainings planning and project thematic areas. Skills were revised to implementation targeting improved understanding and capacity. Unit of IDPs, host and vulnerable measure was revised from number to percentage communities to reflect the reach of the project against the (percentage) actual target. 2 % target IDP and host Revised Beneficiaries in IDP and The indicator was revised to be more specific in communities able to host communities terms of measurement. Emphasis was placed on engage in local level reporting understanding understanding on natural resource management, development planning and on linkages between and sustainable livelihoods to be in line with the project implementation improved natural project development objectives, thematic areas resource management and capacity-building initiatives in communities. practices and sustainable livelihoods (percentage) 3 % NRM and environmental Revised Small works successfully Percentage of indicator positive results was management, small works implemented and removed to make measuring small works easier. It successfully implemented managed by IDPs and was replaced with successful implementation and and recorded positive host communities management in line with sustainability measures result(s) (number) envisioned for the project. Unit of measurement was revised from percentage to number. 4 At least 50% of targeted Deleted This PDO indicator deleted and a revised version of household in the 10 this indicator was added as an intermediate communities have indicator under component four. increased average monthly net income by at least 30% 4n New Beneficiaries with This indicator was added to highlight access to increased access to livelihoods support and vulnerable communities. livelihoods opportunities, percentage of which is female and youth 5 Direct project beneficiaries Revised Target value revised in line with project’s (number), of which female implementation progress and achieving a higher (%) number of beneficiaries than originally planned. Intermediate Results Indicators Component One: Development of local structures and capacity (including project staff) 6 Number of Government Revised Staff in local agencies This indicator was revised to cover a wider group and ESTSI staff received trained in and obtained of potential beneficiaries. training additional skills through capacity-building initiatives 7 Number of community Revised Beneficiaries in IDP and This indicator was adjusted to be more precise members received training host communities who regarding number of beneficiaries in target received training through localities who benefit from project activities, and capacity-building accommodate all relevant interventions taking initiatives delivered by place in communities. the project Number of knowledge Deleted This indicator was deleted. Information will be transfer outputs aimed at captured in revised indicator #7. increasing awareness of NRM and Livelihoods methods Component Two: Analytics and Technical Assistance 8 Number of analytical Revised Analytical outputs and This indicator was reworded. outputs and workshops workshops produced with produced with programmatic relevance programmatic relevance to to project thematic areas project thematic areas Component Three: Community Small Works Support The World Bank Sustainable Livelihoods for Displaced and Vulnerable Communities in Eastern Sudan: Phase 2 (P158066) 9 Number of the Revised Community This indicator was revised to include Operations environmental Environmental Action Manuals for individual small works sub-projects to management action plans Plans and Operations reflect the sustainability measures adopted by the approved Manuals developed for project. small works (number) 10 Number of NRM Small Revised Communities making This indicator was revised since identification and Works identified by required cash and in-kind implementation of small works better serves as a community and contribution to small primary indicator. Community contribution to the implemented works implementation small-scale pilot initiatives were reflected in order (number) to assess community performance and level of support for individual sub-projects. 