The World Bank Emergency Operation for Development (P155732) REPORT NO.: RES38323 RESTRUCTURING PAPER ON A PROPOSED PROJECT RESTRUCTURING OF EMERGENCY OPERATION FOR DEVELOPMENT APPROVED ON JULY 7, 2015 TO MINISTRY OF FINANCE URBAN, RESILIENCE AND LAND MIDDLE EAST AND NORTH AFRICA Regional Vice President: Ferid Belhaj Country Director: Saroj Kumar Jha Regional Director: Ayat Soliman Practice Manager/Manager: Jaafar Sadok Friaa Task Team Leader: Ibrahim Khalil Zaki Dajani, Mohammed Wafaa Al-Ani, Soran Hama Tahir Ali The World Bank Emergency Operation for Development (P155732) ABBREVIATIONS AND ACRONYMS EODP Emergency Operation for Development EODP-AF Emergency Operation for Development – Additional Financing PAD Project Appraisal Document PDO Project Development Objective PMU Project Management Unit The World Bank Emergency Operation for Development (P155732) Note to Task Teams: The following sections are system generated and can only be edited online in the Portal. BASIC DATA Product Information Project ID Financing Instrument P155732 Investment Project Financing Original EA Category Current EA Category Partial Assessment (B) Partial Assessment (B) Approval Date Current Closing Date 07-Jul-2015 31-Dec-2022 Organizations Borrower Responsible Agency Ministry of Health,Ministry of Electricity,Ministry of Construction, Housing, Municipalities and Public Works,Reconstruction Fund for Areas Affected by Terroristic Operations, C/O Dr. Mustafa Hiti,Ministry of Agriculture - C/O Dr. Hamid Ali Hadwan, Director General of Plant Protection Department,Ministry of Education, C/O Mr. Sabah Khalaf Jebur, Director General,Ministry of Ministry of Finance Water Resources,Anbar Governorate,Diyala Governorate, C/O Muthanna Ali Mahdi al-Tamimi, Governor,Nineveh Governorate, C/O Ameen Ibrahim Fanash, Deputy Governor for Planning,Salah Ad-Din Governorate,Roads and Bridges Directorate @ Ministry of Construction, Housing, Municipalities and Public Works,Ministry of Transport Project Development Objective (PDO) Original PDO The Project is to support the Republic of Iraq in the reconstruction of damaged infrastructure and the restoration of public services delivery in Targeted Municipal Areas. OPS_TABLE_PDO_CURRENTPDO The World Bank Emergency Operation for Development (P155732) Summary Status of Financing Net Ln/Cr/Tf Approval Signing Effectiveness Closing Commitment Disbursed Undisbursed IBRD-87930 31-Oct-2017 05-Jul-2018 21-Aug-2018 31-Dec-2022 400.00 9.96 390.04 IBRD-85200 07-Jul-2015 12-Jul-2015 18-Sep-2015 30-Jun-2020 350.00 250.32 99.68 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 The Emergency Operation for Development Project (EODP) was approved on July 7, 2015 for a total of US$ 350 million and became effective on September 18, 2015. In 2017 and after a major milestone in the war on ISIS and the declaration of Mosul liberation, the Government of Iraq requested additional financing of US$ 400 million to expand the project scope to cover additional Iraqi territories liberated from ISIS and to expand the sectors covered by EODP to include agriculture, education, water resources and irrigation, urban services. The additional financing was approved on October 31, 2017 and became effective on August 21, 2018. The original project will close on June 30, 2020 while additional financing will close on December 31, 2022. The purpose of this restructuring paper is to restructure Category 7 of the loan agreement for Additional Financing related to Restoring Agriculture Productivity. This restructuring responds to a request received from the Ministry of Finance dated August 5, 2019 and based on discussions with the Ministry of Agriculture to address changes and needs on the ground by: a) dropping direct-support to farmers (sub-components A) and establishing emergency credit (sub-component C), and b) reallocating resources under subcomponents A and C towards on the rebuilding of infrastructure (sub- component B). This restructuring will also revise the closing date for the original project loan number 8520-IQ from June 30, 2020 to June 30, 2021 so that the original project and the additional financing have the same closing date. This will also allow the project to meet the project objectives for the whole project. Project Status The implementation of EODP is progressing well and as of October 25, 2019 commitment reached US$ 281 million with disbursement of US$ 250 million whereas EODP-AF has had a slow start with commitment reached US$ 9 million and The World Bank Emergency Operation for Development (P155732) disbursement reached US$ 9 million. The delays in implementing EODP-AF is as a result of a) the lengthy approval procedures by the Ministry of Planning