The World Bank Dominican Republic Hurricane Fiona Emergency Response Project (P180163) REPORT NO.: RES56202 RESTRUCTURING PAPER ON A PROPOSED PROJECT RESTRUCTURING OF DOMINICAN REPUBLIC HURRICANE FIONA EMERGENCY RESPONSE PROJECT APPROVED ON JANUARY 23, 2023 TO DOMINICAN REPUBLIC URBAN, RESILIENCE AND LAND GLOBAL PRACTICE LATIN AMERICA AND CARIBBEAN REGION Regional Vice President: Carlos Felipe Jaramillo Country Director: Michel Kerf Regional Director: Anna Wellenstein Practice Manager/Manager: David N. Sislen Task Team Leader(s): Anna-Maria Bogdanova; Victoria Alexeeva The World Bank Dominican Republic Hurricane Fiona Emergency Response Project (P180163) ABBREVIATIONS AND ACRONYMS ESCP Environmental and Social Commitment Plan ESMF Environmental and Social Management Framework GoDR Government of the Dominican Republic IBRD International Bank for Reconstruction and Development IPF Investment project financing ISR Implementation status report LMP Labor Management Plan PDO Project Development Objective POM Project Operational Manual The World Bank Dominican Republic Hurricane Fiona Emergency Response Project (P180163) BASIC DATA Product Information Project ID Financing Instrument P180163 Investment Project Financing Environmental and Social Risk Classification (ESRC) Substantial Approval Date Current Closing Date 23-Jan-2023 24-Jan-2028 Organizations Borrower Responsible Agency Dominican Republic Project Development Objective (PDO) Original PDO The objectives of the Project are to support the Dominican Republic's emergency response and recovery needs and to strengthen its institutional capacity to manage risks posed by natural hazards and the effects of climate change OPS_TABLE_PDO_CURRENTPDO Summary Status of Financing (US$, Millions) Net Ln/Cr/Tf Approval Signing Effectiveness Closing Commitment Disbursed Undisbursed IBRD-94730 23-Jan-2023 24-Jan-2028 200.00 0 200.00 Policy Waiver(s) Does this restructuring trigger the need for any policy waiver(s)? No The World Bank Dominican Republic Hurricane Fiona Emergency Response Project (P180163) I. PROJECT STATUS AND RATIONALE FOR RESTRUCTURING 1. This Restructuring Paper seeks the approval of the Country Director of a Level II restructuring of the Loan Agreement draft (IBRD Loan No. 9473-DO) for the Dominican Republic Hurricane Fiona Emergency Response Project (P180163). The proposed changes include (i) modification of the name of the project; and (ii) modification of the definition of the Prioritized Public and Community Infrastructure in the Loan Agreement draft. The proposed modifications respond to the Borrower’s request submitted to the World Bank through a letter dated May 5, 2023. A. PROJECT BACKGROUND AND STATUS 2. The Dominican Republic Hurricane Fiona Emergency Response Project (the Project), to be financed by the IBRD Loan of US$200 million, was approved by the World Bank’s Board of Executive Directors on January 23, 2023. The project was prepared under paragraph 12 of Section III of the IPF operational policy (“Projects in Situations of Urgent Need of Assistance or Capacity Constraints”). The Loan Agreement is pending signature and, therefore, is yet to become effective. The project was prepared in response to the request of the GoDR after Hurricane Fiona (Category 1) hit the Dominican Republic on September 19, 2022, causing massive damages to livelihoods, critical infrastructure, and services in the eastern, southeast, and northeastern provinces of the country. The Project Development Objectives (PDO) are to support the Dominican Republic's emergency response and recovery needs and to strengthen its institutional capacity to manage risks posed by natural hazards and the effects of climate change. 3. The project includes three components: Component 1. Recovery, rehabilitation, and resilient reconstruction (US$100 million) designed to finance [1.1] expenditures incurred in emergency response in the wake of Hurricane Fiona; and [1.2] resilient rehabilitation, reconstruction, or construction of Prioritized Public and Community Infrastructure. Component 2. Support to the Government’s capacity for disaster risk preparedness, response, and recovery (US$89.5 million) designed to enhance resilient and inclusive territorial planning and development; strengthen geospatial information systems for disaster risk assessment and response; and support institutional capacity for damage assessment and disaster preparedness. Component 3. Project Management and Monitoring and Evaluation (US$10 million). The first ISR was filed and approved on April 29, 2023, with all Satisfactory ratings. 