11 % of female and youth Revised Beneficiaries in IDP and This indicator was revised to include all participated in the host communities who beneficiaries at community levels in order to community small work participated in adequately reflect the impact of the natural community resource management process. environmental action planning and small works implementation (number), percentage of which are females and youth (percentage) Component Four: Economic livelihood and benefit trans-passing 12 % of livelihood assets Revised Livelihoods assets This indicator was revised for language. delivered & handed over delivered to target to target beneficiaries beneficiaries through through tri-partite tripartite procurement procurement system. mechanism (percentage) 13 Number of beneficiaries Revised Beneficiaries who This was adjusted to reflect that the livelihoods received livelihoods skills received livelihoods beneficiaries who received skills training. training in 10 communities grants and skills training (number) 14 Average % of beneficiaries Revised Beneficiaries who This indicator was reworded. per target community that received livelihoods received Livelihood support through Benefits Support from BTPS as Trans-Passing relative to compared to those who those who received in- received the original kind livelihoods grants livelihood in-kind grants directly from the project. 15n New Beneficiaries of livelihoods support reporting a net increase in income (percentage) III. SUMMARY OF CHANGES Changed Not Changed Results Framework ✔ Components and Cost ✔ Loan Closing Date(s) ✔ Reallocation between Disbursement Categories ✔ Implementing Agency ✔ Project's Development Objectives ✔ The World Bank Sustainable Livelihoods for Displaced and Vulnerable Communities in Eastern Sudan: Phase 2 (P158066) Cancellations Proposed ✔ Additional Financing Proposed ✔ Disbursements Arrangements ✔ Disbursement Estimates ✔ Change in Overall Risk Rating ✔ Safeguard Policies Triggered ✔ EA category ✔ Legal Covenants ✔ Institutional Arrangements ✔ Financial Management ✔ Procurement ✔ Implementation Schedule ✔ Other Change(s) ✔ 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 47797.00 41000.00 Revised Date 16-Dec-2016 18-Apr-2019 31-Jan-2020 Female beneficiaries Unit of Measure: Percentage Indicator Type: Custom Supplement Baseline Actual (Current) End Target Action Value 0.00 77.00 50.00 Revised The World Bank Sustainable Livelihoods for Displaced and Vulnerable Communities in Eastern Sudan: Phase 2 (P158066) Targeted staff in local agencies with improved understanding and capacity for development planning and implementation targeting IDPs, host and vulnerable communities Unit of Measure: Percentage Indicator Type: Custom Baseline Actual (Current) End Target Action Value 0.00 82.00 60.00 Revised Date 14-Dec-2016 18-Apr-2019 31-Jan-2020 Beneficiaries in IDP and host communities reporting understanding on linkages between improved natural resource management practices and sustainable livelihoods Unit of Measure: Percentage Indicator Type: Custom Baseline Actual (Current) End Target Action Value 0.00 80.00 50.00 Revised Date 14-Dec-2016 18-Apr-2019 31-Jan-2020 Small works succesfully implemented and managed by IDPs and host communities Unit of Measure: Number Indicator Type: Custom Baseline Actual (Current) End Target Action Value 0.00 31.00 30.00 Revised Date 14-Dec-2016 18-Apr-2019 31-Jan-2020 At least 50% of targeted household in the 10 communities have increased average monthly net income by at least 30% Unit of Measure: Percentage Indicator Type: Custom Baseline Actual (Current) End Target Action Value 0.00 0.00 50.00 Marked for Deletion Date 14-Dec-2016 31-Jul-2018 30-Jul-2019 Beneficiaries with increased access to livelihoods opportunities, percentage of which is female and youth Unit of Measure: Number Indicator Type: Custom Baseline Actual (Current) End Target Action Value 0.00 1680.00 3000.00 New The World Bank Sustainable Livelihoods for Displaced and Vulnerable Communities in Eastern Sudan: Phase 2 (P158066) Date 14-Dec-2016 18-Apr-2019 31-Jan-2020 Female Unit of Measure: Percentage Indicator Type: Custom Supplement Baseline Actual (Current) End Target Action Value 0.00 39.00 50.00 New Intermediate Indicators IO_IND_TABLE Staff in local agencies trained in and obtained additional skills through capacity-building initiatives delivered by the project Unit of Measure: Number Indicator Type: Custom Baseline Actual (Current) End Target Action Value 0.00 262.00 280.00 Revised Date 14-Dec-2016 18-Apr-2019 31-Jan-2020 Beneficiaries in IDP and host communities who recieved training through capacity-building initiatives delivered by the