for the activities under EODP-AF. This process was introduced by the government in 2018 and applied to all projects regardless of financing sources, whether national budget or the international community. This process does not apply to EODP; b) low institutional capacity in the implementing agencies under EODP- AF, several which are being exposed to World Bank policies, guidelines and procedures for the first time. As a result, substantial effort and time is being exerted to build capacity to enable the staff to implement the agreed activities; and c) the recurrent changes in staff of the Project Management Teams, especially after being trained by the Bank on policies, guidelines and procedures, causing substantial disruptions to the implementation plan. The overall PDO, Implementation Progress and Safeguards ratings are Moderately Satisfactory while the overall risk rating continues to be High. The project is also progressing towards achieving its objectives and there is sustained interest and commitment from the implementing institutions towards the project’s activities. Several sectors are progressing better than others including primarily due to their better capacity including, Electricity, Municipal Services and Roads and Bridges. The Health sector is now progressing with key activities such as supply of ambulances and mobile clinics have been completed and services are being delivered to beneficiaries. In this aspect, engaging UNOPS in the procurement of these goods has been instrumental in reaching the set targets. As many parts of Iraq remain of high security risk status, a Third-Party Monitoring Agency has been retained by the Bank to support the task team who is unable to access project sites to provide the needed support to verify contractual compliance with technical, fiduciary, and safeguards aspects of the project. Findings from the site visits are followed up with the implementing agencies towards quick remedial measures. Other sectors such as the education continue to face challenges especially in registering its activities with Ministry of Planning. Intensive discussions with the key stakeholders are undergoing to overcome this obstacle. Similarly, the Water and Natural Resources are slow in finalizing their activities under this EODP-AF resulting in substantial delays in implementation. Recognizing the substantial destruction that was sustained during the war with ISIS and the need to reconstruct the damaged infrastructure and reinstate essential services, which will require the participation of all government institutions, the decision by the Bank and the central government to engage the subnational governments was an important one. This, however, was met with mixed success primarily due to the varied capacities of staff between the four governorates, Anbar, Diyala, Ninawa and Salah ad-Din. Training and handholding to staff of associated project management units (PMUs) has been key to the achievements thus far, though more can be expected from these PMUs. There are no outstanding audits for this project. II. DESCRIPTION OF PROPOSED CHANGES Background In 2017, the international community expressed its commitment to support the Government-led reconstruction of Mosul and other localities that had been liberated from ISIS. This included support in the in liberated areas where the widespread unavailability of traditional agricultural inputs and service supplies, combined with inflated farm gate prices for agricultural inputs represented significant constraints to productivity growth, employment, and enterprise development. The World Bank Emergency Operation for Development (P155732) The key focus of the Restoring Agriculture Productivity component (US$ 30 million) is to revive agricultural and related activities in the conflict-affected regions across the country. Project activities will utilize a combination of emergency and short-term measures to improve the capacity of the Ministry of Agriculture to support farmers with critical agricultural services, technologies and investments. The original sub-components are as follows: a. Sub-component A: Emergency implementation of local area development plans will finance procurement and distribution of 5,000 farm household starter packages consisting of different combinations of farm tools, livestock, materials and service vouchers. (US$ 5 million); b. Sub-component B: Restoration of critical agriculture support services will finance restoration and modernization of key agriculture knowledge and service centers, including warehouses, veterinary centers and certified seed multiplication and processing facilities to revive the agriculture service and agribusiness industry. (US$ 20 