The World Bank Integrated Habitat and Housing Project (P159929) REPORT NO.: RES36755 RESTRUCTURING PAPER ON A PROPOSED PROJECT RESTRUCTURING OF INTEGRATED HABITAT AND HOUSING PROJECT APPROVED ON FEBRUARY 27, 2017 TO REPUBLIC OF ARGENTINA SOCIAL, URBAN, RURAL AND RESILIENCE GLOBAL PRACTICE LATIN AMERICA AND CARIBBEAN Regional Vice President: Axel van Trotsenburg Country Director: Jesko S. Hentschel Senior Global Practice Director: Ede Jorge Ijjasz-Vasquez Practice Manager/Manager: Ming Zhang Task Team Leader: Catherine Lynch, Beatriz Eraso Puig The World Bank Integrated Habitat and Housing Project (P159929) ABBREVIATIONS AND ACRONYMS MIOPV Ministry of Interior, Public Works and Housing (Ministerio del Interior, Obras Públicas y Vivienda) The World Bank Integrated Habitat and Housing Project (P159929) 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 P159929 Investment Project Financing Original EA Category Current EA Category Partial Assessment (B) Partial Assessment (B) Approval Date Current Closing Date 27-Feb-2017 31-Aug-2022 Organizations Borrower Responsible Agency Republic of Argentina Ministry of Interior, Public Works and Housing Project Development Objective (PDO) Original PDO The proposed Project's development objectives are to: (i) increase access to formal housing for eligible households; and (ii) improve living conditions for households in selected precarious urban settlements. OPS_TABLE_PDO_CURRENTPDO Summary Status of Financing Net Ln/Cr/Tf Approval Signing Effectiveness Closing Commitment Disbursed Undisbursed IBRD-87120 27-Feb-2017 17-Aug-2017 14-Dec-2017 31-Aug-2022 200.00 33.94 166.06 Policy Waiver(s) Does this restructuring trigger the need for any policy waiver(s)? No The World Bank Integrated Habitat and Housing Project (P159929) Note to Task Teams: End of system generated content, document is editable from here. I. PROJECT STATUS AND RATIONALE FOR RESTRUCTURING A. Project Description 1. The Project has four components: (1) Increased access to formal housing (US$ 45 million, 100 percent IBRD financing); (2) Integrated habitat improvement (US$ 145 million, 100 percent IBRD financing); (3) Institutional Strengthening (US$11 million, of which US$9 million IBRD financing and US$2 million Borrower contribution); and (4) Project Management (US$4.5 million, of which US$0.5 IBRD financing and US$4 Borrower contribution) B. Project Status 2. The Loan Agreement was signed on August 17, 2017 and loan was declared effective on December 14, 2017. The US$200 million loan has disbursed US$33.94 million (16.97 percent) through implementation of Component 1 and Component 3. Component 2 is making progress in the preparation of the first group of 11 sub-projects which have been deemed eligible (with an estimated cost of US$37.3 million), and a total pipeline of 22 sub-projects has been presented. 3. The first Project restructuring, effective December 4, 2018, reflected changes to the implementation arrangements and allowed for subsidiary loans to participating provinces and municipalities. Two subsidiary loans have been signed to date (Province of Mendoza and Province of Corrientes). C. Project Performance 4. Progress towards achieving the Project Development Objective is rated Satisfactory and overall Implementation Performance is rated Moderately Satisfactory. The Project has a satisfactory track record on safeguards implementation and is in compliance with the loan covenants. There are no overdue audit reports nor any audit considered not acceptable to the Bank. D. Rationale for Restructuring 5. Given the delays in implementing subprojects under Component 2, the Ministry of Interior, Public Works and Housing (Ministerio del Interior, Obras Públicas y Vivienda, MIOPV) proposes to reallocate US$45 million from Component 2 to Component 1 to further support the Solucion Casa Propria housing subsidy program under Component 1. The Project Development Objective will remain unchanged and continues to be achievable. II. DESCRIPTION OF PROPOSED CHANGES A. Reallocation of Funds 6. US$45 million will be reallocated from Component 2: Integrated habitat improvement to Component 1: Increased access to formal housing and will result in a reallocation