project Unit of Measure: Number Indicator Type: Custom Baseline Actual (Current) End Target Action Value 0.00 17912.00 10000.00 Revised Date 14-Dec-2016 18-Apr-2019 31-Jan-2020 Number of knowledge transfer outputs aimed at increasing awareness of NRM and Livelihoods methods Unit of Measure: Number Indicator Type: Custom Baseline Actual (Current) End Target Action Value 0.00 2.00 10.00 Marked for Deletion Date 14-Dec-2016 31-Jul-2018 30-Jul-2019 Analytical outputs and workshops produced with programmatic relevance to project thematic areas Unit of Measure: Number Indicator Type: Custom The World Bank Sustainable Livelihoods for Displaced and Vulnerable Communities in Eastern Sudan: Phase 2 (P158066) Baseline Actual (Current) End Target Action Value 0.00 3.00 5.00 Revised Date 14-Dec-2016 18-Apr-2019 31-Jan-2020 Community Environmental Action Plans and Operations Manuals developed for small works Unit of Measure: Number Indicator Type: Custom Baseline Actual (Current) End Target Action Value 0.00 47.00 40.00 Revised Date 14-Dec-2016 18-Apr-2019 31-Jan-2019 Communities making required cash and in-kind contribution to small works implementation Unit of Measure: Number Indicator Type: Custom Baseline Actual (Current) End Target Action Value 0.00 10.00 10.00 Revised Date 14-Dec-2016 18-Apr-2019 31-Jan-2020 Beneficiaries in IDP and host communities who participated in community environmental action planning and small works implementation, percentage of which are female and youth Unit of Measure: Number Indicator Type: Custom Baseline Actual (Current) End Target Action Value 0.00 16705.00 10000.00 Revised Date 14-Dec-2016 18-Apr-2019 31-Jan-2020 Female and youth Unit of Measure: Percentage Indicator Type: Custom Supplement Baseline Actual (Current) End Target Action Value 0.00 65.00 50.00 New Livelihoods assets delivered to target beneficiaries through tripartite procurement mechanism Unit of Measure: Percentage Indicator Type: Custom The World Bank Sustainable Livelihoods for Displaced and Vulnerable Communities in Eastern Sudan: Phase 2 (P158066) Baseline Actual (Current) End Target Action Value 0.00 100.00 100.00 Revised Date 14-Dec-2016 18-Apr-2019 31-Jan-2020 Beneficiaries who received livelihoods grants and skills training Unit of Measure: Number Indicator Type: Custom Baseline Actual (Current) End Target Action Value 0.00 935.00 1500.00 Revised Date 14-Dec-2016 18-Apr-2019 31-Jan-2020 Beneficiaries who received livelihoods support through Benefits Trans-Passing relative to those who received in- kind livelihoods grants. Unit of Measure: Percentage Indicator Type: Custom Baseline Actual (Current) End Target Action Value 0.00 0.00 10.00 Revised Date 14-Dec-2016 18-Apr-2019 31-Jan-2020 Beneficiaries of livelihoods support reporting a net increase in income Unit of Measure: Percentage Indicator Type: Custom Baseline Actual (Current) End Target Action Value 0.00 0.00 60.00 New Date 14-Dec-2016 18-Apr-2019 31-Jan-2020 OPS_DETAILEDCHANGES_COMPONENTS_TABLE COMPONENTS Current Current Proposed Proposed Cost Action Component Name Component Name Cost (US$M) (US$M) Development of Local Development of Local Structures Structures and Capacities and Capacities (Including Project 1.04 Revised 1.13 (Including Project Management) Management) The World Bank Sustainable Livelihoods for Displaced and Vulnerable Communities in Eastern Sudan: Phase 2 (P158066) Analytics and Technical Analytics and Technical 0.15 No Change 0.15 Assistance Assistance Community Small Works Community Small Works Support 0.36 Revised 0.42 Support Economic Livelihoods and Economic Livelihoods and 2.89 Revised 2.74 Benefit Trans-passing Benefit Trans-passing TOTAL 4.44 4.44 OPS_DETAILEDCHANGES_LOANCLOSING_TABLE LOAN CLOSING DATE(S) Original Revised Proposed Proposed Deadline TF Status Closing Closing(s) Closing for Withdrawal Applications TF-A3002 Effective 30-Jul-2019 31-Jan-2020 31-May-2020 OPS_DETAILEDCHANGES_REALLOCATION _TABLE REALLOCATION BETWEEN DISBURSEMENT CATEGORIES Financing % Current Allocation Actuals + Committed Proposed Allocation (Type Total) Current Proposed TF-A3002-001 | Currency: USD iLap Category Sequence No: 1 Current Expenditure Category: GDS,WKS,NCS,CS,OC,TRG and WP 1,935,000.00 1,749,262.23 2,050,575.00 100.00 100.00 iLap Category Sequence No: 2 Current Expenditure Category: subgrants under part IV of the proj 2,350,000.00 655,776.58 2,234,425.00 100.00 100.00 Total 4,285,000.00 2,405,038.81 4,285,000.00