million); c. Sub-component C: Emergency agriculture credit facilitation will include measures to improve accessibility of farmers and farmer groups to technical knowledge, services and technologies. This sub-component will support technical assistance and capacity building for institutional strengthening of the local input supply industry and provide working capital to local agribusinesses. (US$ 3 million); and d. Sub-component D: Project Management will include the costs of consultants, limited purchases of office equipment and furniture, and recurrent costs of the Project Management Team. (US$ 2 million). Proposed Reallocation of loan proceeds for Category 7 Through a letter dated August 5, 2019, the Government of Iraq requested the Bank to cancel two activities under Part 7 of the loan agreement related to Restoring Agriculture Productivity. Specifically, cancel activity “a” of Part 7 related to emergency implementation of local area development plans and activity “c” of Part 7 related to emergency agriculture credit facilitation and reallocate. The financial allocations of these two activities shall be the reallocated to activities under “b” of Part 7 associated with restoration of critical agriculture support infrastructure and services to support the repair, reconstruction and rehabilitation of essential agriculture services centers. The following table presents the propose reallocation of loan proceeds under Category 7: Component 7: Restoring Agriculture Productivity (as per PAD) Sub-Component Proposed Change Original amount Revised amount Sub-Component “a” Cancel and reallocate proceeds to Sub- $5 million $0.00 Category “b” Sub-Component “b” Revised amount for Sub-Category “b” $20 million $28.0 million Sub-Component “c” Cancel and reallocate proceeds to Sub- $3 million $0.00 million Category “b” Sub-Component “d” No change $2.0 million $2.0 million The Results Indicators as stipulated in the PAD shall also be amended to reflect the changes mentioned above. Therefore, both indicators “Number of households receiving emergency agriculture credit through voucher programs” and “Number of households accessing one or more key services agriculture support services” will be dropped. Similarly, and with the reallocation of funds towards sub-component c, the “Irrigated Areas Improved” indicator target shall be increased from 72,000 hectares to 100,000 hectares. The World Bank Emergency Operation for Development (P155732) Results indicators As a result of the above reallocation, the results indicators for this component will be amended as follows: Original Indicator Revised Indicator Original End Revised End Target Target PDO Indicator Number of farmer household with access Land with renewed access to irrigated 33,700 50,000 to irrigated fields (number) land Intermediate indicators 1. Increase in area under agriculture Areas Improved 30,000 100,000 production by beneficiary households (Ha) 2. Number of households accessing one or The number of households involved in 60,000 60,000 more key services agriculture support agriculture who are involved in services (number) accessing one or more agricultural support services Percentage of female headed No change 5 5 households (%) 3. Number of households receiving This will be dropped as a result of the 5,000 - emergency agriculture credit through restructuring voucher programs (number) Note to Task Teams: The following sections are system generated and can only be edited online in the Portal. III. SUMMARY OF CHANGES Changed Not Changed Results Framework ✔ Loan Closing Date(s) ✔ Reallocation between Disbursement Categories ✔ Implementing Agency ✔ DDO Status ✔ Project's Development Objectives ✔ Components and Cost ✔ Cancellations Proposed ✔ Disbursements Arrangements ✔ The World Bank Emergency Operation for Development (P155732) Disbursement Estimates ✔ Overall Risk Rating ✔ Safeguard Policies Triggered ✔ EA category ✔ Legal Covenants ✔ Institutional Arrangements ✔ Financial Management ✔ Procurement ✔ Implementation Schedule ✔ Other Change(s) ✔ Economic and Financial Analysis ✔ Technical Analysis ✔ Social Analysis ✔ Environmental Analysis ✔ IV. DETAILED CHANGE(S) OPS_DETAILEDCHANGES_LOANCLOSING_TABLE LOAN CLOSING DATE(S) Original Revised Proposed Proposed Deadline Ln/Cr/Tf Status Closing Closing(s) Closing for Withdrawal Applications IBRD-85200 Effective 30-Jun-2020 30-Jun-2021 30-Oct-2021 IBRD-87930 Effective 31-Dec-2022 31-Dec-2022 30-Apr-2023 OPS_DETAILEDCHANGES_REALLOCATION _TABLE REALLOCATION BETWEEN DISBURSEMENT CATEGORIES Financing % Current Allocation Actuals + Committed Proposed Allocation (Type Total) Current Proposed IBRD-87930-001 | Currency: USD iLap Category Sequence No: 1 Current