The World Bank Sustainable Livelihoods and Adaptation to Climate Change (P132623) REPORT NO.: RES32185 DOCUMENT OF THE WORLD BANK RESTRUCTURING PAPER ON A PROPOSED PROJECT RESTRUCTURING OF SUSTAINABLE LIVELIHOODS AND ADAPTATION TO CLIMATE CHANGE APPROVED ON DECEMBER 9, 2014 TO DEPARTMENT OF ECONOMIC AFFAIRS, MINISTRY OF FINANCE, GOVERNMENT OF INDIA AGRICULTURE SOUTH ASIA Regional Vice President: Ethel Sennhauser Country Director: Junaid Kamal Ahmad Senior Global Practice Director: Juergen Voegele Practice Manager/Manager: Shobha Shetty Task Team Leader: Priti Kumar The World Bank Sustainable Livelihoods and Adaptation to Climate Change (P132623) I. BASIC DATA Product Information Project ID Financing Instrument P132623 Investment Project Financing Original EA Category Current EA Category Partial Assessment (B) Partial Assessment (B) Approval Date Current Closing Date 09-Dec-2014 30-Jun-2018 Organizations Borrower Responsible Agency Department of Economic Affairs, Ministry of Finance, Ministry of Rural Development Government of India Project Development Objective (PDO) Original PDO The Project Development Objective (PDO) is to improve adaptive capacity of the rural poor engaged in farm-based livelihoods to cope with climate variability and change. Summary Status of Financing Net Ln/Cr/Tf Approval Signing Effectiveness Closing Commitment Disbursed Undisbursed TF-18700 13-Feb-2015 13-Feb-2015 13-Feb-2015 30-Jun-2018 8.00 4.75 3.25 Policy Waiver(s) Does this restructuring trigger the need for any policy waiver(s)? No II. SUMMARY OF PROJECT STATUS AND PROPOSED CHANGES The World Bank Sustainable Livelihoods and Adaptation to Climate Change (P132623) The SLACC project is a large-scale proof of concept to enhance climate resilience of smallholder farmers, primarily women, in two climate-stressed states of India. The project is working in 200 villages in 8 blocks in Bihar and Madhya Pradesh states covering about 9000 women farmers. All the farmers have adopted between one to five climate resilient agricultural practices from a set of 25 interventions that were tested and validated. All the project villages have developed community-based climate adaptation plans and about 90 percent of the community institutions (women’s self-help groups and federations) have accessed technical and/or financial support. About 1800 community institutions, lead farmers and community resource persons (CRPs) have received training in climate adaptation-related technologies. Training on technical climate adaptation themes was also provided to about 520 staff of state and district offices. Climate Change Adaptation Units have been established within the National Mission Management Unit (NMMU) of the Deendayal Antyodaya Yojana - National Rural Livelihood Mission (DAY-NRLM) and the State Rural Livelihood Missions (SRLMs) of Bihar and Madhya Pradesh. Resource agencies have been appointed for providing field level technical support in the areas of weather forecasting, agro-advisories and organic farming. Climate change adaptation guidelines are planned to be developed for the DAY-NRLM implementation framework and disseminated to all SRLMs. The project is on track to meet the Development Objective and has achieved satisfactory results in the intended geographies. Disbursements have doubled from 24% in the August 2017 mission to 50% in April 2018 and will become 60% within May 2018. The project has surplus funds remaining that allows for scaling up the engagement to the National Rural Livelihoods Mission (NRLM) of Government of India (GoI). The reason for the availability of resources is that unit costs of interventions were estimated to be much higher during project design than what was seen on the ground. Also, the change in the funding pattern of the grant from 75:25 to 60:40 between the Central Government and State Government under DAY-NRLM and exchange rate savings has further led to an increase in project outlay from USD 10.21 million to USD 12.67 million. The Ministry of Rural Development (MoRD) and State Rural Livelihoods Missions have requested the World Bank via the Department of Economic Affairs to utilize the remaining resources for deepening the engagement in the existing villages and scaling up the interventions in 350 additional villages in the same geographies (same states and same districts) while also transfer the knowledge and lessons to the NRLM. These scaling-up activities are not new interventions that require inclusion in the Grant Agreement (GA), fall within the current project description/activities/scope, and that there are no new impacts on the current environmental and safeguards provisions that would entail updating (or preparing new) safeguard instruments for the Project. The project has two disbursement categories i.e. Category 1: Central Level Expenditure disbursed at 100%; Category 2: State Level Expenditure disbursed at 75%. With effect from 1st April 2015, the Government of India changed the funding pattern for the grants released to states from 75:25 to 60:40. MORD released funds to both the participating states in the ratio of 60:40; but sought disbursement from the Bank as per the originally approved disbursement percentage of 75%. As part of the last restructuring mission in April 2018, it has been agreed with the implementing entity (NMMU in MoRD) that the Bank financing share for SLACC will be retroactively aligned (from 1st April 2015 onwards) with this policy decision of the Government of India and hence the financing share of the World Bank is proposed to be reduced from the current 75 % to 60% retroactively. This was not covered in the DEA restructuring request to the Bank but this adjustment was discussed and agreed during the restructuring mission held in April 2018 and the same has been documented in the Aide Memoire for the April 2018 mission. III. DETAILED CHANGES The World Bank Sustainable Livelihoods and Adaptation to Climate Change (P132623) LOAN CLOSING DATE(S) Original Revised Proposed Proposed Deadline Ln/Cr/Tf Status Closing Closing(s) Closing for Withdrawal Applications TF-18700 Effective 30-Jun-2018 31-Dec-2019 30-Apr-2020 DEFERRED DRAWDOWN OPTION (DDO) Change in DDO Status Yes Current DDO Status Proposed DDO Status No Yes REALLOCATION BETWEEN DISBURSEMENT CATEGORIES Current Current Actuals + Proposed Disbursement % Ln/Cr/TF Expenditure Allocation Committed Allocation (Type Total) Category Current Proposed TF-18700- Gds,NCS,CS,Trng 001 ,Op Cst at 1,500,000.00 216,432.29 1,000,000.00 100.00 100.00 Currency: central USD Gds,NCS,CS,CCC grt,Trng,OC 6,500,000.00 4,532,374.26 7,000,000.00 75.00 60.00 State Total 8,000,000.00 4,748,806.55 8,000,000.00