The World Bank Development Response to Displacement Impacts Project (DRDIP) in the Horn of Africa (P161067) REPORT NO.: RES55730 DOCUMENT OF THE WORLD BANK RESTRUCTURING PAPER ON A PROPOSED PROJECT RESTRUCTURING OF DEVELOPMENT RESPONSE TO DISPLACEMENT IMPACTS PROJECT (DRDIP) IN THE HORN OF AFRICA APPROVED ON APRIL 26, 2017 TO THE REPUBLIC OF KENYA SOCIAL SUSTAINABILITY AND INCLUSION EASTERN AND SOUTHERN AFRICA Regional Vice President: Victoria Kwakwa Country Director: Boutheina Guermazi Regional Director: Ayat Soliman Practice Manager/Manager: Helene Monika Carlsson Rex Task Team Leader(s): Matthew Stephens, Annette Akinyi Omolo, Samuel Lule Demsash The World Bank Development Response to Displacement Impacts Project (DRDIP) in the Horn of Africa (P161067) I. BASIC DATA Product Information Project ID Financing Instrument P161067 Investment Project Financing Original EA Category Current EA Category Partial Assessment (B) Partial Assessment (B) Approval Date Current Closing Date 26-Apr-2017 31-Dec-2023 Organizations Borrower Responsible Agency Intergovernmental Authority on Development The Republic of Kenya (IGAD),State Department for the Development of the Arid and Semi-arid Lands (ASALs)/Ministry of East Africa Project Development Objective (PDO) Original PDO Project Development Objective (from Project Appraisal Document) The Project Development Objective is to improve access to basic social services, expand economic opportunities, and enhance environmental management for communities hosting refugees in the target areas in the Recipient's territory. Summary Status of Financing (US$, Millions) Net Ln/Cr/Tf Approval Signing Effectiveness Closing Commitment Disbursed Undisbursed IDA-60210 26-Apr-2017 29-May-2017 28-Jun-2017 31-Dec-2023 100.00 81.90 20.17 IDA-D1840 26-Apr-2017 23-May-2017 20-Jun-2017 30-Apr-2023 3.00 2.86 .29 TF-A7762 06-Nov-2018 30-Jan-2019 30-Jan-2019 30-Jun-2023 11.58 8.18 3.40 The World Bank Development Response to Displacement Impacts Project (DRDIP) in the Horn of Africa (P161067) Policy Waiver(s) Does this restructuring trigger the need for any policy waiver(s)? No II. SUMMARY OF PROJECT STATUS AND PROPOSED CHANGES Background and Purpose of Restructuring Paper This project paper seeks approval for a no-cost extension to the closing date for the US$3 million grant to the Intergovernmental Authority on Development (IGAD) (IDA D-1840) under component five of the Development Response to Displacement Impacts Project (DRDIP) in the Horn of Africa (P161067). The grant was signed on May 23, 2017, with an original closing date of April 29, 2022. Following three previous restructurings, the current closing date is April 30, 2023. This restructuring paper would extend the closing date to December 31, 2023, aligned with the current closing date of the project (P161067). The purpose of the grant is to provide technical assistance to the Government of Somalia on development responses to forced displacement. The grant complements a US$5 million grant to IGAD under P152822 (DRDIP in Djibouti, Ethiopia and Uganda), which helped to establish the Regional Secretariat on Forced Displacement and Mixed Migration (RS) within IGAD. The RS supports regional coordination, policy formation and knowledge exchange between the DRDIP countries. Project Status In the most recent Implementation Support Mission for the IGAD grant of November 2022, progress towards achievement of the project development objective was rated satisfactory and implementation progress was rated moderately satisfactory. Disbursement as of April 14, 2023 is 91 percent, with an undisbursed balance of US$288,670. Key achievements under the grant so far include: • commissioned a Capacity and Institutional Assessment in Areas of Return and Integration for Somalia, which informed a detailed implementation action plan, learning plan and procurement plan to help achieve four interrelated outcomes: (i) strengthen existing coordination mechanisms at federal and regional level; (ii) policy development and legal frameworks to promote durable solutions; (iii) strengthening the information system for durable solutions to forced displacement; and (iv) enhanced monitoring, evaluation and learning system. • developed a social cohesion policy; • formulated National Commission for Refugees and IDPs (NCRI) Strategic Plan (2021-2024); • established a durable solutions database (digital platform/dashboard for information management) including data on IDPs; • upgraded and expanded the refugee-returnees registration system to include IDPs; • mapped existing socio-economic services in areas of return and reintegration (Baidoa, Kismayo, and Mogadishu); and • Provided needs-based specific technical assistance to the Federal Government of Somalia (FGS). The World Bank Development Response to Displacement Impacts Project (DRDIP) in the Horn of Africa (P161067) Proposed changes In accordance with the letter of request from IGAD dated March 29, 2023, the proposed restructuring would extend the closing date for the grant from April 30, 2023 to December 31, 2023. This would align with the closing date of the project (P161067) overall. The extension would allow IGAD to complete the remaining activities including: (i) validation workshop for the Somalia Social Cohesion Policy and Strategy; (ii) continued support for coordination efforts between resilience and durable solutions actors in areas of return; (iii) conduct a DRDIP Regional Project Steering Committee (RPSC) Meeting; (iv) develop a learning framework for the Durable Solutions Strategy; and (v) undertake the end of project evaluation and completion reporting. There are no outstanding audits for this grant. III. DETAILED CHANGES LOAN CLOSING DATE(S) Original Revised Proposed Proposed Deadline Ln/Cr/Tf Status Closing Closing(s) Closing for Withdrawal Applications 30-Apr-2022, 30-Apr- IDA-60210 Effective 29-Apr-2022 2023, 31-Dec-2023 30-Apr-2022, 31-Dec- IDA-D1840 Effective 29-Apr-2022 31-Dec-2023 30-Apr-2024 2022, 30-Apr-2023 30-Jun-2021, 30-Apr- 2022, 31-May-2022, TF-A7762 Effective 30-Jun-2020 30-Apr-2023, 30-Jun- 2023