Expenditure Category: G;W;NCS;CS;IOC;TRG;WSHP Part1 The World Bank Emergency Operation for Development (P155732) 50,000,000.00 0.00 50,000,000.00 100.00 100.00 iLap Category Sequence No: 10 Current Expenditure Category: G;W;NCS;CS;IOC;TRG;WS P10 a1/c1/d1 20,000,000.00 3,086,035.26 20,000,000.00 100.00 100.00 iLap Category Sequence No: 11 Current Expenditure Category: G;W;NCS;CS;IC;TRG;WS P10 a2/c2/d2 10,000,000.00 319,949.00 10,000,000.00 100.00 100.00 iLap Category Sequence No: 12 Current Expenditure Category: G;W;NCS;CS;IOC;TRG;WS P10 a3/c3/d3 20,000,000.00 0.00 20,000,000.00 100.00 100.00 iLap Category Sequence No: 13 Current Expenditure Category: G;W;NCS;CS;IOC;TRG;WS P10 a4/c4/d4 10,000,000.00 0.00 10,000,000.00 100.00 100.00 iLap Category Sequence No: 14 Current Expenditure Category: UNALLOCATED 0.00 0.00 0.00 100.00 100.00 iLap Category Sequence No: 2 Current Expenditure Category: G;W;NCS;CS;IOC;TRG;WSHP Part2 47,500,000.00 0.00 47,500,000.00 100.00 100.00 iLap Category Sequence No: 3 Current Expenditure Category: G;W;NCS;CS;IOC;TRG;WSHP Part 3a 111,000,000.00 1,749,648.60 111,000,000.00 100.00 100.00 iLap Category Sequence No: 4 Current Expenditure Category: G;W;NCS;CS;IOC;TRG;WSHP Part 3b 5,000,000.00 0.00 5,000,000.00 100.00 100.00 iLap Category Sequence No: 5 Current Expenditure Category: G;NCS;CS;IOC;TRG;WSHP Part 4 24,000,000.00 0.00 24,000,000.00 100.00 100.00 iLap Category Sequence No: 6 Current Expenditure Category: G;NCS;CS;IOC;TRG;WSHP Part 5&6 The World Bank Emergency Operation for Development (P155732) 2,500,000.00 0.00 2,500,000.00 100.00 100.00 iLap Category Sequence No: 7 Current Expenditure Category: G;W;NCS;CS;IOC;TRG;WSHP Part 7 32,000,000.00 0.00 32,000,000.00 100.00 100.00 iLap Category Sequence No: 8 Current Expenditure Category: G;W;NCS;CS;IOC;TRG;WSHP Part 8 32,000,000.00 0.00 32,000,000.00 100.00 100.00 iLap Category Sequence No: 9 Current Expenditure Category: G;W;NCS;CS;IOC;TRG;WSHP Part 9 35,000,000.00 0.00 35,000,000.00 100.00 100.00 Total 399,000,000.00 5,155,632.86 399,000,000.00 . The World Bank Emergency Operation for Development (P155732) . Results framework COUNTRY: Iraq Emergency Operation for Development Project Development Objectives(s) The Project is to support the Republic of Iraq in the reconstruction of damaged infrastructure and the restoration of public services delivery in Targeted Municipal Areas. Project Development Objective Indicators by Objectives/ Outcomes RESULT_FRAME_TBL_PDO Indicator Name DLI Baseline End Target Reconstruction of damaged infrastructure and restoration of public services delivery Direct project beneficiaries (Number) 0.00 3,000,000.00 Female beneficiaries (Percentage) 0.00 50.00 Action: This indicator has been Revised Number of youth with access to services under the project 0.00 1,800,000.00 (Number) Action: This indicator has been Revised Number of IDPs with access to services under the project 0.00 1,000,000.00 (Number) Action: This indicator has been Marked for Deletion Sub-projects with a satisfactory outcome (Percentage) 0.00 80.00 Number of people in urban areas provided with access to 0.00 550,000.00 Improved Water Sources under the project (Number) The World Bank Emergency Operation for Development (P155732) RESULT_FRAME_TBL_PDO Indicator Name DLI Baseline End Target Number of people in urban areas provided with access to 0.00 630,000.00 Improved Sanitation under the project (Number) Number of people in urban areas provided with access to regular 0.00 1,730,000.00 solid waste collection under the project (Number) Number of people in urban areas provided with access to 0.00 1,200,000.00 electricity under the project by household connections (Number) Number of people in urban areas provided with access to all- season roads within a 500 meter range under the project 0.00 3,000,000.00 (Number) Number of people receiving primary health services through 0.00 175,000.00 mobile primary health units supported by the project (Number) Number of farmers with access to irrigated land (Number) 0.00 50,000.00 Action: This indicator has been Revised Students benefiting from direct interventions to enhance 0.00 65,000.00 learning (Number) Action: This indicator has been Revised PDO Table SPACE Intermediate Results Indicators by Components RESULT_FRAME_TBL_IO Indicator Name DLI Baseline End Target Restoring Electricity Infrastructure and Connectivity Transmission lines reconstructed or rehabilitated under the 0.00 1,100.00 project (Kilometers) The World Bank Emergency Operation for Development (P155732) RESULT_FRAME_TBL_IO Indicator Name DLI Baseline End Target Energy Supplied through solar PV systems (Megawatt 0.00 1.50 hour(MWh)) Action: This indicator has been Marked