4. The project will be implemented by the Ministry of Economy, Planning and Development (MEPyD) and the Ministry of Presidency (MINPRE). Both Ministries have assigned interim focal points for the key roles, such as project coordinator, FM, procurement, and E&S specialists. Both MINPRE and MEPYD have been advancing technical preparation of key activities, such as the development of the prioritization criteria for the Prioritized Public and Community Infrastructure, prioritization of municipalities and instruments for territorial planning, and production of the base cartography. The Borrower is currently drafting the Project Operations Manual, which is a condition of effectiveness under the Loan Agreement draft. 5. E&S performance is satisfactory to date. The client has started the preparation of the ESMF and LMP as described in the project's ESCP. The ESMF, LMP, and finalized version of the SEP will be consulted and disclosed within 120 days as of the Effective Date. B. RATIONALE FOR RESTRUCTURING 6. Through letter MH-2023-013300, dated May 5th, 2023 the Ministry of Finance submitted a formal request to the World Bank requesting to change the name of the project and expand the definition and eligibility criteria of the Prioritized Public and Community Infrastructure under Subcomponent 1.2. The Borrower requested to remove the reference to Hurricane Fiona from the name of the project to better align it with the project’s overarching resilience objectives (which include supporting the immediate response to Hurricane Fiona) as well as medium-term priorities linked to disaster risk preparedness, response, and recovery. In line with the above, the Borrower also requested to iv The World Bank Dominican Republic Hurricane Fiona Emergency Response Project (P180163) expand the (i) definition of “Prioritized Public and Community Infrastructure”, as defined under the Loan Agreement draft; and (ii) eligibility criteria for said infrastructure under the POM. . Therefore, Prioritized Public and Community Infrastructure was revised to include public and community infrastructure damaged by Hurricane Fiona, as well as infrastructure vulnerable to natural hazards that are located in the project areas. These proposed changes are fully aligned with the Project’s PDO. II. DESCRIPTION OF PROPOSED CHANGES 7. Change of the Project name. It is proposed to change the current name of the project from “Dominican Republic Hurricane Fiona Emergency Response Project” to “Dominican Republic Emergency Response and Resilience Project”. Changing the name of the project would not require any modifications to the PDO. 8. Expand the definition of Prioritized Public and Community Infrastructure under the Appendix of the Loan Agreement. The current definition reads as follows: "Prioritized Public and Community Infrastructure” means the public and community infrastructure (including, inter alia, roads and community buildings) under Part 1.2 of the Project damaged by or needed for the effects of the Fiona Hurricane, selected in accordance with the eligibility criteria and prioritization criteria set forth in the Operational Manual. The following revision is proposed: “Prioritized Public and Community Infrastructure” means public and community infrastructure (including, inter alia, roads and community buildings) under Part 1.2 of the Project, including but without limitation infrastructure damaged by the Fiona Hurricane, selected in accordance with the eligibility and prioritization criteria set forth in the Operational Manual.” This will constitute a revision of the negotiated and approved Loan Agreement draft. All other provisions of the Loan Agreement draft will remain unchanged. 9. The proposed restructuring will not imply changes to the PDO, environment and social analysis or instruments, technical analysis, economic analysis, or implementation and fiduciary arrangements. There are no changes to the component’s geographic scope or amount. The specific eligibility and prioritization criteria will be specified in the POM that is subject to prior review and ‘no-objection’ by the World Bank as a condition of effectiveness under the Loan Agreement draft. The Disbursement and Financial Information Letter will be updated to reflect the new project name. III. SUMMARY OF CHANGES Changed Not Changed Other Change(s) ✔ Implementing Agency ✔ DDO Status ✔ Project's Development Objectives ✔ Results Framework ✔ Components and Cost ✔ Loan Closing Date(s) ✔ v The World Bank Dominican Republic Hurricane Fiona Emergency Response Project (P180163) Cancellations Proposed ✔ Reallocation between Disbursement Categories ✔ Disbursements Arrangements ✔ Disbursement Estimates ✔ Overall Risk Rating ✔ Legal Covenants ✔ Institutional Arrangements ✔ Financial Management ✔ Procurement ✔ Implementation Schedule ✔ Economic and Financial Analysis ✔ Technical Analysis ✔ Social Analysis ✔ Environmental Analysis ✔ IV. DETAILED CHANGE(S) . vi