The World Bank Nairobi Metropolitan Services Improvement Project (P107314) REPORT NO.: RES40994 DOCUMENT OF THE WORLD BANK RESTRUCTURING PAPER ON A PROPOSED PROJECT RESTRUCTURING OF NAIROBI METROPOLITAN SERVICES IMPROVEMENT PROJECT APPROVED ON MAY 10, 2012 TO GOVERNMENT OF KENYA URBAN, RESILIENCE AND LAND AFRICA Regional Vice President: Hafez M. H. Ghanem Country Director: Carlos Felipe Jaramillo Regional Director: Simeon Kacou Ehui Practice Manager/Manager: Meskerem Brhane Task Team Leader(s): Gyongshim An, Sheila W. Kamunyori The World Bank Nairobi Metropolitan Services Improvement Project (P107314) I. BASIC DATA Product Information Project ID Financing Instrument P107314 Investment Project Financing Original EA Category Current EA Category Approval Date Current Closing Date 10-May-2012 31-Mar-2020 Organizations Borrower Responsible Agency Ministry of Transport, Infrastructure, Housing, and Urban Government of Kenya Development Project Development Objective (PDO) Original PDO The Project Development Objective (PDO) is to strengthen urban services and infrastructure in the Nairobi metropolitan region. Thiswill be achieved by (i) investing in local infrastructure (roads, markets, street lighting, bicycle and pedestrian pathways, drainage, and the like), (ii) investing in large-scale metropolitan infrastructure including supporting improvements in integrated solid waste management, sewerage collection and disposal, and transport, and (iii) strengthening the current and future entities responsible for service delivery, including the central ministry, current local authorities and future county governments, utilities and otherservice providers, and possible future metropolitan authorities responsible for planning, transport, and other services. Summary Status of Financing Net Ln/Cr/Tf Approval Signing Effectiveness Closing Commitment Disbursed Undisbursed IDA-51020 10-May-2012 21-Jun-2012 17-Dec-2012 31-Mar-2020 300.00 248.84 21.30 The World Bank Nairobi Metropolitan Services Improvement Project (P107314) Policy Waiver(s) Does this restructuring trigger the need for any policy waiver(s)? No I. SUMMARY OF PROJECT STATUS AND PROPOSED CHANGES The restructuring of the Nairobi Metropolitan Services Improvement Project (NaMSIP) is required to extend the project closing date by six months to September 30, 2020. The proposed restructuring is the third level 2 restructuring for the project (the first level 2 restructuring was approved in April 2017 and the second level 2 restructuring was approved in February 2019). The cumulative extension period including this proposal would be 39 months. The project is rated moderately satisfactory both for overall implementation progress and for progress towards the PDO. Overall project implementation has improved over the past three years after making an important turnaround following the first restructuring. While having made significant progress, the project continued to experience implementation challenges relating to the unfavorable construction environment due to unusual heavy rainfalls, the delays and inadequate release of IDA and counterpart funds and consequent delays in construction, consultancies and resettlement action plan implementation, and administrative hurdles in uploading budgeted IDA funds into the government accounting and financial management system following the reorganization of the implementing ministry. To respond to these challenges, the second restructuring was approved with a set of key actions agreed with the government to mitigate the risks for the outstanding activities. The project is at the final closing stage but some remaining activities that were at the tail end have been adversely affected since February 2020 due to the emergence of novel Coronavirus (COVID-19) and associated impacts on construction works and public consultation processes. The proposed restructuring is to enable the implementing agency to complete the remaining activities affected by the unanticipated constraints, thereby enabling the achievement of the intended development objectives. The Government of Kenya requested for the closing date extension in its letter of March 20, 2020. The Task Team confirms that there are no outstanding audits or interim financial reports for the project and with the proposed extension of the closing date the PDO remains achievable and the performance of the Borrower remains satisfactory. II. DETAILED CHANGES LOAN CLOSING DATE(S) Original Revised Proposed Proposed Deadline Ln/Cr/Tf Status Closing Closing(s) Closing for Withdrawal Applications 31-May-2019, 31- IDA-51020 Effective 30-Jun-2017 30-Sep-2020 30-Jan-2021 Mar-2020 The World Bank Nairobi Metropolitan Services Improvement Project (P107314)