of US$ 45 million from Category 2 (a) “Goods, works, non- The World Bank Integrated Habitat and Housing Project (P159929) consulting services, consulting services, Training, Operating Costs under Subprojects, including works under Part 2 (e)(ii) of the Project” to Category 1 “Upfront Subsidies under Part 1 of the Project”. These funds will support the Solucion Casa Propria housing subsidy program which has benefitted over 31,500 households. Disbursement will be made against subsidies already provided under the program that are in accordance with the conditions of the loan agreement. B. Revisions to the Results Framework 7. The results framework will be revised to reflect the change in financing allocated to each component. Specifically, the number of beneficiaries under Component 1 will increase from 3,000 to 13,000, of which 2,600 will be female headed households. This increase in the number of households not only follows the change in funds allocated for Component 1, but also the devaluation of the Argentine Peso which allows the MIOPV to request reimbursement for a larger number of subsidies granted. At the same time, the number of beneficiary households under Component 2 will reduce from 18,000 to 13,000 reflecting the smaller number of subprojects that will be supported under the Project. The reduction in the number of beneficiary households will impact other indicators related to improved service provision. Total direct project beneficiaries will increase from 69,300 people to 75,000 people. 8. The results indicators for Component 3: Institutional Strengthening will be revised to reflect updated plans for technical studies and capacity building. In addition, the indicator related to the design of a management system for Solucion Casa Propria within the Secretariat of Housing will be removed because it was financed and completed outside the Project. 9. All results indicators will be revised to update the entities responsible for data collection in accordance with the change to implementation arrangements made as part of the first restructuring. I. SUMMARY OF CHANGES Changed Not Changed Results Framework ✔ Reallocation between Disbursement Categories ✔ Implementing Agency ✔ DDO Status ✔ Project's Development Objectives ✔ Components and Cost ✔ Loan Closing Date(s) ✔ Cancellations Proposed ✔ Disbursements Arrangements ✔ Disbursement Estimates ✔ Overall Risk Rating ✔ The World Bank Integrated Habitat and Housing Project (P159929) 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_REALLOCATION _TABLE REALLOCATION BETWEEN DISBURSEMENT CATEGORIES Financing % Current Allocation Actuals + Committed Proposed Allocation (Type Total) Current Proposed IBRD-87120-001 | Currency: USD iLap Category Sequence No: 1 Current Expenditure Category: Upfront Subsidies under Part 1 45,000,000.00 32,370,114.09 90,000,000.00 100.00 100.00 iLap Category Sequence No: 2A Current Expenditure Category: GO, CW, N-CS, CS, TRG & OP - Subp 145,000,000.00 0.00 100,000,000.00 100.00 100.00 iLap Category Sequence No: 2B Current Expenditure Category: Land Aquisition& Compensation -P.2 0.00 0.00 0.00 100.00 100.00 The World Bank Integrated Habitat and Housing Project (P159929) iLap Category Sequence No: 3 Current Expenditure Category: GO, NON-CS, CS, TRG & OP-P.3&4 9,500,000.00 462,181.64 9,500,000.00 100.00 100.00 Total 199,500,000.00 32,832,295.73 199,500,000.00 . The World Bank Integrated Habitat and Housing Project (P159929) . Results framework COUNTRY: Argentina Integrated Habitat and Housing Project Project Development Objectives(s) The proposed Project's development objectives are to: (i) increase access to formal housing for eligible households; and (ii) improve living conditions for households in selected precarious urban settlements. Project Development Objective Indicators by Objectives/ Outcomes RESULT_FRAME_TBL_PDO Indicator Name DLI Baseline Intermediate Targets End Target 1 2 3 4 5 Number of eligible households with access to formal housing. Number of eligible households with access to 0.00 0.00 2,300.00 13,000.00 13,000.00 13,000.00 13,000.00 formal housing. (Number) Action: This indicator has been Revised Number of housing subsidies allocated to 0.00 0.00 