for Deletion Energy Supplied by distributed generation (Megawatt 0.00 6.00 hour(MWh)) Action: This indicator has been Marked for Deletion Restoring Municipal Waste, Water and Sanitation Services Piped household water reconnections that are benefiting from 0.00 328,681.00 rehabilitation works undertaken by the project (Percentage) Restoring Tranport Infrastructure and Services Number of Public Transport Terminals repaired (Number) 0.00 6.00 Action: This indicator has been Revised Roads rehabilitated, Non-rural (Kilometers) 0.00 600.00 Action: This indicator has been Revised Bridges rehabilitated (Number) 0.00 19.00 Action: This indicator has been Revised Railway track rehabilitated (Kilometers) 0.00 281.00 Action: This indicator is New Restoring Agriculture Productivity Areas improved (Hectare(Ha)) 0.00 100,000.00 Action: This indicator has been Revised The number of households involved in agriculture who have 0.00 60,000.00 accessing one or more agricultural support services (Number) The World Bank Emergency Operation for Development (P155732) RESULT_FRAME_TBL_IO Indicator Name DLI Baseline End Target Action: This indicator has been Revised Percentage of Female headed households (Percentage) 0.00 5.00 Action: This indicator has been Revised Number of households receiving emergency agriculture credit 0.00 5,000.00 through voucher programs (Number) Action: This indicator has been Marked for Deletion Restoring Education Services Teachers recruited or trained (Number) 0.00 5,000.00 Percentage of Female Beneficiaries (Percentage) 0.00 10.00 Emergency Repair of Water Control, Infrastructure and Irrigation Schemes Irrigated Areas Improved (Hectare(Ha)) 0.00 80,000.00 Project Management, Sensitization, Communications and Monitoring and Education Beneficiaries that feel project investments reflected their needs 0.00 90.00 (percentage) (Percentage) Grievances registered related to delivery of project benefits 0.00 100.00 addressed (%) (Percentage) Grievances related to delivery of project benefits that are 0.00 90.00 addressed-(number) (Number) Restoring Health Services (Action: This Component is New) Health facilities constructed and/renovated and equipped 0.00 11.00 (Number) Rationale: Action: This indicator is New This indicator measures the cumulative number of health facilities constructed and/or renovated and equipped. The World Bank Emergency Operation for Development (P155732) RESULT_FRAME_TBL_IO Indicator Name DLI Baseline End Target Clarification: Based on the project restructuring in 2017, the project started financing the renovation and supply of medical equipment to partially damaged hospitals and clinics in place of supply of mobile hospitals. The end target is 11 health facilities to be constructed and/or renovated and equipped. This includes 8 primary health centers and 3 hospitals. Some of these health facilities will require minor renovation, while others will require demolishing and reconstruction. Ambulances purchased and equipped (Number) 39.00 81.00 Rationale: This indicator measures the number of ambulances procured by the MoH and equipped with communication devices, distributed to the governorates of Salah Al-Dine, Diyala, Ninawa, Al Anbar, and Kirkuk. Clarification: The original end target was 39 ambulances to be distributed in Salah Al-Dine and Diyala governorates. The Action: This indicator is New revised end target is 81 ambulances and 81 communication devices. The additional ambulances and communication devices will be procured using the savings from the procurement of the first batch of ambulances (39). The additional ambulances will be distributed in Ninawa, Al Anbar and Kirkuk governorates Restoring Health Services (Action: This Component is New) Health facilities constructed and/renovated and equipped 0.00 11.00 (Number) Rationale: This indicator measures the cumulative number of health facilities constructed and/or renovated and equipped. Clarification: Based on the project restructuring in 2017, the project started financing the renovation and supply of medical equipment to partially damaged hospitals and clinics in place of supply of mobile hospitals. Action: This indicator is New The end target is 11 health facilities to be constructed and/or renovated and equipped. This includes 8 primary health centers and 3 hospitals. Some of these health facilities will require minor renovation, while others will require demolishing and reconstruction The World Bank Emergency Operation for Development (P155732) IO Table SPACE . The World Bank Emergency Operation for Development (P155732) Note to Task Teams: End of system generated content, document is editable from here. Please delete this note when finalizing the document