The World Bank Accelerating Solar Water Pumping via Innovative Financing (P161757) REPORT NO.: RES34601 RESTRUCTURING PAPER ON A PROPOSED PROJECT RESTRUCTURING OF ACCELERATING SOLAR WATER PUMPING VIA INNOVATIVE FINANCING APPROVED ON SEPTEMBER 7, 2017 TO THE UNITED REPUBLIC OF TANZANIA WATER GLOBAL PRACTICE AFRICA REGION Regional Vice President: Hafez M. H. Ghanem Country Director: Bella Bird Regional Directors: Ede Jorge Ijjasz-Vasquez and Simeon K. Ehui Practice Manager/Manager: Catherine Signe Tovey Task Team Leader: Kristoffer Welsien, Zaruhi Tokhmakhyan The World Bank Accelerating Solar Water Pumping via Innovative Financing (P161757) ABBREVIATIONS AND ACRONYMS BoA Bank of Africa CD Country Director COWSO Community Owned Water Supply Organization GPOBA Global Partnership on Output-Based Aid OPCS Operations Policy and Country Services PDO Project Development Objective POM Project Operations Manual PVP Photovoltaic Pumping TIB Tanzania Investment Bank Limited The World Bank Accelerating Solar Water Pumping via Innovative Financing (P161757) BASIC DATA Product Information Project ID Financing Instrument Investment Project Financing Original EA Category Current EA Category Approval Date Current Closing Date 07-Sep-2017 30-Dec-2020 Organizations Borrower Responsible Agency Ministry of Water and Irrigation,TIB Development Bank United Republic of Tanzania Limited 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 Project Development Objective is to support sustainable access to water in selected rural communities of Tanzania. OPS_TABLE_PDO_CURRENTPDO The World Bank Accelerating Solar Water Pumping via Innovative Financing (P161757) Summary Status of Financing Net TF Approval Signing Effectiveness Closing Commitment Disbursed Undisbursed TF-A5665 07-Mar-2019 07-Mar-2019 09-Sep-2019 30-Dec-2020 3.20 0 3.20 TF-A5703 07-Mar-2019 07-Mar-2019 09-Sep-2019 30-Dec-2020 1.30 0 1.30 Policy Waiver(s) Does this restructuring trigger the need for any policy waiver(s)? No I. PROJECT STATUS AND RATIONALE FOR RESTRUCTURING 1. The project was approved by the World Bank in September 2017 and was followed by a second level restructuring in October of 2018 to reflect the Government’s request to change the implementing partner. Subsequently, the Grant Agreement and the Project Agreement were countersigned on March 7, 2019, and the Subsidiary Grant Agreement was signed on April 5, 2019. With all legal documents having been signed, the project is expected to become effective in August of 2019 as the only pending issue is a minor adjustment to the legal opinion which was submitted by the Government in July of 2019. 2. The implementing partner has requested a change in the wording of Section I.B.4 of the Project Agreement to align it with the Bank of Tanzania’s (The Central Bank) regulations on collateral. Such an amendment of the Project Agreement will require a second level restructuring of the project but will not impact the effectiveness of the project. 3. No changes to the PDO, closing date, project allocations, or institutional and implementation arrangements are required. The design of the project will also remain unchanged. The objectives of the Project remain relevant and achievable. 4. GPRBA donors are looking forward to the results of this innovative project. The Dutch Trust Fund that is the financier of the project has been extended to allow for the implementation of this project. The team looks forward to declaring the project effective to enable smooth implementation. The World Bank Accelerating Solar Water Pumping via Innovative Financing (P161757) II. DESCRIPTION OF PROPOSED CHANGES 1. Rationale for the Proposed Changes: The rationale for the proposed change is to accommodate the Bank of Tanzania’s regulations requiring all Tanzanian banks to secure either 100 percent of the loan amount in cash collateral or 125 percent in non-cash collateral. The current Project Agreement requires Tanzania Investment Bank (TIB) to seek the World Bank’s approval in writing when seizing the collateral. The proposed change will allow TIB to seize a collateral upon consultations with the World Bank following the procedures detailed in the Commitment Paper and the Project Operation Manual. The proposed change of wording allows the Bank of Tanzania to comply with the legal requirements practiced in Tanzania, while the World Bank is consulted in such situations and is made aware of any remedies to be exercised under the project. 2. In response to the Implementing Partner’s request, this restructuring paper seeks to amend the Project Agreement Schedule, Section I.B.4 from the current: “The Project Implementing Entity (TIB) shall ensure that, in the event that it enforces any of its security interests over any PvP system, such PvP system is redeployed for the benefit of another COWSO under the project, or for such other purpose in furtherance of the objective of the project as may be agreed with the World Bank in writings”. To the proposed: “The Project Implementing Entity (TIB) shall ensure that, in the event that it enforces any of its security interests over any PvP system, best efforts are made so that such PvP system is redeployed for the benefit of another COWSO under the project, or for such other purpose in furtherance of the objective of the project, further to consultations with the World Bank”. The Project Operation Manual has been amended accordingly to reflect this change. The World Bank Accelerating Solar Water Pumping via Innovative Financing (P161757) III. SUMMARY OF CHANGES Changed Not Changed Other Change(s) ✔ Implementing Agency ✔ Project's Development Objectives ✔ Results Framework ✔ Components and Cost ✔ Loan Closing Date(s) ✔ Cancellations Proposed ✔ Additional Financing 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 ✔ Implementation Schedule ✔ IV. DETAILED CHANGE(S)