700.00 2,600.00 2,600.00 2,600.00 2,600.00 female headed households (Number) Action: This indicator has been Revised Number of households with improved living conditions in precarious urban settlements. Number of households with improved living conditions 0.00 0.00 0.00 2,600.00 8,450.00 13,000.00 13,000.00 in precarious urban settlements. (Number) The World Bank Integrated Habitat and Housing Project (P159929) RESULT_FRAME_TBL_PDO Indicator Name DLI Baseline Intermediate Targets End Target 1 2 3 4 5 Action: This indicator has been Revised Number of female headed households with improved living 0.00 0.00 0.00 884.00 2,873.00 4,420.00 4,420.00 conditions in precarious urban settlements. (Number) Action: This indicator has been Revised Direct project beneficiaries Direct project beneficiaries 0.00 0.00 6,000.00 40,580.00 59,930.00 75,000.00 75,000.00 (Number) Action: This indicator has been Revised Female beneficiaries 0.00 51.00 51.00 51.00 51.00 51.00 51.00 (Percentage) Action: This indicator has been Revised PDO Table SPACE Intermediate Results Indicators by Components RESULT_FRAME_TBL_IO Indicator Name DLI Baseline Intermediate Targets End Target 1 2 3 4 5 Increased Access to Formal Housing The World Bank Integrated Habitat and Housing Project (P159929) RESULT_FRAME_TBL_IO Indicator Name DLI Baseline Intermediate Targets End Target 1 2 3 4 5 Percentage of subsidies allocated for beneficiaries 0.00 50.00 50.00 50.00 50.00 50.00 50.00 between 2 and 3 minimum wages (Percentage) Action: This indicator has been Revised Percentage of subsidies allocated for household 0.00 1.00 1.00 1.00 1.00 1.00 1.00 with members with disabilities (Percentage) Action: This indicator has been Revised Integrated Habitat Improvement Number of people in urban areas provided with access 0.00 0.00 0.00 0.00 10,750.00 21,500.00 21,500.00 to Improved Water Sources under the project (Number) Action: This indicator has been Revised Number of completed Human Development 0.00 0.00 0.00 0.00 11.00 22.00 22.00 activities (Number) Action: This indicator has been Revised Land Parcels benefitted under the project with 0.00 0.00 0.00 0.00 650.00 1,300.00 1,300.00 increased tenure security (Number) The World Bank Integrated Habitat and Housing Project (P159929) RESULT_FRAME_TBL_IO Indicator Name DLI Baseline Intermediate Targets End Target 1 2 3 4 5 Action: This indicator has been Revised Percentage of Land Parcels with increased tenure security where rights of 0.00 65.00 65.00 65.00 65.00 65.00 65.00 women have been recognized when applicable (Percentage) Action: This indicator has been Revised Creation of a list of identified and prioritized No No No Yes Yes Yes Yes sub-projects in the urban agglomerations. (Yes/No) Action: This indicator has been Revised People provided with access to ‘improved sanitation 0.00 0.00 0.00 0.00 10,750.00 21,500.00 21,500.00 facilities” under the proj. (CRI, Number) Action: This indicator has been Revised People provided with access to “improved 0.00 0.00 0.00 0.00 10,750.00 21,500.00 21,500.00 sanitation facilities” - urban (Number) The World Bank Integrated Habitat and Housing Project (P159929) RESULT_FRAME_TBL_IO Indicator Name DLI Baseline Intermediate Targets End Target 1 2 3 4 5 Action: This indicator has been Revised Kilometers of roads constructed or rehabilitated 0.00 0.00 0.00 0.00 7.00 14.00 14.00 (Number) Action: This indicator has been Revised Institutional Strengthening Number of technical studies aimed at improving the design of housing and 0.00 0.00 6.00 14.00 17.00 19.00 19.00 habitat policies in the country (Number) Action: This indicator has been Revised Number of capacity building trainings implemented 0.00 0.00 1.00 13.00 16.00 20.00 20.00 (Number) Action: This indicator has been Revised Design and implementation of the Management System No Yes Yes Yes Yes Yes Yes for the SSDUV's housing programs (Yes/No) Action: This indicator has been Marked for Deletion The World Bank Integrated Habitat and Housing Project (P159929) IO Table SPACE The World Bank Integrated Habitat and Housing Project (P159929) Note to Task Teams: End of system generated content, document is editable from here. 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