The World Bank Great Lakes Regional Integrated Agriculture Development Project (P161781) REPORT NO.: RES32870 DOCUMENT OF THE WORLD BANK RESTRUCTURING PAPER ON A PROPOSED PROJECT RESTRUCTURING OF GREAT LAKES REGIONAL INTEGRATED AGRICULTURE DEVELOPMENT PROJECT APPROVED ON MAY 5, 2017 TO REPUBLIC OF BURUNDI AGRICULTURE AFRICA Regional Vice President: Hafez M. H. Ghanem Country Director: Bella Bird Senior Global Practice Director: Juergen Voegele Practice Manager/Manager: Dina Umali-Deininger Task Team Leader: Nora Kaoues, Amadou Alassane The World Bank Great Lakes Regional Integrated Agriculture Development Project (P161781) I. BASIC DATA Product Information Project ID Financing Instrument P161781 Investment Project Financing Original EA Category Current EA Category Partial Assessment (B) Partial Assessment (B) Approval Date Current Closing Date 05-May-2017 30-Nov-2022 Organizations Borrower Responsible Agency Republic of Burundi Ministry of Agriculture and Livestock Project Development Objective (PDO) Original PDO The Project Development Objectives are: (i) to increase agricultural productivity and commercialization in Targeted Areas in the territory of the Recipient and improve agricultural regional integration; and (ii) to provide immediate and effective response in the event of an eligible crisis or emergency. Summary Status of Financing Net Ln/Cr/Tf Approval Signing Effectiveness Closing Commitment Disbursed Undisbursed IDA-D1810 05-May-2017 14-Jun-2017 15-Nov-2017 30-Nov-2022 75.00 12.60 65.59 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 Great Lakes Regional Integrated Agriculture Development Project (P161781) 1. The US$55.4 million IDA Grant for the Great Lakes Regional Integrated Agriculture Development Project was approved on May 5, 2017 and became effective on November 15, 2017. It is scheduled to close on November 30, 2022. The project has four components: Component 1: Smallholder Productivity and Production Enhancement; Component 2: Support to Investments in Agro-processing and Market Linkages; Component 3: Institution Integration, Knowledge Acquisition, and Dissemination of Information at the Regional Level; and Component 4: Project Management and Institutional Support. To-date, US$12.6 million has been disbursed. 2. On March 3, 2018, World Bank management approved a request from the Government of Burundi to activate the Project’s contingency emergency response component (CERC), and allocate US$2,800,000 (SDR 1,931,008 equivalent) to combat a nationwide outbreak of the Peste des Petits Ruminants (PPR) or small ruminant pest, a highly contagious disease which kills goats and sheep. 3. Following activation of the CERC, the Government of Burundi, in coordination with the World Bank, Food and Agriculture Organization (FAO) and International Fund for Agricultural Development (IFAD) launched a massive nationwide vaccination campaign to stem the spread of the PPR disease and protect the livestock. The first round of vaccinations ended on May 30, 2018 and successfully treated over 3 million goats and sheep. A post vaccination sero- monitoring campaign to assess animal immunity levels was completed at the end of August 2018. Analysis of the results is ongoing and will inform implementation of the second vaccination campaign expected to launch by mid- September. The results will also inform three key government decision areas: (i) anticipated launch of rehabilitation measures for families who lost livestock; (ii) lifting of the ban on animal movement and trade within and outside the country; and (iii) preparation of longer term interventions to support Veterinary Services and prevent similar epidemics from re-occurring. The project has recruited an international expert and the Centre de Coopération Internationale en Recherche Agronomique pour le Développement (CIRAD) to provide technical support and ensure that the decisions made by the Government will be scientifically based. 4. In keeping with the CERC procedures, project restructuring is required after activation of a CERC. The proposed restructuring has the following two changes: (i) Change in component costs: To make available the requested US$2,800,000 (SDR 1,931,008 equivalent) to implement the CERC, the cost for Component 1: Smallholder Productivity and Production Enhancement was reduced from US$38.62 million to US$35.82 million. The cost for Component 4: Project Management and Institutional Support was adjusted from US$7 million to US$9.80 million. Specifically, these funds have been reallocated to subcomponent 4.3 Contingency Emergency Response. (ii) Reallocation of funds between expenditure categories: The revised component costs require a reallocation of funds between expenditure categories as set out in schedule 2, section IV of the Project Financing Agreement (FA). SDR 1,931,008 (USD$2,800,000 equivalent) has been reallocated from category (1) Goods, works, non-consultant services, consulting services, Training and Operating Costs for the Project to Category (3) Emergency Expenditures under Part 4.3 of the Project. In addition, under category 4 (Project Preparation Advance), only SDR 359,620 of the funds were used for project preparation. The balance of SDR 440,379 has therefore been reallocated to category 1. Schedule 2, Section IV, Withdrawal of the Proceeds of the Financing Agreement has been revised accordingly. The World Bank Great Lakes Regional Integrated Agriculture Development Project (P161781) III. DETAILED CHANGES REALLOCATION BETWEEN DISBURSEMENT CATEGORIES Current Current Actuals + Proposed Disbursement % Ln/Cr/TF Expenditure Allocation Committed Allocation (Type Total) Category Current Proposed IDA-D1810- GD,WK,NCS,CS 44,600,000.00 531,618.61 43,109,371.00 100.00 100 001 and OC Currency: MATCHING XDR 10,000,000.00 0.00 10,000,000.00 100.00 100 GRANTS EMERGENCY EXPENDITURES 0.00 727,091.08 1,931,008.00 100.00 100 PART 4.3 PPF 800,000.00 359,620.58 359,621.00 REFINANCING Total 55,400,000.00 1,618,330.27 55,400,000.00